Document:

Collaborative Research, Development and License Agreement, dated July 26, 1999

 Exhibit 10.14 
  

			
	 	 	Certain confidential information contained in this document, marked by brackets and asterisks, has been omitted pursuant to a request for confidential treatment pursuant to 17 C.F.R
§§ 200.80(b)(4) and 200.83 and Rule 406 under the Securities Act of 1933, as amended, and has been filed separately with the Securities and Exchange Commission.

  
 COLLABORATIVE
RESEARCH, DEVELOPMENT 
  
 AND LICENSE AGREEMENT

  
 Among 
  
 ACADIA PHARMACEUTICALS INC., 
  
 and 
  
 ALLERGAN, INC. 
  
 and 
  
 ALLERGAN PHARMACEUTICALS (IRELAND) LIMITED, INC. 
  
 and 
  
 ALLERGAN SALES, INC. 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

			
	 1.
	 	 Definitions
	  	1
			
	 2.
	 	 Scope of Collaboration; Development Responsibilities; Exclusivity and Governance
	  	6
	 	 	 2.1
	 	 Scope of Collaboration
	  	6
	 	 	 2.2
	 	 Development Responsibilities
	  	6
	 	 	 2.3
	 	 Exclusivity of the Collaboration
	  	6
	 	 	 2.4
	 	 Research Management Committee
	  	7
	 	 	 2.5
	 	 Research Management Committee Functions And Powers
	  	7
	 	 	 2.6
	 	 Information And Reports
	  	8
	 	 	 2.7
	 	 RMC Dispute Resolution
	  	8
			
	 3.
	 	 Technology Transfer and Identification of Active Compounds
	  	8
	 	 	 3.1
	 	 Transfer of ACADIA Technology
	  	8
	 	 	 3.2
	 	 Transfer of Allergan Technology
	  	8
	 	 	 3.3
	 	 Identification of Active Compounds
	  	9
			
	 4.
	 	 Compound Testing And Selection
	  	9
	 	 	 4.1
	 	 Testing To Identify Active Compounds
	  	9
	 	 	4.2	 	 Selection of Designated Compounds
	  	9
	 	 	 4.3
	 	 Selection of Collaboration Lead Compounds
	  	10
			
	 5.
	 	 Product Development Manufacturing and Supply
	  	12
	 	 	 5.1
	 	 Development of Collaboration Lead Compounds
	  	12
	 	 	 5.2
	 	 Disclosure of Study Data on Collaboration Lead Compounds
	  	12
	 	 	 5.3
	 	 Manufacture and Supply
	  	12
			
	 6.
	 	 License Grants; Failure to Pursue Development in Japan
	  	12
	 	 	 6.1
	 	 License Grants for Collaborative Research
	  	12
	 	 	 6.2
	 	 License Grant for Development and Commercial Purposes
	  	13
	 	 	 6.3
	 	 Sublicensing Rights
	  	13
	 	 	 6.4
	 	 Diligence Obligations
	  	13
	 	 	 6.5
	 	 Failure to Pursue Development in Japan
	  	13
			
	 7.
	 	 Fees and Payments
	  	14
	 	 	 7.1
	 	 Up-front Fee
	  	14
	 	 	 7.2
	 	 Research Funding
	  	14
	 	 	 7.3
	 	 Milestone Payments
	  	15
	 	 	 7.4
	 	 Royalties
	  	16
			
	 8.
	 	 Payments; Records; Audits
	  	18
	 	 	 8.1
	 	 Payment; Reports
	  	18
	 	 	 8.2
	 	 Exchange Rate; Manner and Place of Payment
	  	18
	 	 	 8.3
	 	 Late Payments
	  	18
	 	 	 8.4
	 	 Records and Audits
	  	18

  

 -i- 

							
	 	 	 8.5
	 	 Withholding of Taxes
	  	19
	 	 	 8.6
	 	 Exchange and Royalty Rate Controls
	  	19
			
	 9.
	 	 Intellectual Property
	  	19
	 	 	 9.1
	 	 Ownership of Technology
	  	19
	 	 	 9.2
	 	 Patent Prosecution
	  	19
	 	 	 9.3
	 	 Cooperation of the Parties
	  	20
	 	 	 9.4
	 	 Infringement by Third Parties
	  	20
	 	 	 9.5
	 	 Infringement of Third Party Rights
	  	21
	 	 	 9.6
	 	 Trademarks
	  	22
	 	 	 9.7
	 	 Patent Labeling
	  	22
			
	 10.
	 	 Representations and Warranties
	  	22
	 	 	 10.1
	 	 Representations and Warranties
	  	22
	 	 	 10.2
	 	 ACADIA Representations and Warranties
	  	22
	 	 	 10.3
	 	 Allergan Representations and Warranties
	  	23
	 	 	 10.4
	 	 Disclaimer Concerning Technology
	  	23
			
	 11.
	 	 Confidentiality; Publication
	  	24
	 	 	 11.1
	 	 Confidentiality
	  	24
	 	 	 11.2
	 	 Exceptions
	  	24
	 	 	 11.3
	 	 Terms of Agreement
	  	24
	 	 	 11.4
	 	 Authorized Disclosure
	  	24
	 	 	 11.5
	 	 Publications
	  	25
			
	 12.
	 	 Term and Termination
	  	26
	 	 	 12.1
	 	 Term of the Agreement
	  	26
	 	 	 12.2
	 	 Termination by Mutual Agreement
	  	26
	 	 	 12.3
	 	 Termination by Allergan
	  	26
	 	 	 12.4
	 	 Termination for Cause
	  	26
	 	 	 12.5
	 	 Accrued Rights, Surviving Obligations
	  	26
			
	 13.
	 	 Indemnity
	  	28
	 	 	 13.1
	 	 Indemnification
	  	28
	 	 	 13.2
	 	 Control of Defense
	  	28
	 	 	 13.3
	 	 Insurance
	  	28
			
	 14.
	 	 Governing Law; Dispute Resolution
	  	29
	 	 	 14.1
	 	 Governing Law
	  	29
	 	 	 14.2
	 	 Dispute Resolution
	  	29
	 	 	 14.3
	 	 Jurisdiction and Venue
	  	29
			
	 15.
	 	 General Provisions
	  	29
	 	 	 15.1
	 	 Notices
	  	29
	 	 	 15.2
	 	 Force Majeure
	  	30
	 	 	 15.3
	 	 Entirety of Agreement
	  	30
	 	 	 15.4
	 	 Non-Waiver
	  	30

  

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	 	 	 	 	 15.5
	 	 Disclaimer of Agency
	  	30
	 	 	 	 	 15.6
	 	 Severability
	  	30
	 	 	 	 	 15.7
	 	 Affiliates; Assignment
	  	30
	 	 	 	 	 15.8
	 	 Headings
	  	31
	 	 	 	 	 15.9
	 	 Limitation of Liability
	  	31
	 	 	 	 	 15.10
	 	 Counterparts
	  	31
	 	 	 	 	 15.11
	 	 Bankruptcy
	  	31
	 	 	 	 	 15.12
	 	 Public Disclosure
	  	32

  

 -iii- 

 COLLABORATIVE RESEARCH, DEVELOPMENT 
  
 AND LICENSE AGREEMENT 
  
 THIS COLLABORATIVE RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT (this “Agreement”), entered into as of July 26, 1999 (the “Effective
Date”) by and among ACADIA PHARMACEUTICALS INC., a Delaware corporation (“ACADIA”), with offices at 3911 Sorrento Valley Blvd., San Diego, California 92121 and ALLERGAN PHARMACEUTICALS (IRELAND) LIMITED, INC. a
Panamanian corporation with offices at Castlebar road Westport, County Mayo, Ireland, ALLERGAN SALES, INC. a California corporation with offices at 2525 Dupont Drive, Irvine, California 92612 and ALLERGAN, INC., a Delaware corporation,
with offices at 2525 Dupont Drive, Irvine, California 92612 (hereinafter collectively “Allergan”), 
  
 W I T N E S S E T H: 
  
 WHEREAS, ACADIA has discovered compounds that are potent agonists selective for the m1 muscarinic receptor which agonists may be useful in the treatment of ocular disease such as glaucoma; and 
  
 WHEREAS Allergan is engaged in the research, development, marketing,
manufacture and sale of therapeutic products for the treatment of ocular disease; and 
  
 WHEREAS, ACADIA and Allergan desire to enter into a collaborative relationship to conduct research with the goal of designating two [···***···] specific muscarinic
receptor ligands as lead drug development compounds for development and commercialization by Allergan for the treatment of ocular disease:  
  
 NOW, THEREFORE, in consideration of the foregoing and the covenants and premises contained in this Agreement, the parties agree as follows: 
  
 1. Definitions. As used herein, the following terms shall have the
following meanings: 
  
 1.1 “ACADIA Designated
Compound” shall mean any one (1) of up to [···***···] Active Compounds and their respective [···***···] (to the extent such
[···***···] are included in the mixture tested) and salts thereof, at any one time selected as a drug candidate by ACADIA pursuant to Section 4.3(b). 
  
 1.2 “ACADIA Know-How” shall mean all tangible or intangible
know-how, trade secrets, inventions (whether or not patentable), data, preclinical results, physical, chemical or biological material, and other information and data on or relating to all [···***···]
Muscarinics that (a) ACADIA owns, controls or to which it has a license with the right to sublicense on the Effective Date or (b) are independently developed by ACADIA or its Affiliates during the Research Term and, in each case, any replication or
any part of such information or material. 
  

 ***Certain confidential 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- 

 1.3 “ACADIA Patents” shall mean, to the extent useful for the purposes of the
Collaboration and any subsequent commercialization of Allergan Products, all foreign and domestic: (a) patents existing as of the Effective Date or issued during the Research Term; and (b) patents issuing from patent applications that are pending as
of the Effective Date or during the Research Term (including provisionals, divisionals, continuations and continuations-in-part of such applications); and (c) substitutions, extensions, reissues, renewals and inventors certificates relating to the
foregoing patents, which ACADIA owns or controls or to which ACADIA has a license (with the right to sublicense). ACADIA Patents shall also mean any patents solely owned by ACADIA pursuant to Section 9.1 hereof. ACADIA Patents existing as of the
Effective Date are the patents and applications listed in Exhibit C attached hereto. 
  
 1.4 “ACADIA Pool Compounds” shall have the meaning set forth in Section 4.2. 
  
 1.5 “ACADIA Product” shall mean any product containing a Collaboration Lead Compound which receives Regulatory Approval for commercial
marketing and sale for use in the Field and is commercialized in the Field by ACADIA, its Affiliates or its sublicensees; including all formulations, line extensions and modes of administration thereof. 
  
 1.6 “ACADIA Technology” shall mean the ACADIA Patents and
the ACADIA Know-How. 
  
 1.7 “Active Compounds”
shall mean any M1 Muscarinic that demonstrates the requisite activity levels in the Assays pursuant to the Research Plan, as such activity levels may be amended from time to time by the RMC. 
  
 1.8 “Affiliate” shall mean any company or entity controlled
by, controlling, or under common control with a party hereto and shall include any company of which greater than fifty percent (50%) of whose voting stock or participating profit interest is owned or controlled, directly or indirectly, by a party,
and any company which owns or controls, directly or indirectly, greater than fifty percent (50%) of the voting stock of a party. 
  
 1.9 “Allergan Designated Compound” shall mean any one (1) of up to [···***···] Active
Compounds, [···***···], at any one time selected as a drug candidate by Allergan pursuant to Section 4.3(a) hereof for research and development in the Field. 
  
 1.10 “Allergan Know-How” shall mean all tangible or
intangible know-how, trade secrets, inventions (whether or not patentable), data, preclinical and clinical results, physical, chemical or biological material, and other information and data on or relating to all
[···***···] Muscarinics that are independently developed by Allergan or its Affiliates during the Research Term and, in each case, any replication or any part of such information or material.

  
 1.11 “Allergan Patents” shall mean any
patents solely owned by Allergan pursuant to Section 9.1 hereof. 
  
 1.12 “Allergan Pool Compounds” shall have the meaning set forth in Section 4.2. 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 -2- 

 1.13 “Allergan Product” shall mean any product containing a Collaboration Lead Compound
which receives Regulatory Approval for commercial marketing and sale for use in the Field and is commercialized in the Field by Allergan, its Affiliates or its sublicensees; including all formulations, line extensions and modes of administration
thereof. 
  
 1.14 “Allergan Technology” shall
mean the Allergan Patents and Allergan Know-How. 
  
 1.15
“Assays” shall mean R-SATTM assays
used to measure activity at all muscarinic receptors and other in vitro molecular assays as determined by the RMC. 
  
 1.16 “Collaboration” shall mean the programs of collaborative research and development under this Agreement for the discovery, selection,
synthesis, investigation, and preclinical and clinical development of [···***···] Muscarinics for use in the Field. 
  
 1.17 “Collaboration Know-How” shall mean any and all tangible or intangible know-how, trade secrets,
inventions (whether or not patentable), data, preclinical results, physical, chemical or biological material, and other information and data that is (a) useful for purposes of the Collaboration and/or that relates to
[···***···] Muscarinics, Allergan Designated Compounds, Allergan Pool Compounds or Collaboration Lead Compounds, but excluding ACADIA Designated Compounds and ACADIA Pool Compounds and (b) that is
derived from or developed pursuant to activities undertaken by either party, including their consultants or collaborators in the conduct of the Collaboration, and, in each case, any replication or any part of such information or material.

  
 1.18 “Collaboration Lead Compound” shall mean
an Allergan Designated Compound selected by Allergan pursuant to Section 4.5 hereof as lead drug development compounds for further pre-clinical and clinical development and commercialization for use in the Field. 
  
 1.19 “Collaboration Patents” shall mean all foreign and
domestic patents (including substitutions, extensions, reissues, renewals and inventors certificates relating thereto) that issue from patent applications including provisionals, divisionals, continuations and continuations-in-part of such
applications that claim inventions in the Collaboration Know-How and that are filed by one or both of the parties on behalf of one or both of the parties hereto. 
  
 1.20 “Collaboration Technology” shall mean the Collaboration Patents and the Collaboration Know-How.

  
 1.21 “Confidential Information” shall mean
all information, inventions, know-how or data disclosed by a party to the other pursuant to this Agreement including, without limitation, manufacturing, marketing, financial, personnel, scientific and other business information and plans, and the
material terms of this Agreement, whether in oral, written, graphic or electronic form. 
  
 1.22 “Field” shall mean the prevention or treatment of ocular disease. 
  
 1.23 “First Commercial Sale” of an Allergan Product or an ACADIA Product shall mean the first sale for use or consumption of such
Allergan Product or such ACADIA Product in a country after Regulatory Approval has been granted by the governing health regulatory 

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 -3- 

 
authority of such country. Sale to an Affiliate or sublicensee shall not constitute a First Commercial Sale unless the Affiliate or sublicensee is the end
user of the Allergan Product or ACADIA Product. 
  
 1.24
“FTE” shall mean full-time equivalent scientific personnel. 
  
 1.25 “IND” shall mean an Investigational New Drug Application filed with the United States Food and Drug Administration, or the equivalent application or filing necessary to commence human clinical
trials in another country, as applicable. 
  
 1.26
“[···***···] Muscarinics” shall mean all [···***···] muscarinic receptor ligands (i) in ACADIA’s possession as of the Effective
Date, (ii) synthesized during the Research Term pursuant to the Research Plan or in any other ACADIA program which selectively targets activation of the [···***···] muscarinic receptor, or (iii)
acquired from Third Parties during the Research Term pursuant to the Research Plan or in conjunction with any other ACADIA program which selectively targets activation of the [···***···] muscarinic
receptor. 
  
 1.27 “Major Market” shall mean the
United States of America, France, Germany, Italy, Spain or the United Kingdom. 
  
 1.28 “NDA” shall mean a New Drug Application, Product License Application or equivalent application filed with the United States Food and Drug Administration, or the equivalent community application
filed in the European Union, or the equivalent application filed as a national application in [···***···]. 
  
 1.29 “Net Sales” shall mean, with respect to any Allergan Product or ACADIA Product, the amount invoiced by Allergan or ACADIA, their
Affiliates or sublicensees to Third Parties which are not Affiliates or sublicensees of the selling party, unless such Affiliates or sublicensees are the end users of such Allergan Product or ACADIA Product in which case the amount billed therefor
shall be deemed to be the amount that would be invoiced to a Third Party in an arm’s length transaction, for the sale of such products less (i) cash discounts and/or quantity discounts allowed; (ii) credits and allowances of returns, rejections
and recalls; (iii) charges for freight, insurance and transportation specifically included in the amount invoiced; (iv) sales and use taxes, duties or other governmental tariffs and other similar taxes incurred and government mandated rebates, (v)
accruals for estimated wholesaler chargebacks, contract rebates and bid rebates and Medicaid and other similar government mandated rebates as Allergan or ACADIA may be required to pay from time to time, all of which shall be determined in accordance
with such party’s standard accounting methods. In the event an Allergan Product or an ACADIA Product is sold in a combination product with other biologically active components, Net Sales, for purposes of royalty payments on the combination
product, shall be calculated by multiplying the Net Sales of that combination by the fraction A/B, where A is the gross selling price of the Allergan Product or ACADIA Product sold separately and B is the gross selling price of the combination
product. In the event that no such separate sales are made, Net Sales for royalty determination shall be calculated by multiplying Net Sales of the combination by the fraction C/(C+D), where C is the fully allocated cost of the active ingredient
(Collaboration Lead Compound) in the Allergan Product or ACADIA Product and D is the fully allocated cost of such other biologically active components. In no event shall Net Sales of any 

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 -4- 

 
Allergan Product or ACADIA Product calculated under this provision with respect to any combination product be less than
[···***···] of the Net Sales of such combination product. In the event an Allergan Product or an ACADIA product is sold in a capitated arrangement or with other products (a “Combination”)
then Net Sales shall be calculated by multiplying the Net Sales of that Combination by the fraction A/B, where A is the gross selling price of the Allergan Product or ACADIA Product sold separately and B is the gross selling price of the
Combination. In the event that no such separate sales are made, Net Sales for royalty determination shall be calculated by multiplying Net Sales of the Combination by the fraction C/(C+D), where C is the fully allocated cost of the Allergan Product
or ACADIA Product and D is the fully allocated cost of the other products in the Combination. From time to time, but not less often than annually, the party owing any royalty with respect to Net Sales will determine the actual amount of rebates paid
under clauses (iv) and (v) above and any differences between the estimates accrued under (v) above and the actual amounts paid will be treated as adjustments to Net Sales subject to royalty in the period in which such differences are so determined.

  
 1.30 “Proof of Concept in Glaucoma Patients”
shall have the meaning stated in Exhibit A hereto. 
  
 1.31
“Regulatory Approval” shall mean any and all approvals (including price and reimbursement approvals), licenses, registrations, or authorizations of the United States or European Union or any country, federal, state or local
regulatory agency, department, bureau or other government entity that is necessary for the manufacture, use, storage, import, transport and/or sale of an Allergan Product or an ACADIA Product in such jurisdiction. 
  
 1.32 “Research Management Committee” or
“RMC” shall mean the committee formed pursuant to Section 2.4. 
  
 1.33 “Research Plan” shall mean the plan for conducting the research under the Collaboration, as amended from time to time by the RMC. The initial Research Plan agreed upon by the parties hereto is
attached to this Agreement as Exhibit B. Any amendments or revisions to the Research Plan shall be in writing and shall require unanimous approval of the RMC. 
  

1.34 “Research Program” shall mean a collaborative research program in the Field under this Agreement with the goal of designating two
Collaboration Lead Compounds for development and commercialization in the Field. 
  
 1.35 “Research Term” shall mean [···***···] following the Effective Date and one additional
[···***···] renewal period upon written notice from Allergan no less than one (1) month prior to the anniversary of the Effective Date, if Allergan has not selected two Collaboration Lead Compounds
during the [···***···] period following the Effective Date. The Research Term may be further extended upon terms to be agreed upon by the parties in good faith negotiations. 
  
 1.36 “Royalty Term” shall mean, in the case of each Allergan
Product or ACADIA Product, in any country, the period of time commencing on the First Commercial Sale and ending upon the later of (a) ten (10) years from the date of First Commercial Sale in such 

  

 ***Certain confidential 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- 

 
country, or (b) the expiration of the last to expire Valid Claim covering such Allergan Product or ACADIA Product in such country. 
  
 1.37 “Term of the Agreement” shall have the meaning ascribed
in Section 12.1. 
  
 1.38 “Territory” shall mean
all countries of the world. 
  
 1.39 “Third
Party” shall mean any entity other than Allergan or ACADIA or an Affiliate of Allergan or ACADIA. 
  
 1.40 “Valid Claim” shall mean a claim of an unexpired patent included within the patent rights licensed hereunder, which has not been
held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent jurisdiction unappealable or unappealed within the time allowed for appeal and which has not been admitted to be invalid or unenforceable
through reexamination, reissue or disclaimer. 
  
 2. Scope of
Collaboration; Development Responsibilities; Exclusivity and Governance. 
  
 2.1 Scope of Collaboration. The parties hereby agree to establish and conduct, during the Research Term, a collaborative research program in accordance with the Research Plan and the terms of this Agreement.
The initial Research Plan for conducting such research program is attached to this Agreement as Exhibit B. Pursuant to the Collaboration, the parties will collaborate in identifying Active Compounds with the goal of designating two Collaboration
Lead Compounds for development and commercialization. 
  
 2.2
Development Responsibilities. ACADIA will be primarily responsible for providing all medicinal, computational and synthetic chemistry and m1 muscarinic R-SATTM analysis and other in vitro molecular assays selected by the RMC. ACADIA will also be primarily responsible for
providing sufficient quantities [···***···] of non-GMP Allergan Designated Compounds to Allergan for pre-IND animal proof of concept testing. Allergan will be primarily responsible for the in
vivo testing in relevant disease models, the preclinical development of Allergan Designated Compounds in the Field including, but not limited to; pharmaceutics, ADME, toxicology, process chemistry and manufacturing scale up, and the further
preclinical and clinical development of Collaboration Lead Compounds. 
  
 2.3 Exclusivity of the Collaboration. During the Research Term, the Research Program shall be the parties’ exclusive means of collaborating and/or conducting research and development on
[···***···] muscarinics in the Field. Other than pursuant to the terms of this Agreement, at the end of the Research Term for as long as Allergan is developing, and until Allergan has commercialized a
Collaboration Lead Compound, Allergan shall not: a) collaborate with any Third Party for the purpose of discovering, developing and/or commercializing any compounds for use in the Field that produce the intended therapeutic effects principally by
selective activation of the [···***···] muscarinic receptor (b) license in or acquire from any Third Party any compound and/or product for use in the Field that produces the intended therapeutic
effects principally by selective activation of the [···***···] muscarinic receptor or (c) conduct any research and/or development for the purpose of identifying compounds for use in the Field that
produce the intended therapeutic effects principally by selective activation of the [···***···] muscarinic receptor. 
  

 ***Certain confidential 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- 

 For the purposes of the forgoing, (“selective”) shall mean as set forth in the initial Research Plan attached
as Exhibit B activity at the [···***···] muscarinic receptor at least [···***···] the activity at the
[···***···] muscarinic receptor. At the end of the Research Term: if Allergan is developing a Collaboration Lead Compound in the Field, then (x) so long as Allergan is actively developing a
Collaboration Lead Compound or commercializing an Allergan Product as permitted under this Agreement ACADIA shall not develop, itself, or with a Third Party any Allergan Designated Compound or ACADIA Designated Compound in the Field or any
Collaboration Lead Compound in any field, and (y) for [···***···] after the end of the Research Term, only if Allergan continues to develop a Collaboration Lead Compound during such
[···***···] period, ACADIA shall not develop any Allergan Designated Compound, itself, or with a Third Party, in any field, and (z) for [···***···]
after the end of the Research Term, only if Allergan continues to develop a Collaboration Lead Compound during such [···***···] period, ACADIA shall not develop any
[···***···] muscarinic, itself, or with a Third Party, in the Field. 
  
 2.4 Research Management Committee. Promptly after the Effective Date, the parties will form a Research Management Committee (“RMC”)
comprised of three (3) representatives of each of ACADIA and Allergan. One member of the RMC shall be selected to act as the chairperson of the RMC, with each chairperson acting for a term of
[···***···]. The chairperson shall be selected alternately by Allergan and ACADIA, and ACADIA shall designate the first chairperson. The RMC shall determine the specific goals for the Collaboration,
shall manage the ongoing research conducted under the Collaboration, and shall monitor the progress and results of such work. All decisions of the RMC shall be unanimous. The RMC shall meet on a quarterly basis or at such other frequency as the RMC
agrees. The parties shall agree upon the time and place of meetings. Within [···***···] after each meeting, the RMC chairperson will provide the parties with a written report describing, in reasonable
detail, the status of the Collaboration, a summary of the results and progress to date, the issues requiring resolution, and the agreed resolution of previously reported issues. A reasonable number of additional representatives of a party may attend
meetings of the RMC in a non-voting capacity. 
  
 2.5 Research
Management Committee Functions And Powers. The RMC shall encourage and facilitate ongoing cooperation between the parties, establish, update, review and approve the Research Plan and other plans for accomplishing the Collaboration goals,
allocate tasks and coordinate activities required to perform the Collaboration, monitor progress of the Collaboration and the parties’ diligence in carrying out their responsibilities thereunder, oversee the conduct of all patent matters,
determine the in vitro data and information that must be provided to Allergan and to ACADIA on each Active Compound to enable Allergan and ACADIA to determine their interest in selecting such Active Compound as an Allergan Pool Compound or an
ACADIA Pool Compound and carry out the other duties and responsibilities described for it in this Agreement. The RMC shall also be responsible for developing and approving an annual research budget for activities to be performed by the parties
pursuant to the Research Plan for [···***···] of the Research Term (including any renewal or extension thereof), subject to the minimum funding levels provided in Section 7.2. Such budget shall set
forth the research funding to be provided by Allergan to ACADIA, which shall be determined based on the number of FTEs required for ACADIA to perform its activities under the Research Plan. 
  

 ***Certain confidential 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- 

 In addition, the RMC shall maintain and, on a regular basis, update and provide to the parties a list or
lists of the following: Active Compounds, ACADIA Designated Compounds, ACADIA Pool Compounds, Allergan Designated Compounds, Allergan Pool Compounds, and Collaboration Lead Compounds. 
  
 2.6 Information And Reports. Except as otherwise provided in this Agreement, the parties will make available and
disclose to one another all results of the work conducted pursuant to the Collaboration prior to and in preparation for RMC meetings, in the form and format to be designated by the RMC. 
  
 2.7 RMC Dispute Resolution. If the RMC is unable to decide or resolve an issue unanimously, the issue shall be
referred to the Chief Scientific Officer of ACADIA and the President, Research and Development of Allergan. Such officers of the parties will meet promptly thereafter and shall negotiate in good faith to resolve such issue. If they cannot resolve
the issue within [···***···] of commencing such negotiations then the issue shall be resolved as provided in Section 14.2. 
  
 3. Technology Transfer and Identification of Active Compounds. 
  
 3.1 Transfer of ACADIA Technology. Commencing promptly after the
Effective Date and from time to time thereafter, ACADIA shall disclose to Allergan such of the ACADIA Technology and relevant information with respect to ACADIA Designated Compounds as is reasonably necessary to enable Allergan to perform its
Collaboration activities hereunder in accordance with the Research Plan and otherwise to exercise fully the licenses granted to Allergan hereunder, provided, however, that with respect to information relating to ACADIA Designated Compounds, ACADIA
shall only be required to disclose such information to the extent that it is permitted to do so and Allergan shall only have the right to use such information for research purposes. During the Term of the Agreement, ACADIA will provide Allergan with
reasonable technical assistance relating to the use of such ACADIA Know-How and the practice of such ACADIA Patents in the Field solely to the extent permitted under the licenses granted to Allergan herein. In the event that ACADIA provides any
materials to Allergan pursuant to the Research Plan, the parties will enter into a Materials Transfer Agreement in the form attached hereto as Exhibit D with respect to such materials. 
  
 3.2 Transfer of Allergan Technology. Commencing promptly after the Effective Date and from time to time thereafter,
Allergan shall disclose to ACADIA such of the Allergan Technology as is reasonably necessary to enable ACADIA to perform its Collaboration activities hereunder in accordance with the Research Plan and otherwise to exercise fully the licenses granted
to ACADIA hereunder. For the avoidance of doubt, Allergan shall have no obligation to disclose to ACADIA clinical data related to Collaboration Lead Compounds other than as required pursuant to Section 5.2, unless ACADIA exercises its right to
develop and commercialize collaboration Lead Compounds pursuant to Section 6.5, 12.5(b) or 12.5(c). In addition, Allergan shall make available all data and information existing as of the Effective Date generated by Allergan, its Affiliates or its
collaborators under the Confidential Disclosure Agreement dated March 1, 1998 between ACADIA and Allergan. During the Term of the Agreement, Allergan will provide ACADIA with reasonable technical assistance relating to the use of such Allergan
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permitted under the license granted to ACADIA herein. In the event that Allergan provides any materials to ACADIA pursuant to the Research Plan, the parties
will enter into a Materials Transfer Agreement in the form attached hereto as Exhibit D with respect to such materials. 
  
 3.3 Identification of Active Compounds. During the Research Term, the parties shall collaborate in accordance with the Research Plan to perform
research to identify Active Compounds with the potential to become Allergan Designated Compounds or ACADIA Designated Compounds. The parties shall report the results of such research promptly to the RMC. 
  
 4. Compound Testing And Selection. 
  
 4.1 Testing To Identify Active Compounds. 
  
 (a) Compounds for Testing. During the Research Term, ACADIA will make
all [···***···] Muscarinics available for testing in the Assays pursuant to the Research Plan. ACADIA will promptly provide to the RMC any information in ACADIA’s possession regarding the
chemical structure and properties of such compounds. In addition, the RMC may agree to have ACADIA synthesize additional compounds and to obtain from Third Parties rights to screen compounds owned or controlled by Third Parties; provided,
however, that if there would be any amounts payable to such Third Party for testing such compounds or making, using or selling products containing such compounds, no such Third Party compounds will be procured and screened without the consent of
both parties. 
  
 (b) Testing. ACADIA shall use
commercially reasonable efforts to conduct the testing in the Assays of [···***···] Muscarinics pursuant to the Research Plan or selected for testing under Section 4.1(a). The primary goal of the
testing is to determine the activity of such selected compounds to identify Active Compounds 
  
 (c) Identification of Active Compounds. Promptly after completing the testing of a batch of compounds under this Section 4.1 in the Assays, ACADIA will provide to the RMC the results of such testing. The RMC
will review such Assay results promptly after receipt and will determine which of the screened compounds meet the requirements established in the Research Plan for designation as Active Compounds, as such requirements may be modified by the RMC.
Upon designating Active Compounds, the RMC shall add such compounds to the list of all Active Compounds, which shall be maintained by the RMC, and shall forward the updated list to each party. 
  
 4.2 Selection of Pool Compounds. The process for selection of Active
Compounds as Allergan Pool Compounds or as ACADIA Pool Compounds shall be as set forth in this Section 4.2, and as such process may be amended by the RMC from time to time. 
  
 The parties shall meet on a quarterly basis, or more frequently, as agreed to by the RMC, to select Active Compounds which
have the potential of becoming Allergan Designated Compounds or ACADIA Designated Compounds, hereinafter defined as a “Compound Selection Meeting”. Such Compound Selection Meetings shall be scheduled contemporaneously with RMC meetings, to
the extent practicable. At least [···***···] before each Compound Selection Meeting ACADIA shall provide to the RMC the Assay results on all
[···***···] Muscarinics tested since the last report describing such Assay results was delivered to the RMC. The Assay 

  

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results shall be provided in a form as agreed to by the RMC. Each Compound Selection Meeting shall begin by reviewing the Assay results provided by ACADIA
prior to such Compound Selection Meeting and, pursuant to Section 4.1 (c), determining which of the screened compounds meet the requirements for designation as Active Compounds. 
  
 The selection of Active Compounds by ACADIA and by Allergan shall take place at each Compound Selection Meeting in
[···***···] and each such Active Compound selected [···***···] shall hereinafter be defined as an Allergan Pool Compound or ACADIA Pool Compound,
[···***···]. [···***···] shall make the [···***···] the initial Compound Selection Meeting
[···***···]. The RMC shall record [···***···]. From the date upon which each [···***···] Pool Compound
is designated hereunder until the end of the Research Term, [···***···] shall not [···***···] Pool Compounds. At the end of the Research Term all
rights to [···***···] Pool Compounds but not [···***···] Designated Compounds or Collaboration Lead Compounds shall
[···***···]. 
  
 4.3 Selection of Designated Compounds. 
  
 (a)
Selection by Allergan. Allergan shall have the right, in consultation with the RMC, to select up to [···***···] Allergan Pool Compounds that appear promising for preclinical evaluation by Allergan
for use in the Field. At the time of such selection, such selected Allergan Pool Compounds shall be designated as Allergan Designated Compounds. From time to time thereafter, Allergan may designate additional Allergan Pool Compounds as Allergan
Designated Compounds or remove the designation from previously designated Allergan Designated Compounds so long as the total number of Allergan Designated Compounds shall not exceed [···***···] at any
time. 
  
 Allergan shall use reasonable efforts to conduct, at its
own expense, all preclinical testing and investigations necessary for Allergan to select appropriate Allergan Designated Compounds to designate as Collaboration Lead Compounds for further development. Such further development may include, at
Allergan’s reasonable discretion, but not be limited to, GLP toxicology studies, formulation and process development, animal testing and other preclinical pharmaceutical development necessary to prepare and file an IND and all additional animal
testing and human clinical testing necessary to file a NDA. Except as provided in Section 2.2, Allergan will be responsible for providing, at its own expense, the supply of all Allergan Designated Compounds and Collaboration Lead Compounds necessary
for preclinical and clinical development worldwide. 
  
 Allergan
shall provide promptly to the RMC the results of all work it performs pursuant to this Section 4.3(a) during the Research Term. Allergan shall use reasonable efforts to conduct such work in order to select a Collaboration Lead Compound as soon as
possible. From the date upon which each Allergan Designated Compound is designated hereunder until the date that is [···***···] following the end of the Research Term, ACADIA will not grant any
license 

  

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to a Third Party under its interest in the Allergan Designated Compounds. On the date that is [···***···]
following the end of the Research Term all rights to Allergan Designated Compounds (unless such Allergan Designated Compound has been selected as a Collaboration Lead Compound and Allergan continues development or commercialization of such
Collaboration Lead Compound) shall revert to ACADIA, subject to the provisions of Section 2.3 hereof. 
  
 (b) Selection by ACADIA. ACADIA shall have the right, in consultation with the RMC, to select up to
[···***···] ACADIA Pool Compounds for use in ACADIA’s own research programs or the research programs of Third Parties selected by ACADIA. At the time of such selection, such selected ACADIA Pool
Compounds shall be designated as ACADIA Designated Compounds. From time to time thereafter, ACADIA may designate additional ACADIA Pool Compounds as ACADIA Designated Compounds or remove the designation from previously designated ACADIA Designated
Compounds so long as the total number of ACADIA Designated Compounds shall not exceed [···***···] at any time. 
  

4.4 Substitution of Designated Compounds 
  
 In the event that Allergan elects to remove the designation from a previously designated Allergan Designated Compound and replace such Allergan Designated
Compound with another Allergan Pool Compound, then Allergan shall provide ACADIA notice of Allergan’s intent to substitute such Allergan Designated Compound and ACADIA shall have the right to select such previously designated Allergan
Designated Compound as an ACADIA Designated Compound. If within [···***···] following such notice, ACADIA has not provided notice to Allergan that it intends to select such previously designated
compound as an ACADIA Designated Compound then such previously designated Allergan Designated Compound shall become an Allergan Pool Compound. 
  
 In the event that ACADIA elects to remove the designation from a previously designated ACADIA Designated Compound and replace such ACADIA Designated
Compound with another ACADIA Pool Compound, then ACADIA shall provide Allergan notice of ACADIA’s intent to substitute such ACADIA Designated Compound and Allergan shall have the right to select such previously designated ACADIA Designated
Compound as an Allergan Designated Compound. If within [···***···] following such notice, Allergan has not provided notice to ACADIA that Allergan intends to select such previously designated compound
as an Allergan Designated Compound then such previously designated ACADIA Designated Compound shall become an ACADIA Pool Compound. 
  
 4.5 Selection of Collaboration Lead Compounds. Allergan shall have the right to select and designate, by written notice to ACADIA and the RMC, up
to two (2) Collaboration Lead Compounds for clinical development. Allergan shall use reasonable efforts to select a Collaboration Lead Compound prior to the end of the Research Term. Upon selection of an Allergan Designated Compound as a
Collaboration Lead Compound, Allergan shall be entitled to select another Allergan Pool Compound as an Allergan Designated Compound so that it retains [···***···] Allergan Designated Compounds.
Allergan may, at any time, exchange a Collaboration Lead Compound for an Allergan Designated Compound, which will then become a Collaboration Lead Compound. 
  

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 5. Product Development Manufacturing and Supply. 
  
 5.1 Development of Collaboration Lead Compounds. After selection of
each Collaboration Lead Compound Allergan shall prepare and deliver to ACADIA within a reasonable period, such period not to exceed [···***···] for a draft and
[···***···] for a final, thereafter, a written development plan for conducting research and development on such Collaboration Lead Compound, describing the activities and projected timing of the
activities necessary to obtain Regulatory Approval for such Collaboration Lead Compound. Each such development plan shall be prepared by Allergan in a manner consistent with commercially reasonable standards and practices in the industry. Allergan
shall have the sole responsibility for conducting preclinical and clinical development of Collaboration Lead Compounds in accordance with the development plan. Allergan agrees to use commercially reasonable efforts to fund and perform such
development in Major Markets. 
  
 5.2 Disclosure of Study Data
on Collaboration Lead Compounds. At least once every [···***···] from the date upon which Allergan designates a Collaboration Lead Compound(s), Allergan shall provide to ACADIA prior to an IND
filing for such Collaboration Lead Compound, a report summarizing the scientific results of studies on such Collaboration Lead Compound and, subsequent to an IND filing for such Collaboration Lead Compound, the IND update or equivalent report
required by the United States Food and Drug Administration for such Collaboration Lead Compound. In each such report, Allergan shall provide ACADIA a description of the progress made during the
[···***···] towards obtaining Regulatory Approval of such Collaboration Lead Compound and the plans for the [···***···]. Allergan shall have the right
to modify the development plan in the event that commercial, scientific or competitive conditions or regulatory requirements change during the course of the development and/or there are unanticipated results obtained in preclinical or clinical
studies. 
  
 5.3 Manufacture and Supply. Except as outlined
in Section 2.2, Allergan shall be responsible for providing, at its sole expense, the supply of all Allergan Designated Compounds and Collaboration Lead Compounds necessary for the preclinical and clinical development of such Allergan Designated
Compounds and Collaboration Lead Compounds and all Allergan Products necessary for commercialization worldwide. 
  
 6. License Grants; Failure to Pursue Development in Japan. 
  

6.1 License Grants for Collaborative Research. 
  
 (a) Grant by ACADIA. During the Research Term and for [···***···] thereafter with respect to
Allergan Designated Compounds, ACADIA grants to Allergan an exclusive (except as to ACADIA’s rights expressly set forth in this Agreement), worldwide, non-transferable (except as to Japan), royalty-free license, with the right to sublicense
only as it relates to Japan, under the ACADIA Technology and ACADIA’s interest in the Collaboration Technology to use such technology solely to the extent necessary or appropriate to carry out Allergan’s research responsibilities under the
Collaboration in the Field. Allergan has the right to subcontract with Third Parties for the performance of research and development activities, provided, however, that (i) the contracted Third Party shall enter into a confidentiality
agreement with Allergan; and (ii) Allergan shall supervise such subcontract work. 
  

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 (b) Grant by Allergan. During the Research Term, Allergan grants to ACADIA a nonexclusive,
worldwide, royalty-free license, under the Allergan Technology and Allergan’s interest in the Collaboration Technology, to use such technology solely to the extent necessary or appropriate to carry out ACADIA’s research responsibilities
under the Collaboration. 
  
 6.2 License Grant for Development
and Commercial Purposes. Subject to other provisions of this Agreement, ACADIA grants to Allergan the following rights and licenses: 
  
 (a) an exclusive, royalty-free license under the ACADIA Technology and ACADIA’s interest in the Collaboration Technology to make, have made, and use
Collaboration Lead Compounds in order to conduct necessary preclinical, clinical and other development activities on such Collaboration Lead Compounds to obtain Regulatory Approval for use in the Field as Allergan Products; 
  
 (b) an exclusive, royalty-bearing license under the ACADIA Technology and
ACADIA’s interest in the Collaboration Technology to make, have made, use and sell Allergan Products in the Field in the Territory. 
  
 6.3 Sublicensing Rights. Allergan shall have the right to sublicense the rights granted by ACADIA in Section 6.2. 
  
 6.4 Diligence Obligations. Allergan’s development and
commercialization rights will be subject to development, manufacturing, and commercial diligence obligations consistent with Allergan’s practice for products with similar commercial potential. Such diligence obligations shall include, but not
be limited to, diligent execution of a development plan pursuant to Section 5.1 and diligently beginning the development of each Collaboration Lead Compound [···***···] either itself, or through a
Third Party. Allergan shall give written notice to ACADIA no later than the time that Allergan begins Phase III trials of such Collaboration Lead Compound in a Major Market specifying whether Allergan intends to develop such Collaboration Lead
Compound [···***···] either by itself or in collaboration with a Third Party. In the event that Allergan provides ACADIA with written notice that Allergan will develop such Collaboration Lead Compound
itself, Allergan will deliver to ACADIA a development plan within [···***···] of such notice. Such [···***···] development plan shall comply with the
provisions of Section 5.1. In the event that Allergan provides ACADIA with written notice that Allergan will develop such Collaboration Lead Compound through a Third Party, Allergan will use reasonable efforts to select and complete an Agreement
with such Third Party to develop said Collaboration Lead Compound and commercialize the resulting Allergan Product in [···***···] within [···***···] of
such notice. 
  
 6.5 Failure to Pursue Development in
[···***···]. If Allergan fails to diligently begin the development of a Collaboration Lead Compound in [···***···] as required in Section 6.4,
Allergan will grant to ACADIA an exclusive (even as to Allergan), perpetual and royalty-free right, with the right to sublicense, under the Allergan Technology and Allergan’s interest in the Collaboration Technology to make, have made, use and
sell Active Compounds, including Allergan Designated Compounds, Allergan Pool Compounds and Collaboration Lead Compounds, in the Field in [···***···] itself, or with any Third Party. Allergan will
release ACADIA from ACADIA’s ophthalmology exclusivity requirement pursuant to the September 24, 1997 Collaboration 

  

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Agreement as it relates to ACADIA’s right to make, have made, use and sell Active Compounds, including Allergan Designated Compounds, Allergan Pool
Compounds and Collaboration Lead Compounds, in the Field in [···***···] itself or with a Third Party. ACADIA will also have the royalty-free right to use all Allergan Know-How and Collaboration
Know-How to (a) make, have made, use and sell Active Compounds, including Allergan Designated Compounds, Allergan Pool Compounds and Collaboration Lead Compounds, in the Field in [···***···] and (b)
pursue regulatory approval to make, have made, use and sell Active Compounds, including Allergan Designated Compounds, Allergan Pool Compounds and Collaboration Lead Compounds, in the Field in
[···***···]. 
  
 7. Fees and Payments. 
  
 7.1 Up-front Fee.
On the date of execution of this Agreement Allergan shall pay ACADIA a one-time, non-refundable fee of [···***···]. 
  
 7.2 Research Funding. During the [···***···] of the Research Term,
Allergan agrees to pay ACADIA, on a quarterly basis in advance, payable no later than the [···***···] of the quarter, research funding payments at an annualized rate of
[···***···] per ACADIA FTE devoted to the Research Program during the [···***···] of the Research Term. Thereafter, such rate per ACADIA FTE will be
increased, if applicable, for the [···***···] of the Research Term by a multiplier factor which reflects changes in the Pharmaceutical Manufacturers’ Producer Price Index for the United States
(or its successor Index) as reported as of the date that is [···***···] prior to the anniversary of the Effective Date when compared to the comparable statistic as of the date that is
[···***···] prior to the Effective Date, subject to a cap of [···***···] per ACADIA FTE. Such funding shall be in such amounts as are set forth in the
Research Plan, provided that the Research Plan shall initially provide for at least a total of [···***···] ACADIA FTEs for the longer of the first
[···***···] of the Research Term or until a Collaboration Lead Compound is designated by Allergan. Once a Collaboration Lead Compound is designated by Allergan, the RMC will amend the Research Plan
and agree upon the amount of research funding to be paid by Allergan to ACADIA during the final [···***···] or fraction thereof remaining before the first anniversary date of this Agreement. Such
research funding shall support a minimum of [···***···] ACADIA FTEs. If the Research Term is extended beyond the first anniversary of this Agreement the actual funding level for such extension shall
be agreed upon by the RMC; provided, however, if such funding does not support a minimum of [···***···] ACADIA FTEs, then Allergan shall not be able to select as an Allergan Designated Compound or a
Collaboration Lead Compound any compound that was not an Allergan Pool Compound on the [···***···] anniversary date of this Agreement. 
  
 It is intended that, as determined by the RMC, Allergan will provide sufficient research funding to ACADIA during the
Research Term (and any renewal or extension thereof) to support the number of FTEs required to pursue the activities set forth in the Research Plan in accordance with Exhibit B hereto, as the Research Plan is developed and approved by the RMC, in
accordance with the research budget developed and approved by the RMC as described in Section 2.5, and subject to the limitations, including the minimum funding levels, set forth above. The first and last quarter payments shall be prorated, with the
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[···***···] after the Effective Date. ACADIA shall give notice to Allergan in the event that the total FTEs
for its muscarinic program drop below [···***···] FTEs. 
  
 7.3 Milestone Payments. 
  
 (a) Within [···***···] after achievement by Allergan, its Affiliates, sublicensees, partners,
collaborators or other Third Parties designated by Allergan, of each of the following milestones with respect to each Collaboration Lead Compound Allergan shall pay ACADIA the following non-refundable milestones (provided, however, that if Allergan
abandons development of a Collaboration Lead Compound and replaces it with development of another Collaboration Lead Compound, no duplicate milestone payments shall be due for the replacement compound if such milestone payment was made with respect
to the compound it replaced): 
  

				
	 Milestone Event

	  	Amount of Payment

		
	 (1)    Designation of a Collaboration Lead Compound
	  	$	250,000
		
	 (2)    Acceptance of IND in [···***···] for a Collaboration Lead
Compound
	  	 	[···***···]
		
	 (3)    Completion of Proof of Concept in Glaucoma Patients
	  	 	[···***···]
		
	 (4)    Initiation of the first Phase III clinical trial, (or equivalent pivotal study) for a Collaboration Lead Compound
in [···***···]
	  	 	[···***···]
		
	 (5)    First filing and acceptance of an NDA on a Collaboration Lead Compound in
[···***···]
	  	 	[···***···]
		
	 (6)    NDA Approval of a Collaboration Lead Compound in [···***···]
(provided however that if such [···***···] is not [···***···], then Allergan shall pay [···***···]
upon NDA Approval of a Collaboration Lead Compound in the [···***···] and [···***···] upon NDA Approval of a Collaboration Lead Compound in
[···***···]
	  	 	[···***···]
		
	 (7)    Initiation of first Phase III equivalent trial for a Collaboration Lead Compound in
[···***···]
	  	 	[···***···]
		
	 (8)    NDA approval in [···***···]
	  	 	[···***···]

  
 (b)
[···***···] of each milestone payment made by Allergan for Milestone Events 5, 6, and 8 above shall be creditable against royalties owed on Net Sales of Allergan Products, pursuant to Section 7.4,
provided that in no event shall ACADIA receive less than [···***···] of the royalties otherwise due to it for such Collaboration Lead Compound in any given quarter. 
  

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 7.4 Royalties. 
  
 (a) Allergan Royalty Payments to ACADIA. Allergan shall pay to ACADIA the following royalties on annual Net Sales:
(a) [···***···] of Net Sales of Allergan Products on all annual Net Sales up to [···***···]; and (b)
[···***···] of incremental annual Net Sales of Allergan Products in excess of [···***···] up to
[···***···] and (c) [···***···] of incremental annual Net Sales of Allergan Products in excess of
[···***···]; subject to any adjustment pursuant to Section 7.4 (c). For purposes of the foregoing, annual Net Sales shall be determined on a calendar year basis. 
  
 (b) ACADIA Royalty Payments to Allergan. If Allergan files an IND
which is accepted by the FDA on a Collaboration Lead Compound, and this Agreement is later terminated by Allergan (other than for breach by ACADIA), and ACADIA, in collaboration with a Third Party licensee, uses Allergan Technology and/or
Collaboration Technology in connection with the development or commercialization of such Collaboration Lead Compound for use in the Field then ACADIA shall pay to Allergan, as applicable, an up-front fee and milestone payment(s) (excluding equity
investments) and a royalty equal to the percentage appropriately applied from the following table multiplied by the up-front fee and milestone payment(s) (excluding equity investments) received by ACADIA and royalty payments received by ACADIA from
such Third Party licensee on Net Sales of ACADIA Products containing such Collaboration Lead Compound, subject to any adjustment pursuant to Section 7.4 (c). 
  

					
	 Last Event Completed Prior to Termination by Allergan

	  	 	  	Percentage of
ACADIA royalty,
upfront fee and
milestones

	 [···***···]
	  	 	  	[···***···]
	 [···***···]
	  	 	  	[···***···]
	 [···***···]
	  	 	  	[···***···]
	 [···***···]
	  	 	  	[···***···]

  
 In the event that
ACADIA uses Allergan Technology and/or Collaboration Technology in connection with the development or commercialization of such Collaboration Lead Compound for use in the Field and ACADIA commercializes such Collaboration Lead Compound itself,
rather than outlicensing rights to such Collaboration Lead Compound to a Third Party, then ACADIA shall pay to Allergan, as applicable, an upfront fee and milestone payment(s) (excluding equity investments) and a royalty on Net Sales of ACADIA
Products containing such Collaboration Lead Compound (which royalty shall not be less than [···***···] of Net Sales) which shall be negotiated in good faith by the parties in light of the industry
standards at that time for deals executed at the stage of development last completed by Allergan each multiplied by the applicable percentage from the table above subject to any adjustment pursuant to Section 7.4 (c). 
  
 Notwithstanding the foregoing, in the event that the total of all upfront fee and milestone
payments paid to Allergan by ACADIA pursuant to this Section 7.4 (b) are less than the total 

  

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upfront fee and milestones paid to ACADIA by Allergan prior to the termination of this Agreement by Allergan, then ACADIA shall make a final milestone
payment to Allergan upon NDA Approval of an ACADIA Product containing such Collaboration Lead Compound in a Major Market, the amount of such final payment equal to the difference between the total of the upfront fee and milestone payments paid by
ACADIA to Allergan pursuant to this Section 7.4 (b) and the actual total amount of the upfront fee and milestones paid to ACADIA by Allergan prior to termination of this Agreement by Allergan. 
  
 (c) Royalty Rate in the Event of No Market Exclusivity. In the event
that Allergan Products or ACADIA Products are sold in a Major Market, Japan, Canada, Brazil, Argentina or the Netherlands (hereinafter each of which individually is defined as a “Key Commercial Country”) in which (i) no Valid Claim exists,
and (ii) unit sales of such Allergan Product or ACADIA Product as measured by IMS, or its successor database, in a calendar quarter in a Key Commercial Country are less than [···***···] of the Total
Market Units in such Key Commercial Country, in such calendar quarter, then the royalty payment due to ACADIA or to Allergan, as the case may be, for Net Sales of such Allergan Product or ACADIA Product in such Key Commercial Country, as the case
may be, [···***···]. For the purpose of this Section 7.4(c), Total Market Units shall mean the sum of (i) the units of the Allergan Product or ACADIA Product sold and (ii) the total number of units
sold of all generic products which contain the same active ingredient as the Collaboration Lead Compound contained in such Allergan Product or ACADIA Product and are approved for a similar therapeutic use as such Allergan Product or ACADIA Product,
each as measured by IMS or its successor database. In the event that (x) a Valid Claim covering the Allergan Product or ACADIA Product is established or re-established in such Key Commercial Country, or (y) unit sales of such Allergan Product or
ACADIA Product as measured by IMS, or its successor database in such Key Commercial Country become greater than [···***···] of the Total Market Units in such Key Commercial Country, then the royalty
payment due to ACADIA or to Allergan, as the case may be, with respect to Net Sales of such Allergan Product or ACADIA Product in such Key Commercial Country, as the case may be, after such date shall revert to
[···***···]. 
  
 In the event that Allergan Products or ACADIA Products are sold in a country which is not a Key Commercial Country (hereinafter each such country is individually defined as a “Non-Key Commercial Country”) in which (i) no Valid
Claim exists, and (ii) there are commercial sales by a Third Party of a generic product(s) which contains the same active ingredient as the Collaboration Lead Compound contained in such Allergan Product or ACADIA Product and which generic product(s)
is approved for a similar therapeutic use as such Allergan Product or ACADIA Product, then the royalty payment due to ACADIA or to Allergan, as the case may be, for Net Sales of such Allergan Product or ACADIA Product in such Non-Key Commercial
Country, as the case may be, shall be [···***···]. In the event that (x) a Valid Claim covering the Allergan Product or ACADIA Product is established or re-established in such Non-Key Commercial
Country, or (y) all such Third Parties shall cease sale of such generic product(s) in such Non-Key Commercial Country, then the royalty payment due to ACADIA or to Allergan, as the case may be, with respect to Net Sales of such Allergan Product or
ACADIA Product in such non-Key Commercial Country, as the case may be, after such date shall [···***···]. 
  

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 (d) Royalty Term. Royalties for sales of each Allergan Product or ACADIA Product in a given
country shall be paid for a period equal to the Royalty Term for such Allergan Product or ACADIA Product in such country. 
  
 (e) Credit for Third Party Royalties. In the event that a party obligated to pay royalties under this Agreement must make royalty payments under a
license from a Third Party in respect of any patents that are necessary to develop, make, have made, use, sell, have sold or import a Collaboration Lead Compound, an Allergan Product or an ACADIA Product then such party may reduce the royalty
otherwise owing on Net Sales of such product [···***···] of the royalty payments made under such Third Party license; provided, however, that the royalty otherwise payable under the applicable
provision of this Agreement during any quarter shall not be reduced by more than [···***···]. 
  
 8. Payments; Records; Audits. 
  
 8.1 Payment; Reports. Royalty payments and reports for the sale of Allergan Products or ACADIA Products shall be calculated and reported for each
calendar quarter. All royalty payments due to a party under this Agreement shall be paid within [···***···] of the end of each calendar quarter. Each payment of royalties shall be accompanied by a
report of Net Sales of Allergan Products or ACADIA Products, in sufficient detail to permit confirmation of the accuracy of the royalty payment made, including, without limitation, the number of each Allergan Product or ACADIA Product sold, the
gross sales and Net Sales of each Allergan Product or ACADIA Product, the royalties, in U.S. dollars, payable, the exchange rates used and any other information necessary to determine the appropriate amount of royalties due. 
  
 8.2 Exchange Rate; Manner and Place of Payment. All payments hereunder
shall be payable in U.S. dollars. With respect to each quarter, for countries other than the United States, whenever conversion of payments from any foreign currency shall be required, such conversion shall be calculated using the same exchange
rate(s) that the payor uses for its own U.S. dollar financial statement reporting purposes prepared in accordance with GAAP. All payments owed under this Agreement shall be made by wire transfer to a bank and account designated in writing by the
payee, unless otherwise specified by such payee. 
  
 8.3 Late
Payments. In the event that any payment, including royalty, milestone and research payments, due hereunder is not made when due, the payment shall accrue interest from the date due at the rate of
[···***···]; provided, however, that in no event shall such rate exceed the maximum legal annual interest rate, The payment of such interest shall not limit a party from exercising any other rights it
may have as a consequence of the lateness of any payment. 
  
 8.4
Records and Audits. During the Royalty Term and for a period of [···***···] thereafter, each party shall keep complete and accurate records pertaining to the development and sale or other
disposition of Allergan Products or ACADIA Products, in sufficient detail to permit the other party to confirm the accuracy of all payments due hereunder. Each party shall have the right to cause an independent, certified public accountant
reasonably acceptable to the other to audit such records to confirm Net Sales and royalty and other payments for a period covering not more than the preceding [···***···]. Such audits may be exercised
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normal business hours [···***···] upon at least [···***···]
prior written notice to the other party. Prompt adjustments shall be made by the parties to reflect the results of such audit. The party causing such audit shall bear the full cost of such audit unless such audit discloses an underpayment of more
than [···***···] from the amount of royalties or other payments due under this Agreement. In such case, the audited party shall bear the full cost of such audit. 
  
 8.5 Withholding of Taxes. Any withholding of taxes levied by tax
authorities outside the United States on the payments hereunder shall be borne by the party receiving such payment and deducted by the party making such payment from the sums otherwise payable by it hereunder for payment to the proper tax
authorities. The parties agree to cooperate with each other, in the event a party claims exemption from such withholding or seeks deductions under any double taxation or other similar treaty or agreement from time to time in force, such cooperation
to consist of providing receipts of payment of such withheld tax or other documents reasonably available. 
  
 8.6 Exchange and Royalty Rate Controls. If at any time legal restrictions prevent the prompt remittance of part or all royalties with respect to
any country where any Allergan Product or ACADIA Product is sold, payment shall be made through such lawful means or methods as the party making such payment may determine. When in any country the law or regulations prohibit both the transmittal and
deposit of royalties on sales in such a country, royalty payments shall be suspended for as long as such prohibition is in effect, and as soon as such prohibition ceases to be in effect, all royalties that would have been obligated to be transmitted
or deposited, but for the prohibition, shall forthwith be deposited or transmitted promptly to the extent allowable, as the case may be. If any royalty rate specified in this Agreement should exceed the permissible rate established in any country,
the royalty rate for sales in such country shall be adjusted to the highest legally permissible or government-approved rate. 
  
 9. Intellectual Property. 
  
 9.1 Ownership of Technology. Inventorship with respect to inventions made pursuant to work carried out under the Collaboration shall be determined
in accordance with United States rules of inventorship. Except as provided below, each party shall own solely all inventions made solely by its employees and agents, and the parties shall own jointly all inventions jointly made hereunder.

  
 9.2 Patent Prosecution. It is the intention of the
parties to secure broad patent protection for discoveries and inventions made in connection with the Collaboration. Allergan shall be responsible for the filing, prosecution and maintenance at Allergan’s sole cost of all Allergan Patents, and
all Collaboration Patents or ACADIA Patents to the extent the claims filed in the Collaboration Patents or ACADIA Patents are limited to the Field or Collaboration Lead Compounds. Except for those patents or patent applications described above,
ACADIA shall be responsible for the filing, prosecution and maintenance of all ACADIA Patents and all Collaboration Patents. Allergan shall reimburse ACADIA for [···***···] of all reasonable out of
pocket legal expenses incurred by ACADIA that are associated with the filing and prosecuting of (i) all Collaboration Patent(s) and (ii) any ACADIA Patents having claims covering [···***···]
Muscarinics that are useful in the Field. In the event that ACADIA elects to  

  

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assign, including an assignment pursuant to the provisions of Section 15.7, its right to file, prosecute and maintain Collaboration Patents or ACADIA Patents
having claims covering Collaboration Lead Compounds or their use thereof in the Field, then Allergan may, except in the case of an assignment by ACADIA to any Affiliate, to a special purpose corporation or similar entity which assignment is
permitted under Section 15.7, assume responsibility for the filing, prosecution and maintenance of such Collaboration Patents and/or ACADIA Patents at Allergan’s own expense, provided, however, that if Allergan’s assumption of such
responsibilities would impair a transaction permitted under Section 15.7 then Allergan shall negotiate in good faith to remedy such impairment. Each party shall consider in good faith the requests and suggestions of the other party with respect to
strategies for filing and prosecuting patent applications, and, in particular, ACADIA agrees that, at Allergan’s request, and to the extent practicable and that such activities do not materially diminish ACADIA’s overall patent estate,
patent applications for Collaboration Patents or ACADIA Patents will be filed with claims limited to the Field or Collaboration Lead Compounds, provided however, that in the event that Allergan designates a Collaboration Lead Compound and provides
notice to ACADIA that Allergan desires to file a patent application for Collaboration Patents or ACADIA Patents covering such Collaboration Lead Compound, Allergan shall not make such filing for a period of
[···***···] following such notice to ACADIA, without prior written consent by ACADIA. Each party shall keep the other party informed of progress with regard to the filing, prosecution and maintenance
of patent applications and patents subject to this Section 9.2. In the event a party is responsible for the filing, prosecution and maintenance of patent applications or patents hereunder, and elects, other than as provided above, not to do so, it
shall inform the other party at least [···***···] before any relevant deadline for filing or other action and transmit all information reasonable and appropriate relating to such patent or patent
application, and such other party shall then have the right to file, prosecute and maintain such patent applications and patents at its own expense, in which case the party declining to continue such patent applications and patents shall assign its
rights in such patent applications and patents to the other party.  
  
 9.3 Cooperation of the Parties. Each party agrees to cooperate fully in the preparation, filing, and prosecution of any patent rights under this Agreement. Such cooperation includes, but is not limited to:

  
 (a) executing all papers and instruments, or requiring its
employees or agents, to execute such papers and instruments, so as to effectuate the ownership of patent rights set forth in Section 9.1 above and to enable the other party to apply for and to prosecute patent applications in any country; and

  
 (b) promptly informing the other party of any matters coming
to such party’s attention that may affect the preparation, filing, or prosecution of any such patent applications. 
  
 9.4 Infringement by Third Parties. ACADIA and Allergan shall promptly notify the other in writing of any alleged or threatened infringement of any
patent included in the Allergan Patents, ACADIA Patents or Collaboration Patents of which they become aware. Both parties shall use their best efforts in cooperating with each other to terminate such infringement without litigation with each party
being responsible for its own out-of-pocket costs, including legal costs. In the event any alleged or threatened infringement by a Third Party in the Field cannot be terminated without litigation, Allergan shall have the first right, but not the
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and control any action or proceeding with respect to infringement of a patent included in the Allergan Patents or Collaboration Patents and ACADIA Patents
having claims limited to the Field or Collaboration Lead Compounds, at its own expense and by counsel of its own choice. ACADIA shall have the first right to bring and control any action or proceeding with respect to infringements of a patent in the
ACADIA Patents or Collaboration Patents not referred to in the preceding sentence. The party not bringing the action shall have the right, at its own expense, to be represented in any action involving any patent covering inventions owned jointly by
the parties by counsel of its own choice. If either party fails to bring an action or proceeding with respect to a patent covering inventions licensed hereunder within: (a) [···***···] following the
notice of alleged infringement or (b) [···***···] before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes first, the other
party shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and the party initially declining to bring such action shall have the right, at its own expense, to be represented in any such
action by counsel of its own choice. In the event a party brings an infringement action, the other party shall cooperate fully, including if required to bring such action, the furnishing of a power of attorney. Neither party shall have the right to
settle any patent infringement litigation under this Section 9.4 in a manner that diminishes the rights or interests of the other party without the consent of such other party. Except as otherwise agreed to by the parties as part of a cost sharing
arrangement, any recovery realized as a result of such litigation, after reimbursement of any litigation expenses of Allergan and ACADIA, shall be divided between the parties in accordance with their relative economic interests as directly related
to the royalty payments described in Section 7.4 hereof. 
  
 9.5
Infringement of Third Party Rights. Each party shall promptly notify the other in writing of any allegation by a Third Party that the activity of either of the parties hereunder infringes or may infringe the intellectual property rights of
such Third Party. 
  
 Allergan shall have the first right but not
the obligation to control any defense of any such claim involving alleged infringement of Third Party rights by Allergan’s activities under this Agreement at its own expense and by counsel of its own choice, and ACADIA shall have the right but
not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. If Allergan fails to proceed in a timely fashion with regard to such defense, ACADIA shall have the right but not the obligation to control
any such defense of such claim at its own expense and by counsel of its own choice, and Allergan shall have the right but not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. 
  
 ACADIA shall have the first right but not the obligation to control any
defense of any such claim involving alleged infringement of Third Party rights by ACADIA’s activities under this Agreement at its own expense and by counsel of its own choice, and Allergan shall have the right but not the obligation, at its own
expense, to be represented in any such action by counsel of its own choice. If ACADIA fails to proceed in a timely fashion with regard to such defense, Allergan shall have the right but not the obligation to control any such defense of such claim at
its own expense and by counsel of its own choice, and ACADIA shall have the right but not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. 
  

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 Neither party shall have the right to settle any patent infringement litigation under this Section 9.5 in
a manner that diminishes the rights or interests of the other party without the consent of such party. 
  
 9.6 Trademarks. Allergan and ACADIA shall each obtain, own and enforce its own trademarks with respect to Allergan Products or ACADIA Products that
each commercializes hereunder. 
  
 9.7 Patent Labeling.
Allergan shall mark all Allergan Products or their containers that are manufactured used or sold under the terms of this Agreement in accordance with the appropriate patent markings laws. 
  
 10. Representations and Warranties. 
  
 10.1 Representations and Warranties. Each party represents to the other that as of the Effective Date: 
  
 (a) Corporate Power. It is duly organized and validly existing under
the laws of its state of incorporation or formation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof 
  
 (b) Due Authorization. It is duly authorized to execute and deliver this Agreement and to perform its obligations
hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action. 
  
 (c) Binding Agreement. This Agreement is legally binding upon it, enforceable in accordance with its terms. The execution, delivery and performance
of this Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation of any court, governmental body or
administrative or other agency having jurisdiction over it. 
  
 (d) Grant of Rights; Maintenance of Agreements. It has not, and will not during the term of this Agreement, grant any right to any third party which would conflict with the rights granted to the other party hereunder. It has (or will
have at the time performance is due) maintained and will maintain and keep in full force and effect all agreements (including license agreements) and filings (including patent filings) necessary to perform its obligations hereunder. 
  
 (e) Validity. It is aware of no action, suit or inquiry or
investigation instituted by or before any court or governmental agency which questions or threatens the validity of this Agreement or of any Allergan Patents and ACADIA Patents. 
  
 10.2 ACADIA Representations and Warranties. ACADIA represents and warrants that as of the Effective Date: 

 
 (a) it is the sole and exclusive owner of the ACADIA Patents and ACADIA
Know-How and has sufficient rights and power to grant the licenses to Allergan which it purports to grant herein, and no such rights granted to Allergan hereunder are licensed by ACADIA from any Third Party; 
  

 -22- 

 (b) the ACADIA Know-How and the ACADIA Patents are free of any encumbrances, liens, judgments and/or
security interests that would affect the exercise by Allergan of its rights in the Field; provided, however, that the Fund for Industrial Growth has a security interest in certain of the ACADIA Technology, and, in ACADIA’s rights under this
Agreement, including any moneys paid to ACADIA under this Agreement, and that, should the Fund for Industrial Growth be assigned or assume ACADIA’s rights under this Agreement pursuant to such security interest rights, Allergan shall make all
payments otherwise due to ACADIA under this Agreement to the Fund for Industrial Growth, in which case this Agreement and all of Allergan’s rights hereunder shall continue without interruption or impairment; 
  
 (c) and to its actual knowledge there are no outstanding and unresolved
claims or accusations that any compounds or products manufactured, used or sold by ACADIA and licensed hereunder or any methods or process practiced by ACADIA infringe or may infringe any Third Party patent(s) or other intellectual property rights
and it has disclosed to Allergan any Third Party patent(s) which it is aware that might be infringed by the manufacture, use or sale of Allergan Products or the practice of any methods or processes covered by the ACADIA Patents or included in the
ACADIA Know-How by Allergan its Affiliates or sublicensees; 
  
 (d) all patents and patent applications included in the ACADIA Patents are valid and in full force and effect, and are not the current subject of any interference or opposition proceeding; and 
  
 (e) and to its actual knowledge it is unaware of any publications or
activities including without limitation, patents, articles and public uses or sales, by it or others which would or might invalidate any claim(s) of any patent or patent application included in the ACADIA Patents. 
  
 (f) it has not conducted, nor has it commissioned the conducting of, any
formal or informal infringement or validity studies regarding any patent or patent application included in the ACADIA Patents listed on Exhibit C that it has not disclosed in writing to Allergan prior to the Effective Date. 
  
 10.3 Allergan Representations and Warranties. Allergan represents and
warrants that as of the Effective Date: 
  
 (a) Allergan owns the
Allergan Know-How and has sufficient rights and power to grant the licenses to ACADIA which it purports to grant herein; and 
  
 (b) and to its actual knowledge there are no outstanding and unresolved claims or accusations that any methods or process practiced by Allergan as part of
the Allergan Know-How infringe or may infringe any third party patent(s). 
  
 10.4 Disclaimer Concerning Technology. EXCEPT AS SPECIFICALLY SET FORTH HEREIN, THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS PROVIDED BY EACH PARTY HEREUNDER IS PROVIDED “AS IS” AND EACH PARTY
EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD
PARTIES, OR ARISING FROM 

  

 -23- 

 
A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH RESPECT THERETO. Without limiting the generality of the foregoing, each party expressly does
not warrant (a) the success of any study or test commenced under the Collaboration or (b) the safety or usefulness for any purpose of the technology it provides hereunder. 
  
 11. Confidentiality; Publication. 
  
 11.1 Confidentiality. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by
the parties, the parties agree that, hereinafter and until the [···***···] anniversary of the completion of the Royalty Term, the receiving party shall keep confidential and shall not publish or
otherwise disclose and shall not use for any purpose other than as expressly provided for in this Agreement any Confidential Information furnished to it by the other party pursuant to this Agreement. Each party may use such Confidential Information
only to the extent required to accomplish the purposes of this Agreement. Each party will use at least the same standard of care as it uses to protect proprietary or confidential information of its own to ensure that its employees, agents,
consultants and other representatives do not disclose or make any unauthorized use of the Confidential Information. Each party will promptly notify the other upon discovery of any unauthorized use or disclosure of the Confidential Information.

  
 11.2 Exceptions. Confidential Information shall not
include any information which the receiving party can prove by competent evidence: 
  
 (a) is now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known or available; 
  
 (b) is known by the receiving party at the time of receiving such information, as evidenced by its records; 
  
 (c) is hereafter furnished to the receiving party by a Third Party, as a
matter of right and without restriction on disclosure; 
  
 (d) is
independently developed by the receiving party without the aid, application or use of Confidential Information of the disclosing party; or 
  
 (e) is the subject of a written permission to disclose provided by the disclosing party. 
  
 11.3 Terms of Agreement. The parties agree that this Agreement and the terms hereof will be considered Confidential
Information of both parties. Notwithstanding the foregoing, either party may disclose such terms as are required to be disclosed under strictures of confidentiality to bona fide potential sublicensees or for fund raising efforts to investors and
potential investors or as otherwise required pursuant to applicable law. 
  
 11.4 Authorized Disclosure. Each party may disclose Confidential Information belonging to the other party to the extent such disclosure is reasonably necessary in the following instances: 
  
 (a) filing or prosecuting patents relating to the Collaboration; 

 

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 (b) regulatory filings; 
  
 (c) prosecuting or defending litigation; 
  
 (d) complying with applicable court orders or governmental regulations; 
  
 (e) conducting pre-clinical or clinical trials of Collaboration Lead
Compounds; and 
  
 (f) disclosure to Affiliates, sublicensees,
employees, consultants, agents or other Third Parties in connection with due diligence or similar investigations by such Third Parties, in each case who agree to be bound by similar terms of confidentiality and non-use at least equivalent in scope
to those set forth in this Article 11. 
  
 Notwithstanding
the foregoing, in the event a party is required to make a disclosure of the other party’s Confidential Information pursuant to this Section 11.4, it will seek to secure confidential treatment of such information at least as diligently as such
party would use to protect its own confidential information. In addition, ACADIA shall not be entitled to disclose Confidential Information related to Allergan Designated Compounds or Collaboration Lead Compounds to Third Parties, without the prior
written approval of Allergan, such approval not to be unreasonably withheld; however, ACADIA shall be entitled to disclose all data and information related to that certain compound covered under the Confidential Disclosure Agreement dated March 1,
1998 described in Section 3.2. The parties will consult with each other on the provisions of this Agreement to be redacted in any filings made by the parties with the Securities and Exchange Commission or as otherwise required by law. 
  
 Nothing in this Agreement shall prevent ACADIA from disclosing Confidential
Information on [···***···] Muscarinics (but not Allergan Designated Compounds, Allergan Pool Compounds or Collaboration Lead Compounds) to any Third Party with which ACADIA has entered into an
agreement for [···***···] muscarinics outside the Field. 
  
 11.5 Publications. Each party to this Agreement recognizes that the publication of papers regarding results of and other information regarding the
Collaboration, including oral presentations and abstracts, may be beneficial to both parties provided such publications are subject to reasonable controls to protect Confidential Information. Accordingly, each party shall have the right to review
and approve any paper proposed for publication by the other party, including oral presentations and abstracts, which utilizes data generated from the Collaboration and/or includes Confidential Information of the other party. Before any such paper is
submitted for publication, the party proposing publication shall deliver a complete copy to the other party at least [···***···] prior to submitting the paper to a publisher. Such other party shall
review any such paper and give its comments to the publishing party within [···***···] of its receipt of such paper. With respect to oral presentation materials and abstracts, the reviewing party
shall make reasonable efforts to expedite review of such materials and abstracts, and shall return such items as soon as practicable to the publishing party with appropriate comments, if any, but in no event later than
[···***···] from the date of receipt by the reviewing party. The publishing party shall comply with the reviewing party’s request to delete references to the other party’s Confidential
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same for an additional [···***···] in order to permit the parties to obtain patent protection, if either of
the parties deems it necessary, in accordance with the terms of this Agreement. 
  
 12. Term and Termination. 
  
 12.1 Term of the Agreement. The term of the collaborative activities of the parties pursuant to the Research Program shall commence on the Effective Date and continue until expiration of the Research Term, unless earlier terminated
pursuant to Section 12.2, 12.3 or 12.4, or extended by mutual agreement of the parties. The term of this Agreement (the “Term of the Agreement”) shall commence on the Effective Date and continue until six (6) months after the expiration of
the last Royalty Term for any Allergan Product or ACADIA Product, unless earlier terminated pursuant to Section 12.2, 12.3 or 12.4 or extended upon terms mutually agreeable to both parties. Notwithstanding the foregoing, this Agreement will expire
upon the [···***···] anniversary of the expiration of the Research Term if Allergan has not designated a Collaboration Lead Compound. 
  
 12.2 Termination by Mutual Agreement. The parties may at any time
terminate this Agreement by written agreement executed by both Allergan and ACADIA. 
  
 12.3 Termination by Allergan. Allergan may terminate this Agreement by giving ninety (90) days prior written notice to ACADIA, but in no event may Allergan terminate this Agreement pursuant to this Section 12.3
prior to the first anniversary of the Effective Date hereof. 
  
 12.4 Termination for Cause. Each party shall have the right to terminate this Agreement upon sixty (60) days’ prior written notice to the other upon the occurrence of any of the following: 
  
 (a) Upon or after the bankruptcy, insolvency, dissolution or winding up of
the other party (other than a dissolution or winding up for the purpose of reconstruction or amalgamation); or 
  
 (b) Upon or after the breach of any material provision of this Agreement by the other party if the breaching party has not cured such breach within the
sixty (60) day period following written notice of termination by the non-breaching party. 
  
 All licenses granted to the non-breaching party under Sections 6.1 and 6.2 of this Agreement shall survive such termination for so long as such non-breaching party is not in breach of its obligations to the other
party under this Agreement. 
  
 12.5 Accrued Rights, Surviving
Obligations. 
  
 (a) Expiration or termination of this
Agreement shall not affect any rights or obligations of either party accruing prior to such expiration or termination. The terms of this Section 12.5 and Sections 7.4, 8, 9.1, 9.3, 10, 11.1, 11.2, 11.3, 11.4, 12.4, 13, 14 and 15 (except for Section
15.7) of this Agreement shall survive expiration or termination of this Agreement. Promptly after termination of this Agreement each party (other than a non-breaching party that retains a license as described in Section 12.4) shall return or dispose
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how of the other in the accordance with the instructions of the other, including without limitation any compounds, assays or other biological or chemical
materials. 
  
 (b) Upon termination of the Agreement by Allergan
for any reason, other than breach by ACADIA, all rights to [···***···] Muscarinics hereunder will revert to ACADIA and Allergan will release ACADIA from ACADIA’s ophthalmology exclusivity
requirement pursuant to the September 24, 1997 Collaboration Agreement as it relates to ACADIA’s right to make, have made, use and sell products that act by means of the [···***···] muscarinic
receptor in the Field itself or with a Third Party. Thereafter, Allergan will grant ACADIA a royalty-free right under the Allergan Technology and Allergan’s interest in the Collaboration Technology to make, have made, use and sell jointly owned
compounds developed during the Collaboration that act at the [···***···] muscarinic receptor, including, but not limited to Active Compounds, Allergan Designated Compounds and Collaboration Lead
Compounds in or outside of the Field itself or with a Third Party of ACADIA’s sole choice. ACADIA will also have the exclusive, perpetual and royalty-free right to use all data and information generated by Allergan as a result of the
Collaboration that is related to the [···***···] muscarinic receptor or compounds that act at the [···***···] muscarinic receptor (but excluding
proprietary data and information relating to the scale up of the synthesis of Allergan Designated Compounds and Collaboration Lead Compounds), by ACADIA or jointly by Allergan and ACADIA during the term of this Agreement for any purpose.
Notwithstanding the foregoing, in the event that Allergan terminates the Agreement after successfully filing an IND on a Collaboration Lead Compound in a Major Market, ACADIA’s rights upon termination, as set forth above relating to the use of
all data and information generated by Allergan on such Collaboration Lead Compound for use in the Field, shall be royalty-bearing as set forth in Section 7.4(b). 
  
 (c) Upon expiration of this Agreement at or after the end of the Research Term, if Allergan has not selected a Collaboration
Lead Compound, all rights to [···***···] Muscarinics will revert to ACADIA and Allergan will [···***···] as it relates to ACADIA’s right to
[···***···] ACADIA’s products that act by way of the [···***···] muscarinic receptor in the Field itself or with a Third Party. Thereafter,
Allergan will grant ACADIA the right under the Allergan Technology and Allergan’s interest in the Collaboration Technology to make, have made, use and sell jointly owned compounds that act by way of the
[···***···] muscarinic receptor, including, but not limited to, Active Compounds, Allergan Designated Compounds and Collaboration Lead Compounds in the Field itself or with a Third Party of
ACADIA’s sole choice. ACADIA will also have the exclusive and perpetual right to use all data and information generated by Allergan as a result of the Collaboration that is related to the
[···***···] muscarinic receptor or compounds that act at the [···***···] muscarinic receptor (but excluding proprietary data and information relating
to the scale up of the synthesis of Allergan Designated Compounds and Collaboration Lead Compounds), by ACADIA or jointly by Allergan and ACADIA during the Term of the Agreement for any purpose. In consideration for Allergan granting such rights to
ACADIA, ACADIA agrees to pay Allergan a one-time fee in an amount equal to the total amount paid by Allergan to ACADIA for research support (FTE support) during the Research Term provided, however, that such payment shall only be due upon first
Regulatory Approval in a Major Market of an [···***···] Muscarinic in the Field and only if such [···***···] Muscarinic was an Allergan Designated
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generated by Allergan on such Allergan Designated Compound or such Collaboration Lead Compound to obtain such Regulatory Approval. 
  
 (d) Allergan Fully Paid Up License. Upon expiration of the last
Royalty Term for any Allergan Product, Allergan shall have a fully-paid, royalty free, non-exclusive perpetual license to use the ACADIA Know-How to manufacture, use and sell such Allergan Product; provided however, that Allergan shall have no right
to sublicense outside the Field any ACADIA Know-How which is Confidential Information. 
  
 (e) ACADIA Fully Paid Up License. Upon expiration of the last Royalty Term for any ACADIA Product, ACADIA shall have a fully-paid, royalty free, non-exclusive perpetual license to use the Allergan Know-How to
manufacture, use and sell such ACADIA Product; provided however, that ACADIA shall have no right to sublicense any Allergan Know-How which is Confidential Information. 
  
 13. Indemnity. 
  
 13.1 Indemnification. Each party hereby agrees to save, defend and hold the other party and its directors, officers, employees, and agents harmless
from and against any and all claims, suits, actions, demands, liabilities, expenses and/or loss, including reasonable legal expense and attorneys’ fees (collectively, “Claims”) for damage to persons or property resulting directly or
indirectly from actions in connection with the Collaboration by the indemnifying party, its Affiliates, agents or sublicensees, but only to the extent such Claims result from the gross negligence or willful misconduct of the indemnifying party or
its Affiliates, agents or sublicensees and do not result from the negligence of the party seeking indemnification. 
  
 13.2 Control of Defense. Any entity entitled to indemnification under this Section 13 shall give notice to the indemnifying party of any Claims
that may be subject to indemnification, promptly after learning of such Claim, and the indemnifying party shall assume the defense of such Claims with counsel reasonably satisfactory to the indemnified party. If such defense is assumed by the
indemnifying party with counsel so selected, the indemnifying party will not be subject to any liability for any settlement of such Claims made by the indemnified party without its consent (but such consent will not be unreasonably withheld or
delayed), and will not be obligated to pay the fees and expenses of any separate counsel retained by the indemnified party with respect to such Claims. 
  
 13.3 Insurance. Allergan, at its own expense, shall maintain product liability insurance (or self-insure), in amounts consistent with industry
standards for other such pharmaceutical companies during the Term of the Agreement and shall name ACADIA as an additional insured with respect to such insurance. Allergan shall provide a certificate of insurance (or evidence of self-insurance)
evidencing such coverage. 
  
 ACADIA, at its own expense, shall
maintain liability insurance (or self-insure) in amounts consistent with industry standards for other such biotechnology companies during the Term of the Agreement. ACADIA shall provide a certificate of insurance (or evidence of self-insurance)
evidencing such coverage. 
  

 -28- 

 14. Governing Law; Dispute Resolution. 
  
 14.1 Governing Law. This Agreement shall be governed by the laws of
the State of California as such laws are applied to contracts entered into or to be performed entirely within such state. 
  
 14.2 Dispute Resolution. Except as provided in Section 2.6, and except with respect to matters pertaining to injunctive relief, in the event of any
dispute, the parties shall refer such dispute to the Chief Executive Officer of ACADIA and a Senior Executive of Allergan appointed by Allergan’s Chief Executive Officer for attempted resolution by good faith negotiations within
[···***···] after such referral is made. During such period of good faith negotiations, any applicable time periods under this Agreement shall be tolled. In the event such executives are unable to
resolve such dispute within such [···***···] period, the parties shall submit their dispute to binding arbitration before a retired California Superior Court Judge at J.A.M.S./Endispute located in
Orange County, California, such arbitration to be conducted pursuant to the J.A.M.S./Endispute procedure rules for commercial disputes then in effect. The award of the arbitrator shall include an award of reasonable attorneys’ fees and costs to
the prevailing party. 
  
 14.3 Jurisdiction and Venue.
Except as provided in Section 2.7 or 14.3 above, any claim or controversy arising out of or related to this Agreement or any breach hereof (including claims for injunctive relief) shall be adjudicated in the state and federal courts in Orange County
having jurisdiction over disputes arising in the State of California, and the parties hereby consent to the jurisdiction and venue of such courts. 
  
 15. General Provisions. 
  
 15.1 Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be mailed by registered or certified
mail, Federal Express or other nationally recognized overnight delivery service, addressed to the signatory to whom such notice is required or permitted to be given and transmitted by facsimile to the number indicated below. All notices shall be
deemed to have been given when mailed, as evidenced by the postmark at the point of mailing, or faxed. 
  

			
	All notices to Allergan shall be addressed as follows:	  	 Allergan, Inc.
 2525 Dupont Drive
 Irvine, CA 92623
 Attn: President, Research and Development
 Fax: (714) 246-6987

		
	with a copy to:	  	 Allergan, Inc.
 2525 Dupont Drive Irvine, CA
92623
 Attn: Allergan General Counsel
 Fax: (714)
246-4774

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 -29- 

			
	All notices to ACADIA shall be addressed as follows:	  	 ACADIA Pharmaceuticals Inc.
 3911 Sorrento Valley
Blvd.
 San Diego, CA 92121
 Attn: Chief Executive
Officer
 Fax: (619) 558-2872

		
	with a copy to:	  	 Pillsbury Madison & Sutro LLP
 2550 Hanover
Street
 Palo Alto, CA 94304-1115
 Attn: John L.
Donahue
 Fax: (650) 233-4545

  
 Any party may, by
written notice to the other, designate a new address or fax number to which notices to the party giving the notice shall thereafter be mailed or fixed. 
  
 15.2 Force Majeure. No party shall be liable for any delay or failure of performance (other than payment obligations) to the extent such delay or
failure is caused by circumstances beyond its reasonable control and that by the exercise of due diligence it is unable to prevent, provided that the party claiming excuse uses its best efforts to overcome the same. 
  
 15.3 Entirety of Agreement. This Agreement embodies the entire, final
and complete agreement and understanding between the parties and replaces and supersedes all prior discussions and agreements between them with respect to its subject matter, except for the September 24, 1997 Collaboration Agreement and the
Confidential Disclosure Agreement dated as of March 1, 1998, which shall continue in accordance with its terms, except to the extent specifically modified hereby. No modification or waiver of any terms or conditions hereof shall be effective unless
made in writing and signed by a duly authorized officer of each party. 
  
 15.4 Non-Waiver. The failure of a party in any one or more instances to insist upon strict performance of any of the terms and conditions of this Agreement shall not constitute a waiver or relinquishment, to any extent, of the right
to assert or rely upon any such terms or conditions on any future occasion. 
  
 15.5 Disclaimer of Agency. Neither party is, or will be deemed to be, the legal representative or agent of the other, nor shall either party have the right or authority to assume, create, or incur any third
party liability or obligation of any kind, express or implied, against or in the name of or on behalf of another except as expressly set forth in this Agreement. 
  
 15.6 Severability. If a court of competent jurisdiction declares any provision of this Agreement invalid or
unenforceable, or if any government or other agency having jurisdiction over either ACADIA or Allergan deems any provision to be contrary to any laws, then that provision shall be severed and the remainder of the Agreement shall continue in full
force and effect. To the extent possible, the parties shall revise such invalidated provision in a manner that will render such provision valid without impairing the parties’ original intent. 
  
 15.7 Affiliates; Assignment. Except as otherwise provided herein,
neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of 

  

 -30- 

 
the other party, not to be unreasonably withheld. Notwithstanding the foregoing, each party may assign this Agreement to any of its Affiliates, to a special
purpose corporation or similar entity at least fifty percent (50%) of the outstanding shares of any class or series of stock of which is owned by such party in a manner such that the assignor will remain liable and responsible for the performance
and observance of all its duties and obligations hereunder without the consent of the other party. In addition, the consent of the other party will not be required in connection with a merger involving either party or with respect to an assignment
of this Agreement in connection with, as the case may be, the acquisition, sale of all or substantially all of the assets of either party, or a change of control or similar transaction. This Agreement shall be binding upon the successors and
permitted assigns of the parties. Any attempted delegation or assignment not in accordance with this Section 15.7 shall be of no force or effect. Notwithstanding the foregoing provisions of this Section 15.7, or any other provision of this
Agreement, ACADIA may not assign or otherwise transfer its rights hereunder, whether by merger, acquisition, sale of assets, operation of law or otherwise, to Alcon, Bausch & Lomb, Ciba Vision or Santen. 
  
 15.8 Headings. The headings contained in this Agreement are inserted
for reference only and shall not be deemed a part of the text hereof. 
  
 15.9 Limitation of Liability. NO PARTY SHALL BE LIABLE TO ANOTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, ARISING FROM OR RELATING TO ANY BREACH OF THIS
AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. Nothing in this Section is intended to limit or restrict the indemnification rights or obligations of any party. 
  
 15.10 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original
and all of which shall constitute together the same document. 
  
 15.11 Bankruptcy. All rights and licenses granted under this Agreement will be considered for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(56)
of the Bankruptcy Code. The parties agree that a licensee of such rights under this Agreement will retain and may fully exercise all of its rights and elections under the Bankruptcy Code. In the event that a licensor seeks or is involuntarily placed
under the protection of the Bankruptcy Code, and the trustee in bankruptcy rejects this Agreement, the licensee hereby elects, pursuant to Section 365(n), to retain all rights granted to it under this Agreement to the extent permitted by law.

  

 -31- 

 15.12 Public Disclosure. Except for such disclosure as is deemed necessary, in the reasonable
judgment of a party, to comply with applicable laws or regulations, no public announcement, news release, public statement or publication relating to the existence of this Agreement, or the terms hereof, will be made without the other party’s
prior written approval, which approval shall not be unreasonably withheld. The parties agree that they will use reasonable efforts to coordinate the initial announcement or press release relating to the existence of this Agreement in the form
attached as Exhibit E, so that such initial announcement or press release by each is made contemporaneously. 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement. 
  

			
	 ACADIA PHARMACEUTICALS INC.

		
	By	 	 /s/ LEONARD R. BORRMANN

	 	 	

	 	 	 Leonard R. Borrmann, Pharm.D.,
 Chief Executive Officer

	
	 ALLERGAN, INC.

		
	By	 	 /s/ GEORGE LASEZKAY

	 	 	

	 Title
	 	Corporate Vice President, Corporate Development
	
	ALLERGAN PHARMACEUTICALS (IRELAND) LIMITED, INC.
		
	By	 	 /s/ JACQUELINE SCHIAVO

	 	 	

	 Title
	 	 Vice President

	
	ALLERGAN SALES, INC.
		
	By	 	 /s/ GEORGE LASEZKAY

	 	 	

	 Title
	 	 Vice President

  

 -32- 

 EXHIBIT A 
  

Definition of Proof of Concept in Glaucoma Patients 
  

 A-1 

 Proof of Concept in Glaucoma Patients 
  
 Proof of Concept in Glaucoma Patients shall be considered met if [···***···]: 

 
 [···***···] 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 A-2 

 EXHIBIT B 
  

Research Plan 
  

 B-1 

 [···***···] 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 B-2 

 [···***···] 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 B-3 

 EXHIBIT C 
  

ACADIA Patents 
  

											
	[···***···]	 	[···***···]	 	[···***···]	 	[···***···]	 	[···***···]	 	[···***···]

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 C-1 

 EXHIBIT D 
  

Form of Materials Transfer Agreement 
  

 D-1 

 MATERIALS TRANSFER AGREEMENT 
  
 This Agreement is made as of
                    , 199    , by and between ACADIA PHARMACEUTICALS INC., a Delaware corporation (ACADIA)
and Allergan, Inc., a Delaware corporation (“Allergan”). 
  
 [ACADIA/Allergan] (hereinafter, the Recipient”) desires to receive the materials described on Exhibit A attached hereto (the “Materials”) from [Allergan/ACADIA] (hereinafter, the “Provider”)
for the purpose of performing certain studies pursuant to the Collaborative Research Development and License Agreement by and between ACADIA and Allergan dated July _, 1999 (the “Research Agreement”) as described in detail in Exhibit B to
the Research Agreement (the “Project’). 
  
 The
Recipient and the Provider hereby agree as follows: 
  

	1.	Use of Materials. 

  
 The Recipient will utilize its expertise and facilities to undertake the Project and will use the Materials solely for the Project. The Recipient shall
not sell, transfer, disclose or otherwise provide access to the Materials, any method or process relating thereto or any material that could not have been made but for foregoing to any person or entity without the prior written consent of the
Provider, except that the Recipient may allow access to the Materials to its employees or agents or permitted subcontractors for purposes consistent with this Agreement. The Recipient will take reasonable steps to ensure that such employees and
agents or permitted subcontractors will use the materials in a manner that is consistent with the terms of this Agreement. The Recipient will destroy the Materials or otherwise dispose of the Materials as mutually agreed by the Provider and the
Recipient upon expiration or termination of this Agreement. 
  

	2.	Precautions. 

  
 The Recipient understands that the Materials may have unpredictable and unknown biological and/or chemical properties, that they are to be used with
caution, and that they are not to be used for testing in or treatment of humans. The Recipient will use the Materials in compliance with all applicable laws and regulation, including those applicable to research involving recombinant DNA and
isotopes. 
  

	3.	Intellectual Property. 

  
 In performing the Projects, the Recipient may develop ideas, inventions, techniques and other technology and associated intellectual property
(collectively “Inventions”). The parties agree that ownership of all Inventions, including without limitation Inventions relating to the Materials, their preparation or use, shall be governed by the provisions of the Research Agreement
relating to ownership of intellectual property. 
  

 D-2 

	4.	Reports and Publications. 

  
 The Recipient shall keep accurate records of the results of the Project and will promptly and fully disclose to the Provider such results in such manner
and at such time as determined by the Research Management Committee under the Research Agreement. Publication of the Projects results shall be governed by the provisions of the Research Agreement relating to publication. 
  

	5.	Confidentiality. 

  
 The parties agree that the terms of the Research Agreement relating to Confidential Information shall apply to all information that one party receives
from the other party pursuant to this Agreement. 
  

	6.	No License. 

  
 Nothing in this Agreement shall be construed as conferring on either party any implied license or implied option to license any disclosed Confidential
Information, technology, or any patent or patent application owned by the other party. 
  

	7.	Warranty Disclaimer. 

  
 THE MATERIALS ARE SUPPLIED TO THE RECIPIENT WITH NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR THAT THEY ARE FREE FROM THE RIGHTFUL CLAIM OR ANY THIRD PARTY BY WAY OF INFRINGEMENT OR THE LIKE. 
  

	8.	Term and termination. 

  
 This Agreement will be effective as of the date first written above and will continue until the Research Agreement terminates. The parties may terminate
this Agreement prior to such time or extend the term of this Agreement by mutual written agreement as provided herein. Either party will have the right to terminate this Agreement on [···***···]
written notice for material breach of this Agreement, which breach is not cured within such [···***···] period. Promptly upon any termination, the Recipient will deliver to the Provider any remaining
Materials, and any modifications, replications or derivatives thereof and copies of all results of the Projects. Section 3, 4, 5, 6, 7 and 8 will survive the termination or expiration of this Agreement. 
  

	9.	Entire Agreement, Governing Law. 

  
 This Agreement sets forth complete and final agreements of the parties with respect to the subject matter of this Agreement and supersedes all prior
agreements and understandings, written or oral, between the parties hereto which relate to the subject matter of this Agreement, other than the Research Agreement. This Agreement may be amended only by a writing signed by the parties. This Agreement
shall be governed by the laws of the State of California without regard to choice of law provisions. 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 D-3 

 IN WITNESS WHEREOF, the parties have by duly authorized persons, executed this Agreement as of the
date first above written. 
  

									
	 ALLERGAN, INC.
	 	 	 	 ACADIA PHARMACEUTICALS INC.

					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

					
	 Title:
	 	 	 	 	 	 Title:
	 	 
	 	 	
	 	 	 	 	 	

  

 D-4 

 EXHIBIT E 
  

Form of Press Release 
  

 E-1 

					
	For Immediate Release	  	Contacts:	  	ACADIA Pharmaceuticals
	 	  	 	  	Thomas H. Aasen, VP and CFO
	 	  	 	  	(619) 320-8640
	 	  	 	  	Leonard R. Borrmann, Pharm.D., CEO
	 	  	 	  	(619) 320-8614
			
	 	  	 	  	Allergan Investor Relations
	 	  	 	  	Vince Scullin, (714) 246-4636
	 	  	 	  	Allergan Media Relations
	 	  	 	  	Ira Haskell, (714) 246-4515

  
 ACADIA OUT-LICENSES
NOVEL LEAD COMPOUNDS FOR 
 TREATMENT OF GLAUCOMA TO ALLERGAN 
  
 (SAN DIEGO, California, COPENHAGEN, Denmark. and IRVINE, California July 27, 1999)—ACADIA Pharmaceuticals and Allergan (NYSE:
AGN) announced today that they have entered into a license and research collaboration agreement to discover, develop and commercialize compounds for glaucoma, based on ACADIA’s proprietary and highly receptor subtype-selective muscarinic lead
compounds. 
  
 Under the terms of the agreement, ACADIA will grant Allergan
worldwide rights to products based on these novel lead compounds for the treatment of ocular disease. ACADIA will provide its expertise in medicinal chemistry and high-throughput pharmacology to enable the final selection of up to two development
candidates for clinical development and commercialization by Allergan. In exchange, ACADIA may receive up to nearly $19 million for the first development candidate, in the form of up-front fees, research support, and traditional milestone payments.
ACADIA will also receive substantial royalties on future product sales worldwide. Pursuant to the agreement, Allergan also has the right to select a second development candidate, subject to similar milestone and royalty payments to ACADIA.

  

 Discovered in one of ACADIA’s internal drug discovery programs, these new lead compounds are highly selective for a
specific subtype of the muscarinic receptor. Compounds with unprecedented receptor subtype selectivity were initially identified from ACADIA’s diverse chemical library using the Company’s patented Receptor Selection and Amplification
Technology (R-SATTM). ACADIA scientists have
synthesized numerous analogs and performed precise pharmacological analysis using R-SATTM to derive a detailed Structure-Activity Relationship for this family of molecules. Through these efforts, ACADIA has successfully discovered molecules that selectively target the subtype of the muscarinic
receptor responsible for the lowering of intraocular pressure, while avoiding interaction with other receptor subtypes believed to cause side effects commonly associated with certain existing glaucoma therapies. In animal models of glaucoma,
Allergan has shown that ACADIA’s initial chemical lead produces a sustainable reduction of intraocular pressure, when applied topically, without the dose limiting side effects of these traditional anti-glaucoma therapies. 
  
 “ACADIA’s lead compounds provide the potential for an important new breakthrough in
glaucoma therapy,” said David Pyott, Allergan’s President and Chief Executive Officer. “This latest collaboration between Allergan and ACADIA is consistent with Allergan’s objective to continue to expand our growing glaucoma
franchise through the discovery and development of new and complimentary therapeutic approaches to the disorder that have the potential to significantly improve patient care.” 
  
 In addition to this new license and collaboration agreement concerning ACADIA’s muscarinic compounds, ACADIA and Allergan have another
pre-existing collaboration directed at the discovery of other therapeutics for ocular disease. In November 1998, just one year into that collaboration, Allergan nominated a subtype-selective alpha-adrenergic agonist as a clinical candidate for
glaucoma. Alpha-adrenergic agents lower introcular pressure, in part, by decreasing inflow of ocular fluid, while ACADIA’s new receptor-selective muscarinic lead compounds are designed to increase the outflow of fluid from the eye. Both inflow
and outflow agents are used as initial therapy and in combination to lower intraocular pressure associated with glaucoma. 
  

 “Given the outstanding success of our existing discovery collaboration with Allergan, they were the obvious
preferred partner for our internal glaucoma program,” added Leonard R. Borrmann, Pharm.D, ACADIA’s Chief Executive Officer. “The successful discovery of our second clinical lead compound in less than one year further validates
ACADIA’s unique ability to rapidly identify novel receptor-selective compounds with the potential, for improved clinical utility over existing therapies.” 
  
 Forward Looking Statements 
  
 Any of the above statements that refer to Allergan’s estimated or anticipated future results are forward-looking and reflect
Allergan’s current analysis of existing trends and information. Actual results may differ based on a number of factors including timing and uncertainty of the results of both research, and regulatory processes and, including the research,
development, regulatory approval, introduction and consumer acceptance of new products. The reader is cautioned not to rely on these forward-looking statements. Allergan disclaims any intent or obligation to update these statements. Additional
information concerning these factors can be found in press releases as well as in Allergan’s public periodic filings with the Securities and Exchange Commission, including the discussion under the heading “Certain Factors and Trends
Affecting Business” in Allergan’s 1998 Form 10-K. Copies of Allergan press releases and additional information about Allergan are available on the World Wide Web at www.allergan.com, or you can contact the Allergan Investor
Relations Department by calling 714-246-4636. 
  
 ACADIA is a privately held drug
discovery company focused on the identification of novel lead compounds for the treatment of Central Nervous System disorders. ACADIA uses its integrated discovery platform to identify and validate the molecular targets relevant to a disease and to
discover highly selective compounds that specifically regulate these targets. ACADIA has a portfolio of internal drug, discovery programs and is commercializing this pipeline through licensing and discovery collaborations with pharmaceutical
partners. The Company’s corporate headquarters and biological research are located in San Diego, California; chemistry research facilities are located in Copenhagen, Denmark. Additional information can be found on the Company’s website at
www.acadia-pharm.com. 
  

 Allergan, headquartered in Irvine, California, is a technology-driven, global healthcare company, providing eye care and
specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder and dermatological markets that deliver
value to our customers, satisfy unmet medical needs and improve patients’ lives.Collaborative Research, Development and License Agreement, dated March 27, 2003

 Exhibit 10.15 
  

			
	 	 	Certain confidential information contained in this document, marked by brackets and asterisks, has been omitted pursuant to a request for confidential treatment pursuant to 17 C.F.R
§§ 200.80(b)(4) and 200.83 and Rule 406 under the Securities Act of 1933, as amended, and has been filed separately with the Securities and Exchange Commission.

  
 COLLABORATIVE
RESEARCH, DEVELOPMENT 
  
 AND LICENSE AGREEMENT

  
 By and Among 
  
 ACADIA PHARMACEUTICALS INC., 
  
 ALLERGAN, INC. 
  
 and 
  
 ALLERGAN SALES, LLC 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE

			
	 1.
	 	 DEFINITIONS
	  	1
			
	 	 	 1.1 “ACADIA Know-How”
	  	1
			
	 	 	 1.2 “ACADIA Patents”
	  	2
			
	 	 	 1.3 “ACADIA Product”
	  	2
			
	 	 	 1.4 “ACADIA Reversion Product”
	  	2
			
	 	 	 1.5 “ACADIA Royalty-Free Product”
	  	2
			
	 	 	 1.6 “ACADIA Technology”
	  	2
			
	 	 	 1.7 “Active Compound”
	  	2
			
	 	 	 1.8 “Affiliate”
	  	2
			
	 	 	 1.9 “Allergan Know-How”
	  	2
			
	 	 	 1.10 “Allergan Patents”
	  	3
			
	 	 	 1.11 “Allergan Product”
	  	3
			
	 	 	 1.12 “Allergan Technology”
	  	3
			
	 	 	 1.13 “Alpha Adrenergic Research Plan”
	  	3
			
	 	 	 1.14 “Alpha Adrenergic Research Program”
	  	3
			
	 	 	 1.15 “Amendment”
	  	3
			
	 	 	 1.16 “Chemical-Genomics Asset List”
	  	3
			
	 	 	 1.17 “Chemical-Genomics Project”
	  	3
			
	 	 	 1.18 “Chemistry”
	  	3
			
	 	 	 1.19 “Collaboration”
	  	4
			
	 	 	 1.20 “Collaboration Know-How”
	  	4
			
	 	 	 1.21 “Collaboration Patents”
	  	4
			
	 	 	 1.22 “Collaboration Target/Chemistry”
	  	4
			
	 	 	 1.23 “Collaboration Technology”
	  	4
			
	 	 	 1.24 “Confidential Information”
	  	4
			
	 	 	 1.25 “Control”
	  	4
			
	 	 	 1.26 “Designated Target”
	  	4
			
	 	 	 1.27 “Designated Target/Chemistry”
	  	4
			
	 	 	 1.28 “Designated Target Project”
	  	4
			
	 	 	 1.29 “Development Candidate”
	  	5

  

 -i- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	 	 	  	PAGE

			
	 	 	 1.30 “Excluded Targets”
	  	5
			
	 	 	 1.31 “Expanded Field”
	  	5
			
	 	 	 1.32 “Field”
	  	5
			
	 	 	 1.33 “First Commercial Sale”
	  	5
			
	 	 	 1.34 “FDA”
	  	5
			
	 	 	 1.35 “FTE”
	  	5
			
	 	 	 1.36 “Good Laboratory Practices” or “GLP”
	  	6
			
	 	 	 1.37 “Good Manufacturing Practices” or “GMP”
	  	6
			
	 	 	 1.38 “IND”
	  	6
			
	 	 	 1.39 “Joint Research Committee” or “JRC”
	  	6
			
	 	 	 1.40 “Licensed Target/Chemistry”
	  	6
			
	 	 	 1.41 “Major Market”
	  	6
			
	 	 	 1.42 “NDA”
	  	6
			
	 2.
	 	 CONDUCT OF COLLABORATION; RESPONSIBILITIES; EXCLUSIVITY
	  	8
			
	 	 	 2.1 Conduct of Collaboration
	  	8
			
	 	 	 2.2 Research Program Responsibilities
	  	8
			
	 	 	 2.3 Exclusivity of the Research Program
	  	9
			
	 3.
	 	 GOVERNANCE
	  	9
			
	 	 	 3.1 Joint Research Committee
	  	9
			
	 	 	 3.2 Joint Research Committee Functions And Powers
	  	9
			
	 	 	 3.3 Information and Reports
	  	10
			
	 	 	 3.4 JRC Dispute Resolution
	  	10
			
	 4.
	 	 TECHNOLOGY TRANSFER
	  	10
			
	 	 	 4.1 Transfer of ACADIA Technology
	  	10
			
	 	 	 4.2 Transfer of Allergan Technology
	  	11
			
	 5.
	 	DESIGNATION OF SELECTED TARGET/CHEMISTRIES, LICENSED TARGET/CHEMISTRIES, AND DESIGNATED TARGET/CHEMISTRIES	  	11
			
	 	 	 5.1 Designation of Selected Target/Chemistries
	  	11
			
	 	 	 5.2 Allergan Option to License Selected Target/Chemistries
	  	12
			
	 	 	 5.3 Designation of Designated Targets
	  	13

  

 -ii- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 	  	 5.4 Option to License Designated Target/Chemistries
	  	13
			
	 	  	 5.5 Designation of Expanded Field
	  	13
			
	 6.
	  	 PRODUCT DEVELOPMENT, MANUFACTURING AND SUPPLY
	  	14
			
	 	  	 6.1 Research and Development Efforts
	  	14
			
	 	  	 6.2 Development Candidates
	  	14
			
	 	  	 6.3 Manufacture and Supply
	  	14
			
	 7.
	  	 LICENSE GRANTS; DILIGENCE OBLIGATIONS
	  	15
			
	 	  	 7.1 License Grants for Research Program
	  	15
			
	 	  	 7.2 License Grants to Allergan for Development and Commercialization
	  	15
			
	 	  	 7.3 License Grant to ACADIA for Development and Commercialization
	  	15
			
	 	  	 7.4 Sublicensing Rights
	  	16
			
	 	  	 7.5 Diligence Obligations; License for ACADIA Reversion Products
	  	16
			
	 8.
	  	 FEES AND PAYMENTS
	  	16
			
	 	  	 8.1 Access Fee
	  	16
			
	 	  	 8.2 License Fees
	  	17
			
	 	  	 8.3 Expanded Field Fee
	  	17
			
	 	  	 8.4 Research Funding
	  	17
			
	 	  	 8.5 Milestone Payments
	  	18
			
	 	  	 8.6 Royalties
	  	19
			
	 9.
	  	 PAYMENTS; RECORDS; AUDITS
	  	20
			
	 	  	 9.1 Payment; Reports
	  	20
			
	 	  	 9.2 Exchange Rate; Manner and Place of Payment
	  	20
			
	 	  	 9.3 Late Payments
	  	21
			
	 	  	 9.4 Records and Audits
	  	21
			
	 	  	 9.5 Withholding of Taxes
	  	21
			
	 	  	 9.6 Exchange and Royalty Rate Controls
	  	21
			
	 10.
	  	 INTELLECTUAL PROPERTY
	  	21
			
	 	  	 10.1 Ownership of Technology
	  	21
			
	 	  	 10.2 Patent Prosecution
	  	22
			
	 	  	 10.3 Cooperation of the Parties
	  	23

  

 -iii- 

 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 	  	 10.4 Infringement by Third Parties
	  	23
			
	 	  	 10.5 Infringement of Third Party Rights
	  	24
			
	 	  	 10.6 Trademarks
	  	24
			
	 	  	 10.7 Patent Labeling
	  	24
			
	 11.
	  	 REPRESENTATIONS AND WARRANTIES
	  	24
			
	 	  	 11.1 Representations and Warranties
	  	24
			
	 	  	 11.2 ACADIA Representations and Warranties
	  	25
			
	 	  	 11.3 Allergan Representations and Warranties
	  	26
			
	 	  	 11.4 Disclaimer Concerning Technology
	  	26
			
	 12.
	  	 CONFIDENTIALITY; PUBLICATION
	  	26
			
	 	  	 12.1 Confidentiality
	  	26
			
	 	  	 12.2 Exceptions
	  	26
			
	 	  	 12.3 Terms of Agreement
	  	27
			
	 	  	 12.4 Authorized Disclosure
	  	27
			
	 	  	 12.5 Publications
	  	28
			
	 13.
	  	 TERM AND TERMINATION
	  	28
			
	 	  	 13.1 Term of the Agreement
	  	28
			
	 	  	 13.2 Termination by Mutual Agreement
	  	28
			
	 	  	 13.3 Termination by Allergan
	  	28
			
	 	  	 13.4 Termination for Cause
	  	29
			
	 	  	 13.5 Effect of Termination or Expiration; Surviving Obligations
	  	29
			
	 14.
	  	 INDEMNITY
	  	30
			
	 	  	 14.1 Indemnification
	  	30
			
	 	  	 14.2 Control of Defense
	  	31
			
	 	  	 14.3 Insurance
	  	31
			
	 15.
	  	 GOVERNING LAW; DISPUTE RESOLUTION
	  	31
			
	 	  	 15.1 Governing Law
	  	31
			
	 	  	 15.2 Dispute Resolution
	  	31
			
	 	  	 15.3 Jurisdiction and Venue
	  	32
			
	 16.
	  	 GENERAL PROVISIONS
	  	32

  

 -iv- 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE

	 	 	 16.1 Notices
	  	32
			
	 	 	 16.2 Force Majeure
	  	33
			
	 	 	 16.3 Entirety of Agreement
	  	33
			
	 	 	 16.4 Non-Waiver
	  	33
			
	 	 	 16.5 Disclaimer of Agency or Partnership
	  	33
			
	 	 	 16.6 Severability
	  	33
			
	 	 	 16.7 Affiliates; Assignment
	  	33
			
	 	 	 16.8 Headings
	  	34
			
	 	 	 16.9 Limitation of Liability
	  	34
			
	 	 	 16.10 Counterparts
	  	34
			
	 	 	 16.11 Bankruptcy
	  	34
			
	 	 	 16.12 Public Disclosure
	  	34
			
	 	 	 16.13 Export
	  	34
			
	 	 	 16.14 Notice of Board Evaluation of Potential Change in Control
	  	35

  
  

 -v- 

 COLLABORATIVE RESEARCH, DEVELOPMENT 
 AND LICENSE AGREEMENT 
  
 THIS COLLABORATIVE RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT (this
“Agreement”), entered into as of March 27, 2003 (the “Effective Date”) by and among ACADIA PHARMACEUTICALS INC., a Delaware corporation
(“ACADIA”), with offices at 3911 Sorrento Valley Blvd., San Diego, California 92121, and Allergan, Inc., a Delaware corporation, and Allergan Sales, LLC, a Delaware limited liability company (collectively
“Allergan”), both having offices at 2525 Dupont Drive, Irvine, California 92612. 
  
 W I T N E S S E T H: 
  
 WHEREAS, ACADIA possesses proprietary chemical-genomics technologies, including Targets (as defined below) and related chemistries, for use in research, discovery and development of
pharmaceutical products; 
  
 WHEREAS, Allergan is engaged in the research, development, marketing, manufacture and sale of pharmaceutical products; 
  
 WHEREAS, ACADIA, Allergan and Vision Pharmaceuticals L.P. are parties to that certain
Collaborative Research, Development and License Agreement, dated as of September 24, 1997, as amended by the Amendment (as defined below) (the “1997 Agreement”); 
  
 WHEREAS, Allergan desires to have broad access to ACADIA’s chemical-genomics
assets and discovery and development capabilities for purposes of discovering and developing compounds primarily for eye care applications; and 
  
 WHEREAS, ACADIA and Allergan desire to enter into a collaborative relationship for research, discovery and
development activities using ACADIA’s proprietary chemical-genomics technologies and development and commercialization of compounds resulting from such activities primarily for eye care applications. 
  
 NOW, THEREFORE, in
consideration of the foregoing and the covenants and premises contained in this Agreement, the parties agree as follows: 
  
 1. DEFINITIONS. As used herein, the following terms shall have the following meanings: 
  
 1.1 “ACADIA Know-How” shall
mean, to the extent useful for the purposes of the Collaboration or any subsequent commercialization of Allergan Products, all tangible or intangible know-how, trade secrets, inventions, (whether or not patentable), data, preclinical results,
physical, chemical or biological material and other information and data pertaining to any of the Collaboration Target/Chemistries, including any assay developed by ACADIA for a Target within the Collaboration Target/Chemistries, or otherwise
necessary or useful for the practice of the ACADIA Patents which are not generally publicly known and are Controlled by 

  

 1. 

 
ACADIA as of the Effective Date or during the Term, including any replication or any part of such information or material, but excluding any ACADIA Patents
or Collaboration Technology. 
  
 1.2
“ACADIA Patents” shall mean, to the extent useful for the purposes of the Collaboration and any subsequent commercialization of Allergan Products, all foreign and domestic: (a) patents existing as of the Effective Date or
issued during the Term; and (b) patents issuing from patent applications that are pending as of the Effective Date or during the Term (including provisionals, divisionals, continuations and continuations-in-part of such applications); and (c)
substitutions, extensions, reissues, renewals and inventors certificates relating to the foregoing patents, in each case, which pertain to any of the Collaboration Target/Chemistries and are Controlled by ACADIA. ACADIA Patents existing as of the
Effective Date will be listed in Exhibit A within ten (10) days of the Effective Date. 
  
 1.3 “ACADIA Product” shall mean an ACADIA Reversion Product or ACADIA Royalty-Free Product, as applicable.

  
 1.4 “ACADIA Reversion
Product” shall mean any product containing, incorporating, discovered or identified, or the utility of which is discovered or identified, using any Licensed Target/Chemistry, which product receives Regulatory Approval for commercial
marketing and sale for use in the Field and is commercialized by ACADIA, its Affiliates or its sublicensees, including all formulations, line extensions and modes of administration thereof. 
  
 1.5 “ACADIA Royalty-Free Product”
shall mean: (a) any product containing, incorporating or discovered or identified, or the utility of which is discovered or identified, using any Licensed Target/Chemistry, which product receives Regulatory Approval for commercial marketing and
sale for use outside the Field and is commercialized outside the Field by ACADIA or its Affiliates or sublicensees, including all formulations, line extensions and modes of administration thereof; and/or (b) any product containing, incorporating or
discovered or identified or the utility of which is discovered or identified using any Target/Chemistry that was previously a Selected Target/Chemistry, which product receives Regulatory Approval for commercial marketing and sale for use in any
field of use and is commercialized in any field of use by ACADIA or its Affiliates or sublicensees, including all formulations, line extensions and modes of administration thereof. 
  
 1.6 “ACADIA Technology” shall mean the ACADIA Patents and the ACADIA
Know-How. 
  
 1.7 “Active
Compound” shall mean a small molecule that specifically inhibits, stimulates or otherwise alters the production or activity of a Target. 
  
 1.8 “Affiliate” shall mean any company or entity controlled by, controlling, or under common control with a
party hereto and shall include any company or entity of which greater than fifty percent (50%) of the voting stock or participating profit interest of which is owned or controlled, directly or indirectly, by a party, and any company or entity which
owns or controls, directly or indirectly, greater than fifty percent (50%) of the voting stock of a party. 
  
 1.9 “Allergan Know-How” shall mean, to the extent useful for the purposes of the Collaboration or any
subsequent commercialization of ACADIA Products, all tangible or 

  

 2. 

 
intangible know-how, trade secrets, inventions (whether or not patentable), data, preclinical results, physical, chemical or biological material and other
information and data pertaining to any of the Collaboration Target/Chemistries or otherwise necessary or useful for the practice of the Allergan Patents, which are not generally publicly known and are Controlled by Allergan during the Term,
including any replication or any part of such information or material, but excluding any Allergan Patents or Collaboration Technology. 
  
 1.10 “Allergan Patents” shall mean, to the extent useful for the purposes of the Collaboration and any
subsequent commercialization of ACADIA Products, all foreign and domestic: (a) patents issued during the Term; and (b) patents issuing from patent applications that are pending during the Term (including provisionals, divisionals, continuations and
continuations-in-part of such applications); and (c) substitutions, extensions, reissues, renewals and inventors certificates relating to the foregoing patents, in each case, which pertain to any of the Collaboration Target/Chemistries and are
Controlled by Allergan. 
  
 1.11
“Allergan Product” shall mean any product containing or incorporating a Chemistry within a Licensed Target/Chemistry or a Designated Target/Chemistry or discovered or identified, or the utility of which is discovered or
identified, using a Licensed Target/Chemistry or Designated Target/Chemistry, which product receives Regulatory Approval for commercial marketing and sale and is commercialized, including all formulations, line extensions and modes of administration
thereof. 
  
 1.12 “Allergan
Technology” shall mean the Allergan Patents and Allergan Know-How. 
  
 1.13 “Alpha Adrenergic Research Plan” shall mean the plan for conducting research with respect to alpha
adrenergic receptors as currently in effect under the 1997 Agreement as may be updated from time to time by the Joint Research Committee pursuant to Section 3.2. 
  
 1.14 “Alpha Adrenergic Research Program” shall mean the collaborative
research program between the parties with respect to alpha adrenergic receptors conducted under the 1997 Agreement during the Research Term pursuant to the Alpha Adrenergic Research Plan. 
  
 1.15 “Amendment” shall mean
the amendment entered into among ACADIA, Allergan and Vision Pharmaceuticals L.P. regarding the Alpha Adrenergic Research Program. 
  
 1.16 “Chemical-Genomics Asset List” shall mean the list of ACADIA’s chemical-genomics assets,
identifying Targets that are not Excluded Targets, assays and Chemistries as provided to Allergan on a bi-monthly basis pursuant to Section 4.1. 
  
 1.17 “Chemical-Genomics Project” shall mean the program of collaborative research with respect to Selected
Target/Chemistries and Licensed Target/Chemistries conducted during the Research Term pursuant to the Research Plan. 
  
 1.18 “Chemistry” shall mean those Active Compounds identified by or on behalf of ACADIA or Allergan with
respect to a specific Target pursuant to or as a result of the Collaboration. 
  

 3. 

 1.19 “Collaboration” shall mean the programs of
collaborative research and development with respect to Collaboration Target/Chemistries under this Agreement. 
  
 1.20 “Collaboration Know-How” shall mean any and all tangible or intangible know-how, trade secrets,
inventions (whether or not patentable), data, preclinical results, physical, chemical or biological material, and other information and data that are (a) useful for purposes of the Collaboration and/or that relates to any Collaboration
Target/Chemistry (including any Target/Chemistry that was formerly a Selected Target/Chemistry), Allergan Product or ACADIA Product and (b) derived from or developed pursuant to activities undertaken by either party, including their consultants or
collaborators, in the conduct of the Collaboration, including, in each case, any replication or any part of such information or material. 
  
 1.21 “Collaboration Patents” shall mean all foreign and domestic patents (including substitutions,
extensions, reissues, renewals and inventors certificates relating thereto) that issue from patent applications, including provisionals, divisionals, continuations and continuations-in-part of such applications, that claim inventions in the
Collaboration Know-How and that are filed by one or both of the parties on behalf of one or both of the parties hereto. 
  
 1.22 “Collaboration Target/Chemistry” shall mean any Selected Target/Chemistry, Licensed Target/Chemistry
and/or Designated Target/Chemistry, as applicable. 
  
 1.23 “Collaboration Technology” shall mean the Collaboration Patents and the Collaboration Know-How. 
  
 1.24 “Confidential Information” shall mean all information disclosed by a party to the other pursuant to
this Agreement including, without limitation, manufacturing, marketing, financial, personnel, scientific and other business information and plans, and the material terms of this Agreement, whether in oral, written, graphic or electronic form.

  
 1.25 “Control”
shall mean possession of the ability to grant a license or sublicense without violating the terms of any agreement or other arrangement with any Third Party. 
  
 1.26 “Designated Target” shall mean any Target that is a specific G-protein
coupled receptor or nuclear receptor, which is selected by Allergan by written notice to ACADIA pursuant to Section 5.3 and, as of the date of such notice is not listed on the Chemical-Genomics Asset List as having a Chemistry identified with
respect to such Target. 
  
 1.27
“Designated Target/Chemistry” shall mean a Designated Target and/or the Chemistry identified with respect to such Designated Target. 
  
 1.28 “Designated Target Project” shall mean the program of collaborative
research with respect to Designated Targets conducted during the Research Term pursuant to the Research Plan. 
  

 4. 

 1.29 “Development Candidate” shall mean any Active
Compound within a Licensed Target/Chemistry for which GLP research or GMP production has been initiated. 
  
 1.30 “Excluded Targets” shall mean Targets which meet any one of the following criteria as of the
applicable time of determination: (a) the Target has been selected by a Third Party, alone or in conjunction with ACADIA, as a licensed Target for research and development pursuant to a written agreement between ACADIA and such Third Party, which
provides for payments to ACADIA and [...***...]; (b) the Target has been selected by ACADIA as a Target for development by ACADIA as part of an ACADIA internal research program so long as [...***...]; (c) the Target has
become the subject of active negotiations between ACADIA and a Third Party with the objective of entering into an agreement as described in clause (a) above or ACADIA is [...***...] to enter into such negotiations with a Third Party; or
(d) the Target was already being considered by ACADIA for an internal ACADIA research program as evidenced by [...***...]. Notwithstanding the foregoing, a Target shall [...***...]  
  
 1.31 “Expanded Field” shall
mean all fields of use. 
  
 1.32
“Field” shall mean (a) with respect to a Selected Target/Chemistry or Licensed Target/Chemistry, all therapeutic, prophylactic and diagnostic uses related to eye care; provided that, if such Selected
Target/Chemistry or Licensed Target/Chemistry is the one (1) Selected Target/Chemistry or Licensed Target/Chemistry designated pursuant to Section 5.5, “Field” shall mean the Expanded Field, and (b) with respect to
all Designated Target/Chemistries, the Expanded Field. 
  
 1.33 “First Commercial Sale” of an Allergan Product or an ACADIA Product shall mean the first sale for use or consumption of such Allergan Product or ACADIA Reversion Product in a
country after Regulatory Approval has been granted by the governing health regulatory authority of such country. Sale to an Affiliate or sublicensee shall not constitute a First Commercial Sale unless the Affiliate or sublicensee is the end user of
the Allergan Product or ACADIA Reversion Product. 
  
 1.34 “FDA” shall mean the United States Food and Drug Administration or any successor agency thereto having the administrative authority to regulate the marketing of human pharmaceutical products or biological
therapeutic products, delivery systems and devices in the United States of America. 
  
 1.35 “FTE” shall mean full-time equivalent scientific personnel. 
  

 ***Certain confidential 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. 

 1.36 “Good Laboratory Practices” or “GLP”
shall mean current good laboratory practices under FDA rules and regulations. 
  
 1.37 “Good Manufacturing Practices” or “GMP” shall mean current good manufacturing
practices under FDA rules and regulations. 
  
 1.38 “IND” shall mean an Investigational New Drug Application filed with the FDA, or the equivalent application or filing necessary to commence human clinical trials in another country, as applicable.

  
 1.39 “Joint Research
Committee” or “JRC” shall mean the committee formed pursuant to Section 3.1. 
  
 1.40 “Licensed Target/Chemistry” shall mean any Selected Target/Chemistry as to which Allergan has
exercised its Option pursuant to Section 5.2. 
  
 1.41 “Major Market” shall mean the United States of America, Japan, France, Germany, Italy, Spain or the United Kingdom. 
  
 1.42 “NDA” shall mean a New Drug Application, Product License Application or
equivalent application filed with the FDA, or the equivalent community application filed in the European Union, or the equivalent application filed as a national application in Japan, the United Kingdom, France, Germany, Italy or Spain. 

 
 1.43 “Net Sales” with respect to
any Allergan Product or ACADIA Reversion Product for which royalties are payable hereunder means, with respect to a given period of time, gross sales invoiced by Allergan or ACADIA, as applicable, and its Affiliates and sublicensees during such
period, less the following deductions from such gross amounts which are actually incurred, allowed, accrued or specifically allocated: 
  
 (a) credits or allowances actually granted for damaged products, returns or rejections of product, price adjustments and billing
errors; 
  
 (b) governmental and other
rebates (or equivalents thereof) granted to managed health care organizations, pharmacy benefit managers (or equivalents thereof), federal, state/provincial, local and other governments, their agencies and purchasers and reimbursers or to trade
customers; 
  
 (c) normal and customary
trade, and quantity discounts, allowances and credits actually allowed or paid; 
  
 (d) commissions actually paid to Third Party distributors, brokers or agents (excluding sales personnel, sales representatives and
sales agents that are employees or consultants of Allergan or ACADIA, as applicable, or its Affiliates or sublicensees) in countries outside the United States in which such commissions are paid by deducting such commissions from the gross sales
invoiced for sales to such Third Parties; 
  

 6. 

 (e) transportation costs, including insurance, for outbound freight related to
delivery of the product; 
  
 (f) sales
taxes, VAT taxes and other taxes directly linked to the sales of the product; and 
  
 (g) sales between or among Allergan and its Affiliates and sublicensees or ACADIA and its Affiliates and sublicensees shall be
excluded from the computation of Net Sales, but the subsequent final sales to Third Parties by such Affiliates or sublicensees shall be included with Net Sales; provided however, that if such Affiliates or sublicensees are the end users of
such Allergan Product or ACADIA Reversion Product, the amount billed therefore shall be deemed to be the amount that would be invoiced to a Third Party in an arm’s length transaction for the sale of such products. 
  
 In the event an Allergan Product or ACADIA Reversion Product is sold in
combination with one or more other active ingredients (a “Combination”) then Net Sales shall be calculated by multiplying the Net Sales of that Combination by the fraction A/B, where A is the gross selling price of the
Allergan Product or ACADIA Reversion Product sold separately and B is the gross selling price of the Combination. In the event that no such separate sales are made, Net Sales for royalty determination shall be calculated by multiplying Net Sales of
the Combination by the fraction C/(C+D), where C is the fully allocated cost of the Allergan Product or ACADIA Reversion Product and D is the fully allocated cost of the other products in the Combination. 
  
 1.44 “Option” shall have the
meaning set forth in Section 5.2. 
  
 1.45
“Option Period” shall mean the nine (9) month period of time beginning on: (a) with respect to a Selected Target/Chemistry, the date the Chemistry associated with such Selected Target/Chemistry is delivered to
Allergan for testing; and (b) with respect to such Designated Target/Chemistry, the earlier of (i) the date on which [...***...] with respect to a Designated Target for testing (provided that Allergen makes a good faith effort to
complete such synthesis as soon as is practicable) and (ii) the date three (3) months from the date ACADIA determines the [...***...] of a Chemistry with respect to such Designated Target. 
  
 1.46 “Regulatory Approval” shall
mean any and all approvals (including price and reimbursement approvals), licenses, registrations, or authorizations of the United States or European Union or any country, federal, state or local regulatory agency, department, bureau or other
government entity that is necessary for the manufacture, use, storage, import, transport and/or sale of an Allergan Product or an ACADIA Product in such jurisdiction. 
  
 1.47 “Research Plan” shall mean the plan for conducting the Research Program, as
amended from time to time by the JRC. 
  
 1.48
“Research Program” shall mean, collectively, the Designated Target Project and the Chemical-Genomics Project. 
  

 ***Certain confidential 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. 

 1.49 “Research Term” shall mean the three (3) years following the
Effective Date, as may be extended for additional, consecutive one (1) year periods by written agreement of the parties. 
  
 1.50 “Royalty Term” shall mean, in the case of each Allergan Product or ACADIA Reversion Product in any country,
the period of time commencing on the First Commercial Sale and ending upon the later of (a) [...***...] from the date of First Commercial Sale in such country, or (b) the expiration of the last to expire Valid Claim covering such
Allergan Product or ACADIA Reversion Product in such country. 
  
 1.51 “Selected Target/Chemistry” shall mean each of the up to three (3) Target/Chemistries selected from the Chemical-Genomics Asset List at any specific point in time during the Research Term
pursuant to Section 5.1. 
  
 1.52
“Target” shall mean a nucleic acid encoded by a gene locus comprising a nucleotide sequence, including [...***...], and all components related to [...***...], including, without limitation, the
[...***...], such as [...***...]. 
  
 1.53 “Target/Chemistry” shall mean a Target and/or any Chemistry identified with respect to such Target. 
  
 1.54 “Term” shall have the meaning set forth in Section 13.1. 
  
 1.55 “Third Party” shall mean any
entity other than Allergan or ACADIA or an Affiliate of Allergan or ACADIA. 
  
 1.56 “Valid Claim” shall mean a claim of an unexpired patent included within the patent rights licensed hereunder, which has not been held unenforceable, unpatentable or invalid by a decision
of a court or other governmental agency of competent jurisdiction unappealable or unappealed within the time allowed for appeal or which has not been admitted to be invalid or unenforceable through reexamination, reissue, disclaimer, or otherwise.

  

	 	2.	CONDUCT OF COLLABORATION; RESPONSIBILITIES; EXCLUSIVITY. 

  
 2.1 Conduct of Collaboration. During the
Research Term, the parties shall use commercially reasonable efforts to conduct the Research Program in accordance with the Research Plan and the terms of this Agreement. The initial Research Plan for conducting the Research Program will be
completed and approved by the JRC within thirty (30) days of the Effective Date. Any amendments or revisions to the Research Plan shall be in writing and shall require unanimous approval of the JRC. Pursuant to the Research Program, the parties will
collaborate in identifying and testing Collaboration Target/Chemistries for development and commercialization. 
  
 2.2 Research Program Responsibilities. 
  
 (a) ACADIA and Allergan will be responsible for such activities under the Research Plan related to
the Chemical-Genomics Project [...***...] 

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 8. 

 
[...***...] as assigned to each such party by the JRC. 
  

(b) ACADIA will be responsible for high-throughput screening of chemical libraries and determination of potency and selectivity
of hits in the Designated Target Project pursuant to the Research Plan, and Allergan will be responsible for all other activities under the Research Plan related to the Designated Target Project. 
  
 (c) Each of ACADIA and Allergan will provide to the
JRC quarterly reports setting forth such party’s results and plans under the Research Program. 
  
 2.3 Exclusivity of the Research Program. During the Research Term, the Research Program shall be ACADIA’s exclusive
means of collaborating and/or conducting research and development on Collaboration Target/Chemistries in the Field. During the Research Term, ACADIA shall be free to conduct research and development activities, on its own or together with
Third Parties, on (a) all Target/Chemistries identified by ACADIA other than Collaboration Target/Chemistries including, without limitation, those former Selected Target/Chemistries which have been replaced by new Selected
Target/Chemistries pursuant to Section 4.1 or which were not designated as Licensed Target/Chemistries by Allergan pursuant to Section 4.2, and (b) all Collaboration Target/Chemistries outside the Field, if applicable. During the Research
Term, the Research Program shall be Allergan’s exclusive means of collaborating and/or conducting research on Licensed Target/Chemistries and Selected Target/Chemistries. 
  

	 	3.	GOVERNANCE. 

  
 3.1 Joint Research Committee. Promptly after the Effective Date, the parties will form a Joint Research Committee
(“JRC”) comprised of three (3) representatives of each of ACADIA and Allergan. One (1) member of the JRC shall be selected to act as the chairperson of the JRC, with each chairperson acting for a term of twelve (12) months.
The chairperson shall be selected alternately by Allergan and ACADIA, and ACADIA shall designate the first chairperson. The JRC shall determine the specific goals for the Collaboration and the Alpha Adrenergic Research Program, shall manage the
ongoing research conducted under the Collaboration and the Alpha Adrenergic Research Program, and shall monitor the progress and results of such work. All decisions of the JRC shall require unanimous approval. The JRC shall meet on a quarterly basis
or at such other frequency as the JRC agrees. The parties shall agree upon the time and place of meetings. Within thirty (30) days after each meeting, the JRC chairperson will provide the parties with a written report describing, in reasonable
detail, the status of the Collaboration and the Alpha Adrenergic Research Program, a summary of the results and progress to date, the issues requiring resolution, and the agreed resolution of previously reported issues. A reasonable number of
additional representatives of a party may attend meetings of the JRC in a non-voting capacity. 
  
 3.2 Joint Research Committee Functions And Powers. The JRC shall encourage and facilitate ongoing cooperation between the
parties, establish, update, review and approve the Research Plan and the Alpha Adrenergic Research Plan and any amendments to such plans, allocate tasks and coordinate activities pursuant to the Research Plan and the Alpha 

  

 ***Certain confidential 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. 

 
Adrenergic Research Plan, monitor progress of activities under the Research Plan and the Alpha Adrenergic Research Plan and the parties’ diligence in
carrying out their responsibilities thereunder, oversee the conduct of all patent matters, and carry out the other duties and responsibilities described for it in this Agreement. The parties will discuss proposed patent applications for inventions
discovered in the course of the Collaboration and the Alpha Adrenergic Research Program and publication of matters arising under the Collaboration and the Alpha Adrenergic Research Program at JRC meetings. The JRC shall also be responsible for
establishing and approving annual research funding for activities to be performed by the parties pursuant to the Research Plan and the Alpha Adrenergic Research Plan for each year of the Research Term (including any renewal or extension thereof),
subject to the minimum funding levels provided in Section 8.4 and the additional funding required under Section 8.2(a), if applicable. Such funding shall be provided by Allergan to ACADIA based on the number of FTEs required for ACADIA to perform
its activities under the Research Plan and the Alpha Adrenergic Research Plan. The JRC shall also maintain and update a list of the Selected Target/Chemistries, Licensed Target/Chemistries and Designated Target/Chemistries as in effect from time to
time. 
  
 3.3 Information and
Reports. Except as otherwise provided in this Agreement, the parties will make available and disclose to one another all results of the work conducted pursuant to the Research Plan and the Alpha Adrenergic Research Plan prior to and in
preparation for JRC meetings, in the form and format to be designated by the JRC. For purposes of clarification, Allergan will not be obligated to share pursuant to this Section 3 structure activity relationship information or other data which is
not specifically necessary to share in order to achieve the goals of the Research Plan, unless otherwise agreed to by the parties as part of a further collaborative relationship pursuant to Section 5.2(a)(ii). 
  
 3.4 JRC Dispute Resolution. If the JRC is
unable to decide or resolve an issue unanimously, the issue shall be referred to the Chief Scientific Officer of ACADIA and the President, Research and Development of Allergan. Such officers of the parties will meet promptly thereafter and shall
negotiate in good faith to resolve such issue. If they cannot resolve the issue within thirty (30) days of commencing such negotiations then the issue shall be resolved as provided in Section 15.2. 
  

	 	4.	TECHNOLOGY TRANSFER. 

  
 4.1 Transfer of ACADIA Technology. Promptly following the Effective Date and thereafter on a bi-monthly basis during the
Research Term, ACADIA will provide to Allergan the then current Chemical-Genomics Asset List. Commencing promptly after the Effective Date and from time to time thereafter, ACADIA will disclose to Allergan such of the ACADIA Technology and relevant
information with respect to Collaboration Target/Chemistries as is reasonably necessary to enable Allergan to perform its Collaboration activities hereunder in accordance with the Research Plan and otherwise to exercise fully the licenses granted to
Allergan hereunder. During the Term, ACADIA will provide Allergan with reasonable technical assistance relating to the use of such ACADIA Know-How and the practice of such ACADIA Patents solely to the extent permitted under the licenses granted to
Allergan herein. In the event that ACADIA provides any materials to Allergan pursuant to the Research Plan, the parties will 

  

 10. 

 
enter into a Materials Transfer Agreement in the form attached hereto as Exhibit B with respect to such materials. 
  
 4.2 Transfer of Allergan Technology.
Commencing promptly after the Effective Date and from time to time thereafter, Allergan will disclose to ACADIA such of the Allergan Technology as is reasonably necessary to enable ACADIA to perform its Collaboration activities hereunder in
accordance with the Research Plan and otherwise to exercise fully the licenses granted to ACADIA hereunder. During the Term, Allergan will provide ACADIA with reasonable technical assistance relating to the use of such Allergan Know-How and the
practice of such Allergan Patents solely to the extent permitted under the license granted to ACADIA herein. In the event that Allergan provides any materials to ACADIA pursuant to the Research Plan, the parties will enter into a Materials Transfer
Agreement in the form attached hereto as Exhibit B with respect to such materials. 
  

	 	5.	DESIGNATION OF SELECTED TARGET/CHEMISTRIES, LICENSED
TARGET/CHEMISTRIES, AND DESIGNATED TARGET/CHEMISTRIES. 

  
 5.1 Designation of Selected Target/Chemistries. 
  
 (a) Upon the Effective Date, the parties shall agree
in writing to the selection of up to three (3) Target/Chemistries on the Chemical-Genomics Asset List as Selected Target/Chemistries. At any time during the Research Term, Allergan may, by prior written notice to ACADIA and the JRC, propose that one
(1) or more of the Selected Target/Chemistries be replaced with an alternative Target/Chemistry from the Chemical-Genomics Asset List or that a Target/Chemistry from the Chemical-Genomics Asset List be added as a Selected Target/Chemistry;
provided however, that at no time shall there be more than a total of three (3) Selected Target/Chemistries. ACADIA will notify Allergan within ten (10) days after receipt of such proposal if the proposed Selected Target/Chemistry has become
an Excluded Target since Allergan’s receipt of the most current Chemical-Genomics Asset List and is therefore not available for selection, including the reason for such determination. When a Target/Chemistry becomes a Selected Target/Chemistry
in accordance with this Section 5.1, it shall be added to the list of Selected Target/Chemistries maintained by the JRC, and, if applicable, the Selected Target/Chemistry that Allergan has elected to replace with such new Selected Target/Chemistry
shall thereupon cease to be a Selected Target/Chemistry for all purposes under this Agreement and shall be deleted from the list of Selected Target/Chemistries maintained by the JRC. As soon as practicable after designation of a Target/Chemistry as
a Selected Target/Chemistry, ACADIA shall deliver to Allergan the quantity of the Chemistry associated with such Selected Target/Chemistry specified by the JRC. 
  
 (b) In the event that Allergan designates a Selected Target/Chemistry pursuant to this Section 5.1,
conducts tests [...***...] within such Selected Target/Chemistry and determines that the Chemistry included in such Selected Target/Chemistry does not apply [...***...], then Allergan may continue to test such Selected
Target/Chemistry to determine whether to [...***...], replace such Selected Target/Chemistry in accordance with the procedures set forth in Section 5.1(a), or redesignate such [...***...] within such Selected
Target/Chemistry as a Designated Target in accordance with Section 5.3. If Allergan 

  

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 11. 

 
redesignates such [...***...] within such Selected Target/Chemistry as a Designated Target, (i) such Target/Chemistry shall cease to be a
Selected Target/Chemistry for all purposes under this Agreement and shall be deleted from the list of Selected Target/Chemistries maintained by the JRC, (ii) all rights to such former Selected Target/Chemistry and to all ACADIA Technology and
ACADIA’s interest in Collaboration Technology with respect to such former Selected Target/Chemistry shall revert to ACADIA, except to the extent of rights granted with respect to such [...***...] within such Selected
Target/Chemistry as a Designated Target in accordance with this Agreement, and (iii) Allergan shall grant ACADIA the license set forth in Section 7.3(b) with respect to such former Selected Target/Chemistry, excluding such [...***...]
within such former Selected Target/Chemistry. 
  
 5.2 Allergan Option to License Selected Target/Chemistries. During the Research Term, Allergan shall have the right to designate up to three (3) Selected Target/Chemistries as Licensed Target/Chemistries as set forth below:

  
 (a) At any time during the Option
Period for a given Selected Target/Chemistry, Allergan shall have the exclusive option to designate such Selected Target/Chemistry as a Licensed Target/Chemistry and obtain a license to such Licensed Target/Chemistry under Section 7.2(a) (the
“Option”) by providing written notice of the exercise of such Option to ACADIA and the JRC. If the Field for such Licensed Target/Chemistry is not the Expanded Field, in such notice, Allergan shall inform ACADIA whether (i)
it elects to have ACADIA conduct research and development with respect to such Licensed Target/Chemistry for a period of only one (1) year in which case ACADIA activities shall be limited to profiling of hits and Active Compounds for which
Allergan will not disclose to ACADIA the structures (not to include synthetic analogs), analytical chemistry, carrying out assays and small scale synthesis, or (ii) it desires to enter into a further collaborative relationship with ACADIA with
regard to such Licensed Target/Chemistry using a research plan to be agreed by the parties. The parties would negotiate in good faith the terms of such further collaborative relationship including, without limitation, mechanics for dividing Active
Compounds within such Licensed Target/Chemistry between Allergan and ACADIA for development in the Field and outside the Field respectively (with Allergan having the first right to select an Active Compound for development, which Allergan selected
Active Compound would not be developed by ACADIA), intellectual property ownership treatment, expanded mutual exchange of information, additional reporting requirements, and milestone and royalty payments to be made by ACADIA to Allergan on Active
Compounds with respect to such Licensed Target/Chemistry developed by ACADIA outside the Field; provided however, that the parties shall conduct research and development activities pursuant to Section 5.2(a)(i) while they negotiate any such
further collaborative relationship. If the Field for such Licensed Target/Chemistry is the Expanded Field, in such notice, Allergan shall inform ACADIA whether it desires to enter into a further collaborative relationship with ACADIA with regard to
such Licensed Target/Chemistry, and the JRC shall determine the terms of the research plan regarding such further collaborative relationship. Upon any exercise by Allergan of the Option with respect to a Selected Target/Chemistry, such Selected
Target/Chemistry shall be deleted from the list of Selected Target/Chemistries maintained by the JRC and added to the list of Licensed Target/Chemistries maintained by the JRC. 
  

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 (b) If Allergan does not exercise its Option with respect to a Selected
Target/Chemistry within the Option Period, then, upon expiration of such Option Period, (i) the Target/Chemistry shall cease to be a Selected Target/Chemistry for all purposes under this Agreement and shall be deleted from the list of Selected
Target/Chemistries maintained by the JRC, (ii) all rights to such former Selected Target/Chemistry and to all ACADIA Technology and ACADIA’s interest in Collaboration Technology with respect to such former Selected Target/Chemistry shall revert
to ACADIA, and (iii) Allergan shall grant ACADIA the license set forth in Section 7.3(b) with respect to such Selected Target/Chemistry. 
  
 5.3 Designation of Designated Targets. At any time during the Research Term, Allergan may propose the designation of up to
[...***...] Designated Targets for development by prior written notice to ACADIA and the JRC; provided however, that Allergan shall not designate [...***...] Designated Targets within [...***...] period
during the Research Term. After receipt of such proposal, ACADIA will promptly notify Allergan if the proposed Selected Target/Chemistry is an Excluded Target. The Designated Target shall be added to the list of Designated Target/Chemistries
maintained by the JRC. ACADIA will enable the Designated Target, if necessary, and conduct high-throughput screening of libraries as determined by the JRC to identify Chemistries with respect to such Designated Target. 
  
 5.4 Option to License Designated
Target/Chemistries.  
  
 (a) At any
time during the Option Period for a given Designated Target/Chemistry, Allergan shall have the exclusive option to obtain a license with respect to the Designated Target/Chemistry under Section 7.2(b) by providing written notice to ACADIA and the
JRC of the exercise of such option. 
  
 (b)
If Allergan does not exercise such option with respect to a Designated Target/Chemistry during the Option Period, then, upon expiration of such Option Period, (i) such Target/Chemistry shall cease to be a Designated Target/Chemistry for all
purposes under this Agreement and shall be deleted from the list of Designated Targets maintained by the JRC and (ii) all rights to the Chemistry identified by ACADIA with respect to such Designated Target/Chemistry and to all ACADIA Technology and
ACADIA’s interest in Collaboration Technology with respect to such Designated Target/Chemistry shall revert to ACADIA. 
  
 (c) All Allergan rights to the Designated Target existing upon the expiration of such Option Period in accordance with Section
5.4(b) shall remain with Allergan. 
  
 5.5 Designation of Expanded Field. Allergan may, at its option, designate one (1) Selected Target/Chemistry as the Selected Target/Chemistry for which the Field shall mean the Expanded Field by written notice to ACADIA and the
JRC, such designation to be made at the time such Selected Target/Chemistry is designated pursuant to Section 5.1. In the event that such Selected Target/Chemistry for which the Field shall mean the Expanded Field ceases to be a Selected
Target/Chemistry as contemplated by Section 5.1, Allergan may, by prior written notice to ACADIA and the JRC, propose that another Target/Chemistry when it is designated as a Selected Target/Chemistry pursuant to Section 5.1, or an existing Selected
Target/Chemistry, be designated as the Selected Target/Chemistry for which the Field shall mean the Expanded Field; 

  

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 13. 

 
provided, however, that Allergan may choose an existing Selected Target/Chemistry only if ACADIA consents to such choice in writing, which consent may
be withheld only if the Target within such Selected Target/Chemistry is an Excluded Target as of the date of such notice; provided further, that such designation may apply to no more than one (1) Selected Target/Chemistry at any one time.
Once Allergan has exercised its Option with respect to a Selected Target/Chemistry for which the Field shall mean the Expanded Field, then the Field for such Licensed Target/Chemistry shall mean the Expanded Field, and Allergan may no longer make
any change in designation pursuant to this Section 5.5. 
  

	 	6.	PRODUCT DEVELOPMENT, MANUFACTURING AND SUPPLY. 

  
 6.1 Research and Development Efforts. Allergan
shall use commercially reasonable efforts to conduct, at its own expense, all preclinical testing and investigations necessary for Allergan to select appropriate Licensed Target/Chemistries and Designated Target/Chemistries for further development
in the Field. Such further development may include, but not be limited to, [...***...] necessary to prepare and file an IND and [...***...] necessary to file a NDA. Allergan will provide a report on a biannual basis to the
JRC summarizing the results of work it performs pursuant to this Section 6.1 in a manner sufficient to inform ACADIA of general research and development progress and compliance with Section 7.5(a). 
  
 6.2 Development Candidates. After the
designation of a Development Candidate, Allergan shall prepare and deliver to ACADIA within a reasonable period, such period not to exceed [...***...] the projected timing of the activities necessary to obtain Regulatory Approval for
such Development Candidate. Thereafter, Allergan shall regularly (on at least a semi-annual basis) provide ACADIA with an update describing of the progress made to date towards obtaining Regulatory Approval of such Development Candidate and the
plans for achieving Regulatory Approval in the future. Allergan shall have the sole responsibility for conducting preclinical and clinical development of such Development Candidate in accordance with a development plan prepared by Allergan in a
manner consistent with its then existing internal criteria. Allergan agrees to use commercially reasonable efforts to fund and perform development of its Development Candidate pursuant to such development plan in Major Markets. For purposes of
clarification, Allergan shall not be required under Section 6.1 or this Section 6.2 to provided detailed data or results to ACADIA. 
  
 6.3 Manufacture and Supply. Allergan shall be responsible for providing, at its sole expense, the supply of
[...***...] necessary for the preclinical and clinical development of [...***...] in the Field and all Allergan Products necessary for commercialization worldwide. 
  

	 	7.	LICENSE GRANTS; DILIGENCE OBLIGATIONS. 

  
 7.1 License Grants for Research Program.
Subject to the terms of this Agreement: 
  

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 14. 

 (a) with respect to each Selected Target/Chemistry and Designated
Target/Chemistry, during [...***...], ACADIA hereby grants to Allergan an exclusive (except as to ACADIA), royalty-free license, with no right to sublicense, under the ACADIA Technology and ACADIA’s interest in the Collaboration
Technology to make and use such Selected Target/Chemistry or Designated Target/Chemistry solely for internal research purposes pursuant to the Research Program in order to determine whether Allergan will exercise its option with respect to such
Selected Target/Chemistry or Designated Target/Chemistry pursuant to Section 5.2 or 5.4, as applicable; 
  
 (b) during the Research Term, ACADIA grants to Allergan an exclusive (except as to ACADIA), royalty-free license, with no right to
sublicense, under the ACADIA Technology and ACADIA’s interest in the Collaboration Technology solely for internal research purposes to the extent necessary or appropriate to carry out Allergan’s research responsibilities under the Research
Program. Allergan has the right to subcontract with Third Parties for the performance of research and development activities, provided, however, that (i) the contracted Third Party shall enter into a confidentiality agreement with Allergan;
and (ii) Allergan shall supervise such subcontract work; and 
  
 (c) during the Research Term, Allergan grants to ACADIA a non-exclusive, royalty-free license, with no right to sublicense, under the Allergan Technology and Allergan’s interest in the Collaboration
Technology solely for internal research purposes to the extent necessary or appropriate to carry out ACADIA’s research responsibilities under the Research Program. 
  
 7.2 License Grants to Allergan for Development and Commercialization. Subject to the terms of
this Agreement: 
  
 (a) ACADIA hereby
grants to Allergan, effective upon the exercise of the Option pursuant to which a Selected Target/Chemistry becomes a Licensed Target/Chemistry and payment of the license fee under Section 8.2(a)(i), an exclusive, worldwide, royalty bearing license
under the ACADIA Technology and ACADIA’s interest in the Collaboration Technology to make, have made and use such Licensed Target/Chemistry for research and development of such Licensed Target/Chemistry in the Field and to make, have made, use,
sell, offer for sale and import Allegan Products based on such Licensed Target/Chemistry in the Field; and 
  
 (b) ACADIA hereby grants to Allergan, effective upon the exercise of the option with respect to the applicable Designated
Target/Chemistry and payment of the license fee under Section 8.2(b), an exclusive, worldwide, royalty bearing license under the ACADIA Technology and ACADIA’s interest in the Collaboration Technology to make, have made and use such Designated
Target/Chemistry for research and development of such Designated Target/Chemistry in the Field and to make, have made, use, sell, offer for sale and import Allergan Products based on such Designated Target/Chemistry in the Field. 
  
 7.3 License Grant to ACADIA for Development and
Commercialization. 
  
 (a) Effective
upon the grant of a license to a Licensed Target/Chemistry to Allergan under Section 7.2(a), Allergan hereby grants to ACADIA an 

  

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 15. 

 
exclusive, worldwide, royalty-free license under the Allergan Technology and Allergan’s interest in the Collaboration Technology to make, have made and
use such Licensed Target/Chemistry outside the Field and to make, have made, use, sell, offer for sale and import ACADIA Royalty-Free Products based on such Licensed Target/Chemistry outside the Field. 
  
 (b) Effective upon the expiration without exercise of
an Option with respect to a Selected Target/Chemistry pursuant to Section 5.2 or as otherwise provided in Section 5.1(b), Allergan hereby grants to ACADIA an exclusive, worldwide, royalty-free license under the Allergan Technology and
Allergan’s interest in the Collaboration Technology to make, have made and use such Target/Chemistry in all fields of use and to make, have made, use, sell, offer for sale and import ACADIA Royalty-Free Products based on such Target/Chemistry
in all fields of use. 
  
 7.4
Sublicensing Rights. Allergan shall have the right to sublicense, through multiple tiers of sublicense, the rights granted to it pursuant to Section 7.2, and ACADIA shall have the right to sublicense, through multiple ties of sublicense,
the rights granted to it pursuant to Section 7.3 and Section 7.5(b), if applicable. 
  
 7.5 Diligence Obligations; License for ACADIA Reversion Products. 
  
 (a) Diligence Obligations. Each party’s
development and commercialization rights will be subject to development, manufacturing and commercial diligence obligations consistent with such party’s practice for products with similar commercial potential. With regards to Allergan, such
diligence obligations shall include, but not be limited to, [...***...] either itself, or through a Third Party. [...***...] may occur and are consistent with Allergan’s standard practice for products with similar
commercial potential. 
  
 (b) License
for ACADIA Reversion Products. If Allergan fails to fulfill the diligence obligations set forth in Section 7.5(a) with respect to a specific Licensed Target/Chemistry or either (i) Allergan in good faith notifies ACADIA in writing that it
intends to abandon research and development of such Licensed Target/Chemistry or (ii) the minutes of any board or committee meeting of Allergan reflect Allergan’s abandonment of research and development of such Licensed Target/Chemistry, then
(A) all rights granted under the ACADIA Technology and ACADIA’s interest in the Collaboration Technology with respect to such Licensed Target/Chemistry shall revert to ACADIA, and (B) in addition to any license granted Section 7.3(a)
with respect to a Licensed Target/Chemistry, Allergan thereupon grants to ACADIA an exclusive, worldwide, royalty-bearing license, in accordance with Section 8.6(c), under the Allergan Technology and Allergan’s interest in the Collaboration
Technology, as such technologies exist as of such date, to make, have made and use such Licensed Target/Chemistry in the Field and to make, have made, use, sell, offer for sale and import products based on such Licensed Target/Chemistry in the
Field. 
  

	 	8.	FEES AND PAYMENTS. 

  
 8.1 Access Fee. Upon each of the Effective Date and each anniversary thereof during the Research Term, provided that
ACADIA has provided to Allergan the Chemical-Genomics Asset List on a bi-monthly basis during the immediately preceding year in 

  

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 16. 

 accordance with Section 4.1, Allergan shall pay to ACADIA an annual access fee of
[...***...] in consideration of access to the Chemical-Genomics Asset List and ACADIA Technology related to such Chemical-Genomics Asset List. 
  
 8.2 License Fees. 
  
 (a) Licensed Target/Chemistries. For each Licensed Target/Chemistry for which a license is granted under Section 7.2(a)
Allergan shall pay to ACADIA the following: (i) [...***...] after Allergan’s exercise of its Option with respect to such Licensed Target/Chemistry]; and (ii) research funding for [...***...] ACADIA FTEs to be devoted
solely to the research and development of such Licensed Target/Chemistry [...***...], such funding to be provided at the rate and upon the payment terms set forth in Section 8.4. All research funding pursuant to this Section 8.2, shall
be in addition to the minimum research funding required under Section 8.4; provided however, that Allergan may, in its sole discretion, satisfy the obligation to fund [...***...] FTEs under this Section 8.2 for the first Licensed
Target/Chemistry only by applying [...***...] FTEs from the FTE Pool to research and development of such Licensed Target/Chemistry. 
  
 (b) Designated Target/Chemistries. For each Designated Target/Chemistry for which a license is granted under Section 7.2(b),
Allergan shall pay to ACADIA [...***...] after Allergan’s exercise of its option with respect to such Designated Target/Chemistry. 
  
 8.3 Expanded Field Fee. In consideration of the rights granted to Allergan pursuant to Section 5.5, Allergan shall pay to
ACADIA a fee of [...***...]; provided that ACADIA has provided to Allergan the Chemical-Genomics Asset List on a bi–monthly basis in accordance with Section 4.1 in order to allow Allergan to designate the Expanded Field with
respect to a Selected Target/Chemistry selected from such list. [...***...] 
  
 8.4 Research Funding. 
  
 (a) During the first year of the Research Term, Allergan agrees to pay ACADIA research funding payments [...***...]
during the first year of the Research Term. Thereafter, such rate per ACADIA FTE will be increased each year of the Research Term after the first year by [...***...]. Such funding shall be in such amounts as are set forth in the
Research Plan and the Alpha Adrenergic Research Plan, which shall provide for a total of at least: (i) [...***...] 

  

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 17. 

 
[...***...]. The FTE Pool shall be allocated between the Chemical-Genomics Project, the Designated Target Project and the Alpha Adrenergic Research Program
as deemed appropriate by the JRC. 
  
 (b)
It is intended that, as determined by the JRC, Allergan will provide sufficient research funding to ACADIA during the Research Term (and any renewal or extension thereof) to support the number of ACADIA FTEs required to pursue the activities set
forth in the Research Plan and the Alpha Adrenergic Research Plan, as the Research Plan and the Alpha Adrenergic Research Plan are developed and approved by the JRC, in accordance with the research budget developed and approved by the JRC as
described in Section 3.2, and subject to the limitations, including the minimum funding levels, set forth under this Section 8.4. 
  
 (c) All research funding payments under this Section 8.4 and Section 8.2(a) shall be made [...***...]. 
  
 8.5 Milestone Payments. 
  
 (a) Within [...***...] after achievement
by Allergan, its Affiliates, sublicensees, partners, collaborators or other Third Parties designated by Allergan of each of the following milestones with respect to each Licensed Target/Chemistry, Allergan shall pay ACADIA the following
non-refundable milestones (provided, however, that if Allergan abandons development of a Development Candidate with respect to a Licensed Target/Chemistry and replaces it with development of another Development Candidate with respect to such
Licensed Target/Chemistry, no duplicate milestone payments shall be due for the replacement compound if such milestone payment was made with respect to the compound it replaced): 
  

							
	 Milestone Event

	  	Amount of Payment

	 
	  	If the Field does
not encompass the
Expanded Field

	 	 	If the Field
encompasses the
Expanded Field

	 
	 (1)    Designation of a Development Candidate
	  	[...***...	]	 	[...***...	]
	 (2)    First Acceptance of IND for Development Candidate in [...***...]
	  	[...***...	]	 	[...***...	]
	 (3)    Initiation of the first Phase III clinical trial (or equivalent pivotal study) of Development Candidate in
[...***...]
	  	[...***...	]	 	[...***...	]
	 (4)    First filing and acceptance of NDA for Development Candidate in [...***...]
	  	[...***...	]	 	[...***...	]

  

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 18. 

							
	 (5)    Approval of NDA for Development Candidate in [...***...] ([...***...])
	  	[...***...	]	 	[...***...	]

  
 (b) Within ten (10) days after first approval of an NDA for each Active Compound within each Designated Target/Chemistry in a Major Market by Allergan, its Affiliates, sublicensees, partners, collaborators or other Third Parties
designated by Allergan, Allergan shall pay ACADIA [...***...]. 
  
 8.6 Royalties. 
  
 (a) Royalty Payments on Allergan Products Based on Licensed Target/Chemistries in the Field. Allergan shall pay to ACADIA the following royalties on annual Net Sales of Allergan Products based on Licensed Target/Chemistries:
[...***...] 
  
 (b) Royalty
Payments on Allergan Products Based on Designated Target/Chemistries. Allergan shall pay to ACADIA a royalty of [...***...]. 
  
 (c) Royalty Payments to Allergan. If rights with respect to a Licensed Target/Chemistry in the Field are conveyed to ACADIA
pursuant to Section 7.5(b): (i) in the event ACADIA develops or commercializes in collaboration with a Third Party licensee ACADIA Reversion Products based on such Licensed Target/Chemistry in the Field using Allergan Technology or Allergan’s
interest in the Collaboration Technology licensed to ACADIA pursuant to Section 7.5(b), then ACADIA shall pay to Allergan the following percentage of all royalties, upfront fees and milestones (excluding equity investments) received by ACADIA from
such Third Party licensee with respect to an ACADIA Reversion Product: [...***...]. 
  

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 (d) Royalty Term; Loss of Market Exclusivity. Royalties for sales of each Allergan
Product or ACADIA Reversion Product in a given country shall be paid for a period equal to the Royalty Term for such Allergan Product or ACADIA Reversion Product in such country; [...***...].  
  
 (e) Credit for Third Party Royalties. In the event
that a party obligated to pay royalties under this Agreement must obtain a license to Third Party patents in order to practice any license granted to it under this Agreement with respect to a product, then such party may reduce the royalty otherwise
owing on Net Sales of such product [...***...] of any royalty payments made under such Third Party license; provided, however, that the royalty otherwise payable under the applicable provision of this Agreement during any quarter
shall not be reduced by [...***...]; provided further, that such credit shall not apply to royalty payments made by Allergan pursuant to Section 8.6(b). 
  

	 	9.	PAYMENTS; RECORDS; AUDITS. 

  
 9.1 Payment; Reports. Royalty payments and reports for the sale of Allergan Products and ACADIA
Reversion Products shall be calculated and reported for each calendar quarter. [...***...] Each payment of royalties shall be accompanied by a report of Net Sales of Allergan Products or ACADIA Reversion Products in sufficient detail to
permit confirmation of the accuracy of the royalty payment made, including, without limitation, the number of each Allergan Product or ACADIA Reversion Product sold, the gross sales and Net Sales of each Allergan Product or ACADIA Reversion Product
in U.S. Dollars, the royalties payable, the exchange rates used and any other information necessary to determine the appropriate amount of royalties due. Each party will keep complete and accurate records pertaining to the development of Allergan
Products or ACADIA Reversion Products and the sale or other disposition of Allergan Products or ACADIA Reversion Products in sufficient detail to permit the other party to confirm the accuracy of all payments due hereunder. 
  
 9.2 Exchange Rate; Manner and Place of Payment. All
payments hereunder shall be payable in U.S. dollars. With respect to each quarter, for countries other than the United States, the Net Sales used for computing the royalties payable shall be computed in U.S. Dollars, and any sales denominated in
other than U.S. Dollars shall be translated into U.S. Dollars in accordance with U.S. generally accepted accounting principles consistently applied using the monthly average rates of exchange during the calendar quarter in which Net Sales are made.
The rates of exchange shall be those rates as published by The Wall Street Journal, Western U.S. Edition, during the calendar quarter for which Net Sales are made. All payments owed under this Agreement shall be made by wire transfer to a
bank and account designated in writing by the payee, unless otherwise specified by such payee. 
  

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 20. 

 9.3 Late Payments. In the event that any payment, including royalty, milestone and
research payments, due hereunder is not made when due, the payment shall accrue interest from the date due at the rate of [...***...]; provided, however, that in no event shall such rate exceed the maximum legal annual interest
rate allowed by law. The payment of such interest shall not limit a party from exercising any other rights it may have as a consequence of the lateness of any payment. 
  
 9.4 Records and Audits. On [...***...] prior written notice, each party shall have the
right to have an independent certified public accountant, inspect the books and records of the other party and/or its Affiliates and/or its sublicensees, no more than once per fiscal year during usual business hours for the sole purpose of and only
to the extent necessary to verify the completeness and accuracy of the records and payments made under this Agreement. Such examination with respect to any fiscal year shall not take place later than [...***...] following the end of
such fiscal year. The accountant shall inform the auditing party only if there has been an underpayment or an overpayment, and if so, the amount thereof and whether the books and records have been kept in a manner consistent with good accounting
practices. The expense of any such inspection shall be borne by the auditing party; provided, however, that, if the inspection discloses an underpayment in excess of [...***...] percent [...***...] then the audited
party shall pay the out of pocket costs of such audit. 
  
 9.5 Withholding of Taxes. Any withholding of taxes levied by tax authorities outside the United States on the payments hereunder shall be borne by the party receiving such payment and deducted by the party making such payment from
the sums otherwise payable by it hereunder for payment to the proper tax authorities. The parties agree to cooperate with each other, in the event a party claims exemption from such withholding or seeks deductions under any double taxation or other
similar treaty or agreement from time to time in force, such cooperation to consist of providing receipts of payment of such withheld tax or other documents reasonably available. 
  
 9.6 Exchange and Royalty Rate Controls. If at any time legal restrictions prevent the prompt
remittance of part or all royalties with respect to any country where any Allergan Product or ACADIA Reversion Product is sold, payment shall be made through such lawful means or methods as the party making such payment may determine. When in any
country the law or regulations prohibit both the transmittal and deposit of royalties on sales in such a country, royalty payments shall be suspended for as long as such prohibition is in effect, and as soon as such prohibition ceases to be in
effect, all royalties that would have been obligated to be transmitted or deposited, but for the prohibition, shall forthwith be deposited or transmitted promptly to the extent allowable, as the case may be. If any royalty rate specified in this
Agreement should exceed the permissible rate established in any country, the royalty rate for sales in such country shall be adjusted to the highest legally permissible or government-approved rate. 
  

	 	10.	INTELLECTUAL PROPERTY. 

  
 10.1 Ownership of Technology. Inventorship with respect to inventions made pursuant to work carried out under the Collaboration
shall be determined in accordance with United States rules of inventorship. Except as provided below, each party shall own solely all 

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 21. 

 
inventions made solely by any of its employees or agents in the course of the Collaboration, and the parties shall own jointly all inventions jointly made by
any employee or agent of ACADIA and any employee or agent of Allergan in the course of the Collaboration. 
  
 10.2 Patent Prosecution. It is the intention of the parties to secure broad patent protection for discoveries and inventions made
in the course of the Collaboration. 
  
 (a)
Allergan shall be responsible for the filing, prosecution and maintenance at Allergan’s sole cost of (i) all Allergan Patents, unless such Allergan Patents are then subject to an exclusive license granted to ACADIA under Section 7.5(b), and
(ii) all Collaboration Patents or ACADIA Patents to which Allergan then has an exclusive license under Section 7.2, to the extent the claims in such Collaboration Patents or ACADIA Patents are limited to Licensed Target/Chemistries or Designated
Target/Chemistries in the Field. 
  
 (b)
Except for those patents or patent applications described in Section 10.2(a), ACADIA shall be responsible for the filing, prosecution and maintenance at ACADIA’s sole cost, except as provided in Section 10.2(c), of (i) all ACADIA Patents
and all Collaboration Patents and (ii) all Allergan Patents to which ACADIA then has an exclusive license under Section 7.5(b). 
  
 (c) Allergan shall reimburse ACADIA for [...***...] percent ([...***...]%) of all reasonable out of
pocket legal expenses incurred by ACADIA that are associated with filing, prosecuting and maintaining (i) all Collaboration Patent(s) to which Allergan has [...***...] and (ii) any ACADIA Patents to which Allergan has
[...***...], to the extent that such ACADIA Patents include claims with respect to Licensed Target/Chemistries or Designated Target/Chemistries [...***...]. 
  
 (d) Each party that is responsible for filing, prosecution and maintenance under this Section 10.2 of
patent rights that are owned by, or subject to an exclusive license granted under this Agreement to such party shall (i) consider in good faith the requests and suggestions of such other party with respect to strategies for filing, prosecuting and
maintaining such patent rights that are subject to this Section 10.2, and (ii) keep such other party informed of progress with regard to the filing, prosecution and maintenance of such patent applications and patents that are subject to this Section
10.2. In the event a party is responsible for the filing, prosecution and maintenance of patent applications or patents hereunder that are owned by, or are subject to an exclusive license granted under this Agreement and elects, other than as
provided above, not to do so (other than because such party has determined in good faith not to file a patent application with respect to an invention but to maintain such invention as a trade secret), it shall inform the other party at least sixty
(60) days before any relevant deadline for filing or other action and transmit all information reasonable and appropriate relating to such patent or patent application, and such other party shall have the right to file, prosecute and maintain such
patent applications and patents at its own expense, in which case the party declining to continue to prosecute and maintain such patent applications and patents shall assign to the other party its rights in such patent applications and patents or
terminate the license under such patent applications and patents granted to it by the other party. 
  

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Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 22. 

 10.3 Cooperation of the Parties. Each party agrees to cooperate fully in the
preparation, filing, and prosecution of any patent rights under this Agreement. Such cooperation includes, but is not limited to: 
  
 (a) executing all papers and instruments, or requiring its employees or agents to execute such papers and instruments, so as to
effectuate the ownership of patent rights set forth in Section 10.1 above and to enable the owning party to apply for and to prosecute patent applications in any country; and 
  
 (b) promptly informing the other party of any matters coming to such party’s attention that may
affect the preparation, filing or prosecution of any such patent applications. 
  
 10.4 Infringement by Third Parties. 
  
 (a) ACADIA and Allergan shall promptly notify the other in writing of any alleged or threatened infringement of any patent included
in the Allergan Patents, ACADIA Patents or Collaboration Patents of which they become aware. In the event any alleged or threatened infringement of any patent included in the Allergan Patents, ACADIA Patents or Collaboration Patents by a Third Party
cannot be terminated without litigation, the provisions of Section 10.4(b) or (c), as applicable, and Section 10.4(d) shall apply. 
  
 (b) Allergan shall have the first right, but not the obligation, to bring and control any action or proceeding, at its own expense
and by counsel of its own choice, with respect to infringement of a patent (i) included in the Allergan Patents, unless such Allergan Patents are then subject to an exclusive license granted to ACADIA under Section 7.5(b), or (ii) included in the
Collaboration Patents or ACADIA Patents to which Allergan then has an exclusive license under Section 7.2, to the extent the claims in such Collaboration Patents or ACADIA Patents are limited to Licensed Target/Chemistries or Designated
Target/Chemistries in the Field. 
  
 (c)
Except as provided in Section 10.4(b), ACADIA shall have the first right to bring and control any action or proceeding with respect to infringements of a patent (i) included in the ACADIA Patents or the Collaboration Patents or (ii) included in
the Allergan Patents to which ACADIA then has an exclusive license under Section 7.5(b). 
  
 (d) The party not bringing the action shall have the right, at its own expense and by counsel of its own choice, to be represented
in any action involving any patent owned solely by such party or jointly by the parties. If a party fails to bring an action or proceeding with respect to a patent that is owned by, or is subject to an exclusive license granted under this Agreement
to, the other party within: (i) sixty (60) days following the notice of alleged infringement; or (ii) ten (10) days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes
first, such other party shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and the party initially declining to bring such action shall have the right, at its own expense and by counsel of
its own choice, to be represented in any such action. In the event a party brings an infringement action, the other party shall cooperate fully, including if required to 

  

 23. 

 
bring such action, the furnishing of a power of attorney. Neither party shall have the right to settle any patent infringement action under this Section 10.4
in a manner that diminishes the rights or interests of the other party without the consent of such other party. Except as otherwise agreed to by the parties as part of a cost sharing arrangement, any recovery realized as a result of such action,
after reimbursement of any out-of-pocket expenses of Allergan and ACADIA in connection with such action, shall be divided between the parties in accordance with their relative economic interests as directly related to the royalty payments described
in Section 8.6 hereof. 
  
 10.5 Infringement
of Third Party Rights. Each party shall promptly notify the other in writing of any allegation by a Third Party that the activity of either of the parties hereunder infringes or may infringe the intellectual property rights of such Third Party.
Allergan shall have the first right but not the obligation to control any defense of any such claim involving alleged infringement of Third Party rights by Allergan’s activities under this Agreement at its own expense and by counsel of its own
choice, and ACADIA shall have the right but not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. If Allergan fails to proceed in a timely fashion with regard to such defense, ACADIA shall have
the right but not the obligation to control any such defense of such claim at its own expense and by counsel of its own choice, and Allergan shall have the right but not the obligation, at its own expense, to be represented in any such action by
counsel of its own choice. ACADIA shall have the first right but not the obligation to control any defense of any such claim involving alleged infringement of Third Party rights by ACADIA’s activities under this Agreement at its own expense and
by counsel of its own choice, and Allergan shall have the right but not the obligation, at its own expense, to be represented in any such action by counsel of its own choice. If ACADIA fails to proceed in a timely fashion with regard to such
defense, Allergan shall have the right but not the obligation to control any such defense of such claim at its own expense and by counsel of its own choice, and ACADIA shall have the right but not the obligation, at its own expense, to be
represented in any such action by counsel of its own choice. Neither party shall have the right to settle any infringement action under this Section 10.5 in a manner that diminishes the rights or interests of the other party without the consent of
such party. 
  
 10.6 Trademarks. Allergan
and ACADIA shall each obtain, own and enforce its own trademarks with respect to Allergan Products or ACADIA Reversion Products, respectively, that each commercializes hereunder. 
  
 10.7 Patent Labeling. Each party shall mark all products or their containers that are manufactured
used or sold under the terms of this Agreement in accordance with the appropriate patent markings laws. 
  

	 	11.	REPRESENTATIONS AND WARRANTIES. 

  
 11.1 Representations and Warranties. Each party represents to the other that as of the Effective
Date: 
  
 (a) Corporate Power. It is duly
organized and validly existing under the laws of its state of incorporation or formation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof; 
  

 24. 

 (b) Due Authorization. It is duly authorized to execute and deliver this Agreement
and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action; 
  
 (c) Binding Agreement. This Agreement is legally binding upon it and enforceable in accordance with
its terms. The execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or
regulation of any court, governmental body or administrative or other agency having jurisdiction over it; 
  
 (d) Grant of Rights; Maintenance of Agreements. It has not, and will not during the Term, grant any right to any Third Party which
would conflict with the rights granted to the other party hereunder. It has (or will have at the time performance is due) maintained and will maintain and keep in full force and effect all agreements (including license agreements) and filings
(including patent filings) necessary to perform its obligations in accordance with the terms of this Agreement; and 
  
 (e) Validity. It is aware of no action, suit or inquiry or investigation instituted by or before any court or governmental agency
which questions or threatens the validity of this Agreement or of any Allergan Patents or ACADIA Patents. 
  
 11.2 ACADIA Representations and Warranties. ACADIA represents and warrants that as of the Effective Date: 
  
 (a) it is the sole and exclusive owner of the ACADIA
Patents and ACADIA Know-How and has sufficient rights and power to grant the licenses to Allergan which it purports to grant herein, and no such rights granted to Allergan hereunder are licensed by ACADIA from any Third Party; 
  
 (b) the ACADIA Know-How and the ACADIA Patents are
free of any encumbrances, liens, judgments and/or security interests that would affect the exercise by Allergan of its rights in the Field; [...***...] 
  
 (c) to its actual knowledge, there are no outstanding and unresolved claims or accusations that any
compounds or products manufactured, used or sold by ACADIA and licensed hereunder or any methods or process practiced by ACADIA pursuant to this Agreement infringe or may infringe any Third Party patent(s) or other intellectual property rights; and

  
 (d) all patents and patent
applications included in the ACADIA Patents are valid and in full force and effect, and are not the current subject of any interference or opposition proceeding. 
  

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Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 25. 

 11.3 Allergan Representations and Warranties. Allergan represents and warrants
that as of the Effective Date: 
  
 (a)
Allergan owns the Allergan Technology and has sufficient rights and power to grant the licenses to ACADIA which it purports to grant herein; and 
  
 (b) to its actual knowledge, there are no outstanding and unresolved claims or accusations that any methods or process practiced by
Allergan as part of the Allergan Technology infringe or may infringe any third party patent(s) or other intellectual property rights. 
  
 11.4 Disclaimer Concerning Technology. EXCEPT AS SPECIFICALLY SET FORTH HEREIN, THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS
PROVIDED BY EACH PARTY HEREUNDER ARE PROVIDED “AS IS” AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH RESPECT THERETO. Without limiting the generality of the foregoing, each party
expressly does not warrant (a) the success of any study or test commenced under the Collaboration or (b) the safety or usefulness for any purpose of the technology it provides hereunder. 
  

	 	12.	CONFIDENTIALITY; PUBLICATION. 

  
 12.1 Confidentiality. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the parties,
the parties agree that, during the Term and for the [...***...] immediately following the Term, each party (the “Receiving Party”) shall keep confidential and shall not publish or otherwise disclose and shall not
use for any purpose (other than as expressly provided for in this Agreement) any Confidential Information furnished to it by, or otherwise belonging to, the other party (the “Disclosing Party”) pursuant to this Agreement.
Each party may use Confidential Information of the other party only to the extent required to accomplish the purposes of this Agreement. The Receiving Party will use at least the same standard of care as it uses to protect proprietary or
confidential information of its own to ensure that its employees, agents, consultants and other representatives do not disclose or make any unauthorized use of such proprietary or confidential information. Each party will promptly notify the other
upon discovery of any unauthorized use or disclosure of the other party’s Confidential Information. 
  
 12.2 Exceptions. The obligations of confidentiality and non-use contained in Section 12.1 will not apply to the extent it can be
established by the Receiving Party by competent proof that such Confidential Information: 
  
 (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or
available; 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 26. 

 (b) is known by the Receiving Party at the time of receiving such information,
other than under confidentiality, as evidenced by its records; 
  
 (c) is hereafter furnished to the Receiving Party by a Third Party, as a matter of right and without restriction on disclosure; 
  
 (d) is independently developed by the Receiving Party without the aid, application or use of
Confidential Information of the Disclosing Party; or 
  
 (e) is the subject of a written permission to disclose provided by the Disclosing Party. 
  
 12.3 Terms of Agreement. The parties agree that this Agreement and the terms hereof will be considered Confidential Information of
both parties. Notwithstanding the foregoing, either party may disclose such terms as are required to be disclosed under strictures of confidentiality to bona fide potential sublicensees or for fund raising or financing efforts to investors and
lenders and potential investors and lenders or as otherwise required pursuant to applicable law. 
  
 12.4 Authorized Disclosure. Each party may disclose Confidential Information belonging to the other party to the extent such
disclosure is reasonably necessary in the following instances: 
  
 (a) filing or prosecuting patents relating to the Collaboration; 
  
 (b) regulatory filings; 
  
 (c) prosecuting or defending litigation; 
  

(d) complying with applicable court orders or governmental regulations; 
  
 (e) conducting pre-clinical or clinical trials of
Active Compounds within Licensed Target/Chemistries or Designated Target/Chemistries; and 
  
 (f) disclosure to Affiliates, sublicensees, employees, consultants, agents or other Third Parties in connection with due diligence
or similar investigations by such Third Parties, in each case who agree to be bound by similar terms of confidentiality and non-use at least equivalent in scope to those set forth in this Section 12. 
  
 Notwithstanding the foregoing, in the event a party is required to make a
disclosure of the other party’s Confidential Information pursuant to this Section 12.4, it will seek to secure confidential treatment of such information at least as diligently as such party would use to protect its own Confidential
Information. The parties will consult with each other on the provisions of this Agreement to be redacted in any filings made by the parties with the Securities and Exchange Commission or as otherwise required by law. 
  

 27. 

 12.5 Publications. Each party to this Agreement recognizes that the publication of
papers regarding results of and other information regarding the Collaboration, including oral presentations and abstracts, may be beneficial to both parties provided such publications are subject to reasonable controls to protect Confidential
Information. Accordingly, each party shall have the right to review and approve any paper proposed for publication by the other party, including oral presentations and abstracts, which utilizes data generated from the Collaboration and/or includes
Confidential Information of the other party. Before any such paper is submitted for publication, the party proposing publication shall deliver a complete copy to the other party at least forty-five (45) days prior to submitting the paper to a
publisher. Such other party shall review any such paper and give its comments to the publishing party within thirty (30) days of its receipt of such paper. With respect to oral presentation materials and abstracts, the reviewing party shall make
reasonable efforts to expedite review of such materials and abstracts, and shall return such items as soon as practicable to the publishing party with appropriate comments, if any, but in no event later than thirty (30) days from the date of receipt
by the reviewing party. The publishing party shall comply with the reviewing party’s request to delete references to Confidential Information of the reviewing party in any such paper and agrees to withhold publication of same for an additional
ninety (90) days in order to permit the parties to obtain patent protection, if either of the parties deems it necessary, in accordance with the terms of this Agreement. 
  

	 	13.	TERM AND TERMINATION. 

  
 13.1 Term of the Agreement. The term of the collaborative activities of the parties pursuant to the Research Plan and the
Additional Research Plan shall commence on the Effective Date and continue until expiration of the Research Term, unless earlier terminated pursuant to Section 13.2, 13.3 or 13.4, or extended by mutual written agreement of the parties. The term of
this Agreement (the “Term”) shall commence on the Effective Date and continue until the later of (a) six (6) months after the expiration of the last Royalty Term for any Allergan Product or ACADIA Reversion Product or (b) the
expiration of the last to expire Valid Claim covering an ACADIA Royalty-Free Product, unless earlier terminated pursuant to Section 13.2, 13.3 or 13.4 or extended by mutual written agreement of the parties. 
  
 13.2 Termination by Mutual Agreement. The parties may
at any time terminate this Agreement by written agreement executed by both Allergan and ACADIA. 
  
 13.3 Termination by Allergan. 
  
 (a) Allergan may terminate this Agreement by giving ninety (90) days prior written notice to ACADIA at any time after completion of
the Research Term. 
  
 (b) At any time
during the Research Term after the second (2nd) anniversary of the Effective Date, Allergan may terminate this Agreement by giving written notice to ACADIA within ninety (90) days after receipt of notice of a Change in Control (as defined in Section
16.14). In the event Allergan terminates this Agreement pursuant to this Section 13.3(b), then notwithstanding any contrary provision of this Agreement, the licenses granted to Allergan pursuant to Sections 7.1(a), 7.1(b) and 7.2 shall continue in
full force and effect and shall be exclusive even as to ACADIA (or the surviving entity following such Change in 

  

 28. 

 
Control), and ACADIA shall, promptly following such election by Allergan, transfer and disclose to Allergan all ACADIA Know-How as is reasonably necessary to
enable Allergan to fully exercise its rights under this Section 13.3(b). In addition, effective upon termination by Allergan of this Agreement pursuant to this Section 13.3(b), ACADIA hereby grants to Allergan, for a period ending on the later of
(x) the end of Research Term or any extension or renewal agreed to by Allergan and ACADIA prior to termination by Allergan or (y) as long as Allergan continues to use commercially reasonable efforts to pursue research, development, marketing and/or
sale of at least one (1) Chemistry within a Collaboration Target/Chemistry in the Field, an exclusive (even as to ACADIA or the surviving entity), worldwide license, with the right to sublicense pursuant to Section 7.4 under the ACADIA Technology
and ACADIA’s interest in the Collaboration Technology to the fullest extent necessary to permit Allergan alone to conduct all activities necessary to pursue its rights under this Agreement (subject to Allergan’s obligations to pay ACADIA
or the surviving entity the milestones set forth in Section 8.5 and the royalties set forth in Sections 8.6(a) and 8.6(b)). Allergan may exercise any Option then in effect under Section 5.2 or any option to license a Designated Target/Chemistry then
in effect under Section 5.4 prior to the effective date of termination under this Section 13.3(b) (but in no event beyond the applicable Option Period), subject to payment of the applicable license fee pursuant to Section 8.2; provided,
however, that the provisions regarding Allergan’s obligation to conduct further work with ACADIA pursuant to Section 5.2 (a)(i) or (ii) and to provide research funding to ACADIA pursuant to Section 8.2(a)(ii) shall not apply. 
  
 13.4 Termination for Cause. Each party shall have the
right to terminate this Agreement upon sixty (60) days’ prior written notice to the other upon the occurrence of any of the following: 
  
 (a) Upon or after the bankruptcy, insolvency, dissolution or winding up of the other party (other than a dissolution or winding up
for the purpose of reconstruction or amalgamation); or 
  
 (b) Upon or after the breach of any material provision of this Agreement by the other party if the breaching party has not cured such breach within the sixty (60) day period following written notice of termination by the
non-breaching party. 
  
 13.5 Effect of
Termination or Expiration; Surviving Obligations. 
  
 (a) Expiration or termination of this Agreement shall not affect any rights or obligations of either party accruing prior to such expiration or termination. Upon expiration or termination of this Agreement, all rights and obligations
of the parties under this Agreement shall terminate, except that the terms of this Section 13.5 (and the provisions referenced herein) and Sections 1, 9.4, 10.1, 10.3, 11.4, 12.1, 12.2, 12.3, 12.4, 14, 15 and 16 of this Agreement shall survive
expiration or termination of this Agreement. Promptly after termination of this Agreement, except as otherwise provided in this Section 13.5, each party shall return or dispose of any technology or know-how and Confidential Information of the other
party in the accordance with the instructions of such other party, including, without limitation, any compounds, assays or other biological or chemical materials. 
  

 29. 

 (b) Upon termination of this Agreement by Allergan for any reason, other than
breach by ACADIA or pursuant to Section 13.3(b), all rights to Licensed Target/Chemistries and Designated Target/Chemistries and to the ACADIA Technology and ACADIA’s interest in the Collaboration Technology granted to Allergan under this
Agreement shall revert to ACADIA, and all licenses granted by Allergan to ACADIA under Section 7.3 and 7.5(b) of this Agreement and the applicable provisions of Sections 6, 7.4, 8, 9, 10, 12 and 13 shall survive termination and remain in full force
and effect for so long as ACADIA is not in breach of its obligations to Allergan under this Agreement. 
  
 (c) Upon termination of this Agreement by Allergan pursuant to Section 13.3(b), the licenses described in Section 13.3(b) and the
provisions of Sections 6, 7.1(a), 7.1(b), 7.2, 7.3, 7.4, 8.5, 8.6(a), 8.6(b), 8.6(d), 8.6(e), 9, 10, 12 and 13 shall survive termination and remain in full force and effect for so long as the parties are not in breach of their remaining respective
obligations under this Agreement. 
  
 (d)
Upon termination of this Agreement by a party for breach by the other party pursuant to Section 13.4(b), all licenses granted to the non-breaching party under Section 7 of this Agreement and the applicable provisions of Sections 6, 7, 8, 9, 10,
12 and 13 shall survive termination and remain in full force and effect for so long as such non-breaching party is not in breach of its obligations to the other party under this Agreement. 
  
 (e) Allergan Fully Paid Up License. Upon expiration
of the last Royalty Term for an Allergan Product, Allergan shall have a fully-paid, royalty free, worldwide, non-exclusive, perpetual license to use the ACADIA Know-How to manufacture, use and sell such Allergan Product; provided however,
that Allergan shall have no right to sublicense outside the Field any such ACADIA Know-How which is Confidential Information. 
  
 (f) ACADIA Fully Paid Up License. Upon expiration of the last Royalty Term for an ACADIA Reversion Product, ACADIA shall have a
fully-paid, royalty-free, worldwide, non-exclusive, perpetual license to use the Allergan Know-How to manufacture, use and sell such ACADIA Reversion Product. Upon expiration of the last Valid Claim covering an ACADIA Royalty-Free Product, ACADIA
shall have a fully-paid, royalty-free, worldwide, non-exclusive, perpetual license to use the Allergan Know-How to manufacture, use and sell such ACADIA Royalty-Free Product; provided however, that ACADIA shall have no right to sublicense in
the Field any such Allergan Know-How with respect to any ACADIA Royalty-Free Product described in Section 1.5(a), which is Confidential Information. 
  

	 	14.	INDEMNITY. 

  
 14.1 Indemnification. 
  
 (a) ACADIA hereby agrees to save, defend and hold Allergan and its Affiliates and their respective directors, officers, employees
and agents harmless from and against any and all claims, suits, actions, demands, liabilities, expenses and/or loss, including reasonable legal expense and attorneys’ fees (collectively, “Claims”), to which any of them
may become subject as a result of any claim, demand, action or other proceeding by any Third Party 

  

 30. 

 
to the extent such Claims arise directly or indirectly out of (a) the development, manufacture, use, handling, storage, sale or other disposition of any
Collaboration Target/Chemistries or ACADIA Product by ACADIA or its Affiliates or sublicensees (other than Allergan), or (b) the gross negligence or willful misconduct of ACADIA or its Affiliates or sublicensees, except, in each case, to the extent
such Claims result from the gross negligence or willful misconduct of Allergan or its Affiliates or sublicensees. 
  
 (b) Allergan hereby agrees to save, defend and hold ACADIA and its Affiliates and their respective directors, officers, employees
and agents harmless from and against any and all Claims, to which any of them may become subject as a result of any claim, demand, action or other proceeding by any Third Party to the extent such Claims arise directly or indirectly out of (a) the
development, manufacture, use, handling, storage, sale or other disposition of any Collaboration Target/Chemistries or Allergan Product by Allergan or its Affiliates or sublicensees (other than ACADIA), or (b) the gross negligence or willful
misconduct of Allergan or its Affiliates or sublicensees, except, in each case, to the extent such Claims result from the gross negligence or willful misconduct of ACADIA or its Affiliates or sublicensees. 
  
 14.2 Control of Defense. Any entity entitled to
indemnification under this Section 14 shall give notice to the indemnifying party of any Claims that may be subject to indemnification, promptly after learning of such Claim, and the indemnifying party shall assume the defense of such Claims with
counsel reasonably satisfactory to the indemnified party. If such defense is assumed by the indemnifying party with counsel so selected, the indemnifying party will not be subject to any liability for any settlement of such Claims made by the
indemnified party without its consent (but such consent will not be unreasonably withheld or delayed), and will not be obligated to pay the fees and expenses of any separate counsel retained by the indemnified party with respect to such Claims.

  
 14.3 Insurance. Allergan, at its own
expense, shall maintain product liability insurance (or self-insure), in amounts consistent with industry standards for other such pharmaceutical companies during the Term and shall name ACADIA as an additional insured with respect to such
insurance. Allergan shall provide a certificate of insurance (or evidence of self-insurance) evidencing such coverage. ACADIA, at its own expense, shall maintain product liability insurance (or self-insure) in amounts consistent with industry
standards for other such biotechnology companies during the Term and shall name Allergan as an additional insured with respect to such insurance. ACADIA shall provide a certificate of insurance (or evidence of self-insurance) evidencing such
coverage. 
  

	 	15.	GOVERNING LAW; DISPUTE RESOLUTION. 

  
 15.1 Governing Law. This Agreement shall be governed by the laws of the State of California as such
laws are applied to contracts entered into or to be performed entirely within such state. 
  
 15.2 Dispute Resolution. Subject to Section 3.4, and except with respect to matters pertaining to injunctive relief, in the event
of any dispute, the parties shall refer such dispute to the Chief Executive Officer of ACADIA and a Senior Executive of Allergan appointed 

  

 31. 

 
by Allergan’s Chief Executive Officer for attempted resolution by good faith negotiations within sixty (60) days after such referral is made. During
such period of good faith negotiations, any applicable time periods under this Agreement shall be tolled. In the event such executives are unable to resolve such dispute within such sixty (60) day period, the parties shall submit their dispute to
binding arbitration before a retired California Superior Court Judge at J.A.M.S./Endispute located in Orange County, California, such arbitration to be conducted pursuant to the J.A.M.S./Endispute procedure rules for commercial disputes then in
effect. The award of the arbitrator shall include an award of reasonable attorneys’ fees and costs to the prevailing party. 
  
 15.3 Jurisdiction and Venue. Except as provided in Section 3.4 or 15.2 above, any claim or controversy arising out of or related to
this Agreement or any breach hereof (including claims for injunctive relief) shall be adjudicated in the state and federal courts in Orange County having jurisdiction over disputes arising in the State of California, and the parties hereby consent
to the jurisdiction and venue of such courts. 
  

	 	16.	General Provisions. 

  
 16.1 Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be mailed by
registered or certified mail, Federal Express or other nationally recognized overnight delivery service, addressed to the signatory to whom such notice is required or permitted to be given and transmitted by facsimile to the number indicated below.
All notices shall be deemed to have been given when mailed, as evidenced by the postmark at the point of mailing, or faxed. 
  

			
	 All notices to Allergan shall be addressed as follows:
	  	 Allergan, Inc.
 2525 Dupont Drive
 Irvine, CA 92623
 Attn: President, Research and Development
 Fax: (714) 246-6987

		
	 with a copy to:
	  	 Allergan, Inc.
 2525 Dupont Drive
 Irvine, CA 92623
 Attn: Allergan General Counsel
 Fax: (714) 246-4774

		
	 All notices to ACADIA shall be addressed as follows:
	  	 ACADIA Pharmaceuticals Inc.
 3911 Sorrento Valley
Blvd.
 San Diego, CA 92121
 Attn: Vice President, Business
Development
 Fax: (858) 558-2872

		
	 with a copy to:
	  	 Cooley Godward LLP
 4401 Eastgate
Mall
 San Diego, CA 92121

  

 32. 

			
	 	  	 Attn: L. Kay Chandler
 Fax: (858)
550-6420

  
 Any party may, by
written notice to the other, designate a new address or fax number to which notices to the party giving the notice shall thereafter be mailed or faxed. 
  
 16.2 Force Majeure. No party shall be liable for any delay or failure of performance (other than payment obligations) to the extent
such delay or failure is caused by circumstances beyond its reasonable control and that by the exercise of due diligence it is unable to prevent, provided that the party claiming excuse uses its commercially reasonable efforts to overcome the
same. 
  
 16.3 Entirety of Agreement. This
Agreement embodies the entire, final and complete agreement and understanding between the parties and replaces and supersedes all prior discussions and agreements between them with respect to its subject matter, except for the 1997 Agreement, which
shall continue in accordance with its terms, except to the extent specifically modified hereby. No modification or waiver of any terms or conditions hereof shall be effective unless made in writing and signed by a duly authorized officer of each
party. 
  
 16.4 Non-Waiver. The failure of
a party in any one or more instances to insist upon strict performance of any of the terms and conditions of this Agreement shall not constitute a waiver or relinquishment, to any extent, of the right to assert or rely upon any such terms or
conditions on any future occasion. 
  
 16.5
Disclaimer of Agency or Partnership. Neither party is, or will be deemed to be, the legal representative or agent of the other, nor shall either party have the right or authority to assume, create, or incur any third party liability or
obligation of any kind, express or implied, against or in the name of or on behalf of another except as expressly set forth in this Agreement. In addition, neither party shall be deemed to be a member of a partnership with the other party.

  
 16.6 Severability. If a court of
competent jurisdiction declares any provision of this Agreement invalid or unenforceable, or if any government or other agency having jurisdiction over either ACADIA or Allergan deems any provision to be contrary to any laws, then that provision
shall be severed and the remainder of the Agreement shall continue in full force and effect. To the extent possible, the parties shall revise such invalidated provision in a manner that will render such provision valid without impairing the
parties’ original intent. 
  
 16.7
Affiliates; Assignment. Except as otherwise provided herein, neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, not to be unreasonably withheld. Notwithstanding
the foregoing, each party may assign this Agreement to any of its Affiliates, to a special purpose corporation or similar entity at least fifty percent (50%) of the outstanding shares of any class or series of stock of which is owned by such party
in a manner such that the assignor will remain liable and responsible for the performance and observance of all its duties and obligations hereunder without the consent of the other party. In addition, the consent of the other party will not be
required in connection with a merger involving either party or with respect to an assignment of 

  

 33. 

 
this Agreement in connection with, as the case may be, the acquisition, sale of all or substantially all of the assets of either party, or a change of
control or similar transaction. In the event of such transaction, however, intellectual property rights of the acquiring party to such transaction (if other than one of the parties to this Agreement) will not be included in the technology licensed
hereunder. This Agreement shall be binding upon the successors and permitted assigns of the parties. Any attempted delegation or assignment not in accordance with this Section 16.7 shall be of no force or effect. Notwithstanding the foregoing
provisions of this Section 16.7, or any other provision of this Agreement, ACADIA may not assign or otherwise transfer its rights hereunder, whether by merger, acquisition, sale of assets, operation of law or otherwise, to [...***...].

  
 16.8 Headings. The headings
contained in this Agreement are inserted for reference only and shall not be deemed a part of the text hereof. 
  
 16.9 Limitation of Liability. EXCEPT FOR AMOUNTS PAYABLE UNDER SECTIONS 8 AND 14 AND LIABILITY FOR BREACH OF CONFIDENTIALITY
OR FOR INFRINGEMENT OR MISAPPROPRIATION, NO PARTY SHALL BE LIABLE TO ANOTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT,
REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. 
  
 16.10 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original and all of which shall constitute together the same document. 
  
 16.11 Bankruptcy. All rights and licenses
granted under this Agreement will be considered for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(56) of the Bankruptcy Code. The parties agree that a licensee
of such rights under this Agreement will retain and may fully exercise all of its rights and elections under the Bankruptcy Code. In the event that a licensor seeks or is involuntarily placed under the protection of the Bankruptcy Code, and the
trustee in bankruptcy rejects this Agreement, the licensee hereby elects, pursuant to Section 365(n), to retain all rights granted to it under this Agreement to the extent permitted by law. 
  
 16.12 Public Disclosure. Except for such
disclosure as is deemed necessary, in the reasonable judgment of a party, to comply with applicable laws or regulations, no public announcement, news release, public statement or publication relating to the existence of this Agreement, or the terms
hereof, will be made without the other party’s prior written approval, which approval shall not be unreasonably withheld. The parties agree that they will use reasonable efforts to coordinate the initial announcement or press release relating
to the existence of this Agreement so that such initial announcement or press release is made within forty-five (45) days of the Effective Date. 
  
 16.13 Export. The parties agree not to export, directly or indirectly, any U.S. source technical data acquired from the
other party or any products utilizing such data to 

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 34. 

 
countries outside the United States, which export may be in violation of the United States export laws or regulations. 
  
 16.14 Notice of Board Evaluation of Potential
Change in Control. In the event ACADIA’s Board of Directors decides to formally evaluate a potential Change in Control (as defined below), whether at the initiation of ACADIA’s Board of Directors or in response to a Third Party offer,
ACADIA shall give written notice thereof to Allergan. “Change in Control” shall mean any transaction or series of related transactions in which a Third Party acquires or becomes the beneficial owner of (a) more than fifty percent
(50%) of the outstanding voting securities or voting control of ACADIA or the surviving entity, whether by merger, consolidation, reorganization, tender offer or other means, or (b) all or substantially all the assets of ACADIA. 
  
 [Remainder of this page intentionally left blank.] 
  

 35. 

 IN WITNESS WHEREOF, the parties hereto have duly
executed this COLLABORATIVE RESEARCH, DEVELOPMENT AND LICENSE Agreement. 
  

			
	 ACADIA PHARMACEUTICALS INC.

		
	By	 	 /s/ ULI HACKSELL

	 	 	

		
	 Title
	 	 CEO

  

			
	 ALLERGAN, INC. 

		
	By	 	 /s/ LESTER J. KAPLAN 

	 	 	

		
	 Title
	 	 Corporate V.P.

  

 [SIGNATURE PAGE TO COLLABORATIVE
RESEARCH, DEVELOPMENT 
 AND LICENSE AGREEMENT] 

 EXHIBIT A 
  
 ACADIA PATENTS AS OF THE EFFECTIVE DATE 
  

 A-1 

 ACADIA PHARMACEUTICALS INC. 
 PENDING APPLICATIONS 
  

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

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 A-2 

 ACADIA PHARMACEUTICALS INC. 
 ISSUED PATENTS 
  

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

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 A-3 

 ACADIA PHARMACEUTICALS INC. 
 ISSUED PATENTS 
  

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

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 A-4 

 ACADIA PHARMACEUTICALS INC. 
 ISSUED PATENTS 
  

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

  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 A-5 

 EXHIBIT B 
  
 FORM OF MATERIALS TRANSFER AGREEMENT 
  

 B-1 

 MATERIALS TRANSFER AGREEMENT 
  
 THIS AGREEMENT is made as of
                    , 200_, by and between ACADIA PHARMACEUTICALS INC., a Delaware
corporation (“ACADIA”) and ALLERGAN, INC., a Delaware corporation (“Allergan”). 
  
 [ACADIA/Allergan] (hereinafter, the “Recipient”) desires to receive the materials described on
Exhibit A attached hereto (the “Materials”) from [Allergan/ACADIA] (hereinafter, the “Provider”) for the purpose of performing certain studies pursuant to the Collaborative Research, Development and
License Agreement by and between ACADIA and Allergan dated             , 2003 (the “Research Agreement”) as described in detail in the Research Plan (as
defined in the Research Agreement) (the “Project”). 
  
 The Recipient and the Provider hereby agree as follows: 
  

	 	1.	Use of Materials. 

  
 The Recipient will utilize its expertise and facilities to undertake the Project and will use the Materials solely for the Project. The Recipient shall
not sell, transfer, disclose or otherwise provide access to the Materials, any method or process relating thereto or any material that could not have been made but for foregoing to any person or entity without the prior written consent of the
Provider, except that the Recipient may allow access to the Materials to its employees or agents or permitted subcontractors for purposes consistent with this Agreement. The Recipient will take reasonable steps to ensure that such employees and
agents or permitted subcontractors will use the materials in a manner that is consistent with the terms of this Agreement. The Recipient will destroy the Materials or otherwise dispose of the Materials as mutually agreed by the Provider and the
Recipient upon expiration or termination of this Agreement. 
  

	 	2.	Precautions. 

  
 The Recipient understands that the Materials may have unpredictable and unknown biological and/or chemical properties, that they are to be used with
caution, and that they are not to be used for testing in or treatment of humans. The Recipient will use the Materials in compliance with all applicable laws and regulation, including but not limited to, any laws or regulations relating to research
testing, production, storage, transportation, export, packaging, labeling or other authorized use of the materials those applicable to research involving recombinant DNA and isotopes. 
  

	 	3.	Intellectual Property. 

  
 In performing the Projects, the Recipient may develop ideas, inventions, techniques and other technology[...***...], and associated
intellectual property (collectively “Inventions”). The parties agree that ownership of all Inventions, including without limitation Inventions relating to the Materials, their preparation or use, shall be governed by the
provisions of the Research Agreement relating to ownership of intellectual property. 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 B-2 

	 	5.	Confidentiality. 

  
 The parties agree that the terms of the Research Agreement relating to Confidential Information shall apply to all information that one party receives
from the other party pursuant to this Agreement. 
  

	 	6.	No License. 

  
 Nothing in this Agreement shall be construed as conferring on either party any implied license or implied option to license any disclosed Confidential
Information, technology, or any patent or patent application owned by the other party. 
  

	 	7.	Warranty Disclaimer. 

  
 THE MATERIALS ARE SUPPLIED TO THE RECIPIENT WITH NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR THAT THEY ARE FREE FROM THE RIGHTFUL CLAIM OR ANY THIRD PARTY BY WAY OF INFRINGEMENT OR THE LIKE. 
  

	 	8.	Term and Termination. 

  
 This Agreement will be effective as of the date first written above and will continue until the Research Agreement terminates. The parties may terminate
this Agreement prior to such time or extend the term of this Agreement by mutual written agreement as provided herein. Either party will have the right to terminate this Agreement on [...***...] written notice for material breach of
this Agreement, which breach is not cured within such [...***...] period. Promptly upon any termination, the Recipient will deliver to the Provider any remaining Materials, and any modifications, replications or derivatives thereof and
copies of all results of the Projects. Section 3, 4, 5, 6, 7 and 8 will survive the termination or expiration of this Agreement. 
  

	 	9.	Entire Agreement, Governing Law. 

  
 This Agreement sets forth complete and final agreements of the parties with respect to the subject matter of this Agreement and supersedes all prior
agreements and understandings, written or oral, between the parties hereto which relate to the subject matter of this Agreement, other than the Research Agreement. This Agreement may be amended only by a writing signed by the parties. This Agreement
shall be governed by the laws of the State of California without regard to choice of law provisions. 
  

 ***Certain confidential information on this page has been omitted and filed separately with the
Commission. 
 Confidential treatment has been requested with respect to the omitted portions. 
  
 B-3 

 IN WITNESS WHEREOF, the parties have
by duly authorized persons, executed this Agreement as of the date first above written. 
  

									
	 ALLERGAN, INC. 
	 	 	 	 ACADIA PHARMACEUTICALS INC.

					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

	 Title:
	 	 	 	 	 	 Title:
	 	 
	 	 	
	 	 	 	 	 	

  

 B-4

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