Document:

License Agreement Dated May 31, 2001

 EXHIBIT 10.2 
  
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO A CONFIDENTIAL TREATMENT REQUEST. 
  
 LICENSE AGREEMENT

  
 THIS LICENSE AGREEMENT is made as of the 31st day of May, 2001
by and between BENTLEY PHARMACEUTICALS, INC., a Delaware corporation, with offices at 65 Lafayette Road, 3rd Floor, North Hampton, New Hampshire 03862-2403 (hereinafter, “BENTLEY” or “Licensor”), and AUXILIUM A2, INC., a Delaware
corporation having a principal place of business at 160 W. Germantown Pike, Suite D-5, East Norriton, Pennsylvania 19401 (hereinafter, “AUXILIUM” or” Licensee”). BENTLEY and AUXILIUM may be referred to as a “Party” or,
collectively, as “Parties.” 
  
 RECITALS 
  
 WHEREAS AUXILIUM is engaged in the research, development, manufacture, marketing and sale of
pharmaceutical products; 
  
 WHEREAS BENTLEY is engaged in the development of
pharmaceutical formulations and drug delivery systems and has developed certain formulations which contain a therapeutic drug and drug delivery systems included under BENTLEY Patents and BENTLEY Technology; 
  
 WHEREAS under a Research Services Agreement of even date herewith (the “Research
Agreement”) BENTLEY will prepare and test certain formulations which contain the therapeutic drug dihydrotestosterone and CPE-215 (hereinafter, the “Compound”) under BENTLEY Patents and BENTLEY Technology; 
  
 WHEREAS AUXILIUM wishes to obtain a license under BENTLEY Patents and BENTLEY Technology to
undertake development of products containing the Compound which meet criteria set forth in the Research Agreement for commercialization in the Territory; and 
  
 WHEREAS BENTLEY is willing to grant such a license under certain terms and conditions. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, and INTENDING TO BE LEGALLY BOUND HEREBY, the
Parties agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 The following terms, as used herein, shall have the following meanings: 
  
 “Act” shall mean the United States Federal Food Drug and Cosmetic Act and applicable regulations. 
  
 “Affiliate” means, when used with reference to a Party, any person
directly or indirectly Controlling, Controlled by or under common Control with a Party. 
  
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. 

 “Bankruptcy Event” means the person in question becomes insolvent, or voluntary or involuntary
proceedings by or against such person are instituted in bankruptcy or under any insolvency law, or a receiver or custodian is appointed for such person, or proceedings are instituted by or against such person for corporate reorganization or the
dissolution of such person, which proceedings, if involuntary, shall not have been dismissed within one hundred eighty days after the date or filing, or such person makes an assignment for the benefit of creditors, or substantially all of the assets
of such person are seized or attached and not released within one hundred eighty days thereafter. 
  
 “BENTLEY Know-How” shall mean any and all present and future information and any materials, including, without limitation, formulations,
processes, techniques, formulas, biological, chemical, assay control and manufacturing data, methods, software, equipment designs, know-how, and trade secrets, patentable or otherwise, tangible or intangible, that are owned or controlled by Licensor
that relate to the preparation, purification, characterization, stabilization, processing, and formulation and/or use of a dihydrotestosterone formulation containing CPE-215. 
  
 “BENTLEY Patents” shall mean United States Patent No. 5,023,252 and any and all continuations,
continuations-in-part, additions, divisions, renewals, extensions, re-examinations and reissues thereof and any and all foreign counterparts of the foregoing as set forth in Schedule A hereto and any other Bentley U.S. or foreign patent application
which is filed hereafter and which includes a claim that covers a dihydrotestosterone formulation which contains CPE-215 and/or the preparation and/or use thereof and any U.S. or foreign patent issuing therefrom and any renewal, extension,
re-examination or reissue thereof. 
  
 “BENTLEY
Technology” means BENTLEY Know-How and Improvements. 
  
 “Calendar Quarter” means each three-month period, or any portion thereof, beginning on January 1, April 1, July 1 and October 1. 
  
 “Combination Products” means any and all pharmaceutical compositions which contain: (A) dihydrotestosterone as an active ingredient in
combination with any other products; and (B) the Compound; and which fall within the scope of any composition, method, or article claim of the BENTLEY Patents. 
  

“Compound” is defined above in the Recitals. 
  
 “Confidential Information” means (i) BENTLEY Technology, (ii) any other information or material in tangible form that is confidential or
proprietary to the furnishing Party at the time it is delivered to the receiving Party, (iii) proprietary information of the furnishing party, (iv) information that is furnished orally if the furnishing party identifies such information as
confidential or proprietary when it is disclosed, and (v) patent applications not yet in the public domain. 
  
 “Control”, “Controlling,” and “Controlled by” mean the direct or indirect ownership of over 50% of the outstanding voting
securities of an entity, or the right to receive over 50% of the profits or earnings of a person, or the right to control the policy decisions of a person. 
  

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 “Effective Date” means the date of receipt by BENTLEY of written notice from AUXILIUM pursuant
to Section 5.1 of the Research Agreement that it wishes to proceed with development of Product. 
  
 “Improvement” shall mean any formulations and/or any enhancement or other desirable change to the technical/pharmacological characteristics of
formulations of Product, whether patentable or not, which is useful for commercializing Product developed by BENTLEY during the term of this Agreement which may take the form of, without limitation, new or improved methods of administration,
manufacture, improved shelf life or packaging. 
  
 “IND”
shall mean an Investigational New Drug Exemption application filed under the Act, or comparable filing in any major market in the Territory the approval of which permits clinical investigation of Product in humans. 
  
 “NDA” means a New Drug Application submitted under the Act to
permit commercial sale of Product in the United States or a comparable marketing license in another major market in the Territory. 
  
 “Net Sales Price” means the gross amount charged by Licensee for the sale of a Product, net of returns and credits for rejected goods, and after
deducting (i) trade and quantity discounts actually allowed, (ii) sales, use or value added taxes, the legal obligation of which is on Licensee, and (iii) freight allowances, insurance and customs duties, to the extent any of the foregoing are
identified on the invoice for the product. If a product is sold for consideration other than solely cash, the fair market value of such other consideration shall be included in the Net Sales Price. If a Product is sold in a package or kit containing
another product which is not a Product, the Net Sales price for purposes of calculating the royalty under Section 3.2 hereof shall be calculated by multiplying the Net Sales Price of the combination product by the fraction of A/A+B, where
“A” is the Net Sales Price of Product when sold separately “B” is the Net Sales Price of the other product or products when sold separately. If either the Product or the other product is not sold separately, the Net Sales Price
of the Product shall be negotiated in good faith by the Parties. 
  
 “Person” or “Persons” means any corporation, partnership, joint venture or natural person. 
  
 “Products” means any and all pharmaceutical compositions which contain (A) dihydrotestosterone as the single active drug ingredient; and (B) the
Compound; and which fall within the scope of any composition, method or article claim of the BENTLEY Patents. 
  
 “Sale” or any variation thereof means the sale, assignment, lease or other disposition of a Product by Licensee to a non-Affiliate. A Product
shall be deemed to have been sold for purposes of calculating royalties under Article III hereof upon the first to occur of the following: (i) the transfer of title in the Product from Licensee to a non-Affiliate; or (ii) shipment of the Product
from the manufacturing facilities of Licensee to a non-Affiliate. 
  
 “Territory” shall mean all countries and territories of the world. 
  

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 “Use Patents” shall mean any patent granted in the Territory for the use of the Product in a
specific therapeutic indication. 
  
 ARTICLE II 
 GRANT OF LICENSE 
  
 2.1 Grant of License. Subject to the terms and conditions contained in this Agreement, the Licensor hereby grants to Licensee a sole and exclusive,
worldwide, royalty-bearing license under BENTLEY Patents and BENTLEY Technology with the right to sublicense to make, have made, use and sell Products in the Territory pursuant to the terms and conditions of this License Agreement. In addition,
Licensee shall have the exclusive right to enter into another License Agreement with BENTLEY to acquire rights in BENTLEY Patents and BENTLEY Technology for the development of Combination Products, such right to expire upon the termination of this
Agreement. Licensor and Licensee agree to negotiate the terms of such License Agreement in good faith. 
  
 2.2 Disclosure of BENTLEY Know-How. Promptly following the Effective Date BENTLEY shall make available to Licensee any and all BENTLEY Know How not
disclosed under the Research Agreement to enable Licensee to develop Products. 
  
 ARTICLE III 
 PAYMENTS IN CONSIDERATION FOR LICENSE 
  
 3.1 Payments. In partial consideration for the license rights granted
hereunder, Licensee shall make the following non-refundable payments to Licensor within ten (10) days after the following achievement in the development of the first Product: 
  
 Initial Payment—On the date of execution of this Agreement: $[**], in consideration of for formulation to be provided
by BENTLEY under the Research Agreement. 
  
 Milestone One—On
the Effective Date: $[**]. 
  
 Milestone Two—Three (3) months
after first approval for commercialization in any major market (United States, Germany, France or Japan): $[**]. 
  
 3.2 Royalties. In further consideration for the license rights granted under this Agreement Licensee shall also pay to Licensor the following royalty
amounts on annual Net Sales of Products in those countries in the Territory in which 
  
 (a) there is an enforceable BENTLEY Patent at the time of sale: 
  

			
	 The First $[**] Million of Annual Net Sales
	  	[**]%
	 The Next $[**] Million of Annual Net Sales
	  	[**]%
	 Net Sales over the First $[**] Million of Annual Net Sales
	  	[**]%

  
 (b)
there is no enforceable BENTLEY Patent in the country when there is an enforceable BENTLEY Patent in another country at the time of sale: 
  

			
	 All Annual Net Sales over $[**] Million
                           
	  	[**]%

  

	**	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.

  

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 (c) there is no enforceable BENTLEY Patent in any country at the time of sale:

  
 All Annual Net Sales over $[**]
Million                 [**]% 
  
 3.3 Royalty Payments. Royalties under this Agreement shall be paid within ninety (90) days in the case of no sublicense, and one hundred twenty (120)
days, in the case of royalties received from a sublicensee, following the last day of the Calendar Quarter in which the royalties and other amounts accrue. The last such payment shall be made within ninety (90) days after termination of this
Agreement. Payments shall be deemed paid as of the day on which they are received by Licensor in the manner designated by Section 3.4. Licensor and Licensee agree to negotiate in good faith any future implication on royalties caused by withholding
taxes. 
  
 3.4 Currency, Place of Payment, Interest. 

 
 (a) All dollar amounts referred to in this Agreement
shall be expressed in United States dollars. All payments to the Licensor under this Agreement shall be made in United States dollars, as directed by the Licensor, by wire transfer to the Licensor or in such other manner as the Licensor may
designate from time to time. 
  
 (b) If Licensee
receives revenues from sales of Products in a currency other than United States dollars, royalties shall be converted into United States dollars at a quarterly conversion rate for each foreign currency calculated as the daily average of the noon
buying rate in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank in New York. These exchange rates are published at www.federalreserve.gov/releases/H10/hist. 
  
 (c) Amounts that are not paid when due shall accrue interest
from the due date until paid, at an annual rate equal to the Prime Rate plus 1% as published at www.federalreserve.gov/releases/H15/update under the caption “Bank Prime Loan.” Historical rates are published at
www.federalreserve.gov/releases/H15/data.htm. 
  

	**	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.

  

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 3.5 Records. Licensee will maintain complete and accurate books and records which enable the royalties
payable hereunder to be verified. The records for each Calendar Quarter shall be maintained for three years. Upon reasonable prior notice to Licensee, the Licensor and its accountants shall have access to the books and records of Licensee necessary
to enable Licensor to verify the royalties paid hereunder. Such access shall be available during normal business hours from time to time during the term of this Agreement, and, during the period from expiration or termination of this Agreement until
three years after such date, not more often than once each calendar year. If it is ultimately determined that Licensee has underpaid royalties by 10% or more, Licensee will pay the costs and expenses of the Licensor’s accountant in connection
with its review or audit of the sales records of the Product, together with any interest as provided in Section 3.4 (c) above. 
  
 3.6 Co-Marketing. In the event Licensee enters into a co-marketing or sub-license arrangement with a third-party, the royalty payments due to Licensor
will be calculated using Net Sales of Product of Licensee and Net Sales of Product of Licensee’s co-marketing partner combined. 
  
 ARTICLE IV 
 CERTAIN OBLIGATIONS OF LICENSEE

  
 4.1 Government Approvals. Licensee will be responsible for
obtaining, at its cost and expense, all governmental approvals required for marketing and sale of Products in the Territory. 
  
 4.2 Licensee Efforts. 
  
 (a) Licensee shall use its reasonable best efforts to develop for commercial sale and to market Products in the Territory, and to continue
to market Products as long as commercially viable, all in a manner consistent with sound and reasonable business practices. For purposes of this Agreement reasonable best efforts in the case of Product development in any major market shall mean at
least that diligence required on the part of an NDA applicant in undertaking the development of a drug product to qualify for the maximum patent term extension under the Act. 
  
 (b) Licensee shall notify Licensor within thirty (30) days after the first commercial sale of a Product and
of any formal written notice from the FDA or other equivalent regulatory authority (“Regulator”) in which CPE-215 is the Regulator’s primary focus, apart from the use of CPE-215 in the Licensee’s Product. 
  
 ARTICLE V 
 WARRANTIES AND REPRESENTATIONS 
  
 5.1 Mutual Representations. Each of the Parties hereto represents, warrants and covenants: 
  
 (i) It is a corporation or entity duly organized and validly existing under the laws of the state or other jurisdiction of its incorporation or formation. 
  

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 (ii) The execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite
corporate action. 
  
 (iii) It has the power and authority to execute and deliver
this Agreement and perform its obligations hereunder. 
  
 (iv) The execution,
delivery and performance by such Party of this Agreement does not and will not conflict with or result in breach of the terms and provisions of any other agreement or constitute a default under (a) a loan agreement, guaranty, financing agreement,
affecting a product or other agreement or instrument binding or affecting it or its property; (b) the provisions of its charter or operative documents or bylaws; or (c) any order, writ, injunction or decree of any court or governmental authority
entered against it or by which any of its property is bound. 
  
 (v) The
execution, delivery and performance of this Agreement by such Party does not require the consent, approval or authorization of, or notice, declaration, filing or registration with, any governmental or regulatory authority in the Territory and the
execution, delivery and performance of this Agreement does not violate any law, rule or regulation applicable to such Party. 
  
 (vi) This Agreement has been duly authorized, executed and delivered and constitutes such Party’s legal, valid, and binding obligation enforceable against it in
accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to the availability of particular remedies under general
equity principles. 
  
 (vii) It shall comply with all applicable laws and
regulations relating to its activities under this Agreement. 
  
 (viii) Each
warrants that it is not debarred and has not and will not use in any capacity the services of any person debarred under subsections 306 (a) and (b), of the Generic Drug Enforcement Act of 1992. If at any time during the term of this Agreement this
warranty is no longer accurate, the affected party shall immediately notify the other. 
  
 5.2 BENTLEY Warranties 
  
 (i) BENTLEY Patents.
BENTLEY represents and warrants that: (a) BENTLEY is the owner of all right, title and interest in and to the BENTLEY Technology and BENTLEY Patents; and (b) BENTLEY has not received any written notice that the Technology or Patents infringes the
proprietary rights of any third-party nor is the Licensor in any other way aware of any infringement of third-party proprietary rights; (d) there are no claims, judgments or settlements against or owed by BENTLEY, or pending or threatened claims, or
litigation, relating to BENTLEY Patents. 
  

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 ARTICLE VI 
 INSURANCE 
  
 6.1 Insurance
Requirements for Licensee. Prior to commencing work with Product in human clinical trials under this Agreement and during the entire term of this Agreement and for a period of three (3) years thereafter, AUXILIUM, at its sole expense, shall maintain
in full force and effect with an insurance company or companies having an A. M. Best Rating of “A-: Class VII” or better and supply a Certificate of Insurance to BENTLEY evidencing Product Liability insurance (including coverage for human
clinical trials and contractual liability) coverage in the amount of one million dollars ($1,000,000) per each occurrence and in the general aggregate, respectively, during the clinical trial phase and prior to commercialization of the Products and
three million dollars ($3,000,000) per each occurrence and in the general aggregate, respectively, once the Products are commercialized. Endorsement shall be furnished reflecting the inclusion of BENTLEY, its officers, directors and employees as
additional insured. The policy providing the above insurance shall be endorsed to contain the following undertaking: “It is agreed that this insurance will not be cancelled, materially changed or non-renewed without at least thirty (30) days
notice to BENTLEY, by certified mail-Return Receipt Requested.” Any type of insurance or increase in liability limits not described in the foregoing which AUXILIUM requires for its own protection shall be its own responsibility and at its sole
expense. The minimum insurance amounts specified herein shall not be deemed a limitation on AUXILIUM’S indemnification liability under this Agreement 
  
 6.2 Insurance Requirements for Licensor. Prior to commencing work with Product in human clinical trials under this Agreement and during the entire term of
this Agreement and for a period of three (3) years thereafter, BENTLEY, at its sole expense shall maintain in full force and effect with an insurance company or companies having A. M. Best Rating of an “A-: Class VII” or better and supply
a Certificate of Insurance to AUXILIUM evidencing Product Liability insurance (including coverage for human clinical trials and contractual liability) coverage in the amount of one million dollars ($1,000,000) per each occurrence and in the general
aggregate, respectively, during the clinical trial phase and prior to commercialization of the Products and three million dollars ($3,000,000) per each occurrence and in the general aggregate, respectively, once the Products are commercialized. The
policy providing the above insurance shall be endorsed to contain the following undertaking: “It is agreed that this insurance will not be cancelled, materially changed or non-renewed without at least thirty (30) days notice to AUXILIUM, by
certified mail-”Return Receipt Requested”. Any type of insurance or increase in liability limits not described in the foregoing which BENTLEY requires for its own protection shall be its own responsibility and at its sole expense.

  
 ARTICLE VII 
 INDEMNIFICATION 
  
 7.1 Indemnification by BENTLEY. BENTLEY will indemnify and hold AUXILIUM, its directors, officers, employees and agents harmless against any and all
liability, damage, loss, cost or expense (including reasonable attorney’s fees) resulting from any third party claims made or suits brought against AUXILIUM which arise from an act or failure to act by BENTLEY or BENTLEY’S breach of its
representations, warranties or agreements contained herein. 
  

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 7.2 Indemnification by AUXILIUM. AUXILIUM will indemnify and hold BENTLEY, its directors, officers,
employees and agents harmless against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees) resulting from any third-party claims made or suits brought against BENTLEY which arise from the breach of any of
AUXILIUM’S representations, warranties or agreements contained herein, or which arise out of the development, manufacture, promotion, distribution, use, testing or sale, distribution or other disposition of Product, including, without
limitation, any claims, express, implied or statutory, made as to the efficacy, safety or use to be made of Product, and claims made by reason of any Product labeling or any packaging containing Product. This indemnification obligation shall not
apply where the basis for the claim is the negligence or willful malfeasance of BENTLEY. 
  
 7.3 Limitations on Indemnification Obligations. BENTLEY AND AUXILIUM EACH AGREE THAT IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM A
DEFAULT OR BREACH OF THIS AGREEMENT. 
  
 7.4 Procedures. The
indemnified Party shall notify the indemnifying Party of any claim or action giving rise to a liability within fifteen (l5) days after receipt of knowledge of the claim. If notice is not given within fifteen (15) days, the indemnifying Party shall
maintain its obligation to indemnify unless such failure to timely notify has a material, adverse effect on the outcome of the claim. The indemnifying Party shall control the defense or settlement of the claim. However, the indemnifying Party shall
not settle or compromise any such claim or action in a manner that imposes any restrictions or obligations on the indemnified Party without the indemnified Party’s written consent. The indemnified Party shall cooperate reasonably, assist and
give all necessary authority and reasonably required information. 
  
 ARTICLE VIII 
 INTELLECTUAL PROPERTY 
  
 8.1 Intellectual Property Rights. The inventorship of inventions developed under this Agreement and relating to Products (“Inventions”) shall be
determined in accordance with U.S. Law. Inventions made solely by employees of BENTLEY or owned by BENTLEY (“BENTLEY Inventions”) shall be the exclusive property of BENTLEY. Inventions made solely by employees of AUXILIUM (“AUXILIUM
Inventions”) shall be the exclusive property of AUXILIUM, except that AUXILIUM Inventions that relate to the use of Products shall be the joint property of AUXILIUM and BENTLEY, each with an undivided one-half interest. Inventions other than
BENTLEY Inventions and AUXILIUM Inventions shall belong jointly to BENTLEY and AUXILIUM, each with an undivided one-half interest. 
  

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 ARTICLE IX 
 PATENTS, TRADEMARKS AND INFRINGEMENT 
  
 9.1 Prosecution of Patents. 
  
 (a) The
Licensor shall be solely responsible for preparing, prosecuting and maintaining the BENTLEY Patents. 
  
 (b) Each Party shall cooperate with the other Party to execute all required papers and instruments and to make all required oaths and
declarations as may be necessary in the preparation and prosecution of all such patents and other applications and protections referred to in this Section 9.1. 
  

9.2 Ownership. Subject to Section 4.4, the Licensor shall retain all right, title and interest in and to the BENTLEY Patents and any patents,
copyrights and other protections related thereto, regardless of which party prepares, prosecutes or maintains the patents, copyrights or other protections related to the BENTLEY Technology, subject to the express license granted to Licensee under
this Agreement. 
  
 (a) In the event of Licensor
wishing to abandon any BENTLEY Patents, Licensor will offer to assign to Licensee, free of charge, any such Patent prior to effectuating the abandonment. Licensee will bear the costs connected to any assignment hereunder. In the event that any of
the BENTLEY Patents is assigned to AUXILIUM and AUXILIUM decides thereafter to abandon the assigned Patent, AUXILIUM agrees that, at the request of BENTLEY, it will offer to assign the assigned Patent to a third-party licensee that is licensed by
BENTLY under the assigned Patent as such third-party licensee is identified by BENTLEY to AUXILIUM. 
  
 9.3 Trademarks. Licensee shall have the right, in its sole discretion and at its own expense, to select and register such trademarks as it wishes to
employ in connection with the sale of the Products throughout the Territory and Licensee shall have legal and equitable ownership of the entire right, title and interest in and to the trademarks and registrations Licensee elects to use. Licensee
will acknowledge BENTLEY’S CPE-215 by adding “CPE-215(TM), BENTLEY” to its listing of ingredients wherever such listing is appropriate or used by Licensee. It is hereby expressly agreed that this Section 9.3 shall survive the
expiration or termination of this Agreement. 
  
 9.4 Infringement
of Patents. If either Party has knowledge of any infringement of BENTLEY Patents or BENTLEY Technology, the Party having such knowledge shall promptly inform the other of such infringement. The Parties shall thereafter discuss what action should be
taken, including whether any legal proceeding should be instituted. If the Parties mutually agree on the course of action to be taken in respect of any such infringement, they shall jointly select counsel and equally share any expenses. Any
settlement or recovery shall be shared equally by the Parties. If either party determines to take action, but the other Party does not desire to do so, the first Party may take action at its own expense and through counsel of its own choice, and any
settlement or recovery shall in such case belong solely to the Party taking action. 
  

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 9.5 If one party institutes and carries on a legal proceeding to enforce a BENTLEY Patent against an
alleged infringing party, the other Party shall fully cooperate with and supply all assistance reasonably requested by the Party instituting and carrying or such proceeding. 
  
 ARTICLE X 
 CONFIDENTIALITY 
  
 10.1 Confidentiality 
  
 (a) Licensee and Licensor shall maintain in confidence and
shall not disclose to any third-party the Confidential Information received pursuant to this Agreement, without the prior written consent of the other Party except that the Confidential Information may be disclosed only to those third parties (x)
who have a need to know the information in connection with the exercise of rights and obligations under this Agreement and who agree in writing to keep the information confidential to the same extent as is required of each Party under this Section
10.1, or (y) to whom the Party is legally obligated to disclose the Information. The foregoing obligation shall not apply to: 
  
 (i) information that is known to the other Party or independently developed by the other Party prior to the time of disclosure, in each
case, to the extent evidenced by written records promptly disclosed to the other Party upon receipt of the Confidential Information; or 
  
 (ii) information that becomes patented, published or otherwise part of the public domain as a result of acts by a Party or a third person
obtaining such information lawfully as a matter of right; or 
  
 (iii) information that becomes patented, published or otherwise part of the public domain as a result of acts by the Licensor or a third person obtaining such information lawfully as a matter of right; or 

 
 (iv) information that is required by any law, rule,
regulation, order, decision, decree, or subpoena or other judicial, administrative or legal process to be disclosed, provided, however that each Party, as applicable, gives the other prompt written notice of such request/order to permit the other
party to seek a protective order or other similar order with respect to such Confidential Information and thereafter discloses only the minimum Confidential Information required to be disclosed in order to comply. 
  
 (b) Each Party will take all reasonable steps to protect the
Confidential Information of the other Party with the same degree of care it uses to protect its own confidential proprietary information. Without limiting the foregoing, each party shall ensure that all of its employees having access to the
Confidential Information of the other Party are obligated in writing to keep such information confidential to the same extent as is required of each Party under this Section 10.1. 
  
 10.2 Injunctive Relief. Because damages at law may be an inadequate remedy for breach of any of the covenants, promises and
agreements contained in Section 10.1 hereof, both the Licensor and Licensee shall be entitled to injunctive relief in any state or federal court located within the District of Delaware, including specific performance or an order enjoining the
breaching Party from any 
  

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 threatened or actual breach of such covenants, promises or agreements. Each of the Licensee and the Licensor hereby
waives any objection it may have to the personal jurisdiction or venue of any such court with respect to any such action. The rights set forth in this Section 10.2 shall be in addition to any other rights which the Licensor and Licensee may have at
law or in equity. 
  
 10.3 This Article X shall survive the
expiration or termination of this Agreement. 
  
 ARTICLE XI

 TERM AND TERMINATION 
  
 11.1 Term. This Agreement and the licenses granted herein shall commence on the Effective Date and shall continue in effect in perpetuity subject to
earlier termination under Section 11.2 hereof. 
  
 11.2
Termination by the Licensor or Licensee. 
  
 (a)
Upon the occurrence of any of the events set forth below (“Events of Default”), the Licensor shall have the right to terminate this Agreement by giving written notice of termination, such termination effective with the giving of such
notice: 
  
 (i) In the event of nonpayment of any
material amount payable to the Licensor after completion of an audit provided for under Section 3.5 hereof, which nonpayment is continuing thirty (30) calendar days after the Licensor gives Licensee written notice of such non-payment. 
  
 (ii) In the event that Licensee fails to initiate clinical
trials within two (2) years of availability of final formulation in quantities adequate for clinical testing and associated documentation for clinical trials, unless such failure is outside of the control of Licensee. 
  
 (iii) In the event that Licensee does not submit an
application for marketing approval in a major market within a five (5) year period after the Effective Date unless such failure to submit is outside of the control of Licensee. 
  
 (iv) In the event that Licensee does not launch Product in a major market within six (6) months after
marketing approval. 
  
 (v) In the event that
Licensee becomes subject to a Bankruptcy Event provided, however, that so long as Licensor continues to receive royalty payments from Licensee under this Agreement, such Bankruptcy Event shall not be a basis for termination of this Agreement by
Licensor. 
  
 (b) Upon the occurrence of any of
the events set forth below (“Events of Default”), Licensee shall have the right to terminate this Agreement by giving written notice of termination, such termination effective with the giving of such notice: 
  

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 (i) breach by Licensor of any covenant or any representation or warranty contained in
this Agreement that is continuing thirty (30) calendar days after Licensee gives written notice of such breach; 
  
 (ii) Licensor fails to comply with the terms of the license granted hereunder and such noncompliance is continuing thirty (30) calendar
days after Licensee gives notice of such noncompliance; 
  
 (iii) Licensor becomes subject to a Bankruptcy Event; or 
  
 (iv) the dissolution or cessation of operations by Licensor. 
  
 (d) No exercise by the Licensor or Licensee of any right of termination shall constitute a waiver of any
right of the Licensor or Licensee for recovery of any monies then due to it hereunder or any other right or remedy the Licensor or Licensee may have at law or under this Agreement. 
  
 ARTICLE XII 
 FORCE MAJEURE 
  
 12.1 Either Party shall be relieved of
its obligations under this Agreement to the extent that fulfillment of such obligations shall be prevented by strikes, embargoes, riots, fires, floods, war, hurricanes, windstorms, acts or defaults of common carriers, governmental laws, acts or
regulations, shortages of materials or any other occurrence, whether or not similar to the foregoing, beyond the reasonable control of the Party affected thereby. 
  
 12.2 If either Party is prevented from fulfilling its obligations under this Agreement by reason of a circumstance covered
by this Article 12, the Party unable to fulfil its obligations shall, upon the occurrence of any such circumstances, promptly notify the other Party upon the cessation of such circumstance and of the likely duration thereof, and shall promptly
notify the other party upon the cessation of such circumstance. 
  
 ARTICLE XIII 
 ADDITIONAL PROVISIONS 
  
 13.1 Arbitration. 
  
 (a) All disputes arising between the Licensor and Licensee under this Agreement shall be settled by arbitration conducted in accordance
with the Rules of the American Arbitration Association. The Parties shall cooperate with each other in causing the arbitration to be held in as efficient and expeditious a manner as practicable. 
  
 (b) Licensee and Licensor each irrevocably and
unconditionally consents to the jurisdiction of any such proceeding and waives any objection that it may have to personal jurisdiction or the laying of venue of any such proceeding. 
  

 13 

 13.2 Assignment. No rights hereunder may be assigned by the Licensee, directly or by merger or other
operation of law, except assignment to an Affiliate, without the express written consent of the other Party, such consent not to be unreasonably withheld; provided, however, without such consent, either Party may assign this Agreement in connection
with the sale of all or substantially all of its assets or business or its merger or consolidation with another company. Any prohibited assignment of this Agreement or the rights hereunder shall be null and void. No assignment shall relieve Licensee
or Licensor of responsibility for the performance of any accrued obligations which they have prior to such assignment. This Agreement shall inure to the benefit of permitted assigns. 
  
 13.3 No Waiver. A waiver by either Party of a breach or violation of any provision of this Agreement will not constitute or
be construed as a waiver of any subsequent breach or violation of that provision or as a waiver of any breach or violation of any other provision of this Agreement. 
  
 13.4 Independent Contractor. Nothing herein shall be deemed to establish a relationship of principal and agent between the
Licensor and Licensee, nor any of their agents or employees for any purpose whatsoever. This Agreement shall not be construed as constituting the Licensor and Licensee as partners, or as creating any other form of legal association or arrangement
which could impose liability upon one Party for the act of the other Party. 
  
 13.5 Notices. Any notice under this Agreement shall be sufficiently given if sent in writing by overnight courier, prepaid, first class, certified or registered mail, return receipt requested, addressed as follows:

  
 If to the Licensor, to: 
  
 BENTLEY PHARMACEUTICALS, Inc. 
 65 Lafayette Road, 3rd Floor 
 North Hampton, NH 03862-2403 
 Attention: President 
  
 If to the Licensee, to: 
  
 AUXILIUM A(2), Inc. 
 160 W. Germantown Pike 
 Suite D-5, Norriton Office Center 
 Norristown, PA 19401 
 Attention: President 
 Copy to General Counsel 
  
 or to such other
addresses as may be designated from time to time by notice given in accordance with the terms of this Section. 
  
 13.6 Severability. Any of the provisions of this Agreement which are determined to be invalid or unenforceable in any jurisdiction shall be ineffective to
the extent of such invalidity or unenforceability in such jurisdiction, without rendering invalid or unenforceable the remaining 
  

 14 

 provisions hereof or affecting the validity or unenforceability of any of the terms of this Agreement in any other
jurisdiction. 
  
 13.7 Headings and Titles. Any headings and
titles used in this Agreement are for convenience or reference only and shall not affect its construction or interpretation. 
  
 13.8 No Third Party Benefits. Nothing in this Agreement, express or implied, is intended to confer on any person other than the Parties hereto or their
permitted assigns, any benefits, rights or remedies. 
  
 13.9
Governing Law. This Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the State of Delaware, without giving effect to conflict of law provisions. 
  
 13.10 Counterparts. This Agreement shall become binding when any one or more
counterparts hereof, individually or taken together, shall bear the signatures of each of the parties hereto. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against the party whose
signature appears thereon, but all of which taken together shall constitute but one and the same instrument. 
  
 13.11 Entire Agreement. This Agreement is the entire agreement between the parties regarding the subject matter herein, and supercedes all prior existing
understandings between the Parties relating to the subject matter hereof. This Agreement may not be modified except in writing signed by both Parties. 
  
 13.12 Press Releases. The Parties will not disclose, via any press release or public announcement, the existence of this Agreement or the Research
Agreement until the Effective Date. 
  
 IN WITNESS WHEREOF, the
parties hereto have duly executed this License Agreement as of the date first above written. 
  

									
	 BENTLEY PHARMACEUTICALS, INC.
	 	 	 	 AUXILIUM A(2), Inc.

					
	By:	 	 /s/    JORDAN HORVATH
	 	 	 	By:	 	 /s/    GERALDINE A. HENWOOD

	 	 	 Jordan Horvath
 Vice President & General
Counsel
	 	 	 	 	 	 Geraldine A. Henwood
 Chief Executive
Officer

  

 15 

 SCHEDULE A/APPENDIX A 
 BENTLEY PATENTS 
  

							
	 COUNTRY

	 	 PATENT NO.

	 	 GRANT DATE

	 	 EXPIRATION DATE

	Belgium	 	248,885	 	Aug. 5, 1992	 	Nov. 28, 2006
	Canada	 	1,312,281	 	Jan. 5, 1993	 	Jan. 05, 2010
	Denmark	 	167,343	 	Oct. 18, 1993	 	Nov. 28, 2006
	France	 	248,885	 	Aug. 5, 1992	 	Nov. 28, 2006
	Germany	 	P3,690,626.3	 	May 15, 1997	 	Nov. 28, 2006
	Great Britain	 	2,192,134	 	Apr. 25, 1990	 	Nov. 28, 2006
	Italy	 	248,885	 	Aug. 5, 1992	 	Nov. 28, 2006
	Japan	 	2,583,777	 	Nov. 21, 1996	 	Nov. 28, 2006
	Korea	 	84,759	 	Nov. 29, 1994	 	Nov. 28, 2006
	Luxembourg	 	WO 873,473	 	Nov. 11, 1987	 	Nov. 28, 2006
	Switzerland	 	666,813	 	Aug. 31, 1988	 	Nov. 28, 2006
	United States	 	5,023,252	 	June 11, 1991	 	Jun. 11, 2008

  
 Other patents are filed as provisional
applications or are in the preparation or developmental stages and will be amended, if applicable, to this Agreement. 
  

 16 

	**	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.

  
 AMENDMENT NO. 1 TO LICENSE AGREEMENT

  
 THIS AMENDMENT NO. 1 TO LICENSE AGREEMENT is made as of the
6th day of September, 2002 by and between BENTLEY PHARMACEUTICALS, INC., a Delaware corporation, with offices at 65 Lafayette Road, 3rd Floor, North Hampton, New Hampshire 03862-2403 (hereinafter, “BENTLEY” or “Licensor”), and
AUXILIUM PHARMACEUTICALS, INC. (formerly Auxilium A(2), Inc.), a Delaware corporation having a principal place of business at 160 W. Germantown Pike, Suite D-5, East Norriton, Pennsylvania 19401 (hereinafter, “AUXILIUM” or
“Licensee”). BENTLEY and AUXILIUM may be referred to as a “Party” or, collectively, as “Parties.” 
  
 RECITALS 
  
 WHEREAS the parties have entered into that certain License Agreement, dated May 31, 2001, relating to the grant by BENTLEY to AUXILIUM of a license of
certain technology which relates to formulations which contain the therapeutic drug dihydrotestosterone and CPE-215 (the “License Agreement”); and 
  
 WHEREAS, BENTLEY would like to provide incentives to AUXILIUM to enter into sub-licenses for the Products in territories outside the United States; and

  
 WHEREAS, BENTLEY would like to provide further incentives to
AUXILIUM to extend the commercial life of the Products licensed under the License Agreement; and 
  
 WHEREAS the Parties wish to further amend the License Agreement to change certain sections of the License Agreement; 
  
 NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein, and INTENDING TO BE LEGALLY BOUND HEREBY, the Parties further amend the License Agreement as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 Except as amended below, the terms defined in the License Agreement shall
remain unchanged. Unless otherwise defined in this Amendment, all capitalized terms in this Amendment shall have the meanings ascribed to them in the License Agreement, as amended by the Previous Amendments. 
  
 ARTICLE III 
 PAYMENTS IN CONSIDERATION FOR LICENSE 
  
 3.1 Except as amended below, all payments set forth in Article III of the License Agreement shall remain unchanged. 
  

	**	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.

 3.2 (a) of the License Agreement shall be amended to read as follows: 
  
 (a) there is an enforceable BENTLEY Patent at the time of
sale: 
  

			
	All Annual Net Sales in the United States and Canada	  	[**]% beginning at Product launch and continuing for thirty-six full Calendar months thereafter; and [**]% thereafter
		
	All Annual Net Sales Outside the United States and Canada	  	[**]% plus [**] of all “Product Royalties” (as defined below) paid to Auxilium which exceed [**]%

  
 “Product
Royalties” shall mean all payments received by Auxilium which are based on sales of Products, but shall not include milestone payments related to achievements which are not sales based. 
  
 ARTICLE IV 
 INTELLECTUAL PROPERTY 
  
 4.1 Article VIII of the License Agreement is amended in its entirety to read as follows: 
  
 8.1 Intellectual Property Rights. The inventorship of inventions developed under this Agreement and relating to Products
(“Inventions”) shall be determined in accordance with U.S. Law. Inventions made solely by employees of BENTLEY or owned by BENTLEY (“BENTLEY Inventions”) shall be the exclusive property of BENTLEY. Inventions made solely by
employees of AUXILIUM (“AUXILIUM Inventions”) shall be the exclusive property of AUXILIUM, except that AUXILIUM Inventions that relate to the use of Products shall be owned by BENTLEY and shall be included in the license granted under this
License Agreement and included in the definition of BENTLEY Patents. Inventions made by employees of BENTLEY and employees of AUXILIUM shall also be owned by BENTLEY and shall be included in the license granted under this License Agreement and
included in the definition of BENTLEY Patents. 
  

	**	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST.

  
  

 2 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No. 1 to License Agreement as of
the date first above written. 
  

									
	 BENTLEY PHARMACEUTICALS, INC.
	 	 	 	 AUXILIUM PHARMACEUTICALS, INC.

					
	By:	 	 /s/    JAMES R. MURPHY
	 	 	 	By:	 	 /s/    GERALDINE A. HENWOOD

	 	 	 James R. Murphy
 Chief Executive Officer
	 	 	 	 	 	 Geraldine A. Henwood
 Chief Executive
Officer

  

 3License Agreement Dated June 20, 2003

 Exhibit 10.3 
  
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO A CONFIDENTIAL TREATMENT REQUEST. 
  
 LICENSE AGREEMENT

  
 THIS LICENSE AGREEMENT is made as of the 20th day of June,
2003 by and between Formulation Technologies, L.L.C., a Texas limited liability company, d/b/a PharmaForm with offices at 1006 East Yager Lane, Building D, Suite 101, Austin, Texas 78753 (hereinafter, “Licensor”), and AUXILIUM
PHARMACEUTICALS, INC., a Delaware corporation having a principal place of business at 160 W. Germantown Pike, East Norriton, Pennsylvania 19401 (hereinafter, “AUXILIUM” or” Licensee”). Licensor and Licensee may be referred to as
a “Party” -or, collectively, as “Parties.” 
  
 RECITALS 
  
 WHEREAS Licensee is engaged in the research, development,
manufacture, marketing and sale of pharmaceutical products; 
  
 WHEREAS Licensor
has engaged in the research and development of pharmaceutical formulations and drug delivery systems included under Licensor Patents and Licensor Know-How; 
  
 WHEREAS, Michael A. Repka, Staci L. Repka, and James W. McGinity (the “Inventors”) developed certain intellectual property claimed in the Licensor Patents.

  
 WHEREAS, the Inventors assigned the Licensor Patents to The University of
Mississippi (the “University”) pursuant to that certain Assignment of Patent Rights, executed by and among the Inventors and the University and dated as of August 25, 2002. 
  
 WHEREAS, the University granted to the Inventors a license to the Licensor Patents to make, have made, use and sell products based on the
Licensor Patents in the field of oral mucosal delivery for hormone replacement or urologic disease, including urinary incontinence, with the right to sublicense such rights, pursuant to the terms of that certain License Agreement, executed by and
among the University and the Inventors and dated as of June 10, 2003 (the “University License Agreement”). 
  
 WHEREAS, the Inventors granted to the Licensor a license to the Licensor Patents to make, have made, use and sell products based on the Licensed Patents in the field of
oral mucosal delivery of hormone and incontinence therapy, with the right to sublicense such rights, pursuant to the terms of that certain Sublicense Agreement, executed by and among the Inventors and the Licensor and dated as of June 13, 2003 (the
“Sublicense Agreement”). 
  
 WHEREAS, Licensor and Licensee have entered
into that certain Research and Development Agreement dated as of even date herewith (“Development Agreement”) whereby Licensor will perform research and development services with respect to the use of Licensor Patents in connection with
certain therapeutic areas; 
  
 06/20/2003 
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT
REQUEST. 
  

 1 

 WHEREAS Licensee wishes to license Licensor Patents and Licensor Know-How from Licensor for use in certain therapeutic
areas; 
  
 WHEREAS Licensor is willing to grant such a license under the terms and
conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the premises
and mutual covenants contained herein, and INTENDING TO BE LEGALLY BOUND HEREBY, the Parties agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 The following terms, as used herein, shall have the following meanings: 
  
 “Act” shall mean the United States Federal Food Drug and Cosmetic Act and applicable regulations. 
  
 “Affiliate” means, when used with reference to a Party, any person
directly or indirectly Controlling, Controlled by or under common Control with a Party. 
  
 “Bankruptcy Event” means the person in question becomes insolvent, or voluntary or involuntary proceedings by or against such person are instituted in bankruptcy or under any insolvency law, or a
receiver or custodian is appointed for such person, or proceedings are instituted by or against such person for corporate reorganization or the dissolution of such person, which proceedings, if involuntary, shall not have been dismissed within one
hundred eighty days after the date or filing, or such person makes an assignment for the benefit of creditors, or substantially all of the assets of such person are seized or attached and not released within one hundred eighty days
thereafter. 
  
 “Calendar Quarter” means each
three-month period, or any portion thereof; beginning on January 1, April 1, July 1 and October 1. 
  
 “Confidential Information” means (i) Licensor Know-How, (ii) any other information or material in tangible form that is confidential or
proprietary to the furnishing Party at the time it is delivered to the receiving Party, (iii) proprietary information of the furnishing party, (iv) information that is furnished orally if the furnishing party identifies such information as
confidential or proprietary when it is disclosed, and (v) patent applications not yet in the public domain. 
  
 “Control”, “Controlling,” and “Controlled by” mean the direct or indirect ownership of over 50% of the outstanding voting
securities of an entity, or the right to receive over 50% of the profits or earnings of a person, or the right to control the policy decisions of a person. 
  
 “Effective Date” means the date of this Agreement. 
  
 “Licensor Know-How” shall mean any and all present and future information and any materials, including, without limitation, formulations,
processes, techniques, formulas, biological, chemical, assay control and manufacturing data, methods, software, equipment designs, know-how, and trade secrets, patentable or otherwise, tangible or intangible, that are owned or controlled by Licensor

  
 06/20/2003 
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. 
  

 2 

 that relate to the preparation, purification, characterization, stabilization, processing, and formulation and/or use of
a the Licensor Know-How or Licensor Patents in the Therapeutic Areas. 
  
 “Licensor Patents” shall mean United States Patent No. 6,375,963 and any and all continuations, continuations-in-part, additions, divisions, renewals, extensions, re-examinations and reissues thereof and any and all foreign
counterparts of the foregoing as set forth in Schedule A hereto and any. other Licensor U.S. or foreign patent application which is filed hereafter and which includes a claim that covers the Therapeutic Areas and/or the preparation and/or use
thereof and any U.S. or foreign patent issuing therefrom and any renewal, extension,-re-examination or reissue
thereof. 
  
 “NDA” means a New Drug Application
submitted under the Act to permit commercial sale of Product in the United States or a comparable marketing license in another major market in the Territory. 
  
 “Net Sales Price” means the gross amount charged by Licensee or a sublicensee of Licensee for the sale of a Product, net of returns and credits
for rejected goods, and after deducting (i) armslength trade and quantity discounts negotiated with a third party and actually allowed, (ii) sales, use or value added taxes paid, the legal obligation of which is on Licensee, and (iii) freight
allowances, insurance and customs duties, to the extent any of the foregoing are identified on the invoice for the product. If a Product is sold in a: package or kit containing another product which is not a Product, the Net Sales price for
purposes of calculating the royalty under Section 3.2 hereof shall be calculated by multiplying the Net Sales Price of the combination product by the fraction of A/A+B, where “A” is the Net Sales Price of Product when sold separately
“B” is the Net Sales Price of the other product or products when sold separately. If either the Product or the other product is not sold separately, the Net Sales Price of the Product shall be negotiated in good faith by the Parties.

  
 “Penalty Payment” is defined in Section 6.3.

  
 “Person” or “Persons” means any
corporation, partnership, joint venture or natural person. 
  
 “Products” means any and all pharmaceutical compositions in the Therapeutic Area, alone or in combination with other pharmaceutical compositions or compounds which fall within the scope of any composition, method or article claim
of the Licensor Patents. 
  
 “Sale” or any variation
thereof means the sale, assignment or other disposition of a Product by Licensee to a non-Affiliate in exchange for payment to Licensee or an obligation to pay Licensee. 
  
 “Sublicense Agreement” is defined in the Recitals. 
  
 “Territory” shall mean all countries and territories of the world. 
  
 “Therapeutic Areas” shall mean the areas of hormone replacement and
urologic disease, including urinary incontinence. 
  
 “University License Agreement” is defined in the Recitals. 
  
 06/20/2003 
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. 
  

 3 

 ARTICLE II 
 GRANT OF LICENSE 
  
 2.1 Grant of License.
Subject to the terms and conditions contained in this Agreement, the Licensor hereby grants to Licensee a sole and exclusive, worldwide, royalty-bearing license in the Therapeutic Areas under Licensor Patents and Licensor Know-How with the right to
make, have made, use and sell Products and to sublicense as more specifically set forth in Article IV below, all in the Territory and pursuant to the terms and conditions of this License Agreement. 
  
 2.2 Disclosure of Licensor Know How. Promptly following the Effective Date Licensor
shall make available to Licensee any and all Licensor Know-How in the Therapeutic Areas not disclosed under the Development Agreement to enable Licensee to develop Products. 
  
 2.3 Right of First Refusal. Licensor hereby also grants to Licensee the right of first refusal to license Licensor Patents and
Licensor Know-How in other therapeutic areas. In the event that Licensor has a bona fide offer from a third-party, as reflected in a term sheet, letter of intent or similar document signed by Licensor and the third-party, for a License of Licensor
Patents and/or Licensor Know-How in connection with areas not included in the Therapeutic Areas (“Bona-fide Term Sheet”), Licensor shall deliver the Bona-fide Terra Sheet to Licensee; provided, however, Licensee shall keep
such Bona-fide Term Sheet confidential, not to disclose it to any third-party,. and use it only for purposes of evaluating a transaction with Licensor. Licensee shall then notify Licensor whether it intends to exercise its right to license the
Licensor Patents and Licensor KnowHow in the area covered by the Bona-fide Term Sheet within 30 days after the date that the Bonafide Term Sheet has been received by Licensee. If Licensee notifies Licensor that it chooses not to exercise its right
to license the Licensor Patents and Licensor Know-How in such area or does not respond 10 days after receipt of the Bona-fide Term Sheet, Licensor will be free to consummate a license with the third-party on substantially the same terms identified
in the Bona-Fide Term Sheet. If and when Licensee elects not to license technology pursuant to this paragraph, to the extent necessary to satisfy any third-party licensee, Licensee will execute a written release of this right of first refusal.

  
 ARTICLE III 
 PAYMENTS IN CONSIDERATION FOR LICENSE 
  
 3.1 Royalties. In consideration for the license rights granted under this Agreement Licensee shall pay to Licensor a royalty in the amount of [**]%
on annual Net Sales of Products in those countries in the Territory in which there is an enforceable Licensor Patent at the time of sale. In the event of a sublicense of the Licensor Products and/or Licensor Know How under this Agreement, Licensee
shall continue to have the same royalty obligations to Licensor that it otherwise would have had under this Agreement regardless of whether Licensee receives royalty payments from the sublicensee. 
  
 3.2 Royalty Payments. Royalties under this Agreement shall be paid within sixty (60)
days in the case of no sublicense, and ninety (90) days, in the case of royalties received from a sublicensee, following the last day of the Calendar Quarter in which the royalties and other amounts accrue. The last such payment shall be made
within sixty (60) days after termination of this Agreement. Payments shall be deemed paid as of the day on which they are received by Licensor in the manner designated by Section 3.3. 
  
 06/20/2003 
 ** CERTAIN INFORMATION IN THIS
EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. 
  

 4 

 3.3 Currency. Place of Payment. Interest. 
  
 (a) All dollar amounts referred to in this Agreement shall be expressed in United States dollars. All payments to the
Licensor under this Agreement shall be made in United States dollars, as directed by the Licensor, by wire transfer to the Licensor or in such other manner as the Licensor may designate from time to time. 
  
 (b) If Licensee receives revenues from sales of Products in -a currency other
than United States dollars, royalties shall be converted into United States dollars at a quarterly conversion rate for each foreign currency calculated as the daily average of the noon buying rate in New York City for cable transfers in foreign
currencies as certified for customs purposes by the Federal Reserve Bank in New York. These exchange rates are published at www.federalreserve.gov/releases/H10/hist. 
  
 (c) Amounts that are not paid when due shall accrue interest from the due date until paid, at an annual rate equal to the
Prime Rate plus 1% as published at www.federalreserve.gov/releases/H15/update under the caption “Bank Prime Loan.” Historical rates are published at www.federalreserve.gov/releases/H15/data.htm. 
  
 ARTICLE IV 
 CONDITIONS TO SUBLICENSING 
  
 4.1 Licensee shall have the right to sublicense the rights and licenses granted herein within the Therapeutic Areas. No sublicense granted by Licensee shall be in conflict with the terms and conditions of this Agreement. No sublicense shall
relieve Licensee of any of Licensee’s obligations under this Agreement. 
  
 4.2 At the time of granting any sublicense, Licensee shall provide Licensor notice of the consummation of a written agreement with the sublicensee. 
  
 4.3 In the event the rights and licenses granted herein are terminated by mutual agreement of the parties or by Licensee, Licensee immediately shall assign to Licensor
any and all sublicenses. Licensee shall include a provision in any sublicense granted by Licensee to the effect that, upon any such termination, the sublicense will be assigned to Licensor and the sublicense immediately shall begin paying royalties
to Licensor upon notice to such sublicensees from Licensor. 
  
 ARTICLE V 
 LICENSOR’S AUDIT RIGHTS 
  
 5.1 Upon first sale, lease or other disposition for consideration of Product(s) by either Licensee or any sublicensee (whichever shall occur first), Licensee shall
promptly provide Licensor with 
  
 06/20/2003 
 ** CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND WILL BE FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIAL TREATMENT
REQUEST. 
  

 5 

 written notice thereof. To enable Licensor to verify royalty amounts due it pursuant to this Agreement, thereafter,
Licensee shall render to Licensor, with each royalty payment hereunder, a written report substantially in the form of the report attached to this Agreement as Exhibit A. All such reports shall be certified by a knowledgeable officer of Licensee to
be correct to the best of such officer’s knowledge and information. 
  
 5.2 Licensee shall keep and maintain records in accordance with generally accepted accounting principles sufficient to enable Licensor to verify the monies payable to Licensor by Licensee under the terms of this
Agreement. Licensee shall make such records available to Licensor and/or individuals authorized by Licensor with reasonable notice at any reasonable time during normal business hours to the extent necessary for Licensor to inspect the records and
verify the payments due under the terms of this Agreement, but no more than once during any calendar year. 
  
 5.2.1 In the event such examination discloses a deficiency in the monies paid to Licensor in excess of ten percent (10%), Licensor shall
send Licensee a notice specifying the amount of the deficiency and supporting documentation. Licensee shall have thirty (30) days to examine the notice. If Licensee agrees with the amount of the deficiency, Licensee immediately shall pay to Licensor
such deficiency, as provided in Section 3.3 of this Agreement, and, in addition, shall reimburse Licensor for the reasonable cost of such examination. If Licensee disagrees with the calculation of any deficiency by Licensor, it’ shall notify
Licensor in writing within thirty (30) days of receipt of the notice from Licensor, and set forth the basis for such disagreement. If Licensor and Licensee are unable to agree on the amount of any deficiency within thirty (30) days, the amount of
the deficiency will be determined by an independent accounting firm selected by Licensor from a list of three (3) nationally recognized independent accounting firms selected by Licensee. The determination of such accounting firm shall be final and
binding on the parties. If the accounting firm determines the deficiency exceeds ten percent (10%), Licensee immediately shall pay to Licensor the amount of such deficiency, together with interest thereon as provided in Section 3.3(c), and shall
reimburse Licensor for the reasonable costs of such examination, including the fees of the accounting firm. If the deficiency is less than ten percent (10%), Licensor shall pay the fees of such accounting firm. 
  
 ARTICLE VI 
 CERTAIN OBLIGATIONS OF LICENSEE AND LICENSOR 
  
 6.1 Government Approvals. Licensee will be responsible for obtaining, at its cost and expense, all governmental approvals required for marketing and sale of Products in the Territory. 
  
 6.2 Licensee Efforts. Licensee shall use its reasonable best efforts to develop for
commercial sale and to market Products in the Territory, and to continue to market Products as long as commercially viable, all in a manner consistent with sound and reasonable business practices. For purposes of this Agreement reasonable best
efforts in the case of Product development in any major market shall mean at least that diligence required on the part of an NDA applicant in undertaking the development of a drug product to qualify fo the maximum patent term extension under the
Act. 
  
 06/20/2003 
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 6 

 6.3 Penalty Payments. In the event that either the University License Agreement or the Sublicense Agreement are
terminated during the term of this Agreement, Licensor shall pay to Licensee one half of all direct expenses and costs Licensee has incurred on the research and development of the compounds, technology or Products pursued under this Agreement which
exceed the cumulative gross profit earned by Licensee on such Products as of the date of termination of such agreement. 
  
 ARTICLE VII 
 WARRANTIES AND REPRESENTATIONS

  
 7.1. Mutual Representations. Each of the Parties hereto represents,
warrants and covenants: 
  
 (i) It is a corporation or entity duly organized and
validly existing under the laws of the state or other jurisdiction of its incorporation or formation. 
  
 (ii) The execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite corporate or entity action. 
  
 (iii) It has the power and authority to execute and deliver this Agreement and perform its obligations hereunder. 
  
 (iv) The execution, delivery and performance by such Party of this Agreement does not and
will not conflict with or result in breach of the terms and provisions of any other agreement or constitute a default under (a) a loan agreement, guaranty, financing agreement, affecting a product or other agreement or instrument binding or
affecting it or its property; (b) the provisions of its charter or operative documents or bylaws; or (c) any order, writ, injunction or decree of any court or governmental authority entered against it or by which any of its property is bound.

  
 (v) The execution, delivery and performance of this Agreement by such Party
does not require the consent, approval or authorization of, or notice, declaration, filing or registration with, any governmental or regulatory authority in the Territory and the execution, delivery and performance of this Agreement does not violate
any law, rule or regulation applicable to such Party. 
  
 (vi) This Agreement has
been duly authorized, executed and delivered and constitutes such Party’s legal, valid, and binding obligation enforceable against it in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting creditors’ rights and to the availability of particular remedies under general equity principles. 
  
 (vii) It shall comply with all applicable laws and regulations relating to its activities under this Agreement. 
  
 (viii) It is not debarred and has not and will not use in any capacity the services of any
person debarred under subsections 306 (a) and (b), of the Generic Drug Enforcement Act of 1992. If at any time during the term of this Agreement this warranty is no longer accurate, the affected party shall immediately notify the other. 

 
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 7.2 Licensor Representations and Warranties 
  
 (i) Licensor Patents. Licensor represents and warrants that: (a) Licensor is the owner, assignee and/or licensee of all right, title
and interest in and to the Licensor Know-How and Licensor Patents in the Therapeutic Areas; and (b) Licensor has not received any written notice that the Licensor Know-How or Licensor Patents infringes the proprietary rights of any third-party nor
is the Licensor aware of any infringement of third-party proprietary rights; (d) there are no claims, judgments or settlements against or owed by Licensor, or pending or threatened claims, or litigation; relating to Licensor Patents. 
  
 (ii) University License Agreement. Licensor represents and warrants that it has no
knowledge or belief, direct or indirect, that either the University or the Inventors has any plan or intention to terminate the University License Agreement and agrees to immediately notify Licensee in the event that it becomes aware of any such
plan or intention. Licensor further agrees to take all reasonable steps to prevent termination of the University License Agreement. Licensor acknowledges that if either such party does terminate the University License Agreement during the term of
this Agreement then Licensor will be subject to the Penalty Payment, as set forth in Section 6.3 of this Agreement. 
  
 (iii) Sublicense Agreement. Licensor represents and warrants that it has no knowledge or belief, direct or indirect, that either the Inventors or the
Licensor has any plan or intention to terminate the Sublicense Agreement and agrees to immediately notify Licensee in the event that it becomes aware of any such plan or intention. Licensor further agrees to take all reasonable steps to
prevent termination of the Sublicense Agreement. Licensor acknowledges that if either such party does terminate the Sublicense Agreement during the term of this Agreement then Licensor will be subject to the Penalty Payment, as set forth in Section
6.3 of this Agreement. 
  
 ARTICLE VIII 
 INDEMNIFICATION 
  
 8.1 Indemnification by Licensor. Licensor will indemnify and hold Auxilium, its directors, officers, employees and agents harmless against any and all liability, damage, loss, cost or expense (including
reasonable attorney’s fees) resulting from any third-party claims made or suits brought against Auxilium which arise from an act or failure to act by Licensor or Licensor’s breach of its representations, warranties or agreements contained
herein. 
  
 8.2 Indemnification by Auxilium. Auxilium will indemnify and
hold Licensor, its directors, officers, employees and agents harmless against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees) resulting from any third-party claims made or suits brought against
Licensor which arise from the breach of any of Auxilium’s representations, warranties or agreements contained herein, or which arise out of the development, manufacture, promotion, distribution, use, testing, sale or other disposition of
Product, including, without limitation, any claims, express, implied or statutory, made as to the efficacy, safety or use to be made of Product, and claims made by reason of any Product labeling or any packaging containing Product. This
indemnification obligation shall not apply where the basis for the claim is the negligence or willful malfeasance of Licensor. 
  
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 8.3 Limitations on Indemnification Obligations. LICENSOR AND AUXILIUM EACH AGREE THAT IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM A DEFAULT OR BREACH OF THIS AGREEMENT. 
  
 8.4. Procedures. The indemnified Party shall notify the indemnifying Party of any claim or action giving rise to a liability within fifteen (15) days after receipt
of knowledge of the claim. If notice is not given within fifteen (15) days, the indemnifying Party shall maintain its obligation to indemnify unless such failure to timely notify has a material, adverse effect on the outcome of the claim. The
indemnifying Party shall control the defense or settlement of the claim. However, the indemnifying Party shall not settle or compromise any such claim or action in a manner that imposes any restrictions or obligations on the indemnified Party
without the indemnified Party’s written consent. The indemnified Party shall cooperate reasonably, assist and give all necessary authority and reasonably required information. 
  
 ARTICLE IX 
 INTELLECTUAL PROPERTY 
  
 9.1 Inventions. Inventions developed by
Licensee under this Agreement (“Inventions”) shall be the exclusive property of Auxilium, but shall be disclosed to Licensor. 
  
 ARTICLE X 
 PATENTS, TRADEMARKS AND INFRINGEMENT

  
 10.1 Prosecution of Patents. 
  
 (a) The Licensor shall be solely responsible for preparing, prosecuting and
maintaining the Licensor Patents. 
  
 (b) Each Party shall
cooperate with the other Party to execute all required papers and instruments and to make all required oaths and declarations as may be necessary in the preparation and prosecution of all such patents and other applications and protections referred
to in this Section 10.1. 
  
 10.2 Ownership. The Licensor shall retain all
right, title and interest in and to the Licensor Patents and any patents, copyrights and other protections related thereto, regardless of which party prepares, prosecutes or maintains the patents, copyrights or other protections related to
the Licensor Technology, subject to the express license granted to Licensee under this Agreement. 
  
 (a) In the event of Licensor, University or Inventors wishing to abandon any Licensor Patents, Licensor will offer to assign to Licensee, free of charge,
any such Patent prior to effectuating the abandonment. Licensee will bear the costs connected to any assignment hereunder. 
  
 10.3 Trademarks. Licensee shall have the right, in its sole discretion and at its own expense, to select and register such trademarks as it wishes to employ in
connection with the sale of the 
  
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 Products throughout the Territory and Licensee shall have legal and equitable ownership of the entire right, title and
interest in and to the trademarks and registrations Licensee elects to use. 
  
 10.4 Infringement of Patents. If either Party has knowledge of any infringement of Licensor Patents or Licensor Technology, the Party having such knowledge shall promptly inform the other of such infringement. The Parties shall
thereafter discuss what action should be taken, including whether any legal proceeding should be instituted. If the Parties mutually agree on the course of action to be taken in respect of any such infringement, they shall jointly select counsel and
equally share any expenses. Any settlement or recovery shall bee shared in the following manner: First, each party shall be reimbursed for all attorneys’ fees and expenses associated with the legal proceedings, on a pro rata basis, if the
attorneys’ fees exceed the amount of the settlement or recovery; Second, 90% of remaining amounts shall be distributed to Licensee and 10% of the remaining amounts shall be distributed to Licensor. If either party determines to take action, but
the other Party does not desire to do so, the first Party may take action at its own expense and through counsel of its own choice, and any settlement or recovery shall in such case belong solely to the Party taking action. 
  
 10.5 If one party institutes and carries on a legal proceeding to enforce a Licensor Patent
against an alleged infringing party, the other Party shall fully cooperate with and supply all assistance reasonably requested by the Party instituting and carrying or such proceeding. 
  
 ARTICLE XI 
 CONFIDENTIALITY 
  
 11.1 Confidentiality 
  
 (a) Licensee and Licensor shall maintain in confidence and shall not disclose
to any third-party the Confidential Information received pursuant to this Agreement, without the prior written consent of the other Party except that the Confidential Information may be disclosed only to those third-parties (x) who have a need to
know the information in connection with the exercise of rights and obligations under this Agreement and who agree in writing to keep the information confidential to the same extent as is required of each Party under this Section 11.1, or (y) to whom
the Party is legally obligated to disclose the Information. The foregoing obligation shall not apply to: 
  
 (i) information that is known to the other Party or independently developed by the other Party prior to the time of disclosure, in each case, to the
extent evidenced by written records promptly disclosed to the other Party upon receipt of the Confidential Information; or 
  
 (ii) information that becomes patented, published or otherwise part of the public domain as a result of acts by a Party or a third person obtaining such
information lawfully as a matter of right; or 
  
 (iii)
information that becomes patented, published or otherwise part of the public domain as a result of acts by the Licensor or a third person obtaining such information lawfully as a matter of right; or 
  
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 (iv) information that is required by any law, rule, regulation, order, decision, decree, or subpoena or
other judicial, administrative or legal process to be disclosed, provided, however that each Party, as applicable, gives the other prompt written notice of such request/order to permit the other party to seek a protective order or other similar
order with respect to such Confidential Information and thereafter discloses only the minimum Confidential Information required to be disclosed in order to comply. 
  
 (b) Each Party will take all reasonable steps to protect the Confidential Information of the other Party with the same
degree of care it uses to protect its own confidential proprietary information. Without limiting the foregoing, each party shall ensure that all of its employees having access to the Confidential Information of the other Party are obligated in
writing to keep such information confidential to the same extent as is required of each Party under this Section. 
  
 11.2 Injunctive Relief. Because damages at law may be an inadequate remedy for breach of any of the covenants, promises and agreements contained in Section 11.1
hereof both the Licensor and Licensee shall be entitled to injunctive relief in any state or federal court located within the District of Delaware, including specific performance or an order enjoining the breaching Party from any threatened or
actual breach of such covenants, promises or agreements. Each of the Licensee and the Licensor hereby waives any objection it may have to the personal jurisdiction or venue of any such court with respect to any such action. The rights set forth in
this Section 11.2 shall be in addition to any other rights which the Licensor and Licensee may have at law or in equity. 
  
 11.3 This Article XI shall survive the expiration or termination of this Agreement. 
  
 ARTICLE XII 
 PUBLICATION 
  
 12.1 Licensor and its employees shall be free to publish
and/or make presentations of the results of any past or future research not funded by, paid for or performed on behalf of Licensee or related to the Therapeutic Areas and/or to file grant applications at any time relating to Licensor Know-How and
Licensor Patents; provided, however, that Licensor shall give Licensee a copy of any publication, presentation or grant application that it proposes to make at least sixty (60) days prior to publication and presentation, and shall
allow Licensee: an opportunity to comment on the contents thereof. Licensor shall further delay publication or
presentation of such materials for an additional sixty (60) days to allow the parties to apply for patents on any inventions. 
  
 ARTICLE XIII 
 TERM AND TERMINATION 

 
 13.1 Term. This Agreement and the licenses granted herein shall commence on the
Effective Date and shall continue in effect in perpetuity subject to earlier termination under Section 13.2 hereof. 
  
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 13.2 Termination by the Licensor or Licensee. 
  
 (a) Upon the occurrence of any of the events set forth below (“Events of Default”), the Licensor shall have the
right to terminate Licensee rights under this Agreement with respect to the specific Product at issue only by giving written notice of termination, such termination effective with the giving of such notice: 
  
 (i) In the event of nonpayment of any amount payable to the Licensor after
completion of an audit provided for under this Agreement, which nonpayment is continuing thirty (30) calendar days after the Licensor gives Licensee written notice of a binding decision pursuant to Section 5.2.1 of this Agreement. 
  
 (ii) In the event that Licensee fails to initiate clinical trials within two
(2) years of availability of final formulation of a Product in quantities adequate for clinical testing and associated documentation for clinical trials, unless such failure is outside of the control of Licensee. 
  
 (iii) In the event that Licensee does not launch Product in a major
market within six (6) months after marketing approval. 
  
 (iv) In
the event that Licensee becomes subject to a Bankruptcy Event; provided, however, that so long as Licensor continues to receive all royalty payments from Licensee under this Agreement, such Bankruptcy Event shall not, in and of itself, be a basis
for termination of this Agreement by Licensor. 
  
 (b) Upon the
occurrence of any of the events set forth below (“Events of Default”), Licensee shall have the right to terminate this Agreement by giving written notice of termination, such termination effective with the giving of such notice:

  
 (i) breach by Licensor of any covenant or any representation
or warranty contained in this Agreement that is continuing thirty (30) calendar days after Licensee gives written notice of such breach; 
  
 (ii) Licensor fails to comply with the terms of the license granted hereunder and such noncompliance is continuing thirty (30) calendar days after
Licensee gives notice of such noncompliance; 
  
 (iii) Licensor
becomes subject to a Bankruptcy Event, or 
  
 (iv) the dissolution
or cessation of operations by Licensor 
  
 (d) No exercise by the
Licensor or Licensee of any right of termination shall constitute a 
  
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 waiver of any right of the Licensor or Licensee for recovery of any monies then due to it hereunder or any other right or
remedy the Licensor or Licensee may have at law or under this Agreement. 
  
 ARTICLE XIV 
 FORCE MAJEURE 
  
 14.1 Either Party shall be relieved of its obligations under this Agreement to the extent that fulfillment of such obligations shall be prevented by strikes, embargoes,
riots, fires, floods, war, hurricanes, windstorms, acts or defaults of common carriers, governmental laws, acts or regulations, shortages of materials or any other occurrence, whether or not similar to the foregoing, beyond the reasonable control of
the Party affected thereby. 
  
 14.2 If either Party is prevented from fulfilling
its obligations under this Agreement by reason of a circumstance covered by this Article XIV, the Party unable to fulfil its obligations shall, upon the occurrence of any such circumstances, promptly notify the other Party upon the. cessation of
such circumstance and of the likely duration thereof;- and shall promptly notify the other party upon the cessation of such circumstance. 
  
 ARTICLE XV 
 ADDITIONAL PROVISIONS 

 
 15.1 Arbitration. 
  
 (a) All disputes arising between the Licensor and Licensee under this Agreement shall be settled by arbitration conducted in
accordance with the Rules of the American Arbitration Association. The Parties shall cooperate with each other in causing the arbitration to be held in as efficient and expeditious a manner as practicable. 
  
 (b) Licensee and Licensor each irrevocably and unconditionally consents to
the jurisdiction of any such proceeding and waives any objection that it may have to personal jurisdiction or the laying of venue of any such proceeding. 
  
 15.2 Assignment. No rights hereunder may be assigned by the Licensee, directly or by merger or other operation of law, except assignment to an Affiliate, without
the express written consent of the other Party, such consent not to be unreasonably withheld; provided, however, without such consent, either Party may assign this Agreement in connection with the sale of all or substantially all of its assets or
business or its merger or consolidation with another company. Any prohibited assignment of this Agreement or the rights hereunder shall be null and void. No assignment shall relieve Licensee or Licensor of responsibility for the performance of any
accrued obligations which they have prior to such assignment. This Agreement shall inure to the benefit of permitted assigns. 
  
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 15.3 No Waiver. A waiver by either Party of a breach or violation of any provision of this Agreement will not
constitute or be construed as a waiver of any subsequent breach or violation of that provision or as a waiver of any breach or violation of any other provision of this Agreement. 
  
 15.4 Independent contractor. Nothing herein shall be deemed to establish a relationship of principal and agent between the Licensor
and Licensee, nor any of their agents or employees for any purpose whatsoever. This Agreement shall not be construed as constituting the Licensor and Licensee as partners, or as creating any other form of legal association or arrangement which could
impose liability upon one Party for the act of the other Party. 
  
 15.5
Notices. Any notice under this Agreement shall be sufficiently given if sent in writing by overnight courier, prepaid, first class, certified or registered mail, return receipt requested, addressed as follows: 
  
 If to the Licensor, to: 
  
 FORMULATION TECHNOLOGIES, L.L.C., d/b/a PharmaForm 
 1006 East Yager Lane 
 Building D, Suite 101 
 Austin, Texas 78753 
  
 Attention: Bill Williams or Jim McGinity 
  
 If to the Licensee, to: 
  
 AUXILIUM PHARMACEUTICALS, INC. 
 160 W. Germantown Pike 
 Norristown, PA 19401 
  
 Attention: President 
 Copy to: General Counsel 
  
 or to such other addresses as may be designated from time to time by notice given in accordance with the terms of this Section. 

 
 15.6 Severability. Any of the provisions of this Agreement which are determined to
be invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability in such jurisdiction, without rendering invalid or unenforceable the remaining provisions hereof or affecting the validity or
unenforceability of any of the terms of this Agreement in any other jurisdiction. 
  
 15.7 Headings and Titles. Any headings and titles used in this Agreement are for convenience or reference only and shall not affect its construction or interpretation. 
  
 15.8 No Third Party Benefits. Nothing in this Agreement, express or implied, is intended to confer on any person other than the
Parties hereto or their permitted assigns, any benefits, rights or 
  
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 remedies. 
  
 15.9 Governing Law. This Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the State of Delaware, without giving
effect to conflict of law provisions. 
  
 15.10 Counterparts. This
Agreement shall become binding when any one or more counterparts hereof, individually or taken together, shall bear the signatures of each of the parties hereto. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original as against the party whose signature appears thereon, but all of which taken together shall constitute but one and the same instrument. 
  
 15.11 Entire Agreement. This Agreement is the entire agreement between the parties regarding the subject matter herein, and supercedes all prior existing
understandings between the Parties relating to the subject matter hereof. This Agreement may not be modified except in writing signed by both Parties. 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed this License Agreement as of the date first above written. 
  

									
	 FORMULATION TECHNOLOGIES, L.L.C.
	 	 	 	 AUXILIUM PHARMACEUTICALS, INC.

	 d/b/a PharmaForm
	 	 	 	 
					
	By:	 	 /s/    Robert O. Williams,
III        

	 	 	 	By:	 	 /s/    Geraldine A.
Henwood        

	 	 	Robert O. Williams, III	 	 	 	 	 	Geraldine A. Henwood
	 	 	Vice President	 	 	 	 	 	Chief Executive Officer

  
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