Document:

Affiliation Agreement / Registration Rights Agreement

 Exhibit 10_14B 
 October 13, 2006 
 TERCICA, INC., 
 IPSEN, S.A. 
 and 
 SURAYPHARM 
  

 AFFILIATION AGREEMENT 
  

 CONTENTS 
  

					
	 SECTION
	  	 	  	PAGE
	 1. Definitions
	  	1
		
	 2. Board Representation
	  	7
			
	 2.1
	  	 Role of the Board
	  	7
			
	 2.2
	  	 Size of Board
	  	8
			
	 2.3
	  	 Appointment of Initial Investor Directors
	  	8
			
	 2.4
	  	 Elections of Directors
	  	8
			
	 2.5
	  	 Board Observer Rights
	  	10
			
	 2.6
	  	 Committees
	  	11
			
	 2.7
	  	 Independent Director Nominations
	  	12
			
	 2.8
	  	 Indemnification and D&O Insurance
	  	13
			
	 2.9
	  	 Duration of Obligations Relating to the Board
	  	14
			
	 2.10
	  	 Corporate Opportunities’ Waiver
	  	14
		
	 3. Matters Requiring Investor Approval
	  	15
		
	 4. CEO Termination Consultation
	  	19
		
	 5. Issue of New Securities
	  	20
			
	 5.1
	  	 Right of First Offer
	  	20
			
	 5.2
	  	 Proceeds of Additional Securities Issued in Connection with the Repayment of the Convertible Notes
	  	22
		
	 6. Financial Reporting Covenants
	  	22
			
	 6.1
	  	 Reporting Information
	  	22
			
	 6.2
	  	 Purchase Accounting
	  	23
			
	 6.3
	  	 Variable Amount Notification; Dilution Amount Notification
	  	23
			
	 6.4
	  	 Deadlines for Reporting Information
	  	24
		
	 7. Covenants of the Investor
	  	25
			
	 7.1
	  	 Lock-up Period
	  	25
			
	 7.2
	  	 Restriction on Block Transfers
	  	26
			
	 7.3
	  	 Compliance with Securities Laws
	  	26
			
	 7.4
	  	 Compulsory Acquisition
	  	26

					
	 7.5
	  	 The Standstill Period
	  	26
			
	 7.6
	  	 The Regulated Purchase Period
	  	27
		
	 8. Miscellaneous
	  	28
			
	 8.1
	  	 Effectiveness of Agreement
	  	28
			
		  	 This Agreement shall become effective upon the Effective Date
	  	28
			
	 8.2
	  	 Assignment
	  	28
			
	 8.3
	  	 Governing Law
	  	28
			
	 8.4
	  	 Counterparts
	  	29
			
	 8.5
	  	 Titles and Subtitles
	  	29
			
	 8.6
	  	 Notices
	  	29
			
	 8.7
	  	 Costs of Enforcement
	  	30
			
	 8.8
	  	 Amendments and Waivers
	  	30
			
	 8.9
	  	 Severability
	  	31
			
	 8.10
	  	 Entire Agreement
	  	31
			
	 8.11
	  	 Delays or Omissions
	  	31
			
	 8.12
	  	 No Limitation on Stockholder Rights
	  	31
			
	 8.13
	  	 Seeking Approval of Certificate of Incorporation Amendments and Bylaw Amendments
	  	31
			
	 8.14
	  	 Specific Performance, Injunctive and Other Equitable Relief
	  	32
		
	 Annex A THE STRATEGIC PLANNING COMMITTEE CHARTER
	  	

 Execution Copy 
 THIS AFFILIATION AGREEMENT (this Agreement) is made effective as of the Effective Date, by and between: (1) TERCICA, INC., a Delaware corporation with its principal office at 2000 Sierra Point Parkway, Suite
400, Brisbane, California 94005, USA (the Company); (2) SURAYPHARM, a Société par Actions Simplifiée organized under the laws of France with its registered address at 42, rue du Docteur Blanche,
75016 Paris, France (the Investor), which is an assignee of Ipsen (as defined below) under the Purchase Agreement (as defined below) and the purchaser of the Shares (as defined therein); and, solely for purposes of Sections 2.7, 2.9,
2.10, 7 and 8 hereof, (3) IPSEN, S.A., a société anonyme organized under the laws of France with its registered address at 42, rue du Docteur Blanche, 75016 Paris, France (Ipsen). 
 RECITALS 
 WHEREAS, the Company and Ipsen are parties to the
Stock Purchase and Master Transaction Agreement, dated as of July 18, 2006 (the Purchase Agreement); and 
 WHEREAS, in order to
induce the Company to enter into the Purchase Agreement and to induce Ipsen or its assignee to invest funds in the Company pursuant to the Purchase Agreement, Ipsen, the Investor and the Company hereby agree that this Agreement shall govern the
rights of the Investor to recommend new directors to the Board of Directors of the Company (the Board), to participate in future equity offerings by the Company and certain other matters as set forth in this Agreement. 
 NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 
  

	1.	DEFINITIONS 

 For purposes of this Agreement:

 Affiliate means, in respect of any Person, any other Person that is directly or indirectly controlling, controlled by or under common
control with such Person or any of its Subsidiaries, and the term “control” (including the terms “controlled by” and “under common control with”) means having, directly or indirectly, the power to direct or cause the
direction of the management and policies of a Person, whether through ownership of voting securities or by contract or otherwise. 
 Associate
shall have the meaning ascribed to it in Rule 12b-2 of the Exchange Act. 
 Baseline Amount shall have the meaning ascribed to in the Warrant.

 A Person shall be deemed the beneficial owner of and to have acquired beneficial ownership of, and shall be deemed to
beneficially own any, securities that such Person or any of such Person’s Affiliates or Associates is deemed to “beneficially own” (or which are deemed to be beneficially owned by any Person deemed to be part of a
“group” with such person), each within the meaning of Rule 13d-3 of the Exchange Act. Notwithstanding anything in this definition of beneficial ownership to the contrary, the 

  

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phrase, “then-outstanding,” when used with reference to a Person’s beneficial ownership of securities of the Company, shall mean the number of
such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be deemed to beneficially own hereunder. 
 Board shall have the meaning set forth in the recitals. 
 Bylaw Amendments shall have the meaning ascribed to it in the Purchase Agreement. 
 Business Day shall have the meaning
ascribed to it in the Purchase Agreement. 
 Certificate of Incorporation Amendments shall have the meaning ascribed to it in the Purchase
Agreement. 
 Common Stock shall mean shares of the Company’s common stock, par value $0.001 per share. 
 Company shall have the meaning set forth in the preamble. 
 Company’s Stockholders’ Meeting shall have the meaning ascribed to it in the Purchase Agreement. 
 Confidential
Information shall mean all material non-public written or verbal information regarding the Company provided to or learned by an Investor Observer in connection with such Investor Observer’s attendance, or an invitation to attend, any
meeting of the Board or committee thereof. 
 Consultation Notice means a notice from Ipsen or an Affiliate thereof to the Company stating its
desire to explore a potential acquisition of shares of the Company’s capital stock from other stockholders, and the terms upon which Ipsen or an Affiliate thereof requests that the Company and the Board support and recommend to the
Company’s stockholders such an acquisition. 
 Convertible Notes means, collectively, the First Convertible Note, the Second Convertible
Note and the Third Convertible Note. 
 DGCL means the Delaware General Corporate Law. 
 Dilution Amount means: (a) two-thirds of the aggregate number of shares of Common Stock (or Common Stock underlying options, warrants or other Common
Stock purchase rights) issued after June 30, 2006 to employees or directors of the Company or to consultants of the Company or any of its Subsidiaries pursuant to any plan, agreement, or arrangement approved by the Board (other than shares
actually issued pursuant to options, warrants or other Common Stock purchase rights outstanding as of June 30, 2006), minus (b) two-thirds of the aggregate number of shares of Common Stock (or Common Stock underlying options,
warrants or other Common Stock purchase rights) covered by clause (a) above which, as at the date of the offers made by the Investor or its 

  

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Affiliates pursuant to subclause (d) in the definition of Permitted Offers and Acquisitions, (i) are subject to vesting requirements that cannot as
at such date be met; and (ii) have been repurchased by the Company or can no longer be issued pursuant to the original option or similar instrument. 
 Directors mean the members of the Board. 
 Dollars or $ means dollars in lawful currency of the United
States of America. 
 EBITDA shall have the meaning ascribed to it in the First Convertible Note. 
 Effective Date means the date of the First Closing. 
 Exchange Act shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 First Closing shall have the meaning ascribed to it in the Purchase Agreement. 
 First Closing Date shall have the
meaning ascribed to it in the Purchase Agreement. 
 First Convertible Note shall have the meaning ascribed to it in the Purchase Agreement.

 GAAP shall mean U.S. generally accepted accounting principles. 
 IFRS shall have the meaning ascribed to it in Section 6.1(f) of this Agreement. 
 IFRS Review
Opinion shall have the meaning ascribed to it in Section 6.4(a) of this Agreement. 
 Increlex License has the meaning ascribed to
it in the Purchase Agreement. 
 Indebtedness shall have the meaning ascribed to it in the First Convertible Note. 
 Independent Director means a Director who is independent for purposes of the listing standards of the Nasdaq Global Market (or such other listing standards
that may be applicable to the Company from time to time). 
 Indication Notice shall have the meaning ascribed to it in Section 5.1(b) of
this Agreement. 
 Investor shall have the meaning set forth in the preamble. 
 Investor Directors means those Directors that the Investor is entitled to designate pursuant to Section 2 of this Agreement. 
 Investor Observer shall have the meaning ascribed to it in Section 2.5(a) of this Agreement. 
  

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 Investor’s Percentage Interest means the percentage of the Company’s actually issued and
outstanding stock entitled to vote generally in any election of Directors, of which the ability to vote or control, directly or indirectly, by proxy or otherwise, is held in the aggregate by the Investor and its Affiliates, excluding in all cases
shares of the Company’s capital stock issuable, but not actually issued, upon conversion or exercise of the Convertible Notes or the Warrant. Notwithstanding the foregoing, for the purpose of determining the Investor’s Percentage Interest,
the shares of the Company’s capital stock subject to the Voting Agreements shall not in any event be deemed to constitute any portion of the Investor’s Percentage Interest. 
 Ipsen shall have the meaning set forth in the preamble. 
 Law shall have the meaning ascribed to
it in the Purchase Agreement. 
 Management Director means a Director who is also an employee of the Company or any other Director designated
as such by the Nominating Committee in accordance with Section 2.4 of this Agreement. 
 Milestone Payment shall have the meaning ascribed
to it in the Somatuline Autogel License. 
 Net Indebtedness shall have the meaning ascribed to it in the First Convertible Note. 

New Securities shall mean, collectively, any equity securities of the Company, whether now authorized or not, or rights, options, or warrants to
purchase said equity securities, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for said equity securities. 
 Nominating Committee means the current Corporate Governance and Nominating Committee of the Board, or such other nominating committee of the Board as described in Section 2.6 of this Agreement,
which committee may be a standalone committee or part of a broader governance committee. 
 Non-Investor Director means a Director who is not
an Investor Director. 
 Note Shares shall have the meaning ascribed to it in the Purchase Agreement. 
 Offer Notice shall have the meaning ascribed to in Section 5.1(a) of this Agreement. 
 Permitted Indebtedness shall have the meaning ascribed to it in the First Convertible Note. 
 Permitted
Investments shall have the meaning ascribed to it in the First Convertible Note. 
 Permitted Offers and Acquisitions means any of
(a) offers to acquire or acquisitions of securities, rights or options following which the Investor and its Affiliates beneficially 

  

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own less than or equal to forty percent of the aggregate of (i) the then-outstanding Common Stock plus (ii) the then-unexercised Warrant Shares
plus (iii) the then-unconverted Note Shares; provided that for purposes of this subclause (a), the Investor and its Affiliates (A) shall be deemed to beneficially own Note Shares under any unissued Convertible Notes if the Milestone
Payment may still be achieved under the terms of the Somatuline Autogel License; (B) shall be deemed to be the beneficial owner only of the Baseline Amount of the Warrant Shares; and (C) shall not be deemed to beneficially own the shares
of Company’s capital stock subject to the Voting Agreements; (b) offers to acquire or acquisitions following the offer to acquire, the acquisition or publication of intent or interest in acquiring beneficial ownership of more than 9.9
percent of the then-outstanding Common Stock by any Person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) that is not already the beneficial owner of more than 9.9 percent of the then-outstanding Common Stock
if, and only if, (A) such acquisition by such Person or group would result in a distribution of Rights under the Rights Agreement or (B) so long as the provisions of Section 3 hereof remain in effect, the Rights Agreement shall have
been amended, terminated, waived or modified without the consent of the Investor; (c) offers to acquire or acquisitions following the offer to acquire, the acquisition or publication of intent or interest in acquiring of shares of Common Stock
by a Person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) currently beneficially owning more than 9.9 percent of the outstanding Common Stock that would increase the percentage of the outstanding Common Stock
currently beneficially owned by such Person or group if, and only if, (A) such acquisition by such Person or group would result in a distribution of Rights under the Rights Agreement or (B) so long as the provisions of Section 3
hereof remain in effect, the Rights Agreement shall have been amended, terminated, waived or modified without the consent of the Investor; and (d) offers to acquire from all stockholders of the Company (though not necessarily all shares of all
stockholders) or acquisitions conditioned upon or following such offers (A) initiated at least thirty but not more than 120 days following delivery of an Consultation Notice by the Investor to the Company, and (B) which follow a
period of at least thirty days during which the Investor or an Affiliate of the Investor discusses with the Board in good faith the terms upon which it would propose to consummate such acquisition, and (C) in connection with which the Investor
or an Affiliate of the Investor exercises the Warrant, or commits to exercise the Warrant prior to its expiration, for the unexercised Baseline Amount and converts or commits to convert any issued and outstanding Convertible Notes in full and
commits to convert any unissued Convertible Notes prior to their maturity upon issuance in accordance with the terms of the Purchase Agreement and the Somatuline Autogel License (provided that such commitments to effect such exercise and
conversion shall only become effective and irrevocable upon completion of the acquisitions by the Investor and its Affiliates of the Common Stock, as contemplated by subparagraph (D) of this subclause (d)), as applicable, and (D) which
result in, either individually or in aggregate with other offers or acquisitions that are a condition to completion of the acquisition, the beneficial ownership by the Investor and its Affiliates of at least such number of shares of Common Stock
that equals (i) such number of shares as would result in the Investor and Affiliates owning sixty percent of the then-outstanding Common 

  

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Stock (such beneficial ownership to be calculated as if all of the Convertible Notes, whether issued as at the relevant date or not, have been issued and
converted and the Warrant has been exercised in full for the maximum number of shares for which such Warrant can be exercised at the time of such measurement) minus (ii) the Dilution Amount; provided that, for purposes of this
subclause (d), (i) in the event that the Investor and its Affiliates does not accept all shares tendered in a tender offer or other offer pursuant to this subclause (d), then the Investor or its Affiliates will purchase stock from all
participating stockholders of the Company on a pro rata basis based on each stockholder’s ownership interest in the Company (it being understood that the Purchaser may enter into agreements that are not part of any such offer but that are
conditioned upon such offer provided that purchases of shares pursuant thereto are pro rata based on the stockholder party’s ownership interest in the Company) and (ii) if following completion of such acquisitions by the Investor and its
Affiliates, the Investor and its Affiliates gain control of the Board such that they have the power to direct or cause the direction of the management and policies of the Board, the Investor shall not, and shall cause that its Affiliates shall not,
cause the Board to waive any commitments entered into by the Investor or any of the Investor’s Affiliates in accordance with subparagraph (C) of this subclause (d). 
 Permitted Transfer shall have the meaning ascribed to it in the First Convertible Note. 
 Person
means any individual or any corporation, limited liability company, partnership, trust, association or other entity of any kind. 
 Purchase
Agreement shall have the meaning set forth in the recitals. 
 Publicly Available Securities shall have the meaning ascribed to in
Section 5.1(c) of this Agreement. 
 Regulated Purchase Period shall mean that period beginning upon the expiration of the Standstill
Period and expiring on the fourth anniversary of such date. 
 Reporting Information shall have the meaning ascribed to it in Section 6.1
of this Agreement. 
 Rights shall have the meaning ascribed to it in the Rights Agreement. 
 Rights Agreement means that certain Rights Agreement, to be effective as of the First Closing Date, by and between the Company and Computershare Trust
Company, N.A. 
 SEC means the United States Securities Exchange Commission. 
 Second Closing Date shall have the meaning ascribed to it in the Purchase Agreement. 
 Second
Convertible Note shall have the meaning ascribed to it in the Purchase Agreement. 
  

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 Securities Act means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 Series A Junior Participating Preferred means the Series A Junior Participating Preferred Stock, par value $0.001 per share, of
the Company having the designations and the powers, preferences and rights, and the qualifications, limitations and restrictions set forth in the Form of Certificate of Designation attached to the Rights Agreement as Exhibit A thereto. 

Somatuline Autogel License has the meaning ascribed to it in the Purchase Agreement. 
 Standstill Period shall mean that period commencing on the First Closing (as defined in the Purchase Agreement) and expiring on the first anniversary of the date of the First Closing. 
 Subsidiary means any corporation or other organization, whether incorporated or unincorporated, of which (i) at least fifty percent (50%) of the
securities (or other interests having by their terms ordinary voting power to elect a majority of the board of directors or others performing similar functions with respect to such corporation or other organization) is directly or indirectly owned
or controlled by the relevant Person or (ii) the relevant Person (or any other Subsidiary of the relevant Person) is a general partner. 
 Third
Convertible Note shall have the meaning ascribed to it in the Purchase Agreement. 
 Transaction Documents shall have the meaning
ascribed to it in the Purchase Agreement. 
 Triggering Sale means a sale or other transfer of Common Stock by the Investor or its Affiliates
to non-Affiliates of the Investor which, aggregated with previous sales or other transfers of Common Stock by the Investor and its Affiliates to non-Affiliates of the Investor, exceeds five percent of the Company’s outstanding Common Stock as
of the date of the most recent sale or other such transfer. 
 Voting Agreements shall have the meaning ascribed to in the Purchase Agreement.

 Warrant shall have the meaning ascribed to in the Purchase Agreement. 
 Warrant Shares shall have the meaning ascribed to in the Purchase Agreement. 
  

	2.	BOARD REPRESENTATION 

  

	2.1	Role of the Board 

 Subject to the provisions of this Agreement and
the other Transaction Documents and the Company’s Certificate of Incorporation and Bylaws, the fundamental policies and strategic direction of the Company shall be determined by the Board as provided in this Section 2. 
  

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	2.2	Size of Board 

 At and after the First Closing, the Board shall be
comprised of nine Directors. The number of such Directors may be increased only in accordance with Sections 2.4(e) and 3(m) of this Agreement. 
  

	2.3	Appointment of Initial Investor Directors 

 Immediately following
the First Closing, the Board shall elect Jean-Luc Belingard and Christophe Jean as Directors, each of whom has been designated as an initial Investor Director by the Investor (unless either such individual is unable or unwilling to serve, in which
case the Company shall elect a substitute nominated by the Investor). 
  

	2.4	Elections of Directors 

  

	(a)	Except as otherwise provided herein, at all times from and after the First Closing, the slate of Directors nominated and recommended by the Company shall be nominated as follows (it
being understood that such nomination shall include any nomination of any incumbent Director for reelection to the Board): 

  

	 	(i)	the Nominating Committee shall recommend the nomination of no more than two Management Directors, one of which shall be the chief executive officer of the Company;

  

	 	(ii)	the Investor shall have the right to designate two Investor Directors, each of whom shall be recommended for nomination by the Nominating Committee, by giving notice of the identity
of the Investor Directors to be recommended for nomination at least (A) 90 days prior to each annual meeting of stockholders at which Directors will stand for election or (B) 30 days prior to the date on which the Company sends a notice
for any other meeting of its stockholders at which Persons have been nominated for election as Directors (the Company having given the Investor 30 days prior written notice of its intention to send such a notice), and upon the failure to deliver
such notice in subclauses (A) or (B) above, the incumbent Investor Directors shall be recommended for nomination; 

  

	 	(iii)	the Nominating Committee shall recommend for nomination the remaining Directors, each of whom (A) shall have an outstanding reputation for personal integrity and distinguished
achievement in areas relevant to the Company (in applying the foregoing criteria the Nominating Committee shall be guided by the quality of the individuals currently serving as directors of the Company, the Investor and Ipsen) and (B) shall be
an Independent Director; and 

  

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	 	(iv)	the Board shall nominate for election each of the individuals so recommended for nomination by the Nominating Committee and recommend their election to stockholders of the Company.

  

	(b)	Notwithstanding anything in the foregoing Section 2.4(a) to the contrary, at any time that the Investor’s Percentage Interest is less than 15 percent but at least 10
percent, the Directors shall be nominated as set forth in paragraph (a) above except that the Investor shall have the right to designate for nomination only one Investor Director. So long as the Investor satisfies the ownership thresholds in
this Section 2.4(b), the Company will in all instances nominate the Investor Directors that the Investor has, in accordance with this Section 2.4, designated for nomination and include the names of such nominees in the Company’s proxy
statement for any meeting for the election of Directors (or any supplement thereto), together with such information about their nominations as the Investor reasonably requests and include such Persons on all ballots with equal prominence to other
director nominees. 

  

	(c)	Notwithstanding Sections 2.4(a) or 2.7 hereof, if at any time the Investor and its Affiliates beneficially own 60 percent or more of the then-outstanding Common Stock, (i) the
Investor shall be entitled to nominate or recommend to the Company for nomination an unlimited number of further Directors (or if any then-applicable provisions of the DGCL, the Securities Act, the Exchange Act or the rules and regulations
thereunder or of the SEC or the primary exchange upon which the Company is then-listed, or other applicable Law, prevent the nomination of such number of further Directors, up to such maximum lesser number of further Directors as are permitted by
such provisions) at any meeting or action for the election of the Directors by notifying the Company in writing the names of such nominees, (ii) the Company agrees that following receipt of such notification it shall call, as soon as reasonably
practicable and in accordance with the Company’s bylaws and certificate of incorporation, a special meeting of the stockholders of the Company for the purposes of electing such nominees as Directors and (iii) the Company shall include the
names of all such nominees in the Company’s proxy statement for any such meeting (or any supplement thereto), together with such information about their nominations as the Investor reasonably requests and include such Persons on all ballots
with equal prominence to other director nominees. 

  

	(d)	The Investor and the Nominating Committee, respectively, shall have the right to designate any replacement for a Director designated for nomination or recommended for nomination by
the Company in accordance with this Section 2.4 by the Investor or the Nominating Committee, respectively, upon the death, resignation, retirement, disqualification or removal from office for other cause of such Director. Such replacement for
any Independent Director shall also be an Independent Director conforming to the standard set forth in clause (A) of Section 2.4(a)(iii) hereof. The Board shall elect each person so designated. 

  

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	(e)	Without limiting the generality of Section 2.4(a) of this Agreement, in the event that at any time after the First Closing the number of Investor Directors on the Board differs
from the number that the Investor has the right to designate pursuant to this Section 2.4, (i) if the number of Investor Directors exceeds such number, the Investor shall at the request of the Company promptly take all appropriate action
to cause to resign that number of Investor Directors as is required to make the remaining number of such Investor Directors conform to this Section 2.4 or (ii) if the number of Investor Directors otherwise is less than such number, the
Company shall take all necessary action to create sufficient vacancies on the Board to permit the Investor to designate the full number of Investor Directors which it is entitled (and wishes) to designate pursuant to this Section 2.4 (such
action to include expanding the size of the Board, seeking the resignation or removal of Directors or, at the request of the Investor, calling a special meeting of the stockholders of the Company for the purpose of removing Directors to create such
vacancies to the extent permitted by applicable law). Upon the creation of any vacancy pursuant to the preceding sentence, the Investor shall designate the person to fill such vacancy in accordance with this Section 2.4, and the Board shall
elect each person so designated. 

  

	2.5	Board Observer Rights 

  

	(a)	The Investor Directors shall have the right to invite one representative of the Investor or an Affiliate of the Investor, who is a member of Ipsen’s Executive Committee, to
attend, but not vote, as an observer (the Investor Observer) at the open portion of each meeting of the Board, including telephonic meetings. 

  

	(b)	Notwithstanding Section 2.5(a) of this Agreement, the Investor Observer may be excluded from access to any meetings of the Board or portion thereof if: (i) any Investor
Director has excluded himself or herself due to a conflict of interest; or (ii) a majority of the Non-Investor Directors determines, in good faith, that such exclusion is reasonably necessary so as not to have a material adverse effect on the
attorney client privilege between the Company and its counsel. The decision of the Non-Investor Directors with respect to the privileged or confidential nature of such information shall be final and binding. 

  

	(c)	 The Investor hereby agrees that it will not, and will instruct any Investor Observer to not, use (other than for purposes of managing its investment in, or
commercial relationship with, the Company) or disclose any Confidential Information to any third party (other than the Investor’s Affiliates and the officers, directors and employees of the Investor and such Affiliates, who shall each be
subject to confidentiality obligations to the Investor), other than Confidential Information that: (i) subsequent to its disclosure, becomes publicly available to the Investor, the Investor’s Affiliates or any Investor Observer without any
violation of this Agreement by the Investor, the Investor’s Affiliates or any Investor Observer; (ii) becomes legally available to the Investor, the Investor’s Affiliates or any Investor Observer on a non-confidential basis from any
third party, the disclosure of which 

  

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does not violate any contractual or legal obligation such third party has to the Company with respect to such information; (iii) is independently
acquired or developed by the Investor, the Investor’s Affiliates or any Investor Observer; (iv) is required to be disclosed by the Investor, the Investor’s Affiliates or any Investor Observer pursuant to law or by order of court of
competent jurisdiction, pursuant to the requirements of a stock exchange, bank regulatory or other governmental or regulatory authority or to obtain tax or other clearances or consent of any relevant authority, provided that in the event of a
court ordered disclosure or required disclosure by a stock exchange, the Investor will use its reasonable efforts to notify the Company within 15 days prior to such disclosure; or (v) information that is explicitly approved for release by prior
written authorization of the Company. The Investor shall be responsible for any breach of this Section 2.5(c) by any of the Investor’s Affiliates or any of the officers, directors or employees of the Investor or such Affiliates.

  

	2.6	Committees 

  

	(a)	Subject to the general oversight and authority of the full Board, the Board shall establish, empower and maintain the committees of the Board contemplated by this Section 2.6.

  

	(b)	The following committees shall be established, empowered and maintained by the Board at all times during the term of this Agreement: 

  

	 	(i)	an Audit Committee comprised of Independent Directors, each of whom shall satisfy the criteria for independence set forth in Rule 10A-3(b)(1) of the Exchange Act;

  

	 	(ii)	a Nominating Committee, responsible, among other things, for recommending the nomination of Directors in accordance with Section 2.4 of this Agreement;

  

	 	(iii)	a Strategic Planning Committee having a charter that includes the items set forth in Annex A hereto and comprised of one Management Director (who shall be the chief executive
officer of the Company), each Investor Director and two Independent Directors (who shall be designated by a majority of the Independent Directors); 

  

	 	(iv)	a Compensation Committee comprised of at least two Independent Directors, with responsibilities substantially similar to those of the current Compensation Committee of the Company;
and 

  

	 	(v)	such other committees as the Board deems necessary or desirable; provided that such committees are established in compliance with the terms of this Agreement.

  

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	(c)	An Investor Director shall be entitled to attend, as a non-voting participant, all meetings of the Compensation Committee and shall receive written notice of the time and place of
all such meetings (such notice to be received at the same time as members of such committee receive notice of such meetings) and copies of all documents provided to the members of such committee at or in connection with such meetings.

  

	(d)	No action by any committee of the Board shall be valid unless taken at a meeting for which adequate notice has been duly given or waived by the members of such committee. Such
notice shall include a description of the general nature of the business to be transacted at the meeting, and no other business may be transacted at such meeting unless all members of the committee are present and consent to the consideration of
such other business. Any committee member unable to participate in person at any meeting shall be given the opportunity to participate by telephone. The Board or, to the extent so permitted under applicable Law, the remaining committee members shall
designate an Investor Director, Independent Director or Management Director to replace any absent or disqualified Investor Director member, Independent Director member or Management Director member, respectively, of any committee. In the event that
any Investor Director or Independent Director ceases to serve on any committee of the Board and, after a reasonable time, no successor to such Director is designated in accordance with the terms hereof to serve on such committee, the number of
members of such committee may be reduced if such reduction does not (and no such reduction is intended to) result in a change of the relative authorities within such committee among the Investor Directors (taken as a group), the Independent
Directors (taken as a group) and the Management Directors (taken as a group). Each of the committees established by the Board pursuant to this Section 2.6 shall establish such other rules and procedures for its operation and governance
(consistent with the terms of this Agreement) as it shall see fit and may seek such consultation and advice as to matters within its purview as it shall require. 

  

	2.7	Independent Director Nominations 

 In the event that the Investor
provides notice to the Company, such notice to be provided at least (i) 90 days prior to the first anniversary of the date on which the prior year’s annual meeting of the stockholders of the Company was held or (ii) 30 days prior to
the date on which the Company sends a notice for any other meeting of its stockholders at which Persons have been nominated for election as Independent Directors (the Company having given the Investor 45 days prior written notice of its intention to
send such a notice), that it seeks to recommend the nomination of Independent Directors at such upcoming meeting of the stockholders of the Company that have not been nominated for election by the Board, the Company shall include the names of such
nominees in the Company’s proxy statement for such meeting (or any supplement thereto), together with such information about their nominations as the Investor reasonably requests and include such Persons on all ballots with equal prominence to
other director nominees, on the following basis: 
  

	(a)	until such time as Section 2.7(b) applies, one such nominee pursuant to notice received by the Company from the Investor after the Company’s 2007 annual meeting of its
stockholders; 

  

 Page 12 

	(b)	until such time as 2.7(c) applies, two such nominees pursuant to notice received by the Company from the Investor after the Company’s 2008 annual meeting of its stockholders;
and 

  

	(c)	four such nominees pursuant to notice received by the Company from the Investor after the Company’s 2009 annual meeting of its stockholders, such entitlement applying in
relation to all annual meetings of the Company’s stockholders or other meetings of its stockholders at which Persons have been nominated for election as Independent Directors that are held after the Company’s 2009 annual meeting of its
stockholders. 

 All nominees recommended by the Investor pursuant to this Section 2.7 hereof shall (i) in the reasonable opinion of
the Investor acting in good faith, satisfy the requirements of Section 2.4(a)(iii)(A) hereof and (ii) not be an Affiliate, director, employee or officer of the Investor or a director, employee or officer of any of the Investor’s
Affiliates. Nothing in this Section 2.7 shall prevent the Company from nominating additional Independent Directors. Except as set forth in Sections 2.4(a)(ii), 2.4(c) and 2.7 hereof, the Investor and Ipsen agree that neither they nor any of
their Affiliates will nominate any further Persons for election as Directors at any time at which the Investor is entitled to recommend the nomination of Independent Directors pursuant to this Section 2.7. 
  

	2.8	Indemnification and D&O Insurance 

  

	(a)	Subject to availability on reasonable terms and at a reasonable cost, for so long as any Investor Director remains on the Board, the Company shall maintain directors’ and
officers’ liability insurance with an insurer which maintains a rating of not less than A- by Fitch or A.M. Best with at least the current level of coverage and, in addition, shall consult in good faith with the Investor with respect to
(i) the renewal of existing policies and (ii) side A excess terms and conditions coverage in a minimum amount that is reasonably satisfactory to the Investor. Nothing herein shall restrict the Board from obtaining additional side A excess
terms and conditions coverage. 

  

	(b)	In the event that the Company or any of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation
or entity of such consolidation or merger or (ii) transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such case, to the extent necessary, proper provision shall be made so that the
successors and assigns of the Company assume the obligations of the Company with respect to indemnification of members of the Board as in effect immediately prior to such transaction, whether in the Company’s Bylaws, Certificate of
Incorporation, or elsewhere, as the case may be. 

  

 Page 13 

	(c)	The Company shall indemnify the Investor Directors to the full extent allowed by law. 

  

	2.9	Duration of Obligations Relating to the Board 

  

	(a)	The provisions of Section 2 of this Agreement (other than Section 2.7 for which the provisions in Section 2.9(b) shall apply) shall terminate upon the Investor’s
Percentage Interest falling below ten percent; provided that, the provisions of Section 2.8 hereof shall continue until expiration of the longest relevant statute of limitations. 

  

	(b)	The provisions of Section 2.7 of this Agreement shall terminate upon the Investor’s Percentage Interest falling below 15 percent. 

  

	(c)	In the event of a Triggering Sale, the provisions of Section 2.7(c) hereof shall terminate and the number of Independent Director nominees that the Investor is entitled to
recommend pursuant to Sections 2.7(a) and 2.7(b) hereof shall be amended so that such entitlement shall be for the lesser of (i) two such nominees and (ii) such number of nominees that the Investor is entitled to recommend at the time of
the Triggering Sale. 

  

	2.10	Corporate Opportunities’ Waiver 

  

	(a)	Except as Ipsen may otherwise agree in writing, neither Ipsen nor any of its Affiliates nor any of its or their respective directors, officers or employees shall be liable to the
Company or the Company’s stockholders for breach of any fiduciary duty by reason of any activities of Ipsen or any of Ipsen’s Affiliates or of such Person’s participation therein. In the event that Ipsen or any of its Affiliates
acquires knowledge of a potential transaction or matter that may be a corporate opportunity for both Ipsen (or any of its Affiliates) and the Company, Ipsen and its Affiliates shall have no duty to communicate or offer such corporate opportunity to
the Company and shall not be liable to the Company or the Company’s stockholders for breach of any fiduciary duty as a stockholder of the Company or controlling person of a stockholder by reason of the fact that Ipsen or any of Ipsen’s
Affiliates pursues or acquires such corporate opportunity for itself, directs such corporate opportunity to another Person or entity, or does not communicate information regarding, or offer, such corporate opportunity to the Company.

  

	(b)	 In the event that a director, officer or employee of the Company who is also a director, officer or employee of Ipsen or any of Ipsen’s Affiliates acquires
knowledge, other than solely as a result of his or her position as a director, officer or employee of the Company, of a potential transaction or matter that may be a corporate opportunity for the Company and Ipsen or any of Ipsen’s Affiliates
(whether such potential transaction or matter is proposed by a third party or is conceived of by such director, officer or employee of the Company), such 

  

 Page 14 

	 	 
director, officer or employee shall be entitled to offer such corporate opportunity to the Company or to Ipsen or any of Ipsen’s Affiliates as such
director, officer or employee deems appropriate under the circumstances in his sole discretion, and no such director, officer or employee shall be liable to the Company or the Company’s stockholders for breach of any fiduciary duty or duty of
loyalty or failure to act in (or not opposed to) the best interests of the Company or the derivation of any improper personal benefit by reason of the fact that (i) such director, officer or employee offered such corporate opportunity to Ipsen
or any of Ipsen’s Affiliates (rather than the Company) or did not communicate information regarding such corporate opportunity to the Company or (ii) Ipsen or any of Ipsen’s Affiliates pursues or acquires such corporate opportunity
for itself or directs such corporate opportunity to another person or does not communicate information regarding such corporate opportunity to the Company. To the fullest extent permitted by Section 122(17) of the DGCL, the Company hereby
renounces any interest or expectancy of the Company in, or in being offered an opportunity to participate in, (i) any such corporate opportunity, and (ii) any other potential transaction or matter that may be a corporate opportunity for
the Company and Ipsen or any of Ipsen’s Affiliates of which Ipsen or any of Ipsen’s Affiliates acquire knowledge, except to the extent that a director, officer or employee of Ipsen or any of Ipsen’s Affiliates acquires such knowledge
solely as a result of his or her position as a director, officer or employee of the Company. 

  

	(c)	The foregoing provisions of this Section 2.10 shall expire on the date on which Ipsen and its Affiliates shall no longer be entitled to designate at least one nominee for
director to the Board pursuant to the provisions of Section 2.4 hereof and no Person who is a Director or officer of the Company is also a director or officer of Ipsen or any of Ipsen’s Affiliates. Neither such expiration, nor the
alteration, amendment, change or modification of any provision of this Section 2.10 inconsistent with any provision of this Section 2.10 shall eliminate or reduce the effect of this Section 2.10 in respect of any matter occurring, or
any cause of action, suit or claim that, but for this Section 2.10, would accrue or arise, prior to such expiration, alteration, amendment, repeal or adoption. 

  

	(d)	For the purposes of this Section 2.10 only, “Company” shall mean the Company and all corporations, partnerships, joint ventures, associations and other entities in
which the Company beneficially owns (directly or indirectly) fifty percent or more of the outstanding voting stock, voting power or similar voting interests. 

  

	3.	MATTERS REQUIRING INVESTOR APPROVAL 

 Unless the Investor shall otherwise consent in writing, the Company hereby covenants and agrees with the Investor that it will not (and will cause its Subsidiaries not to) until the earlier of (i) five years from
the First Closing Date if at that time the Convertible Notes have not been converted in full; or (ii) the date of completion of a Triggering Sale (and absent the occurrence of the events in clauses (i) or (ii) of this Section 3,
the obligations of the Company set forth in this Section 3 shall continue indefinitely): 
  

	(a)	make, or permit any Subsidiary to make, any loan or advance to, or own any stock or other securities of, any Subsidiary or other corporation, partnership, or other entity unless it
is wholly owned by the Company other than Permitted Investments; 

  

 Page 15 

	(b)	adopt any plan or arrangement for the dissolution or liquidation of the Company; 

  

	(c)	enter into any material transaction or contract unless the transaction or contract would reflect the execution of a board-approved budget and would not be reasonably anticipated to
increase future budgets beyond current projections or, where no current projections have been formally prepared, beyond reasonably anticipated growth based on the Company’s recent operating performance; 

  

	(d)	directly or indirectly acquire, sell, lease or otherwise dispose of any property or assets other than in its ordinary course of business; provided that the Company shall not
in any event acquire, sell, lease or dispose of any property or assets with an aggregate value exceeding Five Million Dollars ($5,000,000) without the Investor’s written consent unless it is a Permitted Transfer; 

  

	(e)	merge into or consolidate with any other Person other than with the Company; 

  

	(f)	establish or approve an operating budget with anticipated research and development spending per calendar year in excess of the sum of (i) Twenty Five Million Dollars
($25,000,000) (with such research and development spending being determined on a GAAP basis) plus (ii) the amounts approved by the Joint Steering Committee established under the Somatuline Autogel License for spending related to the products of
Ipsen or its Affiliates; 

  

	(g)	enter into any transaction or agreement that would be reasonably likely to require an increase to research and development spending that would cause such spending to exceed the
aggregate amount specified in Section 3(f) hereof; 

  

	(h)	incur capital expenditures (on a GAAP basis) of more than Two Million Dollars ($2,000,000) in any given calendar year; 

  

	(i)	make any investment, through the direct or indirect holding of securities or otherwise, other than Permitted Investments; 

  

	(j)	 incur any Indebtedness (including extensions, renewals or refinancings and drawdowns under existing facilities), other than (i) Indebtedness evidenced by the
Convertible Notes, and (ii) Permitted Indebtedness; provided that, with respect to (ii), if following the incurrence of such Permitted Indebtedness, the total Indebtedness exceeds Two Million Five Hundred Thousand Dollars ($2,500,000)
(excluding trade payables in the ordinary course of business that are not more than 90 days past due), then such Permitted Indebtedness shall not be permitted unless immediately prior and after giving effect to the incurrence of such 

  

 Page 16 

	 	 
Permitted Indebtedness, the Company’s ratio of Net Indebtedness to EBITDA shall not exceed 1 to 1; 

  

	(k)	change the principal business of the Company, enter new lines of business (if such business or businesses are material to the Company or its Subsidiaries), or exit the current line
of business of the Company; provided that the Company shall be permitted to make reasonable extensions, developments or expansions to the business of the Company; 

  

	(l)	declare or pay any cash dividend on or redeem or repurchase any of its capital stock, directly or indirectly, other than acquisitions of Common Stock by the Company pursuant to
agreements which permit the Company to repurchase such shares upon termination of services to the Company; 

  

	(m)	except as required by any law, rule, regulation or listing standard to which the Company is subject or as contemplated by this Agreement, increase or decrease the authorized number
of directors constituting the Board or any committee thereof; 

  

	(n)	deregister the Common Stock under the Exchange Act; 

  

	(o)	amend, alter or repeal any provision of the Certificate of Incorporation or Bylaws of the Company; 

  

	(p)	enter into any transaction or agreement that would reasonably be determined, or is reasonably likely, to result in competition with any business (other than any businesses to which
the Investor and its Affiliates devote de minimis resources) of the Investor or its Affiliates carried on anywhere in the world at the time that such transaction or agreement is entered into by the Company or any of its Subsidiaries;

  

	(q)	hire a new chief executive officer; 

  

	(r)	change the Company’s fiscal year; 

  

	(s)	adopt, implement, amend, redeem, waive or otherwise terminate or cause to come into effect or fail to apply any takeover defense measures, including without limitation any
stockholder rights plan or similar plan or device, including the Rights Agreement, or any change of control provisions in contracts that would reasonably be expected to have a material impact on the Company’s operations, prospects or financial
condition or the value of the holding of the Investor or the Investor’s Affiliates in the Company in the event that the Investor and its Affiliates were to increase their aggregate holdings in the Company; provided that notwithstanding
the foregoing, the Investor hereby provides its consent to the execution and delivery of the Rights Agreement and the consummation of the transactions contemplated thereby; 

  

 Page 17 

	(t)	support, recommend or endorse any offer by any Person or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) to acquire either (i) the
beneficial ownership of more than 9.9 percent of the then-outstanding Common Stock where such Person or group is not already the beneficial owner of more than 9.9 percent of the then-outstanding Common Stock or (ii) any shares of Common Stock
where such Person or group currently beneficially owns more than 9.9 percent of the outstanding Common Stock and where such acquisition would increase the percentage of the outstanding Common Stock currently beneficially owned by such Person or
group, unless (A) the Company has at least 30 days prior to such support, recommendation or endorsement being given by the Company, notified the Investor and Ipsen in writing of its intention to give such support, recommendation or endorsement
and such notice shall set forth in reasonable detail the terms of such offer and any conditions upon which the Company shall give such support, recommendation or endorsement and (B) for the duration of such 30 day period the Board has used its
reasonable best efforts to discuss and negotiate with Ipsen in good faith the terms of an alternative offer by Ipsen and/or its Affiliates; 

  

	(u)	other than with respect to the Series A Junior Participating Preferred, create any additional class or series of shares of stock unless the same ranks junior to the Common Stock
with respect to the distribution of assets on the liquidation, dissolution or winding up of the Company and with respect to the payment of dividends and redemption rights, or increase the authorized number of shares of Common Stock or increase the
authorized number of shares of any additional class or series of shares of stock unless the same ranks junior to the Common Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Company and with
respect to the payment of dividends and redemption rights, or create or authorize any obligation or security convertible into shares of any class or series of stock, unless in favor of the Investor, unless the same ranks junior to the Common Stock
with respect to the distribution of assets on the liquidation, dissolution or winding up of the Company and with respect to the payment of dividends and redemption rights; 

  

	(v)	issue, sell, pledge, grant, transfer or otherwise dispose of (or authorize the issuance, sale, pledge, grant, transfer or other disposition) in respect of (A) any shares of the
Company’s capital stock or any other securities convertible into or exchangeable or exercisable for any shares of such capital stock (or derivative securities thereof), or (B) any options, warrants or other rights of any kind to acquire
any shares of such capital stock, or any other ownership interest (including, without limitation, any phantom interest) of the Company, other than: 

  

	 	(i)	 issues or sales of shares of the Company’s capital stock the proceeds of which will be used solely for general working capital and research and development
purposes, provided that such issues or sales (A) are made only after the second anniversary of the Effective Date and (B) do not exceed in aggregate Twenty Five Million Dollars ($25,000,000) in cash 

  

 Page 18 

	 	 
(except in respect of New Securities issued pursuant to Section 5.1(d)(iii) in connection with strategic transactions involving the Company and other
entities, in which case in value) in any three year period; 

  

	 	(ii)	issues or sales of shares of the Company’s capital stock after January 1, 2007, the proceeds of which shall be reserved for potential repayment of the Convertible Notes,
provided that such issues and sales are made, and the proceeds of which are maintained, in compliance with Section 5.2 of this Agreement; 

  

	 	(iii)	issues or sales pursuant to options, warrants or other Common Stock grants or purchase rights issued or to be issued after the date hereof to employees or directors of the Company
or any of its Subsidiaries or to consultants of the Company or any of its Subsidiaries (provided that such consultants are not granted options, warrants or other rights exercisable for more than, or Shares of Common Stock greater than, 75,000
shares of Common Stock in aggregate per year and the issuance of such options, warrants, other rights or shares to such consultants shall be for services and in amounts that are consistent with past issuances) pursuant to any plan, agreement, or
arrangement approved by the Board; and 

  

	 	(iv)	issues or sales pursuant to any rights or agreements, options, warrants or convertible securities outstanding as of the date of this Agreement; or 

  

	(w)	grant to any party or issue any security the terms of which contain any preemptive right. 

 Notwithstanding the foregoing, in the event that any action set forth in this Section 3 is approved by the Board, including the affirmative vote of the Investor Directors, the Company shall as soon as reasonably
practicable following such approval, provide the Investor with written notice of such approval and unless the Investor, within ten (10) Business Days after receipt of such notice, notifies the Company in writing that it does not consent to such
action, the Investor’s written consent to such action shall be deemed to have been given. 
 4. CEO TERMINATION
CONSULTATION 
 Prior to a termination or removal of the chief executive officer of the Company, the Company
shall, for so long as the provisions of Section 3 are in effect, provide notice to the Investor of such proposed termination or removal and allow the Investor or an Affiliate of the Investor to send a representative to a meeting of the Board
for consultation regarding the reasons for such proposed termination or removal. 
  

 Page 19 

	5.	ISSUE OF NEW SECURITIES 

  

	5.1	Right of First Offer 

 Subject to the terms and conditions specified
in this Section 5, and applicable securities laws, in the event the Company proposes to offer or sell any New Securities prior to the earlier of (i) five years from the First Closing Date if at that time the Convertible Notes have not been
converted in full and (ii) the date of completion of a Triggering Sale (and absent the occurrence of the events in clauses (i) or (ii) above of this Section 5.1, the obligations of the Company and the rights of the Investor and
the Investor’s Affiliates set forth in this Section 5 shall continue indefinitely), the Company shall first make an offering of such New Securities to the Investor in accordance with the following provisions of this Section 5. The
Investor shall be entitled to apportion the right of first offer hereby granted it among itself and its Affiliates in such proportions as it deems appropriate. 
  

	(a)	The Company shall deliver a notice, in accordance with the provisions of Section 8.6 hereof, (the Offer Notice) to the Investor stating (i) its bona fide
intention to offer such New Securities, (ii) the number of such New Securities to be offered and sold, and (iii) the price (or in the case of a proposed public offering the minimum and maximum price in a range not to exceed the greater of
$2.00 or 20 percent of the closing price of the Common Stock on the trading day prior to the date of the Offer Notice (the Public Offer Price Range)) and terms, if any, upon which it proposes to offer such New Securities.

  

	(b)	 By written notification received by the Company, within ten (10) calendar days after mailing of the Offer Notice, the Investor may elect to purchase or obtain,
at the price and on the terms specified in the Offer Notice (or, in the case of a proposed public offering, at the public offering price), up to that portion of such New Securities which equals (1) the number of shares of Common Stock deemed
issued and held by the Investor, which shall include all securities issuable to the Investor upon conversion of the Convertible Notes, exercise of the Warrant for the number of Warrant Shares for which the Warrant is then-exercisable, or otherwise
exercisable or exchangeable for, shares of Common Stock) divided by (2) the total number of shares of Common Stock of the Company then outstanding (assuming full conversion and exercise of the Convertible Notes, the Warrant for the number of
Warrant Shares for which the Warrant is then-exercisable and any other vested and in-the-money convertible or exercisable securities), multiplied by (3) the number of New Securities being issued; provided that in the case of a proposed
public offering such written notice of the Investor (i) may specify an alternative price range to that of the Public Offer Price Range at which the Investor elects to purchase or obtain such portion of such New Securities so long as such
alternative price range falls within the Public Offer Price Range, (ii) may specify varying amounts of such portion of such New Securities that the Investor elects to purchase at various prices that fall within the Public Offer Price Range or
such alternative price range and (iii) shall constitute a non-binding indication of 

  

 Page 20 

	 	 
its intention to purchase such portion of such New Securities within the Public Offer Price Range or such alternative price range (an Indication
Notice) and the Investor shall be under no obligation to provide any commitment regarding its Indication Notice until such time as all participants in the public offering irrevocably commit. For purposes of this Section 5.1(b),
“in-the-money” shall mean that the exercise or conversion price per share of such convertible or exercisable securities exceeds the closing sale price of the Common Stock, as reported by Bloomberg L.P., on the date of the Offer Notice. In
the case of a non-public offering, in no event shall an election by the Investor pursuant to this Section 5.1(b) to purchase or obtain up to such portion of such New Securities commit it to purchase more than its pro rata share (as determined
above) of the New Securities sold without the Investor’s consent. 

  

	(c)	The Company may, during the ninety (90) day period following the expiration of the period provided in Section 5.1(b) hereof, offer the remaining unsubscribed portion of
such New Securities (or in the case of a proposed public offering the portion of such New Securities for which the Investor has not indicated an interest pursuant to Section 5.1(b) above) (collectively, the Publicly Available
Securities) to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the Publicly Available
Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Publicly Available Securities shall not be offered
unless first reoffered to the Investor in accordance with this Section 5. 

  

	(d)	 The right of first offer in this Section 5 shall not be applicable to (i) shares of Common Stock and/or options, warrants or other Common Stock purchase
rights and the Common Stock issued pursuant to such options, warrants or other rights issued or to be issued after the date hereof to employees or directors of the Company, consultants of the Company or any of its Subsidiaries (provided that
such consultants are not granted options, warrants or other rights exercisable for more than, or shares of Common Stock greater than, 75,000 shares of Common Stock in aggregate per year and the issuance of such options, warrants, other rights or
shares to such consultants shall be for services and in amounts that are consistent with past issuances) pursuant to any plan, agreement, or arrangement approved by the Board; (ii) shares of Common Stock issued or issuable pursuant to any
rights or agreements, options, warrants or convertible securities outstanding as of the date of this Agreement and stock issued pursuant to any such rights or agreements granted after the date of this Agreement, so long as the right of first offer
established by this Section 5 was complied with, waived, or was inapplicable pursuant to any provision of this Section 5.1(d) with respect to the initial sale or grant by the Company of such rights or agreements; (iii) any New
Securities issued in connection with strategic transactions involving the Company and other entities, including without limitation, joint venture, licensing, 

  

 Page 21 

	 	 
collaboration, manufacturing, development, marketing or distribution arrangements, if (A) the consideration to be paid therefor shall not consist solely
of cash and (B) the Company and the Investor shall not, after a period of good faith negotiation, reasonably agree on the price to be paid by the Investor for such New Securities in the exercise of the Investor’s right of first offer
hereunder; provided that any issuances pursuant to this subclause (iii) shall be without prejudice to any obligation of the Company to obtain the Investor’s consent for such issuances in accordance with Section 3(v) hereof; and
(iv) any New Securities issued in connection with any stock split, stock dividend or recapitalization by the Company. 

  

	(e)	The right of first offer set forth in this Section 5 may not be assigned or transferred except that such right is assignable by the Investor to any Affiliate of the Investor.
To the extent that any New Securities are proposed to be issued in a public offering, the New Securities to be purchased by the Investor pursuant to Section 5.1(b) hereof shall be purchased in such public offering to the extent permissible
under applicable securities laws or in a related private placement to the extent not so permissible. 

  

	5.2	Proceeds of Additional Securities Issued in Connection with the Repayment of the Convertible Notes 

 On each occasion that the Company issues or sells any shares of the Company’s capital stock pursuant to Section 3(v)(ii) hereof, the proceeds of such issue or sale shall be held in trust for the benefit of
the Investor in a separate account, apart from all other funds of the Company, and shall only be released from such account (i) for the purposes of paying, upon demand of the Investor, amounts due and payable under the Convertible Notes in
accordance with the terms thereof, (ii) following a Triggering Sale, in accordance with the provisions of Sections 8.1(c), (d), (e) and (f) of the Convertible Notes and (iii) to the Company following each conversion under a
Convertible Note, such that following each conversion the amount remaining in such account shall be no less than the aggregate amount (if any) of principal and interest that remains unconverted under the Convertible Notes. 
  

	6.	FINANCIAL REPORTING COVENANTS 

  

	6.1	Reporting Information 

 From the First Closing Date until the
occurrence of a Triggering Sale (if any), the Company shall provide to the Investor within the deadlines specified in Section 6.4 below the following financial reporting information in relation to the Company, which together shall constitute
the Reporting Information: 
  

	(a)	the Company’s consolidated balance sheet; 

  

	(b)	the Company’s consolidated income statement; 

  

 Page 22 

	(c)	the Company’s consolidated cash flow statement; 

  

	(d)	the Company’s statement of changes in stockholders’ equity; 

  

	(e)	inter-company transactions and balances between the Company and any of its Subsidiaries, on the one hand, and Ipsen and its Affiliates, on the other hand; 

 

	(f)	all relevant information relating to the Company’s accounting treatment of the Convertible Notes in the Company’s consolidated balance sheet and income statement;

  

	(g)	details of any restatements or presentation changes relating to the Company’s transition from GAAP to International Financial Reporting Standards (IFRS);

  

	(h)	a statement showing the transition between GAAP and IFRS for the Company’s consolidated balance sheet, consolidated income statement, consolidated cash flow statement and
stockholders’ equity statement; and 

  

	(i)	a statement setting out the then-current Variable Amount (as such term is defined in the Warrant), together with the calculations used by the Company to determine such Variable
Amount and such other information and documentation as the Investor may reasonably request to verify such calculations, such statement and calculations to be provided on a quarterly basis. 

  

	6.2	Purchase Accounting 

 No later than 30 Business Days after the First
Closing Date, the Company shall provide the Investor with detailed information on the valuation of its assets and liabilities, according to both GAAP and IFRS, as at the First Closing Date to enable the Investor and its Affiliates to perform its
purchase accounting. No later than 10 Business Days after the end of each subsequent quarter, the Company shall provide the Investor with sufficient information regarding any material change to such valuations that have occurred as at the end of
each such subsequent quarter end to enable the Investor and its Affiliates to book appropriate IFRS compliant adjustments to the fair value of such assets and liabilities. 
  

	6.3	Variable Amount Notification; Dilution Amount Notification 

  

	(a)	No later than 10 Business Days after the end of each quarter, the Company shall provide the Investor with a statement setting out the Variable Amount (as such term is defined in the
Warrant) as at such quarter end, together with the calculations used by the Company to determine such Variable Amount and such other information and documentation as the Investor may reasonably request to verify such calculations.

  

	(b)	 No later than 5 Business Days after receipt of a written request by the Investor, the Company shall provide the Investor with a statement setting out the Dilution
Amount as at the date of such request, together with the calculations used by the 

  

 Page 23 

	 	 
Company to determine such Dilution Amount and such other information and documentation as the Investor may reasonably request to verify such calculations.

  

	6.4	Deadlines for Reporting Information 

  

	(a)	All Reporting Information for the Company’s 2005 financial year and for the first quarter and the first half of 2006 shall be prepared by the Company in accordance with IFRS
and provided to the Investor prior to November 15, 2006, together with an IFRS audit opinion from the Company’s auditors on the Company’s IFRS restated financial statements (an IFRS Audit Opinion) for the 2005 financial
year and an IFRS review opinion from the Company’s auditors on the Company’s IFRS restated financial statements (an IFRS Review Opinion) for the first quarter and the first half of 2006. 

  

	(b)	All Reporting Information for the Company’s third quarter of 2006 shall be shall be prepared by the Company in accordance with GAAP and provided to the Investor no later than
15 Business Days after September 30, 2006, and the Company’s Form 10-Q and an SAS 100 Review Report from the Company’s auditors on the GAAP financial statements in such Reporting Information shall be provided to the Investor no later
than 30 Business Days after September 30, 2006. All Reporting Information for the Company’s third quarter of 2006 shall be prepared by the Company in accordance with IFRS and such Reporting Information and an IFRS Review Opinion for such
financial period shall be provided to the Investor by March 31, 2007. 

  

	(c)	All Reporting Information for the Company’s full year 2006 shall be prepared by the Company in accordance with IFRS and provided to the Investor no later than 20 Business Days
after December 31, 2006 and an IFRS Audit Opinion for such financial period shall be provided to the Investor no later than 32 Business Days after December 31, 2006. 

  

	(d)	All Reporting Information for the Company’s first quarter of 2007 shall be prepared by the Company in accordance with IFRS and provided to the Investor no later than 12
Business Days after March 31, 2007 and an IFRS Review Opinion for such financial period shall be provided to the Investor no later than 27 Business Days after March 31, 2007. 

  

	(e)	All Reporting Information for the Company’s second quarter of 2007 shall be prepared by the Company in accordance with IFRS and provided to the Investor no later than 10
Business Days after June 30, 2007 and an IFRS Review Opinion for such financial period shall be provided to the Investor no later than 25 Business Days after June 30, 2007. 

  

	(f)	All Reporting Information for the Company’s third quarter of 2007 shall be prepared by the Company in accordance with IFRS and provided to the Investor no later than 10
Business Days after September 30, 2007 and an IFRS Review Opinion for such financial period shall be provided to the Investor no later than 25 Business Days after September 30, 2007. 

  

 Page 24 

	(g)	All Reporting Information for the Company’s full year 2007 shall be prepared by the Company in accordance with IFRS and provided to the Investor no later than 12 Business Days
after December 31, 2007 and an IFRS Audit Opinion for such financial period shall be provided to the Investor no later than 27 Business Days after December 31, 2007. 

  

	(h)	After December 31, 2007: 

  

	 	(i)	all Reporting Information for the Company’s first quarter, half year and third quarter shall be prepared by the Company in accordance with IFRS and provided to the Investor no
later than 10 Business Days after the end of such period and an IFRS Review Opinion for each such financial period shall be provided to the Investor no later than 25 Business Days after the end of such period; and 

  

	 	(ii)	all Reporting Information for the Company’s full year shall be prepared by the Company in accordance with IFRS and provided to the Investor no later than 12 Business Days after
the end of such period and an IFRS Audit Opinion for each such financial period shall be provided to the Investor no later than 25 Business Days after the end of such period. 

  

	7.	COVENANTS OF THE INVESTOR 

  

	7.1	Lock-up Period 

  

	(a)	Without the prior written consent of the Company, the Investor shall not, nor shall it permit any of its Affiliates to, directly or indirectly, offer, sell, contract to sell, pledge
or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise)), or
establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act with respect to, any shares of Common Stock or any securities convertible into, or
exercisable or exchangeable for, such Common Stock, or publicly announce an intention to effect any such transaction, for the one-year period commencing on the date of the First Closing, other than (i) transfers to Affiliates of the Investor or
(ii) the exercise or conversion of the Warrant or the Convertible Notes. 

  

	(b)	 Without the prior written consent of the Company, neither the Investor nor Ipsen shall, directly or indirectly, sell, transfer or dispose of any of the capital
stock of any wholly-owned Subsidiary of Ipsen or the Investor that holds shares of Common Stock for the one-year period commencing on the date of the First 

  

 Page 25 

	 	 
Closing, other than sales or transfers to another wholly-owned Subsidiary of Ipsen or the Investor. This Section 7.1(b) shall not apply to such a sale,
transfer or disposal the primary purpose of which is a bona fide sale, transfer or disposal of all or at least the part of Ipsen’s business that is reasonably related to the Somatuline Autogel License and Increlex License and not primarily the
sale, transfer or disposal of the shares of Common Stock held by such Subsidiary, provided that the transferee in any such sale, transfer or disposal agrees to be bound by the terms of Section 7.1 hereof. 

  

	(c)	Purported sales, transfers or dispositions of shares of Common Stock that are not in compliance with this Section 7.1 shall be void and shall be of no force or effect.

  

	7.2	Restriction on Block Transfers 

 Without the prior written consent
of the Company, the Investor shall not, nor shall it permit any of its Affiliates to, directly or indirectly, sell, transfer or dispose of any shares of Common Stock to any Person or Persons known to the Investor to be a “group” (within
the meaning of Section 13(d)(3) of the Exchange Act) if, after giving effect to such sale, transfer or disposition, such Person or such group, as the case may be, would, to the Investor’s knowledge (and, in the case of a private sale,
after inquiry), beneficially own more than 14.9 percent of the Company’s then-outstanding shares of Common Stock. 
  

	7.3	Compliance with Securities Laws 

 The Investor shall not, directly
or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any shares of Common Stock to any Person pursuant to this Agreement except in compliance with the
Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder. 
  

	7.4	Compulsory Acquisition. 

 If at any time the Investor and/or its
Affiliates beneficially own ninety percent or more of the then-outstanding Common Stock such that, upon all such Common Stock being held either by the Investor or an Affiliate of the Investor, the Investor or such Affiliate is entitled to effect a
merger with the Company in accordance with the provisions of Section 253 of the Delaware General Corporation Law, the Investor shall, or shall cause such Affiliate to, effect such a merger with the Company. 
  

	7.5	The Standstill Period 

 During the Standstill Period, without the
prior written consent of the Company, the Investor shall not, nor shall it permit any of its Affiliates to, nor shall Ipsen or any of its Affiliates agree, or advise, assist, encourage, propose (publicly or otherwise), provide information or provide
financing to others, or permit its Affiliates to agree, or to advise, assist, encourage, propose (publicly or otherwise), provide information or provide 

  

 Page 26 

 
financing to others, to, individually or collectively, directly or indirectly, acquire or offer to acquire or agree to acquire from any Person other than the
Company, directly or indirectly, by purchase, by making, effecting, initiating or participating in any tender offer, exchange offer, merger, business combination, recapitalization, restructuring, liquidation, dissolution or extraordinary transaction
involving the Company, through the acquisition of control of another Person, by depositing any shares of Common Stock into a voting trust or subjecting any shares of Common Stock to any arrangement or agreement with respect to the voting of such
securities, by joining a partnership, limited partnership or other “group” (within the meaning of Section 13(d)(3) of the Exchange Act) or otherwise, beneficial ownership of any equity securities of the Company, or direct or indirect
rights (including convertible securities) or options to acquire such beneficial ownership (or otherwise act in concert with respect to any such securities, rights or options with any Person that so acquires, offers to acquire or agrees to acquire);
provided that no such acquisition, offer to acquire or agreement to acquire shall be deemed to occur solely due to (a) a stock split, reverse stock split, reclassification, reorganization or other transaction by the Company affecting any
class of the outstanding capital stock of the Company generally or (b) a stock dividend or other pro rata distribution by the Company to holders of its outstanding capital stock. 
  

	7.6	The Regulated Purchase Period 

 During the Regulated Purchase
Period, without the prior written consent of the Company, the Investor shall not, nor shall it permit any of its Affiliates to, nor shall Ipsen or any of its Affiliates agree, or advise, assist, encourage, propose (publicly or otherwise), provide
information or provide financing to others, or permit its Affiliates to agree, or to advise, assist, encourage, propose (publicly or otherwise), provide information or provide financing to others, to, individually or collectively, directly or
indirectly, acquire or offer to acquire or agree to acquire from any Person other than the Company, directly or indirectly, by purchase, by making, effecting, initiating or participating in any tender offer, exchange offer, merger, business
combination, recapitalization, restructuring, liquidation, dissolution or extraordinary transaction involving the Company, through the acquisition of control of another Person, by depositing any shares of Common Stock into a voting trust or
subjecting any shares of Common Stock to any arrangement or agreement with respect to the voting of such securities, by joining a partnership, limited partnership or other “group” (within the meaning of Section 13(d)(3) of the
Exchange Act) or otherwise, beneficial ownership of any equity securities of the Company, or direct or indirect rights (including convertible securities) or options to acquire such beneficial ownership (or otherwise act in concert with respect to
any such securities, rights or options with any Person that so acquires, offers to acquire or agrees to acquire) other than Permitted Offers and Acquisitions; provided that no such acquisition, offer to acquire or agreement to acquire shall
be deemed to occur solely due to (a) a stock split, reverse stock split, reclassification, reorganization or other transaction by the Company affecting any class of the outstanding capital stock of the Company generally or (b) a stock
dividend or other pro rata distribution by the Company to holders of its outstanding capital stock. 
  

 Page 27 

	8.	MISCELLANEOUS 

  

	8.1	Effectiveness of Agreement. 

 This Agreement shall become effective
upon the Effective Date. 
  

	8.2	Assignment 

 This Agreement and the rights and obligations hereunder
shall not be assigned, delegated, or otherwise transferred (whether by operation of law, by contract, or otherwise) without the prior written consent of the other party hereto; provided that the Investor may, without obtaining the prior
written consent of the Company, assign, delegate, or otherwise transfer its rights and obligations hereunder to any Affiliates of the Investor and following such assignment, such Affiliates shall be deemed to be an “Investor” for the
purposes of this Agreement and any reference to Investor in this Agreement shall automatically be deemed to include a reference to such Affiliates (provided that in such case the Investor shall not be relieved of its obligations hereunder).
The Company shall execute such acknowledgements of such assignments in such forms as the Investor may from time to time reasonably request. Any attempted assignment, delegation, or transfer in violation of this Section 8.2 shall be void and of
no force or effect. Each of the Investor and any Affiliate of the Investor to whom rights and obligations hereunder have been assigned pursuant to this Section 8.2 hereby agrees and acknowledges that Ipsen is hereby appointed as its agent in
connection with the exercise of its rights and remedies under this Agreement and Ipsen hereby accepts such appointment. 
  

	8.3	Governing Law 

  

	(a)	This Agreement shall be governed by and construed in accordance with the General Corporation Law of the State of New York, without regard to its principles of conflicts of laws.

  

	(b)	Each party irrevocably submits to the exclusive jurisdiction of the New York Courts for the purposes of any proceeding arising out of or relating in any way whatsoever (whether in
contract, tort or otherwise) to this Agreement only. Each party agrees to commence any such proceeding in the United States District Court for the Southern District of New York or if such proceeding may not be brought in such court for
jurisdictional reasons, then in the Supreme Court of the State of New York, New York County. Each party further agrees that service of any process, summons, notice or document by registered or certified mail (or any substantially similar form of
mail), postage paid, to such party’s respective address set forth in Section 8.6 shall be effective service of process with respect to any matters to which it has submitted to jurisdiction in this Section 8.3(b). Each party
irrevocably and unconditionally waives any objection to the laying of venue of any such proceeding in any New York Court, and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such New York
Court that any such proceeding brought in any such New York Court has been brought in an inconvenient forum, or should be dismissed or transferred on such basis. 

  

 Page 28 

	(c)	EACH PARTY HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING ARISING OUT OF OR RELATING IN
ANY WAY WHATSOEVER (WHETHER IN CONTRACT, TORT OR OTHERWISE) TO THIS AGREEMENT ONLY. 

  

	8.4	Counterparts 

 This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

	8.5	Titles and Subtitles 

 The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  

	8.6	Notices 

  

	(a)	if to the Company, to: 

 Tercica, Inc. 
 2000 Sierra Point Parkway, Suite 400 
 Brisbane, California 94005 
 USA 
 Attention: General Counsel 
 Facsimile: (650) 624-4940 
 with a copy (which shall not constitute notice) to: 
 Cooley Godward LLP 
 Five Palo Alto Square 
 3000 El Camino Real 
 Palo Alto 
 California 94306 
 United States of America

 Attention: Suzanne Sawochka Hooper 
 Facsimile: (650) 849-7400 
 or to such other person, at such other place or to such other facsimile number as the Company shall
designate to the Investor and Ipsen in writing; and 
  

 Page 29 

	(b)	if to the Investor or Ipsen, to: 

 Ipsen S.A 
 42, rue du Docteur Blanche 
 75016 Paris

 France 
 Attention: General
Counsel 
 Facsimile: + 331 44 96 11 88 
 with a copy (which shall not constitute notice) to: 
 Freshfields Bruckhaus Deringer LLP 
 520 Madison Avenue, 34th Floor 
 New York, NY 10022 
 United States of America 
 Attention: Matthew
Jacobson, Esq. 
 Facsimile: +1 212-277-4001 
 or to such other person, at such other place or to such other facsimile number as the Investor shall designate to the Company in writing. All notices, requests, consents and other communications hereunder shall be in
writing and shall be delivered by facsimile (with receipt confirmed by telephone) or nationally recognized overnight express courier postage prepaid. 
  

	8.7	Costs of Enforcement 

 If any Party to this Agreement seeks to
enforce its rights under this Agreement by legal proceedings, the non-prevailing Party shall pay all costs and expenses incurred by the prevailing Party, including, without limitation, all reasonable attorneys’ fees. 
  

	8.8	Amendments and Waivers 

  

	(a)	Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Investor and, in respect of Sections 2.7, 2.9, 2.10, 7 and 8 of this Agreement only, Ipsen. No waivers of or exceptions to any term, condition or provision of this Agreement, in
any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision. 

  

	(b)	Neither the Investor nor Ipsen nor any Affiliate thereof shall seek to amend or waive the terms of this Agreement or the other Transaction Documents by seeking stockholder consent
without prior approval of the then-current Board. 

  

 Page 30 

	8.9	Severability 

 The invalidity or unenforceability of any provision
hereof shall in no way affect the validity or enforceability of any other provision. 
  

	8.10	Entire Agreement 

 This Agreement, together with the other
Transaction Documents, constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the
parties are expressly cancelled. None of the rights of the Investor or Ipsen contained herein are or shall be contingent on anything not stated herein and in particular are not contingent on the approval by the stockholders of the Company of the
Bylaw Amendments or the Certificate of Incorporation Amendments. 
  

	8.11	Delays or Omissions 

 No delay or omission to exercise any right,
power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to
be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

  

	8.12	No Limitation on Stockholder Rights 

 Except as expressly provided
herein, nothing in this Agreement shall in any way affect any stockholder’s ability to vote or act its shares of the Company’s capital stock (including without limitation nominating additional Directors or voting for different Directors,
soliciting proxies or participating in solicitations). 
  

	8.13	Seeking Approval of Certificate of Incorporation Amendments and Bylaw Amendments 

 In the event that any of the Certificate of Incorporation Amendments or Bylaw Amendments have not been approved by the Company’s stockholders at the Company Stockholders’ Meeting, the Company shall,
following the written request of the Investor, duly solicit, using all commercially reasonable efforts (including recommending to the Company’s stockholders that they give their approval), the approval of the Company’s 

  

 Page 31 

 
stockholders for such Certificate of Incorporation Amendments and/or Bylaw Amendments at the Company’s next meeting of stockholders of the Company.

 8.14 Specific Performance, Injunctive and Other Equitable Relief 
 Each Party acknowledges and agrees that the other Parties would be damaged irreparably in the event any provision of this Agreement is not performed in accordance with its specific terms or otherwise is breached, so
that a Party shall be entitled to injunctive relief to prevent breaches of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in addition to any other remedy to which such Party may be entitled, at law or
in equity. In particular, the Company acknowledges that in the event it breaches this Agreement, money damages would be inadequate and the Investor and Ipsen would have no adequate remedy at law, so that the Investor and Ipsen shall have the right,
in addition to any other rights and remedies existing in their favor, to enforce their rights and the Company’s obligations hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable
relief. 
 [SIGNATURES APPEAR ON FOLLOWING PAGE] 
  

 Page 32 

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

			
	TERCICA, INC.
		
	By:	 	/s/ John A. Scarlett, M.D.
		 	Name: John A. Scarlett, M.D.
		 	Title: CEO and President
	
	SURAYPHARM
		
	By:	 	/s/ Claire Giraut
		 	Name:
		 	Title:

 For the purposes of Sections 2.7, 2.9, 2.10, 7 and 8 hereof only, 
  

			
	IPSEN, S.A.
		
	By:	 	/s/ Claire Giraut
		 	Name:
		 	Title:

  

 [Signature Page to Affiliation Agreement] 

 ANNEX A 
 THE STRATEGIC PLANNING COMMITTEE CHARTER 
  

	•	 	 The Strategic Planning Committee’s role is to: 

  

	 	•	 	 review all strategic issues affecting the Company with regard to research and development, industrial, manufacturing, commercial and financial matters, and
alliances and partnerships of all types; 

  

	 	•	 	 review and recommend to the Board an annual three-year strategic plan; 

  

	 	•	 	 review the Company’s operating plans and allocation of resources and their relationship to the Company’s strategic plans and make recommendations relating
thereto; 

  

	 	•	 	 review any major investment, asset sale, restructuring, alliance or partnership projects; and 

  

	 	•	 	 submit reports, proposals and recommendations of all issues falling within its scope of responsibility. 

  

	•	 	 The Strategic Planning Committee meets at least two times a year. Meetings are convened by the committee’s chairman. 

  

	•	 	 The Strategic Planning Committee may call upon the Company’s senior executives for assistance. It may request sight of any internal reports, documents and
research drawn up by the Company and commission any external technical reports at the Company’s expense, subject to the usual confidentiality undertakings. 

 REGISTRATION RIGHTS AGREEMENT 
 THIS REGISTRATION RIGHTS AGREEMENT (this Agreement), dated as of October 13, 2006, by and between Tercica, Inc., a Delaware corporation (the Company), Ipsen, S.A., a French
société anonyme (Ipsen) and Suraypharm, a French société par actions simplifiée, a subsidiary of Ipsen (Suraypharm and, together with Ipsen and the Company, the
Parties). 
 WHEREAS, Ipsen, Suraypharm and the Company have entered into certain investment documents including a Stock Purchase and
Master Transaction Agreement, dated as of July 18, 2006 (the Purchase Agreement), and the Company has delivered, or agreed to deliver subject to specified conditions, the Warrant and the Convertible Notes (as those terms are
defined in the Purchase Agreement); 
 WHEREAS, the Parties desire to enter into this Agreement in order to, among other things, set forth the rights
of the Investors (as defined below) to cause the Company to register the Registrable Securities (as defined below) with the U.S. Securities and Exchange Commission (the SEC) for resale pursuant to the U.S. Securities Act of 1933, as
amended (the Securities Act); and 
 WHEREAS, the execution and delivery of this Agreement is a condition to the Parties’
obligations to close the transactions contemplated by the Purchase Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises, agreements
and covenants set forth herein, the Parties hereby agree as follows: 
 Section 1. Definitions and Interpretation. 
 (a) Each of the following terms, when used in this Agreement, shall have the meaning set forth below: 
 Affiliate means, with respect to any Person, any Person that (directly or indirectly) controls, is controlled by or is under common control
with such Person (and, for the purposes hereof, the term control means the power to direct the management and policies of such Person (directly or indirectly), whether through ownership of securities, by contract or otherwise (and the
terms controlling and controlled have the meanings correlative to the foregoing)). 
 Affiliation Agreement
has the meaning set forth in the Purchase Agreement. 
 Agreement has the meaning set forth in the preamble.

 Business Day means in respect of determining a date related to registration contemplated hereunder, any day on which the
principal offices of the SEC in Washington, D.C. are open to accept filings, and, in all other cases, any day on which banks are not required or authorized by applicable law to close in the City of New York. 
 Company has the meaning set forth in the preamble. 
 Company Indemnified Person has the meaning set forth in Section 5(b). 

 Company Common Stock means the common stock, par value $0.001 per share, of the Company.

 Effectiveness Deadline has the meaning set forth in Section 2(a). 
 Exchange Act means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

Filing Deadline has the meaning set forth in Section 2(a). 
 Holder means any person owning of record Registrable Securities. 
 Holder Indemnified Persons has the meaning set forth in Section 5(a). 
 Indemnified Party has the meaning set forth in Section 5(c). 
 Indemnifying Party has the meaning set forth in Section 5(c). 
 Initiating Holders has the meaning set forth in Section 2(a). 
 Ipsen has the meaning set forth in the preamble. 
 Investors shall mean Ipsen, Suraypharm and each Affiliate thereof. 
 IRA means
that certain Amended and Restated Investors’ Rights Agreement, dated as of July 9, 2003, as amended, by and among the Company and certain of its stockholders.  
 IRA Registrable Securities has the meaning ascribed to the term “Registrable Securities” under the IRA. 
 Kingsbridge Registration means any registration pursuant to that certain Registration Rights Agreement, dated as of October 14, 2005,
by and between the Company and Kingsbridge Capital Limited. 
 Material Event has the meaning set forth in
Section 4(a)(xi). 
 Most Recent SEC Report has the meaning set forth in Section 2(d). 
 Non-Organized Sales means sales that are not Organized Sales. 
 Non-Organized Sale Limit has the meaning set forth in Section 2(c). 
 Non-Registration Period means the one-year period beginning on the second anniversary of the effectiveness of the first registration by the
Company pursuant to Section 2; provided, however, that the beginning of such period shall be extended by such number of days as (i) pursuant to Section 2(a)(v), the Company is not obligated to effect a registration as a result
of a public offering commenced within 90 days prior to the second anniversary of the effectiveness of such first registration (as extended by clauses (i) and (ii) of this paragraph), and (ii) if such first registration is a Shelf
Registration Statement, the ability of the Initiating Holders thereof to sell 

  

 Page 2 

 
shares thereunder is suspended pursuant to Section 4(a)(xi) prior to the second anniversary of the effectiveness of such first registration (as extended
by clauses (i) and (ii) of this paragraph). 
 Note Shares means the shares of Company Common Stock issued upon
conversion of the Convertible Notes (as such term is defined in the Purchase Agreement). 
 Organized Sales means any of the
following: (i) any underwritten offering with a minimum aggregate offering price, net of underwriting discounts and commissions, of at least $10 million; (ii) any offering of Registrable Securities in connection with which the holders of
Registrable Securities utilize a placement agent or agents with a minimum anticipated aggregate offering price, net of placement agent fees and commissions, of at least $10 million; and (iii) sales to a single purchaser or group of purchasers
in a single transaction or series of related transactions with a minimum aggregate offering price of at least $5 million. 
 Person means any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other business organization, trust, union, association or governmental entity. 
 Purchase Agreement has the meaning set forth in the recitals to this Agreement. 
 register (and registered and registration) means a registration effected by preparing and filing a registration
statement in compliance with the Securities Act with the SEC, and the declaration or ordering of the effectiveness by the SEC of, or automatic effectiveness of, such registration statement. 
 Registrable Securities means (i) the Shares, the Note Shares and the Warrant Shares, and (ii) all shares of Company Common Stock
related to the Shares, the Note Shares and the Warrant Shares issued in connection with any exchange, conversion, stock split, stock dividend, distribution, recapitalization or similar event of the Company; provided, however, that Registrable
Securities shall not include any of the above shares (i) sold by a person to the public either pursuant to a Registration Statement or Rule 144 under the Securities Act, (ii) sold to any person in a private transaction in which the right
the cause the Company to register Registrable Securities is not assigned pursuant to Section 6, and (iii) held by a Holder during any such period that all Registrable Securities held by such Holder could be sold without restriction under
Rule 144 under the Securities Act during the following ninety day period. 
 Registration Statement means a registration
statement under the Securities Act covering the registration of all or any portion of the Registrable Securities. 
 Rights Holder
Registration means any registration pursuant to Sections 2.5 or 2.7 of the IRA. 
 SEC has the meaning set forth in the
recitals. 
 Securities Act has the meaning set forth in the recitals. 
 Shares means the shares of Company Common Stock issued pursuant to the Purchase Agreement. 
 Shelf Registration Statement has the meaning set forth in Section 2(a). 
  

 Page 3 

 Suspension Notice has the meaning set forth in Section 4(a)(xi). 
 Unrelated Registration Statement means (i) a Kingsbridge Registration; (ii) a Rights Holder Registration; (iii) any
registration (A) relating to an employee benefit plan (as defined in Rule 405 under the Securities Act), or (B) relating to the issuance and sale of, or the resale of, securities issued in a transaction pursuant to Rule 145 under the
Securities Act, or (iv) on any form that does not include substantially the same information as would be required to be included in a Registration Statement covering the sale of the Registrable Securities. 
 VLL Agreement means that certain Common Stock Agreement, dated as of January 21, 2005, as amended, by and between the Company and
Venture Lending & Leasing IV, LLC. 
 VLL Registrable Securities has the meaning ascribed to the term
“Registrable Securities” under the VLL Agreement. 
 Warrant Shares means the shares of Company Common Stock issued
upon exercise of the Warrant (as such term is defined in the Purchase Agreement). 
 Withdrawn Registration has the meaning set
forth in Section 2(d). 
 (a) Any capitalized term used in this Agreement without definition shall have the meaning assigned thereto in
the Purchase Agreement. 
 (b) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.

 (c) Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. 
 (d) The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” 
 (e) The word “will” shall be construed to have the same meaning and effect as the word “shall.”

 (f) Any definition of or reference to any contract, document, instrument or other record herein shall be construed as referring to such
contract, document, instrument or other record as from time to time amended, supplemented, restated or otherwise modified. 
 (g) Any
reference herein to any Person shall be construed to include such Person’s successors and permitted assigns. 
 (h) The words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof. 
 (i) Unless the context otherwise requires, all references herein to Sections shall be construed to refer to Sections of this Agreement; all references
herein to the preamble and recitals shall be construed to refer to the preamble and recitals to this Agreement. 
  

 Page 4 

 (j) The headings and captions used in this Agreement are for convenience of reference only and are not to
affect the construction of, or to be taken into consideration in interpreting, this Agreement. 
 Section 2. Demand Registration Rights.

 (a) The Company hereby covenants and agrees that if the Company shall receive, at any time after the one year anniversary of this
Agreement, a written request from a Holder or Holders (the Initiating Holders) that the Company file a registration statement under the Securities Act covering the registration of all or any portion of Registrable Securities then held
by the Initiating Holders (a Registration Statement) and the anticipated gross aggregate offering price (based on the Company’s then-current share price) is reasonably expected to exceed $10 million (or if less constitutes all of
the remaining Registrable Securities), then the Company shall as soon as reasonably practicable, and in any event within 60 calendar days of the receipt of such request (the Filing Deadline), file a Registration Statement under the
Securities Act covering all Registrable Securities which the Initiating Holders have requested to be registered and cause such Registration Statement to be declared effective by the SEC as soon as reasonably practicable, but in no event later than
90 calendar days of the receipt of such request (the Effectiveness Deadline); provided that in the event that the Company is informed by the SEC that the SEC will review such Registration Statement, the Effectiveness
Deadline shall be extended by 60 calendar days from the date otherwise calculable hereunder). At the request of the Initiating Holders, such Registration Statement may be for an offering to be made on a delayed or continuous basis pursuant
to Rule 415 under the Securities Act (a Shelf Registration Statement). 
 Notwithstanding this Section 2(a), the Company
shall not be obligated to effect any registration pursuant to this Section 2(a): (i) in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration,
unless the Company is already subject to service in such jurisdiction and except as may be required under the Securities Act, (ii) if the request for registration occurs during the Non-Registration Period, (iii) during the period starting
with the filing of, and ending on the date 180 calendar days following the date any registration requested hereunder was initially declared or automatically became effective, (iv) following the Non-Registration Period, during the period
starting with the filing of, and ending on the date 180 calendar days following the final date upon which a Shelf Registration Statement was effective, or (v) during the 90 calendar day period following the closing date of a public offering by
the Company. Without the consent of the Initiating Holders, the Company shall not include securities other than Registrable Securities to be sold by the Initiating Holders in any registration effected pursuant to this Section 2(a). 

(b) The Company shall keep any Registration Statement filed pursuant to Section 2(a) continuously effective, supplemented and amended to the
extent necessary to ensure that it is available for sales of Registrable Securities requested to be registered by the Initiating Holders, and to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies,
rules and regulations of the SEC as in effect from time to time, (i) if such Registration Statement is not a Shelf Registration Statement, for a period of up to 90 days or, if earlier, until the date on which all Registrable Securities covered
by such Registration Statement have been sold pursuant thereto, and (ii) if such Registration Statement is a Shelf Registration Statement, until the date on which all Registrable Securities covered by such Registration Statement have been sold
pursuant thereto. Notwithstanding the foregoing, the Company shall not be required to keep any Registration Statement effective during (x) the Non-Registration Period or (y) following the Non-Registration Period, for a period exceeding six
months. 
  

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 (c) As a condition to the filing of any Registration Statement filed pursuant to this Section 2, the
Investors agree that so long as they collectively have beneficial ownership of ten percent or more of the outstanding Company Common Stock, the Investors will not sell shares registered pursuant to this Agreement other than through Organized Sales;
provided, however, that the Investors may sell such shares through Non-Organized Sales for so long as the total number of shares sold by the Investors in all Non-Organized Sales does not exceed an aggregate of fifteen percent (15%) of
the Company’s outstanding Common Stock (as measured at the time of the most recent sale) (the Non-Organized Sale Limit). Notwithstanding the foregoing, in the event that (i) the placement agent or underwriter of an Organized
Sale requests reasonable lock-up agreements from stockholders of the Company other than the Investors in a manner consistent with industry practice, (ii) such other stockholders do not agree to the lock-up requested in a manner consistent with
industry practice, and (iii) such Organized Sale is aborted by the Investors or the requesting underwriter or placement agent in connection with clause (ii), then the Non-Organized Sale Limit shall be increased by the number of Registrable
Securities proposed to be included in such Organized Sale. 
 (d) The Initiating Holders shall have the right (in their sole discretion) to
terminate or withdraw any registration (a Withdrawn Registration) under this Section 2 prior to the effectiveness of such registration whether or not the Company or any other Person has included securities therein, in which case
the Company will no longer be required to proceed with such registration; such withdrawn registration shall not count as a registration for purposes of this Section 2 and the Initiating Holders, not the Company, shall bear any and all expenses
of any registration begun under this Section 2 (including expenses of the Company) the request of which has been withdrawn by the Initiating Holders, unless (i) there is a material adverse effect on the business, assets, condition
(financial or otherwise) or results of operations of the Company and its subsidiaries, taken as a whole, after the filing date of the most recent annual report or, if later, the most recent quarterly report, of the Company filed with the SEC on a
Form 10-K or Form 10-Q, as the case may be, filed prior to the making of the relevant request for registration under Section 2(a) and prior to the making of the relevant request for registration under Section 2(a) (the Most Recent
SEC Report) or (ii) the Most Recent SEC Report includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. If the Initiating Holders are required to bear such expenses, such expenses shall be borne by the Initiating Holders in proportion to the number of Registrable Securities for which
registration was requested. 
 Section 3. 
 (a) Piggyback Rights. If at any time after the one year anniversary of this Agreement the Company proposes to register (whether in a primary offering pursuant to which the Company is selling securities or in a registration effected
by the Company for its stockholders other than the Holders) any of its stock or other securities under the Securities Act in connection with the public offering of such securities (other than an Unrelated Registration Statement), and at such time
there is not an effective Registration Statement covering all of the Registrable Securities then held by the Holders, the Company shall, at such time, promptly give the Holders written notice of such registration. Upon the written request of the
Holders given within twenty (20) calendar days after mailing of such notice by the Company, the Company shall cause to be registered under the Securities Act all of the Registrable Securities that the Holders have requested to be registered;
provided that if the total number of securities, including Registrable Securities requested to be 

  

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included by the Holders in such offering, exceeds the amount of securities to be sold that the underwriters determine in their reasonable discretion is
compatible with the success of the offering, then the Company shall be required to include in the offering only that amount of securities, including Registrable Securities, which the underwriters determine will not jeopardize the success of the
offering; provided that the number of Registrable Securities, IRA Registrable Securities and VLL Registrable Securities to be included in such offering shall in no event be less than twenty-five percent of the total offering. The Holders, the
holders of IRA Registrable Securities and the holders of VLL Registrable Securities shall share such portion of the Company’s offering allocated to selling stockholders on a pro rata basis based upon their relative ownership of the
Company’s outstanding stock carrying piggyback registration rights. 
 (b) If the Company intends to distribute the shares registered
pursuant to this Section 3 by means of an underwriting, a Holder’s right to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and such Holder entering
into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting, it being agreed and understood that no such underwriting agreement shall require a Holder to (i) provide representations and
warranties other than in respect of the Holder’s organizational matters and its authority to enter into such underwriting agreements (and related agreements such as a custody agreement and a power of attorney), title to the shares of Company
Common Stock to be sold by such Holder and information provided by such Holder for use in the Registration Statement or (ii) provide indemnification or contribution to any Person other than on the terms set forth in Section 5 below.

 (c) Notwithstanding Section 9(a), for so long as the total number of IRA Registrable Securities exceeds ten percent of the
outstanding Company Common Stock, the provisions of Section 3(a) may be amended or waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or indefinitely), with and
only with the written consent of (i) the Company, (ii) the Holders of a majority-in-interest of the Registrable Securities then held by the Holders if at the time of such amendment or waiver, the total number of Registrable Securities
exceeds ten percent of the outstanding Company Common Stock, and (iii) the holders of a majority-in-interest of the then-outstanding IRA Registrable Securities (not including the “Founder Shares” as such term is defined in the IRA);
provided, however, that if at the time of such amendment or waiver the total number of Registrable Securities is less than ten percent of the outstanding Company Common Stock and the written consent of the Holders of a
majority-in-interest of the Registrable Securities then held by the Holders is not required to give effect to such amendment or waiver by operation of subclause (ii) of this Section 3(c), and such waiver or amendment materially and
adversely affects the rights of the Holders of Registrable Securities and does not materially and adversely affect the rights of the holders of IRA Registrable Securities in the same manner, then such waiver or amendment shall require the consent of
the Holders of a majority-in-interest of the Registrable Securities then held by the Holders. 
 Section 4. Obligations of the Company; Expenses;
Procedures Relating to Registration. 
 (a) Whenever required under this Agreement to effect the registration of any Registrable
Securities, the Company shall: 
 (i) Prepare and file with the SEC a Registration Statement with respect to such Registrable
Securities, cause such Registration Statement to become effective, and if 

  

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such registration statement is a demand registration statement pursuant to Section 2 keep such registration statement effective in accordance with
Section 2(b); 
 (ii) Subject to Section 4(a)(xi), prepare and file with the SEC such amendments and supplements to
such Registration Statement and the prospectus used in connection with such Registration Statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such
Registration Statement during the applicable effectiveness period; 
 (iii) As promptly as possible, furnish to the Holders
such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate the disposition of
Registrable Securities owned by it; 
 (iv) As promptly as possible, register and qualify the securities covered by such
Registration Statement under such other securities or Blue Sky laws of such jurisdictions as shall be necessary to effect the sale by the Holders of such securities; provided that the Company shall not be required in connection therewith or
as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless (A) the Company is already subject to service in such jurisdiction or (B) required by the
Securities Act; 
 (v) In the event of any underwritten public offering, enter into and perform its obligations under an
underwriting agreement, in usual and customary form, with the managing underwriter of such offering (subject to the Holders having also entered into and performed its obligations under such an agreement); 
 (vi) As promptly as possible, cause all such Registrable Securities so registered to be listed on the national securities exchange or
automated quotation service on which the Company Common Stock is then listed; 
 (vii) Enter into all such arrangements with
the transfer agent and registrar of the Company Common Stock as may be required in connection with the offer and sale of the Registrable Securities so registered and ensure that the CUSIP number for such Registrable Securities is the same as the
CUSIP number for the Company Common Stock; 
 (viii) In the event of any underwritten public offering, cause to be furnished,
on the date on which such Registrable Securities are sold to the underwriter: (i) an opinion, dated such date and addressed to the underwriters, of counsel representing the Company for the purposes of such registration, in form and substance as
is customarily given to underwriters in an underwritten public offering and (ii) a comfort letter, dated such date and addressed to the underwriters, from the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten public offering; 
 (ix)
Shall not cause any other registration of Company Common Stock (or securities convertible into, or exchangeable or exercisable for, Company Common 

  

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Stock), whether for its own account or for the account of any other Person (other than an Unrelated Registration Statement) to become effective within 90
calendar days following the completion of any Organized Sale (or such shorter period as required by the managing underwriter or placement agent); 
 (x) Provide the Holders, any participating underwriter and any attorney, accountant or other agent retained by the Holders or such underwriter, reasonable access, during normal business hours and upon prior
notification, to appropriate officers of the Company and the Company’s subsidiaries to ask questions and to obtain information reasonably requested by any such Person and make available for inspection all financial and other records and other
information, pertinent corporate documents and properties of any of the Company and its subsidiaries and affiliates as may be reasonably necessary to enable them to undertake customary due diligence; provided, however, that such
Persons shall, at the Company’s request, first agree in writing with the Company that any information that is reasonably and in good faith designated by the Company as confidential at the time of delivery of such information shall be kept
confidential by such Persons and shall be used solely for the purposes of exercising rights under this Agreement, unless (A) disclosure of such information is required by court or administrative order or is necessary to respond to inquiries of
governmental or regulatory authorities, (B) disclosure of such information is required by law (including any disclosure requirements pursuant to federal securities laws in connection with the filing of any Registration Statement or the use of
any prospectus referred to in this Agreement) or necessary to defend or prosecute a claim brought against or by any such Persons (e.g., to establish a “due diligence” defense), (C) such information becomes generally available to the
public other than as a result of a disclosure or failure to safeguard by any such Person, or (D) such information becomes available to any such Person from a source other than the Company and such source is not known to be bound by a
confidentiality agreement; and 
 (xi) In the event of: (A) the issuance by the SEC of a stop order suspending the
effectiveness of a Registration Statement or the initiation of proceedings with respect to a Registration Statement under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence of any fact (a
Material Event) as a result of which any Registration Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading, or any related prospectus shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, or (C) the occurrence or existence of any pending corporate development that, in the reasonable discretion of the Company’s Board of Directors, would cause the failure to suspend the availability of a
Registration Statement and related prospectus to be seriously detrimental to the Company and its stockholders: 
 (1) in the
case of clause (B) above, subject to the next sentence, as promptly as practicable prepare and file, if necessary pursuant to applicable law, a post-effective amendment to such Registration Statement or a supplement to the related prospectus or
any document incorporated therein by reference or file any other required document that would be incorporated by reference into such Registration Statement and related prospectus so that such Registration Statement 

  

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does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and such prospectus does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to a Registration Statement, subject to the next sentence, use
all commercially reasonable efforts to cause it to be declared effective as promptly as is practicable, and 
 (2) give notice
to the Holders that the availability of such Registration Statement is suspended (a Suspension Notice) and, upon receipt of any Suspension Notice, the Holders agree not to sell any Registrable Securities pursuant to such Registration
Statement until the Holders’ receipt of copies of the supplemented or amended prospectus provided for in clause (1) above, or until it is advised in writing by the Company that such prospectus may be used, and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated by reference in such prospectus, or until the maximum number of applicable days set forth in clauses (B) or (C) in the following paragraph have passed.

 The Company will use all commercially reasonable efforts to ensure that the use of the prospectus may be resumed
(x) in the case of clause (A) above, as promptly as is practicable, (y) in the case of clause (B) above, as soon as, in the sole judgment of the Company, public disclosure of such Material Event would not be prejudicial to or
contrary to the interests of the Company or, if necessary to avoid unreasonable burden or expense, as soon as practicable thereafter (but in no event for more than the lesser of 10 calendar days and the number of days which, aggregated with all
other suspensions under clauses (B) and (C) above would result in the total number of suspended days in any twelve month period to exceed thirty (30) days) and (z) in the case of clause (C) above, as soon as in the
reasonable discretion of the Company, such suspension is no longer necessary to avoid serious detriment to the Company and its stockholders (but in no event for more than the lesser of 10 calendar days and the number of days which, aggregated with
all other suspensions under clauses (B) and (C) above would result in the total number of suspended days in any twelve month period to exceed thirty (30) days). 
 (b) In connection with any registration hereunder, the Holders shall furnish to the Company or to the managing underwriters of an offering, if any, such
information regarding itself, the Registrable Securities held by it and the intended method of disposition of such securities as shall be reasonably required to effect the registration of Registrable Securities. 
 (c) Except as provided in Section 2(d), all expenses incurred in effecting any registration pursuant to this Agreement (including all registration,
qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration) shall be
borne by the Company. All underwriting discounts, fees and disbursements of counsel for the Holders, brokers or other selling commissions and stock transfer taxes applicable to the sale of Registrable Securities shall be borne by the Holders.

  

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 (d) With a view to making available to the Holders the benefits of Rule 144 under the Securities Act and
any other rule or regulation of the SEC that may at any time permit the Holders to sell securities of the Company to the public without registration or pursuant to a Form S-3 Registration Statement, the Company agrees to: (i) make and keep
public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times that the Company is subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act,
(ii) file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act and (iii) furnish to the Holders, forthwith upon request: (A) a written statement by the
Company that it has complied with the reporting requirements of the Securities Act and the Exchange Act at all times after it has become subject to such reporting requirements, or that it qualifies as a registrant whose securities may be resold
pursuant to a Form S-3 Registration Statement at any time after it so qualifies, (B) a copy of the most recent annual or quarterly report of the Company and such other statements, reports and other documents filed by the Company with the SEC,
and (C) such other information as may be reasonably requested in availing the Holders of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to a Form S-3 Registration Statement.

 (e) From the date hereof until termination of this Agreement: (i) the Company shall continue to use all commercially reasonable
efforts to qualify for registration on Form S-3 Registration Statements for secondary sales and (ii) the Company shall not take any action designed to materially impair or otherwise adversely affect the rights of the Holders hereunder.

 Section 5. Indemnification and Contribution. In the event any Registrable Securities are included in a Registration Statement contemplated by
this Agreement: 
 (a) To the extent permitted by applicable law, the Company will indemnify and hold harmless the Holders, each of its
officers, directors and partners, legal counsel, and accountants and each Person controlling the Holders within the meaning of Section 15 of the Securities Act, with respect to which registration has been effected pursuant to this Agreement,
and each underwriter, if any, and each of its officers, directors, and each Person who controls, within the meaning of Section 15 of the Securities Act, any underwriter (the Persons referred to herein, the Holder Indemnified
Persons), against all expenses, claims, losses, damages, and liabilities (or actions, proceedings, or settlements in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact
contained or incorporated by reference in any Registration Statement, or amendment thereto, or in any preliminary prospectus, final prospectus, “issuer free writing prospectus” (as defined in Rule 433 of the Securities Act), offering
circular, or other document (including any related registration statement, notification, or similar document) incident to any such registration, (ii) any omission (or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of any in any preliminary prospectus, final prospectus or issuer free writing prospectus, or in any amendment or supplement thereto, in light of the circumstances under which they were
made) not misleading, or (iii) any violation (or alleged violation) by the Company of applicable law (including the Securities Act, any state securities laws or any rule or regulation thereunder) applicable to the Company and relating to action
or inaction required of the Company in connection with any offering covered by such registration, and the Company will reimburse each Holder Indemnified Person for any legal and any other expenses (including expenses of enforcement of obligations
hereunder) incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, or action; provided that the Company will not be 

  

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liable in any such case to the extent that any such claim, loss, damage, liability, or action arises out of or is based on any untrue statement or omission
based upon written information furnished to the Company by a Holder, any of such Holder’s officers, directors, partners, legal counsel or accountants, any Person controlling such Holder, such underwriter or any Person who controls any such
underwriter and stated to be specifically for use therein; and provided further that the indemnity agreement contained in this Section 5(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or
action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, delayed or conditioned). 
 (b) To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which a registration is being effected pursuant to this Agreement, indemnify and
hold harmless the Company, each of its directors, officers, partners, legal counsel, and accountants and each underwriter, if any, of the Company’s securities covered by such a registration, and each Person who controls the Company or such
underwriter within the meaning of Section 15 of the Securities Act (a Company Indemnified Person), against all claims, losses, damages and liabilities (or actions, proceedings, or settlements in respect thereof) arising out of or
based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any Registration Statement, or amendment thereto, or in any preliminary prospectus, final prospectus, summary
prospectus, “issuer free writing prospectus” offering circular, or other document (including any related registration statement, notification or similar document) incident to any such registration or (ii) any omission (or alleged
omission) to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any in any preliminary prospectus, final prospectus or issuer free writing prospectus, or in any amendment or
supplement thereto, in light of the circumstances under which they were made) not misleading, and will reimburse each Company Indemnified Person for any legal and any other expenses (including expenses of enforcement of obligations hereunder)
incurred in connection with investigating or defending any such claim, loss, damage, liability, or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission)
is made in such Registration Statement , preliminary prospectus, final prospectus, summary prospectus, issuer free writing prospectus, offering circular, or other document (including any related registration statement, notification or similar
document) in reliance upon and in conformity with written information furnished to the Company by such Holder, any of such Holder’s officers, directors, partners, legal counsel or accountants, and any Person controlling such Holder and stated
to be specifically for use therein; provided that that the indemnity agreement contained in this Section 5(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of such Holder, which consent shall not be unreasonably withheld, delayed or conditioned; and provided further that in no event shall any indemnity under this Section 5(b) exceed the net proceeds from the
offering received by such Holder (except in the case of fraud or willful misconduct by such Holder). 
 (c) Each Person entitled to
indemnification under this Section 5 (an Indemnified Party) shall give notice to the Person required to provide indemnification under this Section 5 (an Indemnifying Party) promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnification may be sought hereunder, and shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party, which approval shall not be unreasonably 

  

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withheld, delayed or conditioned, and the Indemnified Party may participate in such defense at such Indemnified Party’s expense; and provided further
that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 5, except to the such failure is materially prejudicial. No Indemnifying Party, in
the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably
request in writing and as shall be reasonably required in connection with defense of such claim and litigation resulting therefrom. 
 (d) If
the indemnification provided for in this Section 5 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying
Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect
the relative fault of the Indemnifying Party (on the one hand) and of the Indemnified Party (on the other) in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense, as well as any other relevant
equitable considerations; provided that (i) in no event shall a Holder be required to contribute any amount when combined with the amounts paid or payable by such Holder (if any) pursuant to Section 5(b) in excess of the net
proceeds from the offering received by such Holder and (i) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission
to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the Parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

 (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with an underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 
 (f) Unless otherwise superceded by the underwriting agreement entered into in connection with an underwritten public offering, the obligations of the
Company and the Holders under this Section 5 shall survive the consummation of any offering of Registrable Securities in a Registration Statement under this Agreement, and otherwise and shall survive the termination of this Agreement.

 Section 6. Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Agreement
may be transferred or assigned by the Investors to a transferee or assignee of such Registrable Securities that acquires at least 1,500,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends,
combinations, recapitalizations and other similar transactions after the date hereof). The Investors shall, within thirty (30) calendar days after such transfer or assignment, furnish the Company with written notice of the name and address of
such transferee or assignee and the 

  

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Registrable Securities with respect to which such registration rights are being assigned. Such transfer or assignment shall be effective only upon, and such
transferee shall constitute a Holder hereunder, such transferee or assignee agreeing to be bound by and subject to the terms and conditions of this Agreement (to the extent of the obligations of the Investors hereunder). 
 Section 7. Limitations of Subsequent Registration Rights. For so long as the provisions of Section 3 of the Affiliation Agreement remain in effect, the
Company shall not, without the prior written consent of the Ipsen, enter into any agreement or amend any existing agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder:
(a) to include such securities in any registration unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will
not reduce the amount of the Registrable Securities of the Holders to be included or (b) to demand registration of any securities held by such holder or prospective holder; provided, however, that the foregoing limitation shall
not apply to any holder or prospective holder of any securities of the Company acquired in connection with any issuance of securities of the Company in compliance with the provisions of Section 3(v) of the Affiliation Agreement. From and after
the date the provisions of Section 3 of the Affiliation Agreement shall cease to be effective, the Company agrees that prior to effecting any registration (other than a Rights Holder Registration, a Kingsbridge Registration or a registration
effected for the Holders), the Company shall provide the Holders with written notice at least 15 Business Days prior to effecting any such registration. 
 Section 8. Termination of Agreement. Subject to the provisions of Section 5(f), this Agreement shall terminate and be of no further force or effect in the event that there shall cease to be any Registrable Securities
outstanding for a period of 90 days or more.  
 Section 9. Miscellaneous. 
 (a) Subject to the provisions of Section 3(c), with the written consent of (i) the Company and (ii) the Holders of a majority-in-interest
of the then-outstanding Registrable Securities, the obligations of the Company and the rights of the Holders of the Registrable Securities under this Agreement may be waived or amended (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or indefinitely). 
 (b) This Agreement is for the sole and
exclusive benefit of the Parties and their successors and permitted assigns, and nothing herein expressed or implied shall give, or be construe to give, to any Person, other than the Parties and such successors and permitted assigns, any legal or
equitable right, remedies or claims under or with respect to this Agreement or any provisions hereof. 
  

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 (c) All notices, consents, waivers, and other communications required or permitted under this Agreement
must be in writing and will be deemed to have been duly given when (i) delivered by hand to the Party to be notified, (ii) when sent by facsimile if sent during the normal business hours of the Party to be notified, if not, then on the
next Business Day or (iii) when received by the Party to be notified, if sent by an internationally recognized overnight delivery service, specifying the soonest possible time and date of delivery, in each case to the appropriate addresses and
facsimile numbers set forth below (or to such other addresses and facsimile numbers as a Party may designate by notice to the other Parties from time to time). All such notices and other communications shall be sent: 
  

	 	(A)	if to the Investors, to: 

 Ipsen, S.A. 
 42, rue du Docteur Blanche 
 75016 Paris

 France 
 Attention: General
Counsel 
 Facsimile: +33 1 4496 1188 
 with a copy (which shall not constitute notice) to: 
 Freshfields Bruckhaus Deringer, LLP 
 520 Madison Avenue, 34th Floor 
 New York, NY
10022 
 UNITED STATES OF AMERICA 
 Attention: Matthew L. Jacobson, Esq. 
 Facsimile: +1 212 277 4001 
 and 
  

	 	(B)	if to the Company to: 

 Tercica, Inc. 
 2000 Sierra Point Parkway, Suite 400 
 Brisbane, California 94005 
 UNITED STATES OF AMERICA 
 Attention: General Counsel 
 Facsimile: +1 650 238 1520 
 with a copy (which shall not constitute notice) to: 
 Cooley Godward LLP 
 Five Palo Alto Square 
 3000 El Camino Real 
 Palo Alto, California
94306 
 UNITED STATES OF AMERICA 
 Attention: Suzanne Sawochka Hooper 
 Facsimile: +1 650 849 7400 
 (d) This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement, and shall become effective
when one or more such counterparts have been signed by each of the Parties and delivered to the other Parties. Any such counterpart may be delivered to a Party by facsimile. 
 (e) If any provision of this Agreement (or any portion thereof) or the application of any such provision (or any portion thereof) to any person or
circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, 

  

 Page 15 

 
illegality or unenforceability shall not affect any other provision hereof (or the remaining portion thereof) or the application of such provision to any
other persons or circumstances. 
 (f) This Agreement, the Purchase Agreement and the other documents delivered pursuant thereto constitute
the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other in any manner by any oral or written representations, warranties, covenants and agreements
except as specifically set forth herein and therein. 
 (g) This Agreement shall be construed in accordance with, and this Agreement and all
matters arising out of or relating in any way whatsoever (whether in contract, tort or otherwise) to this Agreement shall be governed by, the law of the State of New York. 
 [SIGNATURE PAGE FOLLOWS; 
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 

 Page 16 

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

 

	
	TERCICA, INC.
	
	/s/ John A. Scarlett, M.D
	Name:
	Title:
	
	IPSEN, S.A.
	
	/s/ Claire Giraut
	Name:
	Title:
	
	SURAYPHARM
	
	/s/ Claire Giraut
	Name:
	Title:

 [Signature Page to Registration Rights Agreement]Increlex License and Collaboration Agreement

 EXHIBIT 10.14C 
 Execution Copy 
 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 INCRELEXTM 
 LICENSE AND
COLLABORATION AGREEMENT 
 THIS INCRELEXTM LICENSE AND
COLLABORATION AGREEMENT (the “Agreement”), is entered into as of the Effective Date (defined below) by and between Tercica, Inc., a company incorporated under the laws of Delaware
with offices at 2000 Sierra Point Parkway, Suite 400, Brisbane, CA 94005, United States of America (“Licensor”) and Beaufour Ipsen Pharma, a company incorporated under the laws of France with offices at 24 rue Erlanger, 75016 Paris,
France (“Licensee”). Licensor and Licensee are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 
 Whereas, Licensor is engaged in the business of developing and marketing of pharmaceutical products; and 
 Whereas, Licensor and Genentech Inc. (“GNE”) have entered into that certain License and Collaboration Agreement dated
April 15, 2002 (the “GNE US License”); and Licensor and GNE have also entered into that certain International License and Collaboration Agreement dated July 25, 2003 (the “GNE Ex-US License”); whereby GNE
has granted to Licensor certain rights in the Licensed Product (as defined below) under GNE’s technology, know-how and/or intellectual property rights to permit Licensor to develop, commercialize, market and promote the Licensed Product in the
United States of America, and outside the United States of America, respectively; and 
 Whereas, Licensor and Fujisawa Pharmaceutical
Co, Ltd (“Fujisawa”) have entered into a license agreement dated December 25, 2003 whereby Fujisawa has granted to Licensor certain rights in the Licensed Product under certain patent rights of Fujisawa to permit Licensor to
label, promote, distribute, manufacture, use, import and sell the Licensed Product in all countries and territories worldwide but excluding Japan (the “Fujisawa License”); and 
 Whereas, Licensor, as of the Execution Date has obtained regulatory approval for, and is
marketing the Initial Product (as defined below) under the tradename Increlex® in the
United States and is currently conducting additional research and development activities with respect to obtaining regulatory approval for the Licensed Product (the “Licensor On-going Development” as further defined below); and

 Whereas, Licensor is seeking a partner for the development and, following regulatory approval, distribution of the Licensed Product
in the Territory (as defined below); and 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 1 

 Whereas, Licensee has the marketing and sales force in the Territory to enable it to effectively
market the Licensed Product in the Territory; and 
 Whereas, Licensor and Licensee (or its Affiliate), on the Execution Date, also
are entering into that certain Stock Purchase and Master Transaction Agreement, and will enter into pursuant thereto such other agreements, including the Voting Agreement, Registration Rights Agreement, Investor Rights Agreement, Convertible Note
Agreement, and related transaction documents, including the issuance of a Warrant to purchase shares of Common Stock of Licensee (collectively, the “Equity Transaction Documents”); and 
 Whereas, Licensee, Licensee’s Affiliate, and Licensor, on the Effective Date, are also entering into that certain Somatuline License and
Collaboration Agreement pursuant to which, among other things, Licensee will exclusively license to Licensor, Licensee’s product Somatuline Autogel, for sale by Licensor in the United States and Canada (the “Somatuline
Agreement”). 
 THE PARTIES DO HEREBY AGREE AS
FOLLOWS: 
  

	1.	DEFINITIONS 

 1.1 “18-Month Rolling
Order Forecast” has the meaning set forth in Section 6.7.1 of this Agreement. 
 1.2 “Affiliate” means,
in respect of any Person (i.e. any individual or any corporation, limited liability company, partnership, trust, association or other entity of any kind, a Person that is directly or indirectly controlling, controlled by, or under common control
with such first-mentioned Person or any of its Subsidiaries, and for the sole purpose of this paragraph, the term “control” (including the terms “controlled by” and “under common control with”) means having, directly or
indirectly, the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities or by contract or otherwise. As used in this Section 1.2, “Subsidiary”
means any corporation or other organization, whether incorporated or unincorporated, of which (i) at least fifty percent (50%) of the securities (or other interests having by their terms ordinary voting power to elect a majority of the
board of directors or others performing similar functions with respect to such corporation or other organization) is directly or indirectly owned or controlled by the relevant Person or (ii) the relevant Person (or any other subsidiary of the
relevant Person) is a general partner. 
 1.3 “Agreement” shall have the meaning set forth in the preamble.

 1.4 “Binding Order” has the meaning set forth in Section 6.7.2 of this Agreement. 
 1.5 “BLA” means a Biologics License Application (as defined in Title 21 of the United States Code of Federal Regulations,
Section 600 et seq, as amended from time to time), or such application’s foreign equivalent, filed pursuant to the requirements of a Regulatory Authority for Marketing Authorization of a Licensed Product. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 2 

 1.6 “Calendar Quarter” means the respective period of three (3) consecutive
calendar months ending on March 31, June 30, September 30 and December 31. 
 1.7 “Calendar
Year” means the respective period of twelve (12) consecutive months commencing on January 1 and ending on December 31. 
 1.8 “Combination Product” shall mean a pharmaceutical formulation or product for use in the Field that contains IGF-1 and any other active ingredient, including without limitation IGFBP-3 or growth hormone. 
 1.9 “Commercialization Plan” shall mean the most recent version of any given three Calendar Year rolling plan as from First Commercial
Sale until termination or expiration of the Agreement (the first Calendar Year being for the purpose of this clause, the period starting from the date of the First Commercial Sale in the country until December 31 of the same year), with respect
to the promotion, sales plan and budget for each Licensed Product in each country of the Territory including in particular: (a) the Promotional Efforts planned for such three Calendar Years and (b) the Sales Forecast anticipated for such
three Calendar Years. Such Commercialization Plan shall also include provisions for the manufacturing, supply and distribution planning of Licensed Products for sale in the Territory. 
 1.10 “Commercial Sale” means the sale of Licensed Products whether by Licensee or Licensee’s Affiliates or Sub-licensees to a third
party and shall exclude (i) any transfer of Licensed Product by Licensee to its Affiliates or Sub-licensees and (ii) any distribution of Licensed Product for use in Development activities or as Samples. 
 1.11 “Confidential Information” has the meaning set forth in Section 10.1 of this Agreement. 
 1.12 “Control” with the correlative meaning “Controlled by” means, with respect to intellectual property, possession of the
right to grant a license or sublicense as provided for herein without violating (a) any law or governmental regulation applicable to such license or sublicense or (b) the terms of any agreement or other arrangement with any third party
that exists as of the Effective Date, or if such right is acquired after the Effective Date, as of the date a Party first gained possession of such right. 
 1.13 “Cover” and with correlative meaning “Covered” shall mean with respect to Patent Rights, that such Patent Rights claim the composition of matter, method of making or any use of
such Licensed Product. 
 1.14 “current Good Manufacturing Practices” or “cGMP” shall mean the requirements
found in the legislation, regulation and administrative provisions for methods to be used in, and the facilities or controls to be used for, the manufacturing, processing, packing and/or holding of a drug to assure that such drug meets the
requirements as to the safety and has 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 3 

 
the identity and strength and meets the quality characteristics that it purports or is represented to possess, all of which as defined by the competent
authorities of each country of the Territory where and at the time Licensee sells the Licensed Products in each such country and by the competent authorities of the country where any manufacturing or testing operation is conducted. 
 1.15 “Delivery Point” shall have the meaning ascribed to it in Section 6.4 of this Agreement. 
 1.16 “Developing Party” shall mean a Party Developing solely a Product Improvement, a Combination Product or an Other Product under a
Subsequent Development Plan as set forth in Section 4.4.4 (i) of this Agreement. 
 1.17 “Development” and with
correlative meaning “Develop” and “Developing” means all activities related to preclinical testing, toxicological, pharmacokinetic, metabolic, or clinical aspects of the Licensed Product (or where applicable an
Other Product), process development, stability studies, formulation development, clinical studies regulatory affairs, and other development activities for the Licensed Product (or where applicable an Other Product). 
 1.18 “Development Costs” shall mean costs incurred jointly by the Parties under the Initial Development Plan or Joint Subsequent
Development Plan or solely by a Developing Party under a Subsequent Development Plan as determined in accordance with Section 4.4.2 of this Agreement. 
 1.19 “Development Plan” shall mean either the Initial Development Plan or any Subsequent Development Plan. 
 1.20 “Diabetes” shall mean a progressive disease of carbohydrate metabolism involving inadequate production or utilization of insulin that is characterized by hyperglycemia and glycosuria. The term
shall apply to any form of diabetes, including without limitation, Type 1 and Type 2 diabetes, as well as other hyperglycemic disorders, such as hyperinsulinemia, hyperlipidemia, insulin-resistant diabetes such as Mendenhall’s Syndrome, Werner
Syndrome, leprechaunism, lipoatrophic diabetes. 
 1.21 “Diabetes Covenant Expiration” shall have the meaning set forth in
Section 2.7. 
 1.22 “Diligent Efforts” shall mean the efforts consistent with the exercise of prudent scientific and
business judgment, consistent with the effort applied to other pharmaceutical products of similar potential and market size by the Party in question (or, if the Party in question has no other pharmaceutical product of similar potential and market
size, by other similarly sized pharmaceutical companies that do). 
 1.23 “Dominating Patent” means with respect to a given
country in the Territory, an unexpired patent of a third party which has not been finally invalidated by a court or other governmental agency of competent jurisdiction and which would be infringed by the use, manufacture, sale or import of the
Licensed Product in such country under this Agreement 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 4 

 1.24 “Effective Date” shall mean the date of the First Closing. 
 1.25 “EU Marketing Authorization” shall mean the Marketing Authorization granted by the European Union Commission for the Licensed
Product under the centralized procedure. 
 1.26 “EU Territory” shall mean the member states of the European Union, Iceland,
Norway and Liechtenstein. 
 1.27 “EMEA” means the European Medicine Agency, a decentralized body of the European Union.

 1.28 “Excluded Indications” shall mean the use of IGF-1 as a therapeutic or potential therapeutic for any human disease
or condition of the central nervous system as described in Section 1.19 and Exhibit A of the GNE Ex-US License. 
 1.29
“Execution Date” shall mean July 18, 2006, the date of execution of the Purchase Agreement. 
 1.30
“Field” means all uses in humans and all in vitro uses, excluding the Excluded Indications and excluding, unless and until and only to the extent that the Diabetes Covenant Expiration occurs as set forth in Section 2.7,
Diabetes. 
 1.31 “First Closing” shall have the meaning ascribed to it in the Purchase Agreement. 
 1.32 “First Commercial Sale” means the first Commercial Sale in the relevant countries of the Territory, as evidenced by the first
payment received by Licensee, its Affiliates or Sub-licensees in connection with this Commercial Sale on a country-by-country basis. 
 1.33 “FTE” shall mean full time equivalent of, and is equal to the amount of work one full time employee would accomplish during any one year period. 
 1.34 “Fujisawa” and “Fujisawa License” shall have the meaning set forth in the preamble of this Agreement. 

1.35 “GNE” shall have the meaning set forth in the preamble of this Agreement. 
 1.36 “GNE Ex-US License” shall have the meaning set forth in the preamble of this Agreement. 
 1.37 “GNE US License” shall have the meaning set forth in the preamble of this Agreement. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 5 

 1.38 “IGF-1” means native-sequence insulin-like growth factor-1 from any species with or
without an N-terminal methionine, allelic variants thereof, and sequence variants thereof wherein substitutions and/deletions are made in the region from 1 to 5 amino acids from the N-terminus of the mature native-sequence IGF-1 of any species,
including des-IGF-1 and variants wherein at least the glutamic acid residue is absent at position 3 from the N-terminus of native-sequence human IGF-1. 
 1.39 “IND” means an investigational new drug application as defined under US law and foreign equivalents. 
 1.40 “Indication” means the prevention, therapeutic treatment, or diagnosis of any particular human disease or, disorder or condition, but shall not include the Excluded Indication and shall not
include, unless and until and only to the extent that the Diabetes Covenant Expiration occurs as set forth in Section 2.7, Diabetes. 
 1.41 “Initial Development Plan” means the plan for the conduct of specified Development activities with regards to the Initial Product, or Product Improvements or Combination Products as agreed between the Parties pursuant
to Section 4.3.1 of this Agreement for the purpose of obtaining initial Marketing Authorization or Marketing Authorization for label expansion for such Licensed Product, which shall exclude any Licensor On-going Development. 
 1.42 “Initial Product” means that certain pharmaceutical formulation for use in the Field containing IGF-1 and as of the Execution Date
marketed by Licensor in the United States under the tradename IncrelexTM, the specifications of which, as of the Execution Date and filed with the EMEA are attached as Schedule 2 to this Agreement, which specifications may be amended from
time to time by the written agreement of the Parties. 
 1.43 “JFC” shall mean the joint finance committee as defined in
Section 3.2 of this Agreement. 
 1.44 “Joint Know-How” shall mean any and all Know-How owned jointly by the Parties
pursuant to Section 8.3. 
 1.45 “Joint Patents” shall mean any and all Patent Rights owned jointly by the Parties
pursuant to Section 8.3. 
 1.46 “Joint Patent Committee” shall mean the committee defined in Section 8.3.

 1.47 “Joint Subsequent Development Plan” shall mean a Subsequent Development Plan conducted and funded jointly by the
Parties in accordance with Section 4.4.3 of this Agreement. 
 1.48 “JSC” shall mean the joint steering committee as
defined in Section 3.1 of this Agreement. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 6 

 1.49 “Know-How” means all non public proprietary information, trade secrets, techniques
and data of a Party (including Confidential Information as defined in Section 10.1) including, but not limited to, discoveries, formulae, materials, practices, methods, knowledge, know-how, processes, experience, test data (including
pharmacological, toxicological and clinical information and test data), analytical and quality control data, marketing, pricing, distribution, cost and sales data or descriptions and any and all submissions to Regulatory Authorities with respect to
Licensed Products, and preclinical and clinical data, assays and associated materials, and protocols and procedures and documentation associated with the foregoing. 
 1.50 “Licensed Know-How” shall mean Know-How owned or Controlled by Licensor that is reasonably necessary for the characterization, optimization, assaying, Development, import, offer for sale, use or
sale of IGF-1 or any Licensed Product in the Field including without limitation all Know-How resulting from Licensor On-going Development. 
 1.51 “Licensed Patent Rights” shall mean all Patent Rights owned or Controlled by Licensor in the Territory which Cover the Licensed Product, but excluding Licensor Related Patent Rights except and to the extent agreed by
the Licensor and Licensee pursuant to Section 2.9. As at the Execution Date, Licensed Patent Rights include all Patent Rights listed in Schedule 1 of this Agreement. 
 1.52 “Licensed Product” means, as the context requires, the Initial Product, and any Product Improvements and/or any Combination
Products that accrue from the Initial Development Plan and/or Joint Subsequent Development Plans, and/or any Subsequent Development Plan as to which the Opt-in Party (as that term is defined in Section 4.4.4(ii)(F)(a) below) has exercised its
rights to Opt-In (as that term is described in Section 4.4.4(ii)(F)(a) below) pursuant to Section 4.4.4(ii)F. 
 1.53
“Licensed Trademarks” shall mean the trademarks listed in Schedule 3. 
 1.54 “Licensee Allocation”
shall have the meaning ascribed to it in Section 4.4.3. 
 1.55 “Licensee Group” means Licensee and its Affiliates.

 1.56 “Licensee Independent Patent Rights” shall have the meaning set forth in Section 2.5.2 of this Agreement.

 1.57 “Licensee Related Patent Rights” means, any Patent Rights owned or Controlled by Licensee which Cover a Licensed
Product other than the Initial Product in the Licensor Territory and either (i) are acquired by or licensed to Licensee from a third party and as to which Licensee would owe such third party royalties or other payments for the license to such
Patent Rights in the Licensor Territory based on Licensee’s (or Licensor’s) use and exploitation of such Patent Rights; or (ii) do not cover inventions made in the conduct of the Development or a Development Plan under this Agreement,
which inventions are solely or jointly owned by Licensee as provided in Section 8.3. 
 1.58 “Licensor Allocation”
shall have the meaning ascribed to it in Section 4.4.3. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 7 

 1.59 “Licensor IP Rights” means any and all Licensed Patent Rights and Licensed
Know-How. 
 1.60 “Licensor On-going Development” shall mean those clinical, non-clinical studies and regulatory activities
anywhere including in the Territory (a) ongoing as of the Execution Date and set forth in Schedule 11 hereto or (b) that either (i) are required for securing Marketing Authorization for the Initial Product for the Target Label
in the Territory, or (ii) the conduct of which is a condition upon which such Marketing Authorization has been granted. Licensor On-going Development are carried out and funded solely by Licensor. 
 1.61 “Licensor Related Patent Rights” means, any Patent Rights owned or Controlled by Licensor that are other than those listed on
Schedule 1, but which Cover any Licensed Product other than the Initial Product, and either (i) are acquired by or licensed to Licensor from a third party and as to which Licensor would owe such third party royalties or other payments for the
license to such Patent Rights in the Territory based on Licensor’s (or Licensee’s) use and exploitation of such Patent Rights; or (ii) do not cover inventions made in the conduct of the Development or a Development Plan under this
Agreement, which inventions are solely or jointly owned by Licensor as provided in Section 8.3. 
 1.62 “Licensor
Territory” means the United States of America, Canada, and Japan, and including, until the license provided for in Section 2.4 is in effect, the Third Party Countries, and the territories and possessions of each of the foregoing
countries. 
 1.63 “Manufacturing Option” shall have the meaning ascribed to it in Section 6.18.1 of this Agreement.

 1.64 “Market Competition” means with respect to a given country of the Territory, the written notification to Licensor by
Licensee that the sale in a given country of the Territory of one or more products containing IGF-1 produced in a prokaryotic expression system by one or more third parties that are not Sub-licensees of Licensee has achieved greater than twenty-five
percent (25%) Market Share. For purposes of this Section 1.64, “Market Share” shall mean the percentage market share in value for the product or products in question containing IGF-1, such percentage to be established by
measuring a full Calendar Quarter of reported prescription data for the applicable product(s) and any competing products (including Licensed Products) sold in the relevant country of the Territory. If the Parties are unable to mutually agree on the
Market Share of a given product or products based on such prescription data, the Parties shall submit the issue to a mutually-agreeable third party market research firm having expertise in pharmaceutical sales in the relevant country of the
Territory (the “Research Firm”). The Research Firm shall be instructed to provide an independent assessment of the Market Share for purposes of determining Market Competition hereunder. Licensee shall bear all costs associated with
the services of the Research Firm; provided that in the event that the Research Firm establishes that the Market Share is twenty five percent (25%) or higher for a particular Indication, Licensor shall reimburse Licensee for the full cost of
the Research Firm’s services for such assessment. 
 1.65 “Marketing Authorizations” means the regulatory
authorizations required to sell the Licensed Product in the Territory on a country-by country basis. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 8 

 1.66 “Net Sales” means the consolidated gross amount recognized as sold for any
particular period using IFRS criteria for sales recognition for the Licensed Product by Licensee or its Affiliates or Sublicensees to third parties, minus the following as applicable, using IFRS criteria, (a) returned goods; (b) trade
cash, and quantity discounts accrued and actually taken from the invoiced amount; (c) rebates, including payments in respect of any governmental subsidized programs, rebate payments given to wholesalers or other Licensee buying groups,
healthcare insurance carriers or other institutions; (d) credits or allowances actually given or made for rejection or return of previously sold Licensed Products or for retroactive price reductions (including government mandated rebates and
chargebacks); (e) sales, value added or other taxes or duties levied on or measured by the billing amount for Licensed Products, to the extent billed separately on the invoice and paid for by the customer, as adjusted for rebates and refunds,
as applicable; (f) one percent (1%) of such consolidated gross amount recognized as sold to account for estimated charges for freight and insurance directly related to the delivery or return of Licensed Products to the extent billed
separately on the invoice and paid for by the customer; (g) adjustments for Combination Products as mutually agreed upon in good faith by the Parties, and by Licensor and GNE, (h) uncollectible debts, as incorporated in Licensee
Group’s consolidated accounts consistently applied to all products of Licensee Group, provided however that if collected at a later date such amounts will be added to Net Sales in the Calendar Quarter in which it is received, in all cases as
adjusted periodically to reflect amounts actually incurred in the Territory for items (a) through (f). If a Licensed Product is sold for consideration other than cash, the fair market value of such other consideration shall be included in Net
Sales. 
 1.67 “Opt-In” shall have the meaning assigned to it in Section 4.4.4(ii)(F). 
 1.68 “Opt-in Information” shall have the meaning assigned to it in Section 4.4.4(ii)(F)(d)(A)(b). 
 1.69 “Opt-in Notice Date” shall have the meaning assigned to it in Section 4.4.4(ii)(F)(d)(A)(a). 
 1.70 “Other Product” shall mean any chemical entity or pharmaceutical product other than a Licensed Product which is acquired, owned,
Controlled or being the object of research and development activities by Licensor in the field of endocrinology, or other areas as may be mutually agreed by the Parties in writing. 
 1.71 “Patent Rights” means any patents, patent applications, certificates of invention, or applications for certificates of invention
and any supplemental protection certificates together with any extensions, registrations, confirmations, reissues, substitutions, divisions, continuations or continuations-in-part, reexamination or renewals thereof. 
 1.72 “Phase I Clinical Trials” shall mean those clinical trials on sufficient number of volunteers/subjects that are designed to
establish safe drug doses and to support testing in Phase II Clinical Trials. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 9 

 1.73 “Phase II Clinical Trials” shall mean those clinical trials on sufficient number of
patients that are designed to explore the dosage, safety and biological activity of a drug for intended use, and to define warnings, precautions and adverse reactions that are associated with the drug in the dosage range to be prescribed.

 1.74 “Phase III Clinical Trials” shall mean those clinical trials on sufficient number of patients that are designed to
establish that a drug is safe and efficacious for its intended use, and to define warnings, precautions, and adverse reactions that are associated with the drug in the dosage range to be prescribed and supporting Marketing Authorization of such drug
or label expansion of such drug. 
 1.75 “Product Improvement” shall mean any improvements and/or enhancements or other
desirable change to the technical/pharmacological characteristics of the Initial Product (or an enhanced or improved version of the Initial Product), whether patentable or not, including, without limitation, improvements or enhancements in the
manufacture, formulation, ingredients, preparation, presentation, means of delivery or administration, dosage, indication for use or packaging of the Initial Product. 
 1.76 “Promotional Efforts” shall mean, as to a given Licensed Product, the annual sales, medical and marketing efforts planned by the Licensee in the promotion and marketing of such Licensed Product
in a country of the Territory after the First Commercial Sale in such country. The Promotional Efforts shall be detailed in the Commercialization Plan which shall include without limitation sales plan, number of calls by medical representatives,
intended Phase IV (post-approval) studies and budget related thereto for such Licensed Product in such country (although the actual Phase IV study design and budget therefor will be addressed in a Development Plan for such Licensed Product).

 1.77 “Purchase Agreement” means that certain Stock Purchase and Master Transaction Agreement, dated as of July 18,
2006, by and between Licensee’s Affiliate, and Licensor. 
 1.78 “Regulatory Authority” means any government agency
having the responsibility for granting Marketing Authorizations and any other government entities with authority over the manufacturing and the marketing of the Licensed Product. 
 1.79 “Related Patent Rights” shall have the meaning set forth in Section 2.9 of this Agreement. 
 1.80 “Royalty Term” shall have the meaning ascribed to it in Section 7.2.1 of this Agreement. 
 1.81 “Sales Forecasts” shall mean, as to a given Licensed Product, the annual sales forecasts for the Licensed Product in a country of
the Territory with respect to the Indication(s) for which Licensee has obtained Marketing Authorization. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
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 1.82 “Sample” means Licensed Product delivered to Licensee by Licensor for distribution
by Licensee or otherwise, to health care professionals for trial use by patients at no cost to the patient and not for re-sale pursuant to applicable laws. 
 1.83 “Schedule(s)” refers to the Schedules attached to this Agreement and incorporated herein by this reference. 
 1.84 “SKU” shall mean stock-keeping unit. 
 1.85 “Specifications” means
the standards and specifications relating to the manufacture, testing and packaging of the Licensed Product, which shall be those approved by the Regulatory Authorities in the Territory from time to time and on a country-by-country basis. The
Specifications of the Initial Product as at the Execution Date and as filed with the EMEA are set forth in Schedule 2 attached hereto. 
 1.86 “Sub-licensee” means a third party to whom Licensee or its Affiliates sublicenses, assigns or otherwise delegates some or all of their rights and obligations under this Agreement. Sub-licensee shall also include any
third party who purchases its supply of Licensed Product, in finished form from Licensee, its Affiliates or Sublicensee for resale into the market, where, as a partial or full consideration for such purchase, such third party has a payment
obligation to Licensee, its Affiliates or Sublicensee that is a percentage of its net sales, including without limitation a royalty obligation. 
 1.87 “Subsequent Development Plan” shall mean the specific plan for Development activities to obtain initial Marketing Authorization or Marketing Authorization for a Product Improvement, Combination Product or, as the case
may be and where agreed pursuant to Section 4.3.3, Other Product, submitted by one Party to the other Party pursuant to Sections 4.3.2 and 4.3.3 of this Agreement. 
 1.88 “Supply Price” shall have the meaning ascribed to it in Section 6.5 of this Agreement. 
 1.89 “Target Label” shall mean the Indication for which the Parties intend that the Marketing Authorization will be granted, and the correlative estimated patient population which the Parties expect may be treated by such
Indication (the “EU Target Population”), with respect to the Initial Product in the member states of the European Union, Norway, Iceland and Liechtenstein as further described in Schedule 4. 
 1.90 “Technical Agreement” shall have the meaning ascribed to it in Section 6.1.1 of this Agreement. 
 1.91 “Territory” means all countries of the world, excluding the United States of America, Canada, Japan, and excluding until the
license provided for in Section 2.4 is in effect with respect thereto, the Third Party Countries. 
  

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 1.92 “Third Party Countries” means Taiwan, Israel, the Kingdom of Saudi Arabia, United
Arab Emirates, Oman, Kuwait, Syria, Jordan, Lebanon, Iran, Iraq, Morocco, Algeria, Tunisia, Libya, Egypt, Bahrain, Qatar, Yemen, and the territories and possessions of each of the foregoing countries. 
 1.93 “Valid Claim” means any claim of a pending patent application of a Licensed Patent Rights which has not been abandoned or finally
rejected without the right of appeal or which is not known to be unpatentable, or any claim from an issued and unexpired Licensed Patent Rights which has not been revoked or held unenforceable or invalid by a decision of a court or other
governmental authority of competent jurisdiction without the right of appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 
  

	2.	LICENSE GRANT 

 2.1
Exclusive License. 
 2.1.1 Subject to the terms and conditions of this Agreement Licensor grants to Licensee and
Licensee’s Affiliates (for so long as they remain Affiliates of Licensee): 
 (i) an exclusive, royalty-bearing license
right, with the right to grant sublicenses pursuant to Section 2.2, to use and exploit Licensor IP Rights (including Licensor’s interest in any and all Joint Know-How and Joint Patents) to import, have imported, use, and have used to
research and Develop the Initial Product and those other Licensed Products which are jointly Developed by the Parties or solely developed by Licensee or as to which Licensee elects to exercise its Opt-in rights pursuant to Section 4.4.4(ii)F,
in the Field and in the Territory, as and to the extent permitted under this Agreement; 
 (ii) a non- exclusive,
royalty-bearing license right, to use and exploit Licensor IP Rights (including Licensor’s interest in any and all Joint Know-How and Joint Patents) to use and have used to research and Develop the Initial Product and those other Licensed
Products which are jointly Developed by the Parties or solely developed by Licensee or as to which Licensee elects to exercise its Opt-in rights pursuant to Section 4.4.4(ii)F, in the Field and in the Licensor Territory, as and to the extent
permitted under this Agreement; and 
 (iii) an exclusive (even as to Licensor or Licensor’s Affiliates), royalty-bearing
license right, with the right to grant sublicenses pursuant to Section 2.2, to use and exploit Licensor IP Rights (including Licensor’s interest in any and all Joint Know-How and Joint Patents) to use, have used, import, have imported,
offer for sale, sell and have sold Licensed Products in the Territory, in the Field. 
 The grant of exclusive rights to Licensee in subsections (i) and
(iii) of this Section 2.1.1 shall be subject to Licensor’s reservation of the right to use, have used, import, and have imported in the Territory Initial Product and those other Licensed Products which are 

  

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jointly Developed by the Parties or solely developed by Licensor or as to which Licensor elects to exercise its Opt-in rights pursuant to
Section 4.4.4(ii)F, for the purpose of supporting Development of Initial Product or such other Licensed Products in the Field for sale in the Licensor Territory, as and to the extent permitted under this Agreement. 
 2.1.2 Notwithstanding the foregoing, Licensor reserves all rights: 
 (i) under the Licensor Related Patent Rights unless otherwise agreed among the Parties pursuant to Section 2.9 of this Agreement in a
separate written agreement, and 
 (ii) under the Licensor IP Rights to the extent necessary to conduct or have conducted
research, use, manufacture or Development of Licensed Products for sale in the Licensor Territory, as and to the extent permitted under this Agreement. In addition, the license granted in Section 2.1.1 is made subject to GNE’s retained
rights to perform in vitro research and development activities with respect to IGF-1 in the Field in the Territory (as provided in the Section F.1(f) of the GNE Ex-US License). 
 2.1.3 Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee and Licensee’s Affiliates (for
so long as they remain Affiliates of Licensee) an exclusive (even as to Licensor or Licensor’s Affiliates), royalty-bearing license right, with the right to grant sublicenses, to use and exploit the Licensed Trademarks on and solely in
connection with the Development and commercialization of the Licensed Product throughout the Territory, in the Field. 
 2.1.4 Licensee acknowledges and understands that as of the Execution Date, Licensor is in patent litigation proceedings in the United Kingdom with regard to the alleged infringement by Insmed Incorporated and Avecia Limited of
certain of the Licensed Patent Rights in the United Kingdom (and related patent validity proceedings involving GNE), and Licensor and GNE are co-plaintiffs in patent litigation proceedings in the U.S. with respect to the alleged infringement by
Insmed Incorporated of certain Patent Rights of Licensor in the U.S., and that as part of the possible global settlement of such litigation, Insmed Incorporated may require a license to use and exploit the Licensed Patent Rights in the Territory to
make, use and sell (A) its product IPLEXTM (mecasermin rinfabate [rDNA origin] injection) product (hereinafter referred to as “IPLEX”), (B) a product that is a preserved reformulation of IPLEX in a multi-use vial, which
product is to be selected by Insmed (hereinafter referred to as “MULTIPLEX”) and/or (C) any product containing IGF-1 in combination with IGFBP-3. Accordingly, and notwithstanding the grant of rights to Licensee by Licensor in this
Section 2.1, Licensee agrees to consider in good faith, promptly following the reasonable request of Licensor, the conditions under which such license may be granted to Insmed Incorporated, its Affiliates and its successors-in-interest, (which
entities are collectively and individually referred to herein as “Insmed”) by Licensee (either directly, or by reverting such rights to Licensor for direct grant to Insmed). These issues of alleged infringement by and grant of license
rights to Insmed shall first be addressed within the Joint Patent Committee following the request of either Party, and such Joint Patent Committee shall recommend a course of action to the Joint Steering Committee. The Joint Patent Committee 

  

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shall in particular consider the following: (i) the outcome or likely outcome of the ongoing patent litigations involving Insmed, (ii) the
management of such patent litigation, and costs associated therewith as weighed against the benefits of possible settlement, (iii) the possible means of settlement of such patent litigation including the granting of a non-exclusive right and
license to use and exploit the Licensed Patent Rights to use, have used, make, have made, sell, have sold, offer for sale, have offered for sale, import, have imported, export and have exported in the Territory (A) IPLEXTM and/or
(B) MULTIPLEX and/or (C) any product containing IGF-1 in combination with IGFBP-3 together with a right to sub-license wholesalers and distributors on agreed terms and subject to prior agreement of Licensee and GNE, (iv) the
allocation among the Parties and GNE of all monies paid by Insmed pursuant to such litigation, settlement or license agreement, and (v) the allocation among the Parties and GNE of all costs incurred in the conduct of the litigation. It is also
understood that as between the Parties and to the extent permitted under Section 8.2.2 Licensee shall be entitled to elect to manage and assume control of (subject to GNE’s consent) the ongoing patent litigation proceedings against Insmed
in the Territory, in which event the conditions thereon shall also be discussed within the Joint Patent Committee and Licensor shall use its reasonable endeavors to assist with the handover of the management of the ongoing proceedings in the
Territory in accordance with the foregoing provisions in the event Licensee so elects. If, as part of the overall strategy, either Party considers it desirable to institute new proceedings in the Territory against Insmed or its manufacturers, this
issue shall also be referred to the Joint Patent Committee for consideration. The Joint Patent Committee shall work together with the Joint Finance Committee to propose to the Joint Steering Committee an action plan with respect to issues set forth
in this Section 2.1.4 and the JSC shall make a determination based upon such action plan for implementation by the Parties. Within the framework of the Joint Patent Committee and the Joint Finance Committee, Licensor and Licensee shall keep
each other appraised on a regular basis of the status of such litigation proceedings and any settlement discussions, and review and consider in good faith, all comments or input received from the other with respect thereto. 
 2.2 Sublicense Rights, Third Party Distributors. Licensee shall have the right to sublicense the rights granted in Section 2.1 to
Sub-licensees and/or to appoint third party distributors, subject to the prior written consent of Licensor and GNE which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, Licensee shall remain responsible for complying,
and for ensuring that such Sub-licensees and distributors comply, with this Agreement, all relevant laws, regulations and requirements relating to the importation, distribution, marketing, promotion and sale of the Licensed Product in the Territory.
Any sub-license and distributorship agreement shall contain terms and conditions that are not inconsistent with those of this Agreement. 
 2.3 Excluded Indications. In the event at any time after the Effective Date, Licensor possesses, acquires, or regains rights to Develop, sell, offer for sale, use, export and/import the Licensed Product for the Excluded Indications,
such Excluded Indications shall be automatically included in the Field, subject to Section F.5 of the GNE Ex-US License. 
  

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 2.4 Territory; Third Party Countries. With respect to each Third Party Country, Licensor
shall keep Licensee apprised of any anticipated and actual expiry or termination of the relevant distribution agreement for such Third Party Country with one or more third parties with whom Licensor has entered into such distribution agreement.
Distribution Agreements for the Third Party Countries in effect as of the Execution Date are listed in Schedule 5. Licensor shall notify Licensee reasonably in advance of the expected date of expiry or termination of such third parties’
rights. With respect to each Third Party Country, Licensor hereby agrees that it shall not seek to renew or extend the term of such Distribution Agreement, and that Licensee shall automatically be granted all rights as provided for in
Section 2.1 above upon both (i) expiry or termination of the relevant distribution agreement with one or more third parties with whom Licensor has entered into such distribution agreement, and (ii) the written consent of GNE, not to
be unreasonably withheld or delayed, and which Licensor shall, where practicable, seek at least six (6) months ahead of the foreseen expiry or termination thereof. Licensor shall indemnify and hold harmless Licensee against any claim from these
third parties in relation to the execution, termination or expiry of their contractual arrangements with Licensor. 
 2.5 Licenses to
Licensor. 
 2.5.1 Licensee hereby grants to Licensor, 
 (i) a non-exclusive, sublicensable license under Licensee’s interest in any Joint Patent Rights and any Joint Know-How to use, have
used, make, have made, research and Develop the Initial Product and those other Licensed Products which are jointly Developed by the Parties or as to which Licensor elects to exercise its Opt-in rights pursuant to Section 4.4.4(ii)F, in the
Field and in the world, as and to the extent permitted under this Agreement; and 
 (ii) an exclusive, sublicensable license
under Licensee’s interest in any Joint Patent Rights and any Joint Know-How to sell, offer for sale, import, have imported and export in the Field and in the Licensor Territory, the Initial Product and those other Licensed Products which are
jointly Developed by the Parties or as to which Licensor elects to exercise its Opt-in rights pursuant to Section 4.4.4(ii)F. 
 2.5.2 Licensee hereby represents and warrants that, as of the Execution Date, Licensee does not own or Control any Patent Rights that claim the composition of matter of, or the method of making or any use of, the Initial Product in
the Licensor Territory (“Licensee Independent Patent Rights”). Notwithstanding the foregoing, to the extent any such Licensee Independent Patent Rights are after the Execution Date found to exist, Licensee hereby covenants that,
during the term of this Agreement, neither it, nor its Affiliates, shall assert against Licensor, its Affiliates or any sublicensees, a claim of infringement of such Licensee Independent Patent Rights based upon the research, development, use,
manufacture, sale, offer for sale, import and export of the Initial Product in the Field and in the Licensor Territory or the research, development, use and manufacture of the Initial Product in the Field and in the Territory. Provided however that
Licensor acknowledges and agrees that Licensee does not covenant that, during the term of this Agreement, neither it, nor its Affiliates, would not assert against Licensor, its Affiliates or any sub-licensees, a claim of infringement of Related
Patent Rights Controlled by Licensee unless otherwise agreed among the Parties pursuant to Section 2.9 of this Agreement in a separate written agreement 
  

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 2.6 Right of First Negotiation for Other Products. 
 2.6.1 When acquiring or gaining Control of any Other Product with respect to Licensor Territory, to the extent it is on
commercially reasonable terms and does not have an adverse effect on the interests of Licensor to do so, Licensor shall endeavor to acquire or obtain Control of such Other Product with respect to the Territory. With respect to those Other Products
owned or Controlled by Licensor as of the Effective Date, Licensor shall provide or cause to be provided to the JSC a list of such Other Products and their status of development. 
 2.6.2 For a period of six (6) years from the Execution Date (the “Option Period”) Licensee shall have a right
of first negotiation with respect to the development and commercialization of Other Products for the Territory as set forth in this Section 2.6. During the Option Period, promptly following the acquisition or obtaining Control of any Other
Product by Licensor for the Territory, Licensor shall notify Licensee of such Other Product and simultaneously provide to Licensee all necessary information relating to such Other Product to enable Licensee to decide as to whether it wishes to
exercise its right to negotiate with Licensor to obtain the exclusive rights to develop and/or commercialize the Other Product in the Territory, as the case may be, depending upon the development stage of such Other Product and Licensor shall not
market or commercialize such Other Product in the Territory (either itself or through its Affiliates, Sublicensees or other third party) unless and until Licensee has either notified Licensor of its decision to negotiate rights on such Other Product
for the Territory or the time for such notification has lapsed. Licensee shall notify Licensor of its decision to so negotiate within thirty (30) days as from receipt of the above information. Failure by Licensee to make such notification will
be deemed as a refusal of its first right of negotiation for the development and/or commercialization of the Other Product in the Territory. 
 2.6.3 In the event Licensee notifies Licensor of its decision to develop and commercialize the Other Product in the Territory, the Parties shall have one hundred-twenty (120) days or more if mutually
agreed in writing (the “Negotiation Period”) to negotiate exclusively the terms and conditions applicable to such collaboration, including, as appropriate, any co-development of such Other Product, and the payment of any license
fees or other payments owed any third party by Licensor with respect to the development or commercialization of the Other Product in the Territory. 
 2.6.4 In case of failure by Licensee to notify Licensor of Licensee’s decision to exercise its right of first negotiation within the thirty-day (30) period or failure of the Parties to reach an
agreement within the Negotiation Period, Licensor shall be free to itself develop and commercialize such Other Product in the Territory and/or enter into any agreement with any third parties to develop and/or commercialize the Other Product in the
Territory, provided, however, that for a period of twelve (12) months after the end of the Negotiation Period, Licensor shall not enter into any agreement with such a third party for rights to such Other Product in the Territory on terms less
favorable to Licensor, when viewed in their totality, than those last offered by or to Licensee. 
  

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 2.6.5 Notwithstanding Licensee’s right of first negotiation as set forth
above, Licensor may propose to Licensee that the Parties conduct a Joint Subsequent Development Plan for such Other Product or that a Subsequent Development Plan for such Other Product be conducted solely by the Licensor with the right for the
Licensee to Opt-in, pursuant to the provisions of Sections 4.4.3 and 4.4.4 either prior to, or subsequent to any exercise by Licensee of its rights to negotiate for the exclusive license to such Other Product as provided for above. It is expressly
understood and agreed however that nothing in this Agreement shall be interpreted as a license by Licensor to Licensee of any rights to such Other Product and that any such license will be only as may be agreed upon in writing by the Parties
following the Effective Date. 
 2.7 Limitations on Commercializing Licensed Products for Diabetes. Notwithstanding Section 2.1,
Licensee agrees and acknowledges the limitations placed upon Licensor pursuant to Section F.1(e) of the GNE Ex-US License. Accordingly, Licensee covenants that, with respect to Diabetes in the Territory, it will not (i) market, sell, offer for
sale or have sold IFG-1 for which the manufacture, use or sale would infringe, if not for the licenses granted under this Agreement, the Patent Rights licensed to Licensor under the GNE Ex-US License; and (ii) market, sell, offer for sale or
have sold IGF-1 that was manufactured or for which approval was received using the Licensed Know-How licensed to Licensor pursuant to the GNE Ex-US License, unless and until the Diabetes Covenant Expiration. As used herein, the “Diabetes
Covenant Expiration” means the date upon which Licensor enters into a written agreement with F. Hoffman-La Roche AG granting Licensor the right to market, sell, offer for sale or have sold Licensed Products for Diabetes in the Territory.
Upon the Diabetes Covenant Expiration, the license granted to Licensee in Section 2.1 shall automatically be deemed to include Diabetes in the Field definition to the extent, and only to the extent, Licensor obtains such rights and the right to
sublicense the same to Licensee from F. Hoffmann-La Roche AG and as provided in Section F.1(e) of the GNE Ex-US License. 
 2.8
Limitations on Certain Combination Products. 
 Notwithstanding Section 2.1, Licensee agrees and acknowledges the limitations placed
upon Licensor pursuant to Section F.4 of the GNE Ex-US License as of the Execution Date with respect to any Combination Product containing either IGF-I, or IGF-I combined with BP3, complexed or combined in any manner with any form of GH (a
“GNE Combination Product”), in keeping with which limitations Licensee shall receive no right or license hereunder to engage in the human clinical development, marketing, or sale of any GNE Combination Product. In addition, Licensee
agrees and covenants that it and its Affiliates will not, without Licensor’s prior written consent: 
 (a) engage
in human clinical development, market or sell any GNE Combination Product; or 
 (b) sublicense the rights to engage in
the activities set forth in Subsection 2.8 (a) to any Affiliate or third party. Nothing in this Section 2.8 shall be interpreted as prohibiting GNE from marketing and/or selling its growth hormone products and IGF-I (as permitted under the
GNE Ex-US License) separately, even if such activities result in both products being prescribed on one or more occasion to the same patient(s), provided GNE does not actively market the products to be used in combination with each other without
Licensee’s prior written consent. 
  

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 2.9 Other Cross Licenses. In the event either Party desires to incorporate technology in the
discovery, research, composition of matter of, or the making or using of Licensed Products pursuant to a Development Plan (“Technology”), and if such Technology is Covered by Patent Rights which are necessary for the performance of the
works contemplated by such Development Plan, in that such Patent Rights would be infringed by the commercial exploitation of the Licensed Product resulting from the performance of such Development Plan and which either are (i) Licensor Related
Patent Rights; or (ii) Licensee Related Patent Rights, or (iii) owned by a third party (collectively, “Related Patent Rights”) such Party shall inform the JSC of such Related Patent Rights for the JSC’s consideration
as part of its consideration of the Development Plan at issue. If the JSC approves incorporation of such Related Patent Rights, it shall determine (i) the allocation between the Parties of any costs owed or to be owed to such third party owning
or Controlling such Patent Rights; or (ii) the consideration to be paid by one Party to the other Party for obtaining a cross license under such Related Patent Rights. If the JSC does not approve such incorporation or the Parties cannot agree
upon such allocation of costs or consideration to be paid to the other Party, then the Party that made the proposal (Licensor or Licensee) may incorporate such Technology in the discovery, research or Development of the Licensed Product within the
framework of a sole Development Plan, as and to the extent permitted under this Agreement, and use, have used import, have imported offer for sale, sell and have sold the result of such sole Development Plan in the Licensor Territory or Licensee
Territory, as the case may be. The foregoing shall remain subject to the Opt-in right of the other Party as set out in Section 4.4.4 of this Agreement, itself subject to prior written agreement among the Parties on the consideration to be paid
by the Opt-in Party to the Developing Party for a license under such Related Patent Rights, without which prior written agreement such Opt-in right shall not include a license under such Related Patent Rights. 
  

	3.	GOVERNANCE 

 3.1 Joint Steering Committee

 3.1.1 Constitution and Powers. 
 The Parties shall establish a Joint Steering Committee (“JSC”) which will consist of an equal number of representatives
of each Party, initially designated at four (4) representatives appointed by each Party among its employees or consultants. Each Party shall, within thirty (30) days after the Effective Date, select its initial representatives and inform
the other Party of such representatives and set a date shortly thereafter (no later than thirty (30) days) for the first meeting of such JSC, provided that such representatives shall be senior persons responsible for the applicable functional
area (i.e., research, clinical development and regulatory, manufacturing, or commercialization) within each Party. The initial representatives from the Parties are set forth in Schedule 12. Each Party may replace its representatives at any time on
prior written notice to the other Party. Each Party will have the right from time to time to invite to JSC meetings employees or consultants other than its representatives to address specific issues discussed at such JSC meetings. The chairperson of
the JSC shall be appointed by Licensor. 
  

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 The JSC shall act as a consultative and decision making body for the purpose of designing
and monitoring the implementation of Development Plans and generally shall act as the forum for information sharing among the Parties with respect to the Development of the Licensed Product, Commercialization Plans, Product Improvements, Combination
Products and potentially Other Products (as and to the extent agreed by the Parties), their manufacture, supply and marketing. In particular, the JSC shall : 
 (i) exchange information (including Development, manufacture, supply and marketing information) related to the Licensed Product, Product
Improvements, Combination Products and potentially Other Products and facilitate cooperation and coordination between the Parties as they exercise their respective rights and meet their respective obligations under this Agreement, 
 (ii) design an Initial Development Plan within one hundred and eighty (180) days following the Effective Date and which shall be
undertaken by the Parties jointly as set forth in Section 4.3.1, 
 (ii) review proposals from either Party on any
Subsequent Development Plans, 
 (iv) review and decide on any changes to the Development Plans, 
 (v) with respect to the Initial Development Plan and Joint Subsequent Development Plans : 
  

	 	•	 	 Allocate the duties among the Parties, 

  

	 	•	 	 Implement all activities and monitor and coordinate all activities, including scheduling and prioritization thereof, 

  

	 	•	 	 Develop a publication strategy and a calendar of key scientific and clinical meetings or other events, 

  

	 	•	 	 Determine the priorities with respect to seeking Marketing Authorization. 

 (vi) with respect to Subsequent Development Plans that is the object of sole Development by a Developing Party: 
  

	 	•	 	 Review the activities of the Developing Party under such Subsequent Development Plan, 

  

	 	•	 	 Review all Opt-In Information. 

 (vii) appoint working sub-groups whose duties and power shall be determined by the JSC and who shall meet as necessary to provide relevant information for the JSC to carry out its duties under this Agreement ; and

 (viii) Liaise with and manage the JFC. 
  

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 (ix) promptly following the Effective Date, itself or through an appointed sub-group,
become the forum for the discussion and analysis of the handling of regulatory matters in the Territory and the specific determination of the role of Licensee in acting as Licensor’s regulatory agent under Section 5.1. 
 3.1.2 Meetings of the Joint Steering Committee and Minutes. 
 The JSC shall meet at least twice (2) per Calendar Year for so long as the Initial Development Plan is being carried out by the
Parties and Subsequent Development Plans are being jointly Developed by the Parties. Meetings of the JSC may be attended in person or by telephone or video conference. If in person, the location of the meeting shall alternate at a place decided by
Licensor and Licensee, sequentially. The chairperson of the JSC shall be responsible for providing an agenda for each meeting at least ten (10) business days in advance of such meeting. 
 In the event one Party solely carries out Development under a Subsequent Development Plan, the JSC shall meet once a Calendar Year, unless
otherwise mutually agreed (on a date and location to be mutually agreed in good faith between the Parties) only to review (i) the Subsequent Development Plan and material modifications thereto, (ii) implementation thereof and progress and
(iii) Opt-in Information during the Opt-in Notice Period as set forth in Section 4.4.4 of this Agreement. 
 Responsibility for the preparation of minutes setting forth discussions held at each JSC meeting shall alternate between the Parties as directed by the chairperson, provided, however, that such minutes will not become official until agreed
upon by the JSC representatives of both Parties. The minutes of such JSC meetings shall be reasonably detailed and distributed in draft minutes to all members of the JSC for comment and review within ten (10) business days after the relevant
meeting. The JSC members shall have seven (7) business days to provide comments. The Party preparing the minutes shall incorporate timely received comments and distribute finalized minutes to all members of the JSC within twenty-four
(24) business days of the relevant meeting. 
 3.1.3 Decision-making Authority. 
 Decisions of the JSC shall be taken unanimously. In the event of a disagreement or a deadlock, the matter shall be referred to senior
executives of the Parties pursuant to Section 15.1. If the disagreement or deadlock persists and is not resolved in the period provided for in Section 15.1, Licensor shall have the right to cast a tie-breaking vote which shall be
reasonably exercised. It is understood and agreed that the exercise by Licensor of a tie-breaking vote so as to resolve a disagreement or deadlock at the JSC shall in no way result in the elimination or reduction of Licensor’s obligation to use
Diligent Efforts to participate and co-fund the Initial Development Plan and any Joint Subsequent Development Plans under the terms of this Agreement. 
 However, in the event that a dispute referred to the Parties pursuant to Section 15.1 is in relation to matters contemplated in Section 3.2.3 of this Agreement as to which the JFC is to agree, including
those matters set forth in Section 2.1.4, or with respect to matters related to the manufacture, supply and marketing of Licensed Product in the Territory is referred 

  

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to the JSC, Licensor shall have no tie-breaking vote in which event the provisions of Article 15 shall apply. For clarity, it is understood that as between
the Parties, Licensor shall at all times have the right to control all decisions relating to the marketing and selling of the Licensed Product in the Licensor Territory. 
 3.2 Joint Finance Committee. 
 3.2.1 Membership. Upon the establishment of the
JSC, the Parties shall establish a Joint Finance Committee (“JFC”) to be composed of one (1) employee representative appointed by each Party. Such representative shall be an employee with expertise and responsibilities in the
areas of accounting, cost allocation, budgeting and financial reporting. The JFC representative of each Party may call on any additional employee of that Party to attend the JFC meeting on an ad hoc basis. 
 3.2.2 Meetings. The JFC will meet as appropriate but at least quarterly to review the following, as applicable: (i) each
Party’s Development Costs; (ii) Net Sales, milestone payments, royalty payments; (iii) the results of any completed audits conducted in accordance with Section 7.2.4. In addition to the foregoing, in the event one Party solely
conducts any Subsequent Development Plan, the JFC shall meet (on a date and location to be mutually agreed in good faith between the Parties) to review the Pre Opt-in Development Costs during the Opt-in Notice Period after receipt of the Opt-in
Information. 
 3.2.3 Decisions of JFC. The JFC shall operate by consensus and decisions of the JFC shall
be taken unanimously. If the JFC is unable to resolve a dispute regarding any issue presented to it, such dispute shall be referred to the JSC for resolution. The JFC shall operate under the direction of the JSC to provide services to and consult
with the JSC in order to address the financial, budgetary and accounting issues under the Agreement. The JFC members may participate in any meetings of the JSC upon request of the JSC. 
 3.3 Coordination of JSCs and JFCs. The Parties acknowledge and agree that there is to be a separate Joint Steering
Committee and Joint Finance Committee created pursuant to the Somatuline Agreement, with equal and potentially overlapping membership as that present on the JSC and JFC created pursuant to Section 3.1 and 3.2 above. Where possible, the Parties
shall endeavor to coordinate and potentially combine meetings of the respective Joint Steering Committees and Joint Finance Committee meetings so as to ensure efficient governance and oversight of both collaborations between the Parties, including
for example, holding such meetings on the same dates and/or same locations. 
  

	4.	DEVELOPMENT PLAN AND CONDUCT OF DEVELOPMENT ACTIVITIES

 4.1 Licensor On-going Development. 
 Licensor shall be solely responsible for the completion of the Licensor On-going Development at its own cost and expense with a view to
obtain Marketing Authorization in the Target Label in the countries of the European Union in the Territory. 

  

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Licensor shall promptly provide (or make available) to Licensee all relevant information relating to such Licensor On-going Development including without
limitation the clinical data reports, regulatory files and submissions and correspondence with Regulatory Authorities resulting therefrom. 
 4.2 Development Plan – General. 
 Any Development Plan shall provide for the Development activities to
be carried out by the Parties, either jointly or separately as the case may be. A Development Plan should avoid unnecessary duplication by the Parties in any activity and have a goal of an appropriate allocation of responsibilities in light of the
Development activities involved. Each Party shall provide information to the JSC (including Confidential Information) necessary for the JSC coordinating and deciding on such Development Plan activities with the other Party. 
 Consistent with the above principles, the Development Plan should include: 
  

	 	•	 	 specific tasks, location of work, milestones, budgets (determined with reference to Development Costs), estimated timelines, immediate objectives, and long term
objectives and a determination of the various research and development activities that shall be performed by each Party: 

  

	 	•	 	 provisions for manufacturing and supply of Licensed Product for clinical uses; 

  

	 	•	 	 Development activities including preclinical safety and other studies to support Phase I Clinical Trials, Phase II Clinical Trials and/or Phase III Clinical Trials
and/or filing for and obtaining and maintaining Marketing Authorization; and 

  

	 	•	 	 identification of resource requirements of the Development Plan and allocation of those resources between the Parties. 

 4.3 Initial Development Plan and Subsequent Development Plans of Licensed Products and Other Products. 
 4.3.1 Initial Development Plan. 
 Each Party shall require its representatives at the JSC to use their Diligent Efforts to negotiate in good faith and prepare an Initial Development Plan within one hundred and eighty (180) days following the
Effective Date along the guidelines set out in Schedule 6 to this Agreement. If the JSC approves an Initial Development Plan, it shall be attached hereto as Schedule 6-bis and may be amended or updated only upon approval by the JSC.
The Initial Development Plan shall be updated annually by the JSC at a time decided by the JSC and suitable for both Parties’ planning and budgeting processes. The Initial Development Plan and any modifications thereto (including a change of
scope of the responsibilities of the Parties or changes to the budgets) shall be approved by the JSC 

  

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in the written minutes of the applicable JSC meeting. In the event the Parties agree on such Initial Development Plan, the Parties shall jointly perform and
fund such Initial Development Plan as set forth in Section 4.4.3 and the Parties shall each have access to, and the rights to use in their respective territory, data arising out of such Initial Development Plan and shall jointly own the same
(as Joint Know-How) as set forth in Section 8.3 of this Agreement. 
 4.3.2 Subsequent Development Plans for Product
Improvements and Combination Products. 
 All Development activities for the Initial Product, Product Improvements or
Combination Products (other than those set forth in the Initial Development Plan), shall be conducted pursuant to a Subsequent Development Plan in conformance with this Section 4.3.2, unless otherwise agreed by the Parties in writing. Each
Party may propose to the other Party to perform a Subsequent Development Plan for a Product Improvement or a Combination Product : the JSC shall reasonably consider such proposals and the other Party may make comments or counter proposals with
respect to all parameters of such proposal, including budget and the Parties shall thereafter negotiate in good faith with a view to agreeing on a Subsequent Development Plan. 
 In the event the Parties agree on such Subsequent Development Plan, the Parties shall jointly perform and fund such Subsequent Development Plan as set
forth in Section 4.4.3 and the Parties shall each have access to, and the rights to use in their respective territory, data arising out of such Subsequent Development Plan and shall jointly own the same (as Joint Know-How) as set forth in
Section 8.3 of this Agreement. 
 In the event a Party does not agree with and does not want at such time to participate in, a Subsequent
Development Plan proposed by the other Party, the proposing Party may, at its own risk, decide unilaterally to perform such Subsequent Development Plan and may subcontract whole or part of such Subsequent Development Plan to the extent such
subcontract is not detrimental to the Opt-In rights of the non-Developing Party set forth in Section 4.4.4(ii)(F) of this Agreement; provided, however that at any time during the Opt-In Period, the non-Developing Party may opt to perform
and/or co-fund such Subsequent Development Plan, in which event the Opt-in Party may develop, market, promote, sell, have sold the Product Improvement or Combination Product arising from such Subsequent Development Plan in the Territory (where the
Opt-in Party is the Licensee) or in the Licensor Territory (where the Opt-in Party is the Licensor). 
 Notwithstanding the foregoing
paragraph, Licensor may only conduct Development activities in a Subsequent Development Plan and designed to take place in the Territory with the prior written agreement of Licensee, which shall not be unreasonably withheld or delayed; provided,
however, that nothing herein shall be deemed to prevent Licensor from applying for a Marketing Authorization in the Territory as Licensor may deem appropriate. Once granted, the agreement of Licensee can not be withdrawn unless otherwise agreed with
Licensor. 
  

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 For the avoidance of doubt, Licensee shall have no right to carry out any Development activity with
regards to the Initial Product, Product Improvements, or Combination Products, except in the context of a Subsequent Development Plan, in compliance with this Section 4.3.2. In addition, Licensee may only conduct Development activities in a
Subsequent Development Plan which are designed to take place in the Licensor Territory with the prior written agreement of Licensor, which shall not be unreasonably withheld or delayed, and which agreement, once granted, cannot be withdrawn unless
otherwise agreed with Licensee, but which in all cases is subject to any rights GNE may have pursuant to Article IV of the GNE US License in the Licensor Territory. 
 4.3.3 Subsequent Development Plans For Other Products. 
 Notwithstanding each Party’s right of first negotiation for Other Products as set forth in Section 2.6, either Party may propose
to the other Party, through the JSC, to participate in and perform a Subsequent Development Plan for an Other Product in which event the JSC shall reasonably consider such proposals and the other Party may make counter proposals with respect to all
parameters of such proposal, including budget and the Parties shall thereafter negotiate in good faith with a view to agreeing on a Subsequent Development Plan for such Other Product. 
 In the event the Parties agree on such Subsequent Development Plan for an Other Product, the Parties shall jointly perform and fund such Subsequent
Development Plan for an Other Product as set forth in Section 4.4.3. The Parties shall each have access to, and the rights to use in their respective territory, data arising out of such Subsequent Development Plan and shall jointly own the same
(as Joint Know-How) as set forth in Section 8.3 of this Agreement. 
 In the event a Party does not agree with a Subsequent Development
Plan for an Other Product proposed by the other Party, such other Party may, at its own risk, decide to perform such Subsequent Development Plan for an Other Product wherever in the world. To the extent a Party does not agree to participate in such
Subsequent Development Plan, it shall not forfeit its rights of first negotiation under Section 2.6 but such Party shall not have any Opt-In right under Section 4.4.4(ii)F with respect to such Other Product unless and until mutually agreed
upon by the Parties. The Developing Party may subcontract whole or part of such Subsequent Development Plan provided however that if such Developing Party is Licensor, such subcontract shall not be detrimental to the right of first negotiation of
Licensee as set forth in Section 2.6 of this Agreement. 
 4.4 Conduct of Development Activities. 
 4.4.1 General Rules Applicable to Joint and Sole Development 
 The Parties shall use Diligent Efforts to conduct their tasks and obligations under any Development Plan: 
  

	 	•	 	 in accordance with good laboratory, good clinical and current Good Manufacturing Practices, to the extent these are applicable; 

  

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	 	•	 	 in accordance with all relevant legal requirements and shall be responsible for obtaining all necessary approvals therefor from any Regulatory Authorities or
applicable competent authority; and, 

  

	 	•	 	 keeping or causing to be kept written laboratory notebooks and other records and reports of the results and progress of the works to be performed in sufficient
detail for the Parties to accomplish their obligations under this Agreement. 

 The Parties acknowledge that
time shall be of the essence in this Agreement and thus that the time deadlines defined in the Initial Development Plan and any Joint Subsequent Development Plan should be complied with and, as a matter of principle, not be postponed. However, the
Parties agree that the time deadlines defined in the Initial Development Plan and any Joint Subsequent Development Plan may be reasonably modified by the JSC. 
 The obligations of any Developing Party pursuing sole Development under a Subsequent Development Plan shall be as set forth in
Section 4.4.4. 
 Licensor reserves the right to reasonably exercise a tie breaking vote at the JSC at any time to change
or modify the Initial Development Plan or any Joint Subsequent Development Plan, or to abandon whole or part thereof, if (i) it is required by Regulatory Authorities, (ii) there are duly justified scientific constraints, (iii) there
are significant increases in the anticipated costs of Development, (iv) there are significant adverse events or conditions relating to the safety or efficacy of the Licensed Product, (v) there are significant, duly justified changes in the
anticipated costs of manufacturing or (vi) the benefits of continued Development do not outweigh the risks. In the event Licensor requests a modification or successive modifications of the Initial Development Plan or of a Joint Subsequent
Development Plan which shall , individually or cumulatively, result in an increase of the aggregate Development Costs to be incurred by more than fifty (50) percent, such modification shall not be effective unless and until approved by the
senior executives of the Parties as provided for in Section 15.1. In case of failure of the senior executives of the Parties to find a common agreement on such modification, Licensee shall have the right to terminate its performance and funding
of the Initial Development Plan or the Joint Subsequent Development Plan, as the case may be, provided however that Licensee shall nonetheless retain it’s Opt-In rights set forth in Section 4.4.4 (ii) F of this Agreement. 

4.4.2 Determination of Development Costs 
 All Development Costs associated with the Development activities carried out by the Parties jointly under the Initial Development Plan or
any Joint Subsequent Development Plans or solely by the Developing Party shall be accounted for as follows: 
  

	 	•	 	 Internal costs of Licensee: EUR [*] per FTE; and Internal costs of Licensor : $[*] per FTE. This reference unit cost shall be reviewed annually by the
Parties on the basis of the inflation rate in the European Union and the U.S., respectively. 

  

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	 	•	 	 External costs: at cost, as properly documented and consistent with the cost recorded for services rendered by third parties in the Developing Party’s books in
any corresponding period. 

 4.4.3 Funding of Joint Development. 
 The Initial Development Plan shall be jointly performed and funded by the Parties. To the extent any Subsequent Development Plan is agreed
upon by both Parties pursuant to Section 4.3.2 or 4.3.3, the Parties shall be obligated to jointly perform or fund such Subsequent Development Plan at the percentage set forth below (“Joint Subsequent Development Plan”).

 All activities undertaken by the Parties pursuant to the Initial Development Plan and any Joint Subsequent Development Plan
shall be funded by the Parties in the following proportion: Licensor shall be responsible for sixty percent (60%) of all Development Costs, and Licensee shall be responsible for forty percent (40%) of all Development Costs. As used in this
Agreement, “Licensor Allocation” shall mean such sixty percent (60%) of the Development Costs as provided in the foregoing sentence, as the case may be and “Licensee Allocation” shall mean such forty percent
(40%) of the Development Costs as provided in the foregoing sentence, as the case may be. Within thirty (30) days of the end of each Calendar Quarter, each Party will notify the JFC in writing of the Development Costs incurred by such
Party during such Calendar Quarter, and the JFC shall aggregate such Development Costs and allocate them to the Parties in accordance with the percentages set forth in the foregoing sentence. Where needed in order to reflect such allocated
Development Costs, corresponding “true up” payments will be made by the Party underpaying its share of Development Costs to the Party having overpaid its share, quarterly within sixty (60) days following the end of each Calendar
Quarter. 
 4.4.4 Sole Development by one Party and Opt-in Rights. 
 (i) Decision for Sole Development. In the event that the Parties have not agreed to jointly perform or fund any Subsequent
Development Plan pursuant to Section 4.3.2, either Party may pursue and fund at its own risk the Subsequent Development Plans (the “Developing Party”) as and to the extent permitted by this Agreement, in which case the
provisions of this Section 4.4.4 shall apply. 
 (ii) Development Efforts. 
 A. General. Subject to the restrictions set forth in subsection B below regarding conducting Development activities in the
non-Developing Party’s territory, the Developing Party shall make Diligent Efforts (without the duty to make additional expenditures beyond that required to obtain regulatory approval in its own Territory) to perform pre-clinical and clinical
activities in a manner that would be suitable for filings for Marketing Authorization in the Licensor Territory (if Licensee is the Developing Party) or in the Territory (if Licensor is the Developing Party), as applicable, should the non-Developing
Party subsequently exercise its Opt-in rights pursuant to subsection F below. The Developing Party shall provide the JSC with quarterly reports outlining the results of each completed material pre-clinical and clinical study during the preceding
Calendar Quarter. Notwithstanding the foregoing, the Developing Party shall not be required to continue any Subsequent Development Plan or to complete any tasks enumerated therein, prior to the time the other Party exercises its rights to Opt-in.

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
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 B. Territorial Restrictions. If Licensee is the Developing Party, it shall only
carry out the Development activities in the Territory or, outside the Territory but only with the prior written consent of Licensor. If Licensor is the Developing Party, it shall only carry out Development activities outside the Territory or, in the
Territory, but only with the prior written consent of Licensee. 
 C. Supply Obligations. If Licensee is the
Developing Party, Licensor shall supply Licensee with IGF-1 or Licensed Product as clinical supplies in accordance with Article 6 and in quantities to be reasonably determined by the JSC. 
 D. Subsequent Development Plan. 
 Each Party shall have the opportunity to provide input and suggestions with regard to such Subsequent Development Plan. Notwithstanding the foregoing, Licensor shall have the sole right to prohibit any activity
related to any Development under a Subsequent Development Plan pursued by the Licensee as Developing Party if Licensor exercises a tie breaking vote as set forth in Section 4.4.1. If Licensor prohibits such activity, the JSC and the Developing
Party shall comply with such decision and such activity shall be excluded from the Subsequent Development Plan. The Subsequent Development Plan shall be updated by the Developing Party in accordance with the next sentence and be presented to the JSC
at its next meeting. Material modifications to the Subsequent Development Plan shall be submitted to the JSC for review. 
 E. Development Costs under Subsequent Development Plan. 
 The Developing Party shall be responsible for all
Development Costs related to such Subsequent Development Plan, subject to Opt-in by the other Party and sharing of costs pursuant to Section 4.4.4 (ii) (F) below. The Developing Party shall record separately in its books in an
auditable manner, all its Pre Opt-in Development Costs. 
 F. Opt-in. 
 (a) General. With respect to each Subsequent Development Plan pertaining to the Development of a Licensed Product for a particular
Indication, the non-Developing Party (the “Opt-in Party”) shall have the option to decide to participate (“Opt-In”) in the performance and the funding of such Subsequent Development Plan at such times during the
performance of the Subsequent Development Plan as are set forth below (each, an “Opt-In Period”): 
  

	 	•	 	 At any time during pre-clinical development and up to the date of allowance of the first IND in the Licensor Territory or the Territory under the relevant
Subsequent Development Plan (“Opt-In Period 1”); 

  

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	 	•	 	 Within thirty (30) days of receipt of data following completion of each Phase I Clinical Trial under the relevant Subsequent Development Plan (“Opt-in
Period 2”); 

  

	 	•	 	 Within sixty (60) days of receipt of data following completion of each Phase II Clinical Trial under the relevant Subsequent Development Plan (“Opt-in
Period 3”); 

  

	 	•	 	 Within thirty (30) days of receipt of data following completion of each Phase III Clinical Trial with the Licensed Product under the relevant Subsequent
Development Plan and until the filing of a New Drug Application (or equivalent in any country of the Territory) under such relevant Subsequent Development Plan, (“Opt-in Period 4”); 

  

	 	•	 	 At any time after the filing of the first New Drug Application (or equivalent in any country of the Territory) under the relevant Subsequent Development Plan and
before the end of the thirty (30)-day period following the date of obtaining the first Marketing Authorization under such relevant Subsequent Development Plan (“Opt-in Period 5”), 

  

	 	•	 	 Within the thirty (30) day period after expiry of Opt-in Period 5 (i.e., following expiration of the initial thirty-day period following the date of obtaining
Marketing Authorization) (“Opt-in Period 6”). In the event the Licensor is the Developing Party and the Licensee has failed to Opt-in by the end of the Opt-in Period 6, through the failure to deliver either the Opt-in Notification
or Opt-in Payment as set forth below to the Developing Party, Licensor shall be entitled to serve a termination notice pursuant to Section 4.4.4(ii)F(e). 

 Notwithstanding the foregoing general framework, the Parties agree that at the time the non-Developing Party elects not to pursue a Subsequent Development Plan, they shall also agree upon in good faith, through the
JSC, for that Subsequent Development Plan, and depending upon the nature and subject matter thereof, which trials proposed to be conducted thereunder shall comprise a “Phase I Clinical Trial” or “Phase II Clinical Trial” or
“Phase III Clinical Trial” to best provide a fair and reasonable opportunity for the non-Developing Party to Opt-in at appropriate value creation events, and the Developing Party to receive the appropriate Opt-in Payment associated with
those value creation events, as specified in Section 4.4.4(ii) F(c) below. Upon generation of the statistical analyses for the primary endpoint(s) for any such trial, the Developing Party shall provide a report of such statistical analyses and
all other analyses available at the same time, as defined in the statistical analysis plan for such trial. In addition, the Developing Party shall also provide to the other Party a final clinical study report signed by the relevant responsible
person in the respective Party (the “Final Report”). 
 In such event of Opt-in, the Opt-in Party shall notify its exercise of its right to
Opt-in in writing to the Developing Party (the “Opt-In Notification”). The Opt-in Notification shall contain confirmation that the Opt-in Party has paid the relevant Opt-in Payment (as defined in Section 4.4.4 (ii) F
(c) below) to the Developing Party. In case of failure to Opt-in pursuant to this paragraph, the provisions of Section 4.4.4 (ii) F (e) shall apply. 
  

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 As used above with respect to a clinical trial, “receipt of data following completion” shall mean the receipt
by the Opt-in Party of the Final Report, provided however that the Opt-in Party may, at its discretion elect to Opt-in on the basis of the final statistical analysis, tables figures and listing delivered by the Developing Party as discussed above.

 (b) Pre Opt-in Development Costs and Post Opt-in Development Costs. As used herein, “Pre Opt-in Development
Costs” means Development Costs incurred by the Developing Party with respect to the Subsequent Development Plan up until the applicable Opt-in Notice Date, including costs of acquiring ownership or Control of Patent Rights or Know-How in
relation to the Product Improvements, the Combination Products or the Other Products, as the case may be, as are the subject of such Subsequent Development Plan and related to the Opt-in Information supplied by the Developing Party to the Opt-in
Party. “Post Opt-in Development Costs” means Development Costs incurred thereafter for the continuation of the Subsequent Development Plan. 
 (c) Opt-in Payment. The Opt-in Payment will vary with the specific Opt-in Period during which the Opt-in Notification is received
by the Developing Party and shall be paid by the Opt-in Party to the Developing Party concomitantly with the Opt-in Notification. The Opt-in Payment will be equal to the relevant percentage as set forth below of (i) the Licensor Allocation of
the Pre Opt-in Development Costs if Licensor is the Opt-in Party and (ii) the Licensee Allocation of the Pre Opt-in Development Costs if Licensee is the Opt-in Party: 
  

	 	•	 	 The relevant percentage shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 1 or Opt-in Period 2; 

  

	 	•	 	 The relevant percentage shall be [*]% if the Opt-in Party exercises its Opt-in-during Opt-in Period 3, 

  

	 	•	 	 The Opt-in Payment shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 4 

  

	 	•	 	 The Opt-in Payment shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 5 

  

	 	•	 	 The Opt-in Payment shall be [*]% if the Opt-in Party exercises its Opt-in during Opt-in Period 6. 

 (d) Exercise of Opt-in. 
 A. Provision of Opt-in Information. 
 (a) Timing. The Developing Party
shall provide, on a continuing basis, Opt-in Information (as defined below) to the other Party as provided herein. Such Party shall provide such Opt-in Information on any on-going preclinical activities promptly following accrual thereof and such
Opt-in Information upon completion (as defined below) of the 

  

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first Phase I Clinical Trial, Phase II Clinical Trial and Phase III Clinical Trial with respect to any Subsequent Development Plan but in no event more than
thirty (30) days after completion of the data analysis for such clinical trial. For the purposes of this Section, the term “end” or “completion” shall mean that results from the clinical trial at issue have been fully
collected, analyzed and formatted consistently with the guidance provided by the appropriate Regulatory Authority. The date of receipt by the other Party of all information accrued from the Subsequent Development Plan which is reasonably available
to the Developing Party and which would be reasonably material and necessary for the other Party to make a decision regarding exercising such Opt-in during the Opt-in Period at issue for such indication shall be the “Opt-in Notice
Date”. 
 (b) Content. “Opt-in Information” shall include but is not limited to: a copy of
the final clinical study report and data, results (including but not limited to results from the clinical trial at issue), reports and protocols and interpretations of clinical trials, a detailed accounting of all Pre Opt-in Development Costs; all
analyses and information relating to predicted manufacturing costs and any other pertinent manufacturing information (if available to the relevant Party); anticipated regulatory costs and fees; Regulatory Authority documentation and correspondence;
and information relating to expected third party royalty obligations. The Party receiving such Opt-in Information shall only use such Opt-in Information to decide whether to exercise an Opt-in. If such Party does not exercise an Opt-in, such Party
shall not use such Opt-in Information for any other purpose, shall return the same to the Developing Party and shall maintain its confidentiality, provided that such information qualifies as Know-how of the Developing Party. 
 B. Opt-in Procedure and Providing Additional Information. 
 (a) Opt-in Procedure. Following the Opt-in Notice Date, the non-Developing Party shall have the right, up until the end of
the relevant Opt-in Period (the “Opt-in Notice Period”), to cause the JSC to meet to address any issues arising out of the Opt-in Information, including calculation of or accounting for any Pre Opt-in Development Costs. Then, during
such Opt-in Notice Period, the non-Developing Party shall have the right to elect to participate together with the other Party in the Subsequent Development Plan by providing the Developing Party with written notice of its decision to so participate
and by paying the Opt-in Payment to the Developing Party (such notice and such reimbursement payment are herein collectively referred to as an “Opt-in” by such Party) by a date which is prior to the end of the Opt-in Period at
issue. If the Party electing to Opt-in fails to pay the Opt-in Payment to the Developing Party, and continues to fail to make such payment within ten (10) business days of written notice from the other Party (except that withholding disputed
amounts shall not be deemed a failure to make such reimbursement payment), then such Party shall be deemed to have declined such Opt-in for such Subsequent Development Plan during the Opt-in Period at issue, but shall continue to have the right to
Opt-in unless and until expiration of Opt-in Period 6. 
 (b) Obligation to Provide Additional Information.
During the Opt-in Notice Period, (1) the Developing Party shall have an affirmative obligation to provide the other Party with any additional available information which would be reasonably 

  

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material for such other Party to make an Opt-in decision and, (2) each Party may request additional information which would be reasonably material for
it to make an Opt-in decision and the Developing Party shall supply such information to the extent it is reasonably available and necessary for the Opt-in decision. 
 (c) Extension. In the event a Developing Party supplies additional information pursuant to the preceding sentence and there
are fewer than thirty (30) days remaining in the relevant Opt-in Period, such Opt-in Period shall be extended to such date that is thirty (30) days after the provision of such additional information. A Party may, at its sole discretion,
notify the Developing Party in writing before the expiration of its rights set forth herein, that it waives such rights and such Opt-in rights shall thereby terminate. The Opt-in Period may be extended by this Section only once with respect to each
Subsequent Development Plan. 
 C. Pre Opt-in Development Costs and Post Opt-in Development Costs. 
 (a) Timing of Reimbursement of Pre Opt-in Development Costs. At the same time a Party provides the Opt-in Notification,
such Party shall pay to the other Party the Pre-Opt in Development Costs. 
 (b) Disputes. A Party may audit
Pre Opt-in Development Costs submitted by the other Party pursuant to this Agreement or may appoint internationally-recognized professional accountants to do so. In the event that a Party reasonably disputes specific items contained in the other
Party’s calculation of Development Costs due to the other Party’s incorrect calculation of Pre Opt-in Development Costs, such Party shall pay the amounts not in dispute or in question and such disputed or questioned amounts shall be
identified by the JFC and submitted to the JSC who shall promptly meet or confer to resolve such disputes or questions. Within seven (7) business days following resolution of such matters, one Party shall pay or reimburse to the other Party the
appropriate remaining balance. In the event the JSC is not able to resolve a dispute concerning the reimbursement of Development Costs under this Section, the Parties shall follow the dispute resolution procedure in Article 15. 
 D. Joint Development After Opt-in. After any Opt-in, the Parties shall jointly conduct all future Development activities
that are planned in the relevant Subsequent Development Plan for which the non-Developing Party has exercised its Opt-in. For clarity, all such activities by either Party commencing from the Opt-in Notice Date shall be subject to approval by the JSC
pursuant to Section 3.1.1 and thereafter the Parties will participate in co-development and such Post Opt-in Development Costs (as of Opt-in Notice Date) shall be funded by the Parties in the following proportion: Licensor shall be responsible
for the Licensor Allocation of such Post Opt-in Development Costs, and Licensee shall be responsible for the Licensee Allocation of such Post Opt-in Development Costs, only to the extent the foregoing Post Opt-in Development Costs are set forth in
the Subsequent Development Plan approved by the JSC. Corresponding payments will be made as provided under Section 4.4.3. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 31 

 (e) Consequences of Non-Exercise of Opt-in by Licensee. In the event Licensee has
not Opted in with respect to a Subsequent Development Plan of Licensed Product during Opt-in Period 6 or prior thereto, and therefore has not paid the relevant Opt-in Payment as set forth in Section 4.4.4 (ii) F (c) of this Agreement
to Licensor as the Developing Party, Licensor may serve a sixty (60) days termination notice to Licensee; in the event that Licensee does not make such payment within such sixty-day termination notice period, Licensor shall have the right to
terminate this Agreement at any time within two (2) months of expiration of such sixty (60) day termination notice period and such termination shall take effect seven (7) months after the expiration of the sixty (60) day period
and the provisions of Section 9.3 (except for 9.3.1(b)) shall apply, provided however that if Licensee can reasonably demonstrate to Licensor that (i) the market potential of such Product Improvement or Combination Product which is
the subject of such Subsequent Development Plan does not justify the investment required from Licensee to bring such Product Improvement or Combination Product to the market in the Territory or (ii) such Product Improvement or Combination
Product can be clearly differentiated from the Licensed Product then being Developed or sold in the Territory, then this Agreement may not be terminated by Licensor, but Licensor shall be entitled to develop, market, promote sell and have sold such
Product Improvement or Combination Product anywhere in the Territory, notwithstanding the licenses granted in Section 2.1, and with no duty of accounting or other payment to the Licensee in such event. 
  

	5.	COMMERCIALIZATION 

 5.1 Responsibility for
Regulatory Affairs. Licensor shall be responsible for all regulatory affairs related to obtaining the initial EU Marketing Authorization of the Licensed Product, and Licensee shall be responsible for regulatory affairs in all other countries in
the Territory. For each country in the Territory, the obligations of the Party responsible for regulatory affairs in such country shall include the preparation and filing of applications for Marketing Authorizations in such country. Licensor shall
use Diligent Efforts to file and obtain the initial EU Market Authorization of the Licensed Product in its own name or that of its Affiliates, but any failure to so obtain Marketing Authorization in any given country of the Territory shall not
constitute a material breach of this Agreement. Upon obtaining of Marketing Authorizations and subject to applicable laws, Licensor shall promptly appoint Licensee as Licensor’s regulatory agent to perform, on behalf of but at no cost to
Licensor, those activities that are the responsibility of the Licensor as Marketing Authorization holder. Following the date of the grant of the Marketing Authorization, Licensee shall (a) consult with Licensor regarding the regulatory strategy
in the EU and consider in good faith Licensor comments regarding the same, (b) promptly provide Licensor with copies of all correspondence received by Licensee from Regulatory Authorities within the EU, copies of any draft response and
(c) consider in good faith Licensor’s comments thereon prior to filing any such response. The Parties agree to initiate, promptly following the Effective Date through the JSC or a sub-group established by the JSC, discussion and analysis
of the handling of regulatory matters with respect to the Licensed Product in the Territory and specific determination of the role of Licensee in acting as Licensor’s regulatory agent in the Territory, as well as discussion with regard to
regulatory strategy and regulatory matters within the Territory outside the European Union. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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 Licensee will be solely responsible, at its own cost, for conducting at its cost all formalities, steps
and negotiation with Regulatory Authorities or any governmental entity in establishing the resale pricing and acquiring reimbursement for the Licensed Product in the Territory. 
 The Parties shall cooperate with each other in supplying data or documents that may be requested or required by the other Party with respect to
government regulation, registrations, or approvals in a timely manner and in manner that does not jeopardize the gaining or maintaining of a Marketing Authorization. In addition, as set forth in Section 3.2(c) of the GNE US License and the GNE
Ex-US License, in the event that GNE elects under the terms of Section 3.2(c) of the GNE US License and the GNE Ex-US License to take over Development of IGF-1 for the Initial Indication 2 (as those terms are defined in the GNE US License),
Licensor shall so inform Licensee, and where requested by GNE, Licensor and Licensee shall negotiate in good faith the terms under which Licensee shall allow Licensor to allow GNE to cross-reference any INDs, BLAs, clinical data or other submissions
filed by Licensee or on its behalf with any FRA (as that term is defined in Section 1.25 of the GNE Ex-US License) and provide Licensor (for provision to GNE) with copies of any FRA documentation, for the purposes of Development and/or
commercialization of Licensed Product for the Initial Indication 2 under the GNE US License and the GNE Ex-US License. 
 5.2
Pharmacovigilance Safety Data Exchange Agreement. A pharmacovigilance safety data exchange agreement on standard and customary terms and conditions shall be negotiated and executed between Licensor and Licensee within ninety (90) days as
from the Effective Date, but in any event prior to Licensee initiation of any human clinical trials or marketing of the Licensed Product. Such pharmacovigilance agreement shall cross reference the approved risk management plan contained within
Licensor’s submission to the EMEA. 
 5.3 Commercialization Efforts. Licensee shall be solely responsible and shall use Diligent
Efforts for the promotion and commercialization of the Licensed Product in the Territory in accordance with the Commercialization Plan. However, Licensor acknowledges that the Licensed Product’s potential may vary from country to country or
change from time to time based upon the existence of competing products, as well as scientific, business, marketing and return on investment considerations. Consequently, Licensee (and its Affiliates) may for such reasons elect not to seek to market
the Licensed Product in every country of the Territory. Such election by Licensee not to perform any of these activities in any specific country of the Territory for the reasons stated above shall not be a material breach of this Agreement.

 Without limiting the generality of the foregoing, the Parties shall agree within the JSC upon a Commercialization Plan for
each Licensed Product for each country of the Territory where Licensee intends to commercialize the Licensed Product, within one hundred and twenty (120) days after the Effective Date for the Initial Product or within one hundred and twenty
(120) days after the filing of the first Marketing Authorization application for any other Licensed Product as to which Licensee has a license under Article 2, as the case may be. The first Commercialization Plan shall cover 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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the remainder of the Calendar Year in which it is prepared and the two subsequent Calendar Years. The Commercialization Plan shall be updated annually in
October or earlier, if in the interim a new filing of Marketing Authorization application in any country of the Territory has occurred with respect to such Licensed Product, or, as regards Third Party Countries, upon notification by Licensor of the
availability of the rights in a Third Party Country. Sales Forecasts included in the Commercialization Plan shall be reviewed and agreed by the Parties within the JSC at the time of annual update of the Commercialization Plan, provided, however,
that during such annual review the Sales Forecasts of the Calendar Year during which the review is conducted or the subsequent Calendar Year shall not be modified, unless agreed unanimously by the JSC, in light of, for example, the occurrence of one
or more events in the Territory of the following nature: (i) changes in regulatory approval or compliance requirements having an adverse impact upon the sales or projected sales of the Licensed Product, (ii) the entrance of a generic
competitor prior to the time anticipated in such market as a result of the loss by either Party of any patent infringement action with respect to such generic competitors and prior to expiration of the Licensed Patent Rights; or (iii) actual or
anticipated disruption of supply of Licensed Products by Licensor, or (iv) any Force Majeure event . 
 5.4 Commercial Diligence.

 5.4.1 Minimum Sales. Licensee shall achieve annual minimum sales of the Licensed Products (aggregated across all
Licensed Products) which shall be equal to [*] percent of the applicable Sales Forecasts for such Calendar Year on a country-by-country basis (the “Country Minimum Sales”). The total of all annual Country Minimum Sales is
defined as the “Aggregate Minimum Sales Requirements”. After the end of the first full Calendar Year following the Calendar Year in which the First Commercial Sale of the Licensed Product in the Territory occurs, in the event
Licensee fails in any subsequent Calendar Year (e.g., if First Commercial Sale occurs in 2007, such failure would have to occur in 2009 or later) to achieve the Aggregate Minimum Sales Requirements (except for Force Majeure reasons or disruption of
supply of Licensed Products by Licensor), Licensee will owe to Licensor the “Net Sales Compensation” as defined below within thirty (30) days the end of the relevant Calendar Year. In the event that, Licensee (i) does not
pay the Net Sales Compensation due with respect to any Calendar Year within such thirty (30) days or (ii) has paid the Net Sales Compensation for two (2) consecutive Calendar Years and is liable for payment of the Net Sales
Compensation for a third consecutive Calendar Year, Licensor shall have the right to terminate this Agreement with respect to such country with respect to which Licensee has failed to pay the Net Sales Compensation or is liable for payment of the
Net Sales Compensation for a third consecutive Calendar Year, as the case may be. The “Net Sales Compensation” for any Calendar Year shall be equal to the Aggregate Minimum Sales Requirements applicable for such Calendar Year less
the aggregate Net Sales realized during such Calendar Year multiplied by the applicable royalty rate. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 34 

 5.4.2 Promotional Diligence. Should Licensee fail to undertake and fund [*]
([*]%) of its Promotional Efforts as specified in the Commercialization Plan during [*] consecutive Calendar Years in any country of the Territory and should Licensee also have failed to achieve the Country Minimum Sales for such
country as set forth in Section 5.4.1 for each of such two (2) consecutive Calendar Years, Licensor shall have the right to terminate this Agreement with respect to such country. The Licensee shall provide access to its internal budget and
actual spending data as required in case there is an under spend as defined in this Section 5.4.2 and provide available external data sources (i.e to measure sales force activity) to the same effect. 
 5.4 Minimum Inventory. Licensee shall at all times maintain a sufficient inventory of the Licensed Products available for immediate delivery to
customers in the Territory, which shall correspond at least to the Territory-wide volume of Licensee’s sales for the next three (3) forecasted months (which inventory amount shall be reviewed by the Parties after the first Calendar Year
following the Calendar Year in which the First Commercial Sale occurred and modified if necessary by the Parties’ mutual written agreement), and shall use all means and make all arrangements necessary to fulfill in due time all orders it
receives from customers. 
 5.5 Sales Reporting and Records. 
 5.5.1 Monthly Sales Report. 
 Licensee undertakes to forward to Licensor before the 5th working day of each calendar month a Licensed Product sales record expressed in value (in Euros) and volume by Licensed
Products. Licensee shall use for this purpose the Monthly Sales Report template attached in Schedule 7 to this Agreement or any other template that may be agreed by the Parties from time to time. These reports shall be signed and sent by
email and by courier to Licensor. 
 5.5.2 Sales Reports. 
 Before February 27th of each Calendar Year, Licensee undertakes to forward to Licensor a report on the preceding Calendar Year showing : 
  

	 	•	 	 the Licensed Product sales achieved by Licensed Product in unit and in local currency; 

  

	 	•	 	 the Licensed Product sales development by customer and by Licensed Product showing sales trends; 

  

	 	•	 	 Licensed Product returns and claims from the market ; 

  

	 	•	 	 Impact of competing products including those constituting Market Competition (including the IMS data on the therapeutic classes to which the Licensed Products
pertain), pricing, acceptance of the Licensed Products by the medical profession, hospitals, pharmacies, and chemistries, in the Territory. 

 These reports shall be signed and sent by email and by courier to Licensor. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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 5.5.3 Sales record. Licensee shall keep complete, accurate and detailed
records of all sales of Licensed Products during a period of three (3) years as from the date of such sales being made. Licensor or its agent may consult such records at Licensee’s premises at any time during business hours with fifteen
(15) days notice, in order to make the customary verifications of the amount of sales performed by Licensee. 
 5.6 Promotional
Materials. Licensee shall forward a copy of all promotional materials, including but not limited to brochures, video tapes and medical information that Licensee is using for the promotion of the Licensed Products in the Territory.

 Licensee shall ensure that all promotional materials comply with local laws and regulations of the relevant country of the
Territory and do not infringe third party’s rights. Therefore, notwithstanding the communication of Licensor on such promotional materials, only Licensee shall be held liable in case of breach of local laws and regulation or infringement of
third parties’ rights. 
 All costs linked to the promotion of the Licensed Products shall be borne by Licensee
exclusively. 
 Upon early termination by one Party of this Agreement, subject to Licensee’s rights to continue sales for
up to six (6) months under Section 9.3.1(b) Licensee shall, upon request and at Licensor’s discretion, either destroy or immediately return to Licensor, at no cost, all promotional materials conceived and printed by Licensee, for
Licensor’s unrestricted use. 
 5.7 Restrictions. Licensee shall not actively sell, advertise nor seek customers for the
Licensed Products outside the Territory. During the term of this Agreement, Licensee will not manufacture, promote, distribute nor sell, either directly or indirectly, any pharmaceutical products in the Field having at least one same Indication as
the Licensed Product and/or containing IGF-1 analogs or derivatives with more than 80% sequence homology. To the extent the foregoing restrictions would not be enforceable in the Territory then the comparable restrictions as set forth in the
Somatuline Agreement with respect to the activities of Licensor, shall not apply against Licensor in that Agreement. 
 5.8 Product
Recalls. Product recalls procedure shall be set out in the Technical Agreement. 
  

	6.	MANUFACTURING AND SUPPLY 

 6.1 General.

 6.1.1 Initial Product. Licensor shall manufacture and supply to Licensee the Initial Product, as and to
the extent set forth in this Article 6. With respect to the Initial Product, the Parties will collaborate to agree and implement within one hundred and twenty (120) days following the Execution Date, a separate agreement relating to technical
requirements including without limitation supply organization, quality assurance, specifications, complaints and batch recall, control of material, analytical testing and validation of the Initial Product (the “Technical 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 36 

 
Agreement”). Licensee understands and acknowledges that as of the Execution Date, Licensor does not manufacture itself the Initial Product, but
rather relies upon certain third party contract manufacturers to supply bulk active and finished product. In that regard, Licensor has entered into that certain Manufacturing Services Agreement, as of December 20, 2002, with Cambrex Bio Science
Baltimore, Inc. as amended (the “Cambrex Agreement”) for the manufacture and supply of IGF-1 bulk drug substance. In addition, Licensor has entered into that certain Drug Product Development and Clinical Supply Agreement with Baxter
Pharmaceutical Solutions LLC for finished dosage form of the Initial Product (the “Baxter Existing Agreement”) for development or clinical purposes, and is, as of the Execution Date in negotiations with alternative commercial
manufacturers with respect to a commercial supply arrangement for finished dosage form of the Initial Product (once executed, or to the extent another commercial supply agreement is entered into with a party other than Baxter, the “Drug
Product Commercial Agreement”). To the extent the terms in this Article 6 are inconsistent with those in the Technical Agreement, the terms in the Technical Agreement shall control. 
 6.1.2 Product Improvements and Combination Products. In addition, as and to the extent agreed upon by the Parties with
respect to any Joint Subsequent Development Plan or Subsequent Development Plan for which Licensee Opts-in, for a Product Improvement or Combination Product, the manufacture and supply of such Product Improvement or Combination Product to Licensee
shall be as agreed upon by the Parties in writing (including as needed the execution of a Technical Agreement for each such Product Improvement or Combination Product), depending upon the existing third party manufacturing agreements Licensor then
has in place at such time with respect to such Product Improvement or Combination Product. 
 6.2 Purchase Requirements for Commercial Supply. For the first five (5) years after the Execution Date, Licensee shall purchase exclusively from Licensor all of its requirements for Licensed Products to conduct any
Development activities as set forth in this Agreement and to meet demand in the Territory. After the 5th anniversary
of the Execution Date, Licensee shall purchase from Licensor (i) 100% of its Licensed Products requirements for any country of the Territory which is not a member state of the European Economic Area and (ii) 80% of its Licensed Products
requirements for any country of the Territory which is a member state of the European Economic Area. 
 6.3 Clinical Supply
Requirements. To the extent needed by Licensee, Licensor shall supply clinical requirements of the Initial Product in either bulk active form or finished dosage form, as further set forth in the Initial Development Plan or any Subsequent
Development Plan, as relevant. Such Initial Product shall be supplied at a price equal to Licensor’s internal and out of pocket costs, on a schedule to be determined within the Development Plan, including all costs of carriage and insurance,
and such costs shall be paid within thirty (30) days of invoice for same. 
 6.4 Delivery. Delivery of the Licensed
Products shall be CIP (Carriage and Insurance Paid, Incoterms 2000), Rue Ethe Virton, 28000 Dreux (the “Delivery Point”). 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 37 

 6.5 Commercial Supply Price. For
launch and the first Calendar Quarter of the year in which launched, Licensee shall purchase the Initial Products and Samples at the per unit prices listed in Schedule 8 (the “Supply Price”), as of the Execution Date. The
Parties acknowledge that the ongoing Supply Price of the Licensed Products shall be equal to twenty percent (20%) of average selling price per unit sold of the Licensed Product in the Territory, Accordingly, following such first Calendar
Quarter, Licensee, through the JFC shall calculate the average selling price per unit sold of the Licensed Product in the Territory over the prior Calendar Quarter, and such amount shall be used as the new average selling price per unit sold for all
units of Licensed Product purchased during the remainder of the relevant Calendar Year. Each year prior to 30th January, the JFC shall calculate the average selling price per unit sold of the Licensed Product in the Territory during each preceding Calendar Year and such amount shall be used as the new average selling price per unit sold
for all units of Licensed Product to be purchased for the next Calendar Year. As the Supply Price is or may be adjusted annually for each newly calculated average selling price per unit sold of the Licensed Product in the Territory, Schedule 8 shall
be updated to so reflect such adjusted price. Within thirty (30) days after the end of a Calendar Year, the Parties, through the JFC, will calculate the actual average selling price per unit sold of the Licensed Product in the Territory and
review the Supply Price of the Licensed Products paid to Licensor in light of such actual average selling price per unit sold and Licensee shall adjust the supply price, retroactively, to an amount equal to twenty (20) percent of the actual
average selling price per unit sold in the preceding Calendar Year. Such adjustment shall take the form of the issuance (within ten (10) days following such adjustment) by the Licensor of a credit for the amount overpaid or an invoice for the
amount remaining due, as the case may be; the invoice (if applicable) shall be settled within thirty (30) days following the date of invoice. In addition, such actual average selling price per unit sold will also be used as the new Supply Price
for the current Calendar Year. As used herein, “average selling price per unit sold” shall mean aggregate Net Sales of Licensed Products for the Territory during the applicable Calendar Year, divided by actual number of units of Licensed
Product comprising such Net Sales (including free goods but excluding samples). 
 Licensor shall invoice Licensee upon shipping of the
Licensed Products for any Binding Orders. Payment of such invoice shall be made by Licensee to Licensor within thirty (30) calendar days of the date of the invoice and shall be made by wire transfer, using the information below or as Licensor
may from time to time direct in writing in its invoicing: 
  

			
	Wells Fargo Bank	  	
		
	 Beneficiary Name:
	  	 Tercica, Inc.

		
	 Account number:
	  	 [*]

		
	 Bank ID:
	  	 [*] 

		
	 Swift code:
	  	 [*] 

		
	 Contact:
	  	 Juan Sanchez

		  	 Ph (415) 396-1011

		  	 sanchjj@Wellsfargo.com

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 38 

 Contact Information 
  

			
	Director of Accounting:	  	Ben Yokoyama
		  	(650) 624-4946
		  	ben.Yokoyama@tercica.com
		
	Accounting Manager:	  	Anna Peng
		  	(650) 624-4978
		  	Anna.Peng@tercica.com

 If Licensee fails to pay any amounts owing to Licensor here above when due, interest shall accrue
on overdue amounts at an annual rate equal to the average one-month European Interbank Offered Rate (EURIBOR) plus two (2) percent as reported by the European Bank Federation (or a successor or similar organization) from time to time,
calculated on the number of days such a payment is overdue. 
 6.6 Minimum Commercial Orders. The minimum quantities per order
for the Licensed Products are specified in Schedule 9. 
 6.7 Order Forecast – Firm Order. 
 6.7.1 At least ninety (90) days before the expected First Commercial Sale of the Licensed Products in any country of the
Territory, the Parties shall agree upon a monthly rolling order forecast for the first eighteen (18) months for each SKU of the Initial Product in such country(ies) (the “18-Month Rolling Order Forecast”) which shall be under
the form as attached in Schedule 10. Thereafter, Licensee shall forward to Licensor before the 20th day of every calendar month a revised and adjusted 18-Month Rolling Order Forecast for the next eighteen (18) months for each of the
countries where the Licensed Product is commercialized or is expected to be commercialized within less than ninety (90) days. 
 6.7.2 The forecast for the first three (3) months of the 18-Month
Rolling Order Forecast shall constitute a firm purchase order unless Licensor informs Licensee of the non availability of the ordered quantities of Products (the “Binding Order”). The Binding Order relating to the 3rd month of the 18-Month Rolling Order Forecast shall not exceed by more than twenty (20) percent the forecasts relating to
the 4th month of the preceding 18-Month Rolling Order Forecast. In the event the Binding Order relating to the
3rd month of the 18-Month Rolling Order Forecast exceeds twenty (20) percent, Licensor shall use its Diligent
Efforts to supply any exceeding quantities. 
 6.7.3 The
forecast for the fourth (4th) through sixth (6th) months of the 18-Month Rolling Order Forecast shall constitute a commitment by Licensee to purchase at least fifty (50) percent of such forecasted
amount for such months unless Licensor informs Licensee of the non availability of the ordered quantities of Products (the “Semi-Binding Order”). The Semi-Binding 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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Order relating to the 4th, 5th, and 6th months of the 18-Month Rolling Order Forecast shall not vary (upward or downward) by more than twenty (20) percent the forecasts relating to the 5th, 6th, and 7th months, respectively, of the preceding 18-Month Rolling Order Forecast. 
 6.7.4 Licensee agrees that a Binding Order and/or a Semi-Binding Forecast cannot be modified, and that no changes or cancellations
shall be allowed. 
 6.7.5 In any instance, one (1) month before the preferred shipping date, Licensee shall send
a purchase order form using the form that will be forwarded by Licensor from time to time, with the quantities requested to be delivered to each country and/or region and the requested dates of delivery, it being understood that requested delivery
shall occur no more frequently than once every six (6) months. 
 6.7.6 Licensor will use its commercially
reasonable efforts to cause its third party manufacturer to accommodate the preferred delivery date mentioned by Licensee on the purchase order form which shall, if possible, not be less than ten (10) days after the date of receipt of the order
form by Licensor. Licensee shall take timely delivery of all quantities of Licensed Products supplied by Licensor. 
 6.7.7
All forecasts and orders shall be sent by email and confirmed by fax or mail to the address set forth in the Technical Agreement. 
 6.7.8 The Parties agree that they will discuss any improvements to be made to the mechanism of providing forecasts and Binding Orders in a spirit of permanent improvement process. 
 6.8 Storage. Licensee shall provide warehouse facilities adequate to store the Licensed Products in accordance with the relevant and
approved storage requirement as specified within the Technical Agreement and with standard requirements related to cGMP pharmaceutical product storage and handling. 
 6.9 Packaging. Licensor shall supply Licensee with finished dosage form of the Initial Products fully packaged and labeled ready for sale in each country of the Territory, unless otherwise agreed by the
Parties in writing, unless specified otherwise pursuant to the Commercialization Plan. Licensor shall be entitled to modify such packaging and leaflet at any time subject to Licensee’s prior agreement. Any modifications to the initial packaging
required by Licensee or by Regulatory Authorities shall be implemented only upon Licensor’s prior written approval and provided that Licensee shall reimburse all costs and expenses in relation thereto. 
 6.10 Minimum Shelf Life. Licensee understands and acknowledges that the expected shelf life upon obtaining Marketing Authorization in the
European Union is eighteen (18) months. Licensor shall use Diligent Efforts to ensure that the Initial Product shall be delivered to Licensee with a remaining shelf life of at least twelve (12) months; provided, however, that Licensee
agrees and acknowledges that the shelf life of the Initial Product supplied by Licensor for purposes of commercial launch may be less than twelve (12) months but will be no less than nine (9) months, unless otherwise agreed by the JSC.

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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 6.11 Regulatory Compliance. Licensee shall observe any and all applicable laws and
regulations of the Territory, with respect to import, warehousing, promotion, distribution and sale of pharmaceutical specialties, and undertakes to make and fulfill any and all formalities in connection with all such activities which may be
required under applicable laws and regulations of the Territory, including but not limited to, clearance of customs and/or exchange control declarations and payment of any and all sales taxes which are or may become due in the Territory. 

6.12 Legal Requirements in Territory. Licensee shall provide Licensor (or its designated third party manufacturer) with appropriate and
updated information related to the legal and regulatory requirements in the Territory with regards to the Initial Products (including but not limited to quality, therapeutic use, packaging, labeling and storage). Such information shall be forwarded
to Licensor in writing by Licensee forthwith upon its becoming aware of the same. Licensor shall be responsible to proceed promptly to any Licensed Products packaging or labeling modification required by the Regulatory Authorities of the Territory.
Licensee shall provide Licensor (or its designated third party manufacturer) with the relevant technical assistance if so requested by Licensor, to that effect. 
 6.13 Licensee shall solely be responsible for and support all costs and expenses arising out of the occurrence of any damage, destruction or loss of any quantities of Licensed Products from the time Licensor
has delivered the Licensed Products to the Delivery Point. Licensee shall contract an insurance to cover such risks (including without limitation the risks incurred by the Licensed Products during its transportation) and shall maintain such
insurance in force during the entire term of this Agreement. 
 6.14 Licensee shall obtain at its own costs any export/import license
or other official authorization and carry out, where applicable, all customs formalities for the export/import of the Licensed Products. 
 6.15 Specifications and compliance with cGMP shall be set forth in the Technical Agreement. 
 6.15.1
Licensor warrants that all quantities of Licensed Products delivered to Licensee pursuant to this Agreement meet the Specifications, that the Licensed Products are manufactured in full compliance with current Good Manufacturing Practices for all
countries of the Territory where the Licensed Products are sold and that all necessary tests and analysis in the course of the manufacturing processes and thereafter have been duly carried out and shall, with each delivery pursuant hereto, provide
Licensee with copies of the appropriate quality assurance certificates issued in English by the manufacturing plants and the Qualified Person. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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 6.15.2 Licensor shall have the right to modify the Specifications subject to prior
notification to Licensee and subject to approval by the Regulatory Authority. In the event Licensee desires other or special Specifications for the Licensed Product or guidelines to be considered, Licensee shall notify Licensor accordingly. Licensor
agree to consider in good faith such special Specifications or guidelines, provided, however, that any costs relating to the implementation of such special Specifications or guidelines will be borne by Licensee. 
 6.16 Checking – non conformity. 
 6.16.1 Upon delivery of the Licensed Products to the Delivery Point, Licensee shall inspect the Licensed Products and shall notify Licensor within a period set forth in the Technical Agreement, by telefax
confirmed by courier, of any damage visible from inspection or of any shortages or non-conformity of the delivered Licensed Products with supporting detailed evidence and documents and their translation in English shall be included. Upon request of
Licensor, Licensee shall make available to Licensor samples of the Licensed Products which are declared as defective. In case of non conformity to the Specifications of any quantity of the Licensed Products delivered pursuant hereto, Licensor shall
take back, at its expense, the quantities concerned and shall replace them promptly after Licensor received the relevant notice. 
 6.16.2 Any dispute between the Parties regarding shortage or damages of any quantity of the Licensed Products delivered hereunder shall be referred to an expert jointly appointed by the Parties within thirty (30) days from the
receipt by Licensor of the notice of claim of Licensee as set forth in the Technical Agreement. 
 6.16.3 Licensor
shall not replace defective Licensed Products returned to Licensee by the customers, patients, or authorities, unless the relevant Licensed Product defect is due to (i) Licensed Product manufacturing defaults in so far as the Licensed Product
does not meet the Specifications, (ii) the Licensed Product manufacturing process, or (iii) Licensed Product defaults that occurred during the delivery of the Licensed Products from the manufacturer’s import warehouse to the Delivery
Point. 
 Without prejudice to the Party bearing defective Licensed Products replacement costs in accordance with the provisions of this
Section, if Licensor so decides, Licensee shall destroy immediately upon written notice, any quantity of defective Licensed Products and provide to Licensor the corresponding certificate of destruction hereof. 
 6.17 Failure to Supply. In the event that at any time during the term of the Agreement, Licensor delivers non-conforming lots of the Initial
Product, as further defined in the Technical Agreement, three (3) times in any twelve (12) month period (a “Default”), then: 
 (a) Licensee shall give written notice to Licensor specifying the occurrence of such Default (and, to the extent Licensor anticipates a possible Default, Licensor shall inform Licensee of such possibility as it
becomes known to Licensor); 
 (b) The JSC shall investigate the cause of the Default. Thereafter, the Parties shall discuss in good faith
through the JSC the appropriate mechanism to cure the Default based on the JSC’s investigation. Such mechanisms for cure may include for example, but without limitation, the establishment by Licensor of a secondary source for the manufacture
and supply of Initial 

  

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Product to Licensee. In addition, where there is limited supply of conforming Licensed Product, the JSC shall determine the allocation of the available
Licensed Product between the Licensor Territory and the Territory, taking into consideration the sales volume of such territories in the previous 6-month period; 
 (c) Following the Parties’ acceptance of an appropriate mechanism to cure the Default, Licensor shall use Diligent Efforts to implement such agreed upon mechanism. In the event that Licensor fails to begin the
implementation of the agreed upon mechanism within 4 months of the Parties agreeing to such mechanism or fails to successfully complete the implementation of the agreed mechanism within 4 months of the Parties agreeing to such mechanism, then
Licensee shall have the right to execute the Manufacturing Option set forth in Section 6.18 below. 
 6.18 Manufacturing Option.

 6.18.1 Licensor grants to Licensee an exclusive option under Licensor IP Rights to make and have made bulk
active and/or finished dosage form of the Initial Product (the “Manufacturing Option”), as the case may be. Licensee shall have the right to exercise the Manufacturing Option, without prejudice to other remedies (except in case of
Force Majeure events), only in the case of failure of Licensor to implement the mechanisms for curing the Default in accordance with Section 6.17(c). 
 6.18.2 Upon Licensee’s exercise of the Manufacturing Option, Licensor shall: 
 (i) without the need for any further agreement, grant a non-exclusive license to Licensee under all Licensor IP Rights to make and have made the Licensed Product, and promptly transfer at Licensee’s costs all technical information
(subject to any terms and conditions placed thereon under the GNE US Agreement, the GNE Ex-US Agreement, the Drug Product Commercial Agreement or the Cambrex Agreement or such other third party manufacture and supply agreement in effect at such
time) and support necessary for Licensee to make or have made the Licensed Product. It is understood by the Parties that Licensor will use Diligent Efforts in any of its negotiations for any future manufacture and supply agreement with a third party
to allow for such transfer of technical information to Licensee by such third party in the event Licensee exercises its Manufacturing Option; and 
 (ii) Licensor shall continue to supply Licensee with the Licensed Product at then prevailing Supply Price as long as Licensee is not in a position to make or have made the Licensed Product. 
 6.18.3 Upon Licensor beginning manufacturing of the Licensed Product pursuant to this Section, the provisions of Sections 6.1 to
6.17 shall no longer be applicable. 
  

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	7.	PAYMENTS 

 7.1 Milestone Payments. In
consideration of the rights granted by and undertakings of Licensor under this Agreement, Licensee shall make the following non-refundable and non-creditable milestone payments: 
 7.1.1 Licensee shall pay Licensor ten million (10,000,000) Euros no later than within five days following the Effective Date.

 7.1.2 Licensee shall pay Licensor fifteen million (15,000,000) Euros (the “Milestone Payment”)
as indicated in Section 7.1.6 below following the obtaining of either (A) an initial EU Marketing Authorization (i) meeting the Target Label or (ii) which does not strictly meet the Target Label, but nonetheless provides access
to a number of patients (the “EU MA Population”) which is more than [*]% of EU Target Population or (B) where the criteria set forth in A(i) and (ii) are not satisfied with respect to the initial EU Marketing
Authorization, a Subsequent EU Marketing Authorization (defined below) that satisfies the criteria set forth in Section 7.1.4 below. 
 7.1.3 In the event that Licensor has not obtained an EU Marketing Authorization the EU MA Population of which is greater than [*]% of the EU Target Population, the Milestone Payment shall not be paid,
and Licensor shall use its Diligent Efforts to obtain a new EU Marketing Authorization or to extend the initial EU Marketing Authorization with the view to meet the Target Label (the “Subsequent EU Marketing Authorization”) within
three years from the date of obtaining of the initial EU Marketing Authorization (the “Agreed Period”). 
 7.1.4 Licensee shall pay Licensor the full Milestone Payment in the event Licensor obtains a Subsequent EU Marketing Authorization within the Agreed Period the EU MA Population of which is more than [*] percent ([*]%)
of the of EU Target Population. 
 7.1.5 In case of dispute of the Parties on the determination of the EU MA
Population, such dispute shall be first submitted to the JSC. In case of failure by the JSC to find a solution acceptable to both Parties, the matter will be referred to resolution by senior management of both Parties as provided for in
Section 15.1 and ultimately to the final decision of three (3) experts of international reputation in the endocrinology field, one being appointed by Licensee within fifteen (15) days following failure by the senior executive to
resolve this issue, one by Licensor within fifteen (15) days following failure by the senior executive to resolve this issue and one by the two first experts within fifteen (15) days following their appointment. In the event one Party
fails to appoint an expert, the other Party may appoint such expert. Once appointed, the experts shall provide the Parties with their decision within one (1) month from the date of the appointment of the third expert and this decision shall be
final and binding upon the Parties. The decision of the expert shall also allocate the cost for this expertise resolution among the Parties in a proportion the experts deems reasonable. 
 7.1.6 The Milestone Payment shall be paid by Licensee within thirty (30) days following determination by the Parties as to
whether the EU MA Population is less or above [*] percent ([*]%) or [*] percent ([*]%) of the EU Target Population and the parties shall use their Diligent Efforts to agree on such determination no later than within sixty
(60) days following the 

  

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date of the EU Marketing Authorization or the Subsequent EU Marketing Authorization. Each milestone payment shall be made only once with respect to the
achievement of the applicable milestone events and shall be payable the first time such milestone event is achieved. Milestone payments set forth above shall be due only for the first Licensed Product developed and commercialized under this
Agreement to reach the above stages. 
 7.2 Royalty Payments. 
 7.2.1 Royalty Term; Rate. In consideration of the rights granted by and undertakings of Licensor under this Agreement,
Licensee shall pay to Licensor the following royalties which shall accrue on a country-by-country basis in the Territory upon the First Commercial Sale of the Licensed Product until the later of (i) the expiry date of the last Valid Claim in
such country, or (ii) the expiry date of the orphan drug status granted to the Licensed Product by Regulatory Authorities in such country, or (iii) the expiry date of the regulatory protection (if any) preventing any competitor to
cross-refer any data of the Marketing Authorizations files of the Licensed Product in such country; or (iv) the date which is fifteen (15) years from First Commercial Sale (the “Royalty Term”) : 
 (i) For annual Net Sales of the Licensed Products for the Territory below [*] Euros: 15% of Net Sales ; 
 (ii) For annual Net Sales of the Licensed Products for the Territory between [*] Euros and [*] Euros: [*]% of Net
Sales; 
 (iii) For annual Net Sales of the Licensed Products for the Territory above [*] Euros: 25% of Net Sales;

 7.2.2 Royalty Reductions. The royalty rates mentioned in Section 7.2.1 shall be reduced in the following
cases, on a country-by-country basis, and the JFC shall determine the mechanism for applying such country-specific reductions due to the fact that annual Net Sales are determined on a total Territory basis: 
 (a) in the event Market Competition exists in such country and the manufacture, use, or sale of Licensed Product would infringe a Valid
Claim but for the licenses granted under this Agreement, the above royalty rates will be reduced to : 
 (i) For annual Net
Sales of the Licensed Products for the Territory below [*] Euros: [*]% of Net Sales in such country; 
 (ii)
For annual Net Sales of the Licensed Products for the Territory between [*] Euros and [*] Euros: [*]% of Net Sales in such country ; 
 (iii) For annual Net Sales of the Licensed Products for the Territory above [*] Euros: [*]% of Net Sales in such country. 
  

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IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
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 (b) in the event the manufacture, sale or use of the Licensed Product would infringe no
Valid Claim but for the licenses granted under this Agreement and for so long as no Market Competition Exists, the above royalty rates will be reduced to : 
 (i) For annual Net Sales of the Licensed Products for the Territory below [*] Euros: [*]% of Net Sales in such country;

 (ii) For annual Net Sales of the Licensed Products for the Territory between [*] Euros and [*] Euros:
[*]% of Net Sales in such country ; 
 (iii) For annual Net Sales of the Licensed Products for the Territory above
[*] Euros: [*]% of Net Sales in such country. 
 (c) in the event the manufacture, sale or use of the Licensed
Product would infringe no Valid Claim but for the licenses granted under this Agreement and Market Competition exists in such country, the above royalty rates will be reduced to: 
 (i) For annual Net Sales of the Licensed Products for the Territory below [*] Euros: [*]% of Net Sales in such country;

 (ii) For annual Net Sales of the Licensed Products for the Territory between [*] Euros and [*] Euros:
[*]% of Net Sales in such country ; 
 (iii) For annual Net Sales of the Licensed Products for the Territory above
[*] Euros: [*]% of Net Sales in such country. 
 Notwithstanding the foregoing, in the case of scenario
(a) above, in event of Market Competition, and where the Valid Claim still exists but nonetheless Licensee has a good faith belief, based on advise of legal counsel, that enforcing the Valid Claim against third party competitors is not in the
best interests of the Parties, or that Licensor or itself will not prevail in the enforcement of the Licensed Patent Rights or Licensee has other strategic reasons for recommending that the Parties elect not to enforce the Licensed Patent Rights,
then the Parties will confer in good faith to determine an appropriate reduction to the royalty rate set forth in Section 7.2.2(a). 
 (d) the royalty rates set forth in this Section 7.2 may be further off-set in accordance with Section 8.2.3(ii), provided that in no event shall any royalty reduction set forth in this Section 7.2.2
reduce any of the royalty rates mentioned in Section 7.2.1 below the Royalty Floor set forth in Section 8.2.3(ii). 
 For the
purpose of determining whether the manufacture, use or sale of Licensed Product in any jurisdiction in the Territory would infringe a Valid Claim if not for the licenses granted herein, any Licensed Product not manufactured within the jurisdiction
in which use or sale of that Licensed Product occurs shall be deemed to have been manufactured in that jurisdiction. 
  

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 7.2.3 Reports; Payment
of Royalties. During the term of the Agreement, Licensee shall furnish to Licensor two quarterly written report for each Calendar Quarter showing for the First Report Licensee’s estimated Net Sales of all Licensed Products sold by Licensee,
its Affiliates or Sub-licensees in the aggregate and on a country-by-country basis during the reporting period; for the Second Report the actual Net Sales of all Licensed Products sold by Licensee, its Affiliates or Sub-licensees in the aggregate
and on a country-by-country basis during the reporting period and the calculation of the royalties and/or other payments payable to Licensor under this Agreement. The First Quarterly reports shall be due on the fifth (5th) day following the close of each Calendar Quarter and will be used as information only by Licensor for accounting
purposes. The Second Quarterly Reports shall be due on the sixtieth (60th) day following the close of each
Calendar Quarter. Royalties or other payments shown to have accrued by each royalty report shall be due and payable on the date such report is due. Licensee shall keep complete and accurate records in connection with the sale of Licensed Products
hereunder in sufficient detail to permit accurate determination of all figures necessary for calculation and verification of royalty and other payment obligations set forth in this Article 7. 
 7.2.4 Audits. Upon the written request of Licensor thirty (30) days in advance, Licensee shall permit an independent
certified public accounting firm of an internationally recognized standing and selected by Licensor to have access during normal business hours to such of the records of Licensee as may be reasonably necessary to verify the accuracy of the reports
under Section 7.2.3 provided however that it does not disrupt Licensee’s operation of business. The accounting firm shall disclose to Licensee and Licensor whether the reports are correct or incorrect, the specific details concerning any
discrepancies and such other information that should properly be contained in a royalty report required under this Agreement. 
 If such accounting firm concludes that additional royalties or other amounts were owed, Licensee shall pay the additional royalties or payments within thirty (30) days of the date Licensor delivers to Licensee such accounting
firm’s written report so concluding. In the event such accounting firm concludes that amounts were overpaid by Licensee, Licensor shall repay Licensee the amount of such overpayment within thirty (30) days of the date Licensor delivers to
Licensee such accounting firm’s written report so concluding. The fees charged by such accounting firm shall be paid by Licensor; provided, however, that if an error in favor of Licensor of more than five (5) percent of the royalties due
hereunder for the period being reviewed is discovered, then the fees and expenses of the accounting firm shall be paid by Licensee. 
 If such accounting firm concludes that the reports were correct, Licensor shall not be entitled to request any further audit during the next thirty-six (36) months. 
 Upon the expiration of thirty-six (36) months following the end of any Calendar Year for which Licensee has made payment in full of
all royalties and other amounts payable with respect to such year, and in the absence of negligence or willful misconduct of Licensee or a contrary finding by an accounting firm pursuant to this Section, such calculation shall be binding and
conclusive upon Licensor and Licensee shall be released from any liability or accountability 

  

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with respect to royalties or other payment for such Calendar Year. Notwithstanding the foregoing, to the extent that section G.8 of the GNE Ex-US License
requires audit rights in addition to, or different from those granted above to Licensor, Licensee shall cooperate in good faith to enable Licensor to so comply with such audit rights. 
 7.2.5 Payment Exchange Rate. All payments to Licensor under this Agreement related to Royalties or to Milestone Payments
shall be made in Euros. When calculating Net Sales, Licensee shall convert the amount of invoiced sales in currencies other than Euros into Euros using the exchange rates as determined for the purpose of consolidating its financial statements
(average of the rates of the last day of each month as published by the European Central Bank). All payments related to Developments costs (joint development or after Opt-in) will be made in the currency of the invoicing Party. 
 7.2.6 Late Payment. In case of late payment of any payment due hereunder by Licensee (or in case of additional payment due
by one Party to the other pursuant to Section 7.2.4), Licensee shall pay to Licensor interest on the unpaid amount until such payment is paid in full, at the average one-month European Interbank Offered Rate (EURIBOR) plus two (2) percent
as reported by the European Bank Federation (or a successor or similar organization) from time to time, calculated on the number of days such a payment is overdue. 
 7.2.7 Tax Withholding. If provision is made in law or regulation of any country in the Territory for withholding of taxes of
any type, levies or other charges with respect to any amounts payable by Licensee to Licensor pursuant to this Agreement, Licensee shall promptly pay such tax, levy or charge for and on behalf of Licensor to the proper governmental authority and
Licensee shall promptly furnish Licensor with certificate of taxes deducted under such withholding tax laws. Licensee shall have the right to offset any such tax, levy or charge actually paid from any payment due to Licensor or shall be promptly
reimbursed by Licensor if no further payments are due. Licensor and Licensee shall cooperate with each other in obtaining any exemption from or reduced rate of tax available under any applicable law or tax treaty. 
 Licensee and Licensor shall pay for their own account all sales, turnover, income, revenue, value added and other taxes levied on account
of payments accruing or made under this Agreement. All amounts expressed in this Agreement exclude such taxes which were required by law shall be charged at the applicable rate. 
  

	8.	TRADEMARKS AND INTELLECTUAL PROPERTY RIGHTS 

 8.1 Licensed Trademark. 
 8.1.1 The Licensed Product will be marketed in the Territory under the Licensed Trademark. In specific countries where the use of the Licensed Trademark is not permitted by law or is not appropriate including for reasons relating to
language or custom, Licensee shall have the possibility to use a different trademark, subject to Licensor’s prior written approval which shall not be unreasonably withheld or delayed. Licensor shall be responsible for securing and for
maintaining registrations for the Licensed Trademark in the Territory and shall use 

  

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reasonable commercial efforts in that regard, provided, however, that Licensor shall not be deemed to have breached this Agreement if it is
unable to obtain registration of the Licensed Trademark in every country in the Territory. In the event, despite its reasonable commercial efforts, Licensor is unable to obtain or maintain registrations for the Licensed Trademark in some country
(ies) in the Territory, the Parties shall negotiate in good faith concerning the use of such other trademarks as may be available for marketing the Licensed Product in those countries. 
 8.1.2 Enforcement. Licensee and Licensor shall cooperate with each other and use reasonable efforts to protect
the Licensed Trademark from infringement by third parties. Without limiting the foregoing, each Party shall promptly notify the other Party of any known, threatened or suspected infringement, imitation or unauthorized use of or unfair competition
relating to the Licensed Trademark. Licensor shall have the first right to determine in its discretion whether to and to what extent to institute, prosecute and/or defend any action or proceedings involving or affecting any rights relating to the
Licensed Trademark. Upon Licensor’s reasonable request, Licensee shall, at Licensor’s expense, cooperate with and assist Licensor in any of Licensor’s enforcement efforts with respect to the Licensed Trademark. Licensor shall promptly
inform Licensee if Licensor elects not to take action against any actual or suspected infringement of the Licensed Trademark, in which case, Licensee, at its own expense, shall then have the right, but not the obligation, to bring or assume control
of any action against the allegedly infringing third party as Licensee determines may be necessary, provided, however, that Licensee shall not enter into any settlement or compromise of any claim relating to the Licensed Trademark
without the prior written consent of Licensor. In the event that Licensee brings or assumes control of any such action, then Licensor agrees to, at Licensee’s expense, reasonably assist Licensee in connection therewith. In either case, the
Party that initiated and prosecuted, or maintained the defense of the action shall bear all costs and expenses (including reasonable attorneys’ fees) incurred in connection with the action and shall be entitled to recoup those amounts in the
event of recovery, by settlement or otherwise. The amount of any recovery remaining shall be shared equally by the Parties. 
 8.1.3 Avoidance of Confusion. Licensee and its Affiliates or Sublicensee shall not market, promote, sell and/or distribute anywhere in the Territory any product other than Licensed Product under the Licensed Trademark
or any confusingly similar trademark, and Licensor and its Affiliates or sublicensee shall not market, promote, sell and/or distribute anywhere in the Licensor Territory any product other than Licensed Product under the Licensed Trademark or any
confusingly similar trademark. Licensee and its Affiliates shall not, directly or indirectly, contest the validity of or Licensor’s rights in the Licensed Trademark anywhere in the Territory or assist any third party in doing so. In the event
that actual confusion should arise, or either Party reasonably believes that a likelihood of confusion may arise, in connection with the Parties’ respective uses of the Licensed Trademark, the Parties will fully cooperate in an effort to
eliminate such confusion and to avoid the possibility of such a likelihood of confusion. 
 8.2 Licensor IP Rights. 
 8.2.1 Securing Patent Protection. Subject to legal and contractual limitations imposed upon Licensor as the licensee under
the GNE US License, GNE Ex-US License and the Fujisawa License, Licensor will take all commercially reasonable actions necessary to file, prosecute and maintain patent protection for the Licensed Product in the Territory during the term of this
Agreement. 
  

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 8.2.2 Third Party Infringement of Licensor IP Rights. Each Party
shall promptly give the other Party notice of any suspected infringement in the Territory of any patent application or patent included in the Licensor IP Rights that comes to such Party’s attention. The Parties will thereafter consult and
cooperate fully to determine a course of action, including, without limitation, the commencement of legal action by any Party. However, as between the Parties, Licensor, subject to legal and contractual limitations imposed upon it as the licensee
under the GNE Ex-US License and the Fujisawa License, shall have the first right to initiate and prosecute such legal action at its own expense and in the name of Licensor and/or Licensee, or to control the defense of any declaratory judgment action
relating to Licensor IP Rights. Licensor shall promptly inform Licensee if Licensor elects not to exercise such first right, in which case Licensee shall thereafter have the right either to initiate and prosecute such action or to control the
defense of such declaratory judgment action in the name of Licensor and, if necessary, Licensee, provided, however, that Licensee shall not enter into any settlement or compromise of any claim relating to the Licensor IP Rights licensed
hereunder without the prior written consent of Licensor. If Licensor elects not to initiate and prosecute such an infringement or defend a declaratory judgment action in any country in the Territory and Licensee elects to do so, the cost of any
agreed-upon course of action, including the costs of any legal action commenced or any declaratory judgment action defended, shall be borne solely by Licensee. Notwithstanding the foregoing, Licensee shall (i) have no right to initiate or
prosecute an enforcement action or defend a declaratory judgment action relating to a third party’s infringement or anticipated infringement of any GNE Patent (as that term is defined in the GNE Ex-US License) in the Licensed IP Rights, and
(ii) cooperate to the extent necessary for the enforcement of any GNE Patent in the Licensed IP Rights, which cooperation shall include joining GNE and/or Licensor as a party to such enforcement action if required by law, provided that GNE
and/or Licensor reimburse Licensee for reasonable costs incurred with respect to such joinder or other cooperation. 
 If one
Party elects to institute a legal proceeding to enforce Licensor IP Rights against an alleged infringing party, the other Party shall fully cooperate with and supply all assistance reasonably requested by the Party instituting such proceeding, at
the expense of the Party instituting such proceeding. Any recovery or award obtained by either Party as a result of any such action or settlement shall be shared as follows: 
 (a) if Licensor initiated and prosecuted, or maintained the defense of, the action, the amount of any recovery remaining then shall be
retained by Licensor; and 
 (b) if Licensee initiated and prosecuted, or maintained the defense of, the action, the amount of
any recovery remaining shall be retained by Licensee, except that Licensor shall receive a portion equivalent to the royalties it would have received in accordance with the terms of this Agreement as if such amount were Net Sales of Licensee.

  

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IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
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 For any such legal action or defense, in the event that any Party is unable to initiate,
prosecute, or defend such action solely in its own name, the other Party will join such action voluntarily and will execute all documents necessary for the Party to prosecute, defend and maintain such action. In connection with any such action, the
Parties will cooperate fully and will provide each other with any information or assistance that either reasonably may request. Any recovery or award obtained by either Party as a result of any such action or settlement shall be shared as follows:

 (a) the Party that initiated and prosecuted, or maintained the defense of, the action shall recoup all of its costs and
expenses (including reasonable attorneys’ fees) incurred in connection with the action, whether the recovery is by settlement or otherwise; 
 (b) the other Party then shall, to the extent possible, recover its costs and expenses (including reasonable attorneys’ fees) incurred in connection with the action; 
 (c) if Licensor initiated and prosecuted, or maintained the defense of, the action, the amount of any recovery remaining then shall be
retained by Licensor; and 
 (d) if Licensee initiated and prosecuted, or maintained the defense of, the action, the amount of
any recovery remaining shall be retained by Licensee, except that Licensor shall receive a portion equivalent to the royalties it would have received in accordance with the terms of this Agreement as if such amount were Net Sales of Licensee.

 8.2.3 Third Party Intellectual Property. 
 (i) In the event that a Party becomes aware of any claim or potential claim that the practice by either Party of Licensor IP Rights
hereunder infringes the intellectual property rights of any third party, such Party shall promptly notify the other Party. As between the Parties, Licensor shall have the first right, but not the obligation, to defend the Parties against any claim
by a third party that the Development, use, sale, offer for sale, export or import of Licensed Product in the Territory infringes third party intellectual property rights. Licensee shall have the right to participate in the defense of such claim but
shall not take any position inconsistent with Licensor’s position on such issues. In the event that Licensor chooses in its sole discretion not to defend such suit, Licensee shall have the right but not the obligation to defend such suit.
Licensee shall not settle any action pursuant to this Section without Licensor’s consent, such consent not to be unreasonably withheld. 
 (ii) If Licensee would be prevented from developing, manufacturing using, selling or importing the Licensed Product in any country of the Territory on the grounds that by doing so they would infringe a Dominating
Patent held by a third party in said country and Licensee licenses rights to such Dominating Patent in said country, then [*] percent ([*]%) of any royalties on Licensed Product sales paid by Licensee to such third party in any
Calendar Year in such country with respect to such Dominating Patent shall be deducted from any royalty payments payable to Licensor by Licensee in such Calendar Year (the “Royalty Reduction”), provided, however, that
(i) Licensor has been informed of the Dominating Patent and has had an 

  

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opportunity to provide input on any related discussion of whether to license such Dominating Patent and negotiation of royalty rates; and (ii) subject
to the warranties and representations made by Licensor under Section 11.1 of this Agreement, the amount of the Royalty Reduction in any Calendar Year shall not exceed [*] percent ([*]%) of the royalties (the “Royalty
Reduction Cap”) that would have otherwise been payable by Licensee to Licensor for such Calendar Year and for such country. Any amount of the Royalty Reduction which is not offset against royalty payments due to Licensor (because it exceeds
the Royalty Reduction Cap) shall be carried forward to and deducted in subsequent Calendar Years until the expiration date of the term. The Parties shall negotiate in good faith the consequences of several Dominating Patents if and when such several
Dominating Patents come to the attention of the Parties. Notwithstanding any royalty reduction provided in this Section 8.2.3(ii), in no event shall any royalty on Net Sales payable to Licensor by Licensee be reduced below a minimum equal to
the GNE Royalty on such Net Sales, which minimum royalty is referred to herein as the “Royalty Floor.” As used herein, with respect to a given amount of Net Sales the GNE Royalty means whatever percent of Net Sales Licensor owes as
a royalty to GNE pursuant to on G.2 of the GNE ex-US License. To demonstrate how the Royalty Floor mechanism is intended to operate pursuant to this Section 8.2.3(ii), a hypothetical calculation (for purposes of example only, and not
limitation) is provided in the example below, assuming the amount of Net Sales in Euros is then converted into US dollars. 
 Example

 1. Assumptions 
  

			
	 Net Sales of Licensed Product:
	  	[*] USD
	 Market Competition:
	  	YES
	 Valid Claim:
	  	YES
	 Royalty Paid by Licensee for License Under Third Party Dominating Patent:
	  	[*] USD

 2. Calculation of Royalty Due and Payable to Licensor by Licensee 
  

			
	 a. Royalty Owed per Section 7.2 on Net Sales With Market Competition and Valid Claim:
	  	[*] USD
		
	 b. Royalty Reduction Cap ([*]% of Royalty Owed by Licensee on Net Sales With Market Competition and Valid Claim):
	  	[*] USD
		
	 c. Full Royalty Reduction ([*]% of Royalty Paid by Licensee for License Under Third Party Dominating Patent):
	  	[*] USD
		
	 d. Royalty otherwise owed
	  	[*] USD
		
	 e. GNE Royalty (Owed by Licensor on Net Sales pursuant to Section G.2(g) of GNE ex-US License):
	  	[*] USD
		
	 f. Royalty otherwise owed compared to GNE Royalty:
	  	[*] USD
		
	 g. Adjusted Royalty Reduction (c plus f.):
	  	[*] USD
		
	 h. Royalty Due and Payable to Licensor by Licensee (a minus g, which equals e):
	  	[*] USD

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 52 

 8.3 Joint IP Rights. All Know-How or Patent Rights arising from Development activities
undertaken and funded jointly by the Parties pursuant to Article 4 shall be jointly owned by the Parties, regardless of inventorship, but subject to the licenses set forth in this Agreement. The allocation of responsibilities and costs between the
Parties for filing, prosecution, maintenance and enforcement of such Patent Rights jointly owned by the Parties shall be decided by a joint patent committee appointed and overseen by the JSC, consisting of two (2) members from each Party (the
“Joint Patent Committee”). The initial members for such Joint Patent Committee are set out in Schedule 13. 
 8.4 Patents
Solely Owned. 
 8.4.1 Licensee shall have the sole discretion for the filing, prosecution, maintenance and
enforcement of Patent Rights that it solely owns, provided that, if any such Patent Rights are subject to a license grant to Licensor as a result of Licensor’s exercise of its Opt-in rights under Section 4.4.4(ii)(F), then at the time
Licensor exercises its Opt-in rights, the Parties shall agree upon reasonable terms under which Licensor shall participate in the filing, prosecution, maintenance and enforcement of such Patent Rights in the Licensor Territory, in a form
substantially similar in principle to those set forth in Section 8.2. 
 8.4.2 Licensor shall have the sole
discretion for the filing, prosecution, maintenance and enforcement of Patent Rights that it solely owns, provided that, if any such Patent Rights are subject to a license grant to Licensee as a result of Licensee’s exercise of its Opt-in
rights under Section 4.4.4(ii)(F), then at the time Licensee exercises its Opt-in rights, the Parties shall agree upon reasonable terms under which Licensee shall participate in the filing, prosecution, maintenance and enforcement of such
Patent Rights in the Territory, in a form substantially similar in principle to those set forth in Section 8.2. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 53 

	9.	TERM AND TERMINATION 

 9.1 Term 
 9.1.1 Conditions to Closing. This Agreement shall
become effective upon the Effective Date, after the Parties have obtained all consents (including without limitation, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, if
any, and all governmental or regulatory consents, approvals or authorizations required in connection with the valid execution and delivery of this Agreement, the Somatuline Agreement and the Equity Transaction Documents and all necessary stockholder
consents and approvals), permits and waivers necessary or appropriate for consummation of any of the transactions contemplated by this Agreement, the Somatuline Agreement and the Equity Transaction Documents. 
 9.1.2 Term; Expiration. The term of the Agreement shall commence on its Effective Date and, unless sooner terminated as
provided herein, shall continue in full force and effect on a Licensed Product by Licensed Product and country- by-country basis until the expiration of the Royalty Term with respect to such Licensed Product in such country. Upon expiration of the
Royalty Term with respect to a given Licensed Product, in a given country, Licensee shall be granted a fully paid-up, irrevocable and perpetual non-exclusive license under all Licensor IP Rights with respect such Licensed Product and a fully
paid-up, irrevocable and perpetual exclusive license under the Licensed Trademark with respect to such Licensed Product and its promotional material. 
 9.2 Termination. 
 9.2.1 Either Party may terminate this Agreement, in whole or
in part as applicable, effective immediately upon receipt of written notice to the other Party, under the following circumstances: 
  

	 	(a)	if the other Party is in material breach or default with respect to any term or provision hereof and fails to cure the same within thirty (30) days of receipt of written notice
of said breach or default; or 

  

	 	(b)	if the other Party is adjudged bankrupt, files or has filed against it any petition under any bankruptcy, insolvency or similar law, has a receiver appointed for its business or
property, or makes a general assignment for the benefit of its creditors; or 

  

	 	(c)	where the right to terminate the Agreement in whole or in part is specifically provided for herein. 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 54 

 9.2.2 Licensee may terminate this Agreement in case of termination of the GNE
License and/or the Fujisawa License immediately upon notice to Licensor. In the case of such termination of the GNE License and/or the Fujisawa License, Licensor shall use Diligent Efforts to present Licensee to GNE and/or Fujisawa so that Licensee
may secure its rights under GNE’s and/or Fujisawa’s Patent Rights and Know-How relating to the Licensed Product. The Parties acknowledge that in the event of such termination, Licensee may obtain a direct license from GNE or have this
license modified by GNE pursuant to Section 13.6 of the GNE Ex-US License. 
 9.3 Resulting Obligations. Upon early
termination of this Agreement the following shall apply: 
 9.3.1 Rights to Licensed Product in the Territory.

 (a) In the event of termination by Licensor pursuant to Section 9.2.1 with respect to a one or more Licensed
Products, all rights to such Licensed Product(s) shall revert to Licensor free of charge and Licensee shall have no further rights with respect to the Licensed Product. Licensee shall, at Licensor’s election, either (i) resell under its
own responsibility all remaining quantities of unsold Licensed Products during a maximum time period of six (6) months as from termination of this Agreement, at the expiration of which period, Licensee shall, upon request from Licensor,
immediately destroy all unsold quantities of Licensed Products and provide to Licensor the corresponding certificate of destruction hereof, or (ii) immediately return any unsold stock to Licensor or any other third party designated by Licensor
provided said stock is in good saleable condition. All expenses and costs of such return shall be borne by Licensor unless termination of this Agreement occurs as a result of Licensee being in breach of the provisions of this Agreement. If option
(ii) is selected by Licensor, Licensor or the third party designated by Licensor shall repurchase all such returned stock of Licensed Products at the Licensed Products’ Supply Price referred to in Section 6.5 hereunder provided that
they are in good saleable condition and have a remaining shelf life of no less than six (6) months. Should the Licensed Products not be in good saleable condition, Licensee shall destroy all such remaining stock subject to Licensor’s prior
written agreement, and provide to Licensor the corresponding certificate of destruction hereof 
 (b) In the event of
termination by Licensee pursuant to Section 9.2.1 or 9.2.2, Licensee shall be entitled to the following, at the Licensee’s election, unless termination of the GNE License or the Fujisawa License was in whole or in part caused by
Licensee’s performance under this Agreement; (i) return all unsold Licensed Product and unused Samples to Licensor at Licensor’s expense and to receive a full refund of the Supply Price paid to Licensor for the Licensed Product and
Samples returned by Licensee, or (ii) continue to sell Licensed Product according to the terms of this Agreement until all inventory is sold or for six (6) months, whichever shall occur first. 
 9.3.2 Licensed Trademark. Except as provided for in Section 9.3.1 (b), Licensee shall terminate any use of the Licensed
Trademark and shall, at Licensor’s election, either destroy or return to Licensor at Licensee’s cost all literature, labels, or other materials, 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 55 

 
incorporating or bearing same. Licensee shall cooperate with Licensor and execute any and all documents requested by Licensor for the purpose of canceling
any registered user or other rights with respect to the Licensed Trademark or, at Licensor’s election, in transferring such rights to Licensor or its designee. 
 9.3.3 Data. Except as provided for in Section 9.3.1(b), Licensee shall cease using all information and technical and
other data provided by Licensor relating to the Licensed Product, and shall, at Licensor’s option, return to Licensor or destroy all such data having physical form and all copies thereof, and shall continue to abide by its obligation of
confidentiality set forth in Section 9 below. 
 9.3.4 Approvals; IP Rights. Except as provided for in
Section 9.3.1 (b), Licensee shall promptly assign or otherwise cause to be transferred to Licensor, or Licensor’s designee, all Marketing Authorizations or any other government registrations or approvals in the Territory having to do with
the Licensed Product that are in Licensee’s name and shall make no further use of the same and shall allow Licensor to cross-reference any INDs, BLAs (or their equivalent in the Territory), clinical data or other submissions filed with any
Regulatory Authority in the Territory and provide Licensor with copies of all such documentation. In addition, Licensee shall (i) provide Licensor with a copy of Licensee’s preclinical and clinical data, assays and associated materials,
and protocols and procedures, and any Know-How Controlled by Licensee, with respect to such Licensed Product(s) (ii) grant a non-exclusive, sublicensable license to Licensor to use, sell, manufacture, offer for sale, import and export in the
Territory such Licensed Products under any Patent Rights and any Know-How owned or Controlled by Licensee as of the effective date of the termination, (iii) grant Licensor exclusive rights to use any Licensed Trademarks filed in connection with
Licensed Products, to the extent such Licensed Trademarks are specific to one or more Licensed Products and are not generally associated with any other product of Licensee and do not contain an element of Licensee’s trade name, in each case
solely for purposes of using, selling, offering for sale, importing or exporting such Licensed Products in the Territory. 
 9.4
Survival of Rights. All of the remedies provided for in Section 9.3 are in addition to the other rights and remedies available to the Parties on termination and Section 9.3 is not intended to limit any of those rights or remedies.

  

	10.	CONFIDENTIALITY 

 10.1 All
information, whether in oral, written, graphic or electronic form, disclosed by either Party (“Disclosing Party”) to the other and/or any of its subsidiaries, subdivisions, parent companies, affiliates agents or consultants
(“Receiving Party”), and all notes, documents and materials prepared by or for either Party which reflect, interpret, evaluate, include or are derived therefrom, shall be deemed to be “Confidential Information.” In
particular, Confidential Information shall include, without limitation, any trade secret, proprietary information, invention, research and development work, work-in-process, technology, technique, know-how, design, specification, program,
unpublished data, procedure (including operating procedures), computer software, data base or programming, idea, sample, strategy, budget, projection, development, 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 56 

 
process, formulation, method, guideline, policy, proposal, contract, test data or data file, or any engineering, manufacturing, marketing, servicing,
financing, pricing, cost, profit, personnel or salary structure/compensation information relating to the past, present or future operations, products, services, technology, sales, suppliers, clients, customers, employees, investigators, investors or
business of Disclosing Party. In addition, “Confidential Information” includes any trade secrets, data (technical or non-technical) or confidential information relating to the past, present or future operations, organization,
business, projects or finances of any third party to which Disclosing Party owes a duty of confidentiality including, without limitation, the mere fact that Disclosing Party is or may be working with or for any client. 
 10.2 Receiving Party shall not use or disclose such Confidential Information to others (except its employees, Affiliates and sub-licensees who
reasonably require same for the purposes hereof and who are bound to it by a like obligation as to confidentiality except as required by law) without the express written permission of Disclosing Party, except for Confidential Information that
(i) can be demonstrated by written records to be known to Receiving Party from a source other than Disclosing Party at the time of receipt; or (ii) was subsequently otherwise legally acquired by Receiving Party from a third party having an
independent right to disclose the information; or (iii) is now or later becomes publicly known without breach of this Agreement by Receiving Party or any Party that received such Confidential Information from Receiving Party. 
 10.3 Either Party may disclose the other Party’s Confidential Information to the extent such disclosure is required by law, regulations
(including without limitation the rules and regulations promulgated by the SEC) and valid court orders, provided that such Party gives the other Party reasonable notice of such disclosure and uses reasonable efforts to obtain confidential treatment
or a protective order for such information. Licensor shall have the right to disclose Licensee’s Confidential Information to the extent such disclosure is required to satisfy its obligations under the GNE Ex-US License, the Fujisawa License, or
its agreements with third party manufacturers and suppliers provided that such persons undertake to keep confidential such Confidential Information. 
 10.4 Other Permitted Disclosure. Except as otherwise expressly provided herein, to the extent reasonably necessary to carry on the activities contemplated in this Agreement, each Party shall be permitted
to (a) disclose or grant use of Confidential Information received under this Agreement to any of its permitted sublicensees, agents, consultants, clinical investigators, collaborators or contractors, under confidentiality and non-use
obligations at least as stringent as those set forth in this Article 10; (b) disclose Confidential Information received under this Agreement to actual or potential professional investors, acquirers, merger or other business partners or retained
professional advisors (e.g. attorneys, accountants and investment bankers), under confidentiality and non-use obligations at least as stringent as those set forth in this Article 10; and (c) to a Regulatory Authority to the extent necessary for
obtaining Marketing Authorization for a Licensed Product. 
 10.5 Publications. In the event either Party wishes to publish or
orally deliver a scientific article or speech relating to the Development of a Licensed Product, such Party shall submit to the other Party a draft of each such proposed oral disclosure or written publication at 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 57 

 
least thirty (30) days prior to the anticipated oral disclosure or the submission of the written publication. The other Party shall review each such
proposed oral disclosure or written publication in order to avoid the unauthorized disclosure of such Party’s Confidential Information and to preserve the patentability of inventions arising from this Agreement. As soon as reasonably possible,
but in no event more than thirty (30) days after receipt of an advance copy of a publishing Party’s proposed oral disclosure or written publication, the reviewing Party shall inform the publishing Party if the proposed oral disclosure or
written publication contains any of the reviewing Party’s Confidential Information or could be expected to have a material adverse effect on any patent rights of the reviewing Party. If so requested by the reviewing Party, the publishing Party
shall amend any proposed oral disclosure or written publication to the extent necessary to protect the Confidential Information of the reviewing Party of which the publishing Party is made aware by the reviewing Party and, if so requested by the
reviewing Party, shall delay such proposed oral disclosure or written publication for a reasonable period of time to permit the timely preparation of a patent application by the reviewing Party. 
 10.6 Press Release. In general, and except where required by law or regulation, no public announcement or other disclosure by the Parties
concerning the existence of or terms of this Agreement shall be made, either directly or indirectly, by either Party to this Agreement, without first obtaining the written approval of the other Party and agreement upon the nature and text of such
announcement or disclosure, such consent not to be unreasonably withheld. The Parties shall make a joint public announcement in English of the execution of this Agreement in such form separately agreed upon between the Parties on or after the
Effective Date. Licensee shall be permitted to make a public announcement in French or such other language as it desires of the execution of this Agreement similar to the English press release. After the initial press release concerning this
Agreement, if either Party desires to make an additional press release concerning any additional material terms of this Agreement, it shall inform the other Party in reasonably sufficient time prior to public release, and shall provide the other
Party with a written copy thereof for review. A Party commenting on such a proposed press release shall provide its comments, if any, within three (3) business days after receiving the press release for review. Each Party agrees that it shall
cooperate fully with the other with respect to all disclosures regarding this Agreement to any stock market, governmental or regulatory agencies, including requests for confidential treatment of proprietary information of either Party included in
any such disclosure. Where required by law or by the regulations of the applicable securities exchange upon which such Party may be listed, each Party shall have the right to make a press release announcing the achievement of each milestone under
this Agreement as it is achieved, and the achievements of Regulatory Approvals in the Territory as they occur, subject only to the review procedure set forth in the preceding sentence. Neither Party shall be required to seek the permission of the
other Party to repeat any information regarding the terms of this Agreement that has already been publicly disclosed by such Party, or by the other Party, in accordance with this Section 10.6. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 58 

	11.	REPRESENTATIONS AND WARRANTIES 

 11.1
Representations and Warranties of Licensor. Licensor makes the following covenants, representations and warranties to Licensee, as of the Execution Date, and does so in full understanding and acknowledgement that Licensee is relying on the
said representations and warranties in entering into the present Agreement: 
 11.1.1 Status. Licensor is a
corporation organized and existing under the laws of the State of Delaware, United States of America. No action has been taken by the directors, officers or shareholders of Licensor to dissolve Licensor. Licensor has the corporate power and
authority to enter into the present Agreement and to perform all its obligations hereunder. 
 11.1.2 All Necessary
Proceedings. Licensor has taken all necessary corporate actions and proceedings to enable it to enter into the present Agreement. 
 11.1.3 No Other Agreements for the Licensed Product. Save as regards Third Party Countries, Licensor has not made any written or oral agreement or undertaking with any third party regarding the rights to
sell the Licensed Product in the Territory. 
 11.1.4 No Violation and Consent. Licensor warrants that the
execution, delivery and performance of this Agreement by it (a) does not and will not violate or conflict with any provision of law or any provision of its articles of incorporation or by-laws; and (b) does not and will not, with or
without the passage of time or the giving of notice, result in the breach of, or constitute a default, cause the acceleration of performance, or require any consent under, or result in the creation of any lien, charge or encumbrance upon any of its
property or assets pursuant to any material instrument or agreement to which it is a Party or by which it or its properties may be bound or affected. Licensor warrants that (i) all consents from GNE and Fujisawa relating to the execution of
this Agreement have been properly and timely obtained by Licensor and (ii) Licensor’s grant of the Manufacturing Option under Section 6.18 of this Agreement does not infringe the rights of any third party to whom Licensor is
obligated. 
 11.1.5 Non-infringement. Licensor represents and warrants to the best of its knowledge, as of the
Execution Date, (i) that there are no outstanding claims or allegations that the Licensed Product and/or the Licensed Trademark infringe upon any rights of a third party in the Territory and (b) that the Licensed Product and the Licensed
Trademark do not infringe upon any rights of a third party in the Territory. 
 11.1.6 GNE and Fujisawa
Licenses. Licensor warrants that as of the Execution Date, (i) the GNE Ex-US License and Fujisawa License are in full force and in effect in accordance with their terms, (ii) Licensor is not in default or breach in any material respect
of the GNE Ex-US License and Fujisawa License, (iii) to Licensor’s knowledge, there is no cause for early termination of the GNE Ex-US License and Fujisawa License, and (iv) the terms under this Agreement are not in conflict with the
terms in the GNE Ex-US License or Fujisawa License. Licensor shall (i) comply with and observe in all material respects its obligations under the GNE Ex-US License and Fujisawa License and (ii) not terminate or otherwise modify any terms
or conditions of the GNE Ex-US License and Fujisawa License in any manner that would materially adversely affect Licensee’s rights under this Agreement without the prior written consent of Licensee. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 59 

 11.2 Representations and Warranties of Licensee. Licensee makes the following covenants,
representations and warranties to Licensor, as of the Execution Date, and does so in full understanding and acknowledgement that Licensor is relying on the said representations and warranties in entering into the present Agreement: 
 11.2.1 Status. Licensee is a corporation organized and existing under the laws of France. No action has been taken by the
directors, officers or shareholders of Licensee to dissolve Licensee. Licensee has the corporate power and authority to enter into the present Agreement and to perform all its obligations hereunder. 
 11.2.2 All Necessary Proceedings. Licensee has taken all necessary corporate actions and proceedings to enable it to enter
into the present Agreement. 
 11.2.3 No Violation. Licensee warrants that the execution, delivery and
performance of this Agreement by it (a) does not and will not violate or conflict with any provision of law or any provision of its articles of incorporation or by-laws; and (b) does not and will not, with or without the passage of time or
the giving of notice, result in the breach of, or constitute a default, cause the acceleration of performance, or require any consent under, or result in the creation of any lien, charge or encumbrance upon any of its property or assets pursuant to
any material instrument or agreement to which it is a Party or by which it or its properties may be bound or affected. 
 11.3 THE
WARRANTIES SET OUT ABOVE AND IN SECTIONS 2.5.2 AND 6.15.1 ARE THE ONLY WARRANTIES GIVEN BY EITHER PARTY AND ARE MADE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. THERE IS NO OTHER CONDITION OR WARRANTY RELATING TO PRODUCT MERCHANTABILITY OR
FIT FOR ANY PARTICULAR PURPOSE, ALL OF WHICH ARE HEREBY EXCLUDED AND DISCLAIMED. 
  

	12.	INDEMNIFICATION 

 12.1 Indemnity. For
purposes of this Section, “Licensee Indemnified Parties” refers to Licensee, its Affiliates and the officers, directors, employees, shareholders, agents and successors and assigns of Licensee and its Affiliates, and “Licensor
Indemnified Parties” refers to Licensor, its Affiliates and officers, directors, employees, shareholders, agents and successors and assigns of Licensor and its Affiliates. 
 12.1.1 Indemnification by Licensor. Licensor shall defend, indemnify and hold harmless to the fullest extent permitted by
law the Licensee Indemnified Parties and each of them, from and against any and all losses, claims, liabilities, demands, actions, proceedings, judgments of any and all types, including, without limitation, reasonable fees of attorneys, accountants
and other experts (collectively, “Losses”), incurred by Licensee Indemnified Parties insofar as they arise out of or are alleged or claimed to arise out of (i) any activities conducted by Licensor in relation with (i) the
Licensed Product including development and commercialization activities; (ii) Licensors’ enforcement of Licensed Patent Rights in any action against a third party that is joined by Licensee in compliance with Section 8.2.2; and
(ii) any material breach by 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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Licensor of its obligations under this Agreement, provided, however, that: (a) Licensor shall not be obligated under this
Section 12.1.1 to the extent that the Losses resulted from the negligence or willful misconduct of Licensee, Licensee’s Affiliates, Sub-licensees or Contractors; and (b) Licensee shall have the right to participate in the defense of
any such claim, complaint, suit, proceeding or cause of action referred to in this Section 12.1.1 utilizing attorneys of its choice, at its own expense, provided, however, that Licensor shall have full authority and control to
handle any such claim, complaint, suit, proceeding or cause of action, including any settlement or other disposition thereof, for which Licensee seeks indemnification under this Section 12.1.1. 
 12.1.2 Indemnification by Licensee. Licensee shall defend, indemnify and hold harmless the Licensor Indemnified Parties and
each of them to the fullest extent permitted by law from and against any and all Losses incurred by Licensor Indemnified Parties insofar as they arise out of or are alleged or claimed to arise out of (i) any activities conducted by Licensee in
connection with the Licensed Product, and (ii) any material breach by Licensee of its obligations under this Agreement; provided, however, that; (a) Licensee shall not be obligated under this Section 12.1.2 to the extent
that the Losses resulted from the negligence or willful misconduct of Licensor or Licensor’s Affiliates or contractors; and (b) Licensor shall have the right to participate in the defense of any such claim, complaint, suit, proceeding or
cause of action referred to in this Section 12.1.2 utilizing attorneys of its choice, at its own expense, provided, however, that Licensee shall have full authority and control to handle any such claim, complaint, suit, proceeding or cause of
action, including any settlement or other disposition thereof, for which Licensor seeks indemnification under this Section 12.1.2. 
 Notwithstanding the provisions of Sections 12.1.1 and 12.1.2, Licensee and Licensor agree and understand that, in the event of a claim, complaint, suit, proceeding or cause of action brought against one Party containing allegations of
liability based on activities for which such Party was responsible, such Party shall control and bear financial responsibility for its own defense; unless the other Party agrees to control and bear financial responsibility of such defense.

 12.2 Settlement of Indemnified Claims. The Indemnifying Party under Section 12.1.1 or 12.1.2, as applicable (the
“Indemnifying Party”), shall have the sole authority to settle any claim against the other Party (the “Indemnified Party”) pursuant to Sections 12.1.1 or 12.1.2 (the “Indemnified Claim”) without the
consent of the other Party, provided, however, that an Indemnifying Party shall not, without the written consent of the other Party, as part of any settlement or compromise (i) admit to liability on the part of the other Party;
(ii) agree to an injunction against the other Party; or (iii) settle any matter in a manner that separately apportions fault to the other Party. 
 12.3 Indemnification Procedure. Each Party shall promptly notify the other Party in writing of any claim, suit, proceeding, demand or assessment it believes is an Indemnified Claim. Concurrent with the
provision of notice pursuant to this Section 12.3, the Indemnified Party shall provide to the other Party copies of any complaint, summons, praecipe, subpoena or other court filings related to such claim. Failure to provide prompt notice shall
not relieve any Party of the duty to defend or indemnify unless such failure materially prejudices the defense of any matter. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
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 Should the Indemnifying Party dispute that any claim or portion of a claim (“Disputed
Claim”) of which it receives notice pursuant to Section 12.3, is an Indemnified Claim, it shall so notify the Indemnified Party providing written notice in sufficient time to permit such Indemnified Party to retain counsel and timely
appear, answer and/or move in any such action. In such event, such Indemnified Party shall defend against such claim until the dispute regarding whether such claim is an Indemnified Claim has been resolved; provided, however, that an
Indemnified Party shall not settle any claim which it contends is an Indemnified Claim without providing the Indemnifying Party ten (10) working days’ notice prior to any such settlement and an opportunity to assume the defense and
indemnification of such claim pursuant to this Agreement. If it is determined that a Disputed Claim is subject to indemnification, in whole or in part, the Indemnifying Party will reimburse the reasonable costs and expenses, including
attorneys’ fees, of the Indemnified Party. 
 12.4 Insurance. Each Party shall maintain, during the term of this Agreement,
Commercial General Liability Insurance, (including Products Liability, Contractual Liability, Bodily Injury, Property Damage and Personal Injury) to cover its indemnification obligations under this Article 12. During the term of this Agreement, each
Party shall not permit such insurance to be reduced, expired or canceled without reasonable prior written notice to the other Party. Upon request, each Party shall provide certificates of insurance to the other Party evidencing the coverage
specified herein. Except as expressly stated herein, a Party’s liability to the other is in no way limited to the extent of the Party’s insurance coverage. In the event of duplicate coverage, the insurance policy of the Party whose fault
causes the need for reimbursement under an insurance policy shall be primary and the other Party’s excess and non-contributing. 
 12.5 Limitation of Liability. EXCEPT FOR ANY WILLFUL BREACH BY EITHER PARTY OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS UNDER SECTIONS 11.1 AND 11.2, OR FOR DAMAGES ACTUALLY PAID BY A PARTY TO A THIRD PARTY PURSUANT
TO A THIRD-PARTY CLAIM, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY OF ITS AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, BUSINESS OR
GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

	13.	FORCE MAJEURE 

 Neither Party shall be liable for any delay or default in such Party’s performance hereunder if such default or delay is caused by events beyond such Party’s control including, but not limited to, acts of God, war or insurrection,
civil unrest, disease or calamity affecting the raw materials or equipment used in the production of Licensed Product, earthquake, fire, flood or storm, labor disturbances or epidemic. An event of Force Majeure shall have no effect on
Licensee’s obligation to pay for Licensed Product already delivered as required by this Agreement. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 62 

 In the event that either Party is forced to rely on this Section due to an event of Force Majeure, the
Parties agree that, after the event of Force Majeure has ended, they will meet to discuss any issues with the Agreement resulting from the Force Majeure and that the Parties will negotiate in good faith to resolve any such issues. Should an event of
Force Majeure continue for more than six (6) months, the Party not relying on this Section shall have the right to terminate this Agreement by giving thirty (30) days written notice to the other Party of its intent to terminate.

  

	14.	SUCCESSORS IN INTEREST 

 14.1 Neither Party may assign this Agreement or any rights hereunder or delegate the performance of any duties hereunder without the prior written approval of the other Party, which approval shall not be
unreasonably delayed or withheld; provided, however, that without such consent either Party may assign this Agreement to an Affiliate or in connection with the transfer or sale of all or substantially all of its assets, stock or
business, or its merger, consolidation or combination with or into another entity or acquisition of another entity. Subject to the foregoing, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their
respective successors and permitted assignees. 
 14.2 Notwithstanding Section 14.1, in the event that (i) this Agreement is
transferred or sold to, in connection with the transfer or sale of all or substantially all of Licensee’s assets, stock or business to a third party or (ii) that Licensee is directly or indirectly acquired by, or merges with and into, a
third party, Licensor shall have the right to terminate this Agreement as provided herein. Where such acquisition or change of control transaction is with a Competing Entity (as defined below), Licensor shall have three (3) months following the
announcement of such transaction to give written notice to Licensee of its intent to terminate the Agreement, such termination to be effective sixty (60) days after receipt of notice of termination, the provisions of Section 9.3 shall
apply and Licensor shall owe no compensation to Licensee as a result of such termination. Where such acquisition or change of control transaction is not with a Competing Entity, Licensor shall have three (3) months to give written notice to
Licensee of its intent to terminate the Agreement, such termination to be effective sixty (60) days after receipt of notice of termination, provided that such termination is subject to the payment by Licensor of the fair market value of the
Licensed Products to be reverted to Licensor in such instance, as agreed in writing between the Parties within such sixty (60) days period. The Parties shall exchange their proposals regarding such valuation in writing and in the event the
Parties do not agree on such fair market value within the first forty-five (45) days of such sixty (60) day period, the matter shall be referred to the final decision of three (3) experts of international reputation in the field of
accounting or merchant banking with expertise in the pharmaceutical industry, one being appointed by Licensee within fifteen (15) days following failure of the parties to agree, one by Licensor within fifteen (15) days following failure of
the parties to agree and one by the two first experts within fifteen (15) days following their appointment. In the event one Party fails to appoint an expert, the other Party may appoint such expert. Once appointed, the experts shall provide
the Parties with their decision within one (1) month from the date of the appointment of 

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 63 

 
the third expert and this decision shall be final and binding upon the Parties. The expert decision shall be one or the other of the latter of the written
proposals exchanged by each Party with a view to agree on such fair market value. Licensor shall make such payment to Licensee, as agreed by the Parties or as decided by the experts, within fifteen (15) days following such agreement or
decision. The decision of the expert shall also allocate the cost for this resolution by the panel of experts among the Parties in a proportion the experts deem reasonable. For the purpose of this Section, Competing Entity shall mean a company that,
at the time of change of control, markets one or more pharmaceutical products wherever in the world which are material competitors to any one of the pharmaceutical products (including but not limited to the Licensed Product) marketed by Licensor
wherever in such region, as of such time. 
  

	15.	DISPUTE RESOLUTION 

 Any dispute, controversy or
claim arising out of or relating to this Agreement, or the breach or termination thereof, shall be settled as follows: 
 15.1
Reference to Executives. In the event of a significant controversy, claim, or dispute arising out of or relating to this Agreement or any significant breach thereof (hereinafter collectively referred to as a “Dispute”), the
Parties agree that the Dispute shall be described in writing by one or both of the Parties and copies of the description shall be sent to the General Counsel of Licensee and to the General Counsel of Licensor. These executives will then have fifteen
(15) days from receipt of such Dispute description to attempt in good faith to resolve the Dispute. In the event that the Dispute is not resolved within this fifteen (15) day time period, then either Party can proceed to arbitration of the
Dispute, as described in Section 15.2. 
 15.2 Arbitration. Only in the event that a Dispute is not resolved through reference
to executives, as provided above, may the Parties submit the Dispute to arbitration under the Rules of Arbitration of the International Chamber of Commerce. The Arbitral Tribunal shall consist of three (3) arbitrators. The place of arbitration
shall be New York, New York and the arbitration proceedings shall be held in English. The award shall be final and judgment upon such an award may be entered in any competent court or application may be made to any competent court for juridical
acceptance of such an award and order of enforcement. 
 15.3 Governing Law. In the event that a Dispute is not resolved though
mediation, as provided above, the laws of New York shall apply to any arbitration or litigation initiated under this Agreement (regardless of its or any other jurisdiction’s choice of law principles). 
 15.4 Restraining Order. The dispute resolution procedures set forth herein shall not limit a court from granting a temporary restraining
order or a preliminary injunction in order to preserve the status quo of the parties pending arbitration or to protect a Party’s trademark or confidential or proprietary information. Further, the arbitrator shall have power to enter such orders
by way of interim award, and such orders shall be enforceable in court. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 64 

	16.	NOTICE 

 Any notice required or permitted to be
given hereunder shall be deemed sufficient if sent by facsimile letter or overnight courier, or delivered by hand to Licensor or Licensee at the respective addresses set forth below or at such other address as either Party hereto may designate. If
sent by facsimile letter, notice shall be deemed given when the transmission is completed if the sender has a confirmed transmission report. If a confirmed transmission report does not exist, then the notice will be deemed given when the notice is
actually received by the person to whom it is sent. If delivered by overnight courier, notice shall be deemed given when it has been signed for. If delivered by hand, notice shall be deemed given when received. 
 All notices to Licensor shall be addressed as follows: 
 Tercica, Inc. 
 2000 Sierra Point Parkway, Suite 400 
 Brisbane, California 94005 
 USA 

Attention: General Counsel 
 With a copy,
which shall not serve as notice, to: 
 Cooley Godward, LLP 
 Five Palo Alto Square 
 3000 El Camino Real 
 Palo Alto, CA 94306 
 USA 
 Attention: Barbara A. Kosacz, Esq. 
 All
notices to Licensee shall be addressed as follows: 
 Beaufour Ipsen Pharma 
 24 rue Erlanger, F 
 75016 Paris 

France 
 Attention: President 

With a copy to: 
 Ipsen 
 Attention: General Counsel 
 24 rue Erlanger,
F 
 75016 Paris 
 France

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 65 

	17.	SURVIVAL 

 17.1 The provisions of
Section 2.5.2 (but only with respect to the first sentence of 2.5.2 as it pertains to warranty), the last paragraph of Section 5.6 (promotional materials), and Sections 8.3 (Joint IP Rights), 9.1.2 (Term; expiration), 9.3 (Resulting
Obligations), 9.4 (Survival of Rights), and of Articles 10 (Confidentiality), 11 (Representations and Warranties), 12 (Indemnification), 15 (Dispute Resolution) and this Article 17 shall survive expiration or termination of this Agreement.

 17.2 Without prejudice to the above: 
 (a) any amounts payable by a Party under this Agreement prior to termination or expiration of the Agreement shall survive such
termination or expiration; and 
 (b) in relation only to any outstanding sales at the date of expiration or termination that
have not yet been accounted for, Section 5.5 (Sales Reports and Records) shall survive termination or expiration of this Agreement 
 (c) in relation only to ongoing sales for a six month period following termination pursuant to Section 9.3.1(a), Section 6.11 (Regulatory Compliance) and Section 8.1.1 (Licensed Trade Mark) shall
survive termination of this Agreement for the six month period only. 
  

	18.	ADDITIONAL TERMS 

 18.1 Entire Agreement.
This Agreement, together with the Schedules attached hereto, constitutes the entire understanding between the Parties with respect to the Licensed Product, and supersedes and replaces all previous negotiations, understandings, representations,
writings, and contract provisions and rights relating to the subject matter hereof. The Parties agree that all supply and distribution of the Licensed Product hereunder shall be subject to and governed by the terms and provisions set forth herein,
and none of the terms and conditions contained on any purchase or order form, invoice, or other writing, shall change the provisions of this Agreement unless it is signed and delivered by both Parties and it clearly indicates that the Parties intend
to vary the terms hereof. 
 18.2 Amendments; No Waiver. No provision of this Agreement may be amended, revoked or waived
except by writing signed and delivered by an authorized officer of each Party. Any waiver on the part of either Party of any breach or any right or interest hereunder shall not imply the waiver of any subsequent breach or waiver of any other right
or interest. 
 18.3 Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, each of which shall remain in full force and effect. 
 18.4
Headings. The descriptive headings are inserted for convenience of reference only and are not intended to be part of or to affect the meaning of or interpretation of this Agreement. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 66 

 18.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original, but both of which together shall constitute one and the same instrument. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 67 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their duly authorized
representatives on the dates set forth below to be effective as of the Effective Date. 
  

									
	Tercica, Inc.	 		 	Beaufour Ipsen Pharma
					
	By:	 	/s/ John A. Scarlett, M.D.	 		 	By:	 	/s/ Claire Giraut
					
	Date:	 	  	 		 	Date:	 	  

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 68 

 Schedule 1 
 Licensed Patent Rights 
 (Section 1.51) [*] 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 1 

 Schedule 2 
 Specification for Initial Product 
 (Sections 1.41 and 1.82) 
 Increlex Drug Product Specifications 
 [*] 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 2 

 Schedule 3 
 (TRADEMARKS) 
  

									
	 TRADEMARK
	  	 COUNTRY
	  	 APPLICATION/
 REGISTRATION
 NO.
	  	 CLASS/GOODS/
 SERVICES
	  	 CURRENT STATUS

	INCRELEX	  	Australia	  	 Application No. 1030597
  
 Registration No. 1030597
	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04 Registered 03/22/05
					
	INCRELEX	  	Brazil	  	Application No. 827079346	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04 Published 12/14/04
					
	INCRELEX	  	China	  	Application No. 4374645	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/22/04
					
	INCRELEX	  	European Union (ECTM)	  	 Application No. 4,124,467
  
 Registration No. 4,124,467
	  	 Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes
  
 Class 10: medical products, devices and apparatus; scientific and laboratory products, devices and
apparatus
  
 Class 42: medical research; product research; research and development for
new products for others; scientific research; chemical research; biological research; genetic research
	  	Filed 11/18/04 Registered 01/26/06
					
	INCRELEX	  	India	  	Application No. 1321206	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04
					
	INCRELEX	  	Korea	  	 Application No.
 40-2004-0052422
  
 Publication No.
 40-2005-0051978
  
 Registration No.
 0638792
	  	Class 5: pharmaceutical preparations for use in treatment of disorders of the endocrine, cardiovascular, renal, skeletal, statural, neural, visual, auditory, immune and metabolic systems;
veterinary preparations for use in treatment of disorders of the endocrine, cardiovascular, renal, skeletal, statural, neural, visual, auditory, immune and metabolic systems; therapeutic preparations for treating symptoms of disorders of the
endocrine, cardiovascular, renal, skeletal, statural, neural, visual, auditory, immune and metabolic systems; pharmaceutical preparations for use as diagnostic reagents for medical laboratory and clinical use	  	Filed 11/19/04 Registered 11/11/05

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 3 

									
	 TRADEMARK
	  	 COUNTRY
	  	 APPLICATION/
 REGISTRATION
 NO.
	  	 CLASS/GOODS/
 SERVICES
	  	 CURRENT STATUS

					
	INCRELEX	  	New Zealand	  	 Application
 No.
721719
  
 Registration
 No. 721719
	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04 Published 12/24/04 Registered 05/19/05
					
	INCRELEX	  	Norway	  	 Application No.
 2004
11585
  
 Registration No.
 229224
	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04 Registered 11/10/05
					
	INCRELEX	  	Russia	  	 Application No. 2004726887
  
 Registration No.
 303966
	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04 Registered 03/30/06
					
	INCRELEX	  	Switzerland	  	 Application No.
 03901/2004
  
 Registration No.
 529.662
	  	Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes	  	Filed 11/19/04 Registered 01/17/05
					
	INCRELEX	  	Taiwan	  	 Application No.
 93053935
  
 Registration No.
 1168388
	  	Class 5: pharmaceutical preparations, namely preparations for use with animals, the human body and environment hygiene; pharmaceutical goods and preparations for medical
purposes	  	Filed 11/19/04 Registered 08/16/05
					
	STAVERSA	  	European Union (ECTM)	  	 Application No.
 4,126,504
  
 Registration No.
 4,126,504
	  	 Class 5: pharmaceutical, veterinary, therapeutic and sanitary preparations; pharmaceutical goods and preparations for medical purposes
  
 Class 10: medical products, devices and apparatus; scientific and laboratory products, devices and
apparatus
  
 Class 42: medical research; product research; research and development for
new products for others; scientific research; chemical research; biological research; genetic research
	  	Filed 11/19/04 Registered 01/26/06

  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 4 

 Schedule 4 
 Target Label 
 (Section 1.86) 
 Increlex Target Label and Target Population 
 [*] 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 5 

 Schedule 5 
 Third Party Countries (and distribution agreements) 
 (Section 2.4) 
 Distribution and Quality Agreement by and between Tercica, Inc. and Biologix FZ Co., dated May 26, 2006 (covering Kingdom of Saudi Arabia, United Arab Emirates,
Oman, Kuwait, Syria, Jordan, Lebanon, Iran, Iraq, Morocco, Algeria, Tunisia, Libya, Egypt, Bahrain, Qatar, Yemen. 
 Distribution and Quality Agreement by
and between Tercica, Inc. and Giddi Pharma Co., Ltd., dated May 7, 2006 (covering Taiwan) 
 Negotiations are ongoing as of the Execution Date by and
between Tercica, Inc. and Medison Pharma Ltd., for a Distribution and Quality Agreement for Israel. 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 6 

 Schedule 6 
 Guidelines for Initial Development Plan 
 (Section 4.3.1) 
 Weekly formulation of IGF-1 : to be detailed in the Initial Development Plan 
 Combination Product : IGF-1 together with Recombinant Human Growth Hormone 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 7 

 Schedule 7 
 Monthly Sales Report Template 
 (Section 5.5.1) 
 Increlex 
 Sales Report as of :
mm/dd/yy 
  

																	
	  	  	 This Year
	  	 Last Year

	  	  	 Current Month
	  	 Year to date
	  	 Current Month
	  	 Year to date

	 Countries
	  	 Volume
(units sold)
	  	 Value
(in Euros)
	  	 Volume
(units sold)
	  	 Value
(in Euros)
	  	 Volume
(units sold)
	  	 Value
(in Euros)
	  	 Volume
(units sold)
	  	Value
(in Euros)
	Country A	  		  		  		  		  		  		  		  	
	Country B	  		  		  		  		  		  		  		  	
	Country C	  		  		  		  		  		  		  		  	
	Country D	  		  		  		  		  		  		  		  	
	.....	  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  	
	Total for Territory.	  		  		  		  		  		  		  		  	

 Note: One template per type of product sold 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 8 
 Supply Price 
 (Section 6.5) 
 EUR [*]/vial 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 9 
 Minimum Quantities per order for Licensed Product 
 (Section 6.6) 
 Minimum Quantities per order for Licensed Product: [*] units total per Quarter (Trilingual or English label) or as detailed in the Initial Development Plan and/or
Commercialization Plan 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 2 

 Schedule 10 
 Form of the 18 Month Rolling Order Forecast 
 (Section 6.7.1) 
  

																																									
	 Country
	  	 Product
 Name
	  	 SKU
Number
	  	 Monthly Sales Forecast over 18
months

	  	  	  	 Month
 1
	  	 Month
 2
	  	 Month
3
	  	 Month
4
	  	 Month
5
	  	 Month
6
	  	 Month
7
	  	 Month
8
	  	 Month
9
	  	 Month
10
	  	 Month
11
	  	 Month
12
	  	 Month
13
	  	 Month
14
	  	 Month
15
	  	 Month
16
	  	 Month
17
	  	 Month
18

		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  		  	

 + Once per year: Annual Forecast over a 4 year horizon 
  

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 11 
 Licensor On-going Development 
 (Section 1.58) 
 [*] 

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 12 
 JSC – Initial Representatives 
 (Section 3.1.1) 
 From Ipsen 
 [*] 
 From Tercica 
 [*] 

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 Schedule 13 
 Joint Patent Committee Members 
 (Section 8.3) 
 Tercica: 
 [*] 
 Ipsen: 
 [*] 

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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