Document:

<PAGE>
                                                                   EXHIBIT 10.53

                          LICENSE AND SUPPLY AGREEMENT

     THIS LICENSE AND SUPPLY AGREEMENT (the "Agreement") is made effective as of
the 31st day of March, 2002 (the "Effective Date") by and between SCIOS, INC., a
Delaware corporation having its principal place of business at 820 West Maude
Avenue, Sunnyvale, CA, USA 94085 ("Scios"), and GLAXO GROUP LTD., a corporation
organized under the laws of England having its principal place of business at
Glaxo Wellcome House, Berkeley Avenue, Greenford, Middlesex UB6 ONN, United
Kingdom ("GSK"). Scios and GSK are sometimes referred to herein individually as
a "Party" and collectively as the "Parties".

                                    RECITALS

     A. GSK and Scios are parties to the Summary of Terms, which contemplates
that the Parties will enter into a more definitive agreement which shall replace
the Summary of Terms.

     B. GSK and Scios wish to enter into this Agreement, which when effective
shall constitute the "Definitive Agreement" contemplated in the Summary of
Terms.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the Parties hereto agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     When used in this Summary of Terms, the following terms shall have the
meanings indicated below.

     1.1 "Acceptable Label" means a label for the Original Product satisfying
the criteria set forth on Schedule 1.1.

     1.2 "Active Pharmaceutical Ingredient" or "API" means Natrecor(R) in active
bulk form meeting the API Specifications.

     1.3 "Affiliate" means an individual, trust, business trust, joint venture,
partnership, corporation, association or any other entity which (directly or
indirectly) is controlled by, controls or is under common control with a Party.
For the purposes of this definition, the term "control" (including, with
correlative meanings, the terms "controlled by" and "under common control with")
as used with respect to any Party, shall mean the possession (directly or
indirectly) of at least 50 percent of the outstanding voting securities of a
corporation or comparable equity interest in any other type of entity.

     1.4 "API Specifications" shall mean the specifications for Active
Pharmaceutical Ingredient attached hereto as Schedule 1.4.

     1.5 "Combination Product" means [*****].

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

<PAGE>

     1.6 "Commercialization" means all activities undertaken relating to the
marketing, promotion, distribution, use, storage, sale and offer for sale of a
Product including, without limitation, advertising and any Phase IV clinical
trials.

     1.7 "Controlled" means possession of the ability to grant a license or
sublicense as provided for herein without violating the terms of any agreement
or other arrangement with a Third Party.

     1.8 "Cost of Goods" means: [*****]

     1.9 "Development" means:

         (a) all activities relating to obtaining and/or maintaining Regulatory
Approval of the Original Product in the Territory with an Acceptable Label
including, without limitation, clinical trials and the preparation, submission,
review and development of data or other information related thereto ("Type 1
Development");

         (b) Phase IV clinical trials supporting pre-launch and
commercialization of the Product but not contributing to obtaining and/or
maintaining Marketing Authorization Applications of the Original Product and any
New Product in the Territory, and excluding the Health Outcomes Study ("Type 2
Development");

         (c) all activities relating to obtaining and/or maintaining Marketing
Authorization of a New Product in the Territory, including Phase III clinical
trials and the preparation, submission, review and development of data or other
information related thereto but excluding pre-clinical, Phase I and Phase II
clinical development ("Type 3 Development"); and

         (d) design and conduct of the Health Outcomes Study.

The term "Development" shall not include process development or final finish or
fill of Product.

     1.10 "Development Expenses" means the expenses incurred by GSK for
Development pursuant to a Development Plan.

     1.11 "Development Plan" means a comprehensive plan for Development of
Products under the direction of GSK, adopted as provided in Article 2, below.

     1.12 "Field" means the development, use, distribution, importation,
storage, marketing, sale and offer for sale of Product for any human
pharmaceutical use other than as a diagnostic reagent.

     1.13 "Final Product Specifications" means the specifications for Product in
final form for commercialization and distribution, labeled in accordance with
local regulatory requirements and custom. The Final Product Specifications are
attached hereto as Schedule 1.13.

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -2-

<PAGE>

     1.14 "GSK Knowhow" means all Information relating to the Product developed
by GSK as a result of its activities under this Agreement.

     1.15 "GSK Patents" means patent applications, and patents issuing from such
patent applications, which GSK has applied for or owns as a result of its
activities under this Agreement, as well as divisionals, continuations,
continuations-in-part, reissues, reexaminations, renewals, extensions, utility
models, additions and supplementary protection certificates to any such patents
and patent applications which are necessary for development, use, importation,
manufacture, formulation, packaging, sale or offer for sale of Product outside
of the Territory.

     1.16 "Health Outcomes Study" means one or more pharmaco-economic studies
with respect to the Original Product, designed and conducted by GSK pursuant to
Section 2.3, below.

     1.17 "Information" means, whether or not patentable: (i) techniques and
data including inventions, practices, methods, know-how, data (including
pharmacological, toxicological and clinical test data, regulatory submissions
and data and analytical and quality control data), marketing, distribution, and
sales data or descriptions, (ii) compounds, compositions of matter, assays and
biological materials, and (iii) dossiers of information necessary for Regulatory
Approvals.

     1.18 "Launch" means the first commercial sale of a Product in a country in
the Territory by GSK or any of its Affiliates or sub-licensees following receipt
of Regulatory Approval in such country.

     1.19 "Major Market" shall mean each of [*****].

     1.20 "Market Acceptance Criteria" shall mean those objective criteria
regarding market acceptance of Product in each Major Market set forth on
Schedule 1.20.

     1.21 "Marketing Authorization Application" means an application for
Regulatory Approval required before commercial sale or use of the Product in the
Field in a regulatory jurisdiction.

     1.22 "Marketing Plan" means a plan setting forth the basis for
Commercialization of the Product in the Major Markets, as devised by GSK and
approved by the Steering Committee.

     1.23 "Natrecor(R)" means nesiritide or B-type natriuretic peptide (BNP) the
amino acid sequence of which is listed in Schedule 1.23, and any derivatives,
variants, analogs, homologs, fragments, N-terminally or C-terminally extended
forms, conjugates, salts, esters and amides thereof.

     1.24 "New Product" means: (i) a line extension, alternative delivery
system, additional formulation or other modification of the Original Product,
(ii) any modifications to the manufacturing process used for the Original
Product or any New Product which are material, and (iii) any preparation or
product containing Natrecor(R) for treatment of an indication other than label
indications for the Original Product approved as of the Effective Date.

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -3-

<PAGE>

     1.25 "Net Sales" means, with respect to the Original Product or a New
Product that is not a Combination Product, the amount invoiced by GSK or an
Affiliate or sublicensee of GSK for sales of a Product in the Territory, less
deductions for the following items:

     (i)   reasonable transportation and insurance charges borne by the selling
           party,

     (ii)  sales and excise taxes or customs duties paid by the selling party
           and any other governmental charges imposed upon the sale of the
           Product,

     (iii) rebates or allowances actually granted or allowed, including
           government and managed care rebates,

     (iv)  quantity discounts, cash discounts or chargebacks actually granted,
           allowed or incurred in the ordinary course of business in connection
           with the sale of the Product, and

     (v)   allowances or credits to customers, not in excess of the selling
           price of the Product, on account of governmental requirements,
           rejection, outdating, recalls or return of the Product.

[*****]

     1.26 "Original Product" means the formulation of Natrecor(R) (nesiritide)
intravenous B-type natriuretic peptide (BNP) commercially sold by Scios in the
U.S.A. as of the Effective Date for the treatment of acute decompensated heart
failure. Attached hereto as Schedule 1.26 is the package insert for the Original
Product as of the Effective Date.

     1.27 "Patent Expenses" means [*****]

     1.28 "Product" means the Original Product, any New Product and any
Combination Product.

     1.29 "Quality Assurance Agreement" means a technical and quality assurance
agreement establishing each Party's responsibilities with respect to release and
shipment of API

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -4-

<PAGE>

to GSK hereunder. The Quality Assurance Agreement shall be negotiated in good
faith by the Parties promptly after the Effective Date and shall be subject to
their mutual agreement independent of the Steering Committee.

     1.30 "Regulatory Approval" means all approvals (including pricing and
reimbursement approvals) and licenses, registrations or authorizations of a
Regulatory Authority, necessary for the use, import, storage, export, transport,
filling, labeling, packaging (to the extent that filling, labeling or packaging
are carried out by GSK or its Affiliates) or sale of a Product in a regulatory
jurisdiction in the Territory. "Regulatory Approval" shall not, however, include
any regulatory approvals related to the manufacture of API and supply of API by
Scios to GSK as contemplated herein.

     1.31 "Regulatory Authority" means a governmental entity with the authority
to grant Regulatory Approvals.

     1.32 "Scios Know-How" means all Information now or hereafter within the
Control of Scios necessary or useful for the Development or Commercialization of
the Product in the Territory, or for the filling, labeling and packaging of the
Product anywhere in the world for use or sale in the Territory.

     1.33 "Scios Patents" means: (i) those patents and patent applications shown
on Schedule 1.33 attached hereto, (ii) all patents issuing from such patent
applications, divisionals, continuations, continuations-in-part, reissues,
reexaminations, renewals, extensions, utility models, additions and
supplementary protection certificates to any such patents and patent
applications, and (iii) all patents and patent applications now or hereafter
owned or Controlled by Scios necessary or useful for the development, use,
importation, formulation, packaging, sale or offer for sale of Product in the
Territory.

     1.34 "Steering Committee" means the entity described in Article 3, below.

     1.35 "Summary of Terms" means an agreement between the Parties titled
"Binding Summary of Terms" and dated as of December 20, 2001.

     1.36 "Territory" means those countries of Western Europe, Central Europe
and Eastern Europe listed in Schedule 1.36.

     1.37 "Third Party" means an entity other than Scios or GSK or their
respective Affiliates.

                                   ARTICLE 2
                               PRODUCT DEVELOPMENT

     2.1 Scope of Development. Upon the Effective Date, GSK will assume
responsibility for Development throughout the Territory pursuant to a
Development Plan. Scios shall provide GSK with reasonable assistance in the
Development of the Original Product and with respect to

                                      -5-

<PAGE>

New Products which Scios, in its sole discretion, may have developed up to and
including Phase II clinical trials. [*****]

     2.2 Development Plan.

         2.2.1 Timing. [*****]

         2.2.2 Content of the Development Plan. The Development Plan shall,
subject to Section 2.4, below, cover:

               (a) [*****]

               (b) [*****]

     2.3 Health Outcomes Study. Promptly following the Effective Date the
Parties shall in good faith design and thereafter implement, under the direction
of GSK, one or more mutually acceptable Health Outcomes Studies for use as
appropriate in establishing pricing and reimbursement for the Original Product
in the Major Markets. GSK shall regularly report to the Steering Committee on
the progress of each Health Outcomes Study. Within 30 days after completion of
all Health Outcomes Studies and delivery to Scios of a copy of the final report
detailing the results thereof, Scios shall pay to GSK the lesser of: (i) [*****]
and (ii) [*****]. This amount shall be due regardless of the outcome of the
Health Outcomes Studies.

     2.4 Development Effort. GSK shall carry out its responsibilities under the
Development Plan using reasonable efforts consistent with the efforts that GSK
employs for its own products which have substantially the same market potential
in the Territory, and in accordance with all applicable legal and regulatory
requirements including, without limitation, then-current Good Laboratory
Practices, Good Clinical Practices, and Good Manufacturing Practices; [*****].

     2.5 Ownership of Regulatory Approvals. [*****]

     2.6 Communication with Regulatory Authorities. GSK shall have primary
responsibility for dealing with Regulatory Authorities in the Territory,
including filing all supplements and other documents with such authorities with
respect to obtaining Regulatory Approvals, reporting all adverse drug
experiences related to the Product, and handling all Product complaints. GSK
shall promptly furnish Scios with copies of all substantive correspondence it
has had with each Regulatory Authority (including, without limitation, a copy of
the final Marketing Approval Application filed with the EMEA), and with contact
reports concerning substantive conversations or meetings with each such
authority relating to Development or Commercialization. At each meeting of the
Steering Committee, GSK shall provide to the Steering Committee a report
describing the regulatory filing status of each Product throughout the
Territory.

     2.7 Costs of Development. Subject to Section 2.3, above, [*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -6-

<PAGE>

     2.8 Development of New Products Outside the Territory. Scios shall have the
sole responsibility for development of New Products outside of the Territory.
Scios shall regularly disclose to GSK its plans for New Product development and
afford GSK a reasonable opportunity to comment thereon. Notwithstanding the
foregoing, Scios shall be free, after having considered the suggestions from
GSK, to develop New Products outside of the Territory as it sees fit.

                                   ARTICLE 3
                         MANAGEMENT OF THE COLLABORATION

     3.1 Steering Committee. Within 30 days after the Effective Date, Scios and
GSK shall create a Steering Committee consisting of four qualified
representatives of each Party. A Party may change or replace its representatives
on the Steering Committee as it deems appropriate, by notice to the other Party;
provided, however, that each Party's designees shall be qualified by experience
and training to address the issues anticipated in each meeting of the Steering
Committee in which such member participates. Each member of the Steering
Committee shall devote all time reasonably necessary to participate actively on
the Steering Committee to optimize the development and commercialization of
Products as contemplated herein. Each Party will designate one of its members of
the Steering Committee as co-chairperson. The co-chairperson appointed by each
Party shall be empowered to bind such Party to decisions of the Steering
Committee to the extent contemplated herein.

     The Steering Committee may set up such subcommittees to advise it as it
deems appropriate. It is currently contemplated that the Steering Committee
shall promptly designate a manufacturing subcommittee which shall advise Scios
with respect to its supply and manufacturing obligations (including issues
related to alternative sources of supply and Cost of Goods). Notwithstanding the
foregoing, Scios, after reasonable consideration of GSK's views and the advice
of the Steering Committee (including the manufacturing subcommittee), shall have
sole discretion as to how it manages and satisfies its obligations hereunder
with respect to the manufacture and supply of API.

     3.2 Meetings of the Steering Committee. The Steering Committee shall hold
meetings at such times and places as shall be determined by the co-chairpersons.
The meetings shall be held no less frequently than once every [*****] in the
period from the Effective Date through the third year after the first Launch in
a Major Market, and [*****] thereafter. Steering Committee meetings may be held
in person or by telephone or video conference. The co-chairpersons shall
alternate in keeping written minutes which shall reflect the decisions taken at
the meetings. Such minutes shall be circulated to the Steering Committee for
review and approval within two weeks after each meeting.

     3.3 Function of the Steering Committee. The Steering Committee, directly or
through one or more subcommittees, shall manage the long-range strategy and
planning for Development and Commercialization, coordinate the activities of the
Parties under this Agreement, and perform such other functions as appropriate to
further the purposes of this Agreement as determined by the Parties.

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -7-

<PAGE>

     3.4 Decision Making. To the extent feasible, the Steering Committee shall
make decisions and take actions by consensus after an open discussion of the
matters as to which decisions are being made. [*****]

     3.5 Limitations of Powers of the Steering Committee. The Steering Committee
shall have only such powers as are expressly delegated to it in this Agreement.
The Steering Committee is not a substitute for the rights or the obligations of
the Parties and, inter alia, shall not have the authority to amend this
Agreement. Except as expressly set forth herein, the Steering Committee shall
not be involved with the day-to-day management of this Agreement.

     3.6 Liaison Manager. Each Party will designate one of its members of the
Steering Committee to act as the liaison manager to the other Party to
facilitate the performance of the rights and satisfaction of the obligations of
the Parties hereunder; provided, however, that designation of liaison managers
shall not restrict the right of the Parties to communicate among themselves as
they see fit.

                                   ARTICLE 4
                                COMMERCIALIZATION

     4.1 General. GSK shall be solely responsible for the Commercialization of
the Products throughout the Territory. It is understood and agreed that GSK
shall have the right not to Commercialize any Product in any country of the
Territory in the event that it would so decide with respect to a product of its
own having substantially the same market potential in such country.

     4.2 Marketing Plan. [*****]

     4.3 Commercialization Efforts.

     [*****]

     4.4 Product Spend. [*****]

     4.5 Advertising and Education

         4.5.1 GSK shall disclose to Scios all promotional platforms, campaign
themes, advertising and educational programs in the Major Markets containing the
Natrecor(R) trademark if such Trademark is available and appropriate for use in
the Territory. Scios shall have not less than 30 days after such disclosure to
review and comment thereon. Such programs shall be consistent with such
reasonable guidelines for the use of the Natrecor(R) trademark as Scios may from
time to time promulgate.

         4.5.2 All written or visual promotional and educational materials,
advertising, Product labeling, and documentary information regarding the Product
in the Territory shall, to

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -8-

<PAGE>

the extent practical, identify Scios as the supplier and licensor of the
Product.

     4.6 Pricing in the Territory. [*****]

                                    ARTICLE 5
                             MANUFACTURE AND SUPPLY

     5.1 Exclusive Supply and Purchase. [*****]

     5.2 Failure to Supply. [*****]

     5.3 Filling, Labeling and Packaging. [*****]

     5.4 Manufacturing Approvals. Notwithstanding Sections 2.5 and 2.6, above,
Scios will use diligent efforts to make necessary filings to obtain, or to cause
a Third Party manufacturer of API to obtain, the necessary regulatory approvals
for the manufacture of API as contemplated herein. GSK shall be promptly
notified of any proposed change in the process for the manufacture of API which
impacts the Marketing Authorization Applications and Regulatory Approval in the
Territory as well as any proposed change as to the site at which such
manufacture is to occur. Thereafter, the Parties shall in good faith consult as
to the best way of ensuring sufficient supply of API to GSK; provided, however,
that Scios shall in any event ensure a sufficient source of supply of API (as
approved by the relevant Regulatory Authorities) to GSK pending regulatory
approval, if required, to such proposed process changes or site change, and
provided that such supply is consistent with Sections 5.6 and 5.7, below. Except
as required of Scios by law, no API incorporating any such proposed change and
no API manufactured at any proposed new facility shall be supplied by Scios to
GSK hereunder without such changes having first been approved by the appropriate
Regulatory Authorities in the Major Markets or other mutual agreement by the
Parties, which regulatory approvals the Parties agree to pursue diligently
following notice from Scios of such proposed changes.

     5.5 Specifications. Scios warrants that the Active Pharmaceutical
Ingredient it supplies hereunder shall meet the API Specifications, and shall
have been manufactured in accordance with the Quality Assurance Agreement and
with all applicable laws and regulations including, without limitation, the
then-current European Good Manufacturing Practice ("GMP") compliance standards.
The API Specifications and Quality Assurance Agreement may be amended by mutual
agreement (such agreement not to be unreasonably withheld) to the extent
required by Regulatory Authorities. As New Products are developed, the Parties
will by mutual agreement establish appropriate specifications for such New
Products.

     5.6 Forecasts.

         (a) [*****]

         (b) [*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -9-

<PAGE>

     5.7 Purchase Orders. [*****]

     5.8 Delivery. All orders for deliveries of API to GSK shall be FCA
Incoterms 2000, Scios' contract manufacturing facility in Kundl, Austria (or
such other contract manufacturing facility as Scios may establish during the
term of this Agreement). Risk of loss for the Product passes to GSK upon
delivery to GSK's designated premises. GSK shall arrange and pay for the carrier
and any expenses associated with shipping and insuring Product supplied
hereunder. [*****]

     5.9  Inspection and Rejection.

          5.9.1 [*****]

          5.9.2 [*****]

          5.9.3 [*****]

          5.9.4 [*****]

     5.10 Remedies.

          5.10.1 [*****]

          5.10.2 [*****]

     5.11 Supply Price and Payment Mechanism.

          5.11.1 [*****]

          5.11.2 [*****]

          5.11.3 [*****]

          5.11.4 [*****]

          5.11.5 [*****]

                                    ARTICLE 6
                                 CONFIDENTIALITY

     6.1 Confidentiality; Exceptions. The receiving Party shall keep
confidential and shall not publish or otherwise disclose or use for any purpose
other than as provided for in this Agreement any Information and other
information and materials furnished to it by the other Party pursuant to this
Agreement, or any provision of this Agreement that is the subject of an
effective order of the Securities Exchange Commission granting confidential
treatment pursuant to the Securities Act of 1934, as amended (collectively,
"Confidential Information"), except to the extent that it can be established by
the receiving Party that such Confidential Information:

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -10-

<PAGE>

               (i)   was already known to the receiving Party at the time of
disclosure by the other Party;

               (ii)  was generally available to the public or otherwise part of
the public domain at the time of its disclosure to the receiving Party;

               (iii) became generally available to the public or otherwise part
of the public domain after its disclosure by the disclosing Party and other than
through any act or omission of the receiving Party in breach of this Agreement;
or

               (iv)  was disclosed to the receiving Party, other than under an
obligation of confidentiality, by a Third Party who had no obligation to the
disclosing Party not to disclose such information to others.

               (v)   was developed by the receiving Party's employees without
the use of or access to confidential information of the disclosing Party, as
demonstrated by contemporaneous written records of the receiving Party.

     6.2 Authorized Disclosure. A Party may disclose Confidential Information of
the other Party to the extent such disclosure is reasonably necessary in filing
or prosecuting patent applications, prosecuting or defending litigation,
complying with applicable governmental regulations or conducting preclinical or
clinical trials, provided that if a Party is required by law to make any such
disclosure it will, to the extent practicable, give reasonable advance notice to
the other Party of such disclosure requirement and, except to the extent
inappropriate in the case of patent applications, use reasonable efforts to
secure confidential treatment of such Confidential Information required to be
disclosed. In addition, each Party shall be entitled to disclose Confidential
Information, under a binder of confidentiality containing provisions as
protective as those of this Article 6, to a Third Party for the purpose of
carrying out activities authorized under this Agreement, including disclosures
to authorized or potential sub-licensees. [*****]

     6.3 Survival. This Article 6 shall survive the expiration or termination of
this Agreement for a period of [*****]; provided, however, that Confidential
Information regarding Scios' manufacturing process for API shall be kept
confidential by GSK during the term of this Agreement and for a further period
of [*****] after the expiration or termination of this Agreement, subject to the
exceptions in Section 6.1, above.

                                    ARTICLE 7
                             INFORMATION AND REPORTS

     7.1 Information and Reports During Development and Commercialization.

         7.1.1 To the extent necessary or useful to enable the Parties to
perform their respective obligations or exercise their respective rights
hereunder, GSK and Scios will each regularly disclose and make available to the
other without charge all Information (including, without limitation, copies of
all preclinical and clinical reports) known to them. Without limiting

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -11-

<PAGE>

the foregoing, promptly following the Effective Date, and at reasonable
intervals thereafter, Scios shall disclose and transfer to GSK all Scios
Know-how as is necessary or useful for the exercise by GSK of its rights
hereunder.

          7.1.2 [*****]

          7.1.3 [*****]

          7.1.4 [*****]

     7.2  Publicity Review.

          7.2.1 On or about January 7, 2002, the Parties announced the
establishment of an alliance for the marketing and development of Products in
the Territory and its key terms in a mutually agreed press release issued
simultaneously by both Parties. Following the Effective Date, neither Party
shall originate any publicity, news release, or other announcement relating to
this Agreement or to performance hereunder (collectively, "Disclosure"), without
the prior prompt review and written approval of the other, which approval shall
not be unreasonably withheld. Once specific information has been approved for
disclosure, that information may be reiterated in any subsequent Disclosure
without further approval; provided, however, that the Parties shall, to the
extent lawful, maintain the confidentiality of financial information contained
in this Agreement and resulting from the activities contemplated hereunder.

          7.2.2 Notwithstanding Section 7.2.1, a Party may make any Disclosure
it believes in good faith based upon the advice of its counsel or its auditors
is required by applicable law and without the prior approval of the other Party
may make such disclosures as are required by the rules or regulations of the
U.S. Securities and Exchange Commission or its UK counterpart. With respect to
disclosures other than those required under such rules or regulations, prior to
making such Disclosure, the disclosing Party shall provide the other Party with
a written copy or rendition of the materials proposed to be disclosed and
provide the receiving Party with an opportunity to promptly review the proposed
Disclosure.

     7.3  Use of Names. Except as required by law or in furtherance of the
exercise of its rights hereunder, neither Party shall use the name of the other
in any public announcement, press release or other public document related to
this Agreement or the understanding reflected herein without the written consent
of such other Party, which consent shall not be unreasonably withheld or
delayed. No such approval shall be required to republish a disclosure previously
made or otherwise in the public domain.

     7.4  Adverse Drug Events. Each Party shall, in a timely fashion in
accordance with the Data Safety Exchange Agreement attached as Schedule 7.4
attached hereto, report to the other Party any adverse event observed during any
use of a Product.

     7.5  Recall

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -12-

<PAGE>

          7.5.1 Any necessary recall of Product or any batch of Product from the
market in the Territory shall be effected by GSK at GSK's reasonable discretion
following, to the extent practicable, consultation with Scios.

          7.5.2 [*****]

          7.5.3 [*****]

          7.5.4 [*****]

          7.5.5 In the event of a recall of Products, each Party shall
immediately notify the other Party and cooperate in a manner which is
appropriate and reasonable under the circumstances.

     7.6  GSK shall be entitled to discontinue its Development, distribution
and/or sale of any Product if new toxicity, safety findings or side effects
shall occur that are so severe as to justify such discontinuation. In such event
the Parties shall in good faith attempt to find a mutually agreeable solution.
If the Parties are unable to agree on a mutually agreeable solution and GSK has
ceased marketing any Product for more than 60 days in any country, then Scios
shall have the right to terminate this Agreement with respect to such Product
and such country.

     7.7  [*****]

                                    ARTICLE 8
                                  PATENT RIGHTS

     8.1 Scios Patents. [*****]

     8.2 GSK Patents. [*****]

     8.3 Abandonment. [*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -13-

<PAGE>

     8.4 Infringement. [*****]

     8.5 Third Party Claims. [*****]

                                    ARTICLE 9
                                    LICENSES

     9.1 License Grant by Scios. Subject to the terms and conditions of this
Agreement, Scios hereby grants to GSK and GSK hereby accepts from Scios a sole
and exclusive license under the Scios Patents and Scios Know-How and the
Natrecor(R) trademark to develop, use, import, formulate, package, sell and
offer for sale Products within the Field in the Territory.

     9.2 License Grant by GSK. Subject to the terms and conditions of this
Agreement, GSK hereby grants to Scios and Scios hereby accepts from GSK a sole
and exclusive royalty-free license under the GSK Patents and GSK Know-How to
manufacture, develop, use, import, formulate, package, sell and offer for sale
Products outside of the Territory.

     9.3 Sub-licensing. GSK may sub-license in any country in the Territory the
license granted to it on notice to and with the consent of Scios, which consent
shall not be unreasonably withheld or delayed. No such consent shall be required
in the event of a sub-license by GSK to an Affiliate of GSK. Scios may
sub-license the license granted to it with respect to GSK Patents to any Scios
licensee outside of the Territory which in turn agrees to permit Scios to
sublicense to GSK, at no cost, patent rights related to any Product owned or
controlled by such sub-licensee. Scios may sub-license the license granted to it
with respect to GSK Knowhow only upon prior agreement of GSK, which may be
withheld or granted in GSK's sole discretion. No such GSK consent shall be
required, however, in the event of a sub-license by Scios to an Affiliate of
Scios.

     9.4 Use of Licenses. Neither Party shall use or disseminate the Patents or
Know-How of the other Party other than as expressly provided under this
Agreement.

                                   ARTICLE 10
                                PAYMENTS TO SCIOS

     10.1 License Fee. The Parties acknowledge that prior to the Effective Date
GSK has paid to Scios a nonrefundable license fee of [*****].

     10.2 Milestone Payments. GSK shall notify Scios immediately upon the
achievement of each of the milestones set forth below, whereupon Scios shall
immediately invoice GSK for the amount due. Within [*****] after the achievement
of each such milestone (and subject to Scios having previously provided such
invoice at least [*****] prior to the due date), GSK shall make a non-refundable
milestone payment to Scios in the amount set forth below. Each milestone payment
shall be due only once, notwithstanding the number of Products actually
developed or commercialized by GSK hereunder.

       -------------------------------------- ---------------------
        Milestone                              Payment
       -------------------------------------- ---------------------

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -14-

<PAGE>

       -------------------------------------- ---------------------
        [*****]                                [*****]
       -------------------------------------- ---------------------
        [*****]                                [*****]
       -------------------------------------- ---------------------
        [*****]                                [*****]
       -------------------------------------- ---------------------

     10.3 Royalty Payments. In addition to the foregoing license fee and
milestone payments, GSK shall pay to Scios royalties on Net Sales in each
calendar year at the following rates:

          [*****]

     10.4 Term of Royalty Obligations. [*****]

     10.5 Royalty Reductions.

                [*****]

     10.6 Royalties Payable Only Once; Sales to Affiliates and Sub-Licensees.
[*****]

     10.7 Reports. [*****]

     10.8 Accounting and Audits.

          (a) GSK shall keep, and shall require its Affiliates and sub-licensees
to keep, complete and accurate records of the latest [*****] of sales of
Products on which royalties are due hereunder and of Development and
Commercialization expenditures for purposes of Section 4.4, above. For the
purpose of verifying royalties due to Scios hereunder and expenditures claimed
by GSK hereunder for purposes of Section 4.4, Scios shall have the right
annually, at Scios's expense, to retain an independent certified public
accountant selected by Scios and reasonably acceptable to GSK, to review such
records in the location(s) where such records are maintained by GSK, its
Affiliates or its sub-licensees upon reasonable notice and during regular
business hours and under obligations of confidence. Results of such review shall
be made available to both Scios and GSK. If the review reflects an underpayment
of royalties to Scios such underpayment shall be promptly remitted to Scios,
together with interest at LIBOR plus two percent. If the underpayment of
royalties, or any over reporting of expenditures by GSK is equal to or greater
than [*****], then GSK pay all of the costs of such review. If the review
reflects an overpayment to Scios, Scios shall promptly refund the amount of the
overpayment to GSK, together with interest calculated at LIBOR plus two percent.

          (b) Scios shall keep complete and accurate records of the latest
[*****] of supply hereunder sufficient to enable GSK to confirm Scios' Cost of
Goods. For the purpose of verifying Cost of Goods, GSK shall have the right
[*****] to retain an independent certified public accountant selected by GSK and
reasonably acceptable to Scios, to review such records in the location(s) where
such records are maintained, upon reasonable notice and during regular business
hours and under obligations of confidentiality. Results of such review shall be
made available to both Scios and GSK. If the review reflects an overcharge by
Scios, such overcharge

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -15-

<PAGE>

shall be promptly remitted to GSK, together with interest calculated in the
manner provided in Section 10.9, below. If the amount of such overcharge is
equal to or greater than [*****], then Scios pay all of the costs of such
review. If the review reflects an undercharge by Scios, GSK shall promptly
refund the amount of the overpayment to Scios, together with interest calculated
at LIBOR plus two percent.

     10.9 Currency and Method of Payment. Except as expressly provided herein
(e.g. with respect to API supplied by Scios), all payments due or payable
hereunder shall be made in Pounds Sterling delivered by wire transfer to such
account as Scios may identify from time to time on notice to GSK. Royalty
payments due hereunder with respect to sales not denominated in Pounds Sterling
shall be converted using the applicable conversion rates for buying Pounds
Sterling used in GSK Group's financial reporting systems for the last business
day of the calendar quarter for which such royalties are payable. GSK shall pay
interest to Scios on the amount of any payments that are not paid on or before
the date such payments are due under this Agreement at a rate of LIBOR plus two
percent for the applicable period, calculated on the number of days such payment
is delinquent.

     10.10 Tax Withholding. The Parties shall use all reasonable and legal
efforts to reduce tax withholding on payments made to Scios hereunder.
Notwithstanding such efforts, if GSK concludes that tax withholdings under the
laws of any country are required with respect to payments due to Scios, GSK
shall withhold the required amount and pay it to the appropriate governmental
authority. In such a case, GSK will promptly provide Scios with original
receipts or other evidence reasonably desirable and sufficient to allow Scios to
document such tax withholdings adequately for purposes of claiming foreign tax
credits and similar benefits. No withholding deduction shall be made if Scios
furnishes lawful documentation demonstrating that the payment due is exempt from
withholding according to the applicable convention for the avoidance of double
taxation between the United States and Great Britain or other applicable law or
treaty.

     10.11 Blocked Payments. If, by reason of applicable laws or regulations in
any country, it becomes impossible or illegal for GSK or its Affiliates or
sub-licensees to transfer, or have transferred on its behalf, royalties or other
payments due hereunder to Scios, such royalties or other payments shall be
deposited in local currency in the relevant country to the credit of Scios in a
recognized banking institution designated by Scios or, if none is designated by
Scios within a period of 30 days after inquiry from GSK, in a recognized banking
institution selected by GSK and identified by notice to Scios.

     10.12 Invoice Address. Scios invoices for payments due from GSK hereunder
shall be sent (in the manner in which notice is to be sent as provided in
Section 16.4, below) to:

           Corporate Accounting
           GSK House
           980 Great West Road
           Brentfort
           Middlesex TW8 9GS

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -16-

<PAGE>

           United Kingdom

                                   ARTICLE 11
                                   TRADEMARKS

     11.1 Use of Trademark. Absent mutual agreement or as provided in Section
11.2, below, GSK shall market, advertise, sell or distribute Products only under
the trademark Natrecor(R).

     11.2 Responsible Party. GSK, in consultation with Scios, shall be
responsible for maintaining the trademark Natrecor(R) in all countries in the
Territory in which such mark is registered as of the Effective Date if such
trademark is available and appropriate for use in the Territory and, in Scios'
name, for establishing and maintaining such trademark in other countries in the
Territory in which GSK intends to Commercialize the Products, all at GSK's
expense. In the event that GSK reasonably determines that the trademark
Natrecor(R) is unavailable or inappropriate in any country in the Territory, GSK
shall have the right, at its sole expense, in consultation with Scios, and in
GSK's name, to establish an alternative trademark under which it shall
Commercialize Product in such country.

     11.3 Infringement. [*****]

     11.4 End of Agreement. [*****]

                                   ARTICLE 12
              REPRESENTATIONS AND WARRANTIES; COMPETITIVE PRODUCTS

     12.1 Joint Representations and Warranties. [*****]

     12.2 Representations and Warranties by Scios. Scios represents and warrants
to GSK that, as of the Effective Date, to the actual knowledge of the executive
officers and directors of Scios:

          [*****]

     12.3 Performance by Affiliates and Sub-licensees. The Parties recognize
that each may perform some or all of its obligations under this Agreement
through Affiliates or, to the extent permitted, by sub-licensees. Nonetheless,
each Party shall remain responsible and shall be the guarantor of the
performance by its Affiliates and sub-licensees and shall cause its Affiliates
and sub-licensees to comply with the provisions of this Agreement in connection
with such performance. In the event of a dispute arising out of the actions of
an Affiliate or sub-licensee under this Agreement, each of GSK and Scios may
proceed directly against the other Party, without any obligation to first
proceed against the Affiliate or sub-licensee.

     12.4 Competing Product Development. [*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -17-

<PAGE>

                                   ARTICLE 13
                              TERM AND TERMINATION

     13.1 Term. The term of this Agreement shall commence on the Effective Date
and shall expire upon the termination or expiration in all of the countries of
the Territory of the royalty obligations set forth in Section 10.4, above.

     13.2 Termination for Material Breach. If either Party materially breaches
this Agreement at any time, which breach is not cured within 30 days of notice
thereof from the non-breaching Party, the non-breaching Party shall have the
right to terminate this Agreement on notice to the Party in breach following the
expiration of such cure period; provided, however, that if the Party alleged to
be in breach shall have invoked the dispute resolution mechanism of Article 15
prior to the expiration of such cure period then termination shall not be
effective until the sooner of abandonment of such proceedings by the Party
alleged to be in breach or completion of the dispute resolution proceedings and
a non-appealable finding in arbitration in favor of the non-breaching Party.

     13.3 Termination for Challenge to Patent Rights. [*****]

     13.4 Unilateral Termination by GSK. GSK may, at any time by delivery of 90
days' prior notice to Scios, elect to abandon its rights and obligations with
respect to any country in the Territory, or to terminate this Agreement in toto;
provided, however, that GSK shall not have the right to terminate as to any one
country in the European Union without terminating as to all such countries. Upon
notice by GSK pursuant to this Section 13.4, this Agreement and all obligations
of Scios and GSK hereunder with respect to the country or countries in question
shall terminate. In the event that GSK terminates its rights with respect to one
or more countries but not the entire Territory, then this Agreement shall remain
in effect with respect to the countries not subject to such termination which
countries shall, thereafter, be considered the "Territory."

     13.5 Bankruptcy. All rights granted to GSK hereunder are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy
Code (the "Code") licenses of rights to "intellectual property" as defined in
Section 101(52) of the Code. GSK, as a licensee of such rights under this
Agreement shall retain and may fully exercise all of its rights and elections
under the Code, subject to performance by GSK of its obligations under this
Agreement. Scios further agrees that, in the event of the commencement of a
bankruptcy proceeding by or against Scios under the Code, GSK shall be entitled
to a complete duplicate of (or complete access to, as appropriate) any such
intellectual property and all embodiments thereof, which shall promptly be
delivered to GSK, at its sole expense: (i) upon written request from GSK
following commencement of a bankruptcy proceeding by or against Scios, or (ii)
if not delivered pursuant to subsection (i), above, upon written request from
GSK following the rejection in bankruptcy of this Agreement by or on behalf of
Scios. In the event of a filing for bankruptcy or insolvency by Scios, Scios
shall confirm to the receiver, trustee or liquidator that GSK Knowhow and GSK
Patents are the sole property of GSK and may not be disposed of by Scios except
as expressly provided herein. To the extent that Scios hereafter renegotiates
its supply agreement with Biochemie GmbH, Scios shall in good faith endeavor to
obtain assurance

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -18-

<PAGE>

that, in the event that such agreement is subject to termination because of
bankruptcy or insolvency on the part of Scios, GSK shall have the right to
assume Scios' rights and obligations thereunder without interruption.

     13.6 Effect of Termination

          13.6.1 Termination of this Agreement shall not relieve the Parties of
any liability, including any obligation to make payments hereunder, which
accrued hereunder prior to the effective date of such termination, nor preclude
a Party from pursuing all rights and remedies it may have hereunder or at law or
in equity with respect to any breach of this Agreement nor prejudice a Party's
right to obtain performance of any obligation which accrued hereunder prior to
the effective date of such termination. Upon termination (but not expiration of
the term of this Agreement), all licenses and rights to Patents and Know-How
granted hereunder shall terminate.

          13.6.2 Upon termination of this Agreement (but not expiration of its
term), all Confidential Information supplied by one Party shall be returned by
the other Party except for one copy of such information retained solely for
legal archival or regulatory purposes;

          13.6.3 Upon termination of this Agreement (but not expiration of its
term), GSK shall cooperate in the prompt transfer to Scios of all Marketing
Authorization Applications and Regulatory Approvals related to the Products in
the Territory, and shall diligently take such other actions and execute such
other instruments, assignments and documents as may be necessary to effect the
transfer or reconveyance of rights hereunder to Scios and the relinquishment of
such rights by GSK.

          13.6.4 Following termination of this Agreement, GSK shall have [*****]
to sell any Product in its possession as of the effective date of termination,
subject to its obligation to pay royalties to Scios as provided hereinabove with
respect to such sales.

     13.7 Surviving Rights. [*****]

                                   ARTICLE 14
                                 INDEMNIFICATION

     14.1 Indemnification by GSK. [*****]

     14.2 Indemnification by Scios. [*****]

     14.3 Procedure. A Party seeking indemnification under Section 14.1 or
Section 14.2, shall inform the other Party of a claim as soon as reasonably
practicable after it receives notice of the Third Party claim, permit the
indemnifying Party to assume direction and control of the defense of the Third
Party claim (including the right to settle the claim solely for monetary
consideration), and cooperate as requested (at the expense of the indemnifying
Party) in the defense of the Third Party claim.

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -19-

<PAGE>

     14.4 Insurance. [*****]

                                   ARTICLE 15
                               DISPUTE RESOLUTION

     15.1 Disputes. All disputes arising between the Parties hereunder or with
respect to this Agreement shall be resolved solely as provided in this Article
15. Any such dispute which the Parties are unable to resolve directly may be
referred by either Party to the Steering Committee for resolution. If the
Steering Committee is unable to resolve such dispute within 30 days after
referral, either Party may, on notice to the other, have such dispute referred
to the CEO of Scios and the European Chairman of GSK for attempted resolution by
good faith negotiation. If such individuals are unable to resolve such dispute
within 30 days after referral, then either Party may thereafter seek to resolve
the dispute through arbitration in accordance with the Rules of Arbitration of
the International Chamber of Commerce by one or more arbitrators appointed in
accordance with such rules, in English. The place of arbitration shall be
London, England, if arbitration is requested by Scios and shall be San
Francisco, California, if arbitration is requested by GSK.

     15.2 Applicable Law. This Agreement shall be governed by and construed
under the substantive laws of the State of New York, without regard to conflicts
of law principles.

                                   ARTICLE 16
                                  MISCELLANEOUS

     16.1 Assignment.

          16.1.1 [*****]

          16.1.2 [*****]

          16.1.3 [*****]

     16.2 Force Majeure. Except as otherwise expressly provided herein, neither
Party shall lose any rights hereunder or be liable to the other Party for
damages or losses on account of failure of performance by the defaulting Party
if the failure is occasioned by government action, war, acts of gods, or any
other similar or dissimilar cause beyond the control of the defaulting Party,
provided that the Party claiming force majeure has exerted all reasonable
efforts to avoid or remedy such force majeure.

     16.3 Further Actions. Each Party agrees to execute, acknowledge and deliver
such further instruments, and to do all such other acts, as may be necessary or
appropriate in order to carry out the purposes and intent of this Agreement.

     16.4 Notices. All notices hereunder shall be in writing and shall be deemed
given if delivered personally or by facsimile transmission with confirmed
answer-back, mailed by registered mail (return receipt requested), postage
prepaid, or sent by internationally recognized

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                                      -20-

<PAGE>

express courier service, to the Parties at the addresses set forth below (or at
such other address for a Party as shall be specified by like notice; provided,
that notices of a change of address shall be effective only upon receipt
thereof). Notice by personal delivery shall be deemed effective upon receipt.
Notice by courier or registered mail shall be deemed effective three business
dates after the date sent. Notice by fax shall be deemed effective upon receipt
by the sending Party of confirmation of receipt of the fax by the receiving
Party.

     If to Scios:          749 North Mary Avenue
                           Sunnyvale, CA 94085
                           Fax: 408-616-8319
                           Attn:  General Counsel

     If to GSK:            Glaxo Wellcome House
                           Berkeley Avenue
                           Greenford, Middlesex
                           UB6 ONN, United Kingdom
                           Fax:  01144 2080 47 69 04
                           Attn:  Company Secretary

     16.5 Waiver. The waiver from time to time by either of the Parties of any
of their rights or their failure to exercise any remedy shall not operate or be
construed as a continuing waiver of same or of any other of such Party's rights
or remedies provided in this Agreement.

     16.6 Severability. If any term, covenant or condition of this Agreement or
the application thereof to any Party or circumstance shall, to any extent, be
held to be invalid or unenforceable, then the remainder of this Agreement, or
the application of such term, covenant or condition to Parties or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term, covenant or condition of this Agreement shall be
valid and be enforced to the fullest extent permitted by law. In such event the
Parties shall in good faith attempt to reform this Agreement to reflect the
intent and anticipated consequences of the invalidated or unenforcable
provision, to the extent possible in a way that is lawful.

     16.7 Ambiguities. Ambiguities, if any, in this Agreement shall not be
construed against either Party, irrespective of which Party may be deemed to
have authored the ambiguous provision.

     16.8 Headings. The section and article headings contained herein are for
the purposes of convenience only and are not intended to define or limit the
contents of said sections or articles.

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

                                      -21-

<PAGE>

     16.10 Entire Agreement. This Agreement (including all Schedules hereto)
sets forth all the covenants, promises, agreements, warranties, representations,
conditions and understandings between the Parties hereto and supersedes and
terminates all prior agreements and understandings between the Parties. Upon the
Effective Date, the Summary of Terms shall be deemed to have been terminated.

     16.11 Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO
THE OTHER HEREUNDER FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE.

IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate
originals by their proper officers as of the Effective Date.

SCIOS INC.                               GLAXO GROUP LTD.

By:  Matthew R. Hooper                   By:   S. Bicknell
   ------------------------------------      -----------------------------------

Its: Vice President & General Counsel    Its:  Secretary
    ------------------------------------      ----------------------------------

                                      -22-

<PAGE>

                                  Schedule 1.1

                                Acceptable Label

<PAGE>

                                  SCHEDULE 1.1

                               ACCEPTABLE LABELING

Acceptable Labeling will be achieved provided the following criteria are met:

1. [*****]

2. [*****]

3. [*****]

4. [*****]

5. [*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                  SCHEDULE 1.4

                               API Specifications

<PAGE>

[*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                  Schedule 1.13

                          Final Product Specifications

<PAGE>

[*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                  Schedule 1.20

                           Market Acceptance Criteria

<PAGE>

                                  Schedule 1.20

                           Market Acceptance Criteria

[*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                  SCHEDULE 1.23

                         AMINO ACID SEQUENCE OF NATRECOR

<PAGE>

                                  SCHEDULE 1.23

                        AMINO ACID SEQUENCE FOR NATRECOR

                        SER-PRO-LYS-MET-VAL-GLN-GLY-SER-
                        GLY-CYS-PHE-GLY-ARG-LYS-MET-ASP-
                      ARG-ILE-SER-SER-SER-SER-GLY-LEU-GLY-
                           CYS-LYS-VAL-LEU-ARG-ARG-HIS

<PAGE>

                                  Schedule 1.26

                                 Package Insert

<PAGE>

                                                                        Item 2-A
                                                                  Package Insert

NATRECOR(R) (NESIRITIDE)
FOR INJECTION
FOR INTRAVENOUS INFUSION ONLY

DESCRIPTION

Natrecor(R) (nesiritide) is a sterile, purified preparation of a new drug class,
human B-type natriuretic peptide (hBNP), and is manufactured from E. coli using
recombinant DNA technology. Nesiritide has a molecular weight of 3464 g/mol and
an empirical formula of C143H244N50O42S4. Nesiritide has the same 32 amino acid
sequence as the endogenous peptide, which is produced by the ventricular
myocardium.

            [GRAPHIC: Picture of amino acid sequence for Nesiritide]

Natrecor is formulated as the citrate salt of rhBNP, and is provided in a
sterile, single-use vial. Each 1.5 mg vial contains a white- to off-white
lyophilized powder for intravenous (IV) administration after reconstitution. The
quantitative composition of the lyophilized drug per vial is: nesiritide 1.58
mg, mannitol 20.0 mg, citric acid monohydrate 2.1 mg, and sodium citrate
dihydrate 2.94 mg.

Mechanism of Action

Human BNP binds to the particulate guanylate cyclase receptor of vascular smooth
muscle and endothelial cells, leading to increased intracellular concentrations
of guanosine 3'5'-cyclic monophosphate (cGMP) and smooth muscle cell relaxation.
Cyclic GMP serves as a second messenger to dilate veins and arteries. Nesiritide
has been shown to relax isolated human arterial and venous tissue preparations
that were preconstracted with either endothelin-1 or the alpha-adrenergic
agonist, phenylephrine.

In human studies, nesiritide produced dose-dependent reductions in pulmonary
capillary wedge pressure (PCWP) and systemic arterial pressure in patients with
heart failure.

In animals, nesiritide had no effects on cardiac contractility or on measures of
cardiac electrophysiology such as atrial and ventricular effective refractory
times or atrioventricular node conduction.

Naturally occurring atrial natriuretic peptide (ANP), a related peptide,
increases vascular permeability in animals and humans and may reduce
intravascular volume. The effect of nesiritide on vascular permeability has not
been studied.

Pharmacokinetics

In patients with congestive heart failure (CHF), Natrecor administered
intravenously by infusion or bolus exhibits biphasic disposition from the
plasma. The mean terminal elimination half-life (t1/2) of Natrecor is
approximately 18 minutes and was associated with approximately 2/3 of the
area-under-the-curve (AUC). The mean initial elimination phase was estimated to
be approximately 2 minutes. In these patients, the mean

<PAGE>

volume of distribution of the central compartment (Vc) of Natrecor was estimated
to be 0.073 L/kg, the mean steady-state volume of distribution (Vss) was 0.19
L/kg, and the mean clearance (CL) was approximately 9.2 mL/min/kg. At steady
state, plasma BNP levels increase from baseline endogenous levels by
approximately 3-fold to 6-fold with Natrecor infusion doses ranging from 0.01 to
0.03 (micro)g/kg/min.

Elimination

Human BNP is cleared from the circulation via the following three independent
mechanisms, in order of decreasing importance: 1) binding to cell surface
clearance receptors with subsequent cellular internalization and lysosomal
proteolysis; 2) proteolytic cleavage of the peptide by endopeptidases, such as
neutral endopeptidase, which are present on the vascular lumenal surface; and 3)
renal filtration.

Special Populations

Although Natrecor is eliminated, in part, through renal clearance, clinical data
suggest that dose adjustment is not required in patients with renal
insufficiency. The effects of Natrecor on PCWP, cardiac index (CI), and systolic
blood pressure (SBP) were not significantly different in patients with chronic
renal insufficiency (baseline serum creatinine ranging from 2 mg/dL to 4.3
mg/dL), and patients with normal renal function. The population pharmacokinetic
(PK) analyses carried out to determine the effects of demographics and clinical
variables on PK parameters showed that clearance of Natrecor is proportional to
body weight, supporting the administration of weight-adjusted dosing of Natrecor
(i.e., administration on a (micro)g/kg/min basis). Clearance was not influenced
significantly by age, gender, race/ethnicity, baseline endogenous hBNP
concentration, severity of CHP (as indicated by baseline PCWP, baseline CI, or
New York Heart Association [NYHA] classification), or concomitant administration
of an ACE inhibitor.

Effects of Concomitant Medications

The co-administration of Natrecor with enalapril did not have significant
effects on the PK of Natrecor. The PK effect of co-administration of Natrecor
with other IV vasodilators such as nitroglycerin, nitroprusside, milrinone, or
IV ACE inhibitors has not been evaluated. During clinical studies, Natrecor was
administered concomitantly with other medications, including: diuretics,
digoxin, oral ACE inhibitors, anticoagulants, oral nitrates, statins, class III
antiarrhythmic agents, beta-blockers, dobutamine, calcium channel blockers,
angiotensin II receptor antagonists, and dopamine. Although no PK interactions
were specifically assessed, there did not appear to be evidence suggesting any
clinically significant PK interaction.

Pharmacodynamics

The recommended dosing regimen of Natrecor is a 2 (micro)g/kg IV bolus followed
by an intravenous infusion dose of 0.01 (micro)g/kg/min. With this dosing
regimen, 60% of the 3-hour effect on PCWP reduction is achieved within 15
minutes after the bolus, reaching 95% of the 3-hour effect within 1 hour.
Approximately seventy percent of the 3-hour effect on SBP reduction is reached
within 15 minutes. The pharmacodynamic (PD) half-life of the onset and offset of
the hemodynamic effect of Natrecor is longer than what the PK half-life of 18
minutes would predict. For example, in patients who developed symptomatic
hypotension in the VMAC (Vasodilation in the Management of Acute Congestive
Heart Failure) trial, half of the recovery of SBP toward the baseline value
after discontinuation of reduction of the dose of Natrecor was observed in about
60 minutes. When higher doses of Natrecor were infused, the duration of
hypotension was sometimes several hours.

Clinical Trials

Natrecor has been studied in 10 clinical trial including 941 patients with CHF
(NYHA class II-III 61%, NYHA class IV 36%; mean age 60 years, women 28%). There
were five randomized, multi-center, placebo- or active

<PAGE>

controlled studies (comparative agents included nitroglycerin, dobutamine,
milrinone, nitroprusside, or dopamine) in which 772 patients with decompensated
CHF received continuous infusions of Natrecor at doses ranging from 0.01 to 0.03
(micro)g/kg/min. (See the ADVERSE REACTION section for relative frequency of
adverse events at doses ranging from the recommended dose up to 0.03
(micro)g/kg/min). Of these patients, the majority (n = 541, 70%) received the
Natrecor infusion for at least 24 hours; 371 (48%) received Natrecor for 24-48
hours, and 170 (22%) received Natrecor for greater than 48 hours.

In controlled trials, Natrecor has been used alone or in conjunction with other
standard therapies, including diuretics (79%), digoxin (62%), oral ACE
inhibitors (55%), anticoagulants (38%), oral nitrates (32%), statins (18%),
class III antiarrhythmic agents (16%), beta-blockers (15%), dobutamine (15%),
calcium channel blockers (11%), angiotensin II receptor antagonists (6%), and
dopamine (4%). Natrecor has been studied in a broad range of patients, including
the elderly (42% > 65 years of age), women (30%), minorities (26% black), and
patients with a history of significant morbidities such as hypertension (67%),
previous myocardial infarction (50%), diabetes (44%), atrial
fibrillation/flutter (34%), nonsustained ventricular tachycardia (25%),
ventricular tachycardia/fibrillation (12%), preserved systolic function (9%),
and acute coronary syndromes less than 7 days before the start of Natrecor (4%).

The VMAC (Vasodilation in the Management of Acute Congestive Heart Failure)
trial was a randomized, double-blind study of 489 patients (246 patients
requiring a right heart catheter, 243 patients without a right heart catheter)
who required hospitalization for management of shortness of breath at rest due
to acutely decompensated CHF. The study compared the effects of Natrecor,
placebo, and IV nitroglycerin when added to background therapy (IV and oral
diuretics, non-IV cardiac medications, dobutamine, and dopamine). Patients with
acute coronary syndrome, preserved systolic function, arrhythmia, and renal
insufficiency were not excluded. The primary endpoints of the study were the
change from baseline in PCWP and the change from baseline in patients' dyspnea,
evaluated after three hours. Close attention was also paid to the occurrence and
persistence of hypotension, given nesiritide's relatively long (compared to
nitroglycerin) PK and PD half-life.

Natrecor was administered as a 2 (micro)g/kg bolus over approximately 60
seconds, followed by a continuous fixed dose infusion of 0.01 (micro)g/kg/min.
After the 3-hour placebo-controlled period, patients receiving placebo crossed
over to double-blinded active therapy with either Natrecor or nitroglycerin. The
nitroglycerin dose was titrated at the physician's discretion. A subset of
patients in the VMAC trial with central hemodynamic monitoring who were treated
with Natrecor (62 of 124 patients) were allowed dose increases of Natrecor after
the first 3 hours of treatment if the PCWP was 20 mm Hg and the SBP was 100 mm
Hg. Dose increases of a 1 (micro)g/kg bolus followed by an increase of the
infusion dose by 0.005 (micro)g/kg/min were allowed every 3 hours, up to a
maximum dose of 0.03 (micro)g/kg/min. Overall, 23 patients in this subset had
the dose of Natrecor increased in the VMAC trial.

In a second double-blind study, 127 patients requiring hospitalization for
symptomatic CHF were randomized to placebo or to one of two doses of Natrecor
(0.015 (micro)g/kg/min preceded by an IV bolus of 0.3 (micro)g/kg, and 0.03
(micro)g/kg/min preceded by an IV bolus of 0.6 (micro)g/kg). The primary
endpoint of the trial was the change in PCWP from baseline to 6 hours, but the
effect on symptoms also was examined.

Effects on Symptoms

In the VMAC study, patients receiving Natrecor reported greater improvement in
their dyspnea at 3 hours than patients receiving placebo (p = 0.034).

In the dose-response study, patients receiving both doses of Natrecor reported
greater improvement in dyspnea at 6 hours than patients receiving placebo.

Effects on Hemodynamics

<PAGE>

The PCWP, right atrial pressure (RAP), CI, and other hemodynamic variables were
monitored in 246 of the patients in the VMAC trial. There was a reduction in
mean PCWP within 15 minutes of starting the Natrecor infusion, with most of the
effect seen at 3 hours being achieved within the first 60 minutes of the
infusion (see Pharmacodynamics).

In several studies, hemodynamic parameters were measured after Natrecor
withdrawal. Following discontinuation of Natrecor, PCWP returns to within 10% of
baseline within 2 hours, but no rebound increase to levels above baseline state
was observed. There was also no evidence of tachyphylaxis to the hemodynamic
effects of Natrecor in the clinical trials.

The following table and graph summarize the changes in the VMAC trial in PCWP
and other measures during the first 3 hours.

                      MEAN HEMODYNAMIC CHANGE FROM BASELINE
<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------------
                                                            Placebo           Nitroglycerin            Natrecor
Effects at 3 Hours                                         (n = 62)              (n = 60)             (n = 124)
-------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>                <C>                     <C>
Pulmonary capillary wedge pressure (mm Hg)                   -2.0                 -3.8                  -5.8(2)
-------------------------------------------------------------------------------------------------------------------
Right atrial pressure (mm Hg)                                 0.0                 -2.6                  -3.1(2)
-------------------------------------------------------------------------------------------------------------------
Cardiac index (L/min/M2)                                      0.0                  0.2                   0.1
-------------------------------------------------------------------------------------------------------------------
Mean pulmonary artery pressure (mm Hg)                       -1.1                 -2.5                  -5.4(2)
-------------------------------------------------------------------------------------------------------------------
Systemic vascular resistance (dynes*sec*cm-5)                -44                  -105                  -144
-------------------------------------------------------------------------------------------------------------------
Systolic blood pressure(1) (mm Hg)                           -2.5                 -5.7(2)               -5.6(2)
-------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) Based on all treated subjects: Placebo n=142, nitroglycerin n=143, Natrecor
    n=204
(2) p less than 0.05 compared to placebo

       [GRAPHIC: GRAPH COMPARING MEAN CHANGES IN PCWP OVER A 3 HOUR PERIOD
                    FOR PLACEBO, NITROGLYCERIN and NATRECOR]

<PAGE>

The VMAC study does not constitute an adequate effectiveness comparison with
nitroglycerin. In this trial, the nitroglycerin group provides a rough landmark
using a familiar therapy and regimen.

Effect on Urine Output

In the VMAC trial, in which the use of diuretics was not restricted, the mean
change in volume status (output minus input) during the first 24 hours in the
nitroglycerin and Natrecor groups was similar: 1279 + 1455 mL and 1257 + 1657
mL, respectively.

INDICATIONS AND USAGE

Natrecor is indicated for the intravenous treatment of patients with acutely
decompensated congestive heart failure who have dyspnea at rest or with minimal
activity. In this population, the use of Natrecor reduced pulmonary capillary
wedge pressure and improved dyspnea.

CONTRAINDICATIONS

Natrecor is contraindicated in patients who are hypersensitive to any of its
components. Natrecor should not be used as primary therapy for patients with
cardiogenic shock or in patients with a systolic blood pressure  90 mm Hg.

WARNINGS

Administration of Natrecor should be avoided in patients suspected of having, or
known to have, low cardiac filling pressures.

PRECAUTIONS

General: Parenteral administration of protein pharmaceuticals of E. coli-derived
products should be attended by appropriate precautions in case of an allergic or
untoward reaction. No serious allergic or anaphylactic reactions have been
reported with Natrecor.

Natrecor is not recommended for patients for whom vasodilating agents are not
appropriate, such as patients with significant valvular stenosis, restrictive or
obstructive cardiomyopathy, constrictive pericarditis, pericardial tamponade, or
other conditions in which cardiac output is dependent upon venous return, or for
patients suspected to have low cardiac filling pressures. (See
CONTRAINDICATIONS.)

Renal: Natrecor may affect renal function in susceptible individuals. In
patients with severe heart failure whose renal function may depend on the
activity of the renin-angiotensin-aldosterone system, treatment with Natrecor
may be associated with azotemia. When Natrecor was initiated at doses higher
than 0.01 (micro)g/kg/min (0.015 and 0.03 (micro)g/kg/min), there was an
increased rate of elevated serum creatinine over baseline compared with standard
therapies, although the rate of acute renal failure and need for dialysis was
not increased. In the 30-day follow-up period in the VMAC trial, 5 patients in
the nitroglycerin group (2%) and 9 patients in the Natrecor group (3%) required
first-time dialysis.

Cardiovascular: Natrecor may cause hypotension. In the VMAC trial, in patients
given the recommended dose (2 (micro)g/kg bolus followed by a 0.01
(micro)g/kg/min infusion) or the adjustable dose, the incidence of symptomatic
hypotension in the first 24 hour was similar for Natrecor (4%) and IV
nitroglycerin (5%). When hypotension occurred, however, the duration of
symptomatic hypotension was longer with Natrecor (mean duration was 2.2 hours)
than with nitroglycerin (mean duration was 0.7 hours). In earlier trials, when
Natrecor

<PAGE>

was initiated at doses higher than the 2-(micro)g/kg bolus followed by a
0.01-(micro)g/kg/min infusion (i.e., 0.015 and 0.030 (micro)g/kg/min preceded by
a small bolus), there were more hypotensive episodes and these episodes were of
greater intensity and duration. They were also more often symptomatic and/or
more likely to require medical intervention (see ADVERSE REACTIONS). Natrecor
should be administered only in setting where blood pressure can be monitored
closely, and the dose of Natrecor should be reduced or the drug discontinued in
patients who develop hypotension (see Dosing Instructions). The rate of
symptomatic hypotension may be increased in patients with a blood pressure 100
mm Hg at baseline, and Natrecor should be used cautiously in these patients. The
potential for hypotension may be increased by combining Natrecor with other
drugs that may cause hypotension. For example, in the VMAC trial in patients
treated with either Natrecor or nitroglycerin therapy, the frequency of
symptomatic hypotension in patients who received an oral ACE inhibitor was 6%,
compared to a frequency of symptomatic hypotension of 1% in patients who did not
receive an oral ACE inhibitor.

Drug Interactions: No trials specifically examining potential drug interactions
with Natrecor were conducted, although many concomitant drugs were used in
clinical trials. No drug interactions were detected except for an increase in
symptomatic hypotension in patients receiving oral ACE inhibitors (see
PRECAUTIONS, Cardiovascular).

The co-administration of Natrecor with IV vasodilators such as nitroglycerin,
nitroprusside, milrinone, or IV ACE inhibitors has not been evaluated (these
drugs were not co-administered with Natrecor in clinical trials).

Carcinogensis, Mutagenesis, Impairment of Fertility: Long-term studies in
animals have not been performed to evaluate the carcinogenic potential or the
effect on fertility of nesiritide.

Nesiritide did not increase the frequency of mutations when used in an in vitro
bacterial cell assay (Ames test). No other genotoxicity studies were performed.

Pregnancy; Category C: Animal developmental and reproductive toxicity studies
have not been conducted with nesiritide. It is also not known whether Natrecor
can cause fetal harm when administered to pregnant women or can affect
reproductive capacity. Natrecor should be used during pregnancy only if the
potential benefit justifies any possible risk to the fetus.

Nursing Mothers: It is not known whether this drug is excreted in human milk.
Therefore, caution should be exercised when Natrecor is administered to a
nursing woman.

Pediatric Use: The safety and effectiveness of Natrecor in pediatric patients
has not been established.

Geriatric Use: Of the total number of subjects in clinical trials treated with
Natrecor (n = 941), 38% were 65 years or older and 16% were 75 years or older.
No overall differences in effectiveness were observed between these subjects and
younger subjects, and other reported clinical experience has not identified
differences in responses between the elderly and younger patients. Some older
individuals may be more sensitive to the effect of Natrecor than younger
individuals.

<PAGE>

ADVERSE REACTIONS

Adverse events that occurred with at least a 3% frequency during the first 24
hours of Natrecor infusion are shown in the following table.

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------
                                        VMAC Trial                              Other Long Infusion Trials
---------------------------------------------------------------------------------------------------------------------------
                                                                                             Natrecor (micro)g/kg/min
                                                           Natrecor                         -------------------------------
                                        Nitroglycerin      Recommended Dose     Control*     0.015           0.03
Adverse Event                           (n = 216)          (n = 273)            (n = 256)    (n = 253)       (n = 246)
---------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                 <C>                 <C>          <C>             <C>
Cardiovascular
---------------------------------------------------------------------------------------------------------------------------
Hypotension                                 25(12%)           31(11%)           20(8%)         56(22%)        87(35%)
---------------------------------------------------------------------------------------------------------------------------
  Symptomatic Hypotension                   10(5%)            12(4%)             8(3%)         28(11%)        42(17%)
---------------------------------------------------------------------------------------------------------------------------
  Asymptomatic Hypotension                  17(8%)            23(8%)            13(5%)         31(12%)        49(20%)
---------------------------------------------------------------------------------------------------------------------------
Ventricular Tachycardia (VT)                11(5%)             9(3%)            25(10%)        25(10%)        10(4%)
---------------------------------------------------------------------------------------------------------------------------
  Non-sustained VT                          11(5%)             9(3%)            23(9%)         24(9%)          9(4%)
---------------------------------------------------------------------------------------------------------------------------
Ventricular Extrasystoles                    2(1%)             7(3%)            15(6%)         10(4%)          9(4%)
---------------------------------------------------------------------------------------------------------------------------
Angina Pectoris                              5(2%)             5(2%)             6(2%)         14(6%)          6(2%)
---------------------------------------------------------------------------------------------------------------------------
Bradycardia                             1(less than 1%)        3(1%)        1(less than 1%)     8(3%)         13(5%)
---------------------------------------------------------------------------------------------------------------------------
Body as a Whole
---------------------------------------------------------------------------------------------------------------------------
Headache                                    44(20%)           21(8%)            23(9%)         23(9%)         17(7%)
---------------------------------------------------------------------------------------------------------------------------
Abdominal Pain                              11(5%)             4(1%)            10(4%)          6(2%)          8(3%)
---------------------------------------------------------------------------------------------------------------------------
Back Pain                                    7(3%)            10(4%)             4(2%)          5(2%)          3(1%)
---------------------------------------------------------------------------------------------------------------------------
Nervous
---------------------------------------------------------------------------------------------------------------------------
Insomnia                                     9(4%)             6(2%)             7(3%)         15(6%)         15(6%)
---------------------------------------------------------------------------------------------------------------------------
Dizziness                                    4(2%)             7(3%)             7(3%)         16(6%)         12(5%)
---------------------------------------------------------------------------------------------------------------------------
Anxiety                                      6(3%)             8(3%)             2(1%)          8(3%)          4(2%)
---------------------------------------------------------------------------------------------------------------------------
Digestive
---------------------------------------------------------------------------------------------------------------------------
Nausea                                      13(6%)            10(4%)            12(5%)         24(9%)         33(13%)
---------------------------------------------------------------------------------------------------------------------------
Vomiting                                     4(2%)             4(1%)             2(1%)         6(2%)          10(4%)
---------------------------------------------------------------------------------------------------------------------------

</TABLE>

* Includes dobutamine, milrinone, nitroglycerin, placebo,
  dopamine, nitroprusside, or amrinone

Adverse events that are not listed in the above table that occurred in at least
1% of patients who received any of the above Natrecor doses included:
Tachycardia, atrial fibrillation, AV node conduction abnormalities, catheter
pain, fever, injection site reaction, confusion, paresthesia, somnolence,
tremor, increased cough, hemoptysis, apnea, increased creatinine, sweating,
pruritis, rash, leg cramps, amblyopia, anemia. All reported events (at least 1%)
are included except those already listed, those too general to be informative,
and those not reasonably associated with the use of the drug because they were
associated with the condition being treated or are very common in the treated
population.

In placebo and active-controlled clinical trials, Natrecor has not been
associated with an increase in atrial or ventricular tachyarrhythmias. In
placebo-controlled trials, the incidence of VT in both Natrecor and placebo
patients was 2%. In the PRECEDENT (Prospective Randomized Evaluation of Cardiac
Ectopy with Dobutamine or Natrecor Therapy) trial, the effects of Natrecor (n =
163) and dobutamine (n = 83) on the provocation or aggravation of existing
ventricular arrhythmias in patients with decompensated CHF was

<PAGE>

compared using Holter monitoring. Treatment with Natrecor (0.015 and 0.03
(micro)g/kg/min without an initial bolus) for 24 hours did not aggravate
pre-existing VT or the frequency of premature ventricular beats, compared to a
baseline 24-hour Holter tape.

Clinical Laboratory

In the PRECEDENT trial, the incidence of elevations in serum creatinine to > 0.5
mg/dL above baseline through day 14 was higher in the Natrecor 0.015
(micro)g/kg/min group (17%) and the Natrecor 0.03 (micro)g/kg/min group (19%)
than with standard therapy (11%). In the VMAC trial, through day 30, the
incidence of elevations in creatinine to > 0.5 mg/dL above baseline was 28% and
21% in the Natrecor (2 (micro)g/kg bolus followed by 0.010 (micro)g/kg/min) and
nitroglycerin groups, respectively.

Effect on Mortality

In the VMAC trial, the mortality rates at six months in the patients receiving
Natrecor and nitroglycerin were 25.1% (95% confidence interval, 20.0% to 30.5%)
and 20.8% (95% confidence interval, 15.5% to 26.5%), respectively. In all
controlled trials combined, the mortality rates for Natrecor and active control
(including nitroglycerin, dobutamine, nitroprusside, milrinone, amrinone and
dopamine) patients were 21.5% and 21.7%, respectively.

OVERDOSAGE

No data are available with respect to overdosage in humans. The expected
reaction would be excessive hypotension, which should be treated with drug
discontinuation or reduction (see PRECAUTIONS) and appropriate measures.

DOSAGE AND ADMINISTRATION

Natrecor (nesiritide) is for intravenous use only. There is limited experience
with administering Natrecor for longer than 48 hours. Blood pressure should be
monitored closely during Natrecor administration. If hypotension occurs during
the administration of Natrecor, the dose should be reduced or discontinued and
other measures to support blood pressure should be started (IV fluids, changes
in body position). In the VMAC trial, when symptomatic hypotension occurred,
Natrecor was discontinued and subsequently could be restarted at a dose that was
reduced by 30% (with no bolus administration) once the patient was stabilized.
Because hypotension caused by Natrecor may be prolonged (up to hours), a period
of observation may be necessary before restarting the drug.

Preparation

1. Reconstitute one 1.5 mg vial of Natrecor by adding 5 mL of diluent removed
   from a pre-filled 250 mL plastic IV bag containing the diluent of choice. The
   following preservative-free diluents are recommended for reconstitution: 5%
   Dextrose Injection (D5W), USP; 0.9% Sodium Chloride Injection, USP; 5%
   Dextrose and 0.45% Sodium Chloride Injection, USP, or 5% Dextrose and 0.2%
   Sodium Chloride Injection, USP.

2. Do not shake the vial. Rock the vial gently so that all surfaces, including
   the stopper, are in contact with the diluent to ensure complete
   reconstitution. Use only a clear, essentially colorless solution.

3. Withdraw the entire contents of the reconstituted Natrecor vial and add to
   the 250 mL plastic IV bag. This will yield a solution with a concentration of
   Natrecor of approximately 6 (micro)g/mL. The IV bag should be inverted
   several times to ensure complete mixing of the solution.

<PAGE>

4. Use the reconstituted solution within 24 hours, as Natrecor contains no
   antimicrobial preservative. Parenteral drug products should be inspected
   visually for particulate matter and discoloration prior to administration,
   whenever solution and container permit. Reconstituted vials of Natrecor may
   be left at Controlled Room Temperature (20 - 25(degree)C; 68 - 77(degree)F)
   as per United States Pharmacopeia (USP) or may be refrigerated (2 -
   8(degree)C; 36 - 46(degree)F) for up to 24 hours.

Dosing Instructions

The recommended dose of Natrecor is an IV bolus of 2 (micro)g/kg followed by a
continuous infusion of 0.01 (micro)g/kg/min. Natrecor should not be initiated at
a dose that is above the recommended dose.

Prime the IV tubing with an infusion of 25 mL prior to connecting to the
patient's vascular access port and prior to administering the bolus or starting
the infusion.

Bolus followed by infusion: After preparation of the infusion bag, as described
previously, withdraw the bolus volume (see table below) from the Natrecor
infusion bag, and administer it over approximately 60 seconds through an IV port
in the tubing. Immediately following the administration of the bolus, infuse
Natrecor at a flow rate of 0.1 mL/kg/hr. This will deliver a Natrecor infusion
dose of 0.01 (micro)g/kg/min.

To calculate the appropriate bolus volume and infusion flow rate to deliver a
0.01 (micro)g/kg/min dose, use the following formulas (or refer to the following
dosing table):

              BOLUS VOLUME (ML) = PATIENT WEIGHT (KG) DIVIDED BY 3

             INFUSION FLOW RATE (ML/HR) = 0.1 X PATIENT WEIGHT (KG)

                      NATRECOR WEIGHT-ADJUSTED BOLUS VOLUME
                             AND INFUSION FLOW RATE

          (2 (MICRO)G/KG BOLUS FOLLOWED BY A 0.01 (MICRO)G/KG/MIN DOSE)
--------------------------------------------------------------------------------
Patient Weight(kg)          Volume of Bolus(mL)           Rate of Infusion(mL/h)
--------------------------------------------------------------------------------
      60                          20.0                            6
--------------------------------------------------------------------------------
      70                          23.3                            7
--------------------------------------------------------------------------------
      80                          26.7                            8
--------------------------------------------------------------------------------
      90                          30.0                            9
--------------------------------------------------------------------------------
     100                          33.3                           10
--------------------------------------------------------------------------------
     110                          36.7                           11
--------------------------------------------------------------------------------

Dose Adjustments: The dose-limiting side effect of Natrecor is hypotension. Do
not initiate Natrecor at a dose that is higher than the recommended dose of a 2
(micro)g/kg bolus followed by an infusion of 0.01 (micro)g/kg/min. In the VMAC
trial there was limited experience with increasing the dose of Natrecor above
the recommended dose (23 patients, all of whom had central hemodynamic
monitoring). In those patients, the infusion dose of Natrecor was increased by
0.005 (micro)g/kg/min (preceded by a bolus of 1 (micro)g/kg), no more frequently
than every 3 hours up to a maximum dose of 0.03 (micro)g/kg/min. Natrecor should
not be titrated at frequent intervals as is done with other IV agents that have
a shorter half-life (see Clinical Trials).

Chemical/Physical Interactions

Natrecor is physically and/or chemically incompatible with injectable
formulations of heparin, insulin, ethacrynate sodium, bumetamide, enalaprilat,
hydralazine, and furosemide. These drugs should not be co-administered as
infusions with Natrecor through the same IV catheter. The preservative sodium
metabisulfite is incompatible with Natrecor. Injectable drugs that contain
sodium metabisulfite should not be administered in

<PAGE>

the same infusion line as Natrecor. The catheter must be flushed between
administration of Natrecor and incompatible drugs. Natrecor binds to heparin and
therefore could bind to the heparin lining of a heparin-coated catheter,
decreasing the amount of Natrecor delivered to the patient for some period of
time. Therefore, Natrecor must not be administered through a central
heparin-coated catheter. Concomitant administration of a heparin infusion
through a separate catheter is acceptable.

Storage

Store Natrecor at controlled room temperature (20 - 25(degree)C; 68 -
77(degree)F); excursions permitted to 15 - 30(degree)C (59 - 86(degree)F; see
USP Controlled Room Temperature), or refrigerated (2 - 8(degree)C; 36 -
46(degree)F). Keep in carton until time of use.

HOW SUPPLIED

Natrecor is provided as a sterile lyophilized powder in 1.5 mg, single-use
vials. Each carton contains one vial and is available in the following package:

1 vial/carton (NDC 65847-205-25)

US patent No. 5,114,923 and 5,674,710.
Distributed by Scios Inc.
820 West Maude Ave
Sunnyvale, CA 94085
Copyright. 2001 Scios Inc.
NA1030.01

                 Revised September 2001

<PAGE>

                                  SCHEDULE 1.33

                                  SCIOS PATENTS

<PAGE>

                                  SCHEDULE 1.33

                                  SCIOS PATENTS

                  [*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

<PAGE>

                                  Schedule 1.36

                                    Territory

<PAGE>

                                  SCHEDULE 1.36

                                    Territory

                 WESTERN, CENTRAL AND EASTERN EUROPEAN COUNTRIES
                 -----------------------------------------------

 ------------------ ----------------- ---------------- ------------------------
      European         European                           Central and Eastern
      Community     Economic Area        Others                 European
 ------------------ ----------------- ---------------- ------------------------
  Austria            Iceland           Andorra          Albania
 ------------------ ----------------- ---------------- ------------------------
  Belgium            Liechtenstein     Cyprus           Armenia
 ------------------ ----------------- ---------------- ------------------------
  Denmark            Norway            Israel           Azerbaijan
 ------------------ ----------------- ---------------- ------------------------
  Finland                              Malta            Belarus
 ------------------ ----------------- ---------------- ------------------------
  France                               Vatican City     Bosnia & Hertzegovina
 ------------------ ----------------- ---------------- ------------------------
  Germany                              Switzerland      Bulgaria
 ------------------ ----------------- ---------------- ------------------------
  Greece                               San Marino       Croatia
 ------------------ ----------------- ---------------- ------------------------
  Ireland                              Monaco           Czech Republic
 ------------------ ----------------- ---------------- ------------------------
  Italy                                                 Estonia
 ------------------ ----------------- ---------------- ------------------------
  Luxembourg                                            Georgia
 ------------------ ----------------- ---------------- ------------------------
  Netherlands                                           Hungary
 ------------------ ----------------- ---------------- ------------------------
  Portugal                                              Kazakstan
 ------------------ ----------------- ---------------- ------------------------
  Spain                                                 Kyrgyzstan
 ------------------ ----------------- ---------------- ------------------------
  Sweden                                                Latvia
 ------------------ ----------------- ---------------- ------------------------
  United Kingdom                                        Lithuania
 ------------------ ----------------- ---------------- ------------------------
                                                        Macedonia
 ------------------ ----------------- ---------------- ------------------------
                                                        Moldova
 ------------------ ----------------- ---------------- ------------------------
                                                        Poland
 ------------------ ----------------- ---------------- ------------------------
                                                        Romania
 ------------------ ----------------- ---------------- ------------------------
                                                        Russia
 ------------------ ----------------- ---------------- ------------------------
                                                        Slovakia
 ------------------ ----------------- ---------------- ------------------------
                                                        Tajikistan
 ------------------ ----------------- ---------------- ------------------------
                                                        Turkmenistan
 ------------------ ----------------- ---------------- ------------------------
                                                        Ukraine
 ------------------ ----------------- ---------------- ------------------------
                                                        Uzbekistan
 ------------------ ----------------- ---------------- ------------------------
                                                        Yugoslavia
 ------------------ ----------------- ---------------- ------------------------

<PAGE>

                                  Schedule 7.4

                         Safety Data Exchange Agreement

<PAGE>

                              SAFETY DATA EXCHANGE

[*****]

[*****] - A CONFIDENTIAL PORTION OF THE MATERIAL HAS BEEN OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSIONPrepared by R.R. Donnelley Financial -- Registration Rights Agreement

  
 
EXHIBIT 4.2 
 REGISTRATION RIGHTS AGREEMENT 
  
 This Registration Rights Agreement (the “Agreement”), dated as of April 30, 2002, is made by and among Cendant Corporation, a Delaware corporation (“Parent”) and certain shareholders
(each a “Seller”) of Trendwest Resorts, Inc., an Oregon corporation (the “Company”), listed on Schedule 1 hereto. 
  
 RECITALS 
  
 WHEREAS, Parent, Tornado Acquisition Corporation, an Oregon corporation
(“Purchaser”), JELD-WEN, inc., an Oregon corporation (“Majority Shareholder”) and the other Sellers beneficially owning approximately ninety percent (90%) of the outstanding shares of all shares of common stock, no
par value, of the Company (“Company Common Stock”) have agreed to sell, pursuant to a Stock Purchase Agreement, dated March 29, 2002, (the “Stock Purchase Agreement”) all shares of Company Common Stock beneficially
owned by such Sellers to Merger Sub and Merger Sub has agreed to purchase such shares (the “Stock Purchase”), subject to the terms and conditions of the Stock Purchase Agreement; 
  

WHEREAS, in consideration for the purchase of shares of Company Common Stock pursuant to the Stock Purchase Agreement, shares of common stock, par value $.01 per share, of Parent
(the “Parent Shares”) have been issued to the Sellers, in the amount for each Seller set forth on Schedule 1 hereto; and 
  
 WHEREAS, pursuant to Section 6(g) of the Stock Purchase Agreement, Parent has agreed to provide Sellers registration rights with respect to the Parent Shares. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 
  
 Section 1.    DEFINITIONS; INTERPRETATION. 

 
 1.1    Definitions.    In addition to the terms defined elsewhere in this Registration Rights
Agreement, capitalized terms used and not defined in this Agreement have the respective meanings ascribed to them in or for purposes of the Stock Purchase Agreement. For purposes of this Agreement: 
  
 “Action” has the meaning set forth in Section 3.3. 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “NYSE” means the New York Stock Exchange. 
  
 “Parent Indemnified Parties” has the meaning set forth in Section 3.2. 
  
 “Parent Offering” means the sale of equity securities of Parent, or securities convertible into or exchangeable or exercisable for equity securities of Parent, pursuant to a registration statement filed by Parent under the
Securities Act (other than a registration statement filed on Form S-8 or any successor form) respecting an underwritten offering, whether primary or secondary, that is declared effective by the Commission. 
  
 “Parent Registration Statement” means a registration statement on Form S-3 to be filed by Parent with the Commission pursuant to Rule
415 under the Securities Act, so as to permit the offer and subsequent resale by each Seller of the Parent Shares held by such Seller from time to time following the effective date of such registration statement. 

  
 “Person” means any individual, corporation, partnership, limited liability
company, joint venture, estate, trust, association, organization, labor union or entity of any kind whatsoever, including any Governmental Authority. 
  
 “Registered Shares” means (i) the Parent Shares and (ii) any shares of capital stock issued with respect to or in exchange for the shares referred to in the preceding clause (i) by way of a stock
dividend or stock split or in connection with a recapitalization or a merger, consolidation or other reorganization. As to any particular Registered Shares, such shares shall cease to be Registered Shares when (i) the Parent Registration Statement
shall have become effective under the Securities Act and such Registered Shares shall have been disposed of in accordance with the Parent Registration Statement, (ii) such shares shall have been distributed pursuant to Rule 144 (as defined below)
under the Securities Act, (iv) such shares shall have been otherwise transferred, new certificates or other evidences of ownership for them not bearing a legend restricting further transfer and not subject to any stop transfer order or other
restrictions on transfer shall have been delivered by Parent or the transfer agent for such shares and subsequent disposition of such shares shall not require registration or qualification under the Securities Act or any state securities laws then
in force, (v) such shares shall have been transferred without the written consent of Parent to the transfer or assignment of the rights and obligations hereunder, (vi) such shares shall be eligible for sale pursuant to Rule 144(k) or (vii) such
shares shall cease to be outstanding. 
  
 “Registration Expenses” means the following expenses incident to
Parent’s performance of its obligations hereunder: (i) registration and filing fees with the Commission; (ii) fees and expenses of compliance with state securities or “blue sky” laws (including reasonable fees and disbursements of
“blue sky” counsel); (iii) printing expenses; (iv) fees and expenses incurred in connection with the listing of the Registered Shares on the NYSE or on such securities exchange or other national market system on which shares of the same
class or series as the Registered Shares may then be principally traded; and (v) fees and expenses of counsel for Parent and of its independent certified public accountants, including the expenses of any special audits or “cold comfort”
letters. The term “Registration Expenses” does not include, and Parent shall not be responsible for: (a) brokerage commissions, underwriting discounts and commissions and transfer taxes attributable to the sale of any of the Registered
Shares; (b) fees and disbursements of underwriters and underwriters counsel (other than fees and expenses of such counsel incurred in connection the “blue sky” qualification of the Registered Shares); (c) fees and disbursements of counsel
or of any experts retained by any Sellers in connection with the registration of the Registered Shares or the disposition of such securities; or (d) any other out-of-pocket expenses of any Sellers. 
  
 “Rule 144” means Rule 144 promulgated under the Securities Act (or any successor rule or rules). 

 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated
thereunder. 
  
 “Parent Indemnified Parties” has the meaning set forth in Section 3.2.

  
 “Seller Indemnified Parties” has the meaning set forth in Section 3.1. 

 
 1.2    Interpretation.    When a reference is made in this Agreement to a Section, such
reference shall be to a Section of this Agreement, unless otherwise clearly indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever
the word “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation.” The use of any gender herein shall be deemed to be or include the other genders and the use of the singular
herein shall be deemed to be or include the plural (and vice versa), wherever appropriate. 
 

 2 

  
 Section 2.    REGISTRATION 
  
 2.1    Registration Procedures. 
  
 Following the execution by the parties of this Agreement, Parent shall (i) prepare and, as soon as practicable thereafter, cause to be filed with the Commission the Parent Registration
Statement, and (ii) use its commercially reasonable efforts to cause the Parent Registration Statement to be declared effective at the earliest practicable date and, subject to the terms of this Agreement, to remain effective until the earlier of
(a) such time as there are no longer any Registered Shares outstanding or (b) the second anniversary of the date of this Agreement. In connection with such registration of the Registered Shares, Parent shall: 
  
 (i)    subject to Section 2.4(b) hereof, prepare and file with the Commission such amendments and supplements to
the Parent Registration Statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective in accordance with the terms of this Agreement and to comply with the provisions of the Securities
Act with respect to the disposition of all Registered Shares covered by such registration statement; 
  
 (ii)    furnish to each Seller and, in the event of an underwritten offering, one underwriter such number of conformed copies of such Parent Registration Statement and of each amendment and supplement thereto (in each
case including all exhibits), such number of copies of the prospectus included in such registration statement, and such other documents as a Seller or such underwriter may reasonably request to facilitate the disposition of the Registered Shares in
accordance with the intended methods of disposition thereof as set forth in such registration statement; 
  
 (iii)    use its commercially reasonable efforts to register or qualify all the Registered Shares under such securities or “blue sky” laws of such jurisdictions as the Sellers shall reasonably request (given
the intended methods of distribution), and do any and all other acts and things which may be reasonably necessary or advisable to enable each Seller to consummate the disposition in such jurisdictions of his or its Registered Shares covered by such
registration statement; provided, however, that in connection therewith Parent shall not be required to register or qualify any Registered Shares under the securities or “blue sky” laws of any jurisdiction where Parent would
be required (x) to qualify to do business as a foreign corporation or as a dealer in such jurisdiction, (y) to conform its capitalization or the composition of its assets at the time to the securities or “blue sky” laws of such
jurisdiction or (z) to take any action that would subject it to service of process in suits other than those arising out of the offer and sale of the Registered Shares covered by such registration statement or subject itself to taxation in such
jurisdiction; 
  
 (iv)    immediately notify each Seller, at any time when the prospectus
included in such Parent Registration Statement is required to be delivered pursuant to the Securities Act in connection with a sale of Registered Securities, of the happening of any event which comes to the attention of Parent and as a result of
which such prospectus, as then in effect, would contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, and, subject to Section 2.4(d), Parent will promptly prepare and furnish to each Seller a supplement to or an amendment of such prospectus so that, as thereafter delivered to the purchasers of such Registered Shares,
such prospectus will not contain an untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading; 
  
 (v)    immediately notify each Seller of the issuance or, to the knowledge of
Parent, threatened issuance of any stop order by the Commission suspending the effectiveness of the Parent Registration Statement or of the receipt by Parent of any notification with respect to the suspension or threatened suspension of the
qualification of any Registered Shares for sale under the securities or blue sky laws of any jurisdiction, and Parent use all commercially reasonable efforts necessary (i) to prevent the entry of any threatened stop order or any threatened
suspension or (ii) to remove any stop order or lift any suspension once entered; 
 

 3 

  
 (vi)    otherwise use its commercially reasonable efforts
to comply with all applicable rules and regulations of the Commission, and make available to its securities holders as promptly as practicable an earnings statement covering a period of twelve months beginning after the effective date of such
registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder; 
  
 (vii)    in the event of an underwritten offering, enter into an underwriting agreement with an underwriter selected by Majority Shareholder
containing representations, warranties, indemnities and agreements customarily included (but not inconsistent with the agreements contained herein) by an issuer of common stock in underwriting agreements with respect to offerings of common stock for
the account of, or on behalf of, holders of common stock; provided, however, that the Sellers shall not utilize the Parent Registration Statement for more than one underwritten offering during the term of this Agreement. In connection
with the sale of Parent Shares hereunder, each Seller may, at such Seller’s option, require that any and all representations and warranties by, and the other agreements of, Parent to or for the benefit of such underwriter or underwriters (or
which would be made to or for the benefit of such an underwriter or underwriter if such sale of Parent Shares were pursuant to a customary underwritten offering) be made to and for the benefit of such Seller and that any or all of the conditions
precedent to the obligations of such underwriter (or which would be so for the benefit of such underwriter under a customary underwriting agreement) be conditions precedent to the obligations of such Seller in connection with the disposition of such
Seller’s securities pursuant to the terms hereof. In connection with any offering of Parent Shares registered pursuant to this Agreement, Parent shall, upon receipt of duly endorsed certificates representing the Parent Shares, (x) furnish to
the underwriter, if any (or, if no underwriter, each Seller), un-legended certificates representing ownership of Parent Shares being sold, in such denominations as requested, and (y) instruct any transfer agent and registrar of the Parent Shares to
release any stop transfer order with respect thereto; and 
  
 (viii)    use its commercially
reasonable efforts to cause the Registered Shares to be listed on the NYSE or on such other securities exchange or national market system on which securities of Parent of the same class or series as the Registered Shares are then principally traded.

  
 2.2    Registration Expenses.    Parent will pay all Registration Expenses in
connection with the registration of Registered Shares pursuant to Section 2.1. Sellers will pay, and hold Parent harmless from, all other costs and expenses incurred by or on behalf of any Seller or any Seller in connection with an offer and sale or
other disposition of Registered Shares pursuant to this Agreement. 
  
 2.3    Preparation; Reasonable
Investigation.    In connection with the preparation and filing of the Parent Registration Statement, Parent shall provide to one counsel selected by the Sellers and, in the case of an underwritten offering, if any, one
counsel for the for the underwriter, if any, drafts of each prospectus included therein or filed with the Commission (other than any documents incorporated by reference in any prospectus), and each amendment thereof or supplement thereto. Such
review shall be conducted and such comments shall be delivered by Sellers with reasonable promptness. In connection with a sale of Parent Shares by or through an underwriter, Parent shall make available for inspection by Sellers, any underwriter
participating in any disposition pursuant to the Parent Registration Statement, and one counsel and one nationally recognized independent accounting firm retained by Sellers or underwriter, all reasonably requested financial and other records,
pertinent corporate documents and properties of Parent, and cause Parent’s officers, directors, employees, attorneys and independent accountants to supply all information reasonably requested by Sellers, the underwriter, such counsel and
accounting firm in connection with the Parent Registration Statement; provided, however, that information which Parent determines, in good faith, to be confidential shall not be disclosed by such persons unless (i) the disclosure of such information
is required by applicable federal securities laws or is necessary to avoid or correct a misstatement or omission in such Parent Registration Statement or (ii) the release of such information is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction. Each Seller agrees, on such Seller’s own behalf and on behalf of all of the Sellers’ underwriters, accountants, attorneys and agents, that the information obtained by any of them as a result of such
inspections shall be deemed
 
 

 4 

 
confidential unless and until such is made generally available to the public. Each Seller further agrees, on such Seller’s own behalf and on behalf of all of the Sellers’ underwriters,
accountants, attorneys and agents, that Seller will, upon learning that disclosure of such information is sought in a court of competent jurisdiction, give notice to Parent and allow Parent, at Seller’s expense, to undertake appropriate action
to prevent disclosure of the information deemed confidential. Nothing contained herein shall require Parent to waive any attorney-client privilege or disclose attorney work product. 
  
 2.4    Certain Covenants.    Each Seller shall furnish to Parent such information regarding such Seller, its intended method of
distribution of Registered Shares and such other information as Parent may from time to time reasonably request for purposes of preparation of the Parent Registration Statement and to maintain the effectiveness of such registration statement.

  
 (a)    At least two business day prior to any disposition of Registered Shares by each Seller, such Seller
will orally advise Parent of the dates on which such disposition is expected to commence and terminate, the number of Registered Shares expected to be sold, the method of disposition and such other information as Parent may reasonably request in
order to supplement the prospectus contained in the registration statement in accordance with the rules and regulations of the Commission. Promptly after receiving such advice, Parent will, if necessary, (i) prepare a supplement to the prospectus
based upon such advice and file the same with the Commission pursuant to Rule 424(b) under the Securities Act and (ii), if necessary, qualify the Registered Shares to be sold under the securities or blue sky laws of such jurisdictions in the United
States as such Seller shall reasonably request (subject to the proviso of Section 2.1(iii)). 
  
 (b)    Parent
may postpone the filing or the effectiveness of the Parent Registration Statement or suspend the use of the Parent Registration Statement not to exceed 120 days in any 12-month period, (i) if Parent determines that the filing or continued use of the
Parent Registration Statement would require Parent to disclose a material financing, acquisition or other corporate development of Parent or any of its affiliates and Parent shall have determined that such disclosure is not in the best interest of
Parent (ii) if Parent determines that such action is required by applicable Law or (iii) upon the occurrence of any event contemplated by Section 2.1(iv) hereof. Parent shall promptly notify each Seller at such time as such financing, acquisition or
other corporate development has been otherwise publicly disclosed or terminated or counsel to Parent has determined that such disclosure is not required due to subsequent events. 
  
 (c)    Each Seller agrees that, upon receipt of any notice from Parent of the happening of any event of the kind described in Section 2.1(iv), such Seller will
forthwith discontinue disposition of the Registered Shares pursuant to such registration statement until receipt of copies of the supplemented or amended prospectus contemplated by Section 2.1(iv), and, if so directed by Parent, will deliver to
Parent all copies of the prospectus covering the Registered Shares in its possession at the time of receipt of such notice. 
  
 (d)    Each Seller shall, at any time it is engaged in a distribution of Registered Shares, comply with all applicable laws, including Regulation M promulgated under the Exchange Act (“Regulation M”) and
(i) will not engage in any stabilization activity in connection with the securities of Parent in contravention of such rules, (ii) will distribute the Registered Shares solely in the manner described in the Parent Registration Statement (iii) will
not bid for or purchase any securities of Parent or attempt to induce any person to purchase any securities of Parent other than as permitted under the Exchange Act and (iv) will instruct any “affiliated purchaser” of such Seller (as such
term is defined in Regulation M), including without limitation, in the event of an underwritten offering, the underwriter to comply with the above provisions. 
  
 (e)    Each Seller shall provide such information and materials, execute all such documents and take all such other actions as Parent shall reasonably request in order to permit Parent to comply
with all applicable requirements of law and to effect the registration of the Registered Shares. 
 

 5 

  
 Section 3.    INDEMNIFICATION. 
  
 3.1    Indemnification by Parent.    Parent will indemnify and hold harmless each Seller, such
Seller’s directors, officers and partners and each other Person, if any, who controls such Seller within the meaning of the Securities Act or the Exchange Act (“Seller Indemnified Parties”), against any and all losses, claims,
damages or liabilities, joint or several, and expenses to which the Parent Indemnified Parties, or any of them, may become subject, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) or expenses
arise out of or are based upon (x) any untrue statement or alleged untrue statement of any material fact contained in the Parent Registration Statement, any preliminary, final or summary prospectus included therein, or any amendment or supplement
thereto, or (y) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and Parent will reimburse such Parent Indemnified Parties for any legal or
any other expenses reasonably incurred by them in connection with investigating or defending such loss, claim, liability, action or proceeding; provided, that Parent shall not be liable to any Seller, such Seller’s directors, officers or
partners or any Person, if any, who controls such Seller within the meaning of the Securities Act or the Exchange Act to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or
is based upon (i) any actual or alleged untrue statement in or any actual or alleged omission from, the Parent Registration Statement or amendment or supplement thereto or any preliminary, final or summary prospectus, in reliance upon and in
conformity with written information furnished by or on behalf of such Seller to Parent specifically for use in the preparation thereof, (ii) any actual or alleged untrue statement of a material fact or any actual or alleged omission of a material
fact required to be stated in any preliminary prospectus if such Seller sells Registered Shares to a Person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the final prospectus or of the final
prospectus as then amended or supplemented, whichever is most recent, if Parent had previously furnished copies thereof to such Seller or its representatives and such final prospectus, as then amended or supplemented, corrected any such misstatement
or omission or (iii) the use of any preliminary, final or summary prospectus by or on behalf of such Seller after Parent has notified such Seller, in accordance with Section 2.1(iv), that such prospectus contains an untrue statement of a material
fact or omits to state a material fact required to be stated therein, in the light of the circumstances under which they were made, not misleading. 
  
 3.2    Indemnification by Sellers.    Each Seller will indemnify and hold harmless Parent, each of its directors and officers, and each Person, if any, who controls
Parent within the meaning of the Securities Act or the Exchange Act (the “Parent Indemnified Parties”), against any and all losses, claims, damages or liabilities and expenses to which the Parent Indemnified Parties may become
subject, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in the
Parent Registration Statement, any preliminary, final or summary prospectus included therein, or amendment or supplement thereto, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, if the statement or omission was made in reliance upon and in conformity with written information furnished to Parent by or on behalf of such Sellers specifically for use in the preparation thereof or (ii) the
use of any prospectus by or on behalf of such Sellers after Parent has notified such Sellers that such prospectus contains an untrue statement of a material fact or omits to state a material fact required to be stated therein, in light of the
circumstances under which they were made, not misleading. Notwithstanding the foregoing, no Seller shall be liable under this Section 3.2 for any amounts exceeding the gross proceeds received by such Seller in connection with the sale of such
Seller’s Registered Shares. 
  
 3.3    Indemnification Procedures.    Any
Person that proposes to assert the right to be indemnified under this Section 3 shall, promptly after receipt of notice of any action, suit, inquiry, judicial, administrative or other proceeding or arbitration or investigation by or before any
Governmental Authority (collectively, an “Action”) against such Person in respect of which a claim is to be made against an indemnifying party under this Section 3, notify such indemnifying party of the commencement of such Action,
enclosing a copy of all papers served, but the omission so to notify such indemnifying party of any such Action shall not relieve it from any liability that it may have to any indemnified party otherwise than under this Section 3, except to the
extent that
 
 

 6 

 
such indemnifying party is prejudiced by such failure to give notice. In case any such Action shall be brought and notice given to the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate in and to assume the defense thereof, with counsel satisfactory to the indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party shall not be liable to such indemnified party for any further legal or other expenses incurred by such indemnified party, except as provided below and except for the reasonable costs of investigation
subsequently incurred by such indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ separate counsel and to participate in (but not control) any such Action, but the fees and expenses of such
counsel shall be the expense of such indemnified party unless (i) the employment of counsel by such indemnified party has been authorized by the indemnifying party, (ii) the indemnified party shall have been advised by its counsel in writing that
there are legal defenses available to it that are different from or in addition to those available to the indemnifying parties, (iii) the indemnified party shall have been advised by its counsel in writing that there is a conflict of interest
between the indemnifying party and the indemnified party in the conduct of the defense of such Action (in which case the indemnifying party shall not have the right to direct the defense of such Action on behalf of the indemnified party) or (iv) the
indemnifying party shall not in fact have employed counsel to assume the defense of such Action, in each of which cases the fees and expenses of such counsel shall be at the expense of the indemnifying party. An indemnifying party shall not be
liable for any settlement of an Action effected without its written consent (which consent shall not be unreasonably withheld). No indemnifying party will consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such Action. An indemnifying party who is not entitled to, or elects not to, assume the defense of an Action
will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such Action. 
  
 3.4    Contribution.    If recovery is not available under the foregoing indemnification provisions, for any reason other than as specified therein, the parties entitled
to indemnification by the terms thereof shall be entitled to contribution for any and all losses, claims, damages or liabilities, joint or several, and expenses to which they may become subject, in such proportion as is appropriate to reflect the
relative fault of the parties entitled to indemnification, on the one hand, and the indemnifying parties, on the other, in connection with the matter out of which such losses, claims, damages, liabilities or expenses arise or result from. In
determining the amount of contribution to which the respective parties are entitled, there shall be considered the parties’ relative knowledge and access to information concerning the matter with respect to which the Action was asserted, the
opportunity to correct and prevent any statement or omission, and any other equitable considerations appropriate under the circumstances. Parent and each Seller agrees that it would not be equitable if the amount of such contribution were determined
by pro rata or per capita allocation. 
  
 Section 4.    RULE 144. 
  
 4.1    Subject to Section 2.4, Parent hereby covenants to use its commercially reasonable efforts to file in a timely manner all
reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder (or, if at any time Parent is not required to file such reports, it will, upon the request of Seller,
make publicly available other information so long as necessary to permit sales under Rule 144 under the Securities Act), and it will take such further action as any Seller may reasonably request, all to the extent required from time to time to
enable Parent to meet the requirements for issuers entitled to register securities on Form S-3 or any successor form. 
  
 Section
5.    MISCELLANEOUS 
  
 5.1    Effectiveness of
Agreement.    The provisions of this Agreement shall be effective as of the date hereof. 
  
 5.2    Notices.    All notices, requests, demands, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been
duly given if
 
 

 7 

 
delivered personally, by mail (certified or registered mail, return receipt requested), by reputable overnight courier or by facsimile transmission (receipt of which is confirmed): 

 
 (a)    If to Purchaser or to Parent, to: 
  
 Cendant Corporation 
 9 West 57th Street, 37th Floor 

New York, NY 10019 
 Attention: General Counsel 

Fax: 212-413-1923 
  
 with
a copy to: 
  
 Skadden, Arps, Slate, Meagher & Flom 
 Four Times Square 
 New York, NY 10036 
 Attention: David Fox, Esq. 
 Fax: 212-735-2000; 

 
 (b)    If to Seller, to the address set forth for such Seller in Schedule 1, or to such other person or address as any
party shall specify by notice in writing, given in accordance with this Section 5.2, to the other parties hereto. All such notices, requests, demands, waivers and communications shall be deemed to have been given on the date on which so
hand-delivered, on the third business day following the date on which so mailed, on the next business day following the date on which delivered to such overnight courier and on the date of such facsimile transmission and confirmation, except for a
notice of change of person or address, which shall be effective only upon receipt thereof. 
  
 5.3    Entire
Agreement.    This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, both oral and written, with respect to the
subject matter hereof. 
  
 5.4    Binding Effect; Assignment.    This Agreement and
all of the provisions hereof shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns, but, except as expressly contemplated herein, neither this Agreement nor any of the
rights, interests or obligations hereunder shall be assigned, directly or indirectly, by Parent, on the one hand, or any Seller, on the other hand, without the prior written consent of the other; provided however, Majority Shareholder
may, without the consent of Parent, assign its rights and obligations under this Agreement to any Permitted Transferee (as such term is defined in the Stock Purchase Agreement) (the “Permitted Assignees”) in connection with the
transfer of Registered Shares to Permitted Assignees; provided, however, that (a) Majority Shareholder may assign such rights and obligations only to the extent of the number of Registered Shares transferred to such Permitted
Assignees, (b) such Permitted Assignees may not further assign such rights and obligations in any way and (c) such Permitted Assignees specifically agree to be bound by the provisions hereof, a copy of of which shall have been provided to Parent
prior to such transfer. Upon any such assignment, this Agreement shall be amended to substitute the assignee as a party hereto in a writing reasonably acceptable to the other party. 
  
 5.5    Amendment, Modification and Waiver.    Subject to applicable Law and as otherwise provided in the Agreement, this Agreement may be
amended, modified and supplemented in any and all respects by written agreement of the parties hereto. This Agreement may not be amended except by an instrument in writing signed on behalf of Parent and the holder(s) of a majority of the Registered
Shares; provided, however, that any amendment that would adversely affect the rights of an individual Seller in a manner different than it affects the
 
 

 8 

 
rights of other Sellers shall require the consent of such affected Seller. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof; nor shall any waiver on the part of any party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other such right,
power or privilege. 
  
 5.6    Third-Party Beneficiaries.    This Agreement is not
intended to confer upon any Person other than the parties hereto and any rights hereunder. 
  
 5.7    Counterparts.    This Agreement may be executed manually or by facsimile by the parties hereto, or xerographically or electronically by their respective attorneys, in any number of
counterparts, each of which shall be considered one and the same agreement and shall become effective when a counterpart hereof shall have been signed by each of the parties and delivered to the other parties. 
  
 5.8    Governing Law.    This Agreement shall be governed by the laws of the State of Delaware, without
regard to the principles of conflicts of law thereof. 
  
 5.9    Termination.    Subject to the provisions of Section 2.1 hereof, this Agreement shall terminate on the third anniversary of the date hereof; provided, however, that the provisions of
Section 3 hereof shall survive termination of this Agreement. 
  
 5.10    Jurisdiction and
Venue.    Each party hereto hereby irrevocably submits to the exclusive jurisdiction of any Delaware state court or federal court sitting in the State of Delaware in any action arising out of or relating to this Agreement,
and hereby irrevocably agrees that all claims in respect of such action may be heard and determined in such Delaware state or federal court. Each party hereto hereby irrevocably consents to personal jurisdiction in any such action brought in any
such Delaware state or federal court, consents to service of process by registered mail made upon such party and such party’s agent and waives any objection to venue in any such Delaware state or federal court and any claim that any such
Delaware state or federal court is an inconvenient forum. Each party hereby waives, to the fullest extent permitted by applicable Law, any right it may have to a trial by jury in respect of any action, suit or proceeding arising out of or relating
to this Agreement or the Transactions. Each party hereby certifies that it has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications set forth above in this Section 5.10. 
 

 9 

  
 IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly signed as of
the date first above written. 
 
	 CENDANT CORPORATION
 
	 
	 By:    /s/    ERIC J. BOCK
 

	 Name:    Eric J. Bock
 
	 Title:    Executive Vice President
 
	 
	 SELLERS
 
	 
	 JELD-WEN, inc.
 
	 
	 By:    /s/    TIMOTHY O’NEIL
 

	 Name:    Timothy O’Neil
 
	 Title:    Chief Financial Officer
 
	 
	     /s/    RICHARD L. WENDT
 

	 Name:    Richard L. Wendt
 
	 
	     /s/    WILLIAM F. PEARE 
 

	 Name:    William F. Peare
 
	 
	     /s/    JEFFERY P. SITES
 

	 Name:    Jeffery P. Sites
 
	 
	     /s/    GENE HENSLEY
 

	 Name:    Gene Hensley
 
	 
	     /s/    AL SCHRIBER
 

	 Name:    Al Schriber
 
	 
	     /s/    TIM O’NEIL
 

	 Name:    Tim O’Neil
 
	 
	     /s/    JEROL ANDRES
 

	 Name:    Jerol Andres
 

 
 
	 
	     /s/    DOUGLAS P. KINTZINGER
 

	 Name:    Douglas P. Kintzinger
 
	 
	     /s/    RODERICK C. WENDT
 

	 Name:    Roderick C. Wendt
 
	 
	     /s/    GARY FLORENCE
 

	 Name:    Gary Florence
 
	 
	     /s/    THEODORE SCHNORMEIER
 

	 Name:    Theodore Schnormeier
 
	 
	     /s/    LARRY V. WETTER
 

	 Name:    Larry V. Wetter
 
	 
	     /s/    WILLIAM B. EARLY
 

	 Name:    William B. Early
 
	 
	     /s/    JEWEL KINTZINGER
 

	 Name:    Jewel Kintzinger
 

 
 

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]