Document:

exv10w67

 

Exhibit 10.67

Execution Version

Confidential

AMENDMENT TO COLLABORATION AND LICENSE AGREEMENT

     This Amendment to Collaboration and License Agreement (the “Amendment”), effective as
of November 27, 2006, 5 p.m. Eastern Standard Time (the “Amendment Effective Date”), is
made by and between Cytokinetics, Inc., a Delaware corporation (“CK”) and Glaxo Group
Limited, a United Kingdom corporation (“GSK”) (each a “Party;” together the
“Parties”).

BACKGROUND

     A. CK and GSK have entered into that certain Collaboration and License Agreement by and
between the Parties dated June 20, 2001, as amended (the “Agreement”); and

     B. The Parties wish to further amend the Agreement in order to modify the rights and
obligations of the Parties under the Agreement, all on the terms and conditions set forth below.

     NOW, THEREFORE, for and in consideration of the covenants, conditions and undertakings
hereinafter set forth, the Parties agree to amend the Agreement as follows:

     1. Definitions. As used in this Amendment, the following terms shall have the
indicated meanings:

          (a) Terms from the Agreement. All capitalized terms not defined herein shall have the
meaning ascribed to them in the Agreement, except to the extent otherwise expressly set forth in
this Amendment.

          (b) “Additional Indication” shall mean any indication, dosing schedule or combination
regimen for a KSP Product that is determined from or evaluated in connection with the conduct of
the CK Clinical Studies, other than an Enhanced Indication.

          (c) “Assigned Patents” shall mean all Patents (including GSK and its Affiliates’
interest in jointly owned Patents) that claim any CK Target, CK Compound and/or CK Product
(including any target, compound and/or product that was a Collaboration Target, Development
Compound or Licensed Product prior to the Amendment Effective Date) or that claim the development,
composition, making, use or any portion thereof, in each case to the extent that the claimed
subject matter of which was conceived or created by or under authority of GSK or any of its
Affiliates; and all related documentation. Without limiting the foregoing, the Assigned Patents
include, to the extent claiming the subject matter described in the previous sentence: (i) all
Patents related to KSP, any Compound inhibiting KSP, or any KSP Product (including SB-992 or
SB-921), and (ii) all Patents which claim subject matter that is or was (A) identified as
reasonably necessary for the discovery, development, manufacture, use or sale of any CK Compound,
CK Target or CK Product (including any compound, target or product that was a Compound, Development
Compound, Collaboration Target, or Licensed Product prior to the Amendment Effective Date), (B)
used or applied by or under authority of GSK or its Affiliate at least in part to any CK Compound,
CK Product or CK Target, each as contemplated in Section 1.32 of the Agreement, or (iii) within the
scope of Section 1.13 or 1.53 of the Agreement. The

 

 

Assigned Patents existing as of the Amendment Effective Date include those Patents set forth
in Appendix IV attached hereto and incorporated herein. Notwithstanding the foregoing,
Assigned Patents shall not include any Patents that claim CENP-E or any Compound, Development
Compound or Licensed Product being developed by GSK that inhibits CENP-E, including, without
limitation, GSK’s Development Compound, GSK-923295.

          (d) “CK Clinical Studies” shall mean clinical studies for a KSP Product conducted by
or on behalf of CK, including such non-clinical studies as CK determines are [***] to support such
clinical studies.

          (e) “Enhanced Indication” shall mean any indication, dosing schedule or combination
regimen for a KSP Product that (i) was evaluated in a Phase [***] trial conducted by or on behalf
of GSK prior to the Amendment Effective Date and (ii) is further evaluated in connection with the
conduct of the CK Clinical Studies.

          (f) “Final Study Report” shall have the meaning ascribed in Appendix I hereto.

          (g) “GSK Option” shall have the meaning set forth in Section 18 of this Amendment.

          (h) “GSK-Ongoing Study” shall have the meaning set forth in Section 8(a) of this
Amendment.

          (i) “GSK-Sponsored Studies” shall mean all clinical studies that have been sponsored
by GSK or any of its Affiliates in connection with the Agreement, or otherwise in respect to SB-921
and/or SB-992, that were initiated by or under authority of GSK or its Affiliates prior to the
Amendment Effective Date.

          (j) “June 2006 Amendment” shall mean the letter amendment to the Agreement, dated June
16, 2006, that was entered into by and between CK and GSK.

          (k) “KSP Product” shall mean any CK Product that includes a CK Compound that meets the
Compound Criteria for KSP (including any CK Product that includes SB-921 or SB-992).

          (l) “[***]” shall mean any [***] that uses an inhibitor of a CK Target for [***]
applications, including [***].

          (m) “Optioned Product(s)” shall have the meaning set forth in Section 18(c) of this
Amendment.

          (n) “September 2005 Amendment” shall mean that certain Amendment to Collaboration and
License Agreement, dated September 21, 2005 that was entered into by and between CK and GSK.

          (o) “SB-921” shall mean the Development Compound designated by GSK as SB-743921.

 

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

2

 

          (p) “SB-921 Product” means a KSP Product incorporating SB-921.

          (q) “SB-992” shall mean the Development Compound designated by GSK SB-715992 and also
known as ispinesib.

          (r) “SB-992 Product” means a KSP Product incorporating SB-992.

          (s) “SB-992 [***]” shall have the meaning set forth in Section 11 of this Amendment.

          (t) “Third Party-Sponsored Study(ies)” shall have the meaning set forth in Section
8(e) of this Amendment.

     2. Designation of Mitotic Kinesin Targets as CK Targets. Notwithstanding anything to
the contrary in the Agreement, all Mitotic Kinesin Targets (including all Mitotic Kinesin Targets
previously designated as Collaboration Targets, i.e., KSP, [***] and [***]) are hereby deemed, and
shall be deemed, to be CK Targets under the Agreement, with the sole exception of CENP-E. The
Mitotic Kinesin Targets (including previous Collaboration Targets) designated as CK Targets as of
the Amendment Effective Date are set forth in Appendix V of this Amendment, attached hereto
and incorporated herein. Except as expressly provided to the contrary in this Amendment, the terms
and conditions of the Agreement shall apply to all CK Targets designated as such under this Section
2 in the same manner as if the Mitotic Kinesin Targets each became a CK Target under Section 2.7 of
the Agreement.

     3. Designation of CK Compounds. The Parties hereby designate, and CK shall hereafter
designate, all Compounds that meet the Compound Criteria with respect to any CK Target as CK
Compounds, including all such Compounds previously designated as Development Compounds against such
CK Targets (i.e., SB-921 and SB-992) and including all Compounds that meet the requirements of
Section 1.5(a) of the Agreement.

     4. Collaboration Targets; CENP-E; Unselected Targets. The Mitotic Kinesin Target
CENP-E remains a Collaboration Target and a Lead Target under the Agreement as of the Amendment
Effective Date and shall be subject to all of the terms and conditions of the Agreement and this
Amendment, including those that may cause CENP-E to become a CK Target. No Mitotic Kinesin Target
shall at any time be considered a Collaboration Target or Lead Target, except for CENP-E and, if
GSK exercises the GSK Option in accordance with this Amendment, KSP. No target shall be considered
an Unselected Target at any time.

5. Research Program.

          (a) Research Term. The terms of the June 2006 Amendment which provide that the
Research Term is extended only with regard to CENP-E shall be interpreted to mean that the Research
Term shall be extended until June 19, 2007 for all purposes under the Agreement, except that the
scope of the ongoing Research Program is and shall be restricted only to the Collaboration Target,
CENP-E, as more particularly set forth in this Amendment. The Research Term for CENP-E shall be
considered for all purposes under the Agreement to end on June 19, 2007, unless further extended
under Section 2.8 of the Agreement, but in all cases subject to the terms and conditions of the
Agreement and this Amendment. Notwithstanding the foregoing, (i)

 

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

3

 

the Exclusivity Period under Section 4.1.1 for Compounds, Development Compounds and Licensed
Products directed to CK Targets other than CENP-E shall end on [***], subject to Section 24 below
with regard to KSP and SB-992 and SB-921; and (ii) the Exclusivity Period under Section 4.1.2 with
respect to all Mitotic Kinesin Targets other than KSP and CENP-E shall end on [***], subject to
Section 24 below.

          (b) Limited Scope. Notwithstanding the extension of the Research Term for CENP-E as
described in Section 5(a) of this Amendment, the Research Program ended as of June 19, 2006 with
respect to, and shall exclude, all Mitotic Kinesin Targets, other than CENP-E. Notwithstanding
anything to the contrary, there shall be no extensions of the Research Program under the terms of
the Agreement, as amended by this Amendment, other than for CENP-E.

     6. Independent Development by CK. Notwithstanding anything else to the contrary in
the Agreement, CK shall have the exclusive right to control, at its sole discretion and expense,
all further research, development, manufacturing, and commercialization of the CK Targets, CK
Compounds and CK Products (including KSP Products) (itself and through Third Parties) without
further obligation to GSK, except subject to (i) the GSK Option set forth in this Amendment and
(ii) the obligation to pay royalties to GSK pursuant to Section 4.7 of the Agreement on CK
Products, including KSP Products. Accordingly, all references in the September 2005 Amendment to
the CK Subfield, and any other limitations in the Agreement on research, development, manufacture
or commercialization by CK (itself or through Third Parties) of CK Targets, CK Compounds and CK
Products are hereby terminated and deleted. Such research, development, manufacture and
commercialization by and under authority of CK shall not be considered part of, and shall not be
subject to the terms and conditions applicable to, the collaboration under the Agreement, except
pursuant to the GSK Option. For purposes of this Section 6 and the other terms of the Agreement,
the term “CK Product” shall be deemed to include [***] that include a CK Compound.

     7. Joint Development Committee.

          (a) The JDC established pursuant to Section 2.1.1 of the September 2005 Amendment is hereby
dissolved. Sections 2.1.1 and 2.1.2 of the September 2005 Amendment are hereby deleted from the
Agreement, and shall have no further force or effect, provided that CK shall provide quarterly
updates relating to SB-921 Products and SB-992 Products through the Project Team for GSK-923295, or
to another team of individuals designated by GSK with similar functional responsibilities, unless
and until the GSK Option expires.

          (b) If GSK exercises the GSK Option: (i) unless the JDC has previously been established for
CENP-E in accordance with the terms of Section 3.5 of the Agreement, the Parties shall establish
the JDC for the Optioned Products, (ii) with respect to Optioned Products, the JDC shall have the
rights, responsibilities and obligations as set forth in Section 2.1.1 of the September 2005
Amendment; (iii) [***] shall have the right to [***] on all matters relating to any [***] for an
Optioned Product or otherwise relating to the [***] or [***] of any Optioned Product for any [***];
(iii) [***] shall have the right to [***] on matters relating to the [***] or [***] of Optioned
Products for any [***]; and (iv) [***] shall have the right to [***] on matters relating to the
[***] or [***]of Optioned Products for any [***] other than [***] or [***]. This

 

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

4

 

\

Section 7(b) shall not modify the operation of Section 3.5 of the Agreement with regard to
CENP-E.

     8. GSK-Sponsored Studies; Third Party-Sponsored Studies.

          (a) GSK shall not [***], and represents and warrants that it has not [***], any [***] in any
study for SB-992 or SB-921 [***], including those studies for SB-992 and SB-921 that were ongoing
as of [***] (each, a “GSK-Ongoing Study”). After the Amendment Effective Date, GSK shall
keep CK fully and promptly informed regarding the progress and results of the GSK-Ongoing Studies.
After the Amendment Effective Date, GSK shall provide CK with copies of any [***] from [***]
regarding any GSK-Ongoing Study promptly upon receipt. GSK shall use [***] efforts to complete the
GSK-Ongoing Studies and the collection of data and Final Study Report for each such GSK-Ongoing
Study.

          (b) GSK shall continue to maintain the IND for SB-992 and SB-921 (i.e., IND [***] with an
initial filing date of [***] for SB-992 and IND [***] with an initial filing date of [***] for
SB-921) until each such IND is transferred to CK as set forth herein. GSK shall use [***] efforts
to complete and file the Annual Report for IND [***] in accordance with the timings as required by
law for filing of such Annual Report. After GSK files the Annual Report for IND [***] due
following the Amendment Effective Date, GSK shall transfer IND [***] and IND [***] to CK. Prior to
transfer of each IND, GSK shall allow, and hereby authorizes, CK to cross reference such IND.
Concurrent with its [***] for IND [***] to [***], GSK shall provide [***] thereof to CK.

          (c) After the Amendment Effective Date, GSK agrees to complete the Final Study Reports for the
GSK-Ongoing Studies for SB-992 and SB-921 within [***] ([***]) [***] following [***] for the
relevant GSK-Ongoing Study. If all data from the GSK-Ongoing Study for SB-921 has been collected
by GSK and the Final Study Report for such study completed prior to the date that GSK transfers IND
[***] to CK, GSK shall file the Final Study Report for such study with the FDA. If such Final
Study Report is not completed before the transfer of IND [***], GSK shall complete the Final Study
Report and submit it to CK for filing with the FDA. GSK shall complete the Final Study Reports for
the GSK-Ongoing Studies for SB-992 and submit it to CK for filing with the FDA. Prior to
finalization of each Final Study Report for the GSK-Ongoing Studies, GSK shall provide CK with
[***] and provide CK [***] thereon; provided, however, that GSK shall have [***] in finalizing any
Final Study Report. After transfer of the INDs for SB-992 and SB-921 to CK, CK shall have
responsibility for such INDs, shall file the Annual Report for IND [***] with the FDA and shall
undertake and fulfill all obligations imposed on holders of INDs under law with respect to IND
[***] and IND [***], including filing all reports that may be due in connection with such INDs,
other than as set forth above.

          (d) After the Amendment Effective Date, GSK shall complete and publish manuscripts for
GSK-Sponsored Studies, [***], [***] after the Amendment Effective Date; provided, however, that GSK
shall not publish any manuscript until after CK has had [***] to review and comment on the
manuscript. GSK shall [***] CK’s [***] with respect thereto, consistent with prior practice
between GSK and CK regarding publication of manuscripts for SB-992 and SB-921.

 

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

5

 

          (e) After the Amendment Effective Date, GSK and its Affiliates shall not conduct or have
conducted under their respective authority any clinical activities with regard to SB-992 or SB-921,
other than GSK’s activities in accordance with the foregoing for SB-992 and SB-921 under the
GSK-Ongoing Studies.

          
(f) After the Amendment Effective Date, CK shall be responsible, at its expense, for providing
any materials or services (e.g., [***], [***], [***], [***] or [***], etc.) to Third Parties to the
extent required by the terms of any Third Party Agreements that GSK assigns to CK pursuant to this
Amendment, in each case to the extent necessary to enable such Third Parties to complete their
studies with respect to SB-992 or SB-921, as applicable (the “Third Party-Sponsored
Studies”). For clarity, CK does not assume any responsibility, liability, or other Losses
arising out of any activities or obligations in connection with such Third Party-Sponsored Studies
or Third Party Agreements to the extent that the activities occurred, or if the obligation matured,
prior to the time at which the particular agreement is assigned to CK, including Losses arising out
of any failure to comply with any Third Party Agreements that occurred prior to the date of
assignment of the particular Third Party Agreement to CK, except to the extent CK would have had
responsibility therefor prior to such assignment. All such Losses shall be within the scope of
GSK’s obligation to indemnify, defend and hold harmless under Section 10.2.1 of the Agreement.
Similarly, to the extent of CK’s obligation to indemnify under Section 10.2.2 of the Agreement, CK
shall remain obligated to indemnify GSK with respect to activities under the Third Party Agreements
that occur after the Third Party Agreement has been assigned to CK after the Amendment Effective
Date. CK shall have no responsibility for any materials or services which GSK was required, but
failed, to provide prior to the Amendment Effective Date under such Third Party Agreements. GSK
shall retain responsibility for providing such materials and services.

     9. Transition and Information Exchange.

          (a) Section 4.4.2 of the Agreement shall continue to apply with respect to all CK Targets, CK
Compounds and CK Products, including the KSP Products. Without limiting the foregoing, as set
forth in Section 4.4.2 of the Agreement, commencing upon the Amendment Effective Date with respect
to all CK Targets, CK Compounds and CK Products designated as such under this Amendment, GSK shall
cooperate fully with CK to provide CK with all Licensed Technology and Information to which CK has
a right or license under the Agreement and which is necessary or useful for CK to further research,
develop, produce or otherwise exploit any such CK Target, CK Compound, or CK Product. Such
cooperation shall include (i) the reasonable disclosure of all such Information, to the extent such
Information is not within the possession or control of CK (including, without limitation, [***]
(including with respect to the [***])); (ii) transfer of [***] and [***] of [***] and [***] (to the
extent such [***] were [***], or [***], by GSK with respect to the CK Compound or CK Product and
excluding the GSK [***] and [***] with other products); (iii) [***] (including transfer of the
[***] for the [***] in accordance with Section [***] of this Amendment); (iv) transfer of [***],
and [***] such materials were [***] by GSK with respect to CK Compounds, CK Products or CK Targets;
and (v) to the extent reasonably transferable and specifically developed or used in connection with
any CK Product, CK Compound or CK Target, transfer of [***], all to the extent that such material
is not in the possession of CK, and such other disclosures and transfers as are reasonably
necessary or useful

 

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

6

 

for CK to exercise its full rights with respect to such CK Product, CK Target or CK Compound
granted to CK under the Agreement. In particular and without limiting the foregoing, GSK shall
provide to CK the Information, materials and assistance described on Appendix I, attached
hereto and incorporated herein, with respect to SB-992 and SB-921, to the extent such Information
and materials (i) were not previously supplied to CK for SB-921 under the September 2005 Amendment,
(ii) are not otherwise in the current possession of CK, and (iii) other than the Final Study
Reports for the GSK-Ongoing Studies for SB-992 and SB-921, exist at the time of the Amendment
Effective Date and are in GSK’s possession or control. All Information described in this Section
9(a) shall be delivered to CK after the Amendment Effective Date within [***] ([***]) [***] after
CK’s written request, except to the extent that GSK has obtained CK’s written agreement to a longer
period of time when delivery is not possible within such [***] ([***]) [***] period, such agreement
not to be unreasonably withheld. Except as set forth in Section 8 of this Amendment, nothing in
this Section or this Amendment shall obligate GSK to update or complete materials provided to CK
under this Amendment.

          (b) Without limiting the foregoing, GSK shall also provide CK with such assistance as CK
reasonably requests from time to time to assist CK in [***] and [***] the Information and materials
provided by GSK.

          (c) In accordance with Section 4.4.2 of the Agreement, CK shall [***] GSK’s [***] with respect
to all activities, materials and assistance provided by GSK to CK under Section 4.4.2 of the
Agreement and this Section 9. GSK shall provide [***] to CK of such [***] after they are [***],
which CK shall [***] within [***] of receipt of such [***] from GSK.

     10. Generic and Brand Names. GSK shall transfer sponsorship and ownership to CK of
all of GSK’s generic names and brand names for SB-992 and SB-921, including all goodwill associated
therewith, promptly after the Amendment Effective Date, excluding GSK’s general corporate trade
marks, trade dress and logo used for its products generally. CK shall have the right to use the
numerical compound identifier originally designated by GSK for SB-992 and SB-921, that is,
SB-715992 and SB-743921, for any CK Product.

 

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

7

 

     11. [***] of SB-992.

          (a) GSK shall provide to CK, at GSK’s expense, the [***] of SB-992 [***] and [***] in GSK’s
[***], including [***], as of the [***], excluding any [***] of SB-992 [***] by GSK for any [***]
for SB-992 (the “SB-992 [***]”). GSK represents and warrants that, to its knowledge, the
SB-992 [***] of [***] is [***], the SB-992 [***] of [***] is [***] in [***], and the SB-992 [***]
of [***] is [***]. GSK represents and warrants, to its knowledge, that the SB-992 [***] also
includes [***] of [***] which shall be [***] by GSK promptly following the Amendment Effective
Date. GSK shall [***] the SB-992 [***] to CK’s [***] as soon as practicable following the
Amendment Effective Date, but in no event later than [***] ([***]) [***] after the Amendment
Effective Date.

          (b) CK shall be responsible, at its cost, for [***] and [***] (itself or through [***]) CK’s
requirements for SB-992 [***] and [***] in [***] of the SB-992 [***] provided by GSK. GSK shall
provide CK with such assistance, documentation, and Information as is reasonably requested by CK in
connection with [***] the SB-992 [***] to CK and CK or [***] of SB-992 [***] and [***], including
documentation, such as, but not limited to, [***]. CK shall be responsible, at its expense: (i)
for any [***] of SB-992 [***] that [***], including [***] to GSK for [***] with respect to [***]
under Section [***] of this Amendment to the extent set forth in Section 4.4.2 of the Agreement;
and (ii) for [***] and [***] of [***] SB-992 [***] that have been [***] to CK under this Section
11.

          (c) To the extent Losses arise out of any [***] of the SB-992 [***] to [***] with [***], other
[***] or [***], any [***], or other [***] to the [***], or [***] of the SB-992 [***] for [***] in
[***] shall be deemed to be within the scope of GSK’s obligation to indemnify CK under Section
10.2.1 of the Agreement. CK shall be responsible for any Losses arising out of the [***] by CK or
[***] of any SB-992 [***] and [***] in [***] of the SB-992 [***] and shall have no right to
indemnity from GSK for such Losses under Section 10.2.1 of the Agreement.

     12. [***] Studies. Subject to [***] by CK in accordance with Section 4.4.2 of the
Agreement, GSK shall [***] studies for [***] of [***] and [***] of SB-921 and SB-992 and shall
[***] to CK all [***] and [***] from time to time as such [***] become available and as CK
otherwise requests.

 

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

8

 

     13. Third Party Agreements.

          (a) GSK represents and warrants to CK, as of the Amendment Effective Date and to its
knowledge, that it has granted no right or license or interest to any Third Party under the
Assigned Patents or other intellectual property rights of GSK prior to the Amendment Effective Date
that would conflict or interfere with CK’s ability to develop and commercialize SB-992 or SB-921
after the Amendment Effective Date.

          (b) Promptly after the Amendment Effective Date, to the extent it has not already done so
prior to such date and to the extent it is not prohibited by the terms of the agreement from doing
so, GSK shall endeavor to provide CK with copies of [***] agreements (or copies of agreement
templates) between GSK and Third Parties under which activities solely for SB-992 or SB-921 are
ongoing or have occurred as of the Amendment Effective Date, including GSK’s agreement with the
National Cancer Institute (each, a “Third Party Agreement”). The list of such Third Party
Agreements which have been provided by GSK as of the Amendment Effective Date is set forth in
Appendix VI, attached hereto and incorporated herein.

          (c) Promptly after the Amendment Effective Date, GSK shall assign to CK all Third Party
Agreements relating solely to SB-992 or SB-921 that have not terminated as of the Amendment
Effective Date to the extent CK requests and GSK is not prohibited by the terms of the particular
Third Party Agreement, or applicable law, from doing so. GSK shall have no obligation to disclose
or to assign to CK any Third Party Agreement pursuant to which activities for GSK products other
than SB-992 or SB-921 are to be or have been performed. GSK shall further be under no obligation
to obtain the consent of any Third Party to the assignment of any Third Party Agreement which
requires consent to assign, except that GSK shall use [***] efforts, and cooperate, as CK requests,
to seek and obtain any consent, substitution, approval, and amendment required to transfer, or to
novate, as desired by CK, any and all Third Party Agreements and rights and obligations thereunder.
Without limiting the foregoing, GSK shall use [***] efforts to promptly [***] with the [***]
relating to SB-992 [***] and [***] the [***] to permit GSK to assign such agreement to CK.

          (d) With respect to each Third Party Agreement that is not assigned or otherwise transferred
to CK under Section 11(c) or that has not already terminated (“Unassigned Agreements”), GSK
shall terminate the Third Party Agreement as CK requests or allow such Unassigned Agreement to
terminate of its own accord in its entirety if the Unassigned Agreement relates solely to SB-992 or
SB-921. If the Unassigned Agreement relates to GSK products other than SB-992 or SB-921, GSK shall
have no obligation to terminate the Unassigned Agreement. Alternatively or additionally, to the
extent not prohibited by applicable law, GSK shall use [***] efforts to hold such Unassigned
Agreements, as of and from the Amendment Effective Date, in trust for CK and all covenants,
responsibilities, and obligations thereunder shall be performed, and all rights and licenses
thereunder shall be exercised, solely for the benefit of CK. GSK shall take or cause to be taken
such actions in GSK’s name or otherwise as CK may reasonably request so as to provide CK with the
benefits of the Unassigned Agreements to the extent they relate to SB-992 or SB-921, including,
without limitation,

 

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

9

 

instructing the Third Party to the Unassigned Agreement to perform all of its obligations
solely for the benefit of CK with respect to any obligations pertaining to SB-992 or SB-921.

          (e) Commencing as of the Amendment Effective Date, all obligations under the Third Party
Agreements (except for the Unassigned Agreements) to assign, license or otherwise transfer to GSK
or its Affiliate any right, title or interest in or to any Patent or other intellectual property
rights relating to SB-992 or SB-921 shall be deemed to be obligations to assign, license and
otherwise transfer such right, title or interest to CK. With regard to each Unassigned Agreement,
unless and until the Unassigned Agreement is transferred to CK or terminated, GSK and its
Affiliates shall notify CK of any assignment of Patents or other intellectual property relating to
SB-992 or SB-921 to GSK or its Affiliate, and GSK and the Affiliate shall assign to CK, as CK
requests, all right, title, and interest in and to all Patents and other intellectual property
relating to SB-992 or SB-921 that is assigned to GSK or the Affiliate under the Unassigned
Agreement. All Information disclosed to GSK or its Affiliate under any Third Party Agreement
relating to a SB-992 or SB-921 is hereby deemed to be the Confidential Information of CK under the
Agreement. Without limiting the foregoing, all Patents relating to SB-992 or SB-921 to which any
right, title or interest has been or is assigned to GSK under or as a result of any Third Party
Agreement, including any joint interest with CK, are hereby deemed to be within the Assigned
Patents that are assigned to CK under Section 14 of this Amendment. Additionally, GSK hereby
authorizes, and shall authorize as CK requests, each Third Party to a Third Party Agreement to
disclose to CK all confidential information relating to SB-992 or SB-921 that may be, or may have
been, disclosed or produced under the Third Party Agreements. All Information and technology
related to SB-992 or SB-921 that CK receives from Third Parties in connection with the Third Party
Agreements that is not owned by CK in accordance with the foregoing shall be deemed licensed to CK
under the Agreement to the same extent as each of the Collaboration Technology and
Post-Collaboration Technology.

          (f) Neither the foregoing, nor any assignment of a Third Party Agreement to CK, shall transfer
to CK responsibility or liability for any breaches, obligations or Losses arising out of any
activities that occurred, or obligations that accrued or matured, prior to the date on which the
particular Third Party Agreement was assigned to CK after the Amendment Effective Date. From and
after the date of assignment of any Third Party Agreement to CK, CK shall be solely responsible for
all obligations under such Third Party Agreement after the date of assignment and shall have all
responsibility and liability for any breaches, obligations and Losses to the extent arising out of
any activities occurring under an assigned Third Party Agreement after the date of its assignment
to CK. CK shall indemnify GSK for any Losses to the extent arising out of such Third Party
Agreements from and after the date assigned in accordance with Section 10.2.2.

     14. Assigned Patents.

          (a) GSK hereby assigns, and shall assign promptly, to CK all Assigned Patents. CK shall [***]
for its [***] that [***] to effect such assignment, including any [***] of [***], within [***]
([***]) [***] of [***] of an [***]. Upon such assignment, CK or its designee shall control in
their sole discretion, the Prosecution and Maintenance and enforcement of the Assigned Patents, and
all other Patents based upon or that claim priority to an Assigned Patent, at its sole cost and
expense. For a period of [***] ([***]) [***] after the Amendment

 

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

10

 

Effective Date, GSK, at GSK’s cost, shall provide reasonable assistance to CK with respect to
the Prosecution and Maintenance of all such Assigned Patents.

          (b) If GSK exercises the GSK Option, CK shall license to GSK, in accordance with Section 5.2
of the Agreement, all Assigned Patents for Optioned Products (including Assigned Patents claiming
KSP for purposes thereof), in addition to the other licenses granted by CK to GSK under Section
5.2.1 of the Agreement, on exercise of the GSK Option, and GSK and CK shall cooperate with respect
to the Prosecution and Maintenance and enforcement of all such Assigned Patents in accordance with
the provisions in Article 8 of the Agreement. As provided in Section 19, if GSK exercises the GSK
Option, GSK shall reimburse CK [***]% of the [***] Patent Costs of the Assigned Patents for the
Optioned Product(s), as incurred by CK after the Amendment Effective Date, subject to the cap set
forth in Section 19(a)(ii). In addition, GSK shall reimburse CK [***] percent ([***]%) of the
costs of [***] related to the Optioned Products as incurred by CK after the Amendment Effective
Date, subject to the cap set forth in Section 19(a)(ii).

          (c) If, after the Amendment Effective Date and prior to expiration of GSK Option, CK intends
to [***] or [***], CK shall notify GSK of such intention at least [***] ([***]) [***] prior to the
date upon which [***] or [***] (or such shorter period as [***] ([***]) [***]), and GSK shall
thereupon have the right, but not the obligation, to [***] of such [***] at its own expense with
[***] of its [***]. At GSK’s request, CK shall [***], at GSK’s expense, any [***] that CK [***] or
[***] without [***]. For clarity, all [***] to GSK shall [***] to CK under the Agreement, and
subject to the [***] to CK, to the same extent [***] and [***] to CK under each of the
Collaboration Technology and Post-Collaboration Technology.

     15. [***] to GSK. Subject to the terms and conditions of the Agreement, CK [***] to
GSK a [***] and [***] to permit GSK to [***] and any [***] by GSK [***] thereto for the [***], and
[***] and/or [***] shall not include any [***] and/or [***]. All [***] and [***] under this
Section 15 shall [***], and have no [***] or [***], upon [***] or [***] of the [***].

     16. Joint Commercialization Committee. The Joint Commercialization Committee’s
oversight and responsibility under the Agreement shall be limited to (i) Licensed Products that
contain a Development Compound that meets the Compound Criteria for CENP-E and (ii) if GSK has
exercised the GSK Option in accordance with this Agreement, the Optioned Products. Such oversight
and responsibility shall apply only during those periods of time in which CENP-E or KSP, as the
case may be, is a Collaboration Target under the Agreement.

     17. Adverse Event Reporting. Promptly following the Amendment Effective Date, the
Parties shall execute a “Safety Data Exchange Agreement” to coordinate the submission of serious
adverse event (SAE) reports and routine adverse event (AE) reports to local regulatory authorities
to the extent applicable for SB-992 and SB-921 and as required by applicable law. In addition,
promptly after the Amendment Effective Date, GSK shall provide [***] for SB-992 and SB-921 to CK.

 

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

11

 

     18. GSK Option.

          (a) GSK hereby waives all rights under Section 4.5 of the Agreement and all of CK’s
obligations under Section 4.6 of the Agreement. In particular, Sections 4.5 and 4.6 of the
Agreement are hereby terminated and shall have no further force or effect. In lieu of such rights
and obligations, and replacing the GSK [***] Option set forth in Section 2.3 of the September 2005
Amendment, CK hereby grants to GSK an option to reinstate SB-992 Products and/or SB-921 Products as
Licensed Products under the Agreement as follows (the “GSK Option”):

          (b) CK shall notify GSK in writing of [***] (for [***], substantially in accordance with the
[***] set forth in Appendix VII, attached hereto and incorporated herein, and for which
[***] in accordance with the applicable [***]) from the [***] for [***] under the CK Clinical
Studies (“[***] Notice”). CK shall include with the [***] Notice a copy of [***] for the
[***] on [***] as part of the CK Clinical Studies. If CK does not [***] for [***] conducted under
the CK Clinical Studies, CK shall notify GSK in writing of the [***] (for [***] and for which
[***]) from the [***] for [***] under the CK Clinical Studies, and such notice shall be a [***]
Notice pursuant to this Section 18(b). Upon receipt of the [***] Notice, GSK shall have the option
to conduct all further development (including Later Stage Development) and commercialization of
SB-992 Products and/or SB-921 Products for all indications, subject to CK’s Co-Funding Option in
Section 3.4 of the Agreement and CK’s Co-Promotion Option in Section 7.4 of the Agreement.
Following delivery of a [***] Notice to GSK, CK shall provide such information and data owned by CK
that has been generated in or for such [***] and all other data from CK’s [***]of such KSP Product,
to the extent such information and data has not been previously provided to GSK, as GSK may
reasonably request to enable GSK to make an informed decision whether to exercise the GSK Option.
Nothing in this Section 18 shall be construed to require CK to perform, continue or complete any
studies or analysis.

          (c) GSK shall have [***] ([***]) [***] from receipt by GSK of the [***] Notice to exercise the
GSK Option or to notify CK that it does not wish to exercise the GSK Option (“GSK Option
Period”). To exercise the GSK Option, GSK shall provide, at any time prior to the expiration
of the GSK Option Period, written notice to CK specifying that GSK agrees to conduct all further
development (including Later Stage Development) and commercialization of: (i) all SB-992 Products
only; (ii) all SB-921 Products only; or (iii) all SB-992 Products and SB-921 Products. Such notice
shall specify whether GSK is exercising the GSK Option with respect to SB-992 Products only, SB-921
Products only, or both SB-992 Products and SB-921 Products, and the KSP Products so specified shall
be deemed “Optioned Products”. Such development and commercialization shall be conducted
in accordance with the terms and conditions of the Agreement that are applicable to Collaboration
Targets, Development Compounds and Licensed Products, subject to the terms of this Amendment.

          (d) If GSK elects not, or otherwise fails, to exercise the GSK Option during the GSK Option
Period, then the GSK Option shall expire with respect to all KSP Products, effective on the earlier
of: (i) the date of GSK’s notice to CK that it will not exercise the GSK Option; and (ii) the last
day of the GSK Option Period. Prior to receipt of a [***] Notice, GSK shall have the right to
notify CK that it wishes to exercise the GSK Option or to notify CK that it has declined its rights
under the GSK Option. If GSK so notifies CK that it has declined its

 

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

12

 

rights under the GSK Option, the GSK Option shall expire on the date of such notification to
CK. If CK, for any reason, fails to provide GSK with a [***] Notice in accordance with Section
18(b), the GSK Option shall expire on [***], if it has not earlier expired under the terms of this
Section.

          (e) Notwithstanding anything to the contrary, the GSK Option shall not be triggered by any
[***], or [***], [***] concerning the use of any inhibitor of KSP in [***] for [***] applications,
including [***]. [***] that include an Optioned Product that inhibits KSP for [***] applications,
including [***], shall be considered included in the Collaboration, however, if GSK otherwise
exercises the GSK Option in accordance with the terms of this Amendment.

          (f) For as long as the GSK Option remains in effect, CK shall use [***] efforts to develop
SB-992 Products and SB-921 Products, subject to the following: CK shall have the right to [***] or
[***] or [***] or [***], and CK’s decision to do so shall not be [***] under this Section 18(f) or
otherwise under this Amendment or the Agreement.

     19. Effect of Exercise of GSK Option.

          (a) If GSK exercises the GSK Option during the GSK Option Period with regard to one or both of
SB-992 Products and SB-921 Products, then:

               (i) the Optioned Product(s) shall become Licensed Products, subject to all terms of the
Agreement, but with the modified economics described in this Amendment;

               (ii) GSK shall reimburse CK for: (a) all [***] costs incurred by CK in connection with the
development of the Optioned Product(s), other than [***] costs (together with an additional [***]
percent ([***]%) premium of such costs); (b) any [***] costs incurred by CK for the Optioned
Product(s); (c) the [***] Patent Costs for the Assigned Patents [***] KSP and the Optioned
Product(s); and (d) [***] percent ([***]%) of the costs of [***] relating to the Optioned Products,
all to the extent not previously reimbursed by GSK and each as incurred by CK after the Amendment
Effective Date. The total of the amounts in (a) and (b) shall be capped at a maximum of US$[***],
and the total of the amounts in (c) and (d) shall be capped at US$[***]. The cap on the amounts in
(a) and (b) shall not apply to the [***] percent ([***]%) premium referenced in (a). The costs
which GSK reimburses shall include, without limitation, those costs set forth as [***] in Section
[***] of the Agreement. In no case will the total amount to be reimbursed by GSK under this
Section exceed $[***];

               (iii) GSK shall pay to CK, with respect to such Licensed Products, the milestones described on
Appendix II of this Amendment, attached hereto and incorporated herein, and royalties
described in Appendix III of this Amendment, attached hereto and incorporated herein, and
Sections 3.2 and 3.3 of the September 2005 Amendment are hereby deleted in their entirety; and

               (iv) the Parties shall form the JDC (unless already formed, as described in Section 7 above)
for the Optioned Products.

                    In addition to the above effects, CK shall have the right to continue any ongoing CK Clinical
Studies for any Optioned Products, and GSK shall reimburse CK for

 

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

13

 

[***]% of the [***] costs incurred by CK in connection with such studies after the date of
GSK’s exercise of the GSK Option.

          (b) For clarity, on exercise of the GSK Option, KSP shall be deemed a Collaboration Target,
subject to all applicable provisions of the Agreement, including all diligence and payment
obligations, subject to Sections 19(d) and 24(d).

          (c) If GSK exercises the GSK Option with respect to SB-992 Products only or SB-921 Products
only, as provided in Section 18, (i) GSK shall have no right to develop and commercialize any KSP
Products which are not Optioned Products, (ii) GSK shall have no obligation to reimburse CK’s
expenses under this Section 19 for any KSP Products which are not Optioned Products, and (iii)
without limiting anything herein or in the Agreement, CK shall have all rights to develop and
commercialize any KSP Products which are not Optioned Products, subject to payment to GSK of the
royalty under Section 20 of this Amendment on sales of such KSP Products.

          (d) If GSK exercises the GSK Option with respect to both SB-992 Products and SB-921 Products
and reimburses CK in accordance with Section 19(a)(ii) above, GSK shall have the right to [***] or
[***], and [***] or [***], and GSK’s decision to do so shall not be [***] under the Agreement or
this Amendment.

          (e) If GSK exercises the GSK Option, prior to any payment to CK under Section 19(a)(ii) above,
GSK shall have the right to audit the costs incurred by CK for the Optioned Products, but not with
respect any other KSP Products.

 

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

14

 

     20. Other Royalties and Milestones. The terms in the Agreement requiring GSK to pay
royalties and milestones with regard to Licensed Products directed toward CENP-E shall continue to
apply in accordance with their terms. Section 4.7 of the Agreement requiring CK to pay royalties
to GSK on sales of CK Products shall continue to apply in accordance with its terms. GSK and CK
agree that, if GSK does not exercise the GSK Option with regard to a KSP Product, the royalty
payable by CK to GSK under Section 4.7.1 for any CK Product incorporating SB-992 shall be [***]%
and for any CK Product incorporating SB-921 shall be [***]%.

     21. Development Plans for KSP Products. The JDC shall generate and approve a
Development Plan for the Optioned Products within [***] ([***]) [***] of GSK’s exercise of the GSK
Option.

     22. CK Co-Funding Option. Upon and after GSK’s exercise of the GSK Option in
accordance with this Amendment, all Optioned Products shall be subject to the Co-Funding Option
under Section 3.4 of the Agreement, and CK shall have the right to exercise the Co-Funding Option
with respect to each Optioned Product pursuant to and in accordance with the terms set forth
therein except that, for each such Optioned Product, CK shall have the right to exercise the
Co-Funding Option by providing written notice thereof to GSK anytime prior to the end of the
[***]-[***] period following the JDC’s approval of the Development Plan for such Optioned Product
as described in Section 21 above.

     23. Failure to Exercise GSK Option. If GSK elects not, or otherwise fails, to
exercise the GSK Option with respect to a KSP Product or if CK fails to provide a [***] Notice in
accordance with Section 18(b) above, then (i) GSK shall have no rights or obligations with respect
to the development or commercialization of such KSP Product, and (ii) CK’s exclusive rights under
Section 6 of this Amendment, at its sole discretion and expense, to conduct all further research,
development, manufacturing and commercialization of any such KSP Product (itself and through Third
Parties) without further obligation to GSK, other than payment of the applicable royalties pursuant
to Section 20 above and Section 4.7 of the Agreement shall remain in effect.

     24. Exclusivity.

          (a) After the Amendment Effective Date, Section 4.1.1 and Section 4.1.2 of the Agreement shall
apply only to: (i) CK Targets other than KSP; (ii) CK Products directed to CK Targets other than
KSP; and (iii) CENP-E and Compounds, Development Compounds and Licensed Products directed to
CENP-E. Section 4.1.3 shall continue in full force and effect.

          (b) For as long as the GSK Option is in effect and subject to the grant-back license to GSK in
Section 15 of this Amendment, neither GSK nor its Affiliates shall:

               (i) conduct any research or development regarding KSP or any inhibitor thereof or any chemical
or biological entity directed thereto; or

               (ii) make, have made, use, sell, offer to sell, import or otherwise commercialize any products
inhibiting the biological activity of KSP, and shall not authorize,

 

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

15

 

fund or assist any other party in undertaking any activity described in subclause (b)(i) or
(ii) of this Section 24.

          (c) If GSK declines or otherwise fails to exercise the GSK Option, for a period of [***]
([***]) [***] after expiration of the GSK Option in accordance with Section 18(d), neither GSK nor
its Affiliates shall [***]; provided, however, if CK [***] or [***], [***] shall not be considered
for purposes of the [***] restriction above; and further provided, that such restriction shall not
apply if CK (i) [***] or (ii) [***] (except in connection with the [***], whether by [***] or
otherwise).

          (d) Extensions under Section 4.2.2 (excluding 4.2.2(e)) of the Agreement shall be available
only based upon the Collaboration Target CENP-E, and the restrictions imposed on CK in Section
4.2.3 of the Agreement shall be limited to CENP-E, including in the event KSP is deemed a
Collaboration Target based on exercise of the GSK Option.

          (e) Sections 4.2.1 and 4.3 of the Agreement shall continue to apply in accordance with their
terms, un-amended, only with respect to CENP-E and no other CK Target, including KSP.

     25. Deletion of [***] and [***] Provisions. All provisions relating to [***] and
[***], including in its entirety Section 2.6.4 of the Agreement, are hereby deleted from the
Agreement and shall have no further force or effect, except the terms in Section 9.5 of the
Agreement which indicate that CK’s disclosure is not restricted in connection with activities
pertaining to [***] or [***] and Section 4.7.2 of the Agreement.

     26. Termination of Other Terms. Sections 2.7, 2.8.2, 3.1.1, 3.1.2, 4.2.2(e), 4.5, 4.6
and the last sentence in Section 1.8 of the Agreement are hereby deleted in their entirety, and
shall have no further force or effect. Additionally, except with respect to CENP-E, CK and GSK
shall have no further obligations under Section 2.1(b) of the Agreement. CK shall have no further
obligation or responsibility under Sections 9.4 and 12.1.2 of the Agreement, except that Sections
9.4 and 12.1.2 of the Agreement shall apply to CK with regard to: (i) Development Compounds and
Licensed Products that are directed toward CENP-E; (ii) Optioned Products for so long as such
Optioned Products remain Licensed Products; (iii) to the extent set forth in Section 8(d) of this
Amendment; and (iv) with respect to any publication or press release which includes information
about the GSK Ongoing Studies for SB-992 or SB-921.

     27. Consequences of Termination . Subject to the changes made by this Amendment, the
Agreement shall continue to govern the consequences of termination of the Agreement in its entirety
and on a Licensed Product-by-Licensed Product basis.

     28. Other Provisions of Agreement Continuing. Except as expressly amended by this
Amendment, all other terms and conditions of the Agreement shall continue in full force and effect.
The September 2005 Amendment shall continue in full force and effect, except to the extent
provisions of the September 2005 Amendment are expressly deleted or supplanted by this Amendment.
In particular, Section 2.8 of the September 2005 Amendment shall continue in full force and effect.

 

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

16

 

     29. Further Assurances. On and after the Amendment Effective Date, upon the
reasonable request of CK, GSK shall use [***] efforts to prepare, execute and deliver such other
and further agreements, instruments and certificates as may be reasonably necessary or appropriate
in order to effectuate the purposes and intent of this Amendment and to consummate the transactions
contemplated hereby. GSK acknowledges that such actions may include, without limitation, executing
instruments, conveyances, declarations, oaths and the like, for Assigned Patents and other
intellectual property which is being transferred to CK pursuant to this Amendment.

     30. Article and Section Headings, Language and Construction. The Section headings
contained in this Amendment are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Amendment. The words “hereof,” “herein” and “hereunder” and
other words of similar import refer to this Amendment as a whole and not to any subdivision
contained in this Amendment. The words “include” and “including” when used herein are not
exclusive and mean “include, without limitation” and “including, without limitation,” respectively.
This Amendment has been negotiated by the Parties and their respective counsel. Accordingly, this
Amendment will be interpreted fairly in accordance with its terms and without any strict
construction in favor of or against either Party.

     31. Miscellaneous. Articles and Sections 9, 10.1, 12.1, 12.4, 12.6, 12.7, 12.8, 12.9,
12.10, 12.11, 12.12 and 12.13 of the Agreement, and Section 4.1 of the September 2005 Amendment,
shall apply to this Amendment in the same manner as they apply to the Agreement or the September
2005 Amendment, as the case may be, and in each case as specifically modified by this Amendment.
For clarity, Section 12.10 of the Agreement shall be considered to refer to the Agreement, as
amended by this Amendment. Each Party shall have the right to assign this Amendment to an entity
to which the Agreement is assigned in accordance with its terms. All transfers in violation of the
foregoing shall be void. Neither Party relied upon any representations or warranties by the other
in deciding whether or not to enter into this Amendment.

[INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

17

 

     IN WITNESS WHEREOF, the Parties have executed this Amendment in duplicate originals by their
duly authorized representatives as of the date and year first above written.

	 	 	 	 	 	 	 	 	 
	Cytokinetics, Inc.	 	 	 	Glaxo Group Limited,
	 	 	 	 	 	 	a GlaxoSmithKline corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert I. Blum	 	 	 	By:	 	/s/ Paul Williamson
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

Name:

	 	

Robert I. Blum 	 	 	 	Name:	 	Paul Williamson 
For and on
behalf of
Edinburgh Pharmaceutical Industries Limited
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	President 	 	 	 	Title:	 	Corporate Director 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	11/22/2006 	 	 	 	Date:	 	21 November 2006
	 

	 	 
	 	 	 	 	 	 

18

 

APPENDIX I

INFORMATION, MATERIALS AND ASSISTANCE

	•	 	[***];
	 
	•	 	[***];
	 
	•	 	[***];
	 
	•	 	[***];
	 
	•	 	[***];
	 
	•	 	[***] (each, a “Final Study Report”). Each Final Study Report shall include [***];
	 
	•	 	[***];
	 
	•	 	[***]; and
	 
	•	 	[***].

 

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

19

 

APPENDIX II

MILESTONES FOR OPTIONED PRODUCTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Additional	 	Enhanced
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Indication	 	Indication
	MILESTONE	 	[***]#	 	[***]#	 	[***]	 	Amount	 	Amount
	1. [***]
	 	$	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	2. [***]
	 	$	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	3. [***]
	 	$	[***]	*	 	 	[***]	 	 	$	[***]	***	 	$	[***]	 	 	 	[***]	 
	4. [***]
	 	$	[***]	*	 	 	[***]	 	 	$	[***]	***	 	$	[***]	 	 	$	[***]	 
	5. [***]
	 	$	[***]	*	 	 	[***]	 	 	$	[***]	***	 	$	[***]	 	 	$	[***]	 
	6. [***]
	 	$	[***]	*	 	$	[***]	**	 	$	[***]	***	 	$	[***]	 	 	$	[***]	 
	7. [***]
	 	$	[***]	*	 	$	[***]	**	 	$	[***]	***	 	$	[***]	 	 	$	[***]	 

Development Milestones

     # For clarity, each of “[***] ,” “[***]” and “[***]” include any
Licensed Product (including any Optioned Product whether for an Additional Indication, Enhanced
Indication or otherwise).

     *  For each Optioned Product, if such Optioned Product is [***] to achieve any one of
Development Milestones 3 – 7 (each, as described in the table above) and:

     (i) if such Optioned Product is for an Additional Indication, then GSK shall pay to CK
the corresponding amounts set forth in the column “[***]” and the column
“Additional Indication Amount” in the table above; and

     (ii) if such Optioned Product is for an Enhanced Indication, then GSK shall pay to CK
the corresponding amounts set forth in the column “[***]” and the column “Enhanced
Indication Amount” in the table above.

     ** For each Optioned Product, if such Optioned Product is [***] to achieve any one
of Development Milestones 3 – 7 (i.e., it is [***]to achieve such Development Milestone)
and:

     (i) if such Optioned Product is for an Additional Indication, then GSK shall pay to CK
the corresponding amounts set forth in the column “[***]” and the column
“Additional Indication Amount” in the table above; and

     (ii) if such Optioned Product is for an Enhanced Indication, then GSK shall pay to CK
the corresponding amounts set forth in the column “[***]” and the column “Enhanced
Indication Amount” in the table above.

     *** For each Optioned Product, if such Optioned Product is [***] to achieve any one
of Development Milestones 3 – 7 and:

 

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

20

 

     (i) if such Optioned Product is for an Additional Indication, then GSK shall pay to CK
the corresponding amounts set forth in the column “[***]” and the column
“Additional Indication Amount” in the table above; and

     (ii) if such Optioned Product is for an Enhanced Indication, then GSK shall pay to CK
the corresponding amounts set forth in the column “[***]” and the column “Enhanced
Indication Amount” in the table above.

     **** No Development Milestones are payable on any Optioned Product for which GSK has not
exercised the GSK Option.

 

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

21

 

Appendix III

Royalties For Optioned Products

     For each Optioned Product that is not a Co-Funded Product:

	 	 	 
	Total Annual Net Sales	 	Royalty
	Less than $ [***]
	 	[***]%
	Between $ [***] and $ [***]
	 	[***]%
	Greater than $ [***]
	 	[***]%

     For each Optioned Product that is a Co-Funded Product, if CK elected to fund the Later Stage
Development Costs therefor at a CK Percentage of [***]percent( [***] %):

	 	 	 
	Total Annual Net Sales	 	Royalty
	Less than $ [***]
	 	[***]%
	Between $ [***] and $ [***]
	 	[***]%
	Greater than $ [***]
	 	[***]%

     For each Optioned Product that is a Co-Funded Product, if CK elected to fund the Later Stage
Development Costs therefor at a CK Percentage of [***]percent( [***] %):

	 	 	 
	Total Annual Net Sales	 	Royalty
	Less than $ [***]
	 	[***]%
	Between $ [***] and $ [***]
	 	[***]%
	Greater than $ [***]
	 	[***]%

 

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

22

 

APPENDIX IV*

ASSIGNED PATENTS

     *Tentative Draft; To be confirmed by CK patent counsel and GSK patent counsel promptly
after Amendment Effective Date

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

23

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

24

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

25

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

26

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

27

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

28

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

29

 

	 	 	 	 	 	 	 	 	 
	REF. NO.	 	APPLN. NO.	 	FILING DATE
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 
	[***]
	 	 	[***]	 	 	 	[***]	 

 

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

30

 

APPENDIX V

CK TARGETS

KSP

[***]

 

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

31

 

APPENDIX VI

CK-GSK THIRD PARTY AGREEMENTS

Agreements provided to CK prior to Amendment Effective Date

A. Terminated Agreements not to be Assigned

	1.	 	[***]
	 
	2.	 	[***]
	 
	3.	 	[***]
	 
	4.	 	[***]

B. Other Agreements not to be Assigned (involving other GSK compounds in addition to
SB-992 and SB-921)

[***]

C. Ongoing Agreements to be Assigned

	1.	 	[***]

 

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

32

 

APPENDIX VII

[***] NOTICE – [***]

[ATTACHED]

[***]

 

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

33exv10w1

 

Exhibit 10.1

Employment Agreement

     This Employment Agreement (this “Agreement”), entered into as of November 27, 2006, and
made effective as of November 27, 2006 (the “Appointment Date”), is by and among, LIN TV Corp., a
Delaware corporation (“Parent”), and LIN Television Corporation, a Delaware corporation with its
headquarters in Providence, Rhode Island, and a wholly-owned subsidiary of the Parent (the
“Company” and, together with Parent, the “LIN Companies”), and Bart Catalane, an individual whose
current residence is 33 Benson’s Point Court, Stony Point, New York 10980 and who anticipates
relocating to the greater Providence, Rhode Island area (the “Executive”).

RECITALS:

     Whereas, the board of directors of Parent (the “Board of Parent”) and the board of
directors of the Company, respectively, appointed Executive to the offices of Senior Vice President
Chief Financial Officer of each of the LIN Companies, which appointment shall become effective on
the Appointment Date;

     Whereas, each of Parent and the Company desire that the Company employ Executive as Senior
Vice President Chief Financial Officer of the Company, and Executive desires to be employed by the
Company in such position, in accordance with the terms and subject to the conditions provided
herein;

     Now, Therefore, in consideration of the foregoing and of the respective covenants and
agreements of the parties herein contained, the parties hereto, intending to be legally bound
hereby, agree as follows:

     1. Employment. The Company shall employ Executive and Executive hereby agrees to
serve the LIN Companies on the terms and conditions set forth herein.

     2. Service Period. The term of this Agreement and Executive’s employment hereunder
(the “Service Period”) shall be deemed to have commenced as of the Appointment Date and shall
continue thereafter until the effective date of termination pursuant to the terms and subject to
the conditions of this Agreement. For the avoidance of doubt, Executive’s employment will be on a
continuous basis unless Executive’s employment is terminated pursuant to Section 8 of this
Agreement.

- 1 -

 

     3. Position and Duties. During the Service Period, Executive shall serve as the
Senior Vice President Chief Financial Officer of each of the LIN Companies, reporting to the
President and CEO of each of the LIN Companies and, subject to the LIN Companies’ respective
Certificates of Incorporation and By-Laws, shall have such authority and duties as may be granted
or assigned from time to time by the President and CEO of the LIN Companies, which such duties
shall initially include direct reports in the Controllership, Financial Planning and Budgeting,
Tax, Information Technology and Human Resources areas.

     4. Attention and Effort. Executive covenants and agrees, at all times during the
Service Period, to devote his full business-time efforts, energies and skills to his duties as
contemplated by Section 3 above, to serve each of the LIN Companies diligently and to the best of
Executive’s ability and at all times to act in compliance with the rules, regulations, policies and
procedures of the LIN Companies as shall be in effect from time to time. Executive further
covenants and agrees that he will not, directly or indirectly, engage or participate in any other
business, profession or occupation for compensation or otherwise at any time during the Service
Period which conflicts with the business of the LIN Companies, without the prior written consent of
the Board of Parent; provided, that nothing herein shall preclude Executive from accepting
appointment to or continuing to serve on any board of directors or trustees of any charitable or
not-for-profit organization or from managing his personal, financial or legal affairs; provided, in
each case, and in the aggregate, that such activities do not materially conflict or interfere with
the performance of Executive’s duties hereunder or conflict with Sections 10, 11 or 12 of this
Agreement in any material respect. Subject to the foregoing, the parties acknowledge and agree
that Executive may continue to serve on the board of directors of Ziff Davis Media, Inc.

     5. Compensation and Other Benefits.

          (a) During the Service Period, Executive shall be paid by the Company an annual base
salary in an amount equal to Two Hundred Fifty Thousand Dollars ($250,000) (the “Base Salary”),
payable in accordance with the Company’s normal payroll practices. The Base Salary shall be
reviewed by the Compensation Committee of the Board of Parent no less often than once each calendar
year and may be increased, but not decreased, based on such a review.

          (b) Solely with respect to the portion of the Service Period, if applicable, commencing on
January 1, 2007, Executive shall be eligible to receive, in addition to the Base Salary described
above, an annual bonus payment (a “Performance Bonus”) in an amount equal to 60% of Base Salary for
such year (a “Performance Bonus Amount”) to be determined by December 31, 2007, and thereafter, the
last day of each calendar year during the Service Period, or as soon thereafter as practicable, but
in no event later than March 15 of the subsequent calendar year, as follows:

- 2 -

 

               (i) Executive shall be eligible to receive a bonus payment in an amount up to 25% of the
Performance Bonus Amount, which bonus payment, if any, shall be determined in the sole discretion
of the President and CEO of the LIN Companies and the Compensation Committee, based upon such
factors as each may determine to be relevant, which may include the performance of the LIN
Companies and Executive, general business conditions, and the relative achievement by Executive or
the LIN Companies of any goals established by the President and CEO, the Board of Parent or the
Compensation Committee.

               (ii) Executive shall be eligible to receive a bonus payment calculated as set forth in this
paragraph (ii) using a baseline bonus amount equal to seventy-five percent (75%) of the
Performance Bonus Amount (the “Results Bonus Base Amount”). The amount of the bonus awarded
to Executive, if any, under this paragraph (ii) (the “Results Bonus”) shall be an amount calculated
as a percentage of the Results Bonus Base Amount (the “Results Bonus Percentage”). The Results
Bonus Percentage shall be the percentage set forth on Schedule 5(b)(ii)(A) hereto that corresponds
to the respective percentages by which Parent has achieved the EBITDA and revenue targets
established by the Board of Parent for the applicable year, as determined by the Compensation
Committee of the Board of Parent (the “Budget Target”). The parties acknowledge and agree that for
convenience of reference Schedule 5(b)(ii)(B) shows for illustrative purposes the amount of the
Results Bonus corresponding to each Results Bonus Percentage reflected on Schedule 5(b)(ii)(A), and
the parties further acknowledge that such figures shall be subject to adjustment in the event of
any change to the Results Bonus Base Amount and, in the event of any conflict between Schedules
5(b)(ii)(A) and 5(b)(ii)(B), Schedule 5(b)(ii)(A) shall control.

               (iii) For the avoidance of doubt, the parties acknowledge and agree that no Performance Bonus
shall apply with respect to the Service Period ending December 31, 2006.

     6. Benefits and Expenses. Executive shall receive from the Company such other
benefits as may be granted to senior management of the Company generally, including health, dental,
life and disability insurance and vacation benefits. In addition, Executive shall be provided with
an automobile allowance in accordance with the Company’s then-current plan. The Company shall
reimburse Executive for all reasonable travel, entertainment and other expenses which Executive may
incur in regard to the business of Company or Parent, in accordance with and subject to the
limitations of the Company’s standard practices and policies and Executive’s presentation of such
documents and records as Company shall require to substantiate such expenses. Executive shall be
entitled to the same vacation benefits as are generally available to other senior executives of the
Company, but in no event less than three (3) weeks during each one-year period during the Service
Period.

     7. Incentive Equity. Parent shall grant to Executive an option (the “Option
Grant”), as of the Appointment Date, to purchase 100,000 shares of Parent’s Class A Common Stock,
par value $0.01 per share pursuant to the terms and subject to the conditions of the LIN TV Corp.
Amended and Restated 2002 Stock Plan (the “Option Plan”) and as further evidenced by that certain
Nonqualified Stock Option Letter Agreement, dated on or about the date hereof, by and between
Parent and Executive (the “Option Agreement”). The Option Grant shall be on the terms and
conditions of the Option Plan and the Option Agreement; provided, however, that (a) for purposes of
the Option Grant, and notwithstanding anything to the contrary contained in the Option Agreement,
the term “Cause” shall have the meaning ascribed to such term in this Agreement; and (b) in the
event of a Change in Control (as hereinafter defined in Section 24) (and notwithstanding the
definition of such term in the Option Agreement) the vesting of the Option Grant shall accelerate
and shall be deemed fully vested as of such Change in Control. For the avoidance of doubt, the
vesting of the Option Grant shall not accelerate in the event of any termination of this Agreement,
including upon a termination Without Cause or with Good Reason; provided, however, that if
Executive is able to demonstrate that (i) he was terminated by the LIN Companies Without Cause

- 3 -

 

in anticipation of a Change in Control and (ii) such anticipated Change in Control occurs, then
Executive will be deemed for purposes of the Option Grant, to have remained employed through the
consummation of the Change in Control, and the vesting of the Option Grant shall accelerate as
described in the preceding sentence.

     8. Termination. This Agreement and the employment of Executive hereunder may be
terminated as follows:

          (a) By the LIN Companies for “Cause.” Subject to such other terms of this
Agreement, the LIN Companies may terminate this Agreement and the employment of Executive hereunder
for “Cause” by action of the Board of Parent if the Executive:

               (i) has been convicted of, or entered a pleading of guilty or nolo contendre (or its
equivalent in the applicable jurisdiction) to any criminal offense (whether or not in connection
with the performance by Executive of his obligations and duties under this Agreement), excluding
offenses under road traffic laws, or misdemeanor offenses, that are subject only to a fine or
non-custodial penalty;

               (ii) has committed an act or omission involving dishonesty or fraud;

               (iii) has willfully refused or willfully failed to perform his obligations and duties under
this Agreement or the duties properly assigned to him in accordance with the terms and conditions
of this Agreement, and Executive has the physical capacity to perform such obligations or duties;
or

               (iv) has engaged in gross negligence or willful misconduct with respect to any of the LIN
Companies or any of their affiliates or subsidiaries.

          (b) By the LIN Companies “Without Cause.” The LIN Companies may terminate this
Agreement and the employment of Executive hereunder at any time, in Parent’s sole discretion, for
any reason whatsoever or for no reason, which termination shall constitute a termination “Without
Cause.”

          (c) By Executive for Good Reason. Executive may terminate this Agreement and his
employment hereunder in the event of any of the following (each of which shall constitute “Good
Reason”) and the LIN Companies shall have failed to have reasonably remedied such condition within
thirty (30) days following written notice from Executive setting forth in reasonable detail the
condition giving rise to such Good Reason:

               (i) either of the LIN Companies fails to perform its respective obligations or breaches any of
its covenants or warranties under this Agreement;

               (ii) the relocation of Executive’s primary office to a location that is more than thirty-five
(35) miles from both of (A) the Company’s headquarters in Rhode Island, unless such office is moved
closer to Executive’s primary residence at the time of such relocation, and (B) Executive’s
residence at the time of such relocation; or

               (iii) the Board of Parent or the board of directors of the Company approves, without
Executive’s consent or for reasons other than those set forth in Section 8(a), (A) a reduction in
Executive’s Base Salary or the Performance Bonus Amount, or (B) the assignment to Executive of any
duties inconsistent in any material respect with, or effect a material diminution of,

- 4 -

 

Executive’s
duties, titles, offices, or responsibilities (including direct-reporting responsibilities) with the
Parent or the Company, or any demotion of Executive from, or any failure to reelect or reappoint
Executive to any of such positions (except in connection with the termination of Executive’s
employment for disability or Cause or as a result of Executive’s death); provided, however, that
with respect to the foregoing clause (B) if subsequent to a Change in Control (as hereinafter
defined in Section 24), Executive maintains over the business of the Company substantially the same
authority and responsibility with respect thereto that he held prior to such Change in Control, the
requirement that the Executive
report to officers or the board of parent companies, or a change in the title of Executive,
shall not of itself constitute “Good Reason.”

          (d) By Executive Without Good Reason. Executive may terminate this Agreement and
his employment hereunder at any time, for any reason, upon giving to the LIN Companies thirty (30)
days’ written notice of termination of this Agreement and Executive’s employment hereunder pursuant
to this Section 8(d) (“Notice of Resignation”), during which notice period Executive’s employment
and performance of services will continue; provided, however, that Parent may, upon notice to
Executive and without reducing Executive’s compensation during such period, excuse Executive from
any or all of his duties during such period. The effective date of the termination of Executive’s
employment hereunder shall be the date specified in the Notice of Resignation delivered in
accordance with this Section 8(d).

          (e) Automatic Termination Upon Death or Disability. This Agreement and Executive’s
employment hereunder shall terminate automatically upon the death or “total disability” of
Executive. The term “total disability” as used herein shall mean Executive’s inability, with or
without reasonable accommodations, to perform the duties of Executive contemplated by Section 3
hereof for a period of, or periods aggregating, six (6) months in any twelve (12) month period as a
result of physical or mental illness, loss of legal capacity or any other cause beyond Executive’s
control, unless Executive is granted a leave of absence by the Board of Parent. All determinations
as to whether Executive has suffered total disability due to physical or mental illness, loss of
capacity or any other medical cause shall be made by a physician who is mutually agreed upon by
Executive and a majority of the members of the Nominating and Corporate Governance Committee of the
Board of Parent. Executive and the LIN Companies hereby acknowledge that Executive’s ability to
perform the duties set forth in Section 3 hereof is of the essence of this Agreement. Termination
under this Section 8(e) shall be deemed to be effective (i) as of the time of Executive’s death or
(ii) immediately upon determination of Executive’s total disability, as defined above, by a
physician mutually agreeable to Executive and the Board of Parent.

     9. Severance for Termination Without Cause or Resignation With Good Reason.

          (a) Subject to the terms and conditions of this Section 9 set forth below, solely in the
event that this Agreement and Executive’s employment hereunder is terminated (y) by the LIN
Companies Without Cause pursuant to the terms and subject to the conditions of Section 8(b) hereof;
or (z) by Executive with Good Reason pursuant to the terms and subject to the conditions of Section
8(c) hereof, then:

               (i) The Company shall pay to Executive a severance payment (the “Severance Payment”) in an
amount equal to the sum of (A) Executive’s Base Salary in effect at the time of such termination
and (B) the aggregate amount, if any, of the Performance Bonus most recently awarded to Executive
pursuant to Section 5(b) prior to such termination; provided, however, that if such termination
occurs prior to the award of Executive’s initial Performance Bonus under this Agreement (or the
determination that no such award shall be made), the payment under this clause (B) shall be the
maximum applicable Performance Bonus that would otherwise be due had Executive remained employed
with the Company. The Severance Payment shall be due and payable in twenty six (26) substantially

- 5 -

 

equal bi-weekly payments following such termination; provided, however, that the payment of the
portion of the Severance Payment comprised of any Performance Bonus based upon the determination of
the achievement of certain results may be deferred as necessary until the Company has made the
necessary determinations.

               (ii) In addition, during the twelve-month period following a termination giving rise to the
Severance Payment, the Company shall continue to pay the employer’s
normal portion of the costs of Executive’s health and dental insurance premiums in an amount
consistent with that paid on the date of termination, provided that Executive chooses to
participate in COBRA or a similar health insurance continuation program and provides the Company
with proof of such participation. If Executive chooses to receive COBRA coverage from the
Company’s group health plans during this twelve-month period, such coverage shall count toward the
maximum coverage period permitted under such plan.

          (b) The payment of the Severance Payment and the provision of the benefits described in this
Section 9 are expressly contingent on Executive’s execution of a standard severance and release
agreement containing only a release of any and all claims by him against the LIN Companies and all
predecessors, successors, affiliates and subsidiaries thereof, except for claims relating to (i)
the Severance Payment and other post-employment payments and benefits due pursuant to the terms and
subject to the conditions of this Agreement; (ii) claims for benefits under the employee benefit
plans of the LIN Companies in which Executive participates, and (iii) claims for indemnification or
insurance, if applicable, arising following his employment. Notwithstanding anything to the
contrary contained herein, Employer retains the right to terminate the initiation or continuation
of the Severance Payment and other benefits described in this Section 9 and to recover from
Executive any and all amounts previously paid (as well as to pursue any other remedies available at
law or in equity) if it discovers that Executive engaged in any fraud, theft, embezzlement, serious
or substantial misconduct materially injuring the LIN Companies’ reputation, or gross negligence
while employed by the Company or if Executive materially breaches this Agreement, including any
breach by Executive of his obligations and covenants under Sections 10, 11, or 12 hereof.

          (c) Subject to such adjustments as may be necessary in accordance with the proviso set forth
in the last sentence of Section 9(a)(i), all payments made under this Section 9 shall be made to
Executive at the same interval as payments of salary were made to Executive immediately prior to
termination. Notwithstanding the foregoing or anything to the contrary contained herein, if the
Company determines that Executive is a “Specified Employee” within the meaning of Section
409A(a)(2)(B)(i) of the Code (as hereinafter defined), or any successor thereto or as such may be
amended hereafter (“Section 409A”), then to the extent necessary to satisfy the requirements of
Section 409A, any portion of the severance compensation under this Section 9 that shall constitute
deferred compensation within the meaning of Section 409A shall not be due and payable to Executive
until the date that is six (6) months after the date of termination, if necessary to avoid tax
penalties under Section 409A. In the event of such delay in payment, on the day following the
expiration of such six month period Executive shall be paid the delayed portion of the severance
compensation plus interest for the period of such delay, which interest shall be calculated at a
rate equal to the interest rate then earned by the LIN Companies’ excess cash balances on bank
deposit.

          (d) Except as expressly provided in paragraph (a) above, upon the termination of
this Agreement and Executive’s employment hereunder (including for Cause or without Good Reason, or
upon death or total disability pursuant, respectively, to Sections 8(a), 8(d) and 8(e)), Executive
shall not be entitled to any payments hereunder, other than for Accrued Obligations, which the
Company shall pay to Executive in a lump sum immediately following such termination. For purposes
of this Agreement, “Accrued Obligations” shall mean the sum of (i) any portion of Executive’s
accrued

- 6 -

 

but unpaid Base Salary through the date of death or termination of employment, as the case
may be; (ii) any accrued but unpaid vacation or expense reimbursements; (iii) any then declared but
unpaid Performance Bonus, as applicable, with respect to the fiscal year preceding the fiscal year
in which the termination occurs; (iv) any (A) Performance Bonus for the fiscal year in which the
termination occurs, as applicable, pro rated for service through the date of termination (and, if
not determined as of the date of termination, such payment, if any, to be due and payable
reasonably following the determination of such amounts) or (B) Performance Bonus earned for that
year if termination occurs at the end of the year but prior to
payment; provided, however, Executive shall receive no payment under (A) or (B) upon a
termination by the LIN Companies for Cause; and (v) any compensation previously earned but deferred
by Executive (together with interest, to the extent and in the manner applicable pursuant to terms
and subject to the conditions of Section 9(c)) prior to the date of termination that has not yet
been paid.

10. Non-Disclosure.

          (a) Executive acknowledges that during the period of his employment with the Company
during the Service Period he will have, access to trade secrets and other confidential or
proprietary information of the LIN Companies and their respective affiliates and subsidiaries
(“Confidential Information”). Executive acknowledges that as used herein, Confidential Information
includes, but is not limited to, all methods, processes, techniques, practices, pricing
information, billing histories, customer lists or requirements, employee lists, salary information,
personnel matters, financial data, operating results, plans, contractual relationships, projections
for new business opportunities for new or developing businesses, research, reports, and
technological innovations in any stage of development. Confidential Information also includes, but
is not limited to, all notes, records, software, drawings, handbooks, manuals, policies, contracts,
memoranda, sales files, or any other documents generated or compiled by any employee of the LIN
Companies or any of its respective affiliates or subsidiaries. Notwithstanding the foregoing,
Confidential Information shall not include any data or information that has been voluntarily
disclosed to the public or the LIN Companies’ respective competitors by either of the LIN Companies
(except where such public disclosure has been made by Executive or another without authorization)
or that has been independently developed and disclosed by others, or that otherwise enters the
public domain through lawful means.

          (b) Executive agrees that, both during the Service Period and after the termination of his
employment hereunder for any reason, he will use his reasonable best efforts and utmost diligence
to preserve, protect, and prevent the disclosure of such Confidential Information, and that he will
not, either directly or indirectly, use, misappropriate, disclose or aid any other person in
disclosing such Confidential Information, unless done so on behalf of the LIN Companies or to the
extent required by law.

          (c) All Confidential Information is, and shall remain, the exclusive property of the LIN
Companies, and Executive hereby covenants and agrees that he shall promptly return all such
information to the LIN Companies upon termination of this Agreement or at any other time when
requested by the LIN Companies.

     11. Non-Competition.

          (a) During the Service Period and for one (1) year after the termination of
this Agreement for any reason, whether with or Without Cause or whether upon resignation with or
without Good Reason, Executive shall not Compete (as hereinafter defined) with any material
business then conducted by the LIN Companies or their respective affiliates or subsidiaries
(collectively, “LIN”) without the prior written consent of the LIN Companies; except that,
notwithstanding this Section 11, Executive may perform any duties on behalf of the LIN Companies as
the Board of Parent shall approve

- 7 -

 

and direct. For purposes of this Agreement, the term “Compete”
shall mean engaging in a business as a more than five percent (5%) stockholder or other holder of a
five percent (5%) or greater equity interest of any Person (as hereinafter defined in Section 24)
(whether direct or indirect, including the right to acquire such percentage equity interest), as an
employee, a partner, an agent, a consultant, or any other individual representative capacity of, to
or for any Person, as an officer of any Person, or a member of the board of directors, board of
managers, or other managing body of such Person (unless Executive’s duties, responsibilities, and activities, including supervisory activities, for or on behalf of such
Person or in such business are not related in any way to such “competitive” activity) if it
involves:

               (i) owning or Managing (as defined below in Section 24) one or more local television stations
in any designated market area in which the Company or any direct or indirect subsidiary thereof (a
“Subsidiary”) owns or Manages, one or more local television stations (the “Restricted Markets”); or

               (ii) rendering services or advice pertaining to the business or operation of
television stations in a Restricted Market, or on behalf of, any Person which is in competition
with the Company or any of its affiliates or subsidiaries.

          (b) Upon and subject to reasonable notice and information being provided to the LIN Companies
by Executive prior to Executive’s entering into a position or association which may cause Executive
to engage in activities in breach of paragraph (a) above, Parent will conduct a timely review of
such proposed position or association and notify Executive in writing regarding Parent’s view as to
whether Executive will thereby breach the terms and conditions of paragraph (a) above.

     12. Non-Solicitation. Executive agrees that, during the twelve (12) month period
immediately following termination of this Agreement, for whatever reason, with or without Cause or
whether by resignation with or without Good Reason, Executive shall not directly or indirectly
solicit, influence or entice, or attempt to solicit, influence or entice, or hire any executive,
employee, or consultant of LIN to cease his relationship with LIN or solicit, influence, entice or
in any way divert any customer, distributor, partner, joint venturer or supplier of LIN to
terminate such person’s relationship with LIN, in order to be employed by or do business with a
Person that Competes with the LIN Companies or with any other entity that derives benefit from the
production, marketing, broadcasting or other distribution or syndication of products, services,
programs or other content that compete with products then produced or services, programs or other
content then being provided, marketed, broadcast, distributed or syndicated by LIN or the
feasibility for production of which LIN is then actually studying or is preparing to market or is
developing; provided, however, that this Section 12 shall apply only within the geographic area set
forth in Schedule 12 hereto.

     13. Acknowledgment of Restrictive Covenants. Executive acknowledges that the
covenants specified in Sections 10, 11, 12, and 15 hereof (collectively, the “Protective
Provisions”) contain reasonable limitations as to time, geographic area, and scope of activities to
be restricted and that such promises do not impose a greater restraint on Executive than is
necessary to protect the goodwill, Confidential Information, trade secrets, customer and employee
relations, and other legitimate business interests of the LIN Companies. Executive also
acknowledges and agrees that any violation of the covenants set forth in the Protective Provisions
would bestow an unfair competitive advantage upon any Person, which might benefit from such
violation, and would necessarily result in substantial and irreparable damage and loss to the LIN
Companies.

- 8 -

 

     14. No Inconsistent Obligation. In order to induce the LIN Companies to enter into
this Agreement, Executive represents and warrants to each of the LIN Companies that neither the
execution nor the performance of this Agreement by Executive will violate or conflict in any way
with any other agreement to which Executive may be bound, or with any other duties imposed upon
Executive by corporate or other statutory or common law.

     15. Intellectual Property. Executive and the LIN Companies hereby covenant and
agree that all intellectual property of any kind, whether now or later created, developed or
produced, developed by Executive, whether directly or indirectly, in connection with services
rendered by Executive for or on behalf of the LIN Companies, or from the use of premises or
property owned, leased, licensed or contracted for by the LIN Companies, both prior to and
subsequent to the date of this Agreement, or otherwise developed by Executive during the Service
Period which is in any way related to the Company’s business, as conducted or proposed to be
conducted, shall be the property of the Company. Executive hereby assigns to the Company any and
all rights and interests he now has or may hereafter acquire in and to such intellectual property.

     16. Notice. For purposes of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a)
on the date of delivery when delivered by hand, (b) on the date of transmission when sent by
facsimile transmission during normal business hours with telephone confirmation of receipt, (c) one
day after dispatch when sent by reputable overnight courier maintaining records of receipt, or (d)
three days after dispatch when sent by registered or certified mail, postage prepaid, return
receipt requested, all addressed as set forth on Schedule 16 attached hereto or to such other
address as either party may have furnished to the other in writing in accordance herewith, except
that notices of change of address shall be effective only upon receipt.

     17. Injunctive Relief; Cumulative Rights. The parties agree that, without
limitation of the rights of the LIN Companies with respect to any other breach of this Agreement,
the harm to each of the LIN Companies arising from any breach by Executive of the Protective
Provisions could not adequately be compensated for by monetary damages, and accordingly each of the
LIN Companies shall, in addition to any other remedies available to it at law or in equity, be
entitled to seek and, if so ordered by a court of competent jurisdiction, obtain, preliminary and
permanent injunctive relief against such breach. Executive agrees that the various provisions of
this Agreement shall be construed as cumulative, and no one of them is exclusive of the other, or
exclusive of any rights allowed by law.

     18. Withholding. Anything in this Agreement to the contrary notwithstanding, all
payments required to be made by the Company hereunder to Executive shall be subject to the
withholding of such amounts relating to taxes as the Company may reasonably determine it is legally
required to withhold pursuant to any applicable law or regulation. In lieu of withholding such
amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for
payment of taxes and withholdings as required by law, provided it is satisfied that all
requirements of law affecting its responsibilities to withhold have been satisfied.

     19. No Waiver. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by Executive and such
officer or director as may be specifically designated by the Company. No waiver by either party
hereto at any time of any breach by the other party hereto of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar
provision or condition at the same or at any prior or subsequent time. Except where the context
otherwise requires,

- 9 -

 

wherever used the singular shall include the plural, the plural the singular,
the use of any gender shall be applicable to all genders and the word “or” is used in the inclusive
sense.

     20. Severability. If any covenant or provision hereof is determined to be void or
unenforceable in whole or in part, it shall not be deemed to affect or impair the invalidity of any
other covenant or provision, each of which is hereby declared to be separate and distinct. If any
provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted
to be only so broad as is enforceable. If any provision of this Agreement is declared invalid or unenforceable
for any reason other than overbreadth, the offending provision will be modified so as to maintain
the essential benefits of the bargain among the parties hereto to the maximum extent possible,
consistent with law and public policy.

     21. Amendment. No amendment, modification, waiver, termination or discharge of any
provision of this Agreement, or consent to any departure therefrom by either party hereto, shall in
any event be effective unless the same shall be in writing, specifically identifying this Agreement
and the provision intended to be amended, modified, waived, terminated or discharged and signed by
each of the LIN Companies and Executive, and each such amendment, modification, waiver, termination
or discharge shall be effective only in the specific instance and for the specific purpose for
which it is given. No provision of this Agreement shall be varied, contradicted or explained by
any oral agreement, course of dealing or performance or any other matter not set forth in an
agreement in writing and signed by each of the LIN Companies and Executive.

     22. Choice of Law and Forum. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Rhode Island. Employee hereby (a) submits to personal
jurisdiction in the State of Rhode Island for any action arising out of or in connection with this
Agreement; (b) waives any and all personal rights under the laws of any state to object to
jurisdiction within the State of Rhode Island; and (c) agrees that for any cause of action arising
out of or in connection with this Agreement, venue is solely proper in any state or federal court
within Rhode Island.

     23. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT,
ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT.

     24. Certain Definitions. The capitalized terms contained and used in this Agreement
which are defined below shall have the respective meanings ascribed to them as follows:

          (a) “Change in Control” shall mean the occurrence of any of the following events:

               (i) any sale, lease, exchange, or other transfer (in one transaction or series of related
transactions) of all or substantially all of the assets of Parent to any Person or group of related
Persons for purposes of Section 13(d) of the Exchange Act, other than one or more members of the
Shareholder Group;

               (ii) a majority of the Board of Parent shall consist of Persons who are not Continuing
Directors;

               (iii) the acquisition by any Person or Group (other than (A) one or more members of the
Shareholder Group or (B) with respect to a transferee of shares of Class C Common Stock, par value
$0.01 per share, of Parent, (1) one or more members of the Shareholder Group or (2) any

- 10 -

 

Person approved by an affirmative vote of no less than two-thirds of the disinterested members of the
Board of Parent) of the power, directly or indirectly, to vote or direct the voting of securities
having more than 50% of the ordinary voting power for the election of directors of Parent;

               (iv) the acquisition by any Person or Group of shares of the capital stock of Parent
representing in the aggregate more than 40% of the issued and outstanding shares of such
capital stock and, as of the time of such acquisition, no other Person or Group holds, in the
aggregate, a greater number of such shares of capital stock;

               (v) any sale, lease, exchange, or other transfer (in one transaction or series of related
transactions) of all or substantially all of the assets of the Company to any Person or group of
related Persons for purposes of Section 13(d) of the Exchange Act, other than to (A) a wholly-owned
subsidiary of Parent or the Company or (B) one or more members of the Shareholder Group; or

               (vi) Parent shall cease, whether directly or indirectly through one or more wholly-owned
subsidiaries, to have the power to vote or direct the voting of securities having more than 50% of
the ordinary voting power for the election of directors of the Company.

          (b) “Code” shall mean the Internal Revenue Code of 1986, as amended, and the
regulations or other guidelines of general applicability promulgated thereunder.

          (c) “Continuing Directors” shall mean any Person who (i) was a member of the Board of Parent
on the Appointment Date, (ii) is thereafter nominated for election or elected to the Board of
Parent with the affirmative vote of a majority of the Continuing Directors who are members of such
Board of Parent at the time of such nomination or election, or (iii) is a member of the Board of
Parent and also a member of the Shareholder Group.

          (d) “ Group” means any group of related Persons for purposes of Section 13(d) of the
Securities Exchange Act of 1934, as amended.

          (e) “Manage” (or “Managing”) means with respect to the business or operation of a
television station, (i) the provision of management services, (ii) the right to program, or select
a substantial portion of the programming of, such station, including through a local marketing
agreement, time brokerage agreement, joint sales agreement, shared services agreement, or other
similar agreements (collectively, a “Services Agreement”), or (iii) the sale of, or the right to
sell, the advertising of such station through a Services Agreement.

          (f) “Person” shall mean an individual, a corporation, limited liability company, a
partnership, an association, a trust or any other entity or organization, including any other form
of business entity or any government or political subdivision or an agency or instrumentality
thereof.

          (g) “Shareholder Group” shall mean HM Capital Partners, LLC, and any Person
controlling, controlled by or under common control with it.

     25. Interpretation. The headings in this Agreement are inserted for convenience
only and shall not constitute a part hereof. Except where the context requires otherwise, whenever
used in this Agreement, the singular includes the plural, the plural includes the singular, the use
of any gender is applicable to all genders and the word “or” has the inclusive meaning represented
by the phrase “and/or.” The words “include” and “including” and variations thereof, shall not be
deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without
limitation.” A reference in this Agreement to a Section, Paragraph,

- 11 -

 

Exhibit or Schedule is to the
referenced Section, Paragraph, Exhibit or Schedule of this Agreement. The wording of this
Agreement shall be deemed to be the wording mutually chosen by the parties and no rule of strict
construction shall be applied against any party. Unless expressly provided otherwise, all dollar
figures in this Agreement are in the currency of the United States of America.

     26. Survival. The expiration or termination of this Agreement shall not relieve any
party of any obligations that may have accrued hereunder prior to such expiration or termination.
The provisions of Sections 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 shall survive the
expiration or termination of this Agreement except as otherwise specifically provided in such
Sections.

     27. Assignment. The terms and provisions of this Agreement shall inure to the
benefit of and be binding upon the LIN Companies and each of its respective successors and assigns.
Notwithstanding the foregoing or anything to the contrary contained herein, this Agreement may not
be assigned by the LIN Companies without Executive’s prior written consent unless the LIN
Companies retain joint and several liability with any of the LIN Companies’ assignee for the
financial obligations under this Agreement. This Agreement may not be assigned, in whole or in
part, by Executive without the written consent of each of the LIN Companies.

     28. Indemnification. At all times during and after the Service Period the LIN
Companies shall indemnify Executive pursuant to the terms and subject to the conditions of the
certificate of incorporation and bylaws, respectively, of each of the LIN Companies, as such are in
effect as of the Appointment Date. Executive shall have the benefit of continuing directors’ and
officers’ insurance coverage at levels no less favorable than those in effect from time to time for
members of the Board of Parent and the board of directors of the Company and other members of the
LIN Companies’ senior management.

     29. Relocation Matters. The Company shall reimburse Executive for all reasonable
temporary housing expenses incurred by Executive prior to his taking occupancy of permanent housing
facilities for a period not to exceed nine (9) months from the Appointment Date. The Company shall
reimburse Executive for all reasonable and customary moving expenses incurred by Executive in
connection with his relocation to the Providence, Rhode Island area as contemplated by this
Agreement. The reimbursement contemplated hereby shall be made by the Company reasonably promptly
following submission by Executive of reasonable documentation of such expenses.

     30. Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed to be an original but all of which together shall constitute one and the
same instrument. Each party hereto will receive by delivery or by facsimile or other electronic
transmission a duplicate original of the Agreement executed by each party, and each party agrees
that the delivery of the Agreement by facsimile or other electronic transmission will be deemed to
be an original of the Agreement so transmitted.

- 12 -

 

     31. Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior oral or written
agreements, commitments or understandings with respect to the matters provided for herein.

[The remainder of this page is intentionally blank; signature page follows.]

- 13 -

 

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

	 	 	 	 	 
	 	Executive: 	s/ Bart W. Catalane	 
	 	 	 
	 	Name: 	 Bart W. Catalane 	 
	 	 	 
	 	 	 
	 
	 	LIN TV Corp.

 	 
	 	By:  	s/ Denise Parent
 	 
	 	Name:  	Denise Parent 	 
	 	Title:  	Vice President, General Counsel and Secretary 	 
	 
	 	LIN Television Corporation

 	 
	 	By:  	s/Denise Parent
 	 
	 	Name:  	Denise Parent 	 
	 	Title:  	Vice President, General Counsel and Secretary 	 

 

 

	 	 	 	 	 

Schedule 12

Geographic Scope of Non-Solicitation

The geographic scope to which Section 12 shall apply shall be defined as all markets in the
United States of America.

 

 

Schedule 16

Notices

	 	 	 
	If to Executive:

	 	To the address as shall most currently appear on the records of the Company
	 
	 	 
	If to the LIN Companies:

	 	LIN Television Corporation
	 

	 	4 Richmond Square, Suite 200
	 

	 	Providence, RI 02906
	 

	 	Attn: General Counsel
	 

	 	Fax: (401) 454-2817

 

 

Exhibit 5(b)

Budget-Based Objectives

	 	 	 	 	 	 	 	 	 
	Catalane Bonus Matrix for 2007
	 	Annual Bonus	 	 	150,000	 
	 
	 	Percentage of Annual	 	 	75	%
	 
	 	 	 	 	 	 	 
	 
	 	Annual Bonus at 100% achievement	 	 	112,500	 

Schedule 5(b)(ii)(A)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Percentage:	 	 	 	 	Revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	94.0	%	 	 	95.0	%	 	 	96.0	%	 	 	97.0	%	 	 	98.0	%	 	 	99.0	%	 	 	100.0	%	 	 	101.0	%	 	 	102.0	%	 	 	103.0	%	 	 	104.0	%	 	 	105.0	%
	 
	89.0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%
	 
	90.0	%	 	 	0	%	 	 	25.0	%	 	 	30.0	%	 	 	35.0	%	 	 	40.0	%	 	 	45.0	%	 	 	50.0	%	 	 	55.0	%	 	 	60.0	%	 	 	65.0	%	 	 	70.0	%	 	 	75.0	%
	 
	91.0	%	 	 	0	%	 	 	28.8	%	 	 	34.0	%	 	 	39.3	%	 	 	44.5	%	 	 	49.8	%	 	 	55.0	%	 	 	60.3	%	 	 	65.5	%	 	 	70.8	%	 	 	76.0	%	 	 	81.3	%
	 
	92.0	%	 	 	0	%	 	 	32.5	%	 	 	38.0	%	 	 	43.5	%	 	 	49.0	%	 	 	54.5	%	 	 	60.0	%	 	 	65.5	%	 	 	71.0	%	 	 	76.5	%	 	 	82.0	%	 	 	87.5	%
	 
	93.0	%	 	 	0	%	 	 	36.3	%	 	 	42.0	%	 	 	47.8	%	 	 	53.5	%	 	 	59.3	%	 	 	65.0	%	 	 	70.8	%	 	 	76.5	%	 	 	82.3	%	 	 	88.0	%	 	 	93.8	%
	 
	94.0	%	 	 	0	%	 	 	40.0	%	 	 	46.0	%	 	 	52.0	%	 	 	58.0	%	 	 	64.0	%	 	 	70.0	%	 	 	76.0	%	 	 	82.0	%	 	 	88.0	%	 	 	94.0	%	 	 	100.0	%
	 
	95.0	%	 	 	0	%	 	 	43.8	%	 	 	50.0	%	 	 	56.3	%	 	 	62.5	%	 	 	68.8	%	 	 	75.0	%	 	 	81.3	%	 	 	87.5	%	 	 	93.8	%	 	 	100.0	%	 	 	106.3	%
	 
	96.0	%	 	 	0	%	 	 	47.5	%	 	 	54.0	%	 	 	60.5	%	 	 	67.0	%	 	 	73.5	%	 	 	80.0	%	 	 	86.5	%	 	 	93.0	%	 	 	99.5	%	 	 	106.0	%	 	 	112.5	%
	E
	97.0	%	 	 	0	%	 	 	51.3	%	 	 	58.0	%	 	 	64.8	%	 	 	71.5	%	 	 	78.3	%	 	 	85.0	%	 	 	91.8	%	 	 	98.5	%	 	 	105.3	%	 	 	112.0	%	 	 	118.8	%
	B
	98.0	%	 	 	0	%	 	 	55.0	%	 	 	62.0	%	 	 	69.0	%	 	 	76.0	%	 	 	83.0	%	 	 	90.0	%	 	 	97.0	%	 	 	104.0	%	 	 	111.0	%	 	 	118.0	%	 	 	125.0	%
	I
	99.0	%	 	 	0	%	 	 	58.8	%	 	 	66.0	%	 	 	73.3	%	 	 	80.5	%	 	 	87.8	%	 	 	95.0	%	 	 	102.3	%	 	 	109.5	%	 	 	116.8	%	 	 	124.0	%	 	 	131.3	%
	T
	100.0	%	 	 	0	%	 	 	62.5	%	 	 	70.0	%	 	 	77.5	%	 	 	85.0	%	 	 	92.5	%	 	 	100.0	%	 	 	107.5	%	 	 	115.0	%	 	 	122.5	%	 	 	130.0	%	 	 	137.5	%
	D
	101.0	%	 	 	0	%	 	 	66.3	%	 	 	74.0	%	 	 	81.8	%	 	 	89.5	%	 	 	97.3	%	 	 	105.0	%	 	 	112.8	%	 	 	120.5	%	 	 	128.3	%	 	 	136.0	%	 	 	143.8	%
	A
	102.0	%	 	 	0	%	 	 	70.0	%	 	 	78.0	%	 	 	86.0	%	 	 	94.0	%	 	 	102.0	%	 	 	110.0	%	 	 	118.0	%	 	 	126.0	%	 	 	134.0	%	 	 	142.0	%	 	 	150.0	%
	 
	103.0	%	 	 	0	%	 	 	73.8	%	 	 	82.0	%	 	 	90.3	%	 	 	98.5	%	 	 	106.8	%	 	 	115.0	%	 	 	123.3	%	 	 	131.5	%	 	 	139.8	%	 	 	148.0	%	 	 	156.3	%
	 
	104.0	%	 	 	0	%	 	 	77.5	%	 	 	86.0	%	 	 	94.5	%	 	 	103.0	%	 	 	111.5	%	 	 	120.0	%	 	 	128.5	%	 	 	137.0	%	 	 	145.5	%	 	 	154.0	%	 	 	162.5	%
	 
	105.0	%	 	 	0	%	 	 	81.3	%	 	 	90.0	%	 	 	98.8	%	 	 	107.5	%	 	 	116.3	%	 	 	125.0	%	 	 	133.8	%	 	 	142.5	%	 	 	151.3	%	 	 	160.0	%	 	 	168.8	%
	 
	106.0	%	 	 	0	%	 	 	85.0	%	 	 	94.0	%	 	 	103.0	%	 	 	112.0	%	 	 	121.0	%	 	 	130.0	%	 	 	139.0	%	 	 	148.0	%	 	 	157.0	%	 	 	166.0	%	 	 	175.0	%
	 
	107.0	%	 	 	0	%	 	 	88.8	%	 	 	98.0	%	 	 	107.3	%	 	 	116.5	%	 	 	125.8	%	 	 	135.0	%	 	 	144.3	%	 	 	153.5	%	 	 	162.8	%	 	 	172.0	%	 	 	181.3	%
	 
	108.0	%	 	 	0	%	 	 	92.5	%	 	 	102.0	%	 	 	111.5	%	 	 	121.0	%	 	 	130.5	%	 	 	140.0	%	 	 	149.5	%	 	 	159.0	%	 	 	168.5	%	 	 	178.0	%	 	 	187.5	%
	 
	109.0	%	 	 	0	%	 	 	96.3	%	 	 	106.0	%	 	 	115.8	%	 	 	125.5	%	 	 	135.3	%	 	 	145.0	%	 	 	154.8	%	 	 	164.5	%	 	 	174.3	%	 	 	184.0	%	 	 	193.8	%
	 
	110.0	%	 	 	0	%	 	 	100.0	%	 	 	110.0	%	 	 	120.0	%	 	 	130.0	%	 	 	140.0	%	 	 	150.0	%	 	 	160.0	%	 	 	170.0	%	 	 	180.0	%	 	 	190.0	%	 	 	200.0	%

Schedule 5(b)(ii)(B)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dollars:	 	 	 	 	Revenue
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	94.0	%	 	 	95.0	%	 	 	96.0	%	 	 	97.0	%	 	 	98.0	%	 	 	99.0	%	 	 	100.0	%	 	 	101.0	%	 	 	102.0	%	 	 	103.0	%	 	 	104.0	%	 	 	105.0	%
	 
	89.0	%	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 
	90.0	%	 	 	—	 	 	 	28,125	 	 	 	33,750	 	 	 	39,375	 	 	 	45,000	 	 	 	50,625	 	 	 	56,250	 	 	 	61,875	 	 	 	67,500	 	 	 	73,125	 	 	 	78,750	 	 	 	84,375	 
	 
	91.0	%	 	 	—	 	 	 	32,344	 	 	 	38,250	 	 	 	44,156	 	 	 	50,063	 	 	 	55,969	 	 	 	61,875	 	 	 	67,781	 	 	 	73,688	 	 	 	79,594	 	 	 	85,500	 	 	 	91,406	 
	 
	92.0	%	 	 	—	 	 	 	36,563	 	 	 	42,750	 	 	 	48,938	 	 	 	55,125	 	 	 	61,313	 	 	 	67,500	 	 	 	73,688	 	 	 	79,875	 	 	 	86,063	 	 	 	92,250	 	 	 	98,438	 
	 
	93.0	%	 	 	—	 	 	 	40,781	 	 	 	47,250	 	 	 	53,719	 	 	 	60,188	 	 	 	66,656	 	 	 	73,125	 	 	 	79,594	 	 	 	86,063	 	 	 	92,531	 	 	 	99,000	 	 	 	105,469	 
	 
	94.0	%	 	 	—	 	 	 	45,000	 	 	 	51,750	 	 	 	58,500	 	 	 	65,250	 	 	 	72,000	 	 	 	78,750	 	 	 	85,500	 	 	 	92,250	 	 	 	99,000	 	 	 	105,750	 	 	 	112,500	 
	 
	95.0	%	 	 	—	 	 	 	49,219	 	 	 	56,250	 	 	 	63,281	 	 	 	70,313	 	 	 	77,344	 	 	 	84,375	 	 	 	91,406	 	 	 	98,438	 	 	 	105,469	 	 	 	112,500	 	 	 	119,531	 
	 
	96.0	%	 	 	—	 	 	 	53,438	 	 	 	60,750	 	 	 	68,063	 	 	 	75,375	 	 	 	82,688	 	 	 	90,000	 	 	 	97,313	 	 	 	104,625	 	 	 	111,938	 	 	 	119,250	 	 	 	126,563	 
	E
	97.0	%	 	 	—	 	 	 	57,656	 	 	 	65,250	 	 	 	72,844	 	 	 	80,438	 	 	 	88,031	 	 	 	95,625	 	 	 	103,219	 	 	 	110,813	 	 	 	118,406	 	 	 	126,000	 	 	 	133,594	 
	B
	98.0	%	 	 	—	 	 	 	61,875	 	 	 	69,750	 	 	 	77,625	 	 	 	85,500	 	 	 	93,375	 	 	 	101,250	 	 	 	109,125	 	 	 	117,000	 	 	 	124,875	 	 	 	132,750	 	 	 	140,625	 
	I
	99.0	%	 	 	—	 	 	 	66,094	 	 	 	74,250	 	 	 	82,406	 	 	 	90,563	 	 	 	98,719	 	 	 	106,875	 	 	 	115,031	 	 	 	123,188	 	 	 	131,344	 	 	 	139,500	 	 	 	147,656	 
	T
	100.0	%	 	 	—	 	 	 	70,313	 	 	 	78,750	 	 	 	87,188	 	 	 	95,625	 	 	 	104,063	 	 	 	112,500	 	 	 	120,938	 	 	 	129,375	 	 	 	137,813	 	 	 	146,250	 	 	 	154,688	 
	D
	101.0	%	 	 	—	 	 	 	74,531	 	 	 	83,250	 	 	 	91,969	 	 	 	100,688	 	 	 	109,406	 	 	 	118,125	 	 	 	126,844	 	 	 	135,563	 	 	 	144,281	 	 	 	153,000	 	 	 	161,719	 
	A
	102.0	%	 	 	—	 	 	 	78,750	 	 	 	87,750	 	 	 	96,750	 	 	 	105,750	 	 	 	114,750	 	 	 	123,750	 	 	 	132,750	 	 	 	141,750	 	 	 	150,750	 	 	 	159,750	 	 	 	168,750	 
	 
	103.0	%	 	 	—	 	 	 	82,969	 	 	 	92,250	 	 	 	101,531	 	 	 	110,813	 	 	 	120,094	 	 	 	129,375	 	 	 	138,656	 	 	 	147,938	 	 	 	157,219	 	 	 	166,500	 	 	 	175,781	 
	 
	104.0	%	 	 	—	 	 	 	87,188	 	 	 	96,750	 	 	 	106,313	 	 	 	115,875	 	 	 	125,438	 	 	 	135,000	 	 	 	144,563	 	 	 	154,125	 	 	 	163,688	 	 	 	173,250	 	 	 	182,813	 
	 
	105.0	%	 	 	—	 	 	 	91,406	 	 	 	101,250	 	 	 	111,094	 	 	 	120,938	 	 	 	130,781	 	 	 	140,625	 	 	 	150,469	 	 	 	160,313	 	 	 	170,156	 	 	 	180,000	 	 	 	189,844	 
	 
	106.0	%	 	 	—	 	 	 	95,625	 	 	 	105,750	 	 	 	115,875	 	 	 	126,000	 	 	 	136,125	 	 	 	146,250	 	 	 	156,375	 	 	 	166,500	 	 	 	176,625	 	 	 	186,750	 	 	 	196,875	 
	 
	107.0	%	 	 	—	 	 	 	99,844	 	 	 	110,250	 	 	 	120,656	 	 	 	131,063	 	 	 	141,469	 	 	 	151,875	 	 	 	162,281	 	 	 	172,688	 	 	 	183,094	 	 	 	193,500	 	 	 	203,906	 
	 
	108.0	%	 	 	—	 	 	 	104,063	 	 	 	114,750	 	 	 	125,438	 	 	 	136,125	 	 	 	146,813	 	 	 	157,500	 	 	 	168,188	 	 	 	178,875	 	 	 	189,563	 	 	 	200,250	 	 	 	210,938	 
	 
	109.0	%	 	 	—	 	 	 	108,281	 	 	 	119,250	 	 	 	130,219	 	 	 	141,188	 	 	 	152,156	 	 	 	163,125	 	 	 	174,094	 	 	 	185,063	 	 	 	196,031	 	 	 	207,000	 	 	 	217,969	 
	 
	110.0	%	 	 	—	 	 	 	112,500	 	 	 	123,750	 	 	 	135,000	 	 	 	146,250	 	 	 	157,500	 	 	 	168,750	 	 	 	180,000	 	 	 	191,250	 	 	 	202,500	 	 	 	213,750	 	 	 	225,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]