Document:

Second Amendment to License Agreement and Termination of Services and Supply

 Exhibit 10.24 
  
 SECOND AMENDMENT TO LICENSE AGREEMENT 
 AND 
 TERMINATION OF SERVICES AND SUPPLY AGREEMENT 
  
 THIS SECOND AMENDMENT
TO LICENSE AGREEMENT AND TERMINATION OF SERVICES AND SUPPLY AGREEMENT (the
“Amendment”) is made and entered into as of September 13, 2002 (the “Signing Date”) and shall become effective as of the Amendment Effective Date (as defined in Section 8.1 below), by and between
CENTAUR PHARMACEUTICALS, INC., a Delaware corporation (“Centaur”) having its place of business at 1220 Memorex Drive, Santa Clara, CA 95050, and CUTANIX
CORPORATION, a Delaware corporation (“Cutanix”) having its place of business at 1220 Memorex Drive, Santa Clara, CA 95050. 
  
 RECITALS 
  
 WHEREAS, Centaur and Cutanix entered into that certain License Agreement (the “Agreement”), made effective as of
January 15, 1998 (the “Effective Date”) whereby Centaur granted to Cutanix licenses to certain Centaur proprietary technologies for use in developing products in specified dermatological fields; and 
  
 WHEREAS, Centaur and Cutanix entered
into that certain Supply and Services Agreement made effective as of January 15, 1998, as amended (the “Supply Agreement”); and 
  
 WHEREAS, Centaur and Cutanix desire to amend the terms of the Agreement as provided in this Amendment to clarify and modify the
scope of the Centaur proprietary technology to which Cutanix is granted rights under the Agreement; redefine the criteria allowing the parties to claim certain exclusive rights to develop and commercialize compounds within the Centaur compound
library licensed under the Agreement, as well as specify the compounds to which each party currently has such exclusive rights; and provide a mechanism for access by Cutanix to certain Centaur proprietary technology and compound samples; and

  
 WHEREAS, Centaur and
Cutanix desire to terminate the Supply Agreement. 
  
 NOW, THEREFORE, Centaur and Cutanix agree as follows: 
  

	1.	AMENDMENT OF THE AGREEMENT 

  
 Centaur and Cutanix hereby agree to amend the terms of the Agreement as
provided below, effective as of the Amendment Effective Date. To the extent that the Agreement is explicitly amended by this Amendment, the terms of the Amendment will control where the terms of the Agreement are contrary to or conflict with the
following provisions. Where the Agreement is not explicitly amended, the terms of the Agreement will remain in force, except where the resulting interpretation of the Agreement is in conflict with the provisions of this Amendment, in which case the
terms of this Amendment will control. Capitalized terms used in this Amendment that are not otherwise defined herein shall have the same meanings as such terms are defined in the Agreement. 

	[*]	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED. 

  

 1. 

 1.1 Amendment of Article 1 of the Agreement to add new Defined Terms. New
Sections 1.15 through 1.26 are hereby added to Article 1, reading in their respective entirety as follows: 
  
 “1.15 CENTAUR COMPOUND DATA means, for a particular CENTAUR LIBRARY COMPOUND, all information or data (if any) other than that
contained in the CENTAUR DATABASE, existing as of July 31, 2002 and owned by or licensed to CENTAUR, with the right as of July 31, 2002 to disclose and sublicense to CUTANIX, concerning biological activity, pharmacokinetic data, toxicology data and
synthetic chemistry methods. 
  
 1.16 CENTAUR
DATABASE means that certain database of information with respect to the CENTAUR LIBRARY COMPOUNDS (other than the EXCLUDED COMPOUNDS) containing those categories of chemical structure information and biological data as set forth in APPENDIX A
attached hereto owned or controlled by CENTAUR and existing as of July 31, 2002, but excepting any such information or data which CENTAUR is prohibited as of July 31, 2002 from disclosing due to an arrangement or agreement with any third party.
CENTAUR DATABASE shall, as of the Signing Date, not include any such information with respect to the EXCLUDED COMPOUNDS, provided, however, that such information may be included in the CENTAUR DATABASE under the circumstances set forth in Section
2.5(e). 
  
 1.17 CENTAUR LIBRARY COMPOUNDS
means all compounds contained in CENTAUR’S NRTTM Technology substance library as it exists as of July 31, 2002, which such compounds are listed in APPENDICES B-1, B-2, B-3, C, D, E, F, G, and H attached hereto. For clarity, the parties acknowledge and agree that the
CENTAUR LIBRARY COMPOUNDS shall expressly not include any additional compounds developed, identified or acquired by CENTAUR or to which CENTAUR may otherwise acquire rights after July 31, 2002. 
  
 1.18 DERIVATIVE LEAD COMPOUND has the meaning set forth in
Section 2.5. 
  
 1.19 ELECTED COMPOUND has the
meaning set forth in Section 2.5. 
  
 1.20
ELECTED LEAD COMPOUND has the meaning set forth in Section 2.5. 
  
 1.21 ELECTED METABOLITE means a METABOLITE for which a party has delivered a Notice. 
  
 1.22 ELECTED PRE-CLINICAL COMPOUND has the meaning set forth in Section 2.5. 
  
 1.23 ELECTED CLINICAL COMPOUND has the meaning set forth in
Section 2.5. 
  

 2. 

 1.24 EXCLUDED COMPOUNDS means those CENTAUR LIBRARY COMPOUNDS which have been declared
exclusive by CENTAUR as of July 31, 2002 as described in Section 2.5(f) and as listed in APPENDICES C, D, E, F and G.  
  
 1.25 METABOLITE means a compound that is identical to a CENTAUR LIBRARY COMPOUND and that is produced as a result of biochemical
transformations of a parent CENTAUR LIBRARY COMPOUND within an in vivo system or an in vitro cellular system, which such compound would be required to be reported as a metabolite of such parent CENTAUR LIBRARY COMPOUND to the FDA
pursuant to a filing submitted to such agency to permit development of the parent CENTAUR LIBRARY COMPOUND as a drug product under the United States Federal Food, Drug and Cosmetics Act (as of July 31, 2002) .  
  
 1.26 NOTICE means either a NOTICE OF LEAD, NOTICE OF
PRECLINICAL CANDIDATE, or a NOTICE OF HUMAN STUDIES (as such terms are defined in Section 2.5), as the context dictates.” 
  
 1.2 Amendment of Section 1.3 of the Agreement. Section 1.3 of the Agreement is hereby deleted and replaced in its entirety
with the following: 
  
 “1.3 CENTAUR
KNOW-HOW means (a) the CENTAUR DATABASE, and (b) the CENTAUR COMPOUND DATA.” 
  
 1.3 Amendment of Section 1.4 of the Agreement. Section 1.4 of the Agreement is hereby deleted and replaced in its entirety
with the following: 
  
 “1.4 CENTAUR PATENT
RIGHTS means (a) all (i) domestic and foreign patents and patent applications; and (ii) any reissues, divisionals, continuations and continuations-in-part of the patents and patent applications described in (i), in each case, which claim the
composition, method of use or method of synthesis of any CENTAUR LIBRARY COMPOUND (for clarity, including any EXCLUDED COMPOUND that is returned by CENTAUR to the CENTAUR COMPOUND LIBRARY pursuant to Section 2.5(e)), and that (b) CENTAUR is not
prohibited as of July 31, 2002 from licensing, sublicensing or otherwise transferring rights to CUTANIX as contemplated in this Agreement.” 
  
 1.4 Deletion of Section 1.7 and the term “CUTANIX KNOW-HOW”. Section 1.7 of the Agreement is hereby deleted and
the term “CUTANIX KNOW-HOW” is hereby deleted throughout the Agreement.  
  
 1.5 Amendment of Section 1.8 of the Agreement. Section 1.8 of the Agreement is hereby deleted and replaced in its entirety
with the following: 
  
 “1.8 CUTANIX PATENT
RIGHTS means (a) all (i) patents and patent applications and their foreign equivalents filed by CUTANIX as sole or joint owner (including joint ownership with CENTAUR) and any other existing or future United 

  

 3. 

 
States or foreign patents or patent applications which CUTANIX owns or may own or under which CUTANIX acquires licensing rights and has the right to
sublicense those rights to CENTAUR, and (ii) any divisions, continuations, or continuations-in-part or issued patents of the patent applications set forth above, including any reissue, reexamination or extension of such patents, any extended or
restored term, and any confirmation patent, registration patent, or patent of addition, and (b) that are also necessary or useful to develop, make, have made, use or sell any ELECTED COMPOUND that is returned by CUTANIX to the CENTAUR COMPOUND
LIBRARY pursuant to Section 2.5(e).” 
  
 1.6 Amendment of Article 2 of the Agreement.  
  
 (a) Section 2.3 of the Agreement is hereby deleted and replaced in its entirety with the following: 
  
 “2.3 CUTANIX grants to CENTAUR a worldwide, exclusive, royalty-free license (with the right to sublicense) under the CUTANIX PATENT RIGHTS, to
develop, make, have made, use or sell any ELECTED COMPOUND that is returned by CUTANIX to the CENTAUR COMPOUND LIBRARY pursuant to Section 2.5(e) in all fields other than the FIELD OF USE.” 
  
 (b) Section 2.4 of the Agreement is hereby deleted,
and any reference to Section 2.4 is hereby deleted throughout the Agreement. 
  
 (c) Section 2.5 of the Agreement is hereby deleted and replaced in its entirety as follows: 
  
 “2.5 Notwithstanding anything else to the contrary set forth in this Agreement (as amended by this Amendment), all rights under the CENTAUR PATENT
RIGHTS and CENTAUR KNOW-HOW which CENTAUR is legally required to exclude from this Agreement due to rights granted to Astra AB (“Astra”) pursuant to the Development, License and Marketing Agreement between Astra and CENTAUR effective as of
June 26, 1995, as amended (the “Astra Agreement”), shall be outside the scope of the license and other rights granted to CUTANIX hereunder this Agreement. 
  
 Notwithstanding anything else to the contrary set forth in this Agreement (as amended by this Amendment), as between the
parties, CENTAUR and CUTANIX acknowledge and agree that neither party shall have any exclusive access to, or any obligations to refrain from the use of, any CENTAUR LIBRARY COMPOUND which is in the public domain.  
  
 With respect to a particular CENTAUR LIBRARY COMPOUND available for
licensing to CUTANIX, or available for use by CENTAUR, in accordance with the terms of this Agreement (including without limitation Section 2.1), either CENTAUR or CUTANIX shall have the right to claim the exclusive right to use and access such
compound (an “ELECTED COMPOUND”) to pursue lead 

  

 4. 

 
development, pre-clinical development, clinical development and commercialization of such CENTAUR LIBRARY COMPOUND as follows:  
  
 (a) The party desiring the exclusive right to use a
particular ELECTED COMPOUND either as a lead compound itself, without modification, or to identify one or more additional or derivative lead compounds (the latter, each, a “DERIVATIVE LEAD COMPOUND”) shall deliver a written notice to the
other party specifying the particular CENTAUR LIBRARY COMPOUND for which it desires such exclusive right (a “NOTICE OF LEAD”). Upon delivery of a NOTICE OF LEAD, the particular ELECTED COMPOUND shall be designated an “ELECTED LEAD
COMPOUND” and removed from the CENTAUR LIBRARY for [*] from the time a party delivered such NOTICE OF LEAD hereunder and such party shall then have the exclusive right during this [*] term (the “LEAD TERM”) to pursue medicinal
chemistry or other activities to identify one or more DERIVATIVE LEAD COMPOUNDS based upon, or derived from, such ELECTED LEAD COMPOUND (the “LEAD ACTIVITIES”); provided that, the party with such exclusive right is diligently
engaged, itself or through Affiliates, third party collaborators or sublicensees, in LEAD ACTIVITIES with such ELECTED LEAD COMPOUND during such [*] term. A party shall be deemed to have failed such diligence obligation with respect to LEAD
ACTIVITIES for a particular ELECTED LEAD COMPOUND if it fails to pursue, itself or through Affiliates, third party collaborators or sublicensees, any LEAD ACTIVITIES with respect to such ELECTED LEAD COMPOUND for a consecutive [*] period within the
applicable LEAD TERM. 
  
 Furthermore, if a party fails to
deliver a NOTICE OF PRE-CLINICAL CANDIDATE (as defined below) with respect to such ELECTED LEAD COMPOUND within such [*] term, then such ELECTED LEAD COMPOUND shall be returned to the CENTAUR LIBRARY pursuant to Section 2.5(e). 
  
 (i) The parties understand and acknowledge that one
or more of the DERIVATIVE LEAD COMPOUNDS may in fact be a compound already identified as a CENTAUR LIBRARY COMPOUND, in which case, if a party desired to pursue such DERIVATIVE LEAD COMPOUND on an exclusive basis, it would need to file the requisite
NOTICE under this Section 2.5 with respect thereto. If such DERIVATIVE LEAD COMPOUND was not a compound already identified as a CENTAUR LIBRARY COMPOUND, then such party would be free to pursue such DERIVATIVE LEAD COMPOUND, without notice to the
other party, and without any rights of the other party to require such DERIVATIVE LEAD COMPOUND be returned to the CENTAUR LIBRARY. It is further understood that, in such event, the ELECTED LEAD COMPOUND which was used to discover such DERIVATIVE
LEAD COMPOUND would nonetheless be returned to the CENTAUR COMPOUND LIBRARY upon expiration of the [*] term referenced above. 
  
 (b) The party desiring the exclusive right to use an ELECTED COMPOUND to pursue preclinical development activities with respect thereto

  

 5. 

 
shall deliver a written notice to the other party specifying the particular CENTAUR LIBRARY COMPOUND for which it desires such exclusive right (a
“NOTICE OF PRE-CLINICAL CANDIDATE”). Upon delivery of a NOTICE OF PRE-CLINICAL CANDIDATE, the particular ELECTED COMPOUND shall be designated an “ELECTED PRE-CLINICAL COMPOUND” and removed from the CENTAUR LIBRARY for [*] from
the time such party delivered such NOTICE OF PRE-CLINICAL CANDIDATE hereunder and such party shall then have the exclusive right during this [*] term (the “PRE-CLINICAL TERM”) to pursue pharmacokinetic or toxicology studies or other
preclinical activities with respect to such ELECTED PRE-CLINICAL COMPOUND (the “PRE-CLINICAL ACTIVITIES”); provided that, the party with such exclusive right, itself or through Affiliates, third party collaborators or sublicensees,
is diligently engaged in PRE-CLINICAL ACTIVITIES with such ELECTED PRE-CLINICAL COMPOUND during the applicable PRE-CLINICAL TERM. A party shall be deemed to have failed such diligence obligation with respect to PRE-CLINICAL ACTIVITIES for a
particular ELECTED PRE-CLINICAL COMPOUND if it, itself or through Affiliates, third party collaborators or sublicensees, fails to pursue any PRE-CLINICAL ACTIVITIES with respect to such ELECTED PRE-CLINICAL COMPOUND for a consecutive [*] period
within the applicable PRE-CLINICAL TERM. 
  
 Furthermore, if a
party fails to deliver a NOTICE OF HUMAN STUDIES (as defined below) with respect to such ELECTED PRE-CLINICAL COMPOUND within such [*] term, then such ELECTED PRE-CLINICAL COMPOUND shall be returned to the CENTAUR LIBRARY pursuant to Section 2.5(e).

  
 (c) The party desiring the exclusive right
to use an ELECTED COMPOUND for clinical development activities or related regulatory or commercialization activities with respect thereto shall deliver a written notice to the other party specifying the particular CENTAUR LIBRARY COMPOUND for which
it desires such exclusive right and certifying with respect to such CENTAUR LIBRARY COMPOUND that such party, itself or through Affiliates, third party collaborators or sublicensees, has either (i) filed an investigational new drug application (an
“IND”) with the United States Food and Drug Administration (or made an equivalent non-United States filing) as necessary to begin clinical testing for such ELECTED CLINICAL COMPOUND, or (ii) submitted a protocol for conducting a human
clinical trial to an institutional review board (or foreign equivalent) (a “NOTICE OF HUMAN STUDIES”). Upon delivery of a NOTICE OF HUMAN STUDIES, the particular ELECTED COMPOUND shall be designated an “ELECTED CLINICAL COMPOUND”
and shall be removed from the CENTAUR LIBRARY for so long as the party with exclusive rights continues, itself or through Affiliates, third party collaborators or sublicensees, to diligently pursue clinical development, regulatory, commercialization
or other related activities with such compound (the “CLINICAL/COMMERCIAL ACTIVITIES”). Such diligence obligation includes the requirement that, within [*] of delivering a NOTICE OF HUMAN STUDIES for a particular ELECTED COMPOUND, the party
delivering such NOTICE OF HUMAN STUDIES has 

  

 6. 

 
begun the testing in humans, itself or through Affiliates, third party collaborators or sublicensees, of such ELECTED COMPOUND.  
  
 (d) Either party may deliver a NOTICE and thus have
exclusive rights to, a maximum of [*] ten (10) specific ELECTED COMPOUNDS at any one time during the term of this Agreement; provided that, once a party, itself or through Affiliates, third party collaborators or sublicensees, initiates a
clinical trial with any ELECTED COMPOUND, it and all related METABOLITES shall no longer count towards this maximum limit unless such party, itself or through Affiliates, third party collaborators or sublicensees, fails to diligently pursue
CLINICAL/COMMERCIAL ACTIVITIES with respect to such ELECTED COMPOUND as set forth in subsection (c) above. 
  
 (i) Subject to subsection (e) below, the EXCLUDED COMPOUNDS shall not be counted towards CENTAUR’S limit of [*] ELECTED COMPOUNDS,
and [*] shall not count towards CUTANIX’S limit of [*] ELECTED COMPOUNDS. 
  
 (ii) The party delivering a NOTICE for an ELECTED COMPOUND shall have the first right to deliver a NOTICE for any METABOLITES of such
ELECTED COMPOUND, however any such ELECTED METABOLITE shall count towards such party’s limit of [*] ELECTED COMPOUNDS, except as set forth in subsection (d) above.  
  
 (e) Subject to Article 11, if a party: (i) ceases, itself or through Affiliates, third party collaborators
or sublicensees, to diligently engage in such activities as described in subsections (a) through (d) above during the period of exclusivity with respect to a particular ELECTED COMPOUND (including without limitation any EXCLUDED COMPOUND or [*]);
(ii) fails to deliver to the other party a NOTICE OF PRE-CLINICAL CANDIDATE or a NOTICE OF HUMAN STUDIES within the applicable two (2) year period as described in subsection (a) or (b); (iii) wishes to return such ELECTED COMPOUND to the CENTAUR
LIBRARY for any reason; or (iv) fails to provide the other party with a written report pursuant to subsection (h) below upon proper request therefor, then such ELECTED COMPOUND shall be returned to the CENTAUR LIBRARY and shall no longer be deemed
an ELECTED COMPOUND. For clarity, the diligence obligations described in this subsection (e) do not apply to any ELECTED METABOLITE related to an ELECTED COMPOUND. However, any such ELECTED METABOLITE must be returned to the CENTAUR COMPOUND LIBRARY
upon the return (for any reason) of the ELECTED COMPOUND to which it relates, unless the returning party chooses such ELECTED METABOLITE as an ELECTED COMPOUND in accordance with this Section 2.5. 
  
 In addition, in the event any EXCLUDED COMPOUND is returned to the CENTAUR
COMPOUND LIBRARY pursuant to this subsection (e), the CENTAUR DATABASE shall thereafter be deemed to include, with respect to such EXCLUDED COMPOUND, those categories of chemical structure information and biological data as set forth in APPENDIX A
attached hereto 

  

 7. 

 
owned or controlled by CENTAUR and existing as of July 31, 2002, but excepting any such information or data which CENTAUR is prohibited from disclosing due
to an arrangement or agreement with any third party. Such information shall be promptly delivered to CUTANIX (in the form of an ISIS® database file and a Microsoft® Excel® spreadsheet). 
  
 Furthermore, the returning party shall not have the right to deliver a subsequent NOTICE for the returned compound for a period of [*] following such return. However, the other party shall have the right to deliver a
NOTICE for such compound at any time after its return to the CENTAUR LIBRARY. 
  
 (f) Effective as of the Signing Date, the parties hereby acknowledge and agree that CENTAUR has delivered a NOTICE with respect to each
of those compounds specified below (collectively, the “EXCLUDED COMPOUNDS”): 
  
 (i) CENTAUR has delivered a NOTICE OF LEAD for the [*] series of [*] compounds as listed in APPENDIX C attached hereto; 
  
 (ii) CENTAUR has delivered a NOTICE OF PRE-CLINICAL
CANDIDATE for [*] and its METABOLITES as listed in APPENDIX D attached hereto, and for [*] and its METABOLITES as listed in APPENDIX E attached hereto; and 
  
 (iii) CENTAUR has delivered a NOTICE OF HUMAN STUDIES for [*] and its METABOLITES as listed in APPENDIX F attached hereto, and [*] and
its METABOLITES as listed in APPENDIX G attached hereto. 
  
 (g) As of the Signing Date, the parties hereby acknowledge and agree that CUTANIX has delivered a NOTICE OF HUMAN STUDIES for [*] as listed in APPENDIX H attached hereto. 
  
 (h) Commencing on the first anniversary of the Amendment
Effective Date, either party shall have the right, no more often than once each calendar year, to request in writing that the other party: (1) provide a written report summarizing such other party’s progress towards satisfying the diligence
obligations set forth in Section 2.5(a), 2.5 (b) or 2.5 (c), respectively, with respect to all such party’s ELECTED COMPOUNDS; and/or (2) certify in writing that such party is in compliance with its diligence obligations as set forth in Section
2.5(a), 2.5(b) or 2.5(c), respectively. Such written report and/or certification shall be provided within sixty (60) days of receiving a written request for such.” 
  
 1.7 Amendment of Section 4.1 of the Agreement. Section 4.1 of the Agreement is hereby deleted
and replaced in its entirety with the following: 
  
 “4.1 CUTANIX represents and warrants to CENTAUR that as of the effective date of this Agreement it has the right and corporate authority to grant the license granted under Section 2.3.” 
  

 8. 

 1.8 Amendment of Article 5 of the Agreement.  
  
 (a) Section 5.1 of the Agreement is hereby deleted
and replaced in its entirety with the following: 
  
 “5.1
During the term of this Agreement, CUTANIX will disclose to CENTAUR on an ongoing basis all CUTANIX PATENT RIGHTS licensed hereunder.” 
  
 (b) Section 5.2 of the Agreement is hereby deleted and replaced in its entirety with the following: 
  
 “5.2 CENTAUR shall: (a) deliver to CUTANIX an electronic version of
the CENTAUR DATABASE (in the form of an ISIS®
database file and a Microsoft® Excel® spreadsheet) upon the Signing Date, at CENTAUR’S
reasonable expense; and (b) where practical, make available for review by CUTANIX on CENTAUR’S premises for a period beginning on the Signing Date and ending on September 13, 2002, all CENTAUR COMPOUND DATA for all CENTAUR LIBRARY COMPOUNDS,
but excluding the EXCLUDED COMPOUNDS, at CENTAUR’S reasonable expense; provided that, such review occurs upon reasonable prior notice to CENTAUR during CENTAUR’S normal business hours, and in accordance with procedures specified by
CENTAUR to prevent disclosure of third party confidential information to CUTANIX. In addition, where practical and upon request from CUTANIX and at the expense of CUTANIX, CENTAUR shall provide CUTANIX with hard copies of the CENTAUR COMPOUND DATA
made available to CUTANIX pursuant to this Section 5.2; provided that, CENTAUR shall be under no obligation to provide such hard copies after September 13, 2002. 
  
 Furthermore, from time to time during the term of the Agreement and upon written request by CUTANIX and at the expense of
CUTANIX, CENTAUR shall use commercially reasonable efforts to provide CUTANIX with CENTAUR COMPOUND DATA with respect to one or more ELECTED COMPOUND(S) chosen by CUTANIX, where such CENTAUR COMPOUND DATA is readily accessible by CENTAUR.”

  

	2.	SUPPLY OF CENTAUR LIBRARY COMPOUND SAMPLES 

  
 2.1 Subject to Section 2.2 below, CENTAUR and CUTANIX
hereby agree that upon payment to CENTAUR of a one-time fee of [*], CENTAUR shall deliver to CUTANIX a sample of approximately [*] of each compound within the CENTAUR LIBRARY for which CENTAUR possesses at least a [*] quantity as of the Signing
Date; provided that, CENTAUR shall not be obligated to deliver samples of the EXCLUDED COMPOUNDS to CUTANIX for so long as CENTAUR retains exclusive rights to such compounds pursuant to Section 2.5(f) of the Agreement. 
  

 9. 

 2.2 CENTAUR shall provide such samples of CENTAUR LIBRARY COMPOUNDS to CUTANIX on
or before September 13, 2002. 
  
 2.3
During the term of the Agreement and upon receipt of written notice from CUTANIX requesting such, CENTAUR shall, as practical, negotiate in good faith with CUTANIX to sell CUTANIX reasonable quantities of ELECTED COMPOUNDS, if reasonable
quantities are available. 
  

	3.	REPRESENTATIONS AND WARRANTIES; COVENANTS 

  
 3.1 CENTAUR represents and warrants that to the best
of its knowledge as of the Signing Date, the CENTAUR LIBRARY COMPOUNDS listed in APPENDICES B through H include all CENTAUR proprietary compounds synthesized or acquired by CENTAUR from its inception through July 31, 2002. 
  
 3.2 CUTANIX represents and warrants that the only
NOTICE of any sort delivered under the Agreement, as amended by the Amendment, is as set forth in Section 2.5(g) (provided in its entirety in Section 1.6 of the Amendment), and it claims no exclusive rights with respect to any other CENTAUR LIBRARY
COMPOUND as of the Signing Date. 
  
 3.3
CENTAUR covenants that it shall use reasonable efforts to promptly conduct activities to further evaluate the potential of the EXCLUDED COMPOUND [*] of the [*] series for lead optimization or pre-clinical development as soon as practical after
the Amendment Effective Date. Notwithstanding anything to the contrary in the Agreement, as amended by this Amendment, if [*] fails to meet CENTAUR’S criteria for lead optimization at any time during the term of the applicable NOTICE OF LEAD or
fails to meet CENTAUR’S criteria for pre-clinical development at any time during the term of the applicable NOTICE OF PRE-CLINICAL DEVELOPMENT (if any), then CENTAUR shall promptly return [*] to the CENTAUR COMPOUND LIBRARY in accordance with
Section 2.5(e) of the Agreement.  
  
 3.4 CENTAUR covenants that it shall not grant to any third party a license or sublicense that conflicts with the exclusive license granted by CENTAUR to CUTANIX under Section 2.1 of the Agreement. 
  
 3.5 During the term of the Agreement, each party
covenants to reasonably cooperate with the other party to (a) renegotiate with OMRF and/or UKRF, as applicable, certain terms of the existing agreements entered into by CENTAUR with OMRF and UKRF, at the expense and reasonable request of the party
initiating such renegotiations; and (b) on a case-by-case basis, negotiate agreements with third parties concerning the subject matter of the Agreement, at the expense and reasonable request of the party initiating such negotiations. 
  
 3.6 During the term of the Agreement, CENTAUR
covenants to reasonably cooperate with CUTANIX, at the expense and reasonable request of CUTANIX, to execute and record in the appropriate governmental offices any license and/or assignment 

  

 10. 

 
made and granted herein; provided that, CENTAUR shall have the right to request deletion of confidential or proprietary information from any such
recording, and CUTANIX shall take the requested action. 
  

	4.	REPURCHASE OPTION; RELINQUISHMENT OF CUTANIX BOARD SEAT

  
 4.1 CENTAUR hereby
grants to CUTANIX, or such of its designates (which designates may only be stockholders of CUTANIX) as CUTANIX may identify in writing, an option, exercisable as set forth in Section 4.2, (the “Option”) to repurchase from CENTAUR: (a) [*]
shares of Common Stock of CUTANIX issued to CENTAUR pursuant to that certain Stock Purchase Agreement entered into by and between CUTANIX and CENTAUR, dated January 15, 1998, as well as that certain Stockholders’ Agreement entered into among
CUTANIX, CENTAUR, Charles R. Engles and Dennis S. Bookshester of even date therewith; and (b) [*] shares of Series A Preferred Stock of CUTANIX issued to CENTAUR pursuant to that certain Series A Preferred Stock Purchase Agreement entered into among
CUTANIX and the purchasers of Series A Preferred Stock (including CENTAUR), dated October 21, 1998, as well as that certain Investor Rights Agreement entered into among CUTANIX and certain purchasers of Series A Preferred Stock (including CENTAUR),
of even date therewith and that certain Stockholders’ Agreement entered into among CUTANIX, CENTAUR, Charles R. Engles and Dennis S. Bookshester, dated January 15, 1998. 
  
 4.2 During the period beginning upon the Signing Date and ending October 15, 2002 (which date may be
extended through mutual written agreement of the parties), CUTANIX may exercise the Option (a) in full upon payment of [*] to CENTAUR by October 15, 2002; or (b) in part, by purchasing all or part of the Common Stock held by CENTAUR at [*] per
share, and, if all such Common Stock is so purchased, subsequently purchasing all or part of such number of shares of the Series A Preferred Stock held by CENTAUR at [*] per share by October 15, 2002. 
  
 4.3 In addition, CENTAUR hereby agrees to the
cancellation of any and all options granted to CENTAUR with respect to up to [*] shares of CUTANIX Common Stock. 
  
 4.4 If the Option is exercised by persons other than CUTANIX, then, with respect to each such person, CENTAUR is obligated to sell
the shares pursuant to the applicable Option only if CENTAUR receives from such exercising person an Investment Representation Letter in form reasonably acceptable to CENTAUR that will include, among other things, (a) representations from such
person that such person is an “Accredited Investor” as such term is defined in Rule 501 of the Securities Act of 1933 and that such person is acquiring the securities as an investment for its own account and not with a view to the public
resale or distribution thereof, and (b) a covenant by such person to abide by all applicable resale restrictions imposed by the securities laws. 
  
 4.5 Upon exercise by CUTANIX of the Option in full or at least with respect to sixty percent (60%) of the total shares of CUTANIX
Stock held by CENTAUR in accordance with Section 4.2 above, CENTAUR shall immediately relinquish its right to a 

  

 11. 

 
seat on the CUTANIX board of directors, and any CENTAUR representatives on such board shall tender their resignation to such board. Upon exercise by CUTANIX
of the Option in full in accordance with Section 4.2 above, CENTAUR shall, upon written request from CUTANIX, certify in writing that CENTAUR relinquishes all rights under: (a) that certain Stock Purchase Agreement entered into by and between
CUTANIX and CENTAUR, dated January 15, 1998; (b) that certain Stockholders’ Agreement entered into among CUTANIX, CENTAUR, Charles R. Engles and Dennis S. Bookshester, dated January 15, 1998; (c) that certain Series A Preferred Stock Purchase
Agreement entered into among CUTANIX and the purchasers of Series A Preferred Stock (including CENTAUR), dated October 21, 1998; and (d) that certain Investor Rights Agreement entered into among CUTANIX and certain purchasers of the CUTANIX’S
Series A preferred Stock (including CENTAUR), dated October 21, 1998. 
  

	5.	ASSIGNMENT OF CENTAUR PATENT 

  
 5.1 CENTAUR hereby assigns to CUTANIX the United States Patent application entitled [*],
Pharmaceutical compositions and their medical use” (U.S. application # [*], filing date [*], allowed) in accordance with Section 3.2 of the Agreement; provided that, CUTANIX shall promptly reimburse CENTAUR for all outstanding fees and
patent costs for such patent that CENTAUR can substantiate by written records, to the extent not already reimbursed by CUTANIX or other third parties. Such assignment granted hereunder shall become effective only in the event that CENTAUR receives
written approval of Astra AB for such assignment to CUTANIX. CENTAUR shall use commercially reasonable efforts to obtain such written approval from Astra AB, and CUTANIX shall take such actions as CENTAUR may request pursuant to obtaining such
approval. CUTANIX shall bear all reasonable expenses arising from the parties’ activities under this Section 5.1, including the reasonable legal fees of CENTAUR. 
  

	6.	COMPOUNDS OF UNKNOWN ORIGIN 

  
 6.1 The parties acknowledge and agree that certain of CENTAUR LIBRARY COMPOUNDS are of unknown origin
and the parties are uncertain as to the ultimate ownership and existing third party rights (if any) with respect to such CENTAUR LIBRARY COMPOUNDS (as listed in APPENDIX B-2 attached hereto) and that these and all CENTAUR LIBRARY COMPOUNDS are
provided under the Agreement “as is,” and with respect to all such compounds, CENTAUR EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. 
  

	7.	TERMINATION OF THE SERVICES AND SUPPLY AGREEMENT

  
 7.1 The parties
hereby terminate the Services and Supply Agreement, effective as of the Amendment Effective Date. 
  
 7.2 Notwithstanding the foregoing, upon written request from CUTANIX, CENTAUR shall continue to provide certain non-scientific
services to CUTANIX as long as it is practical for a period terminating on September 13, 2002. 
  

 12. 

	8.	CONDITION PRECEDENT TO CLOSING OF THIS AMENDMENT.

  
 8.1 Centaur and
Cutanix hereby acknowledge and agree that this Amendment shall become effective as of the effective date of that certain Letter Agreement entered into between Centaur and Cutanix releasing claims under the Agreement and the Supply Agreement (the
“Amendment Effective Date”). 
  

	9.	MISCELLANEOUS 

  
 9.1 Full Force and Effect. This Amendment amends the terms of the Agreement and is deemed incorporated into, and governed by
all other terms of, the Agreement. The provisions of the Agreement, as amended by this Amendment, remain in full force and effect. 
  
 9.2 Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 
  

 13. 

 IN WITNESS WHEREOF, the parties have executed this
Amendment in duplicate originals by their authorized officers as of the Signing Date. 
  

	 CENTAUR PHARMACEUTICALS, INC.
	 	 	 	CUTANIX CORPORATION
					
	By:	 	 /s/    Illegible

	 	 	 	By:	 	 /s/    Illegible

					
	Title:	 	  

	 	 	 	Title:	 	  

					
	Date:	 	 9/13/02

	 	 	 	Date:	 	 9/13/02

  

 14. 

 APPENDIX A 
 CENTAUR DATABASE 
 [*] 
  

 15. 

 APPENDIX B-1 
  
 CENTAUR LIBRARY COMPOUNDS 
 [*] 
  

 16. 

 APPENDIX B-2 
  
 COMPOUNDS OF UNKNOWN ORIGIN 
  

[*] 
  

 17. 

 APPENDIX B-3 
  
 COMMERCIALLY AVAILABLE INTERMEDIATES 
  
 [*] 
  

 18. 

 APPENDIX C 
  

CPI-2003 Series 
 [*]

  

 19. 

 APPENDIX D 
  

CPI-1714 AND METABOLITES 
 [*]

  

 20. 

 APPENDIX E 
  

CPI-1429 AND METABOLITES 
 [*]

  

 21. 

 APPENDIX F 
  

CPI-22 AND METABOLITES 
 [*]

  

 22. 

 APPENDIX G 
  

CPI-1189 AND METABOLITES 
 [*]

  

 23. 

 APPENDIX H 
  

CPI-1344 AND METABOLITES 
 [*]

  

 24.Patent License and Research Collaboration Agreement, dated July 15, 2003

 Exhibit 10.25 
  
 PATENT LICENSE AND RESEARCH COLLABORATION AGREEMENT 
  
 between 
  
 MERCK & CO., INC. 
  
 and 
  
 RENOVIS, INC. 
  

	[*]	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE
406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED. 

 TABLE OF CONTENTS 
  

	 1.
	 	 DEFINITIONS
	  	 
			
	 2.
	 	 RESEARCH PROGRAM
	  	 
				
	 	 	 2.1
	  	 General
	  	5
	 	 	 2.2
	  	 Conduct of Research
	  	6
	 	 	 2.3
	  	 Costs
	  	6
	 	 	 2.4
	  	 Principal Scientists
	  	6
	 	 	 2.5
	  	 Joint Research Committee
	  	6
	 	 	 2.6
	  	 Records and Reports
	  	7
	 	 	 2.7
	  	 Research Information and Inventions
	  	8
	 	 	 2.8
	  	 Initial Research Program Term
	  	9
	 	 	 2.9
	  	 Compliance
	  	9
	 	 	 2.10
	  	 Materials
	  	9
	 	 	 2.11
	  	 Exclusive Efforts
	  	9
	 	 	 2.12
	  	 Use of Human Materials
	  	10
			
	 3.
	 	 LICENSE; EXCHANGE OF INFORMATION; DEVELOPMENT AND COMMERCIALIZATION
	  	 
				
	 	 	 3.1
	  	 License Grant
	  	10
			
	 4.
	 	 CONFIDENTIALITY AND PUBLICATION
	  	 
				
	 	 	 4.1
	  	 Nondisclosure Obligation
	  	12
	 	 	 4.2
	  	 Information and Inventions
	  	13
	 	 	 4.3
	  	 Publication
	  	13
	 	 	 4.4
	  	 Publicity/Use of Names
	  	13
			
	 5.
	 	 RIGHTS OF PARTIES
	  	 
				
	 	 	 5.1
	  	 Preclinical Proof of Concept
	  	13
	 	 	 5.2
	  	 Effect of Finding Preclinical Proof of Concept
	  	14
	 	 	 5.3
	  	 Effect of Finding of Preclinical Proof of Concept for [*] and Not [*]
	  	15
	 	 	 5.4
	  	 Effect of Finding No Preclinical Proof of Concept Achieved
	  	16
			
	 6.
	 	 REPRESENTATIONS AND WARRANTIES
	  	 
				
	 	 	 6.1
	  	 Representation and Warranty
	  	16
	 	 	 6.2
	  	 Representations and Warranties of MERCK
	  	17
			
	 7.
	 	 PATENT PROVISIONS
	  	 
				
	 	 	 7.1
	  	 Filing, Prosecution and Maintenance of Patents
	  	17
	 	 	 7.2
	  	 Option of MERCK to Prosecute and Maintain Patents
	  	18
	 	 	 7.3
	  	 Interference, Opposition, Reexamination and Reissue
	  	18

  

	 	 	 7.4
	  	 Enforcement and Defense
	  	19
	 	 	 7.5
	  	 Patent Term Restoration
	  	20
			
	 8.
	 	 TERM AND TERMINATION
	  	 
				
	 	 	 8.1
	  	 Term and Expiration
	  	21
	 	 	 8.2
	  	 Termination by MERCK or RENOVIS
	  	21
	 	 	 8.3
	  	 Other Termination Events
	  	21
	 	 	 8.4
	  	 Effect of Expiration or Termination; Survival
	  	23
			
	 9.
	 	 MISCELLANEOUS
	  	 
				
	 	 	 9.1
	  	 Force Majeure
	  	24
	 	 	 9.2
	  	 Assignment
	  	24
	 	 	 9.3
	  	 Severability
	  	24
	 	 	 9.4
	  	 Notices
	  	25
	 	 	 9.5
	  	 Applicable Law
	  	25
	 	 	 9.6
	  	 Dispute Resolution
	  	 26

	 	 	 9.7
	  	 Entire Agreement; Amendments
	  	 27

	 	 	 9.8
	  	 Headings
	  	 27

	 	 	 9.9
	  	 Independent Contractors
	  	 27

	 	 	 9.10
	  	 Waiver
	  	 27

	 	 	 9.11
	  	 Cumulative Remedies
	  	 28

	 	 	 9.12
	  	 Waiver of Rule of Construction

	  	 28

	 	 	 9.13
	  	 Counterparts
	  	 28

  

	 SCHEDULE 1.12
	  	 MERCK PATENT RIGHTS

		
	 SCHEDULE 1.20
	  	 RENOVIS PATENT RIGHTS

		
	 SCHEDULE 2.1
	  	 INITIAL RESEARCH PROGRAM

		
	 SCHEDULE 5.1
	  	 CRITERIA TO DETERMINE

	 	  	 PRECLINICAL PROOF OF CONCEPT

  

 PATENT LICENSE AND RESEARCH COLLABORATION AGREEMENT 
  
 THIS AGREEMENT (the “Agreement”), effective as of
                        , 2003 (the “Effective Date”), is entered into by and between Merck & Co., Inc., a
corporation organized and existing under the laws of the state of New Jersey (“MERCK”), and Renovis, Inc., a corporation organized and existing under the laws of the state of Delaware (“RENOVIS”). 
  
 RECITALS: 
  
 WHEREAS, RENOVIS has developed RENOVIS Technology (as hereinafter defined) and has rights to RENOVIS Patent Rights
(as hereinafter defined); 
  
 WHEREAS, MERCK has developed
proprietary small molecule [*] compounds and has rights to MERCK Patent Rights; 
  
 WHEREAS, MERCK and RENOVIS desire to enter into a research collaboration to explore the use of small molecule [*] in [*]; and 
  
 WHEREAS, if such research collaboration is successful, the parties desire to enter into certain further business
relationships upon the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the Parties hereby agree as follows: 
  

	1.	DEFINITIONS 

  
 Unless specifically set forth to the contrary herein, the following terms, whether used in the singular or plural, shall have the
respective meanings set forth below: 
  

	 	1.1	“Affiliate” shall mean (i) any corporation or business entity of which fifty percent (50%) or more of the securities or other ownership interests
representing the equity, the voting stock or general partnership interest are owned, controlled or held, directly or indirectly, by MERCK or RENOVIS; or (ii) any corporation or business entity which, directly or indirectly, owns, controls or holds
fifty percent (50%) (or the maximum ownership interest permitted by law) or more of the securities or other ownership interests representing the equity, the voting stock or, if applicable, the general partnership interest, of MERCK or RENOVIS; or
(iii) any corporation or business entity of which fifty percent (50%) or more of the securities or other ownership interests representing the equity, the voting stock or general partnership interest are owned, controlled or held, directly or
indirectly, by a corporation or business entity described in (i) or (ii). 

  

	 	1.2	“Committee” shall mean the joint research committee established to facilitate the Initial Research Program as more fully described in Section 2.5.1.

  

 2 

	 	1.3	“Control”, “Controls” or “Controlled by” shall mean either (a) being an Affiliate of either MERCK or RENOVIS; or (b) with respect to any
item of or right under Patent Rights or Know-How, the possession of (whether by ownership or license, other than pursuant to this Agreement) or the ability of a Party to grant access to, or a license or sublicense of, such items or right as provided
for herein without violating the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be required hereunder to grant the other Party such access or license or sublicense. 

  

	 	1.4	“Field” shall mean the treatment of [*]. 

  

	 	1.5	“Improvement” shall mean any enhancement, whether or not patentable, to a preexisting (prior to the date of this Agreement) Invention or Know-How of MERCK or
RENOVIS conceived and/or reduced to practice in the course of the Initial Research Program. 

  

	 	1.6	“IND” shall mean an Investigational New Drug application, Clinical Study Application, Clinical Trial Exemption, or similar application or submission for
approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority. 

  

	 	1.7	“Initial Research Program Term” shall mean the duration of the Initial Research Program, as described more fully in Section 2.8.

  

	 	1.8	“Initial Research Program” shall mean the research activities undertaken by the Parties hereto as set forth in Article 2 and Schedule 2.1 and the
determination of whether Preclinical Proof of Concept has been achieved, as set forth in Article 5 and Schedule 5.1. 

  

	 	1.9	“Invention” means any process, method, composition of matter, article of manufacture, discovery or finding that is conceived and/or reduced to practice in
the course of the Initial Research Program. 

  

	 	1.10	“Joint Information and Inventions” shall mean all discoveries, Improvements, processes, methods, protocols, formulas, data, Inventions, know-how and trade
secrets, patentable or otherwise, arising from the Initial Research Program developed or invented jointly by employees of MERCK and RENOVIS or others acting on behalf of MERCK and RENOVIS. 

  

	 	1.11	“MERCK Information and Inventions” shall mean all discoveries, Improvements, processes, methods, protocols, formulas, data, Inventions, know-how and trade
secrets, patentable or otherwise, arising from the Initial Research Program developed or invented solely by employees of MERCK or other persons not employed by RENOVIS acting on behalf of MERCK. 

  

 3 

	 	1.12	“MERCK Patent Rights” shall mean any and all patents and patent applications in the Territory which, for the purposes of this Agreement, shall be deemed to
include certificates of invention and applications for certificates of invention which, during the term of this Agreement, are Controlled by MERCK, including, but not limited to, those listed on Schedule 1.12, which (i) claim the Research Compound;
and (ii) are necessary in connection with the performance of the Initial Research Program. 

  

	 	1.13	“Party” shall mean MERCK and RENOVIS. 

  

	 	1.14	“[*] Candidate” shall mean a [*] compound Controlled by MERCK (with right to sublicense), with properties and characteristics similar to those of the
Research Compound, which (i) has entered into Phase I Clinical Trials at the time of determination of Preclinical Proof of Concept as set forth in the Initial Research Program [*]. 

  

	 	1.15	“Phase I Clinical Trial” shall mean a human clinical trial in any country that is intended to initially evaluate the safety and/or pharmacological or
antigenic effect of a Product in human subjects or that would otherwise satisfy the requirements of 21 CFR 312.21(a). 

  

	 	1.16	“Product(s)” shall mean any preparations in final form for sale by prescription, over-the-counter or any other method for any and all uses in the Field,
including without limitation any Combination Product. 

  

	 	1.17	“Related Party” shall mean MERCK and its Affiliates (which term does not include distributors). 

  

	 	1.18	“RENOVIS Information and Inventions” shall mean all discoveries, Improvements, processes, methods, protocols, formulas, data, Inventions, know-how and trade
secrets, patentable or otherwise, arising from the Initial Research Program developed or invented solely by employees of RENOVIS or other persons not employed by MERCK acting on behalf of RENOVIS. 

  

	 	1.19	“RENOVIS Know-How” shall mean all information and materials, including but not limited to, discoveries, Improvements, processes, methods, protocols,
formulas, data, inventions (including without limitation RENOVIS Information and Inventions and RENOVIS’ rights in Joint Information and Inventions), know-how and trade secrets, patentable or otherwise, which during the term of this Agreement
(i) are in the possession or Control of RENOVIS or its Affiliates, (ii) are not generally known and (iii) are necessary or useful to MERCK in the Field, including without limitation, in connection with the Initial Research Program. RENOVIS Know-How
shall include, but not be limited to, RENOVIS Technology. 

  

 4 

	 	1.20	“RENOVIS Patent Rights” shall mean any and all patents and patent applications in the Territory which, for the purposes of this Agreement, shall be deemed to
include certificates of invention and applications for certificates of invention which, during the term of this Agreement are Controlled by RENOVIS, including, but not limited to, those listed on Schedule 1.20 which are necessary in connection with
the performance of the Initial Research Program. 

  

	 	1.21	“RENOVIS Technology” shall mean specific assay technology, not previously known and not in the public domain, that is Controlled by Renovis, and relates to
discovery and research activities in the Field and is necessary for the performance of the Initial Research Program, including, but not limited to, [*]. 

  

	 	1.22	“Research Compound” shall mean a [*] compound Controlled (with right to sublicense) by Merck, as specified by Merck in its sole discretion. The compound will
[*]. 

  

	 	1.23	“Territory” shall mean all of the countries in the world, and their territories and possessions. 

  

	 	1.24	“Third Party” shall mean an entity other than MERCK and its Related Parties, and RENOVIS and its Affiliates. 

  

	2.	RESEARCH PROGRAM 

  

	 	2.1	General 

  
 RENOVIS and MERCK shall engage in the Initial Research Program upon the terms and conditions set forth in this Agreement. The Initial Research Program
will involve Preclinical Proof of Concept research in the Field on the Research Compound. The Research Compound will be tested by Renovis [*] assays, and the results shall be evaluated by the Parties to determine efficacy in the Field, as set
forth in this Agreement. The activities to be undertaken in the course of the Initial Research Program are more specifically set forth in Schedules 2.1 and 5.1 which may be amended from time to time upon the mutual written agreement by authorized
representatives of the Parties. The rights of the Parties upon conclusion of the Initial Research Program are set forth in Article 5 of this Agreement. 
  

 5 

	 	2.2	Conduct of Research 

  
 RENOVIS shall conduct the Initial Research Program in good scientific manner, and in compliance in all material respects with all requirements of
applicable laws, rules and regulations and all applicable good laboratory practices to attempt to achieve their objectives efficiently and expeditiously. RENOVIS shall proceed diligently with the work set out in the Research Program by using
good-faith efforts to allocate sufficient time, effort, equipment and facilities to the Initial Research Program and to use personnel with sufficient skills and experience as are required to accomplish the Initial Research Program in accordance with
the terms of this Agreement and Schedules 2.1 and 5.1. 
  
 RENOVIS shall be entitled to utilize the service of Third Parties to perform its Initial Research Program activities only upon the prior written consent of MERCK or as specifically set forth in Schedule 2.1. RENOVIS shall ensure: (i) by
confidentiality agreement that all such Third Parties and their personnel, employees and agents involved in the Initial Research Program shall comply with the confidentiality provisions of this Agreement; and (ii) that each such Third Party and its
personnel, employees and agents that work on the Initial Research Program are qualified by appropriate experience and qualifications to perform the work assigned in a capable and professional matter. 
  

	 	2.3	Costs 

  
 RENOVIS shall assume all costs for the Initial Research Program. 
  

	 	2.4	Principal Scientists 

  
 The principal scientists for the Research Program are [*] for RENOVIS and [*] for MERCK. The Research Program and all work assignments to be performed by
RENOVIS and MERCK shall be carried out under the direction and supervision of the principal scientists noted above. Each Party shall notify the other Party as soon as practicable upon the changing of principal scientist; provided,
however, in no event may RENOVIS assign a principal scientist other than the individual identified above without the prior written consent of MERCK. 
  

	 	2.5	Joint Research Committee 

  
 The Parties hereby establish a committee to facilitate the Research Program as follows: 
  

	 	2.5.1	 Composition of the Joint Research Committee. The Initial Research Program shall be conducted under the direction of a joint research
committee (the “Committee”) comprised of three (3) named representatives of MERCK and three (3) named representatives of RENOVIS. Each Party shall appoint its respective representatives to the 

  

 6 

	 	 
Committee, and may substitute one or more of its representatives, in its sole discretion, effective upon notice to the other Party of such change. These
representatives shall have appropriate technical credentials, experience and knowledge, and ongoing familiarity with the Initial Research Program. Additional representatives or consultants may from time to time, by mutual consent of the Parties, be
invited to attend Committee meetings, subject to such representative’s and consultant’s written agreement to comply with the requirements of Section 4.1. The Committee shall be chaired by a representative of MERCK. Decisions of the
Committee shall be made unanimously by the members. In the event that the Committee cannot or does not, after good-faith efforts, reach agreement on an issue, the resolution and/or course of conduct shall first be determined by the Chief Executive
Officer of RENOVIS and a Vice President of MERCK; if they are unable to reach agreement, then resolution shall be made by a MERCK Executive Vice President, in his/her sole discretion. Each Party shall bear its own expenses related to the attendance
of such meetings by its representatives. 

  

	 	2.5.2	Meetings. The Committee shall meet in accordance with a schedule established by mutual written agreement of the Parties, but no less frequently than once
per quarter, with the location for such meetings alternating between RENOVIS and MERCK facilities (or such other locations as is determined by the Committee). Alternatively, the Committee may meet by means of teleconference, videoconference or other
similar communications equipment. The Committee shall confer regarding the status of the Initial Research Program, review relevant data, consider and advise on any technical issues that arise, consider issues of priority, and review and advise on
any budgetary and economic matters relating to the Initial Research Program which is referred to the Committee. 

  

	 	2.5.3	Project Leaders. MERCK and RENOVIS each shall appoint a person (a “Project Leader”) from the Committee to coordinate its part of the Initial
Research Program. The Project Leaders shall be the primary contact between the Parties with respect to the Initial Research Program. Each Party shall notify the other within thirty (30) days of the date of the Agreement of the appointment of its
Project Leader and shall notify the other Party as soon as practicable upon changing this appointment. 

  

	 	2.6	Records and Reports 

  

	 	2.6.1	Records. RENOVIS shall maintain records, in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which shall
fully and properly reflect all work done, costs incurred and results achieved in the performance of the Initial Research Program by RENOVIS. 

  

 7 

	 	2.6.2	Copies and Inspection of Records. MERCK shall have the right, during normal business hours and upon reasonable notice, to inspect and copy all such
records of the RENOVIS referred to in Section 2.6.1. MERCK shall maintain such records and the information disclosed therein in confidence in accordance with Section 4.1. MERCK shall have the right to arrange for its employees and/or consultants
involved in the activities contemplated hereunder to visit the offices and laboratories of RENOVIS and any of its Third Party contractors as permitted under Section 2.2 during normal business hours and upon reasonable notice, and to discuss the
Initial Research Program work and its results in detail with the technical personnel and consultants of RENOVIS. Upon request, RENOVIS shall provide copies of the records described in Section 2.6.1 above. 

  

	 	2.6.3	Quarterly Reports. Within thirty (30) days following the end of each calendar quarter during the term of this Agreement, RENOVIS shall provide to MERCK a
written progress report in English which shall describe the work performed to date on the Initial Research Program, deliver the results (including all data) of such work, evaluate the work performed in relation to the goals of the Initial Research
Program and provide such other information required by the Initial Research Program or reasonably requested by MERCK relating to the progress of the goals or performance of the Initial Research Program. 

  

	 	2.7	Research Information and Inventions 

  
 Subject to the licenses granted pursuant to the terms of this Agreement, the entire right, title and interest in: 
  

	 	(a)	RENOVIS Information and Inventions shall be owned solely by RENOVIS; 

  

	 	(b)	MERCK Information and Inventions shall be owned solely by MERCK; and 

  

	 	(c)	Joint Information and Inventions shall be owned jointly by RENOVIS and MERCK. 

  
 Notwithstanding the above, any Inventions that are Improvements to RENOVIS Patent Rights or RENOVIS Technology shall be
owned by RENOVIS and any Inventions that are Improvements to MERCK Patent Rights shall be owned by MERCK, subject in all cases to the licenses granted pursuant to the terms of this Agreement. 
  

 8 

	 	2.8	Initial Research Program Term 

  
 Except as otherwise provided herein, the term of the Initial Research Program shall commence on the Effective Date and continue for a period of nine (9)
months. The Parties may extend the term of the Initial Research Program by mutual written agreement of the authorized representative of the Parties, and shall, in such case, amend Schedules 2.1 and 5.1, as applicable. 
  

	 	2.9	Compliance 

  
 RENOVIS shall conduct the research in accordance with all applicable laws, rules and regulations, including, without limitation, all current governmental
regulatory requirements concerning Good Laboratory Practices. In addition, if animals are used in research hereunder, RENOVIS will comply with the Animal Welfare Act or any other applicable local, state, national and international laws or
regulations relating to the care and use of laboratory animals. MERCK encourages RENOVIS to use the highest standards, such as those set forth in the Guide for the Care and Use of Laboratory Animals (NRC, 1996), for the humane handling, care and
treatment of such research animals. Any animals which are used in the course of the Research, or products derived from those animals, such as eggs or milk, will not be used for food purposes, nor will these animals be used for commercial breeding
purposes. RENOVIS shall notify MERCK in writing of any deviations from applicable regulatory or legal requirements. RENOVIS hereby certifies that it will not and has not to its knowledge employed or otherwise used in any capacity the services of any
person debarred under Section 21 USC 335a in performing any services hereunder. 
  

	 	2.10	Materials 

  
 MERCK shall provide RENOVIS with sufficient quantities of the Research Compound as set forth in Schedule 2.1 solely for the purposes of carrying out
RENOVIS’ respective activities under the Research Program in accordance with the terms of this Agreement. The Research Compound is not to be used in humans, nor shall it, or any derivatives, analogs, modifications or components thereof, be
transferred, delivered or disclosed to any Third Party without the prior written approval of MERCK. Any unused Research Compound shall be, at MERCK’s option, either returned to MERCK, or destroyed in accordance with instructions by MERCK.

  

	 	2.11	Exclusive Efforts 

  
 During the Research Program Term, RENOVIS shall work exclusively (even as to RENOVIS itself) with MERCK in efforts on small molecule [*] compounds in the
Field. 
  

 9 

	 	2.12	Use of Human Materials 

  
 If any human cell lines, tissue, human clinical isolates or similar human-derived materials (“Human Materials”) have been or are to be
collected and/or used in the Initial Research Program, RENOVIS represents and warrants (i) that it has complied, or shall comply, with all applicable laws, guidelines and regulations relating to the collection and/or use of the Human Materials and
(ii) that it has obtained, or shall obtain, all necessary approvals and appropriate informed consents, in writing, for the collection and/or use of such Human Materials. RENOVIS shall provide documentation of such approvals and consents upon
MERCK’s request. RENOVIS further represents and warrants that such Human Materials may be used as contemplated in this Agreement without any obligations to the individuals or entities (“Providers”) who contributed the Human Materials,
including, without limitation, any obligations of compensation to such Providers or any other Third Party for the intellectual property associated with, or commercial use of, the Human Materials for any purposes. 
  

	3.	LICENSE; EXCHANGE OF INFORMATION; DEVELOPMENT AND COMMERCIALIZATION 

  

	 	3.1	License Grant 

  

	 	(a)	MERCK hereby grants to RENOVIS, [*], an exclusive research license (even as to MERCK) for internal research purposes only, without the right to sublicense, during the Initial
Research Program under the MERCK Patent Rights, solely for the purposes of conducting the Initial Research Program in the Field in the Territory. 

  

	 	(b)	RENOVIS hereby grants to MERCK: (i) a non-exclusive license to RENOVIS Information and Inventions and RENOVIS’ interest in Joint Information and Inventions which are not
Improvements to RENOVIS Technology or Improvements to Inventions covered by RENOVIS Patent Rights, for any and all uses in the Territory outside the Field; and (ii) a non-exclusive research license for internal research purposes only to
RENOVIS’ interest in Joint Information and Inventions which are Improvements to RENOVIS Technology for any and all uses in the Territory outside of the Field; and (iii) an exclusive license (even as to RENOVIS) with right to sublicense to
RENOVIS Information and Inventions and RENOVIS’ interest in all Joint Information and Inventions that are Improvements to Inventions covered by MERCK Patent Rights for any and all uses in the Territory. 

  

	 	(c)	 MERCK hereby grants to RENOVIS, [*]: (i) a non-exclusive, non-sublicensable research license for internal research purposes only to MERCK Information and
Inventions and MERCK’s interest in Joint 

  

 10 

	 	 
Information and Inventions that are not Improvements to Inventions covered by MERCK Patent Rights in the Territory in the Field; and (ii) an exclusive
license with right to sublicense to MERCK’s interest in all Joint Information and Inventions that are Improvements to RENOVIS Technology or Improvements to Inventions covered by Renovis Patent Rights for any and all uses in the Territory.

  

 11 

	4.	CONFIDENTIALITY AND PUBLICATION 

  

	 	4.1	Nondisclosure Obligation 

  
 All information disclosed by one Party to the other Party hereunder (the “Information”) shall be maintained in confidence by the receiving
Party and shall not be disclosed to non-Party or used for any purpose except as set forth herein without the prior written consent of the disclosing Party, except to the extent that such Information: 
  

	 	(a)	is known by receiving Party at the time of its receipt, and not through a prior disclosure by the disclosing Party, as documented by the receiving Party’s business
records; 

  

	 	(b)	is properly in the public domain; 

  

	 	(c)	is subsequently disclosed to the receiving Party by a Third Party who may lawfully do so and is not under an obligation of confidentiality to the disclosing Party;

  

	 	(d)	is developed by the receiving Party independently of Information received from the disclosing Party, as documented by the receiving Party’s business records;

  

	 	(e)	is disclosed to governmental or other regulatory agencies in order to obtain patents or to gain or maintain approval to conduct clinical trials or to market Product, but such
disclosure may be only to the extent reasonably necessary to obtain patents or authorizations; 

  

	 	(f)	is deemed necessary by MERCK to be disclosed to Related Parties, consultants, and/or other Third Parties for any and all purposes Merck and its Affiliates deem necessary or
advisable in the ordinary course of business in accordance with this Agreement on the condition that such Third Parties agree to be bound by the confidentiality and non-use obligations contained in this Agreement; provided the term of
confidentiality for such Third Parties shall be no less than ten (10) years. 

  
 Any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general public or in the rightful possession
of the receiving Party unless the combination itself and principle of operation are published or available to the general public or in the rightful possession of the receiving party. 
  
 If a Party is required by judicial or administrative process to disclose Information that is subject to the non-disclosure
provisions of this Section 4.1 or Section 4.2, such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the 

  

 12 

 
disclosure obligations. Information that is disclosed by judicial or administrative process shall remain otherwise subject to the confidentiality and non-use
provisions of this Section 4.1 and Section 4.2, and the Party disclosing Information pursuant to law or court order shall take all steps reasonably necessary, including without limitation obtaining an order of confidentiality, to ensure the
continued confidential treatment of such Information. 
  

	 	4.2	Information and Inventions 

  
 During the term on this Agreement, RENOVIS agrees to keep confidential (i) all RENOVIS Information and Inventions; and (ii) all Joint Information and
Inventions, each to the extent directly arising from the Initial Research Program, subject to the exceptions in Section 4.1. 
  
 Notwithstanding the previous paragraph, in the event this Agreement is terminated by RENOVIS pursuant to Section 8.2, or by MERCK pursuant to Section
8.3.1(c), RENOVIS agrees to keep confidential (i) all RENOVIS Information and Inventions; and (ii) all Joint Information and Inventions, each to the extent directly arising from the Initial Research Program, for a period of five (5) years after the
effective date of termination, subject to the exceptions in Section 4.1(b), (c) and (e). 
  

	 	4.3	Publication 

  
 Neither Party shall have the right to publish results of the Initial Research Program unless approved in advance in writing by the Committee and the
Executive Vice President for Neuroscience of MERCK. 
  

	 	4.4	Publicity/Use of Names 

  
 No disclosure of the existence of, or the terms of, this Agreement may be made by either Party, and no Party shall use the name, trademark, trade name or
logo of the other Party or its employees in any publicity, news release or disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other Party, except as may be required by law. 
  

	5.	RIGHTS OF PARTIES UPON CONCLUSION OF INITIAL RESEARCH PROGRAM 

  

	 	5.1	Preclinical Proof of Concept 

  
 Upon conclusion of the Initial Research Program activities as set forth in Section 2.1, the Committee will evaluate the results to determine whether
Preclinical Proof of Concept has been achieved on the Research Compound for [*]. 
  

 13 

	 	5.2	Effect of Finding of Preclinical Proof of Concept 

  
 In the event that the Committee determines that Preclinical Proof of Concept on the Research Compound has been achieved [*] and: 
  

	 	(a)	MERCK has [*] Candidate, then: 

  

	 	(i)	MERCK and RENOVIS will enter into good-faith negotiations to enter into a License and Research Collaboration Agreement to jointly research and develop a [*] Candidate in the
Field (for [*] indications, provided the Committee has determined that Preclinical Proof of Concept on the Research Compound has been achieved for [*] pursuant to the criteria set forth in Schedule 5.1) (the “[*] Agreement”). The [*]
Agreement shall be [*] on commercially reasonable terms to be negotiated by the parties in good faith, which terms shall include: 

  

	 	(x)	that research would focus on IND-enabling preclinical studies, leading to a “go/no-go” decision regarding filing an IND for [*] Candidate for use in the Field;

  

	 	(y)	clinical development activities would be conducted primarily by MERCK, with such support by RENOVIS as the parties determine is appropriate; 

  

	 	(z)	in the event the Parties decide not to file the IND for the [*] Candidate for use in [*], and MERCK elects to terminate the collaboration, then RENOVIS would have the right
to proceed with the [*] Candidate as a Licensed Compound for use in [*] under the option provided pursuant to Section 5.3 (assuming the research results support proceeding); 

  

	 	(xx)	in the event that research results do not support proceeding, the entire collaboration shall terminate; 

  

	 	(yy)	MERCK would have the exclusive right to commercialize (market and sell) any approved product (including a pharmaceutically acceptable formulation and, if needed, delivery
means) for use in the Field, such activities would be at MERCK’s sole responsibility and discretion, subject to satisfying standard diligence obligations; and 

  

	 	(zz)	commercially reasonable financial terms, including research funding (as appropriate), milestones and royalties to be paid by MERCK to RENOVIS; or 

  

 14 

	 	(b)	MERCK does not have a [*] Candidate, then: 

  

	 	(i)	the Agreement terminates pursuant to the terms of Article 8 of this Agreement. 

  

	 	5.3	Effect of Finding of Preclinical Proof of Concept for [*] and Not [*] 

  
 In the event the Committee determines that Preclinical Proof of Concept on the Research Compound has been achieved for [*]
and not [*] and: 
  

	 	(a)	MERCK has a [*] Candidate, then: 

  

	 	(i)	MERCK and RENOVIS will enter into good-faith negotiations to enter into a license agreement (which may be exclusive or non-exclusive, depending on MERCK’s rights to such
compound) granting RENOVIS rights to the [*] Candidate for research, development and commercialization in the Field (“Licensed Compound”) on commercially reasonable terms to be negotiated by the parties in good faith, which terms shall
include: (a) royalties on product sales in the Field to be paid by RENOVIS to MERCK; (b) RENOVIS will covenant that RENOVIS (and its Affiliates) will not develop, make, market or promote the Licensed Compound for any use other than in the Field; (c)
if Renovis does not file an IND for Licensed Compound in the Field within two (2) years of executing a license agreement for a [*] Candidate, all rights granted to RENOVIS by MERCK to the Licensed Compound will revert exclusively to Merck; (d)[*].
Notwithstanding the above, in the event that MERCK proposes to provide RENOVIS a license to a [*] Candidate which is subject to [*]. 

  

	 	(b)	MERCK does not have a [*] Candidate, then: 

  

	 	(i)	the Agreement terminates pursuant to the terms of Article 8 of this Agreement. 

  

 15 

	 	5.4	Effect of Finding No Preclinical Proof of Concept Achieved. 

  
 If Preclinical Proof of Concept is not achieved on the Research Compound, the Agreement terminates pursuant to the terms of Article 8 of this Agreement.

  

	6.	REPRESENTATIONS AND WARRANTIES 

  

	 	6.1	Representation and Warranty 

  
 RENOVIS represents and warrants to MERCK as of the Effective Date that: 
  

	 	(a)	to the best of RENOVIS’ knowledge, the RENOVIS Patent Rights and RENOVIS Know-How exist and are not invalid or unenforceable, in whole or in part;

  

	 	(b)	it has the full right, power and authority to enter into this Agreement, to perform the Initial Research Program and to grant the licenses granted under Article 3 hereof;

  

	 	(c)	it has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in RENOVIS Patent Rights or RENOVIS Know-How in a manner
inconsistent with the rights granted to MERCK hereunder; 

  

	 	(d)	to the best of RENOVIS’ knowledge, it is the sole and exclusive owner of the RENOVIS Patent Rights and RENOVIS Know-How, all of which are (and shall be, in the case of
RENOVIS Information and Inventions) free and clear of any liens, charges and encumbrances, and no other person, corporate or other private entity, or governmental entity or subdivision thereof, has or shall have any claim of ownership whatsoever
with respect to the RENOVIS Patent Rights and RENOVIS Know-How; 

  

	 	(e)	to the best of RENOVIS’ knowledge, the exercise of the license granted to MERCK under the RENOVIS Patent Rights and RENOVIS Know-How do not interfere with or infringe
any intellectual property rights owned or possessed by any Third Party; 

  

	 	(f)	there are no claims, judgments or settlements against or owed by RENOVIS or pending or threatened claims or litigation relating to the RENOVIS Patent Rights and RENOVIS
Know-How; and 

  

	 	(g)	RENOVIS has disclosed to MERCK all reasonably relevant information regarding the RENOVIS Patent Rights and RENOVIS Know-How licensed under this Agreement, including without
limitation all patent opinions obtained by RENOVIS related thereto. 

  

 16 

	 	6.2	Representations and Warranties of MERCK. 

  
 MERCK represents and warrants to RENOVIS as of the Effective Date that: 
  

	 	(a)	to the best of MERCK’s knowledge, the MERCK Patent Rights exist and are not invalid or unenforceable, in whole or in part; 

  

	 	(b)	it has the full right, power and authority to enter into this Agreement, to meet its obligations with respect to the Initial Research Program and to grant the licenses granted under
Article 3 hereof; 

  

	 	(c)	it has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in MERCK Patent Rights in any manner that is inconsistent with the
licenses granted to RENOVIS hereunder;; 

  

	 	(d)	to the best of MERCK’s knowledge, the MERCK Patent Rights are free and clear of any liens, charges and other similar encumbrances; 

  

	 	(e)	to the best of MERCK’s knowledge, the exercise of the license granted to RENOVIS under the MERCK Patent Rights does not interfere with or infringe any intellectual property
rights owned or possessed by any Third Party; 

  

	 	(f)	there are no claims, judgments or settlements against or owed by MERCK or pending or threatened claims or litigation relating to the MERCK Patent Rights; and

  

	 	(g)	MERCK has disclosed to RENOVIS all information reasonably relevant to RENOVIS’ performance of the Initial Research Program regarding the MERCK Patent Rights licensed
under this Agreement. Notwithstanding the above, [*]. 

  

	7.	PATENT PROVISIONS 

  

	 	7.1	Filing, Prosecution and Maintenance of Patents 

  
 RENOVIS agrees to file, prosecute and maintain in the Territory, upon appropriate consultation with MERCK, the RENOVIS Patent Rights licensed to MERCK
under this Agreement; provided, however, with respect to Joint Information and Inventions that are not Improvements to RENOVIS Patent Rights or RENOVIS Technology, MERCK shall have the first right to file patent applications for such
Joint Information and Inventions. With respect to RENOVIS Information and Inventions, RENOVIS may elect not to file and if so MERCK shall have the right to file patent applications. In such event, RENOVIS shall execute such documents and perform
such acts at RENOVIS’ expense as 

  

 17 

 
may be reasonably necessary to effect an assignment of such Patent Rights to MERCK in a timely manner to allow MERCK to continue such prosecution or
maintenance. In each case, the filing Party shall give the non-filing Party an opportunity to review the text of the application before filing, shall consult with the non-filing Party with respect thereto, and shall supply the non-filing Party with
a copy of the application as filed, together with notice of its filing date and serial number. RENOVIS shall keep MERCK advised of the status of the actual and prospective patent filings and upon the request of MERCK, provide advance copies of any
papers related to the filing, prosecution and maintenance of such patent filings. RENOVIS shall promptly give notice to MERCK of the grant, lapse, revocation, surrender, invalidation or abandonment of any Patent Rights licensed to MERCK for which
RENOVIS is responsible for the filing, prosecution and maintenance. With respect to all filings hereunder, the filing Party shall be responsible for payment of all costs and expenses related to such filings. 
  

	 	7.2	Option of MERCK to Prosecute and Maintain Patents 

  
 RENOVIS shall give notice to MERCK of any desire to cease prosecution and/or maintenance of RENOVIS Patent Rights on a country by country basis in the
Territory and, in such case, shall permit MERCK, at its sole discretion, to continue prosecution or maintenance of such Patent Rights at its own expense. If MERCK elects to continue prosecution or maintenance or to file based on RENOVIS’
election not to file pursuant to Section 7.1 above, RENOVIS shall execute such documents and perform such acts at RENOVIS’ expense as may be reasonably necessary to effect an assignment of such Patent Rights to MERCK in a timely manner to allow
MERCK to continue such prosecution or maintenance. Any patents or patent applications so assigned shall not be considered Patent Rights. 
  

	 	7.3	Interference, Opposition, Reexamination and Reissue 

  

	 	(a)	RENOVIS shall, within ten (10) days of learning of such event, inform MERCK of any request for, or filing or declaration of, any interference, opposition, or reexamination relating
to Patent Rights. MERCK and RENOVIS shall thereafter consult and cooperate fully to determine a course of action with respect to any such proceeding. MERCK shall have the right to review and approve any submission to be made in connection with such
proceeding. 

  

	 	(b)	RENOVIS shall not initiate any reexamination, interference or reissue proceeding relating to RENOVIS Patent Rights without the prior written consent to MERCK, which consent shall
not be unreasonably withheld. 

  

	 	(c)	 In connection with any interference, opposition, reissue, or reexamination proceeding relating to RENOVIS Patent Rights, MERCK and RENOVIS 

  

 18 

	 	 
will cooperate fully and will provide each other with any information or assistance that either may reasonably request. RENOVIS shall keep MERCK informed of
developments in any such action or proceeding, including, to the extent permissible by law, consultation and approval of any settlement, the status of any settlement negotiations and the terms of any offer related thereto.

  

	 	(d)	RENOVIS shall bear the expense of any interference, opposition, reexamination, or reissue proceeding relating to RENOVIS Patent Rights. 

  

	 	7.4	Enforcement and Defense 

  

	 	(a)	RENOVIS shall give MERCK notice of either (i) any infringement of Patent Rights, or (ii) any misappropriation or misuse of RENOVIS Know-How, that may come to RENOVIS’
attention. MERCK and RENOVIS shall thereafter consult and cooperate fully to determine a course of action, including but not limited to the commencement of legal action by either or both MERCK and RENOVIS, to terminate any infringement of Patent
Rights or any misappropriation or misuse of RENOVIS Know-How. However, RENOVIS, upon notice to MERCK, shall have the first right to initiate and prosecute such legal action at its own expense and in the name of RENOVIS and MERCK, or to control the
defense of any declaratory judgment action relating to Patent Rights or RENOVIS Know-How. RENOVIS shall promptly inform MERCK if it elects not to exercise such first right and MERCK shall thereafter have the right to either initiate and prosecute
such action or to control the defense of such declaratory judgment action in the name of MERCK and, if necessary, RENOVIS. Each Party shall have the right to be represented by counsel of its own choice. 

  

	 	(b)	In the event that RENOVIS elects not to initiate and prosecute an action as provided in paragraph (a), and MERCK elects to do so, the costs of any agreed-upon course of
action to terminate infringement of RENOVIS Patent Rights or misappropriation or misuse of RENOVIS Know-How, including without limitation the costs of any legal action commenced or the defense of any declaratory judgment, shall be shared equally by
RENOVIS and MERCK. 

  

	 	(c)	 For any action to terminate any infringement of Patent Rights or any misappropriation or misuse of RENOVIS Know-How, in the event that MERCK is unable to
initiate or prosecute such action solely in its own name, RENOVIS will join such action voluntarily and will execute and cause its Affiliates to execute all documents necessary for MERCK to initiate litigation to prosecute and maintain such action.
In connection with any action, MERCK and RENOVIS will cooperate fully and will 

  

 19 

	 	 
provide each other with any information or assistance that either may reasonably request. Each Party shall keep the other informed of developments in any
action or proceeding, including, to the extent permissible by law, the consultation and approval of any settlement negotiations and the terms of any offer related thereto. 

  

	 	(d)	Any recovery obtained by either or both MERCK and RENOVIS in connection with or as a result of any action contemplated by this section, whether by settlement or otherwise,
shall be shared in order as follows: 

  

	 	(i)	the Party which initiated and prosecuted the action shall recoup all of its costs and expenses incurred in connection with the action; 

  

	 	(ii)	the other Party shall then, to the extent possible, recover its costs and expenses incurred in connection with the action; and 

  

	 	(iii)	the amount of any recovery remaining shall then be allocated between the Parties on a pro rata basis taking into consideration the relative economic losses
suffered by each Party. 

  

	 	(e)	RENOVIS shall inform MERCK of any certification regarding any Patent Rights it has received pursuant to either 21 U.S.C. §§355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or
it successor provisions or any similar provisions in a country in the Territory other than the United States and shall provide MERCK with a copy of such certification within five (5) days of receipt. RENOVIS’ and MERCK’s rights with
respect to the initiation and prosecution of any legal action as a result of such certification or any recovery obtained as a result of such legal action shall be as defined in paragraphs 7.4(a)-(d) hereof; provided, however, the
RENOVIS shall exercise its first right to initiate and prosecute any action and shall inform MERCK of such decision within ten (10) days of receipt of the certification, after which time MERCK shall have the right to initiate and prosecute such
action. 

  

	 	7.5	Patent Term Restoration 

  
 The Parties hereto shall cooperate with each other in obtaining patent term restoration or supplemental protection certificates or their equivalents in
any country in the Territory where applicable to Patent Rights. In the event that elections with respect to obtaining such patent term restoration are to be made, MERCK shall have the right to make the election and RENOVIS agrees to abide by such
election. 
  

 20 

	8.	TERM AND TERMINATION 

  

	 	8.1	Term and Expiration 

  
 This Agreement shall be effective as of the Effective Date and unless terminated earlier pursuant to Sections 8.2 or 8.3 below, this Agreement shall
continue in effect until the end of the Initial Research Program Term. Upon expiration of this Agreement, MERCK’s licenses pursuant to Section 3.1(b) and RENOVIS’ licenses pursuant to Section 3.1(c) shall become fully paid-up, perpetual
licenses. For the avoidance of doubt, RENOVIS’ license pursuant to Section 3.1(a) shall terminate. 
  

	 	8.2	Termination by MERCK or RENOVIS 

  
 Notwithstanding anything contained herein to the contrary, either Party shall have the right to terminate this Agreement at any time in its sole
discretion by giving ninety (90) days’ advance written notice to the other Party. In the event of termination, as set forth in this Section 8.2, then (i) not later than thirty (30) days after the date of such termination, each Party shall
return or cause to be returned to the other Party all Information received from the other Party and all copies thereof, except that each Party may retain one copy in its confidential files for records purposes; (ii) except for the surviving
provisions set forth in Section 8.4 hereof, the rights and obligations of the Parties, including all license rights granted hereunder, shall terminate as of the date of such termination; provided, however, that in the event MERCK is
the terminating party under this Section 8.2, MERCK shall reimburse RENOVIS for its reasonable direct costs incurred in performing the Initial Research Program, provided RENOVIS has fulfilled its obligations under Section 2.6 of this Agreement and
MERCK has had the opportunity to audit RENOVIS’ records in order to verify the accuracy of such costs and such costs have been so verified. 
  

	 	8.3	Other Termination Events 

  

	 	8.3.1	Cause for Termination. This Agreement may be terminated at any time during the term of this Agreement: 

  

	 	(a)	upon written notice by either Party if the other Party is in breach of its material obligations hereunder by causes and reasons within its control and has not cured such
breach within ninety (90) days after notice requesting cure of the breach; provided, however, in the event of a good faith dispute with respect to the existence of a material breach, the ninety (90) day cure period shall be tolled
until such time as the dispute is resolved pursuant to Section 9.6 hereof; 

  

 21 

	 	(b)	by either Party upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings, or upon an assignment of a substantial portion of the
assets for the benefit of creditors by the other Party; provided, however, in the case of any involuntary bankruptcy proceeding such right to terminate shall only become effective if the Party consents to the involuntary bankruptcy or
such proceeding is not dismissed within ninety (90) days after the filing thereof. 

  

	 	(c)	immediately upon written notice by MERCK, in the event of a “Change of Control” of RENOVIS, subject to the provisions of Section 8.3.2(d) of this Agreement. [*].

  

	 	(d)	immediately upon written notice by either Party in the event(s) set forth in Sections 5.2(b), 5.3(b) or 5.4 have occurred. 

  

	 	8.3.2	Effect of Termination on License 

  

	 	(a)	If MERCK terminates this Agreement under Sections 8.3.1(a), MERCK’s licenses pursuant to Section 3.1 shall become fully paid-up, perpetual licenses, RENOVIS’
licenses shall terminate and RENOVIS shall, within thirty (30) days after such termination return or cause to be returned to MERCK all Research Compounds, MERCK Information, and all substances or compositions delivered or provided by MERCK, as well
as any other material provided by MERCK in any medium. If RENOVIS terminates this Agreement under Section 8.3.1(a), MERCK’s licenses pursuant to Sections 3.1 shall terminate as of such termination date; RENOVIS’ licenses pursuant to
Section 3.1 shall become fully paid-up, perpetual licenses; and MERCK shall, within thirty (30) days after such termination, return or cause to be returned to RENOVIS all RENOVIS Information in tangible form and substances or compositions delivered
or provided by RENOVIS, as well as any other material provided by RENOVIS in any medium. 

  

	 	(b)	Upon termination of this Agreement by either Party under Section 8.3.1(d), RENOVIS’ licenses under Section 3.1(c) and MERCK’s licenses under Section 3.1(b) shall
become fully paid-up, perpetual licenses and RENOVIS’ license under 3.1(a) shall terminate as of such termination date. Upon such termination, each Party shall, within thirty (30) days of such termination, return or cause to be returned to the
other Party that Party’s Information, substances or compositions, as well as any other material provided in any medium. 

  

 22 

	 	(c)	If this Agreement is terminated by MERCK pursuant to Section 8.3.1(b) due to the rejection of this Agreement by or on behalf of RENOVIS under Section 365 of the United States
Bankruptcy Code (the “Code”), all licenses and rights to licenses granted under or pursuant to this Agreement by RENOVIS to MERCK are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code, licenses of rights to
“intellectual property” as defined under Section 101(35A) of the Code. The Parties agree that MERCK, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Code, and
that upon commencement of a bankruptcy proceeding by or against RENOVIS under the Code, MERCK shall be entitled to a complete duplicate of or complete access to (as MERCK deems appropriate), any such intellectual property and all embodiments of such
intellectual property, subject to applicable law. Such intellectual property and all embodiments thereof shall be promptly delivered to MERCK (i) upon any such commencement of a bankruptcy proceeding upon written request therefore by MERCK, unless
RENOVIS elects to continue to perform all of its obligations under this Agreement or (ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of RENOVIS upon written request therefore by MERCK.

  
 The foregoing provisions of Subsection Error!
Reference source not found.(c) are without prejudice to any rights MERCK may have arising under the Code or other applicable law. 
  

	 	(d)	In the event RENOVIS undergoes a Change of Control as set forth in Section 8.3.1(c) of this Agreement, and MERCK terminates this Agreement pursuant to Section 8.3.1(c),
MERCK’s and RENOVIS’ licenses pursuant to Section 3.1 shall terminate and each party shall, within thirty (30) days of such termination return or cause to be returned to the other party that party’s Information, substances or
compositions, as well as any other material provided in any medium. 

  

	 	8.4	Effect of Expiration or Termination; Survival 

  
 Expiration or termination of the Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. Any
expiration or termination of this Agreement shall be without prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to expiration or termination. The provisions of Article 4 shall survive the
expiration or termination of the Agreement and shall continue in effect for ten (10) years. In addition, the provisions of Articles 1, 4, 7, 8.3.2, 8.4, 9.4, 9.5 and 9.6 shall survive any expiration or termination of this Agreement. 
  

 23 

	9.	MISCELLANEOUS 

  

	 	9.1	Force Majeure 

  
 Neither Party shall be held liable to the other Party nor be deemed to have defaulted under or breached the Agreement for failure or delay in performing
any obligation under the Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party including, but not limited to, embargoes, war, acts of war (whether war be declared or not),
insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, fire, floods, or other acts of God, or acts, omissions or delays in acting by any governmental authority or the other Party. The affected Party shall notify the
other Party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all reasonable efforts necessary to cure such force majeure circumstances. 
  

	 	9.2	Assignment 

  
 Except as provided in this Section 9.2, this Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be
assigned or transferred, by either Party without the consent of the other Party; provided, however, that MERCK may, without such consent, assign the Agreement and its rights and obligations hereunder to an Affiliate or in connection
with the transfer or sale of all or substantially all of its assets related to the Research Compound, [*]or the business, or in the event of its merger or consolidation or change in control or similar transaction. Any attempted assignment not in
accordance with this Section 9.2 shall be void. Any permitted assignee shall assume all assigned obligations of its assignor under the Agreement. 
  

	 	9.3	Severability 

  
 If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties. The Parties shall in such
an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement. 
  

 24 

	 	9.4	Notices 

  
 All notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile (and promptly
confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 

 

	 if to RENOVIS:
	  	 Renovis, Inc.
 270 Littlefield
Avenue
 San Francisco, CA 94080-6924

		
	 	  	 Attn: Chief Executive Officer
 Facsimile No: 650-266-1515

		
	 and:
	  	 Attn: Office of Counsel
 Facsimile No.: 650-266-1405

		
	 if to MERCK:  
	  	 Merck & Co., Inc.
 One Merck Drive (WS
3A-65)
 Whitehouse Station, NJ 08889-0100
 Attn: Office of
the Secretary
 Facsimile No: 908-735-1246

		
	 and
	  	 Merck & Co., Inc.
 One Merck Drive (WS
2A-30)
 Whitehouse Station, NJ 08889-0100
 Attn: Chief
Licensing Officer
 Facsimile No: 908-735-1214

  
 or to such other
address as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such notice shall be deemed to have been given: (a) when delivered if personally delivered or sent by facsimile on a
business day; (b) on the business day after dispatch if sent by nationally-recognized overnight courier; and/or (c) on the fifth business day following the date of mailing if sent by mail. 
  

	 	9.5	Applicable Law 

  
 The Agreement shall be governed by and construed in accordance with the laws of the State of New York and the patent laws of the United States without
reference to any rules of conflict of laws or renvoi. 
  

 25 

	 	9.6	Dispute Resolution 

  

	 	9.6.1	The Parties shall negotiate in good faith and use reasonable efforts to settle any dispute, controversy or claim arising from or related to this Agreement or the breach
thereof. If the Parties do not fully settle, and a Party wishes to pursue the matter, each such dispute, controversy or claim that is not an “Excluded Claim” shall be finally resolved by binding arbitration in accordance with the
Commercial Arbitration Rules and Supplementary Procedures for Large Complex Disputes of the American Arbitration Association (“AAA”), and judgment on the arbitration award may be entered in any court having jurisdiction thereof.

  

	 	9.6.2	The arbitration shall be conducted by a panel of three persons experienced in the pharmaceutical business: within 30 days after initiation of arbitration, each Party shall
select one person to act as arbitrator and the two Party-selected arbitrators shall select a third arbitrator within 30 days of their appointment. If the arbitrators selected by the Parties are unable or fail to agree upon the third arbitrator, the
third arbitrator shall be appointed by the AAA. The place of arbitration shall be New York, New York, and all proceedings and communications shall be in English. 

  

	 	9.6.3	Either Party may apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either Party also
may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending the arbitration award. The arbitrators shall have no
authority to award punitive or any other type of damages not measured by a Party’s compensatory damages. Each Party shall bear its own costs and expenses and attorneys’ fees and an equal share of the arbitrators’ and any
administrative fees of arbitration. 

  

	 	9.6.4	Except to the extent necessary to confirm an award or as may be required by law, neither a Party nor an arbitrator may disclose the existence, content, or results of an
arbitration without the prior written consent of both Parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute, controversy or claim would be barred by the
applicable New York statute of limitations. 

  

	 	9.6.5	 The parties agree that, in the event of a dispute over the nature or quality of performance under this Agreement, neither party may terminate the Agreement
until final resolution of the dispute through arbitration or 

  

 26 

	 	 
other judicial determination. The parties further agree that any payments made pursuant to this Agreement pending resolution of the dispute shall be refunded
if an arbitrator or court determines that such payments are not due. 

  

	 	9.6.6	As used in this Section, the term “Excluded Claim” shall mean a dispute, controversy or claim that concerns (a) the validity or infringement of a patent,
trademark or copyright; or (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory. 

  

	 	9.7	Entire Agreement; Amendments 

  
 The Agreement contains the entire understanding of the Parties with respect to the Research Program and licenses granted hereunder. All express or
implied agreements and understandings, either oral or written, with regard to the Research Program and the licenses granted hereunder are superseded by the terms of this Agreement. The Agreement may be amended, or any term hereof modified, only by a
written instrument duly executed by authorized representatives of both Parties hereto. 
  

	 	9.8	Headings 

  
 The captions to the several Articles and Sections hereof are not a part of the Agreement, but are merely for convenience to assist in locating and
reading the several Articles and Sections hereof. 
  

	 	9.9	Independent Contractors 

  
 It is expressly agreed that RENOVIS and MERCK shall be independent contractors and that the relationship between the two Parties shall not constitute a
partnership, joint venture or agency. Neither RENOVIS nor MERCK shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written
consent of the other Party. 
  

	 	9.10	Waiver 

  
 The waiver by either Party hereto of any right hereunder, or the failure of the other Party to perform, or a breach by the other Party, shall not be
deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise. 
  

 27 

	 	9.11	Cumulative Remedies 

  
 No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this
Agreement or otherwise available under law. 
  

	 	9.12	Waiver of Rule of Construction 

  
 Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the
rule of construction that any ambiguity in this Agreement shall be construed against the drafting Party shall not apply. 
  

	 	9.13	Counterparts 

  
 The Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument. 
  

 28 

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

  

	 	 	MERCK & CO., INC.	 	 	 	 	 	RENOVIS, INC.
					
	By:	 	 /s/    Illegible

	 	 	 	By:	 	 /s/    Illegible

	 	 	 Name:
	 	 	 	 	 	 Name:

	 	 	 Title:
	 	 	 	 	 	 Title:

					
	 	 	  

	 	 	 	 	 	                 7/15/03

	 	 	 Date
	 	 	 	 	 	 Date

   

 29 

 SCHEDULE 1.12 
  
 Merck Patent Rights 
  
 [*] 
  

 SCHEDULE 1.20 
  
 Renovis Patent Rights 
  

[*] 
  

 SCHEDULE 2.1 
  
 Initial Research Program 
  
 [*] 
  
  

 SCHEDULE 5.1 
  
 Criteria to Determine Preclinical Proof of Concept 
  
 [*]

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