Document:

exv10w1

 

Exhibit 10.1

Larry A. Frakes

President and Chief Executive Officer

United America Indemnity, Ltd.

Amended and Restated Employment Agreement

RECITALS

On May 10, 2007 (the “Effective Date”), Larry A. Frakes (“Executive”) and United America
Indemnity, Ltd. (the “Company”) entered into an agreement regarding Executive’s employment by the
Company in the capacity of President and Chief Operating Officer (the “Prior Agreement”).

On June 28, 2007, Executive was promoted to President and Chief Executive Officer of the Company.

The Company and Executive wish to amend the Prior Agreement in order to, among other things,
provide for the cancellation and regrant of certain stock options previously granted to
Executive, and therefore, Executive and the Company intend that the Prior Agreement be amended
and restated in its entirety and superseded in all respects by this Amended and Restated
Employment Agreement dated as of February 5, 2008 (the “Agreement”), provided that the Agreement
is (i) manually executed by Executive and Saul Fox, in his capacity as chairman of the Board of
Directors (the “Board”) of the Company (the “Chairman”), and (ii) confirmed by the affirmative
vote of a majority of the Board or a Committee acting on behalf of the Board.

AGREEMENT

	 	 	 
	Positions & Titles:

	 	Executive shall serve as President and Chief
Executive Officer of the Company as well as
chief executive officer of any Company
Affiliates (as defined below) as may be
determined and specified by the Chairman in
writing from time to time. Executive shall
also serve on the Board as a director of the
Company (a “Director”). As of the Effective
Date, Executive resigned from his positions
on the 162(m) Committee and Audit Committee
of the Board.
	 
	 	 
	Responsibilities:

	 	Executive shall have such responsibilities
and duties as are customary for a President
and Chief Executive Officer of a company
conducting business comparable to the Company
(except as may be otherwise provided by the
Board or Chairman from time to time).
Executive shall devote his full business time
and efforts to his service as President and
Chief Executive Officer and as a Director and
shall not engage in any other non-Company or
non-Company

 

 

	 	 	 
	 

	 	Affiliate business activities without the written approval of the Board.
Notwithstanding the foregoing, Executive shall be permitted to manage his and
his family’s personal investments and affairs, engage in charitable activities
and community affairs, and act as a member, director, or officer of industry
trade associations or groups, provided that such activities do not interfere
with his duties hereunder.
	 
	 	 
	Reporting:

	 	During the Term (as defined below),
Executive shall report to the Chairman
regarding the affairs of the Company and
Company Affiliates and as requested report
to the Board from time to time about the
affairs of the Company. All other
executives and other employees of the
Company (other than employees designated by
the Chairman) shall report to Executive (or
his designees as approved by the Board);
provided that the Chairman or the Executive
may establish dotted line or dual reporting
responsibilities as he deems necessary for
the conduct of the business of the Company
and/or any Company Affiliate.
	 
	 	 
	Location:

	 	Executive shall be provided by the Company
with an office at the headquarters of the
Company’s Affiliate in Bala Cynwyd,
Pennsylvania.
	 
	 	 
	Term:

	 	The initial term of Executive’s employment
under this Agreement shall be from the
Effective Date through December 31, 2011.
Such term will automatically be extended for
additional one-year periods on a
year-to-year basis unless Executive or the
Company notifies in writing the other to the
contrary not less than three months and not
more than five months prior to the
expiration of the initial term of this
Agreement and of any renewal term (the
initial term and any renewal term,
collectively, the “Term”).
	 
	 	 
	Annual Compensation:

	 	$2,100,000+. Commencing on the Effective
Date, Executive will accrue base salary and
be eligible for an annual bonus as provided
below in consideration of his services to
the Company and its Affiliates.
	 
	 	 
	Base Salary:

	 	The Company agrees to pay Executive an annual base
salary of $600,000 (“Base Salary” or $50,000 per month (“Monthly Base
Salary”)), commencing as of the Effective Date, in accordance with the
Company’s normal payroll practices for executives. Following a termination by
the Company of Executive’s without Cause (as defined below) or a resignation by
Executive’s employment with the Company for Good Reason (as defined below),
Executive

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	 	will receive severance payments equal to the Monthly Base
Salary Multiplied by Months Served (as hereafter defined),
less any amounts paid during the relevant notice period and
any taxes and withholdings, subject to the conditions
described in the “Termination” Section below. For purposes
of the foregoing sentence, “Months Served” shall equal the
sum of the full calendar months (capped at 18) of the Term
that elapsed prior to a notice of termination without Cause
or the event giving rise to the resignation with Good Reason,
as the case may be.
	 
	 	 
	Annual Bonus:

	 	In respect of the remainder of 2007, Executive shall be eligible to
receive a pro rata bonus based on his achievement of milestones for 2007 that
have been agreed to between the Executive and the Chairman and approved by the
Board. The pro-ration shall be based on an annual bonus opportunity for 2007
of $1,500,000, pro rated based on time served in 2007, with the first 1/3 of
any earned and declared pro rata bonus to be satisfied through the issuance of
restricted shares of the Company’s Class A common stock subject to the
conditions of “Annual Bonus-Section C” below (but without applying any
additional “Operational Goals & Milestones”) (the “2007 Restricted Shares”),
and the remaining portion (2/3) of any earned and declared pro rata bonus shall
be paid in cash on or before March 15, 2008 if Executive is employed in good
standing as of such date.
	 
	 	 
	 

	 	In respect of each full calendar year (commencing in respect
of 2008) during the Term (a “Bonus Year”), the Company shall
provide Executive with a bonus opportunity of $1,500,000+
(“Annual Bonus”), subject to the following and determined,
awarded and paid as follows:
	 
	 	 
	 

	 	A. Plan &
Performance Score:

	 
	 	 
	 

	 	a.  Plan: Prior to the commencement of each
Bonus Year, Executive shall prepare and submit
to the Board for its approval a comprehensive
business plan for the Company and its Affiliates
projecting the business performance (including
among other matters, consolidated net income per
share) of the Company and its Affiliates in
respect of the forthcoming Bonus Year (including
any changes made in the good faith judgment of
the Board at the time of its

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	 	approval, the “Plan”). The Plan shall be
prepared and presented both (1) in accordance
with Generally Accepted Accounting Principles
(“GAAP”) and (2) on an accident year basis.

	 
	 	 
	 

	 	b.  Performance Score: Within 75 days after
completion of each Bonus Year, a performance
score (“Performance Score”) for such Bonus Year
shall be determined by the Board in accordance
with the following steps: (1) dividing (i) the
actual consolidated net income per share
of the Company (adjusted to account for all
items of gain, loss or expenses determined by
the Board in its sole discretion to be
unanticipated and/or extraordinary), determined
on an Accident Year Basis and as verified by the
Company’s independent auditors for such Bonus
Year by (ii) the projected consolidated net
income per share of the Company (determined on
an Accident Year Basis) as set forth in the Plan
for such Bonus Year (and as approved by the
Board prior to the commencement of such Bonus
Year in accordance with paragraph a.
(immediately preceding)), (2) multiplying the
quotient determined in accordance with Step (1)
(immediately preceding) by 100, and (3) rounding
the result obtained in Step (2) (immediately
preceding) to the nearest tenth.

	 
	 	 
	 

	 	B. Bonus
Computation: The Annual Bonus shall equal:

	 
	 	 
	 

	 	a.  $50,000 multiplied by the excess of the
Performance Score over 90, plus

	 
	 	 
	 

	 	b.  $200,000 multiplied by the excess of the
Performance Score (capped at 100 for this
purpose) over 95, plus

	 
	 	 
	 

	 	c.  A
cash payment equal to Executive’s net federal
and state tax liability directly resulting from
the vesting of the 2007 Restricted Shares or the
restricted shares comprising the restricted
shares portion of the Annual Bonus (to the
extent provided for in Section C below), if
Executive is employed by the Company and in good
standing

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	 	at the time of such vesting, with such payment to
be made on or within 90 days after the applicable
vesting date (even if such date is prior to
Executive’s actual payment of such tax
liability).

	 
	 	 
	 

	 	Example: If the Performance Score in respect
of the 2008 Original Bonus Year equaled 100,
the Annual Bonus in respect of 2008 would be
equal to $1,500,000 [($50,000 x (100-90)) +
($200,000 x (100-95))= $1,500,000].

	 
	 	 
	 

	 	Example: If the Performance Score in respect
of the 2008 Original Bonus Year equaled 110,
the Annual Bonus in respect of 2008 would be
equal to $2,000,000 [($50,000 x (110-90)) +
($200,000 x (100-95))=$2,000,000].

	 
	 	 
	 

	 	C. First $500,000
of each Annual Bonus:

	 
	 	 
	 

	 	a.   Restricted Shares. Subject to the
immediately succeeding paragraph b., the first
$500,000 of each Annual Bonus (determined in
accordance with the immediately preceding
Section B but not including the tax liability
payments made pursuant to paragraph c. of such
Section) shall be satisfied by the issuance to
Executive of restricted Class A common shares of
the Company as of March 15 of the year following
the Bonus Year, subject to Executive being
employed by the Company in good standing as of
such date (or if such date is not a business
day, the immediately preceding business day)
(valued for this purpose at the closing price of
the Company’s Class A common shares on the last
trading day of the relevant Bonus Year as
reported in the Wall Street Journal).
Twenty-five percent (25%) of the Company shares
that may be issued to Executive pursuant to this
paragraph with respect to the 2008 Bonus Year,
2009 Bonus Year and the 2010 Bonus Year during
the Term shall vest and become transferable on
each of the first four anniversaries of the
issuance thereof. One-third of the Company
shares that may be issued to Executive pursuant
to this paragraph with respect to the 2011 Bonus
Year and subsequent Bonus Years during the Term
shall vest and

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	 	become transferable on each of the first three
anniversaries of the issuance thereof.
Notwithstanding the foregoing sentence, vesting
of any such restricted shares issued to Executive
pursuant to this Section C shall cease in the
event and at such time as (1) Executive resigns
from the Company without Good Reason, (2)
Executive is terminated by the Company for Cause,
(3) the Term expires, if at the time of such
expiration (x) Executive declined the Company’s
proposal to extend the duration of this Agreement
on terms at least substantially equivalent to the
terms hereof, or (y) the Company had Cause (as
defined below) to terminate Executive, or (4)
Executive does not comply with the
Non-Competition, Non-Solicitation, Confidential
Information and Cooperation “Covenants” set forth
in Schedule I hereto along with his obligations,
if applicable, under any release which he is
required to provide in favor of the Company and
those under any separation agreement to which he
is party with the Company and/or its Affiliates
(collectively, the “Post-Termination
Obligations”). (The terms of the Restricted
Shares shall be otherwise subject to the
Company’s form of “Restricted Share Agreement”
attached as Exhibit C hereto)

	 
	 	 
	 

	 	b.  Operational Goals & Milestones. Prior
to the commencement of the 2008 Bonus Year and
each Bonus Year thereafter, it shall be
Executive’s responsibility to propose in
writing, based upon Executive’s discussions with
the Chairman, Company milestones and operational
goals for the forthcoming Bonus Year that must
be achieved for Executive to become entitled to
the restricted shares award provided in this
Section C. The absence of such a proposal as of
the commencement of a Bonus Year will result in
no achievement of such milestones and goals.
The Chairman shall review and revise such
milestones and goals in his discretion and refer
them to the Board in writing for its approval,
in its discretion. In addition to the other
requirements of paragraphs a., b., and c. of
this

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	 	Section C, the Board shall make a good faith
determination, which shall be conclusive, as to
whether the milestones and operational goals as
earlier approved by the Board have been satisfied
thereby entitling Executive to the amount of
restricted shares determined in accordance with
paragraphs a. and b. of this Section C.

	 
	 	 
	 

	 	D.  Annual Bonus Cash
Portion: To the extent an Annual Bonus amount exceeds
$500,000 (but not including the tax liability payments
made pursuant to paragraph c. of Section B above):

	 
	 	 
	 

	 	a.  Fifty percent (50%) of such excess shall be paid
in cash to Executive (the “Paid Cash Bonus”)
within thirty days of the Board’s determination
with respect to such bonus as provided for in
Sections A and B above; and

	 
	 	 
	 

	 	b.  Fifty percent (50%) of such excess shall be
retained by the Company (the “Retained Cash
Bonus”) to satisfy the true-up adjustments
provided in Section E (immediately succeeding).

	 
	 	 
	 

	 	E.  Accident Year True-Up Provisions:

	 
	 	 
	 

	 	a.  The Performance Score and the amount of the
Annual Bonus Cash Portion in respect to a Bonus
Year (for purposes of this Section “Annual
Bonus” and the Section “Additional Equity
Participation” below, “Target Year”) shall be
redetermined or trued-up on an Accident Year
Basis within 15 days following the completion of
the Company’s audited financial statements in
respect of the third full calendar year
succeeding such Target Year, with such
redetermination or true-up assuming the capital
structure of the Company as of the last day of
the applicable Target Year (for purposes of
computing consolidated net income, consolidated
net income per share, and other capital
structure dependent items that would affect
computation of the true-up contemplated by this
Section E). (The Performance Score and

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	 	Annual Bonus Cash Portion as so redetermined are
referred to below as the “Trued-Up Performance
Score” and the “Trued-Up Annual Bonus Cash
Portion,” respectively.) Computation of the
Trued-Up Performance Score and the Trued-Up
Annual Bonus Cash Portion shall be verified by
Company’s independent auditors and confirmed by
the Board. All redeterminations hereunder shall
(i) be made without regard to the tax liability
payments made pursuant to paragraph c. of Section
B above and (ii) not increase or reduce the
number of restricted shares previously awarded to
Executive pursuant to Section C of this “Annual
Bonus” Section.

	 
	 	 
	 

	 	b.  Subject to paragraph c. (immediately
succeeding), if the Trued-Up Annual Bonus Cash
Portion in respect to a Target Year equals or
exceeds the amount of the Annual Bonus Cash
Portion originally determined in respect of such
Target Year, then the following amounts shall be
paid to Executive (whether or not Executive is
then employed by the Company, unless pursuant to
paragraph c. (immediately succeeding) Executive
is no longer then entitled to payments under
this paragraph b.) within thirty days of the
redetermination:

	 
	 	 
	 

	 	1.  The excess of the Trued-Up Annual Bonus
Cash Portion in respect of the Target
Year over the Annual Bonus Cash Portion
originally determined in respect of the
Target Year; plus

	 
	 	 
	 

	 	2.  The Retained Cash Bonus in respect to
the Target Year; plus

	 
	 	 
	 

	 	3.  A deemed investment return on the
amounts to be paid to Executive pursuant
to paragraphs 1 & 2 (immediately
preceding), which shall be calculated by
utilizing the investment return realized
by the Company and the Company Affiliates
on their investable assets (including
cash) over the period

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	 	said amounts to be paid to Executive had
been retained by the Company.

	 
	 	 
	 

	 	c.  Executive shall not be entitled to receive any
payments pursuant to paragraph b. (immediately
preceding) from and after the first to occur of
the following: (1) Executive resigns from the
Company without Good Reason; (2) Executive is
terminated by the Company for Cause; (3) the
expiration of the Term, if at the time of such
expiration (x) Executive declined the Company’s
proposal to extend the duration of this
Agreement on terms at least substantially
equivalent to the terms hereof, or (y) the
Company had Cause to terminate Executive; or (4)
Executive does not comply with the
Post-Termination Obligations.

	 
	 	 
	 

	 	d.  If the amount of the Annual Bonus Cash Portion
originally determined in respect of a Target
Year exceeds the amount of the Trued-Up Annual
Bonus Cash Portion in respect of such Target
Year, then the amount of such excess shall be
offset against and reduce dollar-for-dollar
(whether or not Executive is then employed by
the Company) the aggregate amount of Retained
Cash Bonuses then or thereafter held by the
Company. The remaining Retained Cash Bonus with
respect to the Target Year, if any, shall then
be paid to Executive within thirty days of the
foregoing redetermination, along with a deemed
investment return thereon, which shall be
calculated by utilizing the investment return
realized by the Company and the Company
Affiliates on their investable assets (including
cash) over the period such remaining Retained
Cash Bonus had been retained by the Company.

	 
	 	 
	 

	 	Attached as Schedule II is an example of application
of the Bonus provisions of this Agreement.

	 
	 	 
	 

	 	F.  Additional
Matters: All bonus payments hereunder are intended to
comply with Sections 162(m) and 409A of the Internal
Revenue Code of 1986, as amended (the

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	 	“Code”), and to the extent applicable shall be governed
by the terms of the Company’s incentive award plans and
paid in a manner and at such time so as to result in tax
deductibility to the Company.

	 
	 	 
	Employee
Benefits/Expenses:

	 	During the Term:
	 
	 	 
	 

	 	A.  Executive shall
be entitled to participate in or receive benefits under
all employee benefit plans, including, but not limited
to, any pension or retirement plan, savings plan,
medical or health-and-accident plan, life, disability,
and other insurance plans or arrangements generally made
available by the Company to its executives and key
management employees, subject to and on a basis
consistent with the terms, conditions and overall
administration of such plans and arrangements and of
this Agreement. Following a termination by the Company
of Executive’s employment with the Company without Cause
or a resignation by Executive for Good Reason, Executive
will be entitled to be reimbursed for the cost of COBRA
continuation coverage under the Company’s group health
plans for up to eighteen months following his
termination date, subject to Executive’s continued
eligibility for such coverage under COBRA and to the
conditions described in the “Termination” Section below;
any such reimbursement payments payable to Executive
shall be paid to Executive as soon as practicable after
the cost is incurred and the request for reimbursement
is made, but in no event later than December 31 of the
year following the year in which the cost was incurred.

	 
	 	 
	 

	 	B.  Executive shall
be entitled to four weeks paid vacation per full year in
accordance with the policies periodically established by
the Board for other senior executives of the Company;
and

	 
	 	 
	 

	 	C.  The Company shall
pay or reimburse Executive for all reasonable expenses
incurred or paid by Executive in the performance of
Executive’s duties hereunder in accordance with the
generally applicable policies and procedures of the
Company.

	 
	 	 
	Additional Equity 
Participation:

	 	A. Share Purchase & Option
Grant: The Prior Agreement
indicated that it was the
Company’s goal for

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	 	the Executive to acquire from the Company $1,000,000 of
the Company’s Class A common shares (“Shares”). As of
the date of this Agreement, Executive has purchased the
Shares and the details regarding the purchase dates and
the prices at which Executive acquired the Shares are set
forth on Schedule III. Executive agrees that the Shares
shall not be transferable (other than for estate planning
purposes where the ultimate beneficiary of the transfer
is a member of Executive’s immediate family) earlier than
(i) the end of the Term, (ii) the occurrence of a “Change
of Control” (as defined below), or (iii) the date on
which Executive’s employment is terminated. The Prior
Agreement contemplated that the Company would also grant
Executive stock options with an aggregate exercise price
of $10,000,000, and on May 17, 2007, the Company granted
Executive nonqualified options to purchase an aggregate
of 394,946 Class A common shares of the Company at an
exercise price of $25.32 per share (the “Prior Options”).
The Company and Executive agree to provide for the
cancellation of the Prior Options in order for the
Company to be able to regrant the nonqualified stock
options with an exercise price which approximates, to the
extent permissible under the Company’s Share Incentive
Plan, the average price at which Executive acquired the
Shares (the “Stock Options”), as set forth below:

	 
	 	 
	 

	 	a.  The Company and Executive agree that the Prior
Options shall be cancelled effective as of the
first meeting of the Compensation Committee of
the Board which occurs after the date of this
Agreement (the date of such Compensation
Committee meeting shall be the “Grant Date”),
and Executive shall thereafter have no further
rights with respect to the Prior Options or the
agreements evidencing such options.

	 
	 	 
	 

	 	b.  Effective as of the Grant Date, the Company
shall grant Stock Options to Executive as
described below.

	 
	 	 
	 

	 	     1.Number of Shares. Executive shall be
granted Stock Options for a number of the
Company’s Class A common shares equal to the
quotient of (i) $10,000,000, divided by (ii) the

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	 	“Average Share Price” (which is the aggregate
price that Executive paid to acquire the Shares,
divided by the number of Shares acquired), with
such result rounded down to the nearest whole
share.

	 
	 	 
	 

	 	     2. Exercise Price. The exercise price per
share of the Stock Options shall be equal to the
higher of (i) the closing price of the Company’s
Class A common shares on the Grant Date, as
reported in the Wall Street Journal (the
“Grant Date Closing Price”), or (ii) the Average
Share Price.

	 
	 	 
	 

	 	B. Time Vesting
Options: 12.5% of the Stock Options shall vest on each
of December 31, 2008, December 31, 2009, December 31,
2010, and December 31, 2011 (aggregating 50% of the
Stock Options) if Executive is employed by the Company
and in good standing as of such respective dates.

	 
	 	 
	 

	 	C. Performance
Vesting Options:

	 
	 	 
	 

	 	a.  An additional 12.5% of the Stock Options shall
provisionally vest on each of December 31, 2008,
December 31, 2009, December 31, 2010 and
December 31, 2011 (aggregating the remaining 50%
of the Stock Options (the “Performance Stock
Options”)) if, in addition to the criteria
described below, on such dates Executive is
employed by the Company and in good standing.
The number of provisionally vested Performance
Stock Options in respect to a calendar year that
shall vest conclusively shall be determined by
multiplying the number of such provisionally
vested Performance Stock Options by a fraction,
the numerator of which fraction shall equal the
excess over 90 of the Trued-Up Performance Score
for the Target Year inclusive of the date on
which such Performance Stock Options
provisionally vested (capped at ten for this
purpose) and the denominator of which fraction
shall equal ten.

	 
	 	 
	 

	 	b.  Provisionally vested Performance Stock Options
shall become exercisable only in the event such
options become conclusively vested as verified

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	 	by the Company’s independent auditors and
confirmed by the Board.

	 
	 	 
	 

	 	D. Special Vesting
of Options, Restricted Shares and Retained Cash Bonus:

	 
	 	 
	 

	 	a.  Notwithstanding paragraph a. of Section C
(immediately preceding), all provisionally
vested Performance Stock Options shall vest
conclusively (and thereafter be exercisable) as
of the 120th day following a two-year
consecutive period of either calendar years (i)
2010 and 2011 or (ii) calendar years 2011 and
2012 if:

	 
	 	 
	 

	 	1.  the Company’s return on equity (determined
in accordance with GAAP) and the Company’s
percentage increase in gross written
premiums (over the relevant preceding year)
exceeded the return on equity (determined in
accordance with GAAP) and the percentage
increase in gross written premiums (over the
relevant preceding year), of more than 50%
of the Peer Group (as hereafter defined), as
determined by the Board in its discretion
within 120 days after the close of the
relevant two-year period. The Board, in its
sole discretion, may make such adjustments
to the determination required by this
paragraph as it deems appropriate to account
for unanticipated and/or extraordinary
matters affecting the Company’s or Peer
Group members’ results; and

	 
	 	 
	 

	 	2.  Executive was employed by the Company and
in good standing on (i) December 31 of each
year in which the Company’s performance
satisfied the conditions of paragraph 1
(immediately preceding) and (ii) the date on
which the relevant Board determination was
made.

	 
	 	 
	 

	 	Example: If the Company’s return on
equity for 2010 of 15% exceeded the median
return on equity for the Peer Group of
12%, the Company’s return on equity for
2011 of 18% exceeded the median return on
equity for the

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	 	Peer Group of 15%, the Company’s increase
in gross written premiums for 2010 of 5%
exceeded the median increase for the Peer
Group of 3%, and the Company’s increase in
gross written premiums for 2011 of 8%
exceeded the median increase for the Peer
Group of 7%, then all necessary targets
will have been achieved and all
provisionally vested Performance Options
may be conclusively vested, subject to
Executive being employed in good standing
on the required dates.

	 
	 	 
	 

	 	3.  For purposes of paragraph 1 of this Section
D, the “Peer Group” shall consist of W.R.
Berkley Corporation (BER), RLI Corporation
(RLI), James River Group, Inc. (JRVR),
Navigators Insurance Group (NAVG),
Philadelphia Consolidated Group (PHLY),
Markel Corporation (MKL), HCC Insurance
Holdings, Inc. (HCC), Argonaut Group (AGII)
and NYMAGIC, Inc. (NYM). The companies
constituting the Peer Group may be modified
by the Board from time to time in its
discretion so as to take into account new
competitive entrants to the Company’s market
niche, the departure of companies from the
Company’s market niche, as well as mergers,
acquisitions and other changes affecting
companies included in the Peer Group.

	 
	 	 
	 

	 	b.  Notwithstanding any other provision of this
Agreement, upon the consummation of a Change of
Control (as defined below), if Executive is then
employed by the Company in good standing and has
not given notice of resignation, all unvested
and provisionally vested Stock Options and all
unvested Restricted Shares shall vest
conclusively (and thereafter become exercisable)
and Executive shall be paid any then outstanding
Paid Cash Bonus and Retained Cash Bonus (without
being subject to any true-up adjustments
provided for herein if the Company’s publicly
traded shares appreciated in value by a 15% or
greater annual compounded rate (over the period
from August 15, 2007 through the date of the
Change of Control), as measured by the
comparison of the

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	 	Average Share Price to the closing price on the
date of the consummation of the Change of Control
(as reported in the Wall Street Journal).
In determining such compounded rate of the
Company’s publicly traded shares for purposes of
this paragraph, the Board shall give appropriate
credit to dividends and other distributions made
in respect to the Company’s shares to all
shareholders as well as other relevant items
(such as stock splits).

	 
	 	 
	 

	 	c.  For purposes of this Section D:

	 
	 	 
	 

	 	1.  A “Change of Control” shall mean (i) the
acquisition of all or substantially all of
the Company’s assets by an Unaffiliated
Person, (ii) a merger, consolidation,
statutory share exchange or similar form of
corporate transaction after which the
resulting entity is controlled by an
Unaffiliated Person, or (iii) the
acquisition by an Unaffiliated Person of
sufficient voting shares of the Company to
cause the election of a majority of the
Company’s Directors.

	 
	 	 
	 

	 	2.  “Unaffiliated Person” shall mean a “person”
(as such term is defined in Section 3(a)(9)
of the Securities Exchange Act of 1934 and
as such term is used in Section 13(d)(3) and
14(d)(2) of such Act) or a group of
“persons” which is not an Affiliate of Fox
Paine & Company, LLC (“Fox Paine”), the
members thereof, or Fox Paine Capital Fund
II, L.P.

	 
	 	 
	 

	 	E. Shareholding
Guidelines. In addition to any other transfer
restrictions contained herein, beginning as of January
1, 2010 and for the remainder of the Term, Executive
shall be obligated at all times to hold shares in the
Company with a value of no less than two times his
“Annual Compensation” (as defined below) (or if less,
the aggregate value of the shares if any acquired by
Executive based on his agreement with the Chairman, any
shares which he has been granted pursuant to this
Agreement and any vested “in the money” Time Vesting
Options which he has been granted pursuant to

-15-

 

	 	 	 
	 

	 	this Agreement), or such higher amount as may be required
by the Board pursuant to share ownership guidelines
adopted with respect to the Company’s senior executive
team. Such value shall include vested and exercisable
“in the money” share options, assuming their exercise for
the underlying shares. For purposes of this Section E,
“Annual Compensation” shall be the Base Salary plus the
Annual Bonus payable upon the achievement of a
Performance Score of 100 and all applicable milestones
and goals (including any retained portion of the Annual
Bonus but excluding all tax liability payments).

	 
	 	 
	 

	 	F. Equity
Agreements. Any restricted shares or options which are
granted pursuant to this Agreement shall be granted
pursuant to the restricted share and share option
agreements attached as Exhibits A, B and C hereto, and
any grants hereunder shall be conditioned on (i)
Executive’s execution of such agreements; and (ii) the
Company’s shareholder-approved, publicly-filed equity
compensation plan, i.e., its Share Incentive Plan, as
such plan may be amended from time to time (or any
successor thereto).

	 
	 	 
	Compliance with
Section 409A:

	 	The parties have attempted in good
faith to structure this Agreement to
comply with or be exempt from Section
409A of the Code and the regulations
and guidance relating thereto
(“Section 409A”). Therefore,
notwithstanding any provision to the
contrary in the Agreement, if
Executive is deemed at the time of
his “separation from service” within
the meaning of Treasury Regulation
Section 1.409A-1(h) (a “Separation
from Service”) to be a “specified
employee” for purposes of Section
409A(a)(2)(B)(i) of the Code, to the
extent delayed payment of any portion
of the payments to which Executive is
entitled under this Agreement is
required in order to avoid a
prohibited distribution under Section
409A(a)(2)(B)(i) of the Code, such
portion of the payments shall not be
provided to Executive prior to the
earlier of (i) the expiration of the
six-month period measured from the
date of the Separation from Service
or (ii) the date of Executive’s
death. Upon the expiration of the
applicable Code Section
409A(a)(2)(B)(i) deferral period, all
payments deferred pursuant to this
paragraph shall be paid in a lump sum
to Executive and any remaining
payments

-16-

 

	 	 	 
	 

	 	due under the Agreement
shall be paid as otherwise provided
herein.
	 
	 	 
	Termination:

	 	The Board may, in its absolute
discretion, terminate Executive’s
employment with the Company at any
time prior to the expiration of the
Term, with or without Cause, upon
three full calendar months’ written
notice (in which event Executive
shall receive accrued and unpaid Base
Salary through the termination date)
and during such three-month period
the Company may request that
Executive resign his officerships and
direct Executive to perform only
those services (if any) it determines
are necessary. If Executive’s
employment terminates as a result of
his death or “Disability” (such
Disability occurring when a licensed
physician selected by the Company
determines that Executive is disabled
and Executive is unable to perform or
complete his duties under this
Agreement for a period of 180
consecutive days or 180 days within
any twelve-month period), Executive
or his successors shall receive
accrued and unpaid Base Salary
through to the termination date. In
the event Executive’s employment with
the Company is terminated by the
Company without Cause or as a result
of a resignation by the Executive for
Good Reason, Executive shall receive
from the Company the salary amounts
payable pursuant to the second
sentence of the “Base Salary”
paragraph of the “Annual
Compensation” Section hereof,
continued benefits as provided in the
“Employee Benefits/Expenses” Section
hereof, and continued vesting in any
equity awarded as provided in this
Agreement, provided that such
payments, benefits and vesting shall
be conditioned on (i) Executive
executing a general release in favor
of the Company, its Directors, and
employees, Fox Paine, and its members
and employees, and all Affiliates of
each of the foregoing no later than
fifty (50) days after the termination
date (and not revoking such release),
(ii) Executive remaining in
compliance with all of his
Post-Termination Obligations, and
(iii) the Company determining that it
did not have Cause to terminate
Executive while he was employed.
Executive may terminate his
employment with the Company at any
time without Good Reason upon written
notice to the Chairman of at least
three full calendar months (and upon
such notice the Company may elect to
terminate Executive without any
further payment obligations
whatsoever as if Executive was
terminated with Cause). Any
termination of Executive’s employment
with the Company by the Executive for
Good Reason shall be upon thirty (30)
days’ advance written

-17-

 

	 	 	 
	 

	 	notice and
subject to the cure and other
provisions related
to “Good Reason” as set forth in the “Cause/Good Reason” section below.
	 
	 	 
	Cause / Good Reason:

	 	“Cause” shall mean (i) the engaging
by Executive in malfeasance, fraud,
dishonesty or gross misconduct
adverse to the interests of the
Company or its Affiliates, (ii) the
material violation by Executive of
any of the covenants hereof or other
provisions of this Agreement after
notice from the Company and a failure
to cure such violation within 10 days
of said notice (to the extent the
Board reasonably determines such
violation is curable and subject to
notice), (iii) a breach by Executive
of any representation or warranty
contained herein, (iv) the Board’s
determination that Executive has
exhibited incompetence or gross
negligence in the performance of his
duties hereunder, (v) receipt of a
final written directive or order of
any governmental body or entity
having jurisdiction over the Company
requiring termination or removal of
Executive, (vi) Executive being
charged with a felony or other crime
involving moral turpitude, or (vii)
Executive substantially failing to
perform his duties hereunder after
notice from the Company and failure
to cure such non-performance within
10 days of said notice (to the extent
the Board reasonably determines such
failure to perform is curable and
subject to notice) or violating any
material Company policies, including,
without limitation, the Company’s
corporate governance and ethics
guidelines, conflicts of interests
policies and code of conduct
applicable to all Company employees
or senior executives.
	 
	 	 
	 

	 	“Good Reason” shall mean a willful
and substantial reduction in
Executive’s material responsibilities
and reporting as provided for in the
“Responsibilities” and “Reporting”
Sections of this Agreement which
remains uncured for thirty (30) days
after written notice thereof is
provided by Executive to the Company
setting forth in reasonable detail
the alleged reduction at issue;
provided that Executive must provide
such written notice within ten (10)
days of the event allegedly giving
rise to Good Reason or such alleged
event shall not provide a basis for
such notice; provided further that
(i) “dotted-line” or dual reporting
to the Chairman by any Company or
Company Affiliate executive shall not
constitute Good Reason and (ii) a
modification as to whom Executive
shall report resulting from a Change
of Control shall not constitute Good
Reason.

-18-

 

	 	 	 
	Covenants:

	 	As consideration for the payments
made and equity awarded pursuant to
this Agreement, along with other good
and valuable consideration,
including, without limitation, the
trade secrets provided to Executive
in connection with the performance of
his duties, Executive agrees and
acknowledges that he will be bound by
the restrictive covenants set forth
on Schedule I hereof.
	 
	 	 
	Policies:

	 	Executive covenants and agrees to be
subject to the policies applicable to
a senior executive of the Company,
including without limitation the
Company’s corporate governance rules,
procedures, and policies as may be
adopted by the Board from time to
time.
	 
	 	 
	Miscellaneous:

	 	Executive represents that he is not a
party to any agreement or arrangement
that would limit in any manner his
ability to perform the duties
contemplated hereunder and that he
will not use any confidential
information belonging to his previous
employer(s) in the performance of his
duties hereunder. The Company may
set-off against or otherwise deduct
from any amounts owed or due
Executive or Company shares or
options in respect of Company shares
held by Executive if and to the
extent that Executive is in default
in respect of amounts he is obligated
to pay to the Company (or any Company
Affiliate).
	 
	 	 
	Binding Agreement:

	 	The obligations of Executive under
this Agreement will continue after
the termination of his employment
with the Company for any reason, to
the extent provided herein, and will
be binding on his heirs, executors,
and legal representatives.
	 
	 	 
	Assignment:

	 	This Agreement shall not be
assignable by Executive. This
Agreement is assignable by the
Company to an Affiliate. The rights
and obligations hereunder shall be
binding upon and take effect for the
benefit of any successor in interest
of the Company created by merger,
reorganization, sale of assets,
assignment or otherwise, and the
Company shall use commercially
reasonable efforts to obtain an
assumption agreement with respect to
this Agreement from such successor.
	 
	 	 
	Indemnity:

	 	The Company shall, as provided for by
its by-laws and charter, defend and
indemnify Executive. The Company
shall also include Executive in the
coverage provisions of the directors
and officers liability insurance
policy that it maintains for its
Directors and officers, including any

-19-

 

	 	 	 
	 

	 	applicable tail coverage that it provides to its current and former Directors,
as may be applicable.
	 
	 	 
	Board Approval:

	 	This Agreement is subject to the approval of
the Board and its Compensation Committee.
Only upon such approval and the manual
execution hereof by Executive and the
Chairman shall the Agreement become a legally
binding agreement of the Company and
Executive.
	 
	 	 
	Governing Law:

	 	Executive and the Company agree that, due to
the Company’s significant and ongoing
contacts and business relationships
(including its listing on NASDAQ) with the
State of New York, this Agreement shall be
governed by and construed in accordance with
the laws of such state, without reference to
principles of conflict of laws of that
jurisdiction or any other jurisdiction.
	 
	 	 
	Arbitration:

	 	All disputes between the Company and
Executive or between Executive and any
Affiliate shall be resolved by binding
confidential arbitration in front of a single
arbitrator in Philadelphia, Pennsylvania,
United States conducted by the Judicial
Arbitration and Mediation Services, Inc.
(“JAMS”) in accordance with the comprehensive
rules and procedures of JAMS, including the
internal appeal process provided for in Rule
34 of the JAMS rules with respect to any
initial judgment rendered in an arbitration.
The Company, its Affiliates and Executive
agree that the arbitrator shall have no
authority to award any punitive or exemplary
damages and waive, to the full extent
permitted by law, any right to recover such
damages in arbitration. The Company (or its
Affiliate) shall pay the costs and fees of
the arbitrator and appeal arbitrators. The
Company (or its Affiliate) and Executive
shall each bear its own respective costs,
including attorney’s fees (and there shall
not be any award of attorney’s fees).
Judgment on the award rendered in such
arbitration may be entered in any court
having jurisdiction. Notwithstanding the
foregoing, the Company and its Affiliates
reserve the right to obtain judicial
injunctive relief arising in connection with
a prospective violation by Executive of the
provisions hereof relating to
non-competition, non-solicitation, or Company
Confidential Information and any claim or
cause of action which Executive has against
the Company or Affiliates shall not be a bar
or defense to the granting of such relief.
In the event the Company and/or its
Affiliates seek judicial injunctive relief
arising in connection with an actual or
threatened violation by Executive of the
provisions hereof

-20-

 

	 	 	 
	 

	 	relating to non-competition, non-solicitation, or Company Confidential
Information, the Company will be entitled to all attorney’s fees and all costs
and disbursements incurred by the Company in enforcing any actual and/or
threatened violation.
	 
	 	 
	Affiliates/
company affiliates:

	 	The term “Affiliate(s)” includes: (i) the
Company and any person or entity controlled
by, or under common control with, the
Company; (ii) all current and former
Directors; (iii) Fox Paine, Fox Paine Capital
Fund II, L.P., and Fox Paine Capital Fund
International II, L.P.; and (iv) each of such
entities’ members, shareholders, partners,
and employees.
	 
	 	 
	 

	 	The term “Company Affiliate(s)” includes only
the Company and any person or entity
controlled by the Company.
	 
	 	 
	Integration:

	 	This writing supersedes and integrates all
prior promises, representations, offers,
contracts, and agreements between the Company
or any Affiliate and Executive and among
Executive and Fox Paine, Saul Fox, or any
Affiliate of the foregoing. This letter may
not be amended except in a writing which is
manually executed by Executive and Saul Fox
and approved by the Board.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on February 5,
2008.

	 	 	 	 	 	 	 	 	 
	UNITED AMERICA INDEMNITY, LTD.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 

	 	Saul A. Fox
	 	 	 	LARRY A. FRAKES	 	 
	 

	 	Chairman of the Board	 	 	 	 	 	 

-21-

 

Schedule I

Covenants of Executive

	1)	 	Non-Competition. Executive covenants and agrees that during his employment with the
Company, and for a period of eighteen (18) months following the termination of such employment
for any reason, Executive shall not directly or indirectly, own, manage, operate, participate
in, be employed by, associate with, advise (as a consultant or otherwise), engage in or
otherwise have an interest in any business competing with the insurance or reinsurance
businesses of the Company or its Affiliates within any geographical area in which the
Companies or its Affiliates engage in such businesses Notwithstanding the foregoing, it shall
not be a violation of Executive’s obligations pursuant to this paragraph for Executive to hold
publicly-traded securities of his former employer or one percent or less of the outstanding
publicly-traded securities of a different company.

	2)	 	Non-Solicitation/Non-Interference. Executive covenants and agrees that during his
employment with the Company, and for a period of eighteen (18) months following the
termination of such employment for any reason, he shall not (i) directly, indirectly, or
assist another to solicit, to endeavor to entice away from the Company or its Affiliates, or
to induce (or attempt to induce) or to accept business from any Producer or Producers (as
those terms are defined below), customers, clients or accounts who have engaged in any
business with the Company or its Affiliates within the twelve-month period preceding the end
of the Executive’s employment with Company; (ii) directly, indirectly, or assist another to
engage in any conduct that interferes or is intended to interfere with the relationship
between the Company and/or its Affiliates and any Producers, customers, clients or accounts;
or (iii) directly or indirectly, by himself, or by being associated with, employed by, or in
business with any business entity or individual who, or directly or indirectly hire(s),
attempt(s) to hire, solicit(s), or induce(s) any employee of the Company or its Affiliates,
including anyone so employed within the twelve-month period prior to his termination of
employment, to either (x) terminate such employment with the Company or its Affiliate or (y)
associate with, be employed by, or join in business with any other Person operating in the
property and casualty insurance industry. The term “Producer” or “Producer(s)” includes
managing general agents, wholesale general agents, and other producers or wholesale
distributors, retail distributors, or other distributors of property and casualty insurance
business underwritten by the Company.

	3)	 	Confidential Information. Executive covenants and agrees not to, during or after his
employment with the Company (i) disclose, in whole or in part, any “Company Confidential
Information” (as defined below) to any Person unless authorized in writing to do so by the
Company or required by law or (ii) use any Company Confidential Information for his own
purpose or for the benefit of any Person other than the Company, except in the proper
performance of his duties as instructed or approved by the Company in writing.

The term “Company Confidential Information” means the knowledge and information acquired by
Executive concerning the Company’s and its Affiliates’ confidential and

 

 

proprietary information regarding business plans, software, formatting, programs, client
prospects, client lists, supplier and vendor information, client contacts, client
information and data, market data, marketing plans, data processing systems and information
contained therein, products, proposals to clients and potential clients, account reports,
plans, studies, underwriting policies and practices, pricing information, loss experience
information, competitive information, price lists, financial statements and records, files
and other trade secrets, know-how, or other private, confidential or proprietary information
of or about the Company or its Affiliates which is not already available to the public or
known generally in the industry. The term “Company Confidential Information” shall not
include (x) information in the public domain or generally known in the industry (unless
Executive is responsible, directly or indirectly, for such Company Confidential Information
entering the public domain or becoming known in the industry without the Company’s consent),
(y) information and know-how derived or known by Executive from experience in the industry
generally and not specific to the Company, or (z) information disclosed by the Company to
third parties without any duty or obligation of confidentiality or non-disclosure.

	4)	 	Work for Hire. All original works of authorship which have been or are made by
Executive within the scope of and during the period of his employment with the Company and
which are protectable by copyright are “works for hire” and the Company or its designee shall
own all rights therein.

	5)	 	Assignment of Invention. Executive shall disclose promptly in writing to the
Company, all inventions, including discoveries, concepts and ideas, patentable or not,
hereafter made or conceived solely or jointly by Executive during employment with the Company
(or its Affiliates), or within six months after the termination of Executive’s employment, if
based on or related to proprietary information of the Company or its Affiliates known by
Executive, provided such invention, discovery, concepts and ideas relate in some manner to the
business or activities of the Company. Executive agrees that in connection with any invention
covered by this paragraph, Executive shall, on request of the Company, promptly execute a
specific assignment of title to the Company or its Affiliates and do anything else reasonably
necessary to enable the Company or its Affiliates to secure a patent therefor in the United
States and foreign countries.

	6)	 	Cooperation. Executive agrees to be available to the Company from time to time to
answer questions or provide information relating to Company matters that he worked on during
his employment at the Company or its Affiliates for a period of six months following his
termination of employment for any reason (the “Cooperation Period”). The Company shall make
reasonable efforts to minimize any burden placed on Executive during the Cooperation Period
and shall not unreasonably interfere in Executive’s obligations to any subsequent employer.
In the event that Executive would reasonably be required to incur any cost or expense to
communicate with the Company or travel to any location requested by the Company, the Company
shall advance any such travel or other costs reasonably incurred by Executive to comply with
and perform his obligations during the Cooperation Period.

-2- 

 

	7)	 	Acknowledgment. Executive acknowledges and agrees that the terms of these covenants:
(i) are reasonable in light of all of the circumstances; (ii) are sufficiently limited to
protect the legitimate interests of the Company and its subsidiaries; (iii) impose no undue
hardship on Executive; and (iv) are not injurious to the public. Executive further
acknowledges and agrees that (x) Executive’s breach of the provisions of these covenants will
cause the Company irreparable harm, which cannot be adequately compensated by money damages,
and (y) if the Company elects to prevent Executive from breaching such provisions by obtaining
an injunction against Executive, there is a reasonable probability of the Company’s eventual
success on the merits. Executive consents and agrees that if he commits any such breach or
threatens to commit any breach, the Company shall (at its election and notwithstanding the
Arbitration provision hereof) be entitled to temporary, preliminary and permanent injunctive
relief from a court of competent jurisdiction, without posting any bond or other security and
without the necessity of proof of actual damage, in addition to, and not in lieu of, such
other remedies as may be available to the Company for such breach, including the recovery of
money damages. All references to the Company in this paragraph shall include its Affiliates.
Executive further agrees that the Company will be entitled to all attorney’s fees and all
costs and disbursements incurred by the Company in enforcing any actual and/or threatened
breach of any of the provisions in this Schedule I (“Covenants of the Executive”).

-3-

 

Schedule II

[Example of Accident Year True-Up Provisions]

 

 

Schedule II

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UAI CEO Employment Agreement	 	Year Ended	 	 	2007 Payout on	 	 	Year Ended	 	 	2008 Payout on	 	 	Year Ended	 	 	2009 Payout on	 	 	Year Ended	 	 	2010 Payout on	 	 	Year Ended	 	 	2011 Payout on	 	 	Year Ended	 	 	2012 Payout on	 	 	Year Ended	 	 	2013 Payout on	 
	Retained Cash Bonus True-up Example	 	2007	 	 	Mar./Apr. 2008 (1)	 	 	2008	 	 	Mar./Apr. 2009	 	 	2009	 	 	Mar./Apr. 2010	 	 	2010	 	 	Mar./Apr. 2011 (13)	 	 	2011	 	 	Mar./Apr. 2012	 	 	2012	 	 	Mar./Apr. 2013	 	 	2013	 	 	Mar./Apr. 2014	 
	 
	Projected Consolidated Net Income Per Share — (Accident Year Basis)
	 	$	2.30	 	 	 	 	 	 	$	2.53	 	 	 	 	 	 	$	2.78	 	 	 	 	 	 	$	3.06	 	 	 	 	 	 	$	3.37	 	 	 	 	 	 	$	3.70	 	 	 	 	 	 	$	4.07	 	 	 	 	 
	Actual Consolidated Net Income Per Share — (Accident Year Basis)
	 	$	2.30	 	 	 	 	 	 	$	2.67	 	 	 	 	 	 	$	2.50	 	 	 	 	 	 	$	3.34	 	 	 	 	 	 	$	3.40	 	 	 	 	 	 	$	3.65	 	 	 	 	 	 	$	4.08	 	 	 	 	 
	Performance Score — Section A.b
	 	 	100.0	%	 	 	 	 	 	 	105.5	%	 	 	 	 	 	 	90.0	%	 	 	 	 	 	 	109.1	%	 	 	 	 	 	 	101.0	%	 	 	 	 	 	 	98.5	%	 	 	 	 	 	 	100.1	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bonus Components:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section B.(a) bonus (2)
	 	 	500,000	 	 	 	 	 	 	 	775,000	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	955,000	 	 	 	 	 	 	 	550,000	 	 	 	 	 	 	 	425,000	 	 	 	 	 	 	 	505,000	 	 	 	 	 
	Section B.(b) bonus (3)
	 	 	1,000,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 	 	 	700,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payment for Tax liability on restricted share vesting (12) — Section B.c
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	46,250	 	 	 	 	 	 	 	92,500	 	 	 	 	 	 	 	92,500	 	 	 	 	 	 	 	154,167	 	 	 	 	 	 	 	169,584	 	 	 	 	 	 	 	185,000	 
	Annual Bonus
	 	 	 	 	 	 	1,500,000	 	 	 	 	 	 	 	1,821,250	 	 	 	—	 	 	 	92,500	 	 	 	 	 	 	 	2,047,500	 	 	 	 	 	 	 	1,704,167	 	 	 	 	 	 	 	1,294,584	 	 	 	 	 	 	 	1,690,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paid in Restricted Stock (4) — Section C
	 	 	(500,000	)	 	 	500,000	 	 	 	(500,000	)	 	 	500,000	 	 	 	—	 	 	 	—	 	 	 	(500,000	)	 	 	500,000	 	 	 	(500,000	)	 	 	500,000	 	 	 	(500,000	)	 	 	500,000	 	 	 	(500,000	)	 	 	500,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Annual Bonus Cash Portion (without regard to tax liability payments) — Section D
	 	 	1,000,000	 	 	 	 	 	 	 	1,275,000	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	1,455,000	 	 	 	 	 	 	 	1,050,000	 	 	 	 	 	 	 	625,000	 	 	 	 	 	 	 	1,005,000	 	 	 	 	 
	Paid Cash Bonus — Section D.a
	 	 	500,000	 	 	 	500,000	 	 	 	637,500	 	 	 	637,500	 	 	 	—	 	 	 	—	 	 	 	727,500	 	 	 	727,500	 	 	 	525,000	 	 	 	525,000	 	 	 	312,500	 	 	 	312,500	 	 	 	502,500	 	 	 	502,500	 
	Retained Cash Bonus — Section D.b
	 	 	500,000	 	 	 	 	 	 	 	637,500	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	727,500	 	 	 	 	 	 	 	525,000	 	 	 	 	 	 	 	312,500	 	 	 	 	 	 	 	502,500	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2007 Payout on	 	 	 	 	 	 	2008 Payout on	 	 	 	 	 	 	2009 Payout on	 	 	 	 	 	 	2010 Payout on	 
	Accident Year Performance Score True-Up	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2007	 	 	April 15, 2011 (6)	 	 	2008	 	 	April 15, 2012	 	 	2009	 	 	April 15, 2013	 	 	2010	 	 	April 15, 2014	 
	Trued-up Performance Score — Section E.a
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	97.0	%	 	 	 	 	 	 	99.0	%	 	 	 	 	 	 	98.0	%	 	 	 	 	 	 	102.0	%	 	 	 	 
	Recalculated Section B.(a) Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	350,000	 	 	 	 	 	 	 	450,000	 	 	 	 	 	 	 	400,000	 	 	 	 	 	 	 	600,000	 	 	 	 	 
	Recalculated Section B.(b) Bonus
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	400,000	 	 	 	 	 	 	 	800,000	 	 	 	 	 	 	 	600,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total recalculated Annual Bonus (without regard to tax liability payments)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	750,000	 	 	 	 	 	 	 	1,250,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 	 	 	1,600,000	 	 	 	 	 
	Less: Restricted Stock component (5)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(500,000	)	 	 	 	 	 	 	(500,000	)	 	 	 	 	 	 	(500,000	)	 	 	 	 	 	 	(500,000	)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trued Up Annual Bonus Cash Portion — Section E.a
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	250,000	 	 	 	 	 	 	 	750,000	 	 	 	 	 	 	 	500,000	 	 	 	 	 	 	 	1,100,000	 	 	 	 	 
	Excess of Trued-Up Annual Bonus Cash Portion over originally determined Annual Bonus Cash Portion — Section E.b or Section E.d
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(750,000	)	 	 	 	 	 	 	(525,000	)	 	 	 	 	 	 	500,000	 	 	 	 	 	 	 	(355,000	)	 	 	 	 
	Retained Cash Bonus for Target Year — Section E.b.2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	500,000	 	 	 	 	 	 	 	637,500	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	727,500	 	 	 	 	 
	Excess + Retained Cash Bonus for Target Year— Sections E.b.1 and 2 or Section E.d (9)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(250,000	)	 	 	 	 	 	 	112,500	 	 	 	112,500	 	 	 	500,000	 	 	 	500,000	 	 	 	372,500	 	 	 	372,500	 
	Deemed Investment Return (10) — Section E.b.3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	17,733	 	 	 	17,733	 	 	 	78,813	 	 	 	78,813	 	 	 	58,715	 	 	 	58,715	 
	Payment for Tax liability on restricted share vesting (11) — Section B.c
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	46,250	 	 	 	 	 	 	 	92,500	 	 	 	 	 	 	 	92,500	 	 	 	 	 	 	 	154,167	 	 	 	 	 	 	 	169,584	 	 	 	 	 	 	 	185,000	 
	Total Bonus Paid or Awarded (8)
	 	 	 	 	 	$	1,000,000	 	 	 	 	 	 	$	1,183,750	 	 	 	 	 	 	$	92,500	 	 	 	 	 	 	$	1,320,000	 	 	 	 	 	 	$	1,309,400	 	 	 	 	 	 	$	1,560,896	 	 	 	 	 	 	$	1,618,716	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cumulative Retained Cash Bonus (7):
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cumulative Retained Cash Bonus as of the Prior Year
	 	 	—	 	 	 	—	 	 	 	500,000	 	 	 	1,137,500	 	 	 	1,137,500	 	 	 	1,137,500	 	 	 	1,137,500	 	 	 	1,115,000	 	 	 	1,115,000	 	 	 	1,115,000	 	 	 	1,002,500	 	 	 	1,315,000	 	 	 	1,315,000	 	 	 	1,462,500	 
	Current Year Retained Cash Bonus
	 	 	500,000	 	 	 	500,000	 	 	 	637,500	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	727,500	 	 	 	—	 	 	 	525,000	 	 	 	—	 	 	 	312,500	 	 	 	—	 	 	 	502,500	 	 	 	—	 
	Retained Cash Bonus which is paid out (E.b or E.d) or used to reduce other held Retained Cash Bonues (E.d)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(750,000	)	 	 	 	 	 	 	(525,000	)	 	 	(112,500	)	 	 	—	 	 	 	—	 	 	 	(355,000	)	 	 	(372,500	)
	 	 	 
	Cumulative Retained Cash Bonus (7)
	 	 	500,000	 	 	 	500,000	 	 	 	1,137,500	 	 	 	1,137,500	 	 	 	1,137,500	 	 	 	1,137,500	 	 	 	1,115,000	 	 	 	1,115,000	 	 	 	1,115,000	 	 	 	1,002,500	 	 	 	1,315,000	 	 	 	1,315,000	 	 	 	1,462,500	 	 	 	1,090,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Restricted Stock Vesting Schedule (12)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2007 (Granted on March 15, 2008)
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2008 (Granted on March 15, 2009)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	 	 
	2009 no shares granted due to original performance score of 90%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 
	2010 (Granted on March 15, 2011) (13)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	166,667	 	 	 	 	 	 	 	166,667	 	 	 	 	 	 	 	166,667	 
	2011 (Granted on March 15, 2012)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	166,667	 	 	 	 	 	 	 	166,667	 
	2012 (Granted on March 15, 2013)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	166,667	 
	2013 (Granted on March 15, 2014)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Value of shares vesting per calendar year
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	125,000	 	 	 	 	 	 	 	250,000	 	 	 	 	 	 	 	250,000	 	 	 	 	 	 	 	416,667	 	 	 	 	 	 	 	458,334	 	 	 	 	 	 	 	500,001	 

 

			
	(1)	 	Restricted stock grant is made as of March 15. Paid Cash Bonus is made
within 30 days of the Board’s determination, which is due within 75 days of
the start of the year.
	 
	(2)	 	(Performance Score -90)x50,000
	 
	(3)	 	(Performance Score <=100-95)x200,000
	 
	(4)	 	Full $500,000 payment assumes goals/milestones fully achieved.
	 
	(5)	 	Restricted stock component is deducted because it is not impacted by true-up feature.
	 
	(6)	 	Retained Cash Bonus is paid within 45 days of completion of audited financial statements, which
are expected on March 1.
	 
	(7)	 	Cumulative Retained Cash Bonus equals annual Retained Cash Bonus, less payouts of retained
bonus or deficits after the true-up period has ended.
	 
	(8)	 	Calendar year bonus paid consists of restricted stock and 50% of Target Year
Annual Cash Bonus, plus payout of trued-up remainder for the Target Year close out
scheduled for that year.
	 
	(9)	 	The Retained Cash Bonus for 2007 upon true-up was depleted, and therefore no
Retained Cash Bonus is paid, and the remaining deficit is netted against the
cumulative Retained Cash Bonus.
	 
	(10)	 	CEO earns interest on the Retained Cash Bonus at the invested asset earned rate
of the Company over the 3-year period.
	 
	 	 	For purposes of this example, a 5% return on invested assets is assumed.
	 
	(11)	 	As per the employment contract, the CEO receives cash funding of the tax liability generated
by the scheduled vesting of his restricted stock shares.
	 
	 	 	A 37% effective tax rate (assuming a PA/non-Phila -
resident (35% federal, 3.07% state)) has been used for the
purpose of this example.
	 
	(12)	 	Assumes flat share value over vesting period.
	 
	(13)	 	Payments and grants in 2011 and thereafter are based on CEO/Company reaching agreement on
continued employment.
	 
	 	 	True-ups for 2011 and beyond are not shown.

 

Schedule III

[Schedule of Share Purchases by Executive Through the Date of the Agreement]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 	 	 	 	 
	 	 	Shares	 	 	 	 	 	Total Amount
	Date	 	Purchased	 	Price Per Share	 	Paid
	August 15, 2007
	 	 	15,000	 	 	$	19.73	 	 	$	295,950	 
	November 8, 2007
	 	 	19,000	 	 	$	20.63	 	 	$	391,970	 
	December 3, 2007
	 	 	10,200	 	 	$	19.59	 	 	$	199,818	 
	December 12, 2007
	 	 	5,800	 	 	$	19.79	 	 	$	114,762	 
	Total/Average
	 	 	50,000	 	 	$	20.0466	 	 	$	1,002,330	 

 

 

Exhibit A

TIME VESTING SHARE OPTION AGREEMENT

     TIME VESTING SHARE OPTION AGREEMENT (“Agreement”) dated as of                     , 200__ (the
“Grant Date”), by and between United America Indemnity, Ltd., a Cayman Islands exempted company
with limited liability whose office is located c/o Walkers SPV Limited, Walker House, 87 Mary
Street, P.O. Box 908GT, George Town, Grand Cayman, Cayman Islands (the “Company”), and Larry A.
Frakes (the “Participant”).

     WHEREAS, pursuant to the United America Indemnity, Ltd. Share Incentive Plan (the “Plan”), the
Committee (as defined in the Plan) has decided to award share options on the terms and conditions
set forth in this Agreement.

     WHEREAS, these Options are granted to the Participant in accordance with the Amended and
Restated Employment Agreement of [date], by and between the Company and the Participant (the
“Employment Agreement”).

     NOW, THEREFORE, in order to implement the foregoing and in consideration of the mutual
representations, warranties, covenants and agreements contained herein, the parties hereto agree as
follows:

1. Definitions.

     As used in this Agreement, the following terms shall have the meanings ascribed to them below.
Any capitalized term used in this Agreement and not defined herein shall have the meaning ascribed
to it in the Plan.

     “Acquisition” shall have the meaning set forth in Section 6.3.

     “Change of Control” shall have the meaning set forth in the Employment Agreement.

     “Class A Common Shares” shall mean the Class A common shares, par value $0.0001 per
share, of the Company, subject to adjustment pursuant to the third paragraph of Section 3 of the
Plan under certain circumstances.

     “Exercise Price” shall have the meaning set forth in Section 2.2, subject to
adjustment pursuant to the third paragraph of Section 3 of the Plan.

     “Grant Date” shall have the meaning set forth in Section 2.1.

     “Options” shall have the meaning set forth in Section 2.1.

     In addition, certain other terms used herein have definitions otherwise ascribed to them
herein.

 

 

2. Grant and Terms of Options.

     2.1 Grant of Options. The Company hereby grants to the Participant as of the Grant
Date [ ] Nonqualified Stock Options (the “Options” or “Time Vesting Options”) to purchase one Class
A Common Share per Option on the terms and conditions set forth below, and in reliance upon the
representations and covenants of the Participant set forth below. Unless sooner exercised or
cancelled as provided for in the Plan or this Agreement, the Options shall expire on the tenth
anniversary of the date of this Agreement.

     2.2 Exercise Price. The Exercise Price of the Options is $[ ] per Class A Common
Share subject thereto.

     2.3 Vesting and Exercisability.

          (a) Subject to the terms and conditions herein, the Options shall vest and become
exercisable according to the following schedule:

	 	 	 
	 	 	Percent of Total Time Vesting Option
	Date of Vesting	 	Grant Vested
	[ ]

	 	25%
	[ ]
	 	50%
	[ ]
	 	75%
	[ ]
	 	100%

     Options that are exercisable may be exercised by the Participant only in accordance
with the terms of the Plan, this Agreement and the Employment Agreement, subject to the
termination, expiration, cancellation, lapsing and other provisions contained in each such
document.

          (b) Notwithstanding anything to the contrary in Section 2.3(a), if the Participant is
employed by the Company and in good standing at the time of a Change of Control, the Options
(or a portion thereof) may accelerate so as to vest and become exercisable in accordance
with the terms of the Employment Agreement, if so provided under the Employment Agreement.

3. Expiration and Cancellation.

          3.1 Termination of Employment. Upon termination of Employment for any reason
(including Cause), vesting ceases, the term of unvested Options lapses and such unvested Options
will expire immediately. If the Participant’s Employment terminates for Cause, vested Options will
also expire immediately. If the Participant’s Employment terminates for any reason other than for
Cause (including as a result of the Participant’s resignation), the Options shall expire on the
earlier of the following occasions:

-2-

 

	 	(i)	 	the expiration date determined pursuant to Section 2.1; or
	 
	 	(ii)	 	the date 90 days after the termination of the Participant’s Employment.

          The Participant may exercise all or part of the Options at any time before its expiration
under this Section 3.1, but only to the extent that the Options have vested and become exercisable
before the Participant’s Employment terminated. In the event that the Participant dies after
termination of Employment, but before the expiration of the Options, all of the Options may be
exercised (prior to expiration) by the executors or administrators of the Participant’s estate by
any person who has acquired the Options directly from the Participant by beneficiary designation,
bequest or inheritance, but only to the extent that the Options have vested and become exercisable
before the Participant’s Employment terminated.

          3.2 Cancellation. In the event the Participant (i) violates any covenant provided in
the Employment Agreement or (ii) is terminated for Cause (as defined subclauses (ii) and (vii) of
the “Cause” clause of the Employment Agreement) (a “Forfeiture Event”), all Options will be
cancelled, Class A Common shares acquired upon the previous exercise of any Options (“Option
Shares”) will be subject to repurchase by the Company at the lower of the Exercise Price or fair
market value, and the Company shall be entitled to repayment by the Participant of any Award Gain
(as defined below) realized as a result of any exercise of any Options or any sale of Option
Shares. If the Participant resigns from employment with the Company or any of its Affiliates, and
if the Company or one of its Affiliates later determines that, while still employed, he had
committed acts that justified termination for Cause (as defined sub-clauses (ii) and (vii) of the
“Cause” clause of the Employment Agreement), then these cancellation and repurchase rights shall
apply.

          (a) Company Repurchase of Shares. Payment with respect to any repurchase of
Option Shares by the Company from the Participant shall take the form of a three-year note
from the Company or its designee, accruing interest at the lowest then applicable rate
mandated by U.S. law, with the principal and interest due on the third anniversary of the
date of purchase (or such later date as may be necessary to permit the Company or its
designee to comply with any applicable borrowing covenants affecting its payment
obligations), and shall be reduced to reflect any outstanding liabilities of the Participant
to the Company or its Affiliates. The Participant promptly shall take all appropriate and
necessary action to facilitate the Company’s purchase of such equity, including the prompt
delivery to the Company (or its designee) of all share certificates or other documents that
the Company may request.

          (b) Recovery of Award Gain.

     1. The term “Award Gain” shall mean (I) in respect of a given options exercise,
the product of (X) the Fair Market Value per Option Share at the date of such
exercise (without regard to any subsequent change in the market price of such Option
Share) minus the Exercise Price times (Y) the number of Option Shares as to which
the Options were exercised at that date, and (II) in respect of any sale of Option
Shares, the value of any cash or the fair market value of the Option Shares or
property paid or payable to the Participant less any

-3-

 

cash or the fair market value of any Option Shares or property (other than
Option Shares or Options which would have been forfeitable hereunder and excluding
any payment of tax withholding) paid by the Participant to the Company (or its
designee) as a condition or in connection with the acquisition of such Option Shares
or amount otherwise included in subclause (I) above.

     2. The Participant will be obligated to repay to the Company (or its designee),
in cash, within ten (10) business days after demand is made therefor, by the Company
(or its designee), the total amount of Award Gain realized by the Participant (I)
upon each exercise of the Options that occurred on or after (A) the date that is six
(6) months prior to the Forfeiture Event, if the Forfeiture Event occurred while the
Participant was employed by the Company or a subsidiary or affiliate, or (B) the
date that is six (6) months prior to the date that the Participant’s employment by
the Company or a subsidiary or affiliate terminated, if the Forfeiture Event
occurred after the Participant ceased to be so employed, or (II) upon any sale,
transfer or other disposition of the Option Shares.

     (c) Should the Company and/or its Affiliates be required to seek judicial
relief to compel the Participant to comply with the provisions of Section 3.2, the
Company and/or its Affiliates shall be entitled to recover their attorneys’ fees and
costs incurred in doing so from the Participant.

4. Transferability of Plan Shares and Options. 

     The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber
any Options, except as hereinafter provided in Section 6.1 and in accordance with the Articles of
Association of the Company.

5. Participant’s Representations, Warranties and Agreements.

     In connection with the exercise of any Options, the Participant shall make to the Company, in
writing, such representations, warranties and agreements in connection with such exercise and
investment in Class A Common Shares as the Committee shall reasonably request.

6. Successors.

          6.1 This Agreement is personal to the Participant and, without the prior written consent of
the Company, shall not be transferable by the Participant otherwise than (i) by will or the laws of
descent and distribution, (ii) pursuant to a qualified domestic relations order (as defined in the
Code) or (iii) pursuant to a gift to the Participant’s spouse, children, grandchildren or other
living descendants, whether directly or indirectly or by means of a trust, partnership, limited
liability company or otherwise. This Agreement shall inure to the benefit of and be enforceable by
the Participant’s legal representatives.

          6.2 This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

-4-

 

          6.3 The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, scheme of arrangement or otherwise (an “Acquisition”)) to all or substantially all
of the business and/or assets of the Company expressly to assume and to agree to perform this
Agreement in the same manner and to the same extent that the Company would have been required to
perform it if no such succession had taken place (or by substituting for such Options new options,
based upon the shares of such successor, having an aggregate spread between the Fair Market Value
of the underlying shares and the Exercise Price thereof, and the same term, immediately after such
substitution, equal to the spread on, and the term of, such Options immediately before such
substitution but in any case subject to the same terms and conditions, including those applicable
to vesting and exercise, as may otherwise be applicable to the Options granted by the Company), and
the Participant hereby agrees to such assumption (or substitution); provided, however, that the
Company or such successor may, at its option, at the time of or promptly after such Acquisition,
terminate all of its obligations hereunder with respect to the Options by paying to the Participant
or the Participant’s successors or assigns an amount equal to the product of (i) the number of
Options and (ii) the Fair Market Value per share of the shares underlying such Options at the time
of such Acquisition less the amount of such Options’ Exercise Price (but not in excess of such Fair
Market Value per share), in either case, in exchange for the Participant’s Options. As used in
this Agreement, the “Company” shall mean both the Company as defined above and any such successor
that assumes and agrees to perform this Agreement, by operation of law or otherwise.

7. Miscellaneous.

          7.1 This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York, without regard to the principles of conflicts of law thereof. The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
This Agreement may not be amended or modified except by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

          7.2 Plan Shares may bear legends to the extent the Committee or the Board determines it to be
necessary or appropriate.

          7.3 All notices and other communications under this Agreement shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail, return receipt
requested, postage prepaid, addressed if to the Participant, at the address set forth on the
signature page hereto, and if to the Company: United America Indemnity, Ltd., c/o Walkers SPV
Limited, Walker House, 87 Mary Street, P.O. Box 908GT, George Town, Grand Cayman, Cayman Islands,
Attention: General Counsel, or to such other addresses as either party furnishes to the other in
writing in accordance with this Section 7.3. Notices and communications shall be effective when
actually received by the addressee.

          7.4 The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

          7.5 No later than the date as of which an amount first becomes includible in the gross income
of the Participant for federal, state, foreign or other income tax purposes with respect to any
Options, the Participant shall pay to the Company, or if appropriate, any of its

-5-

 

Affiliates, or make arrangements satisfactory to the Committee regarding the payment of, any
federal, state, local, foreign or other taxes of any kind required by law to be withheld with
respect to such amount. If approved by the Committee, withholding obligations may be settled with
Class A Common Shares, including Class A Common Shares that are part of the award that gives rise
to the withholding requirement. The obligations of the Company under the Plan shall be conditional
on such payment or arrangements, and the Company and its Affiliates shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment otherwise due to the Participant.
The Committee may establish such procedures as it deems appropriate, including making irrevocable
elections, for the settlement of withholding obligations with Class A Common Shares.

          7.6 The Participant’s or the Company’s failure to insist upon strict compliance with any
provision of, or to assert any right under, this Agreement shall not be deemed to be a waiver of
such provision or right or of any other provision of or right under this Agreement.

          7.8 The Options are granted pursuant to the Plan which is incorporated herein by reference and
the Options shall, except as otherwise expressly provided herein, be governed by the terms thereof.
The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof. The Participant and the Company each acknowledges that this
Agreement (together with the Plan and the other agreements referred to herein and therein)
constitutes the entire agreement and supersedes all other agreements and understandings, both
written and oral, among the parties or either of them, with respect to the subject matter hereof;
provided, however, that the Employment Agreement shall control in the event of any conflict between
the Employment Agreement and this Agreement.

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

UNITED AMERICA INDEMNITY, LTD.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 
	 	 	 	 

Larry A. Frakes
	 	 
	 

	 	 	 	 	 	 	 	[Address]	 	 

-6-

 

Exhibit B

PERFORMANCE VESTING SHARE OPTION AGREEMENT

     PERFORMANCE VESTING SHARE OPTION AGREEMENT (“Agreement”) dated as of                     , 200___
(the “Grant Date”) by and between United America Indemnity, Ltd., a Cayman Islands exempted company
with limited liability whose office is located c/o Walkers SPV Limited, Walker House, 87 Mary
Street, P.O. Box 908GT, George Town, Grand Cayman, Cayman Islands (the “Company”), and Larry A.
Frakes (the “Participant”).

     WHEREAS, pursuant to the United America Indemnity, Ltd. Share Incentive Plan (the “Plan”), the
Committee (as defined in the Plan) has decided to award share options on the terms and conditions
set forth in this Agreement.

     WHEREAS, these Options are granted to the Participant in accordance with the Amended and
Restated Employment Agreement of [date], by and between the Company and the Participant (the
“Employment Agreement”).

     NOW, THEREFORE, in order to implement the foregoing and in consideration of the mutual
representations, warranties, covenants and agreements contained herein, the parties hereto agree as
follows:

     1. Definitions.

     As used in this Agreement, the following terms shall have the meanings ascribed to them below.
Any capitalized term used in this Agreement and not defined herein shall have the meaning ascribed
to it in the Plan.

     “Acquisition” shall have the meaning set forth in Section 6.3.

     “Change of Control” shall have the meaning set forth in the Employment Agreement.

     “Class A Common Shares” shall mean the Class A common shares, par value $0.0001 per
share, of the Company, subject to adjustment pursuant to the third paragraph of Section 3 of the
Plan, under certain circumstances.

     “Exercise Price” shall have the meaning set forth in Section 2.2, subject to
adjustment pursuant to the third paragraph of Section 3 of the Plan.

     “Grant Date” shall have the meaning set forth in Section 2.1.

     “Options” shall have the meaning set forth in Section 2.1.

     In addition, certain other terms used herein have definitions otherwise ascribed to them
herein.

     2. Grant and Terms of Options.

-1-

 

          2.1 Grant of Options. The Company hereby grants to the Participant as of the Grant
Date [ ] Nonqualified Stock Options (the “Options”) to purchase one Class A Common Share per Option
on the terms and conditions set forth below, and in reliance upon the representations and covenants
of the Participant set forth below. Unless sooner exercised as provided for in the Plan or this
Agreement, the Options shall expire on the tenth anniversary of the date of this Agreement.

          2.2 Exercise Price. The Exercise Price of the Options is $[ ] per Class A Common
Share subject thereto.

          2.3 Vesting and Exercisability.

          (a) The Options shall vest as described in the Employment Agreement with the Company
and once vested shall become exercisable to the extent provided for in the Employment
Agreement. Options that are exercisable may be exercised by the Participant only in
accordance with the terms of the Plan and this Agreement and Employment Agreement, subject
to the termination, expiration, cancellation, lapsing and other provisions contained herein
and in the Plan.

          (b) Notwithstanding anything to the contrary in Section 2.3(a), if the Participant is
employed by the Company and in good standing at the time of a Change of Control, the Options
(or a portion thereof) may accelerate so as to vest and become exercisable in accordance
with the terms of the Employment Agreement, if so provided by the Employment Agreement.

     3. Expiration and Cancellation.

          3.1 Termination of Employment. Upon termination of Employment for any reason
(including Cause), vesting ceases (other than with respect to Options that have vested
provisionally as of such date of termination under the terms of the Employment Agreement), the term
of unvested Options lapses and such unvested Options will expire immediately. If the Participant’s
Employment terminates for Cause, vested Options will also expire immediately. If the Participant’s
Employment terminates for any reason other than for Cause (including as a result of the
Participant’s resignation), the Options shall expire on the earlier of the following occasions:

	 	(i)	 	the expiration date determined pursuant to Section 2.1; or
	 
	 	(ii)	 	the date 90 days after the termination of the Participant’s Employment.

          The Participant may exercise all or part of the Options at any time before its expiration
under this Section 3.1, but only to the extent that the Options have vested and become exercisable
before the Participant’s Employment terminated. In the event that the Participant dies after
termination of Employment, but before the expiration of the Options, all of the Options may be
exercised (prior to expiration) by the executors or administrators of the Participant’s estate by
any person who has acquired the Options directly from the Participant by beneficiary designation,
bequest or inheritance, but only to the extent that the Options have vested and become exercisable
before the Participant’s Employment terminated.

-2-

 

          3.2 Cancellation. In the event the Participant (i) violates any covenant provided in
the Employment Agreement or (ii) is terminated for Cause (as defined subclauses (ii) and (vii) of
the “Cause” clause of the Employment Agreement) (a “Forfeiture Event”), all Options will be
cancelled, Class A Common shares acquired upon the previous exercise of any Options (“Option
Shares”) will be subject to repurchase by the Company at the lower of the Exercise Price or fair
market value, and the Company shall be entitled to repayment by the Participant of any Award Gain
(as defined below) realized as a result of any exercise of any Options or any sale of Option
Shares. If the Participant resigns from employment with the Company or any of its Affiliates,
and if the Company or one of its Affiliates later determines that, while still employed, he had
committed acts that justified termination for Cause (as defined sub-clauses (ii) and (vii) of the
“Cause” clause of the Employment Agreement), then these cancellation and repurchase rights shall
apply.

          (a) Company Repurchase of Shares. Payment with respect to any repurchase of
Option Shares by the Company from the Participant shall take the form of a three-year note
from the Company or its designee, accruing interest at the lowest then applicable rate
mandated by U.S. law, with the principal and interest due on the third anniversary of the
date of purchase (or such later date as may be necessary to permit the Company or its
designee to comply with any applicable borrowing covenants affecting its payment
obligations), and shall be reduced to reflect any outstanding liabilities of the Participant
to the Company or its Affiliates. The Participant promptly shall take all appropriate and
necessary action to facilitate the Company’s purchase of such equity, including the prompt
delivery to the Company (or its designee) of all share certificates or other documents that
the Company may request.

          (b) Recovery of Award Gain.

     1. The term “Award Gain” shall mean (I) in respect of a given options exercise,
the product of (X) the Fair Market Value per Option Share at the date of such
exercise (without regard to any subsequent change in the market price of such Option
Share) minus the Exercise Price times (Y) the number of Option Shares as to which
the Options were exercised at that date, and (II) in respect of any sale of Option
Shares, the value of any cash or the fair market value of the Option Shares or
property paid or payable to the Participant less any cash or the fair market value
of any Option Shares or property (other than Option Shares or Options which would
have been forfeitable hereunder and excluding any payment of tax withholding) paid
by the Participant to the Company (or its designee) as a condition or in connection
with the acquisition of such Option Shares or amount otherwise included in subclause
(I) above.

     2. The Participant will be obligated to repay to the Company (or its designee),
in cash, within ten (10) business days after demand is made therefor, by the Company
(or its designee), the total amount of Award Gain realized by the Participant (I)
upon each exercise of the Options that occurred on or after (A) the date that is six
(6) months prior to the Forfeiture Event, if the Forfeiture Event occurred while the
Participant was employed by the Company or a subsidiary or affiliate, or (B) the
date that is six (6) months prior to the date that the

-3-

 

Participant’s employment by the Company or a subsidiary or affiliate
terminated, if the Forfeiture Event occurred after the Participant ceased to be so
employed, or (II) upon any sale, transfer or other disposition of the Option Shares.

     (c) Should the Company and/or its Affiliates be required to seek judicial
relief to compel the Participant to comply with the provisions of Section 3.2, the
Company and/or its Affiliates shall be entitled to recover their attorneys’ fees and
costs incurred in doing so from the Participant.

     4. Transferability of Plan Shares and Options. 

     The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber
any Options, except as hereinafter provided in Section 6.1 and in accordance with the Articles of
Association of the Company.

     5. Participant’s Representations, Warranties and Agreements.

     In connection with the exercise of any Options, the Participant shall make to the Company, in
writing, such representations, warranties and agreements in connection with such exercise and
investment in Class A Common Shares as the Committee shall reasonably request.

     6. Successors.

          6.1 This Agreement is personal to the Participant and, without the prior written consent of
the Company, shall not be transferable by the Participant otherwise than (i) by will or the laws of
descent and distribution, (ii) pursuant to a qualified domestic relations order (as defined in the
Code) or (iii) pursuant to a gift to the Participant’s spouse, children, grandchildren or other
living descendants, whether directly or indirectly or by means of a trust, partnership, limited
liability company or otherwise. This Agreement shall inure to the benefit of and be enforceable by
the Participant’s legal representatives.

          6.2 This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

          6.3 The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, scheme of arrangement or otherwise (an “Acquisition”)) to all or substantially all
of the business and/or assets of the Company expressly to assume and to agree to perform this
Agreement in the same manner and to the same extent that the Company would have been required to
perform it if no such succession had taken place (or by substituting for such Options new options,
based upon the shares of such successor, having an aggregate spread between the Fair Market Value
of the underlying shares and the Exercise Price thereof, and the same term, immediately after such
substitution, equal to the spread on, and the term of, such Options immediately before such
substitution but in any case subject to the same terms and conditions, including those applicable
to vesting and exercise, as may otherwise be applicable to the Options granted by the Company), and
the Participant hereby agrees to such assumption (or substitution); provided, however, that the
Company or such successor may, at its option, at the time of or promptly after such Acquisition,
terminate all of its obligations hereunder with respect to the Options by paying to the Participant
or the Participant’s successors or assigns an amount equal to the product of (i) the number of
Options and (ii) the Fair Market Value per share of the shares underlying such Options at the time
of such Acquisition less the amount of such Options’

-4-

 

Exercise Price (but not in excess of such Fair Market Value per share), in either case, in
exchange for the Participant’s Options. As used in this Agreement, the “Company” shall mean both
the Company as defined above and any such successor that assumes and agrees to perform this
Agreement, by operation of law or otherwise.

     7. Miscellaneous.

     7.1 This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York, without regard to the principles of conflicts of law thereof. The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
This Agreement may not be amended or modified except by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

     7.2 Plan Shares may bear legends to the extent the Committee or the Board determines it to be
necessary or appropriate.

     7.3 All notices and other communications under this Agreement shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail, return receipt
requested, postage prepaid, addressed if to the Participant, at the address set forth on the
signature page hereto, and if to the Company: United America Indemnity, Ltd., c/o Walkers SPV
Limited, Walker House, 87 Mary Street, P.O. Box 908GT, George Town, Grand Cayman, Cayman Islands,
Attention: General Counsel, or to such other addresses as either party furnishes to the other in
writing in accordance with this Section 7.3. Notices and communications shall be effective when
actually received by the addressee.

     7.4 The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     7.5 No later than the date as of which an amount first becomes includible in the gross income
of the Participant for federal, state, foreign or other income tax purposes with respect to any
Options, the Participant shall pay to the Company, or if appropriate, any of its Affiliates, or
make arrangements satisfactory to the Committee regarding the payment of, any federal, state,
local, foreign or other taxes of any kind required by law to be withheld with respect to such
amount. If approved by the Committee, withholding obligations may be settled with Class A Common
Shares, including Class A Common Shares that are part of the award that gives rise to the
withholding requirement. The obligations of the Company under the Plan shall be conditional on
such payment or arrangements, and the Company and its Affiliates shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment otherwise due to the Participant.
The Committee may establish such procedures as it deems appropriate, including making irrevocable
elections, for the settlement of withholding obligations with Class A Common Shares.

     7.6 The Participant’s or the Company’s failure to insist upon strict compliance with any
provision of, or to assert any right under, this Agreement shall not be deemed to be a waiver of
such provision or right or of any other provision of or right under this Agreement.

     7.7 The Options are granted pursuant to the Plan which is incorporated herein by reference and
the Options shall, except as otherwise expressly provided herein, be governed by

-5-

 

the terms thereof. The Participant hereby acknowledges receipt of a copy of the Plan and
agrees to be bound by all the terms and provisions thereof. The Participant and the Company each
acknowledges that this Agreement (together with the Plan and the other agreements referred to
herein and therein) constitutes the entire agreement and supersedes all other agreements and
understandings, both written and oral, among the parties or either of them, with respect to the
subject matter hereof; provided, however, that the Employment Agreement shall control in the event
of any conflict between the Employment Agreement and this Agreement.

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

UNITED AMERICA INDEMNITY, LTD.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 
	 	 	 	 

Larry A. Frakes
	 	 
	 

	 	 	 	 	 	 	 	[Address]	 	 

-6-

 

Exhibit C

RESTRICTED SHARE AGREEMENT

     THIS AGREEMENT, made as of the ___day of ___________, 200___(the “Grant Date”), by and between
United America Indemnity, Ltd., a Cayman Islands exempted company with limited liability whose
office is located c/o Walkers SPV Limited, Walker House, 87 Mary Street, P.O. Box 908GT, George
Town, Grand Cayman, Cayman Islands (the “Company”), and Larry A. Frakes (the “Participant”), with
an address of                                 .

     1. Grant of Shares. Subject to the restrictions, terms and conditions of the United
America Indemnity, Ltd. Share Incentive Plan (the “Plan”), this Agreement and the Amended and
Restated Employment Agreement of [date], by and between the Company and the Participant (the
“Employment Agreement”), the Company hereby awards to the Participant ___(_0) shares of the
Company’s validly issued Class A common shares, par value $.0001 per share (“Common Shares” or the
“Plan Shares”). To the extent required by law, the Participant shall pay the Company the par value
($.0001) for each Share awarded to the Participant simultaneously with the execution of this
Agreement. Pursuant to Section 2 hereof, the Plan Shares are subject to certain restrictions,
which restrictions relate to the passage of time as an employee of the Company and/or its
Affiliates. While such restrictions are in effect (such period, the “Restricted Period”), the Plan
Shares subject to such restrictions shall be referred to herein as “Restricted Shares.”

     2. Restrictions on Transfer. The Participant shall not sell, transfer, pledge,
hypothecate, assign or otherwise dispose of the Plan Shares, except as set forth in the Plan, this
Agreement or the Employment Agreement. Any attempted sale, transfer, pledge, hypothecation,
assignment or other disposition of the Plan Shares in violation of the Plan or this Agreement shall
be void and of no effect and the Company shall have the right to disregard the same on its books
and records and to issue “stop transfer” instructions to its transfer agent.

     3. Restricted Shares.

          3.1 Retention of Certificates. Promptly after the date of this Agreement, the Company
shall issue share certificates representing the Restricted Shares unless it elects to recognize
such ownership through book entry by the transfer agent. The share certificates shall be
registered in the Participant’s name and shall bear any legend required under the Plan. Such share
certificates shall be held in custody by the Company (or its designated agent) until the
restrictions thereon shall have lapsed. Upon the Company’s request, the Participant shall deliver
to the Company a duly signed share power, endorsed in blank, relating to the Restricted Shares. In
the event the Participant receives a share dividend on the Restricted Shares or the Plan Shares of
Restricted Shares are split or the Participant receives any other shares, securities, moneys or
property representing a dividend on the Restricted Shares (other than regular cash dividends on and
after the date of this Agreement) or representing a distribution or return of capital upon or in
respect of the Restricted Shares or any part thereof, or resulting from a split-up,
reclassification or other like changes of the Restricted Shares, or otherwise received in exchange
therefor, and any warrants, rights or options issued to the Participant in respect of the
Restricted Shares (collectively “RS Property”), the Participant will also immediately deposit with
and deliver to the

-1-

 

Company any of such RS Property, including any certificates representing shares duly endorsed
in blank or accompanied by share powers duly executed in blank, and such RS Property shall be
subject to the same restrictions, including that of this Section 3.1, as the Restricted Shares with
regard to which they are issued and shall herein be encompassed within the term “Restricted
Shares.”

          3.2 Rights with Regard to Restricted Shares. The Participant will have the right to
vote the Restricted Shares, to receive and retain all regular cash dividends payable to holders of
Plan Shares of record on and after the transfer of the Restricted Shares (although such dividends
shall be treated, to the extent required by applicable law, as additional compensation for tax
purposes if paid on Restricted Shares), and to exercise all other rights, powers and privileges of
a holder of Common Shares with respect to the Restricted Shares set forth in the Plan, with the
exceptions that: (i) the Participant will not be entitled to delivery of the share certificate or
certificates representing the Restricted Shares until the Restricted Period shall have expired;
(ii) the Company (or its designated agent) will retain custody of the share certificate or
certificates representing the Restricted Shares and the other RS Property during the Restricted
Period; (iii) no RS Property shall bear interest or be segregated in separate accounts during the
Restricted Period; and (iv) the Participant may not sell, assign, transfer, pledge, exchange,
encumber or dispose of the Restricted Shares during the Restricted Period, except as set forth in
the Plan, this Agreement or the Employment Agreement.

          3.3 Vesting. The Restricted Shares shall become vested and cease to be Restricted
Shares in installments as follows, provided that the Participant is continuously employed by the
Company or any of its Affiliates from the Grant Date until the applicable Vesting Date (as
specified below), unless provided otherwise in the Employment Agreement:

	 	 	 	 	 
	Percent of Total	 	 	 	 
	Grant Vested	 	Shares Vested	 	Vesting Date
	25%

	 	___
	 	First Anniversary of Grant Date
	50%

	 	___
	 	Second Anniversary of Grant Date
	75%

	 	___
	 	Third Anniversary of Grant Date
	100%

	 	___
	 	Fourth Anniversary of Grant Date

Notwithstanding the foregoing, upon consummation of a Change of Control (as defined in the
Employment Agreement), if the Participant is then employed by the Company in good standing and has
not given notice of resignation, all unvested Restricted Shares shall vest in accordance with the
terms of the Employment Agreement, if so provided by the Employment Agreement.

          3.4 Forfeiture. The Participant shall forfeit to the Company, without compensation,
other than repayment of the par value paid for such Plan Shares, any and all unvested Restricted
Shares (but no vested portion of the Plan Shares) and RS Property upon the Participant’s
Termination with the Company and its Affiliates for any reason.

-2-

 

          3.5 Section 83(b). If the Participant properly elects (as required by Section 83(b)
of the Code) within thirty (30) days after the issuance of the Restricted Shares to include in
gross income for federal income tax purposes in the year of issuance the fair market value of such
Plan Shares of Restricted Shares, the Participant shall pay to the Company or make arrangements
satisfactory to the Company to pay to the Company upon such election, any federal, state or local
taxes required to be withheld with respect to the Restricted Shares. If the Participant shall fail
to make such payment, or otherwise make arrangements satisfactory to the Company to pay to the
Company, upon election, any federal state or local taxes required to be withheld, the Company
shall, to the extent permitted by law, have the right to deduct from any payment of any kind
otherwise due to the Participant any federal, state or local taxes of any kind required by law to
be withheld with respect to the Restricted Shares. The Participant acknowledges that it is his or
her sole responsibility, and not the Company’s, to file timely and properly the election under
Section 83(b) of the Code and any corresponding provisions of state tax laws if he or she elects to
utilize such election.

          3.6 Delivery Delay. The delivery of any certificate representing the Restricted
Shares or other RS Property may be postponed by the Company for such period as may be required for
it to comply with any applicable federal or state securities law, or any national securities
exchange listing requirements and the Company is not obligated to issue or deliver any securities
if, in the opinion of counsel for the Company, the issuance of such Plan Shares shall constitute a
violation by the Participant or the Company of any provisions of any law or of any regulations of
any governmental authority or any national securities exchange.

          3.7 Withholding. Participant acknowledges that the Restricted Shares is subject to
applicable withholding as described in Section 10(e) of the Plan.

     4. Not an Employment Agreement. The issuance of the Plan Shares hereunder does not
constitute an agreement by the Company to continue to employ the Participant during the entire, or
any portion of the, term of this Agreement, including but not limited to any period during which
the Restricted Shares is outstanding.

     5. Power of Attorney. The Company, its successors and assigns, is hereby appointed
the attorney-in-fact, with full power of substitution, of the Participant for the purpose of
carrying out the Company’s rights and obligations with respect to the Restricted Shares and RS
Property under the provisions of this Agreement and taking any action and executing any instruments
which such attorney-in-fact may deem necessary or advisable to accomplish the purposes thereof,
which appointment as attorney-in-fact is irrevocable and coupled with an interest. The Company, as
attorney-in-fact for the Participant, may in the name and stead of the Participant, make and
execute all conveyances, assignments and transfers of the Restricted Shares and RS Property
provided for herein, and the Participant hereby ratifies and confirms all that the Company, as said
attorney-in-fact, shall do by virtue hereof. Nevertheless, the Participant shall, if so requested
by the Company, execute and deliver to the Company all such instruments as may, in the judgment of
the Company, be advisable for the purpose.

-3-

 

     6. Miscellaneous.

          6.1 This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, legal representatives, successors and assigns.

          6.2 Notwithstanding those powers granted the Company pursuant to Section 5 hereof, no
modification or waiver of any of the provisions of this Agreement shall be effective unless agreed
upon, reflected in writing and signed by the parties to this Agreement.

          6.3 This Agreement may be executed in one or more counterparts, all of which taken together
shall constitute one contract.

          6.4 The failure of any party hereto at any time to require performance by another party of any
provision of this Agreement shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this Agreement shall not
be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any right under this Agreement.

          6.5 The headings of the sections of this Agreement have been inserted for convenience of
reference only and shall in no way restrict or modify any of the terms or provisions hereof.

          6.6 All notices, consents, requests, approvals, instructions and other communications provided
for herein shall be in writing and validly given or made when delivered, or on the second
succeeding business day after being mailed by registered or certified mail, whichever is earlier,
to the persons entitled or required to receive the same, at the addresses set forth at the heading
of this Agreement or to such other address as either party may designate by like notice. Notices
to the Company shall be addressed to the General Counsel of the Company.

          6.7 This Agreement and the award hereunder are subject to all the restrictions, terms and
provisions of the Plan which are incorporated herein by reference. In the event of an
inconsistency between any provision of the Plan and this Agreement, the terms of the Plan shall
control. The capitalized terms in this Agreement that are not otherwise defined shall have the
same meaning as set forth in the Plan. The Participant and the Company each acknowledges that this
Agreement (together with the Plan and the other agreements referred to herein and therein)
constitutes the entire agreement and supersedes all other agreements and understandings, both
written and oral, among the parties or either of them, with respect to the subject matter hereof;
provided, however, that the Employment Agreement shall control in the event of any conflict between
the Employment Agreement and this Agreement.

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

UNITED AMERICA INDEMNITY, LTD.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

Title:
	 	 
	 	 	 	 

Larry A. Frakes
	 	 
	 

	 	 	 	 	 	 	 	 	 	 

-4-exv10w20

 

EXHIBIT 10.20

LICENSE AND COLLABORATION AGREEMENT

dated as of November 7, 2007

by and between

Amicus Therapeutics, Inc.

and

Shire Pharmaceuticals Ireland Ltd.

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 GRANT OF RIGHTS
	 	 	11	 
	 
	 	 	 	 
	2.1 Amicus Grant
	 	 	11	 
	2.2 Sublicenses
	 	 	12	 
	2.3 Exchange of Data and Know-How
	 	 	13	 
	2.4 [***]
	 	 	13	 
	2.5 No Implied Licenses
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 3 GOVERNANCE
	 	 	14	 
	 
	 	 	 	 
	3.1 Joint Steering Committee
	 	 	14	 
	3.2 Joint Development Committee
	 	 	15	 
	3.3 Joint Commercialization Committee
	 	 	16	 
	3.4 Special Committees and Sub-Committees; Financial Procedures
	 	 	16	 
	3.5 Committee Membership, Decision-Making and Operations
	 	 	17	 
	3.6 Alliance Managers
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 4 DEVELOPMENT
	 	 	19	 
	 
	 	 	 	 
	4.1 Overall Efforts in Development
	 	 	19	 
	4.2 Development Plans
	 	 	19	 
	4.3 Post-Marketing Studies; Monitoring of Independent Trials
	 	 	21	 
	4.4 Subcontractors
	 	 	22	 
	4.5 Combination Products
	 	 	22	 
	4.6 Term of Ongoing Development and Committee Obligations
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 5 COMMERCIALIZATION in the Shire Territory
	 	 	23	 
	 
	 	 	 	 
	5.1 General
	 	 	23	 
	5.2 Diligence
	 	 	23	 
	5.3 Territory Compliance
	 	 	23	 
	5.4 Bundling
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 6 CERTAIN OTHER ACTIVITIES
	 	 	23	 
	 
	 	 	 	 
	6.1 Label Expansions and New Formulations within the Field
	 	 	23	 
	6.2 [***] for [***]’s
	 	 	28	 
	6.3 Related Products
	 	 	30	 
	6.4 Termination by JSC; Back-Up Compounds
	 	 	31	 
	6.5 Additional Terms Regarding Related Product/Back-Up Compound Opt-In Rights
	 	 	35	 
	6.6 Independent Development and Commercialization of Related Products
	 	 	36	 
	6.7 Reservation
	 	 	36	 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-i-

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 7 PAYMENTS, ROYALTIES AND THE SHARING OF DEVELOPMENT COSTS
	 	 	37	 
	 
	 	 	 	 
	7.1 License Fee
	 	 	37	 
	7.2 Milestone Payments
	 	 	37	 
	7.3 Royalties
	 	 	39	 
	7.4 Development Cost Sharing
	 	 	43	 
	7.5 Payments under Existing In-Licenses
	 	 	44	 
	7.6 Other Payment Terms
	 	 	45	 
	7.7 Taxes
	 	 	45	 
	7.8 Records Retention; Audits
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 8 MANUFACTURING AND SUPPLY
	 	 	47	 
	 
	 	 	 	 
	8.1 General
	 	 	47	 
	8.2 Supply Agreement
	 	 	48	 
	8.3 Limitation; Manufacturing by Shire
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 9 REGULATORY MATTERS
	 	 	48	 
	 
	 	 	 	 
	9.1 Regulatory Responsibilities
	 	 	48	 
	9.2 Filings and Meetings with Regulatory Authorities.
	 	 	49	 
	9.3 Adverse Events and Post-Market Surveillance
	 	 	49	 
	9.4 Common Registration Dossier
	 	 	50	 
	9.5 Regulatory Inspections
	 	 	50	 
	9.6 Audit Rights
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 10 INTELLECTUAL PROPERTY
	 	 	51	 
	 
	 	 	 	 
	10.1 Ownership
	 	 	51	 
	10.2 Patent Filing, Prosecution, and Maintenance
	 	 	52	 
	10.3 Enforcement Against Third Parties
	 	 	53	 
	10.4 Defense of Infringement Claims
	 	 	54	 
	10.5 Patent Marking
	 	 	55	 
	10.6 License of Third Party Rights.
	 	 	55	 
	 
	 	 	 	 
	ARTICLE 11 TRADEMARKS AND COPYRIGHTS
	 	 	56	 
	 
	 	 	 	 
	11.1 Product Marks
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 12 REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	57	 
	 
	 	 	 	 
	12.1 Mutual Representations, Warranties and Covenants
	 	 	57	 
	12.2 Amicus Additional Representations, Warranties and Covenants
	 	 	59	 
	12.3 Disclaimer
	 	 	63	 
	 
	 	 	 	 
	ARTICLE 13 INDEMNIFICATION; INSURANCE
	 	 	63	 
	 
	 	 	 	 
	13.1 Indemnification of Shire
	 	 	63	 
	13.2 Indemnification of Amicus
	 	 	63	 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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	 	 	Page	 
	13.3 Procedure
	 	 	64	 
	13.4 Insurance
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 14 CONFIDENTIALITY
	 	 	64	 
	 
	 	 	 	 
	14.1 Confidentiality; Exceptions
	 	 	64	 
	14.2 Authorized Disclosure
	 	 	65	 
	14.3 Termination of Prior Agreement
	 	 	65	 
	14.4 Disclosure of Terms
	 	 	66	 
	14.5 Publications
	 	 	66	 
	14.6 Press Releases and Announcements
	 	 	66	 
	 
	 	 	 	 
	ARTICLE 15 TERM AND TERMINATION
	 	 	67	 
	 
	 	 	 	 
	15.1 Term
	 	 	67	 
	15.2 Termination for Breach
	 	 	67	 
	15.3 Termination by Shire
	 	 	67	 
	15.4 Termination for Bankruptcy
	 	 	68	 
	15.5 Effects of Expiration or Termination
	 	 	68	 
	15.6 Survival
	 	 	72	 
	 
	 	 	 	 
	ARTICLE 16 GENERAL PROVISIONS
	 	 	72	 
	 
	 	 	 	 
	16.1 Assignment
	 	 	72	 
	16.2 Independent Contractors
	 	 	73	 
	16.3 Third Party Beneficiaries
	 	 	73	 
	16.4 Waiver
	 	 	73	 
	16.5 Force Majeure
	 	 	73	 
	16.6 Severability
	 	 	73	 
	16.7 Governing Law; Dispute Resolution
	 	 	73	 
	16.8 Arbitration for Committee Disputes and Certain Other Disputes
	 	 	73	 
	16.9 Construction
	 	 	75	 
	16.10 Notices
	 	 	75	 
	16.11 Amendment
	 	 	76	 
	16.12 Entire Agreement
	 	 	76	 
	16.13 Execution in Counterparts; Facsimile Signatures
	 	 	76	 
	16.14 Provisions of Existing In-Licenses
	 	 	76	 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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EXECUTION COPY

LICENSE AND COLLABORATION AGREEMENT

     This License and Collaboration Agreement (this “Agreement”) is made as of November 7, 2007
(the “Effective Date”), by and between Amicus Therapeutics, Inc., a Delaware corporation
(“Amicus”), and Shire Pharmaceuticals Ireland Ltd., a corporation organized under the laws of
Ireland (“Shire” and each of Amicus and Shire, a “Party”).

BACKGROUND

     A. Amicus has developed a platform for the treatment of human genetic diseases comprising the
use of small molecule drugs, referred to as pharmacological chaperones, which selectively bind to
an active site of a target protein, thereby enhancing the protein’s stability and ability to fold
into the correct three-dimensional shape, to restore proper biological activity of the target
protein. Amicus currently is conducting human clinical trials on three products containing such
pharmacological chaperone compounds, which Amicus refers to as PliceraTM, AmigalTM and AT2220.

     B. Shire is an established pharmaceutical company which focuses its experience and expertise
in the development and commercialization of pharmaceutical products in select areas, including
among them, human genetic disorders.

     C. Shire desires to acquire rights to the Licensed Products for commercialization outside the
United States, and to collaborate with Amicus in the further Development of such Licensed Products,
all on the terms and conditions set forth below in this Agreement.

     Now, therefore, in consideration of the foregoing premises and the mutual covenants herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

ARTICLE 1

DEFINITIONS

     In addition to terms defined elsewhere in this Agreement, the following terms shall have the
respective meanings set out below, and grammatical variations of such terms shall have
corresponding meanings.

     1.1 “Affiliate” means, with respect to a Party, any person, corporation or other entity which,
directly or indirectly through one or more intermediaries, controls, is controlled by or is under
common control with such Party, as the case may be. As used in this Section 1.1, “control” shall
mean: (a) direct or indirect beneficial ownership of at least fifty percent (50%) (or such lesser
percentage which is the maximum allowed to be owned by a foreign corporation in a particular
jurisdiction) of the voting stock or other ownership interest in such person, corporation or other
entity; or (b) to possess, directly or indirectly, the power to affirmatively direct the management
and

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

policies of such person, corporation or other entity, whether through ownership of voting
stock or other ownership interest or by contract relating to voting rights or corporate governance.

     1.2 “Amicus IP” shall mean the Amicus Know-How and Amicus Patent Rights, defined as follows:

          1.2.1 “Amicus Know-How” means Know-How Controlled by Amicus as of the Effective Date or during
the Term, and that is necessary, useful or actually used by Amicus to Develop, Manufacture or
Commercialize Licensed Products in the Field.

          1.2.2 “Amicus Patent Rights” means those Patent Rights listed on Appendix 1 and any
and all other Patent Rights Controlled by Amicus during the Term that are necessary, useful or
actually practiced by Amicus, to Develop, Manufacture or Commercialize a Licensed Product in the
Field. Appendix 1 shall be updated from time to time as requested by either Party to
reflect all additional Patent Rights within the Amicus Patent Rights.

     1.3 “Commercialization” or “Commercialize” means activities directed to marketing,
advertising, promoting, detailing, distributing, importing or selling a product, including
Post-Marketing Studies, Manufacture of commercial supplies and education, planning, product support
and medical efforts related to a product. For clarity, Manufacturing process development, scale-up
and validation of Manufacturing with respect to a Licensed Product prior to the first Regulatory
Approval in a Primary Market for such Licensed Product (or in connection with establishing second
source manufacturers or manufacturing sites) shall not be deemed Commercialization and shall
instead be considered Development (unless and to the extent, in the case of validation batches,
such batches are used as commercial supplies), while further process development, scale-up and/or
validation of Manufacturing after the first Regulatory Approval in a Primary Market for such
Licensed Product shall be included within Commercialization.

     1.4 “Commercially Reasonable Efforts” means, with respect to a Party, the efforts and
resources which would be used by that Party relating to a certain activity or activities,
consistent with its normal business practices for a product at a similar stage in its development
and of similar market potential in a field of the biopharmaceutical industry of similar size as the
Field that such Party is seeking to Develop and Commercialize in a reasonably expeditious manner.

     1.5 “Compound” means the following chemical entities:

          1.5.1 deoxygalactonojirimycin having the structure shown in Exhibit 1.5.1, and any
[***] thereof (“Deoxygalactonojirimycin” or “DGJ”);

          1.5.2 deoxynojirimycin having the structure shown in Exhibit 1.5.2, and any [***]
thereof (“Deoxynojirimycin” or “DNJ”);

          1.5.3 isofagomine having the structure shown in Exhibit 1.5.3, and any enantiomers,
[***] thereof (“Isofagomine” or “[***]”); and

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          1.5.4 any other chemical entity that the Parties agree to add as a Compound under Section 6.3
or 6.4.4 below. If the Parties agree to add an additional Compound as described in this Section
1.5.4, the Parties shall attach to this Agreement an Exhibit 1.5.x, describing the chemical
structure of such compound, it being understood that only the chemical entity so described, plus
enantiomers, metabolites, salts and polymorphs thereof, shall be deemed so added as a Compound.

     As used in this Agreement, any reference to a Compound shall be deemed to include enantiomers,
metabolites, salts and polymorphs thereof.

     1.6 “Controlled” means, with respect to any intellectual property right or other intangible
property, the possession by license or ownership by a Party (or by an Affiliate (a) of such Party
as of the Effective Date, (b) controlled, as defined in Section 1.1 above, by such Party or such an
Affiliate, or (c) that first becomes an Affiliate after the Effective Date and is involved in the
Development of the Compounds) of the ability to grant to the other Party access or a license or
sublicense as provided herein without violating the terms of any written contract with any Third
Party.

     1.7 “Data” means any and all (a) research data, pharmacology data, chemistry, manufacturing
and control data, preclinical data, clinical data and other similar technical and scientific data
necessary, useful or actually used in the Development or Manufacture of Licensed Products within
the Field or otherwise generated under the Development Plans and (b) all documentation and
correspondence submitted, or required to be submitted, to a Regulatory Authority, or received from
a Regulatory Authority, in connection with a Regulatory Approval for a Licensed Product within the
Field in any country, including, without limitation, information in any drug master files or
similar documentation.

     1.8 “Development” means all activities related to (a) researching or developing a Licensed
Product, or obtaining Regulatory Approvals for such products or indications (including Label
Expansions and New Formulations within the Field pursuant to Section 6.1) in the Territory,
including preclinical testing, toxicology, formulation, clinical trials, and regulatory affairs, as
well as (b) Phase IV Clinical Trials and preclinical studies conducted after Regulatory Approval
(such as carcinogenicity studies, preclinical studies to establish pediatric dosing and the like)
that are required or requested by a Regulatory Authority to be conducted after Regulatory Approval,
as a condition of or in connection with obtaining such Regulatory Approval. Development shall also
include Manufacturing activities for the purposes of producing clinical supplies (or materials used
in preclinical testing or research), as well as Manufacturing scale up, process development and validation for such a product prior the first Regulatory Approval of such a product in the
first Primary Market (including manufacturing batches for validation and registration purposes, to
the extent such batches are not used as commercial supplies) and the establishment of second source
manufacturers or manufacturing sites. Development shall not include Manufacture of commercial
supplies or Commercialization. As used herein “Develop” shall also include such activities with
respect to a Compound, Related Product or Back-Up Compound.

     1.9 “Development Costs” means, except as otherwise expressly provided in this Agreement, the
internal and external costs incurred by a Party or a Subsidiary in performing

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Development activities in accordance with the applicable Development Plan, including, (a)
costs of clinical trials for Licensed Products in the Field and related clinical trial materials,
(b) costs of non-clinical studies and related study materials, (c) costs associated with preparing
and submitting Regulatory Filings to obtain, maintain and/or expand Regulatory Approval of Licensed
Products in the Field, (d) costs associated with establishing and validating Manufacturing
facilities (including process development and optimization of Manufacturing processes) to
Manufacture Licensed Products in the Field and (e) such other amounts as reflected in such
Development Plan. For such purposes, costs for a Party’s personnel performing the Development
Plans shall, unless otherwise determined by the JSC and reflected in the applicable Development
Plan, be calculated on the basis of the FTE Rate. Any dispute regarding Development Costs shall be
referred to the JDC for resolution in accordance with the terms and conditions of this Agreement.

     1.10 “EMEA” means the European Medicines Agency or any successor agency with responsibility
for regulating the development, manufacture and sale of human pharmaceutical products in the
European Union.

     1.11 “[***]” means a meeting held with the responsible Party and the Regulatory Authority of a
Primary Market Country to review the data and results of the Phase II Clinical Trials of a Licensed
Product and to discuss with the Regulatory Authority such Party’s plan to commence a Phase III
Clinical Trial of such Licensed Product and plans to complete additional work (e.g., preclinical
testing and manufacturing) in support of a future license application.

     1.12 “Ex-U.S. Platform Patent Rights” means those Amicus Patent Rights listed on Appendix
2.

     1.13 “European Union” means Austria, Belgium, Bulgaria, the Czech Republic, Cyprus, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United
Kingdom.

     1.14 “FDA” means the United States Food and Drug Administration and any successor thereto.

     1.15 “Field” means the diagnosis, treatment and/or prevention of (a) Gaucher Disease, Fabry
Disease or Pompe Disease, (b) to the extent the Parties mutually agree, in accordance with Section
6.1.5 below, to include an additional indication beyond those described in (a) above, such
additional indication and (c) if Shire duly exercises the [***]‘s Option, then with respect to
[***] for [***]’s (but only [***] for [***]’s), [***]’s.

     1.16 “First Commercial Sale” means the first bona fide commercial sale of a Licensed Product
for use in the Field within a country in the Territory following issuance of all applicable
Regulatory Approvals required prior to commercial sale in such country.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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     1.17 “FTE Rate” means initially $[***] per FTE (i.e., a full-time equivalent person) per year,
subject to adjustment as follows: Commencing as of January 1, 2009, the FTE Rate shall increase on
January 1 of each year by the percentage increase in the Consumer Price Index, for All Urban
Consumers, as published by the U.S. Department of Labor, Bureau of Labor Statistics, since the last
such increase under this definition (or in the case of the first such increase, the Effective Date)
and such increase shall be effective for the then-current and all subsequent Development Plans
hereunder until further modified under this definition. Any dispute regarding adjustment of the
FTE Rate shall be referred to the JDC for resolution in accordance with the terms and conditions of
this Agreement.

     1.18 “[***] for [***]’s” means a pharmaceutical product containing [***], for the treatment or
prevention of [***]’s. It is understood that references herein to an [***] for [***]’s shall be
deemed limited to the use of such product only for the treatment and/or prevention of [***]’s, and
shall not include any other use of such product.

     1.19 “IND” means an Investigational New Drug Application filed with the FDA or the equivalent
application or filing necessary to commence clinical trials in a foreign jurisdiction, as
applicable.

     1.20 “Know-How” means all information, results and Data of any type, in any tangible or
intangible form pertaining to the Development, Manufacturing or Commercialization of Licensed
Products within the Field, including without limitation databases, ideas, discoveries, inventions,
trade secrets, practices, methods, tests, assays, techniques, specifications, processes,
formulations, formulae, knowledge, know-how, skill, experience, materials, including
pharmaceutical, chemical and biological materials, products and compositions, scientific, technical
or test data (including pharmacological, biological, chemical, biochemical, toxicological and
clinical test data), analytical and quality control data, stability data, studies, procedures,
drawings, plans, designs, diagrams, sketches, technology, documentation or descriptions.
Notwithstanding the foregoing, as used in this Agreement, “Know-How” (a) does not include Patent
Rights in the foregoing and (b) does not include methods, assays, materials, techniques, or other
items used or useful to perform drug discovery or research in the Field, to the extent such items are not reasonably necessary,
useful or used to perform clinical trials or Manufacturing of Licensed Products, preclinical
testing in support of such clinical trials and/or Manufacturing, or Commercialization of a Licensed
Product within the Field.

     1.21 “Licensed Product” means (a) Amigal, (b) AT2220, (c) Plicera and (d) any other
pharmaceutical formulation of a Compound developed under a Development Plan, or by Shire as an
Independent Project in accordance with Section 6.1 below or as part of a Combination Product in
accordance with Section 4.5, containing a Compound. For such purposes, and as otherwise used
herein:

          1.21.1 “Amigal” means that certain pharmaceutical product containing the active chemical
entity Deoxygalactonojirimycin, the formulation of which is described in IND number 68,456;

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          1.21.2 “AT2220” means that certain pharmaceutical product containing the active chemical
entity Deoxynojirimycin, the formulation of which is described in IND number 76,268; and

          1.21.3 “Plicera” means that certain pharmaceutical product containing the active chemical
entity Isofagomine the formulation of which is described in IND number 73,475.

     1.22 “MAA” means any marketing authorization application for a country or region, requesting
approval from the applicable Regulatory Authority for commercial sale of a Licensed Product in the
Field in such country or region, and all amendments and supplements filed to any such application.

     1.23 “Manufacture” means manufacturing and related activities, including chemical synthesis,
formulation, processing, testing, packaging, labeling, storing, warehousing, quality control,
quality assurance, releasing, disposing, handling, shipping and all other activities undertaken or
required to be undertaken in order to manufacture and supply a Compound or Licensed Product.

     1.24 “NDA” means a New Drug Application for any product, as appropriate, requesting permission
to place a drug on the market in accordance with 21 C.F.R. Part 314, and all supplements or
amendments filed pursuant to the requirements of the FDA, including all documents, data and other
information concerning a product which are reasonably necessary for FDA approval to market a
product in the United States.

     1.25 “Net Sales” means the gross amounts invoiced for sales of Licensed Products in the Shire
Territory by Shire, its Affiliates and/or its Sublicensees to Third Parties, less deductions for
the following costs actually allowed or incurred:

          1.25.1 freight, postage and transportation charges on shipment of such Licensed Product to the
customer, including handling and insurance on such shipment;

          1.25.2 sales (such as VAT or its equivalent) and excise taxes, other consumption taxes,
customs duties and other governmental charges imposed upon the sale of such Licensed Product to the
customer;

          1.25.3 charge-back payments, rebates, and similar product-specific payments paid to a
governmental entity specifically with respect to sales of Licensed Products under a governmental
rebate program;

          1.25.4 trade, quantity and cash discounts actually granted to the customer with respect to the
Licensed Product;

          1.25.5 credits, rebates and charge-backs, and allowances or credits to the customer on account
of damaged products, rejection or returns of Licensed Products or on account of retroactive price
reductions affecting such Licensed Product;

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          1.25.6 actual bad debt expense not to exceed [***] of gross amounts invoiced; and

          1.25.7 any item similar in character or substance to any of the foregoing prevailing at the
time and customary in the pharmaceutical industry at the time as determined by the JSC.

     Notwithstanding the foregoing, the amounts described in [***]. Sales among a Party and its
Affiliates or permitted Sublicensees for resale shall be excluded from the computation of Net
Sales; provided, however, that the subsequent resale shall be included in Net Sales hereunder. If
a Licensed Product is sold for consideration other than cash, the Net Sales from such sale or
transfer shall be deemed the then fair market value of such Licensed Product. For clarity, Net
Sales shall include sales of a Licensed Product made pursuant to a pre-license sale through a named
patient basis sales program or other special access sales program. The supply of Licensed Products
without charge (x) as commercial samples, (y) as charitable donations or (z) for use in Development
and Post-Marketing Studies shall be excluded from the computation of Net Sales.

     In the event that a Licensed Product is sold as part of a Combination Product in accordance
with Section 4.5, Net Sales from sales of such Combination Product shall be determined pursuant to
Section 4.5.

     1.26 “[***].

     1.27 “Patent Rights” means (a) all patents and patent applications (including provisional
applications), and all patents issuing thereon (including utility, model and design patents and
certificates of invention), (b) all reissue patents, patents of addition, divisions, renewals,
continuations, continuations-in-part, substitutions, extensions (including supplemental protection
certificates), registrations, confirmations, re-examinations and (c) foreign counterparts of any of
the foregoing.

     1.28 “Phase II Clinical Trial” means a human clinical trial of a Licensed Product conducted
for purposes of preliminary determination of efficacy and/or preliminary establishment of
appropriate dosage ranges for efficacy and safety in patients with the disease or condition being
studied and that would satisfy the requirements under 21 C.F.R. §312.21(b).

     1.29 “Phase III Clinical Trial” means a human clinical trial of a Licensed Product intended to
be a pivotal trial for obtaining Regulatory Approval or to otherwise establish safety and efficacy
in patients with the disease or condition being studied for purposes of filing an NDA with the FDA
or an MAA with the EMEA and that would satisfy the requirements under 21 C.F.R. §312.21(c).

     1.30 “Phase IV Clinical Trial” means a human clinical trial for a Licensed Product conducted
after receipt of Regulatory Approval in the country for which such trial is being conducted and
that is required or requested by a Regulatory Authority to be conducted after Regulatory Approval,
as a condition of or in connection with obtaining and maintaining such Regulatory Approval.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-7-

 

     1.31 “Post-Marketing Studies” means marketing studies, epidemiological studies, modeling and
pharmacoeconomic studies, investigator sponsored clinical trials and post-marketing surveillance
studies of a Licensed Product, other than Phase IV Clinical Trials, that are not intended for use
as a basis for obtaining Regulatory Approval (e.g., for a further indication, label expansion or
otherwise) with respect to such Licensed Product.

     1.32 “Primary Market” means any one or more of the following: United States, France, Germany,
Italy, Spain and the United Kingdom.

     1.33 “Product Marks” means the product-specific trademarks, logos, trade dress, or other
symbols which a Party uses to Commercialize a Licensed Product in its Territory, but excluding the
Amicus and Shire company names, tradenames, logos, trade dress and the like.

     1.34 “Regulatory Authority” means any federal, national, multinational, provincial, state or
local regulatory agency, department, bureau or other governmental entity, within a regulatory
jurisdiction in the Territory, with the authority to grant any approvals, licenses, registrations
or authorizations necessary for the Development, Manufacture, use, Commercialization or coverage
and reimbursement of a Licensed Product. For clarity, references in this Agreement to “Regulatory
Authority of a Primary Market Country” shall be deemed to include the EMEA.

     1.35 “Regulatory Approval” means, with respect to a particular country, all approvals
(including, without limitation, where applicable, pricing and reimbursement approval and schedule
classifications), licenses, registrations or authorizations by any Regulatory Authority necessary
for the Development, Manufacture, use, storage, import, transport, Commercialization or sale of a
Licensed Product in such country.

     1.36 “Regulatory Filings” means all documents filed with a Regulatory Authority, including
INDs, NDAs, MAAs, Drug Master Files and the like, as well as their counterparts in jurisdictions
other than the United States.

     1.37 “Related Agreement” means a Pharmacovigilance Agreement or other agreements entered into
by the Parties pursuant to or in connection with this Agreement.

     1.38 “Sole Invention” means either a Shire Invention or an Amicus Invention.

     1.39 “Sublicensee” shall mean a Third Party to whom Shire (or a Sublicensee) has granted a
right to make, use, sell, offer for sale, import or Commercialize a Licensed Product in the Shire
Territory pursuant to Section 2.2; and “Sublicense” shall mean an agreement or arrangement granting
such rights. As used in this Agreement, “Sublicensee” shall not include a wholesaler or reseller
of a Licensed Product who does not market or promote such Licensed Product.

     1.40 “Territory” means both the Amicus Territory and the Shire Territory, each as defined
below:

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-8-

 

          1.40.1 “Amicus Territory” means the United States of America, including the District of
Columbia and including all possessions, territories and protectorates thereof and shall include the
European Union with respect to a Licensed Product upon the reversion of the European Union with
respect to such Licensed Product in accordance with Section 7.2.5.

          1.40.2 “Shire Territory” means the entire world excluding the Amicus Territory.

     As used herein, the phrase “a Party’s Territory” or “such Party’s Territory” shall mean either
the Amicus Territory or the Shire Territory, as the context indicates.

     1.41 “Third Party” means any person or entity, including a governmental entity, other than
Amicus, Shire or their respective Affiliates.

     1.42 “Valid Claim” means a claim of a pending patent application or an issued and unexpired
patent, within the Amicus Patent Rights that has not been held unpatentable, invalid or
unenforceable by a court or other government agency of competent jurisdiction in an unappealed or
unappealable decision (provided, however, that if the holding of such court or agency is later
reversed by a court or agency with appropriate authority, the claim shall be reinstated as a Valid
Claim) and has not been admitted to be invalid or unenforceable through reissue, re-examination, disclaimer or otherwise nor lost in an interference proceeding. Notwithstanding the
foregoing, in the case of a pending but unissued patent application, a pending claim of such
application shall not be deemed a Valid Claim if more than three (3) years have elapsed since the
first priority date to which such claim takes priority; such claim shall thereafter not be deemed a
Valid Claim until such claim issues in a patent and otherwise meets this definition.

     1.43 The following terms have the meanings defined in the corresponding sections of this
Agreement referenced below:

	 	 	 	 	 	 	 
	Defined Term	 	Section	 	Defined Term	 	Section
	[***]
	 	7.2.4(e)	 	Manufacturing Cost	 	7.3.3(b)(ii)
	Acting Party
	 	10.2.5	 	Materials	 	8.1
	Alleged Infringement
	 	10.3.1	 	Milestone	 	7.2.3
	Alliance Manager
	 	3.6	 	MSSM	 	16.14
	Annual Net Sales
	 	7.3.1	 	MSSM Agreement	 	16.14
	Amicus Indemnitees
	 	13.2	 	New Formulation	 	6.1.1
	Amicus Invention
	 	10.1.2(a)	 	Non-Developing Party	 	6.1.2(b)
	Auditing Party
	 	7.8.2	 	Notice Date	 	15.5.2(a)(ii)
	Back-Up Compound
	 	6.4.4(a)	 	Notice Period	 	15.5.2(a)(ii)
	Back-Up Compound Notice
	 	6.4.4(b)	 	Offer	 	6.2.2(a)
	Back-Up Compound Opt In

Exercise Period
	 	6.4.4(c)	 	Opt-In Notice	 	6.1.3(a)
	Back-Up Compound Opt In
	 	6.4.4(a)	 	Opt-In Period	 	6.1.3(a)

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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	Right
	 	 	 	 	 	 
	Breach Notice
	 	15.2	 	Opt-In Right	 	6.1.3
	Business Day
	 	16.9	 	Shire Indemnitees	 	13.1
	[***]
	 	7.2.4	 	Shire Invention	 	10.1.2(a)
	Collaboration Results
Publication
	 	14.5	 	Shire IP	 	6.1.1(d)(ii)
	Combination Product
	 	4.5	 	[***]’s Option	 	6.2.1
	Commercializing Party
	 	10.6.2	 	[***]’s Option Exercise Fee	 	6.2.1(b)
	Committee
	 	3.4.1	 	[***]’s Option Notice	 	6.2.1(a)
	Committee Co-Chair
	 	3.5.4	 	[***]’s Option Period	 	6.2.1(a)
	Committee Dispute
	 	16.8.1	 	Permitted Overrun	 	7.4.2
	[***]
	 	7.2.4(d)	 	Pharmacovigilance Agreement	 	9.3
	Confidential Information
	 	14.1	 	Prosecuting Party	 	10.2.4
	Confidentiality Agreement
	 	14.3	 	prosecution and maintenance	 	10.2.6
	Cooperating Party
	 	14.6.2	 	Receiving Party	 	7.4.4(b)
	Developing Party
	 	6.1.1	 	Reimbursable Share	 	6.1.3(c)
	Development Period
	 	15.5.2(a)(ii)	 	Reimbursing Party	 	7.4.4(b)
	Development Plan
	 	4.2.1	 	Related Product	 	6.3.1
	Excess Costs
	 	7.4.2	 	Related Product Notice	 	6.3.1
	Existing In-Licenses
	 	10.6.1	 	Related Product-Opt In Period	 	6.3.2
	Force Majeure Event
	 	16.5	 	Related Product-Opt In Right	 	6.3.2
	Forecast
	 	4.2.1	 	Requesting Party	 	6.4.1
	Generic Competition
	 	7.3.2	 	Responding Party	 	7.8.2
	Generic Version
	 	7.3.2	 	Reverted Products	 	15.5.2(a)(i)
	Gross Margin
	 	7.3.3(b)(i)	 	RFR Acceptance	 	6.2.2(a)
	[***]
	 	2.2.2(b)	 	RFR Acceptance Period	 	6.2.2(a)
	Indemnitee
	 	13.3	 	Right of First Refusal	 	6.2.2
	Indemnitor
	 	13.3	 	Right of First Refusal Notice	 	6.2.2(a)
	Independent Development
Costs
	 	6.1.2(c)(ii)	 	[***]	 	7.2.4(e)
	Independent Project
	 	6.1.2(a)	 	[***]	 	2.4.1
	Independent Trial
	 	4.3.2	 	Secondary Country	 	7.2.5
	Initiating Party
	 	14.6.2	 	Special Committee	 	3.4.1
	[***]
	 	7.2.4(c)	 	Spending Party	 	7.4.2
	Inspected Party
	 	9.5	 	Statement of Costs	 	6.1.2(c)(i)
	JAMS
	 	16.8.1(b)	 	Sublicensing Party	 	10.6.2
	JCC
	 	3.3	 	[***]	 	7.2.4(a)

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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	JDC
	 	3.2	 	[***]	 	7.2.4(b)
	Joint Commercialization
Committee
	 	3.3	 	Supply Agreement	 	8.2
	Joint Development
Committee
	 	3.2	 	Target	 	6.3.1
	Joint Inventions
	 	10.1.2(a)	 	Term	 	15.1
	Joint Patent Rights
	 	10.2.3	 	Terminated Product	 	6.4.4(a)
	Joint Steering Committee
	 	3.1	 	Third Party Claim	 	13.1
	JSC
	 	3.1	 	Third Party Technology	 	10.6.2
	JSC Proposal Notice
	 	6.1.1	 	Trademark Licensee	 	11.1.3
	Label Expansion
	 	6.1.1	 	Trademark Licensor	 	11.1.3
	Laws
	 	16.9	 	[***]	 	2.4.3
	Liabilities
	 	13.1	 	[***]	 	15.5.2(a)(ii)
	Licensors
	 	10.6.1	 	Wind down Period	 	15.5.2(b)

ARTICLE 2

GRANT OF RIGHTS

     2.1 Amicus Grant. Subject to the terms and conditions of this Agreement, Amicus hereby grants to Shire, under
the Amicus IP:

          2.1.1 an exclusive license to use, import and sell or Commercialize Licensed Products in the
Field (excluding the treatment, prevention or diagnosis of Fabry Disease with Amigal) in the Shire
Territory, subject to Section 2.1.3;

          2.1.2 a sole license (with a right to sublicense) to use, import and sell or Commercialize
Amigal for the treatment, prevention or diagnosis of Fabry Disease in the Shire Territory, subject
to Section 2.1.3;

          2.1.3 a co-exclusive (with Amicus and its contractors or licensees) license to Manufacture the
Compounds and Licensed Products in the Territory for use, import, sale or Commercialization within
the Field in the Shire Territory (specifically subject to Section 8.3 below) and to Develop the
Licensed Products within the Field (specifically subject to Section 6.1 below); provided, that if a
Party (or any other entity acting under authority of such Party) proposes to perform clinical
trials of a Licensed Product for an indication in the Field in a country within the other Party’s
Territory, the conduct of such trial in such country shall be subject to such other Party’s
approval, not to be unreasonably withheld; and

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          2.1.4 the right to have the foregoing performed on its behalf by subcontractors in accordance
with Section 4.4.

     Shire agrees that neither it, nor any of its Affiliates, shall (a) practice the Amicus IP
other than as expressly authorized under this Article 2 if such actions would constitute an
infringement or misappropriation thereof nor (b) Develop or Commercialize in the Amicus Territory a
product containing a Compound, except as a Licensed Product in accordance with this Agreement.

     2.2 Sublicenses.

          2.2.1 Affiliates. Shire may grant to one or more of its Affiliates a Sublicense in
connection with Shire’s Development, Manufacture and/or Commercialization of the Compounds and
Licensed Products under this Agreement; provided that Shire shall remain responsible for the
activities of such Affiliate to the same extent as if such activities were conducted by Shire.

          2.2.2 Third Parties.

               (a) Shire may also grant to Third Parties a Sublicense under the rights granted to Shire under
Section 2.1 to one or more Licensed Products, to the extent not in conflict with Section 2.1 or
this Section 2.2.2.

               (b) Notwithstanding Paragraph (a) above, Shire may grant a Sublicense under this Section 2.2.2
(i) only to a Third Party that is not a “competitor of Amicus” and (ii) in a country where Shire or
an Affiliate of Shire has direct commercial operations in [***], only if Shire remains primarily
responsible for conducting Commercialization activities in such country. For such purposes, a
“competitor of Amicus” shall mean those companies listed on Appendix 3 or as appended
thereto upon the written agreement of the Parties.

          2.2.3 Conditions of Sublicenses. If Shire grants a Sublicense under its rights in
Section 2.1, such Sublicense shall be at least as protective of the Compounds and Licensed Products
as the terms and conditions of this Agreement. Shire shall remain responsible for the performance
of any of its Sublicensees under such rights, and shall remain responsible for any payments due
hereunder with respect to activities of the Sublicensee. Shire shall use Commercially Reasonable
Efforts to ensure that its Sublicensees perform at the same level as Shire is obligated to perform
hereunder and do not engage in activities that would be harmful to the Licensed Products or the
business related to the Licensed Products, and to take appropriate measures to remedy any failure
of a Sublicensee to comply with the foregoing. It is understood and agreed that, except as may be
otherwise agreed in writing by the Parties, Sublicensees shall have no rights with respect to the
Committees or with respect to the Development Plans, nor to exercise any provision of this
Agreement other than the exercise of their rights pursuant to Section 2.1 above. Upon request,
Shire shall provide to Amicus a copy of the Sublicense, provided that the agreement may be redacted
to the extent not necessary for Amicus to understand the scope and terms of such Sublicense. For
purposes of clarity, Shire shall have the right to redact all financial and other proprietary terms
with

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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respect to any Sublicense agreement provided to Amicus as required hereunder to the extent not
required to determine that such Sublicense complies with this Agreement.

     2.3 Exchange of Data and Know-How.

          2.3.1 By Amicus. Promptly following the Effective Date, Amicus will make available to
Shire, at no cost or expense to Shire, all Amicus Know-How necessary, useful or used to Develop
Licensed Products within the Field, including all Data for such Licensed Products within the Field
that Amicus has of the Effective Date.

          2.3.2 By Either Party. During the Term, Amicus shall provide to Shire additional
Amicus Know-How developed pursuant to activities under the Development Plans necessary, useful or
used to Develop Licensed Products within the Field, and Shire shall provide to Amicus any
Know-How Controlled by Shire and developed pursuant to activities under the Development Plans
necessary, useful or used to Develop the Licensed Products within the Field, in each case that has
not previously been provided hereunder, promptly upon request by the other Party. The Party
providing such Know-How shall provide the same in electronic form to the extent the same exists in
electronic form, and shall provide copies as reasonably requested or an opportunity for the other
Party to inspect (and copy) all other materials comprising such Know-How (including, for example,
original patient report forms and other original source data, to the extent allowable under Laws).
Except as expressly provided, neither Party shall be obligated under this Section 2.3.2 (or other
provisions requiring disclosure of Know-How hereunder) to provide to the other Party (a) any of the
providing Party’s Confidential Information that does not relate to a Licensed Product within the
Field, including competitive and marketing strategies generally applicable to the providing Party’s
products or (b) any information regarding Commercialization except as necessary to Develop or
Commercialize the Licensed Products.

          2.3.3 Provision of Data to JDC. Upon request by the JDC, each Party shall promptly
provide the JDC with summaries in reasonable detail of all Data generated or obtained in the course
of such Party’s performance of activities under the Development Plans.

          2.3.4 Level of Effort Required. Notwithstanding the foregoing, neither Party shall be
considered to be in breach of this Section 2.3 for failure to disclose information, if, despite
Commercially Reasonable Efforts, the identification of such information is impractical.

          2.3.5 Right to Use. Each Party shall have the right to use Know-How to be provided to
such Party under this Section 2.3, in connection with the Development and Commercialization of
Compounds and Licensed Products hereunder.

     2.4 [***]. [***]

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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     2.5 No Implied Licenses. No right or license under any either Party’s Know-How, Patent
Rights or other subject matter is granted or shall be deemed granted by implication, estoppel or
otherwise. All such rights or licenses are granted only as expressly provided in this Agreement
and the Related Agreements. Without limiting the foregoing, nothing herein shall be deemed to
grant to Shire a right or license to any active pharmaceutical ingredient other than the Compounds.

ARTICLE 3

GOVERNANCE

     3.1 Joint Steering Committee. Within thirty (30) days following the Effective Date, the
Parties shall establish a Joint Steering Committee (the “Joint Steering Committee” or “JSC”). The
JSC shall have the duties described in Section 3.1.1 below.

          3.1.1 Duties. The Joint Steering Committee shall:

               (a) review and approve the Development Plans, and any material changes thereto as shall be
submitted by the JDC to the JSC for approval;

               (b) determine whether to terminate the joint Development of one or more Licensed Products
pursuant to Section 6.4 below;

               (c) determine actions necessary to prevent importation or sales of Licensed Products sold by a
Party into the other Party’s Territory by a Third Party (e.g. determination that neither Party may
sell to such Third Party);

               (d) resolve any matters submitted to the JSC by the JDC in accordance with Section 16.8 below;
and

               (e) perform such other duties as are specifically assigned to the JSC in this Agreement.

          3.1.2 Additional Activities. In addition, at the meetings of the JSC, the Parties
will discuss the following matters as reasonably requested by either Committee Co-chair of the JSC:

               (a) strategic direction for the Development, Manufacturing and Commercialization of Licensed
Products;

               (b) the progress of the Parties in executing the Development Plans; and

               (c) any other matters pertaining to Development, Manufacturing and Commercialization of
Licensed Products in the Field in the Territory, and the collaboration between the Parties.
However, it is understood that the decision-making authority of the JSC is limited to those matters
described in Section 3.1.1 above.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-14-

 

     3.2 Joint Development Committee. The Parties shall form a Joint Development Committee (the “Joint Development Committee” or
“JDC”), no later than thirty (30) days following the Effective Date. The JDC shall have the duties
described in Section 3.2.1 below.

          3.2.1 Duties. The Joint Development Committee shall:

               (a) propose revisions to the Development Plans as needed, but no less frequently than
annually;

               (b) propose supplements or revisions to the applicable Development Plans with respect to Label
Expansions and New Formulations and submit the same to the JSC for approval;

               (c) review and approve clinical protocols for Licensed Products within the Field under the
Development Plans;

               (d) review and finalize the common registration dossier for each Licensed Product generated
under a Development Plan;

               (e) monitor the progress of the activities undertaken by each of the Parties pursuant to each
Development Plan (including review of the conduct of clinical trials conducted by each Party
pursuant to a Development Plan);

               (f) monitor the rate of spending pursuant to activities under a Development Plan against the
budget for such activities in the Development Plan; and

               (g) perform such other duties as are specifically assigned to the JDC in this Agreement.

          3.2.2 Additional Activities. In addition, at the meetings of the JDC, the Parties
will discuss the following matters as reasonably requested by either Committee Co-Chair of the JDC:

               (a) the progress of the activities undertaken by the Parties pursuant to each Development Plan
in relation to the corresponding budgets and timelines;

               (b) the flow of information with respect to Development of the Licensed Products within the
Field;

               (c) the overall strategy for all material filings with applicable Regulatory Authorities in
the Primary Markets with respect to the Licensed Products in the Field in the Shire Territory, in
accordance with the Development Plans, as well as regulatory strategy for Licensed Products in the
Field in Japan;

               (d) the Parties’ scientific presentation and publication strategy relating to Licensed
Products within the Field pursuant to Section 14.5 below, until such time as the JCC is

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED.

-15-

 

formed pursuant to Section 3.3 below, at which time such matters shall be deemed to be within
the duties of the JCC under Section 3.3.1 below;

               (e) impact of operational activities related to Manufacturing, (for example, forecast
development, growth, changes, variances, manufacturing process improvements, equipment/new facility
introduction, capacity improvements, cycle time and lead time reduction, improvement in shelf life,
inventory management, complaints, and in-market quality/performance reports); and

               (f) any other matters pertaining to Development of Licensed Products in the Field. However,
it is understood that the decision-making authority of the JDC is limited to those matters
described in Section 3.2.1 above.

               3.3 Joint Commercialization Committee. The Parties shall form a Joint Commercialization
Committee (the “Joint Commercialization Committee” or “JCC”), no later than thirty days following
the Initiation of the First Phase III Clinical Trial for a Licensed Product.

          3.3.1 Duties. The Joint Commercialization Committee shall serve as a forum for
communication regarding Commercialization activities and shall discuss and review the following:

               (a) any Post-Marketing Studies proposed to be conducted by either Party;

               (b) coordination of global branding to the extent practicable;

               (c) promotional and other Commercialization activities of the Parties under this Agreement in
the Amicus Territory and the Shire Territory, including pre-launch and post-launch activities;

               (d) proposed Product Marks and branding strategy;

               (e) coordination of the participation of physicians who are key opinion leaders during
Development and Commercialization to achieve consistent messaging and collaboration in connection
with conferences and other marketing activities, provided, however, that each Party shall have
control over Commercialization of Licensed Products in the Field in its respective Territory; and

               (f) such other matters as appropriate to further the purposes of this Agreement as determined
by the Joint Steering Committee.

     For clarity, it is understood that the purpose of the JCC is to promote communication and
coordination regarding the foregoing matters and that the JCC shall not have decision making
authority.

     3.4 Special Committees and Sub-Committees; Financial Procedures.

     [***] INDICATES MATERIAL THAT
HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL
HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-16-

 

          3.4.1 Special Committees and Sub-Committees. The JSC may from time to time establish
one or more special committees (each, a “Special Committee”), each such Special Committee to
consist of an equal number of representatives of each Party as determined by the JSC, to perform
certain duties and exercise certain powers of the JSC as expressly delegated by the JSC to such
Special Committee. For example, it is understood that, from time to time, the JSC may establish
one or more Special Committees to coordinate intellectual property matters in accordance with
Article 10 below (it being understood such Special Committee shall be for communication purposes
and shall not have decision making authority). Each of the JSC, JDC, JCC and any such Special
Committee is referred to herein as a “Committee.” Each Committee may from time to time establish
sub-committees to handle matters within the scope of its authority hereunder.

          3.4.2 Certain Financial Procedures. In addition, the JSC may establish a Special
Committee to approve procedures, formats and timelines consistent with this Agreement for reporting
financial data and monitoring financial performance under this Agreement; and if the Parties, or
such Special Committee, as applicable, are unable to agree upon any such procedures, formats or
timelines, the matter shall be resolved as a Committee Dispute in accordance with the provisions of
Section 16.8 below.

3.5 Committee Membership, Decision-Making and Operations. 

          3.5.1 Membership of Committees. Each Committee shall be composed of an equal number
of representatives from each of Amicus and Shire. Unless the Parties otherwise agree, the number
of representatives for each of Amicus and Shire shall be: (a) with respect to the JSC, three (3)
representatives, (b) with respect to the JDC, three (3) representatives and (c) with respect to the
JCC, three (3) representatives, and each of the above with ad hoc members as deemed necessary by
the relevant committee. At least one representative of each Party on the JDC and JCC will be at
the vice president level or above. All representatives of each Party on the JSC will be at the
vice president level or above, subject to the next sentence, and at least one representative of
each Party on the JSC will be at the senior vice president (or its equivalent) level or above. In
addition, each Party’s Alliance Manager will serve on the JSC, JDC and JCC in a nonvoting capacity.
Each Party may replace any of its representatives on a Committee at any time upon written notice
to the other Party, provided that such replacement is of comparable standing and authority within
that Party’s organization as the person he or she is replacing.

          3.5.2 Committee Meetings. Each Committee shall hold regularly scheduled meetings at
such times as it elects to do so, provided, however, that (a) the JSC shall meet at least twice
every calendar year, (b) the JDC shall meet at least once every calendar quarter, unless the
respective Committee members otherwise agree and (c) the JCC shall meet at least twice every
calendar year. Each Party may also call for special meetings to resolve particular matters
requested by such Party. The applicable Committee Co-Chair shall provide Committee members no less
than
fifteen (15) Business Days’ notice of each regularly scheduled meeting, and no less than ten
(10) Business Days’ notice, or such shorter time period as a Committee Co-Chair deems appropriate
under the circumstances, but in no event less than two (2) Business Days’ notice, of any special

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-17-

 

meetings called by either Party. Meetings may be held by audio or video teleconference with the
consent of each Party, which shall not be unreasonably withheld, provided that unless otherwise
agreed at least two (2) of the meetings of each of the JSC and JDC per calendar year shall be held
in person. Locations for meetings held in person shall alternate between Amicus’ facilities in
Cranbury, New Jersey, and Shire’s facilities in Cambridge, Massachusetts, or at such other
locations as the Parties may otherwise agree. A reasonable number of other employees of each Party
involved in the Development, Manufacture or Commercialization of Licensed Products may attend
Committee meetings as nonvoting participants with the approval of the respective Committee, and,
with the consent of each Committee Co-Chair, which consent shall not be unreasonably withheld, a
reasonable number of consultants, representatives or advisors involved in the Development,
Manufacture or Commercialization of Licensed Products may attend Committee meetings as nonvoting
observers, provided that such consultants, representatives and advisors are under obligations of
confidentiality and non-use applicable to the Confidential Information of each Party that are at
least as stringent as those set forth in Article 14. Each Party shall be responsible for all of
its own expenses of participating in the JSC, JDC, JCC and any Special Committee.

          3.5.3 Decision-Making and Dispute Resolution. Decisions of each Committee shall be
made at a duly called meeting of the applicable Committee. Shire’s members of each Committee shall
collectively have one (1) vote and Amicus’ members of each Committee shall collectively have one
(1) vote, with decisions made by unanimous vote (assuming a quorum of at least two (2)
representative members from each Party, and with each Party’s vote being cast by such Party’s
Committee Co-Chair of the relevant Committee). Each Committee may act on a specific issue without
a meeting if it is documented in a written consent signed by each of the Co-Chairs of the
applicable Committee from each Party. Notwithstanding anything herein to the contrary, no
Committee shall have authority to amend, modify or waive compliance with this Agreement or the
Related Agreements. If a Committee fails to reach consensus on an issue specifically designated in
this Agreement for its decision, the matter shall be resolved under the procedures set forth in
Section 16.8.

          3.5.4 Committee Co-Chairs. Each calendar year, each Party shall appoint one of its
representatives on each Committee to co-chair meetings of such Committee (the “Committee
Co-Chair”). For each Committee, the Committee Co-Chairs shall coordinate and prepare the agenda,
ensure the orderly conduct of meetings and prepare and issue minutes of each meeting within thirty
(30) days thereafter. Such minutes will not be finalized until the Committee Co-Chair from each
Party have reviewed and confirmed the accuracy of such minutes in writing. The Committee Co-Chairs
will solicit agenda items from the members of the applicable Committee and provide an agenda along
with appropriate information for such agenda reasonably in advance of each meeting. It is
understood that such agenda will include all items requested by either Committee Co-chair for
inclusion therein.

          3.5.5 Reports. In addition, subject to the foregoing, each Party shall keep the other
Party (through the relevant Committees) informed of Development, Manufacturing and
Commercialization activities pertaining to Licensed Products in the Field in the applicable
Territory

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-18-

 

by such Party, including by providing regular reports to the relevant Committees
summarizing such activities, and such other information as the other Party may reasonably request
from time to time.

     3.6 Alliance Managers.  Within thirty (30) days following the Effective Date, each Party
shall appoint a representative (an “Alliance Manager”), who will be at the director (or its
equivalent) level or above, to facilitate communications between the Parties and to act as a
liaison between the Parties with respect to such matters as the Parties may mutually agree in order
to maximize the efficiency of the collaboration. Each Party may replace its Alliance Manager with
an alternative representative satisfying the requirements of this Section 3.6 at any time with
prior written notice to the other Party.

ARTICLE 4

DEVELOPMENT

     4.1 Overall Efforts in Development.  Amicus and Shire shall establish and implement the
Development Plans in a prompt and expeditious manner with respect to each Licensed Product within
the Field, and in a manner that harmonizes the Development of Licensed Products within the Field
towards (a) a common registration dossier as a basis for license applications in the Primary
Markets and, to the extent described in Section 4.2.5(e) below, Japan, and (b) Regulatory Approval
for such Licensed Product in each of the Primary Markets. The Parties shall use Commercially
Reasonable Efforts to ensure that each Development Plan provides at all times for adequate
resources to achieve such result in an expeditious and efficient manner.

     4.2 Development Plans. 

          4.2.1 General. The JDC shall establish a rolling three (3) calendar year plan and
budget for the cooperative Development of each Licensed Product within the Field under this
Agreement (as such may be amended from time to time in accordance with this Agreement, and as
approved by the JSC, each a “Development Plan”). Each Development Plan shall include (a) a
reasonably detailed written plan of Development activities and budget for the first thirteen (13)
months of such period, together with the JDC’s then-current preliminary estimate of the Development
activities and budget for the final twenty-three (23) months of the rolling thirty-six (36) month
period (such twenty-three (23) month estimated plan and budget, together with the items in clause
(b) below for such 23-month period, being referred to below as the “Forecast”), (b) an
allocation of Development activities between the Parties for the first thirteen (13) months of
such period, including but not limited to the number of allocated full time equivalent personnel
and the applicable FTE Rate and other out-of-pocket expenses to be incurred by each Party during
such period, together with an overall allocation of responsibilities for activities to be conducted
during the remaining twenty-three (23) months covered by such Development Plan, and (c) the overall
program of Development for such Licensed Product within the Field, including clinical studies,
regulatory strategies and other elements for obtaining Regulatory Approval of such Licensed Product
in each country within the Primary Markets. It is understood that the JDC will modify and update
the Forecast annually in connection with the procedure for amending and updating each Development
Plan under Sections 4.2.3 and 4.2.4 below. In addition, the Parties shall cooperate to establish

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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additional non-binding forecasts of Development Costs for the rolling four (4) year period beyond
the three (3) year term of each Development Plan (including as updated).

          4.2.2 Initial Development Plans. The initial Development Plans for Plicera, Amigal
and AT2220 are attached hereto as Appendix 4.

          4.2.3 Amendments. Each Development Plan shall be updated by the JDC for approval by
the JSC, not less than annually (as set forth in Section 4.2.4 below), or more frequently as needed
to take into account completion, commencement or cessation of Development activities not
contemplated by the then current Development Plan. The JDC will submit to the JSC for approval any
material amendment to each Development Plan in advance of implementation of such amendment,
including, without limitation, any amendment that effects a material increase of the budget or
timeline in effect for the current year of such Development Plan, subject to Section 4.2.4 below.

          4.2.4 Timing and Process for Amendments. With respect to each Development Plan, by
September 15 of each calendar year after the Effective Date commencing in 2008, the JDC shall
present to the JSC for its review and approval a proposed Development Plan for the next three (3)
calendar years in the form described in Section 4.2.1 above. If such revised Development Plan is
not approved by the JSC by January 1 of a calendar year, then, until such time as a revised
Development Plan is either approved by the JSC or established pursuant to the dispute resolution
procedure set forth in Section 16.8 below, (a) the preceding Development Plan (including the
Forecast for the applicable period) shall continue to govern the Parties’ Development activities,
(b) each Party shall be permitted to conduct Development activities allocated to such Party in such
preceding Development Plan and incur Development Costs consistent with such preceding Development
Plan, which Development Costs shall be shared by the Parties in accordance with Section 7.4.1
below, and (c) in any case each Party may continue any on-going clinical trials initiated by such
Party in accordance with such preceding Development Plan, and the reasonable costs incurred by such
Party in connection with such clinical trials shall continue to be shared by the Parties in
accordance with Section 7.4.1 below.

          4.2.5 Development Activities. In addition to the information described in
Section 4.2.1 above, each Development Plan shall be as further described in this Section 4.2.5.

               (a) Unless otherwise agreed by the Parties, each Development Plan shall allocate to Shire
responsibility for (i) strategic and operational control of Regulatory Approval within the Shire
Territory, including conducting meetings on programs relating to Regulatory Filings and meetings on
pivotal study designs, and submissions leading up to and subsequent to the filings for Regulatory
Approval (such as scientific advice and pre-MAA meetings), (ii) managing relationships with
physicians and other key personnel at clinical trial sites in the Shire Territory in connection
with such Development Plan, (iii) to the extent included in such Development Plan, any Development
activities to be undertaken in Japan, and (iv) such other activities as the Parties mutually agree
from time to time. In furtherance of the foregoing and as contemplated by Section

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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9.22, Amicus
shall have the opportunity to accompany Shire to meetings with Regulatory Authorities in the Shire
Territory.

               (b) Unless otherwise agreed by the Parties, each Development Plan shall allocate to Amicus
responsibility for (i) strategic and operational control of Regulatory Approval (including
conducting meetings and other related activities as described in (a)(i) above) for the Amicus
Territory, (ii) managing relationships with physicians and other key personnel at clinical trial
sites in the Amicus Territory in connection with such Development Plan, (iii) control of clinical
operations for all phase I clinical trials and Phase II Clinical Trials, and (iv) preclinical
activities (including ongoing non-clinical testing).

               (c) By January 15, 2008, the JSC shall establish the final versions of the initial Development
Plans referenced in Section 4.2.2, including Development activities and budgets as contemplated by
Section 4.2.1. Such final Development Plans shall set forth the allocation between the Parties of
Development activities other than those described in (a) and (b) above. For clarity, it is
understood that, until such time such final versions of the initial Development Plans are so
established, the initial Development Plans referenced in Section 4.2.2 shall continue to govern the
Parties’ Development activities. Notwithstanding anything herein, the 2008 budget for Development
shall not exceed [***]without the mutual consent of the Parties.

               (d) Notwithstanding anything herein, within the [***] of the Effective Date no pivotal
clinical trial or Phase III Clinical Trial under a Development Plan shall be conducted without the
prior written consent of each Party.

               (e) Each Development Plan shall be directed to those activities necessary to obtain Regulatory
Approval of the applicable Licensed Product in the Field in the Primary Markets and, to the extent
the Parties agree, Japan. In addition, the Parties may, from time to time, agree to include
certain Post-Marketing Studies under a Development Plan and to share the costs thereof in
accordance with Section 7.4 below; provided, however, that unless so included, the conduct of
Post-Marketing Studies shall be as addressed in Section 4.3.

               (f) It is understood that, from time to time, it may be necessary for Shire to conduct
additional Development activities beyond that set forth in a Development Plan, in order to obtain
Regulatory Approval for a Licensed Product in a country of the Shire Territory other than the
Primary Markets. Shire may conduct such additional Development activities outside of the
Development Plans at its own cost.

     4.3 Post-Marketing Studies; Monitoring of Independent Trials

          4.3.1 Post-Marketing Studies. For clarity, if a Party desires to conduct a
Post-Marketing Study that has not been approved by the Parties for inclusion under the applicable
Development Plan under Section 4.2.5(e) above, such Party may perform such Post-Marketing Study, at
its own expense. Further, the Party conducting such Post-Marketing Study outside such Development
Plan shall not be required to share the Data (other than safety Data, in accordance with

	 	 	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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the
Pharmacovigilance Agreement or as otherwise required by a governmental or a regulatory authority or
applicable Laws) resulting from such Post-Marketing Study.

          4.3.2 Notice; Suspension of Independent Trials. The Party proposing to conduct a
Post-Marketing Study outside the applicable Development Plan in accordance with Section 4.3.1 above
or any other clinical trial of a Licensed Product (other than [***] for [***]’s) but outside the
Development Plan (each, an “Independent Trial”) shall notify the other Party at least sixty (60)
days prior to submitting a protocol to the Institutional Review Board or Ethics Committee, as
applicable, for such Independent Trial (which notice shall include a synopsis, in reasonable
detail, of the proposed protocol). The Party proposing to conduct such Independent Trial may
proceed with such trial (as described in its notice to the other Party) after such sixty (60) day
notice period unless such other Party reasonably and in good faith objects to such protocol on the
grounds that it would cause, or would have an unreasonable risk of causing, a material adverse
effect upon the Development or Commercialization of a Licensed Product containing the same
Compound. In the case of such an objection, the objecting Party shall give written notice of its
objection (including a reasonably detailed explanation of the basis therefor) to the JSC within
such sixty (60) day period and the Party proposing such protocol shall not commence such trial
pending the resolution of such matter pursuant to this Section 4.3.2. If the JSC is unable to
reach consensus on such matter within thirty (30) days after such matter is referred to the JSC,
then, upon written notice of either Party to the other Party, such matter shall be resolved as a
Committee Dispute in accordance with the provisions of Section 16.8 below.

     4.4 Subcontractors.  Except as otherwise set forth in this Agreement, each Party may engage
subcontractors to perform, under its direction, specific functions that are assigned to it
hereunder or that it carries out in the exercise of its rights hereunder, in each case in
accordance with this Section 4.4. Each Party shall be fully responsible under this Agreement for
the performance hereof by its permitted subcontractors as if such Party so performed this Agreement
itself.

     4.5 Combination Products.  For purposes hereof, a “Combination Product” means any Licensed
Product containing a Compound combined with one or more other active ingredients (e.g., a
co-formulation) or a product in which both a Licensed Product and one or more other products or
components are packaged
together and sold for a combined price. In the event that Shire desires to Develop or
Commercialize a Combination Product:

          4.5.1 if such Combination Product, in Shire’s good faith determination, is not intended for
Commercialization outside the Shire Territory and/or Shire does not Control the Patent Rights
necessary to Develop and Commercialize such Combination Product outside the Shire Territory, then
(a) Shire may Develop and Commercialize such Combination Product solely in the Shire Territory and
(b) the [***]; and

          4.5.2 if the Parties agree to Commercialize such Combination Product in the Amicus Territory
and Shire Controls the Patent Rights necessary to Develop and Commercialize such Combination
Product in the Amicus Territory, then the Parties [***]. It is understood that neither Party is
obligated to agree on such terms and if the Parties cannot so agree the Combination

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Product shall
not be included in a Development Plan and Shire may pursue such Combination Product under Section
4.5.1.

     4.6 Term of Ongoing Development and Committee Obligations.  The Parties’ obligations under
Sections 4.1 and 4.2 (and the Development Plans), and to share Development Costs under
Section 7.4.1 below, and Amicus’ supply and Manufacturing obligations under Article 8 below, shall
terminate eighteen (18) years after the Effective Date. At such time, all Committees will
terminate. However, each Party will continue to have an approval right with respect to matters
specified to be decided by such Committees under this Agreement. In such event, if the Parties are
unable to reach agreement on a matter specified in this Agreement to have been decided by such
Committee, the matter shall be determined by binding arbitration in accordance with the procedures
in Sections 16.8.1(b) through (d) below.

ARTICLE 5

COMMERCIALIZATION in the Shire Territory

     5.1 General.  Subject to the terms and conditions of this Agreement, Shire shall have the
sole right to control the Commercialization of the Licensed Products in the Field in the Shire
Territory.

     5.2 Diligence.  Shire shall use Commercially Reasonable Efforts to obtain Regulatory
Approval of, and to Commercialize, the Licensed Products in the Field in the Shire Territory.

     5.3 Territory Compliance.  Each Party shall use diligent efforts to take the actions
necessary to prevent importation or sales of Licensed Products sold by such Party into the other
Party’s Territory by a Third Party, including any such actions as are determined by the JSC under
Section 3.1.1(c).

     5.4 Bundling. [***] in order to benefit sales or prices of other products offered for
sale by Shire to such customer or that discounts the price of the Licensed Product
disproportionately to the other products included in such multiple product offering.

ARTICLE 6

CERTAIN OTHER ACTIVITIES

     6.1 Label Expansions and New Formulations within the Field. 

          6.1.1 Proposal to JSC. In the event that either Party (the “Developing Party”)
proposes to Develop (a) a Licensed Product for a label expansion within the Field (a “Label
Expansion”) or (b) a new pharmaceutical formulation containing a Compound for an indication within
the Field (a “New Formulation”), such Party shall make a written proposal to the JSC for the
Development thereof, including a proposed work plan, budget, timeline, any Third Party Technology
under Section 10.6.2 and, in the case of Shire, any formulation technology under Section
6.1.2(d)(iii) (the “JSC Proposal Notice”).

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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               (a) Inclusion within Development Plan. If the JSC determines to include such Label
Expansion or New Formulation in an applicable Development Plan or where applicable a new
Development Plan, then such Development Plan shall include the work plan, budget and timeline
proposed by the Developing Party, or as the JSC may otherwise determine. For purposes of the JSC
determination of whether or not to include such Label Expansion or New Formulation under the
applicable Development Plan, the Developing Party shall be deemed to have approved the proposal
presented by it to the JSC as part of the JSC Proposal Notice under Section 6.1.1 above.

          6.1.2 Independent Projects.

               (a) Election. If the JSC does not determine to include such Label Expansion or New
Formulation under the applicable Development Plan, then the Developing Party shall have the right,
subject to the Opt-In Right in Section 6.1.3 below, to Develop and Commercialize such Label
Expansion or New Formulation for such Licensed Product outside the Development Plans solely in the
Developing Party’s respective Territory (subject to the proviso in Section 2.1.3) at its own
expense (it being understood that Development Costs incurred in connection therewith shall not be
shared under Section 7.4.1 below), and such Label Expansion or New Formulation of such Licensed
Product shall be referred to herein as an “Independent Project.” Notwithstanding the above, the
Developing Party shall have the right to conduct non-clinical Development of an Independent Project
anywhere, including, but not limited to, outside its Territory.

               (b) Provision of Development Update. Upon request by the non-Developing Party (the
“Non-Developing Party”), the Developing Party shall provide to the Non-Developing Party a summary
in reasonable detail of the Development results to date pertaining to such Independent Project.

               (c) Statement of Independent Development Costs.

                    (i) Prior to sixty (60) days after the end of each calendar year of an Independent Project,
the Developing Party shall provide the Non-Developing Party with a statement of the Independent
Development Costs (as defined below) for the prior year (each, a “Statement of Costs”) for such
Independent Project.

                    (ii) As used herein, “Independent Development Costs” shall mean those internal and external
costs actually incurred by the Developing Party outside the Development Plans that are specifically
allocable to the Development of the applicable Independent Project. The allocation of such costs
to an Independent Project shall be determined in a manner consistent with the manner in which costs
are allocated to the Development Costs of Licensed Products under the Development Plans. For such
purposes, the internal Development costs of the Developing Party shall be determined by applying
the FTE Rate applied under the Development Plans for the same period.

               (d) License; Disclosure of Know-How. If a Label Expansion or New Formulation is
included in the Development Plan in accordance with Section 6.1.1(a) above, or if the

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Non-Developing Party exercises the Opt-In Right with respect to an Independent Project in
accordance with Section 6.1.3 below, the Developing Party shall promptly provide to the
Non-Developing Party Know-How Controlled by the Developing Party that is necessary, useful or
actually used to Develop such Label Expansion, New Formulation or Independent Project and to
Develop and Commercialize such Licensed Product in accordance with this Agreement. In such
event:

                    (i) For clarity, it is understood that the licenses granted to Shire under Section 2.1 above
include the Licensed Product comprising such Label Expansion, New Formulation or Independent
Project, as the case may be; and

                    (ii) Subject to Sections 6.1.2(d)(iii) and 10.6.2, Amicus shall have and is hereby granted a
license, under Shire IP, to use, import, sell and Commercialize such Licensed Product in the Amicus
Territory, and to Develop and Manufacture such Licensed Product, including the right to sublicense;
provided, however, that Amicus shall not conduct any clinical trial of such Licensed Product in the
Shire Territory without Shire’s consent (not to be withheld unreasonably). As used herein, “Shire
IP” shall mean (A) Know-How to be disclosed to Amicus under this Section 6.1, and (b) Patent Rights
Controlled by Shire that are necessary or actually used to Develop, Manufacture or Commercialize
such Licensed Product.

                    (iii) If a New Formulation is to be licensed under Section 6.1.2(d)(ii) above to Amicus and
includes proprietary formulation technology Controlled by Shire, then Amicus shall pay to Shire a
royalty on net sales of such New Formulation in the Amicus Territory pursuant to such license,
based on commercially reasonable terms; provided that in the case of a New Formulation included in
a Development Plan pursuant to Section 6.1.1(a) above, such formulation technology was generated or
acquired by Shire (A) outside of this Agreement or (B) as
part of a different Independent Project for which Amicus did not exercise its Opt-In Right
under Section 6.1.1(a) and Shire thereafter conducted clinical Development. In addition such
license shall be subject to Section 10.6.2. If the Parties are unable to agree on the rate and
other terms of such royalty, the same shall be determined by the JSC. In such event, if Shire
Manufactures such New Formulation, then Shire will supply such New Formulation to Amicus on
reciprocal terms as provided in Article 8 below; in each case, mutatis mutandis. If the Parties
are unable to agree on the application of any such terms, the matter shall be determined by the
JSC. If Amicus’ proposal for the royalty rate and other terms is not selected pursuant to Section
16.8, Amicus may revoke its exercise of the Opt-In Right for such New Formulation and such Opt-In
Right for such New Formulation shall terminate as if not exercised.

          6.1.3 Opt-In Right. In the case of an Independent Project, until the end of the
Opt-In Period (as defined below), the Non-Developing Party shall have the right to opt-in for
Development of the (a) the Label Expansion within the Field with respect to the particular Licensed
Product in question and/or (b) the New Formulation of a Licensed Product, as applicable, comprising
such Independent Project, as follows (the “Opt-In Right”):

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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               (a) Notice. The Developing Party shall notify the Non-Developing Party of a
submission of a request to a Regulatory Authority of a Primary Market country for the first [***]
for an Independent Project, or the submission of the protocol for the first Phase III Clinical
Trial for an Independent Project to an Institutional Review Board or Ethics Committee for
approval, whichever occurs first (the “Opt-In Notice”). As used herein, the “Opt-In Period” with
respect to an Independent Project shall mean the period beginning upon the date on which the
Non-Developing Party elected not to jointly Develop such Label Expansion or New Formulation (as
applicable) pursuant to Section 6.1.2(a) and ending on  ninety (90) days after the later of (x)
first [***] for such Independent Project or (y) the submission of the protocol to such
Institutional Review Board or Ethics Committee for the first Phase III Clinical Trial of such
Independent Project, provided, that in the event (x) does not occur then upon  the dosing of the
first patient in the first Phase III Clinical Trial for such Independent Project. Notwithstanding
the foregoing, if so agreed by the Parties on a case-by-case basis, the Opt-In Period may be
extended and if extended, the Non-Developing Party may exercise the Opt-In Right at such later time
as is mutually agreed upon by the Parties. The Opt-in Notice shall include a good faith estimate
of the date the Opt-In Period will expire, and notwithstanding the foregoing, the Opt-In Period
shall not expire prior to such estimated date.

               (b) Know-How. Promptly after a request by the Non-Developing Party made during the
applicable Opt-In Period, the Developing Party shall provide to the Non-Developing Party reasonable
access to the material Know-How of the Developing Party pertaining to such Independent Project, and
shall cooperate to enable the Non-Developing Party to evaluate such Know-How, and Independent
Project, in a prompt and efficient manner. In addition the Developing Party shall provide the
Non-Developing Party safety data required in accordance with the Pharmacovigilance Agreement or as
otherwise required by a governmental or a regulatory authority or applicable Laws. The Developing
Party shall similarly provide to the Non-Developing Party promptly a statement of the total
Independent Development Costs incurred by the Developing
Party in performing such Independent Project. If additional Know-How is generated, or
Independent Development Costs incurred, during the Opt-In Period after such request, the Developing
Party shall promptly make such information available to the Non-Developing Party upon request to
the extent necessary to enable the Non-Developing Party to evaluate such Know-How and Independent
Project. Notwithstanding anything herein to the contrary, unless the Non-Developing Party
exercises its Opt-In Right under Section 6.1.3 below with respect to such Independent Project, the
Non-Developing Party shall not have the right to use, and shall not use, such Know-How or Data
pertaining to such Independent Project provided to it pursuant to this Section 6.1.2(b) other than
as safety data as allowed pursuant to the Pharmacovigilance Agreement or as otherwise required by a
governmental or a regulatory authority or applicable Laws.

               (c) Exercise. To exercise the Opt-In Right with respect to an Independent Project,
the Non-Developing Party shall deliver, prior to the expiration of the Opt-In Period for such
Independent Project, written notice to the Developing Party of such exercise and shall promptly
reimburse the Developing Party for the Non-Developing Party’s Reimbursable Share (as defined below)
of the Independent Development Costs incurred by the Developing Party in performing such
Independent Project (through the date of such exercise). For such purpose, the Non-Developing

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Party’s “Reimbursable Share” shall mean [***] of the Independent Development Costs for the
Independent Project. In the event of a dispute as to the calculation of Independent Development
Costs to be reimbursed, the Non-Developing Party shall promptly reimburse the Developing Party the
amount described above with respect to any undisputed Independent Development Costs, and shall
promptly reimburse any remainder (or if applicable the Developing Party shall promptly refund any
amounts that were so paid but subsequently found not to be due) upon resolution of such dispute by
the JSC and in the event that the JSC is unable to resolve such dispute, the matter shall be
resolved by an audit in accordance with provisions of Sections 7.8.2 and 7.8.3. For purposes of
clarity, the Non-Developing Party shall be the Auditing Party in accordance with Section 7.8.2.

          6.1.4 Further Development and Commercialization of Independent Projects.

               (a) Generally. If the Non-Developing Party does not exercise its Opt-In Right for an
Independent Project during the Opt-In Period, then the Developing Party shall have the right to
continue the Development and Commercialization of such Independent Project solely in its respective
Territory (subject to the proviso in Section 2.1.3), provided the Developing Party shall have the
right to conduct non-clinical Development anywhere, including, but not limited to, outside its
Territory. It is understood that Net Sales of Licensed Products in the Shire Territory resulting
from such Label Expansion or New Formulation shall be included in Net Sales calculations for
purposes of Sections 7.2.2 and 7.3 below.

               (b) Clinical Trials. The conduct of clinical trials as part of an Independent Project
shall be subject to Section 4.3.2 above.

               (c) Manufacturing. If Shire elects to Develop and Commercialize a New Formulation as
an Independent Project, Amicus will supply to Shire in accordance with Article 8 below additional
quantities of the applicable Compound for use in such New Formulation. Unless
otherwise agreed, however, Amicus will not be required to arrange for supplies of final
formulated Licensed Products incorporating such New Formulation, and Shire shall have the right to
Manufacture and have Manufactured such supplies of final formulated Licensed Products incorporating
such New Formulation.

          6.1.5 Activities Outside the Field. The application of Sections 6.1.1–6.1.4 is
limited to activities within the Field with respect to the Licensed Products. In this regard
nothing herein shall be deemed to grant to Shire the right to Develop or Commercialize Licensed
Products (including New Formulations) outside the Field. The Parties may discuss from time to time
expanding the Field to include indications outside the Field for a given Compound or Licensed
Product, and if the Parties so agree, then the Field shall be deemed to include such additional
indication with respect to Licensed Products containing such Compound. Unless so agreed, however,
during the Term (a) Amicus shall not, directly or indirectly, Develop (other than as a Licensed
Product in accordance with this Agreement) or Commercialize in the Shire Territory a product
containing a Compound other than an [***] for [***]’s and (b) Shire shall not outside the Field,
directly or indirectly, Develop or Commercialize in the Shire Territory a product containing a
Compound,. Subject to (a) Sections 6.2.1 and 6.2.2, Amicus may, directly and/or indirectly,

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Develop or Commercialize an [***] for [***]’s in the Shire Territory and (b) Section 4.3.2, Amicus
may, directly and/or indirectly, Develop outside the Field a product containing a Compound in the
Shire Territory for Commercialization in the Amicus Territory.

     6.2 [***] for [***]’s. 

          6.2.1 [***]’s Option. Subject to Section 6.2.1(e) below, Shire shall have and Amicus
hereby grants to Shire an option to expand the Field with respect to products containing [***] as
set forth below in this Section 6.2.1 (the “[***]’s Option”).

               (a) Notice. Upon the scheduling of the first [***] with respect to an [***] for
[***]’s, Amicus shall notify Shire in writing. Promptly following such [***] with respect to an
[***] for [***]’s, Amicus shall provide to Shire written notice of such [***], together with the
data package submitted by Amicus to the FDA for purposes of such [***] (the “[***]’s Option
Notice”). Shire shall have the right to exercise the [***]’s Option within sixty (60) days after
its receipt of the [***]’s Option Notice (the “[***]’s Option Period”) by providing written notice
to Amicus of such intent to exercise the [***]’s Option. Amicus shall promptly provide Shire any
additional Data or information (e.g. minutes of the [***] and response letter from the FDA with
respect to the [***]) that it has after providing the [***]’s Option Notice up to the exercise or
expiration of the [***]’s Option. For purposes of clarity, Amicus shall not grant to a Third
Party any license or other rights to Commercialize an [***] for [***]’s in the Shire Territory
prior to the expiration of the [***]’s Option Period and further subject to Section 6.2.2 below.

               (b) Exercise. Upon exercise of the [***]’s Option within the [***]’s Option Period
and payment of the exercise fee (the “[***]’s Option Exercise Fee”) within ten (10) Business Days
[***], the Field with respect to [***] (and any other [***] for [***]’s) shall be
deemed to include the diagnosis, treatment and/or prevention of [***]’s and the JDC shall
promptly propose, for approval by the JSC, modifications to the applicable Development Plan to
include Development of such [***] for [***]’s. Following exercise of the [***]’s Option, Amicus
shall continue performing further activities related to the Development of such an [***] for
[***]’s in accordance with its own Development plans for a period of up to one (1) year after
exercise of the [***]’s Option, or until such earlier time as the JSC approves such a Development
Plan therefor, and thereafter the further Development of such [***] for [***]’s shall be conducted
in accordance with such Development Plan, as modified by the JSC from time to time. All costs
reasonably incurred by Amicus in performing such activities (i.e., those after the exercise of the
[***]’s Option but prior to the JSC’s establishment of a modified Development Plan), and those
conducted pursuant to the modified Development Plan so established, shall be shared in accordance
with Section 7.4.1 below.

               (c) [***]’s Option Exercise Fee and Milestone Payments. In the event Shire exercises
the [***]’s Option in accordance with the foregoing, [***] to be made by Shire with respect to the
Development and Commercialization of Licensed Products for [***]’s hereunder. It is understood
that the amount of such [***]’s Option Exercise Fee and milestone payments shall [***].

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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               (d) Cooperation. From the Effective Date until the end of the [***]’s Option Period,
Amicus shall keep Shire informed of Amicus’ progress in Developing [***] for [***]’s and shall
cooperate with Shire to facilitate Shire’s understanding of the [***] for [***]’s, including, but
not limited to, providing access to all Data generated regarding [***] for [***]’s promptly upon
Shire’s written request.

               (e) Amicus’ Election Not to Proceed. If, prior to the [***]’s Option Notice, Amicus
notifies Shire in writing that it has made the election not to further Develop for and/or seek
Regulatory Approval for Commercialization in the Shire Territory, or Commercialize, an [***] for
[***]’s in the Shire Territory, the [***]’s Option, and this Section 6.2.1, shall terminate and not
apply; provided, that if Amicus makes such election under this Section 6.2.1(e), Amicus shall not
(directly or indirectly) Commercialize an [***] for [***]’s in the Shire Territory (for so long as
[***] is a Compound hereunder).

          6.2.2 Right of First Refusal. Amicus hereby grants to Shire a right of first refusal
to Develop and exclusively Commercialize one or more [***] for [***]’s in the Shire Territory as
set forth below in this Section 6.2.2 (the “Right of First Refusal”).

               (a) Procedure. Prior to granting to a Third Party a license or other rights to
Commercialize an [***] for [***]’s in the Shire Territory, Amicus shall so advise Shire in writing
setting forth the terms and conditions under which Amicus would grant such rights (an “Offer”) and
including a copy of the proposed definitive agreement to grant such rights to Shire (a “Right of
First Refusal Notice”). [***] of the date of the Right of First Refusal Notice (the “RFR
Acceptance Period”), Shire shall notify Amicus in writing whether Shire desires to enter into the
transaction in the Right of First Refusal Notice in accordance with the terms set forth therein,
together with a fully executed copy of the definitive agreement included in such Right of First
Refusal Notice (a “RFR Acceptance”). In the event that Shire shall have failed to deliver a RFR
Acceptance [***], then
Shire shall be deemed to have waived its Right of First Refusal under this Section 6.2.2, and
Amicus shall be free to execute and close on the Offer with a Third Party solely on the terms
provided in the Right of First Refusal Notice (which for purposes of clarity shall mean the
execution by a Third Party of the definitive agreement offered to Shire with such non-substantive
changes as are necessary to substitute such Third Party for Shire); provided that if such
definitive agreement is not consummated within [***] after the end of the RFR Acceptance Period, or
if, during such [***] period Amicus proposes to grant to a Third Party rights to Commercialize an
[***] for [***]’s on terms that are different than those set forth in the Offer (any terms
different than those provided in the definitive agreement offered to Shire), Amicus shall be
obligated to follow the procedures set forth in this Section 6.2.2 prior to granting to a Third
Party any right or license to Commercialize an [***] for [***]’s.

               (b) No Implied Obligations. The only obligations of Amicus under this Section 6.2.2
and Section 6.2.1 above are as expressly stated therein, and there are no further implied
obligations relating to the matters contemplated therein. Without limiting the foregoing, it is
understood that (i) Amicus is not obligated to identify the Third Party(ies) to whom Amicus would

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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grant rights to [***] for [***]’s, (ii) modifications or improvements may be made to such [***]
after the date of the Right of First Refusal Notice and (iii) a transfer of rights in connection
with an assignment of this Agreement in accordance with Section 16.1 below shall not be subject to
this Section 6.2.2, provided, that this Section 6.2.2 shall apply to such assignee.

               (c) Termination. Section 6.2.2 shall terminate for all purposes upon the first grant
to a Third Party by Amicus of rights to Commercialize an [***] for [***]’s in accordance with this
Section 6.2.2; and in any case this Section 6.2 (including both Sections 6.2.1 and 6.2.2 but not
Section 6.2.1(e)) shall expire [***] after the First Commercial Sale of [***] (or, if earlier,
another Licensed Product containing [***]) within the Field in a Primary Market country in the
Shire Territory, after which time Amicus shall have no further obligation and Shire shall have no
further rights under this Section 6.2.

     6.3 Related Products. 

          6.3.1 Related Product Notice. At least thirty (30) days prior to dosing the first
patient in the first human clinical trial of a Related Product within the Field, Amicus shall
notify Shire in writing, which notice shall include a copy of the IND submitted to the FDA or other
applicable Regulatory Authority for such trial (a “Related Product Notice”), subject to Section
6.3.6. For purposes hereof, “Related Product” is defined as a small molecule that selectively
binds to the active site of (a) a-galactosidase A for the treatment or prevention of Fabry Disease,
(b) b-glucocerebrosidase for the treatment or prevention of Gaucher Disease, (c) a-glucosidase for
the treatment or prevention of Pompe Disease or (d) to the extent the Parties agree pursuant to
Section 6.1.5 to expand the Field for a Compound and agree to add an additional target for such
Compound, such other target for such indication, and in each such case whose primary therapeutic
activity results from such selective binding, provided, that the restrictions of this Section 6.3
shall not apply
to [***] for [***]’s or a Licensed Product being Commercialized pursuant to this Agreement.
Each of the enzymes referenced under clauses (a), (b), (c) and (d) of this Section 6.3.1 is
referred to herein as a “Target.”

          6.3.2 Related Product Opt-In Right. Shire shall have the right, exercisable [***]
after receiving the Related Product Notice (the “Related Product Opt-In Period”), to designate that
(a) the active pharmaceutical ingredient of such Related Product shall be added as a Compound
hereunder, (b) the formulation described in the IND included in the Related Product Notice shall be
added as a Licensed Product hereunder and (c) the Field with respect to such Licensed Product shall
be limited to the specific disease for which such Related Product is being developed (i.e., Gaucher
Disease, Fabry Disease or Pompe Disease or such other indication as is then included in the Field
under Section 6.1.5, as applicable) (the “Related Product Opt-In Right”).

          6.3.3 Exercise. To exercise the Related Product Opt-In Right with respect to a
Related Product, Shire shall deliver written notice to Amicus of such exercise within the Related
Product Opt-In Period for such Related Product, and shall promptly reimburse Amicus for [***] of
the costs incurred by Amicus outside the Development Plans that are specifically attributable to
the

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Development of such Related Product prior to such exercise, determined in accordance with
Section 6.5.4.

          6.3.4 Development Plan. Upon such timely exercise of the Related Product Opt-In
Right, the JDC and JSC shall promptly establish a new Development Plan for such Related Product
(i.e., as a Licensed Product).

          6.3.5 Milestone Payments and Royalties. Following exercise of the Related Product
Opt-In Right, Shire shall pay to Amicus royalty payments under Section 7.3 with respect to such
Related Product as a Licensed Product. In addition, Shire shall pay to Amicus an additional set of
Milestone payments for such Related Product, in an amount equal to [***] of the amounts for the
achievement of the same events as provided for the first Licensed Product Developed for the same
Field under Section 7.2.1, provided, that such payments shall not be due until the first Regulatory
Approval of the first Licensed Product for the same disease within the Field as that of such
Related Product. For clarity, upon Regulatory Approval of the first Licensed Product in a
particular Field, payments for Milestones (as provided in this Section) for a Related Product
previously achieved shall be due to Amicus.

          6.3.6 Related Products to be Commercialized Solely in the Amicus Territory.
Notwithstanding the foregoing, the Related Product Opt-In Right shall not apply with respect to a
particular Related Product that Amicus elects to Commercialize solely in the Amicus Territory
throughout the Term. Accordingly, if Amicus notifies Shire in writing that it has made the
election not to Commercialize such Related Product in the Shire Territory, the Related Product
Opt-In Right, and this Section 6.3, shall not apply to such Related Product; provided that if
Amicus makes such election under this Section 6.3.6, Amicus shall not Commercialize such Related
Product (for so long as the same remains a Related Product) in the Shire Territory prior to the end
of the [***] period
following Regulatory Approval in the Shire Territory of the first Licensed Product for such
disease within the Field.

     6.4 Termination by JSC; Back-Up Compounds.  The JSC may, from time to time, terminate the
Development of a Licensed Product for the Shire Territory or the Amicus Territory , in accordance
with Section 6.4.1.

          6.4.1 Termination of Development in Shire Territory or Amicus Territory. If, at the
request of a Party (the “Requesting Party”), the JSC determines that it is not commercially
reasonable to continue to Develop and/or to Commercialize a Licensed Product in the Requesting
Party’s Territory (regardless of whether it is commercially reasonable to do so in the other
Party’s Territory), then such Licensed Product shall be terminated in the Requesting Party’s
respective Territory (i.e., the Shire Territory if Shire is the Requesting Party and the Amicus
Territory if Amicus is the Requesting Party). Upon such termination:

               (a) If such termination is with respect to the Amicus Territory only, then: (i) the Licensed
Product that was the subject of such termination shall remain a Licensed Product for all purposes
of this Agreement and shall not revert to Amicus by reason of such termination, and the

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-31-

 

provisions
of Sections 6.4.2 and 6.4.3 shall not apply with respect to such termination; (ii) Shire shall have
the right to continue Developing and to Commercialize such Licensed Product as an Independent
Project outside the Development Plans in the Shire Territory at its own expense (which costs shall
not be shared under Section 7.4.1); (iii) Amicus’ obligations under Sections 4.1 and 4.2, and under
the Development Plan for such Licensed Product (to the extent such Development Plan applies to such
Licensed Product), shall terminate, subject to Amicus using Commercially Reasonable Efforts to
transition any such Development activities that relate to Development and/or Commercialization of
such Licensed Product in the Shire Territory to Shire; and (iv) Amicus’ obligation to supply such
Licensed Product under Article 8 shall terminate on the second anniversary of such termination or
such earlier date as Shire establishes an alternative source of supply for such Licensed Product,
during which period Amicus shall cooperate reasonably to transition to Shire or its designee the
Manufacture of such Licensed Product. In the event of termination for the Amicus Territory only
under this Section 6.4.1(a), Amicus shall not Develop or Commercialize such Licensed Product or the
Compound contained therein anywhere in the Territory during the remaining Term for so long as the
same remains a Licensed Product; or

               (b) If such termination is with respect to the Shire Territory, then such Licensed Product
shall cease to be a Licensed Product and the provisions of Sections 6.4.2, 6.4.3 and 6.4.4 shall
apply (in which case such Licensed Product shall be deemed a Terminated Product), and Shire shall
use Commercially Reasonable Efforts to transition any Development activities that relate to
Commercialization of such Licensed Product in the Amicus Territory to Amicus. For clarity, Shire
shall have no further obligations under this Agreement with respect to such Licensed Product under
Sections 4.1 and 4.2, the Development Plan for such Licensed Product, and Article 5.

          6.4.2 Intentionally Omitted.

          6.4.3 Reversion.

               (a) In the event a Licensed Product ceases to be a Licensed Product pursuant to Section 
6.4.1(b) or 7.2.5, or Section 15.3.2, (i) such Licensed Product shall be deemed a “Reverted
Product” under Section 15.5.2, (ii) the Compound contained therein shall cease to be a Compound for
all purposes of this Agreement to the extent no other Licensed Product containing such Compound is
actively being Developed (including clinical Development) or Commercialized by Shire hereunder,
(iii) Shire shall have no further rights under Section 4.3.2 with respect to clinical trials
involving such Licensed Product, (iv) Amicus shall have no further obligations under Article 8 with
respect to such Licensed Product, (v) Shire shall have no further prosecution, maintenance and
enforcement rights under Sections 10.2 and 10.3 with respect to Patent Rights specifically directed
to such Licensed Product, (vi) Shire shall have no further rights under Section 14.5 with respect
to such Licensed Product, and (vii)  the provisions of Sections 15.5.2(a), (c), (d), (e), (f), (g)
and (h) shall then apply with respect to such Licensed Product as if this Agreement had terminated
under Section 15.3.1. For clarity, Shire shall have no further obligations under this Agreement
with respect to such Licensed Product under Sections 4.1 and 4.2, the Development Plan for such
Licensed Product, and Article 5.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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               (b) In addition, subject to subsection (iv) below, in the event of such reversion:

                    (i) with respect to Amigal, then Fabry Disease (plus any additional indication for DGJ
included within the Field pursuant to Section 6.1.5) shall thereafter be excluded from the
definition of Field; and the compounds and products described in Section 6.3.1(a) shall cease to be
Related Products;

                    (ii) with respect to Plicera, then Gaucher Disease (plus any additional indication for [***]
included within the Field pursuant to Section 6.1.5 or Section 6.2) shall thereafter be excluded
from the definition of Field; the obligations under Sections 6.2.1 and 6.2.2 shall terminate; and
the compounds and products described in Section 6.3.1(b) shall cease to be Related Products; and

                    (iii) with respect to AT2220, then Pompe Disease (plus any additional indication for DNJ
included within the Field pursuant to Section 6.1.5) shall thereafter be excluded from the
definition of Field; and the compounds and products described in Section 6.3.1(c) shall cease to be
Related Products; in each of subsections (i) and (ii) above and this subsection (iii), for all
purposes of this Agreement.

                    (iv) Notwithstanding the foregoing, if (x) a salt, enantiomer, metabolite or polymorph of such
Compound is then actively being Developed (including clinical Development) or being Commercialized,
or (y) an additional Compound has been added to this Agreement under Sections 6.3 or 6.4.4 (or
1.5.4) for a disease described in subsection (b)(i), (ii) or (iii) above and such Development is
continuing under a Development Plan or as an Independent Project (or a Licensed Product is being
Commercialized hereunder for such disease), then in either
such case such disease shall not be deemed excluded from the Field under this Section 6.4.3
unless such Compound becomes a Reverted Product; and in the case of subsection (ii) if another
Licensed Product containing [***] is actively being Developed (including clinical Development) or
Commercialized hereunder, then Sections 6.2.1 and 6.2.2 shall not terminate pursuant to subsection
(ii) above.

          6.4.4 Back-Up Compounds.

               (a) Back-Up Compound Opt-In Right. If a Licensed Product is terminated pursuant to
Section 6.4.1(b) or 6.4.2 (a “Terminated Product”) and at such time there is no other Licensed
Product containing the same Compound as the Terminated Product being Developed hereunder for the
disease within the Field to which such Terminated Product was directed, then upon request by Shire,
the JSC shall take the actions set forth in this Section 6.4.4 to select a Back-Up Compound (as
defined below) to be added as a Compound hereunder (the “Back-Up Compound Opt-In Right”). For
purposes hereof, a “Back-Up Compound” shall mean an active pharmaceutical ingredient Controlled by
Amicus:

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-33-

 

                    (i) that is a Related Product for the same Target and disease within the Field as the
applicable Terminated Product (e.g., a Related Product described in Section 6.3.1(a), if the
Terminated Product was being Developed for Fabry Disease); and

                    (ii) that is either (x) referenced on Exhibit 6.4.4 hereto, (y) (A) for which Amicus
has performed or is performing human clinical trials for such disease within the Field, or (B) for
which Amicus first initiates such a human clinical trial within three (3) years after the date of
such termination, or (z) a pre-clinical compound for which Amicus has performed at least one (1)
study in an animal model in the Field that Amicus has not designated as a candidate for Development
outside the Field.

               (b) Notice. Promptly following termination of a Licensed Product as described in this
Section 6.4.4(a)Amicus shall provide the JSC and Shire with a description of the Back-Up
Compound(s) in existence at the time of such notice. If Shire exercised the Back-Up Compound
Opt-In Right but the JSC does not select any of the Back-Up Compounds in existence at such time,
and Amicus within three (3) years after the date of such termination initiates a human clinical
trial of a Back-Up Compound within the Field, then Amicus shall notify the JSC at least thirty (30)
days before initiating the first such trial or conducting the first such pre-clinical animal study
of the first such Back-Up Compound (each of the notices in (i) and (ii), a “Back-Up Compound
Notice”).

               (c) Exercise. To exercise the Back-Up Compound Opt-In Right, Shire shall notify
Amicus and the JSC in writing of such exercise within [***] after its receipt of the Back-Up
Compound Opt-In Notice (the “Back-Up Opt-In Exercise Period”). Upon Shire’s timely exercise of the
Back-Up Compound Opt-In Right, the JSC may select one such Back-Up Compound to be included in the
Development Plan pursuant to such Back-Up Compound Opt-In Right provided, that the JSC may select
multiple Back-Up Compounds from those referenced in Exhibit
6.4.4. It is understood that the JSC (rather than Shire) shall select the Back-Up Compound to
be added as a Compound pursuant to such Back-Up Compound Opt-In Right. Upon the JSC’s selection,
and Shire’s acceptance, of the Back-Up Compound:

                    (i) such Back-Up Compound shall become a Compound hereunder, and the Field with respect to
Licensed Products containing such Compound shall be the same disease within the Field for the
applicable Terminated Product;

                    (ii) Shire shall promptly reimburse Amicus for [***] of the costs incurred by Amicus outside
the Development Plans that are specifically attributable to the Development of such Back-Up
Compound during the period prior to such exercise, determined in accordance with Section 6.5.4;

                    (iii) any unpaid milestone payments under Section 7.2.1 with respect to the applicable
Terminated Product shall be payable upon achievement of such Milestone by a Licensed Product
containing such Back-Up Compound; and

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-34-

 

                    (iv) Amicus may elect, within [***] following such Back-Up Compound becoming a Compound, to
terminate Development and Commercialization of such Compound and any Licensed Product containing
such Compound in the Amicus Territory provided, Amicus shall not have the right to terminate a
Back-Up Compound selected by the JSC, if Amicus had proposed that the JSC select such Back-Up
Compound.

               (d) Failure to Exercise. If (i) Shire does not exercise the Back-Up Compound Opt-In
Right with respect to a particular Terminated Product within the applicable Back-Up Opt-In Exercise
Period, (ii) no Back-Up Compound is designated as a Compound under this Section 6.4.4 with respect
to the Terminated Product within three (3) years following the date such Terminated Product is
terminated under Section 6.4.1(b) or 6.4.2, or (iii) Shire does not accept the Back-Up Compound
selected by the JSC within [***] of the selection of the JSC, then in any such case the Back-Up
Compound Opt-In Right, and the provisions of this Section 6.4.4, shall terminate with respect to
that Terminated Product and all Back-Up Compounds directed to the disease within the Field with
respect to which such Terminated Product was directed, provided, Shire shall be deemed to have
accepted the Back-Up Compound selected by the JSC, if Shire had proposed that the JSC select such
Back-Up Compound.

     6.5 Additional Terms Regarding Related Product/Back-Up Compound Opt-In Rights. 

          6.5.1 Confirmation of Termination. In the case of a JSC vote to terminate a Licensed
Product under Section 6.4.1 or 6.4.2, each Party’s vote on the JSC must be reflected in a written
notice signed by both the Committee Co-Chair and the Chief Executive Officer of such Party.

          6.5.2 Additional Know-How. During the Related Product Opt-In Period and the sixty
(60) day period after each Back-Up Compound Notice, Amicus shall provide Shire with reasonable
access to other Data and Know-How Controlled by Amicus with respect to the Related Product or
Back-Up Compound(s) contained in the applicable Related Product Opt-In Notice or Back-Up Compound
Notice. However, notwithstanding anything herein to the contrary, unless such Related Product or
Back-Up Compound becomes a Licensed Product or Compound in accordance with Section 6.3 or 6.4,
Shire shall not have the right to use, and shall not use, such Know-How pertaining to such Related
Product or Back-Up Compound provided to it pursuant to this Section 6.5.2 or otherwise to obtain
Regulatory Approval of, or to Commercialize, any product.

          6.5.3 Transition of Development Following Exercise of Opt-In Right. Following
exercise of the Related Product Opt-In Right or the selection of a Back-Up Compound upon exercise
of the Back-Up Compound Opt-In Right, Amicus shall continue performing further activities related
to the Development of such Related Product or Back-Up Compound, as applicable, in accordance with
Amicus’ own Development plans for a period of up to one (1) year after the exercise of such Related
Product Opt-In Right or selection, respectively, or until such earlier time as the JSC establishes
such new Development Plan. Thereafter, the further Development of such Licensed Product shall be
conducted in accordance with such Development Plan, as modified by the JSC from time to time. All
costs reasonably incurred by Amicus in performing such activities (i.e., those after

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-35-

 

Shire’s
exercise of the applicable Opt-In Right, but prior to the JSC’s establishment of a new Development
Plan), and those conducted pursuant to the new Development Plan so established, shall be shared in
accordance with Section 7.4.1. Following exercise of the Related Product Opt-In Right or Back-Up
Compound Opt-In Right, and adoption of the new Development Plan, the Parties shall use Commercially
Reasonable Efforts to ensure an orderly transition and uninterrupted Development of the Related
Product or Back-Up Compound that was the subject of such Opt-In Right, respectively.

          6.5.4 Regarding Amount of Reimbursement. With respect to the calculation of costs to
be reimbursed under Sections 6.3.3, 6.4.4(c)(ii) or 6.5.3, internal Development costs shall be
determined by applying the FTE Rate used under the Development Plans for the same period. In the
event of a dispute as to the costs to be reimbursed under such Sections, the matter shall be
resolved by the JSC; and in such case, prompt reimbursement shall be made in the amount described
above with respect to any undisputed amounts and any disputed amounts shall be promptly reimbursed
upon resolution of such dispute by the JSC or pursuant to Section 16.8.

          6.5.5 Term of Related Product and Back-Up Compound Opt-In Rights. Within thirty (30)
days after the first Regulatory Approval of a Licensed Product in the first Primary Market of the
Shire Territory, Section 6.3 and Section 6.4.4 shall each terminate with respect to all Related
Products, and all Back-Up Compounds, directed to the same disease within the Field as such Licensed
Product. For example, upon the first Regulatory Approval for Amigal, (a) Shire would have no
further Related Product Opt-In Right with respect to any small molecule that selectively binds to
the active site of a-galactosidase A for the diagnosis, treatment or prevention of Fabry Disease
and (b) Shire would have no further Back-Up Compound Opt-In Right if Amigal (or any
other Licensed Product being developed for Fabry Disease) thereafter becomes a Terminated
Product.

     6.6 Independent Development and Commercialization of Related Products. 

          6.6.1 Neither Party shall, directly or indirectly, Commercialize a Related Product within the
Field in the Shire Territory until [***] after the First Commercial Sale in the first Primary
Market country in the Shire Territory of the Licensed Product directed toward the same Target as
such Related Product. In addition, unless the Parties agree otherwise, Shire shall not and,
solely with respect to a Related Product for which Amicus has elected solely to Commercialize in
the Amicus Territory under Section 6.3.6, Amicus shall not, directly or indirectly, Develop such a
Related Product prior to such First Commercial Sale; provided that such restriction shall apply
neither to non-clinical Development activities, nor to clinical trials in healthy volunteers, with
respect to a Related Product.

          6.6.2 For clarity, it is understood that Section 6.3 through 6.5 above shall not apply with
respect to [***] for [***]’s or other products outside the Field.

     6.7 Reservation.  For clarity, is understood that, except as expressly provided in Section
4.3.2, this Agreement shall not be deemed to limit Amicus’ right to Manufacture, Develop,

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-36-

 

Commercialize and
otherwise use, import or exploit (a) Compounds or Licensed Products for use within or outside the
Field within the Amicus Territory, or (b) subject to Sections 6.2.1 and 6.2.2 above, an [***] for
[***]’s for use in the Shire Territory.

ARTICLE 7

PAYMENTS, ROYALTIES AND THE SHARING OF DEVELOPMENT COSTS

     7.1 License Fee.  Shire shall pay to Amicus a license fee in the amount of Fifty
Million Dollars ($50,000,000), within three (3) Business Days after the Effective Date, in
accordance with Section 7.6. The license fee set forth in this Section 7.1 shall not be refundable
or creditable against any future milestone payments, royalties or other payments by Shire to Amicus
under this Agreement.

     7.2 Milestone Payments

          7.2.1 Development Milestone Payments. Shire shall pay to Amicus the Milestone
payments set forth below following the first achievement by Amicus or Shire, or any of their
Affiliates or Sublicensees, of the corresponding Milestone event set forth below with respect to a
Licensed Product:

	 	 	 
	Milestone Event	 	Milestone Payment Amount
	 
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]
	[***]
	 	$[***]

For purposes of clarity, the above payments for achievement of a Milestone shall only be paid once
under this Section 7.2.1 irrespective of how many Licensed Products achieve such Milestones. For
clarity, additional milestones may be due pursuant to Sections 6.2.1(c) and 6.3.5.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-37-

 

          7.2.2 Net Sales Milestone Payments. In addition, Shire shall pay to Amicus the
Milestone payments set forth below at such time as the aggregate annual Net Sales of all Licensed
Products during a particular calendar year first reaches the following amounts in the Shire
Territory:

	 	 	 
	Aggregate Annual Net Sales of All Licensed	 	 
	Products in the Shire Territory	 	Milestone Payment Amount
	 
	$[***]
	 	$[***]
	$[***]
	 	$[***]
	$[***]
	 	$[***]
	$[***]
	 	$[***]

Notwithstanding anything herein, in no event shall any two Milestone payments under this
Section 7.2.2 be due in the same calendar year; [***]. For purposes of clarity, the above payments
for achievement of a Milestone under this Section 7.2.2 shall only be paid once under this
Agreement.

          7.2.3 Reports and Payments. Each Party shall notify the other Party of its
achievement of any of the foregoing milestone events under Sections 7.2.1 and 7.2.2 (each, a
“Milestone”) and Amicus shall provide Shire an invoice of such Milestone achievement, and payment
of the amount corresponding to such Milestone, except as expressly provided otherwise in
Section 7.2.2, shall be due within fourteen (14) Business Days of receipt by Shire of an invoice of
such achievement. For the avoidance of doubt, the Milestone payments set forth in this Section 7.2
shall not be creditable against any future Milestone payments, royalties or other payments by Shire
to Amicus under this Agreement.

          7.2.4 Certain Terms. For purposes of the milestone payments due under Section 7.2.1:

	 	(a)	 	[***].
	 
	 	(b)	 	[***].
	 
	 	(c)	 	[***].
	 
	 	(d)	 	[***].
	 
	 	(e)	 	[***].

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-38-

 

               (f) For purposes of this Article 7, a [***] shall be deemed to constitute a [***] if the JDC
determines to proceed with filing an [***] based upon the use of Data from such [***] as a pivotal
trial.

               (g) A Milestone shall be deemed achieved for Fabry Disease, Gaucher Disease or Pompe Disease
if the Milestone is met for an indication involving such disease.

               (h) If, upon first achievement of a particular Milestone under Section 7.2.1 above with
respect to a particular Licensed Product, the amounts corresponding to any Milestone with respect
to such Licensed Product that precede such Milestone in the table under Section 7.2.1 above have
not been previously paid, then such previous amounts that have not been paid shall also become due
and payable subject to Section 7.2.2.

          7.2.5 Reversion. Notwithstanding the foregoing, if at the time the first Regulatory
Approval is obtained for a Licensed Product in the first Primary Market country in the Shire
Territory where (a) neither the sale nor use of such Licensed Product is covered by a Valid Claim
and (b) such Licensed Product has no regulatory or orphan drug exclusivity in such Primary Market
country, Shire may within thirty (30) days of such Regulatory Approval elect to (i) terminate this
Agreement in its entirety with respect to such Licensed Product, under Section 15.3.2, in which
case the Milestone payment for Regulatory Approval under Section 7.2.1 shall not be due for such
Licensed Product irrespective of Section 7.2, (ii) terminate this Agreement with respect to such
Licensed Product for the European Union only by providing notice as such and further no Milestone
payment for such Regulatory Approval shall be due at such time for such Licensed Product
irrespective of Section 7.2 or (iii) pay the Milestone payment for Regulatory Approval and
continues as otherwise provided in the Agreement. In the event Shire elects subsection (ii) above,
upon Regulatory Approval in the (x) first Secondary Country, Shire shall pay [***], (y) second
Secondary Country, Shire shall pay [***] and (z) remaining Secondary Country, Shire shall pay
[***], in each case of the Milestone payment that would have been paid upon the Regulatory Approval
of such Licensed Product had Shire not made its election to terminate this Agreement with respect
to such Licensed Product for the European Union. “Secondary Country” shall mean any one of the
following: Japan, Brazil or Israel. In the event Shire elects (ii), then the European Union
shall thereafter be included in the Amicus Territory with respect to such Licensed Product; and
Section 6.4.3 above shall apply to such Licensed Product with respect to the European Union (and in
the event of any dispute as to how Section 6.4.3 would apply in such case, the matter shall be
determined by the JSC).

          7.3 Royalties.  Subject to this Section 7.3, Shire shall pay to Amicus royalties at
the following rates on the Annual Net Sales (as defined below) by Shire, its Affiliates and its
Sublicensees of each Licensed Product:

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-39-

 

	 	 	 	 	 
	Royalty Tier	 	Annual Net Sales of Each Licensed Product	 	Royalty Rate
	 
	1

	 	Portion up to and including $[***]
	 	[***]%
	2

	 	Portion above $[***] and up to and
including $[***]
	 	[***]%
	3

	 	Portion above $[***] and up to and
including $[***]
	 	[***]%
	4

	 	               Portion above $[***]
	 	[***]%

          7.3.1 Calculation. For such purposes, “Annual Net Sales” means total Net Sales of a
particular Licensed Product in a particular calendar year for which royalties are due pursuant to
this Agreement. For purposes of this Agreement, units of Licensed Products shall be considered
sold, and the corresponding Net Sales shall be deemed to have accrued, when revenue is recognized
in accordance with U.S. GAAP.

          7.3.2 Generic Competition Reduction. Notwithstanding the foregoing, if there is
Generic Competition in a Calendar Quarter in a country within the Shire Territory with respect to a
Licensed Product, the royalties due on sales of Licensed Product for such Calendar Quarter in such
country shall be reduced as follows:

	 	 	 
	Percentage of Generic Competition in	 	Royalty Reduction on Net Sales from
	a Country	 	such Country
	 
	>[***]% <[***]%
	 	[***]%
	= [***]% <[***]%
	 	[***]%
	= [***]%
	 	[***]%

     “Generic Competition,” with respect to a Licensed Product in a country in the Shire Territory,
shall exist after one or more Generic Versions of such Licensed Product are being marketed in such
country. The percentage of Generic Competition in a country shall be calculated by dividing the
aggregate unit volume of Generic Version(s) of such Licensed Product by the total prescription unit
volume of such Licensed Product and such Generic Version(s) combined, in the aggregate, in such
country in a calendar quarter (as measured by a Scott-Levin Associates audit or other mechanism
determined by the JSC); and “Generic Version” shall mean a product that: (x) (1) with respect to
the European Union or Japan [***] and (2) with respect to all other countries in the Shire
Territory has the same active ingredient as the Compound in the Licensed Product and is legally
substituted by pharmacies in such country for the Licensed Product [***].

     The adjustment under this Section 7.3.2 shall be reconciled at the end of each calendar year
to take into account the total volume for the year of the particular Generic Version and such
Licensed Product and the royalty rate applicable for such calendar year under this Section 7.3.2 as

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-40-

 

determined by the JSC (such that total adjustment for the year shall be calculated on annual basis
for such calendar year).

          7.3.3 Gross Margin Adjustment.

               (a) In the event that Shire’s average Gross Margin (as defined below) for a particular
Licensed Product during any calendar quarter is less than [***]%, the difference between such
average Gross Margin and [***]% shall be offset against the royalties otherwise payable with
respect to such Licensed Product during such calendar quarter pursuant to Section 7.3 above,
provided, however, that in no event shall: (a) the total royalty rate under Section 7.3 be reduced
by more than [***]%, or (b) the royalty rate under Royalty Tier 1 be reduced to less than [***]%;
and in any event there shall be no such reduction, under this Section 7.3.3, of the royalty rates
under Royalty Tiers 3 and 4.

               (b) For purposes hereof:

                    (i) “Gross Margin” is defined as the Net Sales of such Licensed Product less the Manufacturing
Cost (as defined below) of such Licensed Product for the units of Licensed Product whose sale
generated the Net Sales for the period in question, provided, however, that for purposes of
calculating Shire’s Gross Margin under this Section 7.3.3, Shire’s Manufacturing Cost shall be
deemed not to exceed Amicus’ Manufacturing Cost for the same Licensed Product during the same
period; and

                    (ii) “Manufacturing Cost” is defined as, with respect to a Licensed Product sold by a Party:
(A)(1) the amount paid by such Party for such Licensed Product manufactured by a Third Party or
(2) the cost of direct materials and direct labor for such Licensed Product manufactured by such
Party or its Affiliate, plus a reasonable allocation of direct manufacturing overhead, not to
exceed [***] of such materials and labor costs; (B) the net cost or credit to such Party of any
value-added taxes or duties actually paid or utilized on account of such materials;
(C) out-of-pocket transportation costs, including clearance and storage of such materials (if
necessary), and transit insurance on account of such materials; (D) the costs of reasonable
quantities of material destroyed in quality control testing on account of such Licensed Product (as
such costs are calculated under clauses (A) through (C) above); and (E) in the case of a Licensed
Product manufactured by a Third Party, the internal costs of such Party pertaining to the
procurement of such materials (e.g., for quality assurance and quality control activities), not to
exceed [***] of the Manufacturing Cost of such Licensed Product.

     7.3.4 Third Party Royalties. If Shire is required (a) to enter into an agreement to
license or acquire rights under Third Party Patent Rights that are necessary to use, import,
Manufacture or Commercialize (i) a Compound contained in a Licensed Product or (ii) the Licensed
Products as existing as of the Effective Date and (b) pursuant to such agreement, to pay to a Third
Party royalties or other payments in order to use, import, Manufacture or Commercialize a
Licensed Product within the Field in a country of the Shire Territory, then Shire may deduct up to
[***] of the commercially reasonable royalty or other payments payable to such Third Party from the
royalty

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-41-

 

thereafter payable to Amicus under Section 7.3 above with respect to such Licensed Product
in such country, provided that the royalty paid to Amicus shall not be [***] of what Amicus would
have received otherwise pursuant to the terms of this Agreement; provided, further, that this
Section 7.3.4 shall not apply to Patent Rights listed on Schedule 7.3.4. In the event of a
dispute between the Parties whether such Third Party license is required, such dispute shall be
resolved by the JSC based upon the well reasoned opinion of qualified independent patent counsel
retained by the JSC.

          7.3.5 Reports and Royalty Payment. Within ten (10) Business Days after the end of
each calendar quarter, Shire shall deliver to Amicus a report setting out all details necessary to
calculate the royalty payments due under this Section 7.3 with respect to Net Sales made in that
calendar quarter, including:

               (a) units of Licensed Products sold in the Shire Territory during the relevant calendar
quarter [***];

               (b) gross sales of Licensed Products in the Shire Territory in the relevant calendar quarter
[***], including the gross sales price of each Licensed Product;

               (c) Net Sales of Licensed Products in the relevant calendar quarter on a country-by-country
basis;

               (d) all relevant deductions in accordance with Section 1.25 and this Section 7.3;

               (e) all relevant exchange rate conversions; and

               (f) such other information as requested by Amicus regarding the Commercialization of Licensed
Products in the Shire Territory as necessary to satisfy Amicus’ reporting obligations to its
licensors under the Existing In-Licenses.

     Any amounts due under this Section 7.3 for such calendar quarter shall be paid within thirty
(30) days after the end of such calendar quarter.

          7.3.6 Royalty Term. The obligation of Shire to pay royalties pursuant to this
Section 7.3 shall continue for each Licensed Product, on a Licensed Product-by-Licensed Product and
country-by-country basis, until the latest of:

               (a) Expiration of the last to expire Valid Claim covering the use, importation, or sale of
such Licensed Product in the country of sale;

               (b) The loss of all regulatory exclusivity (including orphan drug exclusivity) to market such
Licensed Product in such country; or

               (c) Fifteen (15) years after the First Commercial Sale of such Licensed Product in such
country.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-42-

 

     7.4 Development Cost Sharing7.4.1 Development Costs. Subject to the terms and
conditions of this Agreement, each Party shall be responsible for fifty percent (50%) of all
Development Costs incurred in accordance with the Development Plans.

          7.4.2 Cost Overruns. With respect to Development Costs to be shared by the Parties
under Section 7.4.1 above, if the total Development Costs incurred by a Party (such party, the
“Spending Party”) in a calendar year exceed the costs budgeted for such Party in the applicable
then current Development Plan, then the other Party shall continue to bear its share of such costs
under Section 7.4.1 above, notwithstanding such overrun, up to its share of [***] of the budgeted
amounts (the “Permitted Overrun”), but such other Party shall not be responsible for its share of
such aggregate costs in excess of the Permitted Overrun (the “Excess Costs”), without the approval
of the JSC, which shall not be unreasonably withheld.

          7.4.3 Commercialization Costs. For clarity, it is understood that each Party shall be
responsible for all Commercialization costs incurred by such Party.

          7.4.4 Procedure for Sharing Development Costs.

               (a) Each Party shall calculate and maintain records of all Development Costs incurred by it in
accordance with Section 7.8.

               (b) So that the Parties will share equally the Development Costs incurred in accordance with
the Development Plans pursuant to Section 7.4.1 above, balancing payments shall be made as follows:
On or before the fifteenth day of each month, the Party who is budgeted to incur the lesser amount
of Development Costs during such month (as reflected in the then current Development Plans) (the
“Reimbursing Party”) shall pay to the other Party (the “Receiving Party”) an amount equal to
(i) fifty percent (50%) of the Development Costs budgeted to be incurred by the Receiving Party
during such month, less (ii) fifty percent (50%) of the Development Costs to be incurred by the
Reimbursing Party during such month, all in accordance with the Development Plans then in effect.
Unless otherwise specified in the applicable Development Plan, amounts budgeted thereunder for a
period exceeding the length of a month will be deemed budgeted in equal amounts for each month
within such period. Within ten (10) days following the last day of each month during any period in
which activities are being performed under a Development Plan hereunder, each Party shall provide
to the other a good faith estimate of the Development Costs actually incurred by such Party during
the month then ended, in a form determined by the JDC.

               (c) The Parties shall use good faith efforts to keep each other apprised of variances in
Development budgets and to notify each other with respect thereto.

               (d) Within thirty (30) days following the last day of each calendar quarter (March 31,
June 30, September 30, and December 31) during the Term, the Parties shall reconcile the advanced
payments made in accordance with paragraph (b) above with the Development Costs actually incurred
to date by each Party, and within such thirty (30) day period the Parties shall make such balancing
payment(s) as are necessary to achieve the result that each Party has funded fifty

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-43-

 

percent (50%) of
the total Development Costs through such March 31, June 30, September 30 or December 31 date, as
applicable.

               (e) Any dispute regarding Development Costs under this Section 7.4 shall be resolved by the
JDC. The existence of any dispute regarding Development Costs or any other matter under this
Section 7.4 shall not relieve a Party of its obligation to continue to pay prospectively each month
its allocated portion of Development Costs in accordance with this Section 7.4 and the Development
Plans. In the event of any such dispute, any undisputed amount shall be paid within the time
periods specified in this Section 7.4, and the Party disputing any amount shall pay to the other
Party within such time periods [***] of the disputed amount.

          7.4.5 Funding Under Initial Development Plans. It is understood that, beginning upon
the Effective Date, the Parties will fund in accordance with this Section 7.4 the Development
Costs incurred by Amicus under the initial Development Plans attached as Appendix 4. The Parties
acknowledge, however, that the number of FTEs reflected in such initial Development Plans has not
been agreed as of the Effective Date. Accordingly, if the final Development Plans established in
accordance with Section 4.2.5(b) provide for fewer FTEs than those reflected in such initial
Development Plans (or if the Parties sooner agree on a lower number of FTEs), then Shire shall
receive a credit for its portion of the costs of such excess FTEs reimbursed by Shire under this
Section 7.4, in the amount of one half of the FTE Rate multiplied by the number of such excess
FTEs, prorated for the period of time from the Effective Date until the date such final Development
Plans are so approved. Such credit shall be applied in equal monthly amounts over the first six
months following the approval of such final Development Plans.

     7.5 Payments under Existing In-Licenses. 

          7.5.1 Generally. Other than as specifically provided in Sections 7.5.2, 7.5.3. 10.2.1
and 10.2.2 below, Shire shall have no responsibility for Third Party payments due with respect to
the Development, Manufacture or Commercialization of the Licensed Products under the Existing
In-Licenses, and such payments shall be borne solely by Amicus.

          7.5.2 Royalty Reductions. Amicus shall be responsible for paying any royalties owed
to Third Parties under Amicus’ Existing In-Licenses. However, during the royalty term (as
determined under Section 7.3.6) where a reduction of royalties due to Amicus under Section 7.3 with
respect to a Licensed Product in a country of the Shire Territory occurs under Sections 7.3.2,
7.3.3, 7.3.4, 7.3.6 or 15.5.4 of this Agreement [***] with respect to sales of such Licensed
Product in such country, Shire shall promptly reimburse Amicus [***]. If, with respect to a
Licensed Product, upon the [***] Amicus continues to be obligated to make royalty payments to a
Third Party under an Existing In-License with respect to sales of such Licensed Product in such
country, then (x) Amicus shall promptly notify Shire of the amount of such royalty rate for sales
of such Licensed Product and the period for which it is obligated to make such payments in such
country and (y) within thirty (30) days after receipt of such notice Shire shall notify Amicus of
its election to (1) terminate its sublicense under such Existing In-License in which case such
sublicense will terminate whereby no further royalties shall be due from Shire for sales of such
Licensed Product in such country or (2)

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-44-

 

make royalty payments to Amicus for the amounts owed by
Amicus under such Existing In-License for the period so specified in the notice provided under
subsection (y) above and at the lower of the royalty rate so specified in such notice and the
applicable rate specified in subsection (b) above.

          7.5.3 Sublicenses. In the event that the granting of a Sublicense under the rights
granted to Shire under Section 2.1 triggers any payment obligation by Amicus under any Existing
In-License (other than the payment of running royalties), Shire shall be responsible for, and shall
promptly pay to Amicus upon request, any such amounts when they become due.

     7.6 Other Payment Terms. 

          7.6.1 Payment Method. All payments between the Parties under this Agreement (including,
without limitation, the payments due under this Article 7) shall be made by bank wire transfer in
immediately available funds to an account designated by the Party to which such payments are due.
All payments due under this Agreement which are not timely paid shall bear interest to the extent
permitted by Law at a rate equal to the U.S Prime Lending Rate, as quoted in The Wall Street
Journal (U.S. Eastern Edition), effective for the date on which the payment was due. This
Section 7.6.1 shall in no way limit any other remedies available to the Parties.

          7.6.2 Currency. All dollar amounts in this Agreement are stated in, and all payments
under this Agreement shall be made in, United States Dollars. With respect to amounts invoiced or
incurred in a currency other than United States Dollars, (i) for calculation of Net Sales, the
amount in foreign currencies shall be converted into United States Dollars using the average rate
of exchange for such currencies for the relevant month as sourced from www.oanda.com, and (ii) for
calculation of all other sums due under this Agreement, the amount in foreign currencies shall be
converted into United States Dollars using the exchange rate for such currencies for the date of
the respective invoice and where such exchange rate shall be the mid-price exchange rate taken from
Bloomberg as published on the date of the relevant invoice or such other publication as may be
mutually agreed between the Parties.

     7.7
Taxes

          7.7.1
Notice. Each Party will provide the other Party with
reasonable advance notice of tax withholding obligations to which it reasonably believes that it is
subject. Any withholding or other taxes that either Party is required by law to withhold or pay on
behalf of the other Party, with respect to any payments to such other Party hereunder or any of the
Related Agreements, shall be deducted from such payments and paid to the appropriate tax authority
contemporaneously with the remittance to the other Party, provided, however, that the withholding
Party shall furnish the other Party with proper evidence of the taxes so paid. Each Party shall
cooperate with the other and furnish the other Party with appropriate documents to secure
application of the most favorable rate of withholding tax under Law (or exemption from such
withholding tax payments, as applicable), and, at the request of the payee Party, payment of any
amount subject to withholding shall be deferred until the appropriate documents have been
furnished.

          7.7.2 Certain Taxes.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-45-

 

               (a) Notwithstanding Section 7.7.1 above, subject to compliance with Section 7.7.2(b) and (c)
below any payments to Amicus hereunder shall be made free and clear of, and Shire shall indemnify
and hold Amicus harmless against, any Irish tax (whether withheld at the source or otherwise)
imposed on or in relation to any payment made under this Agreement that would not have arisen had
the paying entity been a corporation formed under the laws of the United States; provided, however,
that Shire shall not be required to indemnify Amicus for Irish taxes imposed on the net income of
Amicus by reason of Amicus (or its successors under Section 16.1 below) having (or having
attributable to it) a permanent establishment, branch, agency or Irish tax resident corporation in
Ireland, other than a permanent establishment, branch, agency or Irish tax resident corporation
created as a result of Amicus entering into this Agreement or undertaking any action required
under this Agreement.

               (b) Amicus agrees to use diligent efforts to obtain, as promptly as practicable after the
Effective Date, a completed US tax Form 6166 from the IRS and shall forward it with a completed
Irish tax Form IC3/6166 to Shire requesting that the Irish Revenue Commissioners issue a direction
to Shire to make all payments under this Agreement without withholding or deduction for or on
account of Irish tax. In addition, Amicus agrees to use diligent efforts, upon request and at
the expense of Shire, to recover from the Irish Revenue Commission any refundable tax, and/or to
challenge an assessment of any other Irish tax, indemnified by Shire under Section 7.7.2(a) above.

               (c) Amicus warrants that as of the Effective Date it is, and the indemnity and agreement not
to withhold under Section 7.7.1 above is conditioned upon Amicus (and its successors under Section
16.1) being on the date of any payment under this Agreement, a resident in the United States for
the purposes of the Convention between the Government of Ireland and Government of the United
States of America for the avoidance of double taxation and the prevention of fiscal evasion with
respect to taxes on income and capital gains signed 28th day of July, 1997.

     7.8 Records Retention; Audits. 

          7.8.1 Record Retention. Each Party will maintain complete and accurate books, records
and accounts used for the determination of expenses incurred in connection with the performance of
Development of Licensed Products within the Field (and of [***] for [***]’s) or otherwise relevant
for the calculation of Net Sales, in sufficient detail to confirm the accuracy of any payments
required under this Agreement, which books, records and accounts will be retained by such Party for
five (5) years after the end of the period to which such books, records and accounts pertain, or
longer as is required by Law.

          7.8.2 Request. Upon the written request of a Party (the “Auditing Party”) and not
more than once each calendar year, the other Party (the “Responding Party”) shall permit the
Auditing Party, accompanied by an independent certified public accounting firm of internationally
recognized standing, selected by the Auditing Party and reasonably acceptable to the Responding
Party, to have access during normal business hours to the records of the Responding Party as may be

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-46-

 

reasonably necessary to verify the accuracy of the financial reports and calculations made under
this Article 7 for any quarter ending not more than five (5) years prior to the date of such
request.

          7.8.3 Discrepancies. If, as a result of such audit, it is established that additional
amounts were owed by the Responding Party for the audited period, such Party shall pay such
additional amounts within thirty (30) days after the date such discrepancy is established. The
determination by such public accounting firm shall be definitive and final. The fees charged by
such accounting firm shall be paid by the Auditing Party; provided, however, that if the audit
establishes that the aggregate amounts payable by the Responding Party for the period covered by
the audit are more than one hundred five percent (105%) of the aggregate amounts actually paid for
such period, then the Responding Party shall pay the reasonable fees and expenses charged by such
accounting firm. The Auditing Party shall treat all financial information subject to review under
this Section 7.8 as confidential, and shall cause its accounting firm to retain all such financial
information in confidence.

ARTICLE 8

MANUFACTURING AND SUPPLY

     8.1 General.  It is understood that Amicus procures supplies of Licensed Products from
Third Party contractors. Accordingly, subject to the terms and conditions of this Agreement,
Amicus shall cooperate with Shire to obtain from such Third Party contractors quantities of
Licensed Products and Compounds (collectively, the “Materials”) to supply Shire’s reasonable
requirements for Materials for the Shire Territory. In furtherance of the preceding sentence:

          8.1.1 Procedures for Clinical Supply. The JDC shall establish as soon as practicable
following the Effective Date procedures for the supply of Licensed Products to Shire for
use in performing Shire’s Development activities under the Development Plan or Independent
Projects.

          8.1.2 Interim Procedures. Pursuant to such procedures:

               (a) Amicus shall procure Materials on behalf of and as reasonably requested in writing by
Shire, consistent with Amicus’ arrangements with its suppliers; and

               (b) Materials ordered by Amicus from such supplier on behalf of Shire shall be charged to the
Development Costs, or Shire (in the case of an Independent Project) in an amount equal to the
amount paid by Amicus for such Materials, plus (i) any other documented out-of-pocket costs
incurred by Amicus directly in connection with procuring such Materials, and (ii) any internal
costs of Amicus pertaining to the procurement of such Materials (e.g., for quality assurance and
quality control activities), provided that such internal costs do not exceed [***] of the overall
cost of such Materials.

     8.1.3 Form. The Materials supplied to Shire pursuant to Section 8.1 above shall be
supplied in the same form as like Materials are supplied to Amicus, or as otherwise established by

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the JDC or by agreement of the Parties, it being understood that any differences in such form
requested by Shire shall be at Shire’s expense.

          8.1.4 Shortage of Supply. The procedures and arrangements to be established by the
JDC under Section 8.1.1 above shall include reasonable mechanisms to avoid shortage of supply,
including procedures for buffer stock inventories to be maintained by the Parties on a
proportionate basis, and/or establishing second source manufacturers or manufacturing sites. If,
prior to the establishment and implementation of such procedures, Shire’s requirements of Materials
cannot be fulfilled in accordance with this Article 8, the total available quantities of Licensed
Products shall be allocated among the Parties on a reasonable worldwide basis (based upon the needs
of the Development Plans and any Independent Projects, and if such Licensed Product is then being
Commercialized, sales history and reasonably forecasted demand for such Licensed Product), as
determined by the JSC.

     8.2 Supply Agreement.  Upon Shire’s written request, the Parties shall use good faith
efforts to enter into a commercial supply agreement (a “Supply Agreement”) within six (6) months of
such request consistent with this Article 8 on commercially reasonable terms documenting the
arrangement by which Amicus shall supply Shire’s reasonable requirements for Materials at cost for
the Shire Territory, which Supply Agreement shall contain forecasting and ordering procedures
(including lead times), product specifications, delivery terms and other appropriate provisions and
be consistent with Amicus’ contractual arrangements with its Third Party suppliers.

     8.3 Limitation; Manufacturing by Shire.  Amicus shall (a) cooperate fully with Shire to make available for the benefit of Shire the
benefits of Amicus’ supply agreements and/or arrangements with its Third Party suppliers of
Materials and (b) administer such agreements or arrangements diligently and pursue its rights and
remedies thereunder. It is understood, Amicus shall not be liable for a default or a failure of
supply due to default of the Third Party suppliers. Notwithstanding anything in this Agreement,
after the first Phase II Clinical Trial for a Licensed Product, Shire shall have the right to
Manufacture, or engage a Third Party to Manufacture, Shire’s requirements of Materials for the
Shire Territory. Promptly following Shire’s request, Amicus shall transfer, or cause to be
transferred, to Shire or such Third Party manufacturer all Amicus Know-How that is necessary,
useful or actually used for such Manufacture of Materials (and the cost of such transfer of Amicus
Know-How shall be shared equally by the Parties), and shall make personnel of Amicus reasonably
available to assist Shire and/or its contractor in implementing the Amicus Know-How necessary to
Manufacture such Materials. In any event the Parties shall cooperate to use the same process in
Manufacturing Materials for use in Development.

ARTICLE 9

REGULATORY MATTERS

     9.1 Regulatory Responsibilities.  Unless otherwise agreed between the Parties:

          9.1.1 Amicus Territory Regulatory Responsibility. As between the Parties, Amicus
shall be responsible for filing, obtaining and maintaining, in its own name, Regulatory Filings and

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Regulatory Approvals for Development and Commercialization of Licensed Products in the Amicus
Territory except as otherwise provided in the Development Plan.

          9.1.2 Shire Territory Regulatory Responsibility. As between the Parties, Shire shall
be responsible for filing, obtaining and maintaining, in its own name, Regulatory Filings and
Regulatory Approvals for Development and Commercialization of Licensed Products in the Field in the
Shire Territory except as otherwise provided in the Development Plan.

     9.2 Filings and Meetings with Regulatory Authorities.

          9.2.1 Regulatory Filings and Correspondence. The Party with responsibility for
regulatory matters in a Primary Market country shall provide the other Party’s representatives on
the JDC with copies of all Regulatory Filings and all minutes of any meetings, telephone
conferences and/or discussions with the Regulatory Authority of such Primary Market country, and
shall promptly notify the other Party’s representatives on the JDC with respect to any material
changes or material matters that may arise in connection with Regulatory Approvals of Licensed
Products within such Primary Market country, in each case to the extent it has the right to do so.
Each Party will provide the other Party with translations of such documents into English to the
extent prepared or obtained for its own use and requested by the other Party. Notwithstanding the
foregoing, during the Term, Amicus shall not have the right to use for purposes of obtaining
Regulatory Approval of
Amigal for Fabry Disease in the Shire Territory any Regulatory Filing generated under the
applicable Development Plan by Shire, for so long as Amigal remains a Licensed Product hereunder.

          9.2.2 Meetings. The Party with primary responsibility for regulatory matters in a
Primary Market within the Shire Territory shall, to the extent reasonably practicable: (a) promptly
provide the JDC with reasonable advance written notice of any material Regulatory Filings,
meetings, telephone conferences and/or other discussions with the Regulatory Authority of such
country (including in all cases the EMEA), scheduled or unscheduled, that pertain to Licensed
Products in the Field, (b) afford representatives of such other Party an opportunity to comment on
such Regulatory Filings, and accept such comments or notify such other Party of the reason for not
accepting any such comments, and (c) afford representatives of such other Party an opportunity to
attend all such meetings, telephone conferences and/or discussions with the Regulatory Authority of
such country solely in an observatory capacity. For clarity, Shire shall be the Party with primary
responsibility for regulatory matters in the Shire Territory unless otherwise provided in the
Development Plan.

     9.3 Adverse Events and Post-Market Surveillance.  With respect to adverse drug
experiences, as defined by 21 C.F.R. Section 314.80 and/or 600.80 (as applicable), and IND safety
reports, as referenced in 21 C.F.R. Section 312.32, and like regulations of other Regulatory
Authorities, the Party with regulatory responsibility for a country shall be responsible for and
shall establish operating procedures to report to the appropriate Regulatory Authority in that
country all adverse drug experiences in accordance with the Laws of the relevant countries and
agencies. The Parties agree to implement, as soon as reasonably practicable, a separate agreement
setting forth the

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pharmacovigilance responsibilities and procedures for safety information exchange
(the “Pharmacovigilance Agreement”). The Pharmacovigilance Agreement shall contain such terms as
are reasonable and customary for arrangements of this type, and shall in all events include such
terms as are necessary to ensure that both Parties are able to comply with applicable Laws
pertaining to adverse events and safety reporting and provide that there shall be one global safety
database maintained by Amicus or its designee and accessible to both Parties. The JDC shall
determine standard operating procedures by which the Parties shall have access to such global
safety database.

     9.4 Common Registration Dossier.  A primary objective of each Development Plan is to
Develop and produce a common registration dossier to serve as a basis for license applications to
be filed in each of the Primary Market countries. Unless otherwise determined by the JDC, Amicus
shall be responsible for preparing such common registration dossier, and the costs incurred in
connection therewith shall be deemed to be Development Costs for purposes of this Agreement.

     9.5 Regulatory Inspections.  If either Party or its Affiliates or contractors (an “Inspected Party”) are to be inspected
by a Regulatory Authority regarding the Development or Manufacture of a Licensed Product, in each
case within the Field, the Inspected Party shall promptly notify the JDC of the inspection in
advance. The Inspected Party shall, where practicable, permit representatives of each of Shire and
Amicus to participate as observers with respect to such inspection, and shall provide the JDC with
a written report of any such inspection, noting with specificity any records or documents reviewed
by the regulatory inspector, and including copies of any FDA 483s (or their foreign equivalent) or
written communications provided by any Regulatory Authority relating to such inspection. The
Inspected Party shall also provide an opportunity for the JDC to assist in responding to any issues
or concerns relating to such inspections, and shall provide copies of all communications to and
from any Regulatory Authority relating thereto to the JDC. The Parties shall cooperate in good
faith and otherwise mutually support any such inspections by the FDA or other Regulatory Authority
of facilities, clinical investigators or contract manufacturers. In furtherance of the preceding
sentence, if the Inspected Party receives a request by a Regulatory Authority to inspect any
facilities of the other Party, such other Party shall cooperate with and makes its facilities
available for such inspection.

     9.6 Audit Rights.  Each Party shall have the right, during normal business hours, and
no more than once per year, with more frequent audits upon agreement of the Parties, to inspect and
audit: (a) those portions of the facilities of each Party, Affiliate, Sublicensee, subcontractor
and investigator site used in the performance of the applicable Development Plan or the
Manufacturing of Materials to be supplied hereunder, to ascertain compliance with Laws and
Regulatory Approvals, including cGLP, cGCP and cGMP, and conformance with the applicable
specifications and quality assurance standards, provided that the inspecting Party shall on such
occasions be accompanied by a representative of the other Party; and (b) any of the other Party’s
documentation or its Affiliates’, Sublicensees’, subcontractors’ or investigators’ documentation
relating to such Development Plan or Manufacturing of the Materials to be supplied hereunder,
including, to the extent permitted by Law and any privacy policies, the medical records of any
patient participating in any clinical study under the Development Plan. A Party’s audit rights
shall be limited by pre-existing bona fide Third Party

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agreements or confidentiality obligations,
provided, however, that each Party shall use its reasonable efforts to (1) obtain audit rights for
the other Party under such pre-existing agreements and (2) ensure such other Party is granted audit
rights to the same extent which a Party has audit rights in any future agreements.

ARTICLE 10

INTELLECTUAL PROPERTY

     10.1 Ownership. 

          10.1.1 Clinical Data. To the extent a Party has the right to do so, each Party shall
assign to the other Party a joint ownership interest in all Data with respect to Licensed Products
generated in the course of performing clinical trials conducted under the Development Plans,
excluding any inventions and Patent Rights therein (which are addressed in Section 10.1.2 below).
For clarity, it is understood that the foregoing applies only to clinical data, and does not apply,
for example, to related Regulatory Filings.

          10.1.2 Inventions; Patent Rights.

               (a) Subject to Section 10.1.2(b) below, title to all inventions, and all Patent Rights
therein, made solely by Shire personnel in connection with this Agreement shall be owned by Shire
(“Shire Invention”); title to all inventions, and all Patent Rights therein, made solely by Amicus
personnel in connection with this Agreement shall be owned by Amicus (“Amicus Invention”); and
title to all inventions, and all Patent Rights therein, made jointly by personnel of Amicus and
Shire in connection with this Agreement shall be jointly owned by Amicus and Shire (“Joint
Inventions”). For such purposes, a Party’s personnel shall include personnel of such Party’s
Affiliates who are engaged in the Development or Commercialization of Licensed Products (to the
extent such personnel are carrying out activities in connection with this Agreement).

               (b) Notwithstanding paragraph (a) above, Shire hereby each grants and agrees to grant, to
Amicus an exclusive license, with the right to sublicense, under Shire Inventions, and Shire’s
interest in Joint Inventions, that are made in connection with the Development or use of Compounds
or Licensed Products, in each case that are improvements to the chaperone composition technology
covered by the Amicus Patent Rights, or the manufacture, testing or use thereof, or that constitute
a modification of a Compound, to make, use, sell, offer for sale and import and otherwise exploit
such inventions subject to the inclusion of such inventions in the licenses granted in Article 2.

               (c) In addition, Shire hereby grants to Amicus a non-exclusive license, with right to
sublicense, to practice and otherwise exploit Patent Rights in Shire Inventions made by Shire in
connection with the Development or use of a Compound or Licensed Product.

          10.1.3 Joint Ownership.

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               (a) Except as expressly provided in this Agreement (including Section 10.1.3(b) below), it is
understood that neither Party shall have an obligation to obtain approval of, nor pay a share of
the proceeds to, the other Party to practice, enforce, license, assign or otherwise exploit Joint
Inventions and Data jointly owned pursuant to Section 10.1 above, and each Party hereby waives any
right it may have under the applicable Laws of any jurisdiction to require such approval or
accounting. The Parties shall reasonably cooperate with each other and take any actions reasonably
necessary to effect the purposes of this Section 10.1.3.

               (b) Notwithstanding the foregoing, neither Party shall, without the consent of the other Party
(which consent shall not be unreasonably withheld), grant to a Third Party a
license under Patent Rights in a Joint Invention, other than (i) in connection with a
collaboration with such Third Party, (ii) for use with products developed in whole or in part by
such Party, or (iii) together with other technology or intellectual property Controlled by such
Party.

     10.2 Patent Filing, Prosecution, and Maintenance10.2.1  By Shire. Shire shall
have the right to control the filing for, prosecution and maintenance of the Amicus Patent Rights
in the name of Amicus (or Amicus’ Licensor), excluding the Ex-U.S. Platform Patent Rights, solely
with respect to the Licensed Products in the Field in all jurisdictions outside the United States
using counsel of its choice, and Amicus shall reimburse Shire for [***] of the out-of-pocket
expenses reasonably incurred by Shire in performing such activities.

          10.2.2 By Amicus. Amicus shall have the right to control the filing for, prosecution
and maintenance of: (a) the Amicus Patent Rights in the United States and (b) the Ex-U.S. Platform
Patent Rights in all jurisdictions outside the United States, using counsel of its choice, and
Shire shall have the option to either reimburse Amicus for fifty percent (50%) of the out-of-pocket
expenses reasonably incurred by Amicus in performing the activities under (b) above or, within
sixty days of a request for such reimbursement, opt to have such Patent Rights excluded from the
licenses granted herein (in which case such Patent Rights shall be excluded from Amicus Patent
Rights hereunder and Section 7.5.2 shall not apply for amounts due by Amicus to a Third Party under
such Existing In-License where all Amicus Patent Rights under such Existing In-License have been
excluded from the licenses granted herein and no such Patent Rights cover Manufacturing of
Materials by Amicus for Shire).

          10.2.3 Jointly Owned Patent Rights. The filing for, prosecution and maintenance of
Patent Rights covering Joint Inventions (the “Joint Patent Rights”) shall be as determined by the
Parties, and the out-of-pocket costs thereof shall be shared equally by the Parties.

          10.2.4 Right to Consult and Advise. During the Term, each Party filing for,
prosecuting and/or maintaining Patent Rights pursuant to this Section 10.2 (the “Prosecuting
Party”) shall copy the other Party, or have the other Party copied, on all material or substantive
documents regarding such Patent Rights, in each case that are directly related to Licensed Products
in the Field or cover Joint Patent Rights, which are received from or to be filed in any patent
office in the Territory, promptly following receipt from the patent office and within a reasonable
time prior to filing with the patent office (but not less than thirty (30) days), as applicable,
including copies of

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each patent application, office action, response to office action, declaration,
information disclosure statement, request for terminal disclaimer, request for patent term
extension and request for reexamination. Consistent with the foregoing, such other Party shall
have the right to comment on the prosecution of such Patent Rights, in each case that are directly
related to Licensed Products in the Field or are Joint Patent Rights, by the Prosecuting Party and
provide such comments to the Prosecuting Party’s patent counsel, and the Prosecuting Party shall
consider all such comments in good faith. If such other Party fails to provide its comments with
respect to the prosecution by the Prosecuting Party of such patent application or patent reasonably
in advance of the deadline for filing or otherwise responding to the relevant matter in the
relevant patent office (but not less than
five (5) Business Days), the Prosecuting Party shall be free to act without consideration of
such other Party’s comments, provided that the Prosecuting Party has provided the other Party with
the relevant information not less than ten (10) Business Days prior to such deadline or response.

          10.2.5 Abandonment of Prosecution. The Prosecuting Party will notify the other Party
in the event it desires to abandon its efforts with respect to the prosecution and maintenance of
any Patent Rights being prosecuted by the Prosecuting Party under this Section 10.2, to the extent
such Patent Rights pertain to the Licensed Products in the Field in the Shire Territory or the
Joint Patent Rights. Notification will be given within a reasonable period (i.e., with sufficient
time for such other Party to take whatever action may be necessary) prior to the date on which such
Patent Rights will lapse, go abandoned (other than to file continuation application for the same
subject matter) or otherwise diminish (but not less than sixty (60) days). Such other Party (the
“Acting Party”) will then have the right, exercisable upon written notification to the Prosecuting
Party, to assume full responsibility, at its discretion and its sole cost and expense, to file,
prosecute, maintain or conduct any interferences, re-examinations, reissues and oppositions in the
Shire Territory, or in the case of Joint Patent Rights, any country or countries; provided that, in
the case of Shire being the Acting Party with respect to Patent Rights (other than Joint Patent
Rights) Controlled by Amicus, such right shall be limited to the extent such Patent Rights pertain
to a Licensed Product in the Field in the Shire Territory.

          10.2.6 Scope of Activities. For the purposes of this Section 10.2, “prosecution and
maintenance” shall mean, with respect to a patent, the preparing, filing, prosecuting and
maintenance of such patent, as well as re-examinations, reissues and requests for patent term
extensions and the like with respect to such patent, together with the conduct of interferences,
the defense of oppositions and other similar proceedings and appeals thereof with respect to a
patent, but shall not include enforcement litigation or the defense of declaratory judgment
actions. Also, as used in this Section 10.2, to “abandon” particular Patent Rights shall include
deciding not to defend against an opposition, not to defend an interference or similar proceeding,
not to pursue an appeal of an adverse decision or not to pursue particular claims, in each case
with respect to such Patent Rights in the United States Patent & Trademark Office or a
corresponding patent examining authority in another country.

     10.3 Enforcement Against Third Parties. 

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          10.3.1 Notice. If either Party reasonably believes that a Third Party is conducting
any activities in the Shire Territory that may constitute actual or potential infringement of the
Amicus Patent Rights, in each case with respect to a Generic Version of a Licensed Product or a
Related Product in the Field in the Shire Territory (each, an “Alleged Infringement”), such Party
shall promptly notify the other Party of such activities.

          10.3.2 Shire’s First Right to Enforce. Except as otherwise agreed, Shire shall have
the first right to bring and control any action or proceeding under such Patent Rights in respect
to an
Alleged Infringement occurring in the Shire Territory. If Shire fails to bring an action or
proceeding with respect to an Alleged Infringement occurring in the Shire Territory within one
hundred twenty (120) days following a request by Amicus to do so, Amicus shall have the right to
bring and control any such action or proceeding with respect to Amicus Patent Rights.

          10.3.3 Cooperation. The Parties shall reasonably cooperate with each other in all
actions or proceedings described in this Section 10.3, to the extent pertaining to an Alleged
Infringement. The non-controlling Party agrees to be joined as a party plaintiff if necessary to
prosecute the action or proceeding and shall provide all reasonable cooperation (including any
necessary use of its name) required to prosecute such litigation; provided that the controlling
Party shall reimburse the non-controlling Party for out-of-pocket expenses reasonably incurred in
providing such cooperation at the controlling Party’s request. The non-controlling Party will be
entitled to be represented by counsel of its own choice at its own expense.

          10.3.4 Recoveries. Any recovery obtained by any Party as a result of any proceeding
described in this Section 10.3, by settlement or otherwise, shall be applied in the following order
of priority: (a) first, to reimburse each Party for all litigation costs in connection with such
proceeding paid by that Party and not otherwise recovered (on a pro rata basis based on each
Party’s respective litigation costs, to the extent the recovery was less than all such litigation
costs); and (b) second, the remainder shall be shared in the ratio of two-thirds (2/3) to Shire and
one-third (1/3) to Amicus.

     10.4 Defense of Infringement Claims.  If a Licensed Product becomes the subject of a
Third Party’s claim or assertion of infringement of a patent relating to the making, using, sale,
offer for sale or importation of such Licensed Product within the Field in the Shire Territory, the
Party first having notice of the claim or assertion shall promptly notify the other Party, and the
Parties shall promptly confer to consider the claim or assertion and the appropriate course of
action. If the claim or assertion names Shire as Defendant, then Shire shall have the right to
control the defense of any proceeding, and Amicus shall have right to join in such defense at its
own expense. Unless the Parties otherwise agree in writing, each Party shall have the right to
defend itself against a suit that names such Party as a defendant, and the other Party shall have
the right to join in such defense at its own expense. Neither Party shall enter into any settlement
of any action described in this Section 10.4, or otherwise consent to an adverse judgment in any
such action, that imposes a financial obligation on the other Party, or that admits the
infringement or validity of any Third Party Patent without the other Party’s written consent, which
consent shall not be unreasonably withheld. In any event, each Party shall reasonably assist the
other Party and cooperate in connection with any

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litigation in which such Party is not named as a
defendant, at the defending Party’s request and expense.

     10.5 Patent Marking.  Shire agrees to mark, and require their contractors and
permitted Sublicensees to mark, all Licensed Products sold or distributed for the Shire Territory
pursuant to this Agreement in
accordance with the applicable patent statutes or regulations in the country or countries of
Manufacture or sale thereof, to the extent required by Law.

     10.6 License of Third Party Rights.  . 

          10.6.1 Existing Third Party Technology. It is understood that certain Patents Rights
for the Shire Territory within the Amicus Patent Rights have been in-licensed pursuant to certain
existing in-license agreements listed in Exhibit 10.6.1 hereto (the “Existing
In-Licenses”). As required for the furtherance of the objectives of this Agreement, Amicus shall
maintain the Existing In-Licenses and timely pay all fees due thereunder. In addition, it is
understood by the Parties that their respective rights under Sections 10.2 and 10.3 above with
respect to the Amicus Patent Rights licensed to Amicus under the Existing In-Licenses are subject
to and limited by the applicable terms and conditions of the Existing In-Licenses. Amicus agrees
to use Commercially Reasonable Efforts to persuade its licensors pursuant to such licenses
(“Licensors”) to fully cooperate with Shire in the defense or prosecution of any proceedings
hereunder, and shall use reasonable efforts to cause the Licensors not to enter into any
settlement, agreement, consent judgment or other voluntary final disposition of any proceeding or
threatened proceeding which would adversely affect Shire or its rights and licenses hereunder.

          10.6.2 Third Party Technology Acquired after Effective Date. In addition, if after
the Effective Date, Amicus or Shire (the “Sublicensing Party”) acquire rights from a Third Party
that are to be licensed to the other Party under this Agreement, including with respect to a
Related Product or Back-Up Compound under Section 6.3 or 6.4.4, respectively (“Third Party
Technology”), but that is subject to royalty or other payment obligations to the Third Party, then
the following shall apply: The licenses granted to the other Party (the “Commercializing Party”)
hereunder with respect to such Third Party Technology shall be subject to the Commercializing
Party’s promptly reimbursing the Sublicensing Party for any milestone payments, royalties or other
amounts that become owing to such Third Party by reason of the Commercializing Party’s exercise of
such license or sublicense to the Third Party Technology. To the extent that any such payments
made by a Party under an agreement to acquire Third Party Technology are not attributable to either
Territory, but are attributable to the acquisition of rights to a Third Party Technology used for a
Licensed Product, a reasonable portion of such amounts as determined by the JSC shall be deemed
Development Costs to be shared under Section 7.4.1 (unless excluded from the licenses hereunder as
provided in this Section 10.6.2). At the inception of the inclusion of any Third Party Technology
in such license under this Agreement and thereafter upon request by the Commercializing Party, the
Sublicensing Party shall disclose to the Commercializing Party a true, complete and correct written
description of such payment obligations, and the Commercializing Party’s obligation to reimburse
such amounts following such request shall be limited to those payment obligations as so disclosed by

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the Commercializing Party. In the event that the Commercializing Party does not promptly
reimburse the Sublicensing Party for such amounts upon request (such amounts as determined by the
JSC in accordance with this Agreement, to the extent so provided above), then such Third Party
Technology shall thereafter be deemed excluded from the licenses or other subject matter
licensed hereunder. Notwithstanding the above, this Section 10.6.2 shall not apply to Patent
Rights licensed by Shire from a Third Party and covered by Section 7.3.4 above.

ARTICLE 11

TRADEMARKS AND COPYRIGHTS

     11.1 Product Marks

          11.1.1 Display. All packaging materials, labels and promotional materials for the
Licensed Products in the Shire Territory shall be at the sole discretion of Shire, provided, that
such packaging materials and labels shall display the Amicus trade name in reasonable size and
prominence, as determined by the JCC in accordance with applicable Laws and applicable local
regulations.

          11.1.2 Selection; Title. Within the framework of the JCC, the Parties shall work
together and seek to agree on the selection of Product Marks for each Licensed Product in the
Territory. Notwithstanding the foregoing, each Party shall have final decision on the selection of
Products Marks for each Licensed Product in its Territory. Each Party shall own rights to any
Product Mark which is created by it or on its behalf and used in the Commercialization of a
Licensed Product in the Territory, including all goodwill arising out of the use of such Product
Mark. Each Party agrees that it will not use marks in the other Party’s Territory for any other
products other than the Licensed Product that are confusingly similar to such Product Mark.

          11.1.3 Grant of License. Subject to the terms and conditions of this Agreement, each
Party (the “Trademark Licensor”) hereby grants to the other Party (the “Trademark Licensee”) an
exclusive license to use the Trademark Licensor’s Product Marks in Trademark Licensee’s Territory
for the packaging, marketing, sale and promotion of the applicable Licensed Product in accordance
with the Trademark Licensor’s reasonable trademark usage guidelines, provided, however, that in the
event a Party, after the Effective Date, generates a new Trademark for Licensed Products, the other
Party shall not have a license to such new Trademark unless it reimburses the other Party for
fifty (50%) of the costs incurred to identify, design and register (including clearance and
registerability searches) such Trademark.

          11.1.4 Registration of Trademarks; Recordation. Each Trademark Licensee shall file,
register and maintain for the Term appropriate registrations for the Trademark Licensor’s Product
Marks in the name of the Trademark Licensor, as mutually agreed by the Parties, in each country of
the Territory in which the Licensed Products are or will be sold, at its own expense. In those
countries where a trademark license must be recorded, the Trademark Licensor will provide to the
Trademark Licensee, on the Trademark Licensee’s written request, a separate trademark license for
the Trademark Licensor’s Product Marks and will arrange for the recordation of such trademark

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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license with the appropriate governmental agency, at the Trademark Licensee’s expense, promptly
following receipt of such license from the Trademark Licensor. Each Party shall cooperate in the
preparation and execution of such documents

          11.1.5 Approval of Materials. To the extent necessary to preserve the Trademark
Licensor’s legal rights in its Product Marks, the Trademark Licensee shall submit representative
promotional materials, packaging and samples of a Licensed Product displaying the Product Marks for
the Trademark Licensor’s review and approval prior to the first use of such promotional materials,
packaging or Licensed Product and prior to any subsequent change or addition to such promotional
materials, packaging or Licensed Product; provided that if the Trademark Licensor has not responded
within twenty (20) days after the Trademark Licensee’s receipt of such promotional materials,
packaging or Licensed Product, the Trademark Licensor’s approval will be deemed to have been
received. In any case, neither Party will permit the quality of the Licensed Products with which
the other Party’s Product Marks are used to deteriorate so as to affect adversely the goodwill
associated with such Product Marks.

          11.1.6 Enforcement. Amicus and Shire shall reasonably cooperate with each other to
protect each other’s Product Marks. The JSC shall determine whether and to what extent to
institute and prosecute or defend any actions or proceedings involving or affecting the Trademark
Licensor’s Product Marks in the Trademark Licensee’s Territory. The Parties shall reasonably
cooperate in any action taken to enforce or defend the other Party’s Product Marks in the
Territory, including taking appropriate appeals.

ARTICLE 12

REPRESENTATIONS, WARRANTIES AND COVENANTS

     12.1 Mutual Representations, Warranties and Covenants. Each Party hereby represents,
warrants and covenants to the other Party as follows:

          12.1.1 Due Organization. Such Party is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation, and is qualified to
do business and is in good standing as a foreign corporation in each jurisdiction in which the
conduct of its business or the ownership of its properties requires such qualification and failure
to have such qualification would prevent it from performing its obligations under this Agreement.

          12.1.2 Due Execution. The execution, delivery and performance by such Party of this
Agreement have been duly authorized by all necessary corporate action and do not and will not (i)
require any consent or approval of its stockholders, (ii) violate any provision of any Law, order,
writ, judgment, injunction, decree, determination or award presently in effect having applicability
to it or any provision of its charter or bylaws or (iii) conflict with or constitute a default
under any other agreement to which such Party is a party.

          12.1.3 Binding Agreement. This Agreement is a legal, valid and binding obligation of
such Party, enforceable against it in accordance with the terms and conditions hereof (except as

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REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors’ rights generally.

          12.1.4 Authorizations. Such Party has obtained all authorizations, consents and
approvals, governmental or otherwise, necessary for such Party to grant the rights and licenses
granted by such Party under this Agreement, and to otherwise perform such Party’s obligations under
this Agreement.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          12.1.5 Third Party Agreements. Such Party has not previously granted and, during the
Term will not grant, any rights in conflict with the rights and licenses granted herein. As of the
Effective Date, there are no existing agreements, options, commitments or rights with, of or to any
person or entity to acquire or obtain any rights with respect to such Party’s intellectual
property, which are in conflict with the rights and licenses granted herein.

          12.1.6 Debarment. Such Party has not been debarred or is subject to debarment and
neither it not any of its Affiliates have used or will use in any capacity, in connection with the
Development or Commercialization of Licensed Products, any person or entity who has been debarred
pursuant to Section 306 of the United States Federal Food, Drug and Cosmetic Act, or who is subject
of a conviction described in such Section 306. Further, such Party agrees to inform the other
Party in writing immediately if it or any person or entity who is performing services hereunder is
debarred or is the subject of a conviction described in such Section 306, or if any action, suit,
claim, investigation or legal administrative proceeding is pending or, to the best of such Party’s
knowledge, is threatened, relating to the debarment of such Party, its Affiliates or any person or
entity used in any capacity by such Party or its Affiliates in connection with the Development,
Manufacturing or Commercialization of Licensed Products.

          12.1.7 Development Activities. To the best of such Party’s knowledge, such Party, its
contractors and its consultants have conducted and shall continue to conduct, as applicable, all
research and Development, including non-clinical studies and clinical studies of Licensed Products
and all Manufacturing of Materials in accordance with all material provisions of applicable Laws or
standards of the United States and other countries in which such activities are conducted. Such
Party has conducted or is planning to conduct, as applicable, appropriate audits of its
contract-manufacturer organizations and contract research organizations relating to compliance with
Laws and has found no circumstances that such Party believes would be likely to have a material
adverse effect on the Development, Manufacturing, use or Commercialization of Materials as
contemplated by this Agreement. Neither such Party nor, to its knowledge, any officer, employee or
agent of such Party has made or shall make, as applicable, an untrue statement of a material fact
to any Regulatory Authority with respect to Licensed Products (whether in any submission to such
Regulatory Authority or otherwise), or knowingly failed to disclose or shall knowingly fail to
disclose, as applicable, a material fact required to be disclosed to any Regulatory Authority with
respect to Licensed Products.

     12.2 Amicus Additional Representations, Warranties and Covenants. Except as disclosed
on Schedule 12.2 attached hereto, Amicus hereby represents,
warrants and covenants to Shire as of the Effective Date as follows:

          12.2.1 Existing In-License.

               (a) The Existing In-Licenses are in full force and effect, and to the best of Amicus’
knowledge as of the Effective Date, no Party to such agreements (including Amicus) is in breach or
default thereunder. Amicus has not waived or allowed to lapse or terminate any of its rights
relating to the Compounds or Licensed Products under the Existing-In-Licenses.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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               (b) Amicus has provided a true and complete copy of each Existing In-License to Shire.

               (c) Amicus will not during the Term amend such Existing-In Licenses in a manner that would
adversely affect the rights, obligations or economic interests of Shire under this Agreement
without Shire’s prior written consent.

               (d) Amicus shall, or shall cause Licensors to, furnish Shire with copies of all notices
received by Amicus relating to any alleged breach or default by Amicus under the
Existing-In-Licenses within five (5) Business Days after Amicus’ receipt thereof. In the event
Amicus does not resolve any such alleged breach, it shall notify Shire within a sufficient period
of time before the expiration of the cure period for such breach under such Existing-In-License
such that Shire is able to cure or otherwise resolve such alleged breach. If Shire makes any
payments to a Licensor in connection with the cure or other resolution of such alleged breach of
Amicus, then Shire may credit the amount of such payments (to the extent such amount was actually
due under the applicable Existing In-License) against any royalties or other payments payable to
Amicus pursuant to this Agreement.

               (e) Amicus shall promptly furnish Shire with copies of (a) all amendments of the Existing
In-Licenses and (b) correspondence (or in the case of oral discussions, summary of such
discussions) with or from and reports received from or provided to Licensors to the extent
material to Shire or its rights granted under this Agreement.

               (f) Amicus shall use Commercially Reasonable Efforts to obtain standby licenses in favor of
Shire under each of the Existing-In Licenses as promptly as practicable following the Effective
Date.

          12.2.2 Intellectual Property. As of the Effective Date:

               (a) The Amicus Patent Rights, Amicus Know-How and Product Marks licensed to Shire pursuant to
this Agreement constitute all of the intellectual property that is Controlled by Amicus and used in
the Development, Manufacture or Commercialization of Plicera, Amigal and AT2220 and, to the best of
Amicus’ knowledge, the Development, Manufacture or
Commercialization of Plicera, Amigal and AT2220 in the Shire Territory do not infringe the
intellectual property rights of any Third Party.

               (b) To the best of Amicus’ knowledge, Amicus Patent Rights and Amicus Know-How are the only
intellectual property rights required in order to Manufacture, Develop, use, import and/or sell or
Commercialize Plicera, Amigal and AT2220 in the Shire Territory.

               (c) Amicus holds good title to and is the legal and beneficial owner or licensee of the Amicus
Patent Rights and Amicus Know-How free and clear of any lien, mortgage, security interest, pledge,
restriction on transferability, defect of title or other claim, charge or encumbrance (other than
the terms of the Existing In-Licenses), and Amicus has not granted any

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REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Third Party any right, title
or interest in the Amicus Patent Rights or Amicus Know-How directly relating to the Development,
Manufacture or Commercialization of Licensed Products in the Shire Territory.

               (d) Appendix 1 sets forth all of the Amicus Patent Rights, including the legal and
beneficial owner or applicant for registration of each Amicus Patent Right.

               (e) All actions required to maintain the good standing of the Amicus Patent Rights (including
payment of all applicable fees due and payable to a governmental authority before the Effective
Date and timely compliance with filing, prosecution and maintenance requirements) have been taken.

               (f) There are no claims, judgments or settlements against or owed by Amicus, nor any pending
reissue, reexamination, interference, opposition or similar proceedings, with respect to the Amicus
Patent Rights or Amicus Know-How, and Amicus has not received written notice as of the Effective
Date of any threatened claims or litigation or any reissue, reexamination, interference, opposition
or similar proceedings seeking to invalidate or otherwise challenge the Amicus Patent Rights or
Amicus Know-How.

               (g) To the best of Amicus’ knowledge, there are no pending Third Party patent applications
which, if issued, would materially adversely affect the right of Shire to practice under the Amicus
Patent Rights in accordance with this Agreement.

               (h) To the best of Amicus’ knowledge, there have been no and there is no reason to believe
that there will be any, inventorship challenges with respect to any of the Amicus Patent Rights.

               (i) The Amicus IP is not and, to the best of Amicus knowledge during the Term, will not become
subject to any rights granted in favor of a Third Party that are in conflict with or otherwise
restrict the rights granted to Shire hereunder (subject to the Existing In-Licenses).

               (j) All current and former employees and consultants of Amicus and its Affiliates who are or
have been substantively involved in the design, review, evaluation or
development of the Compounds and Licensed Products have executed written contracts or are
otherwise obligated to protect the confidential status and value thereof and to vest in Amicus or
its Affiliates exclusive ownership of the Compounds and Licensed Products (to the extent invented
by such persons).

          12.2.3 Regulatory, Clinical, Preclinical and Clinical Studies. As of the Effective
Date:

               (a) Regulatory Filings. Neither Amicus nor its Affiliates, nor, to the best of
Amicus’ knowledge, its subcontractors, has received any notice in writing or otherwise has
knowledge of any facts which have led Amicus to believe that any of the Regulatory Filings relating

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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to Plicera, Amigal or AT2220 are not currently in good standing with the FDA or any other
applicable Regulatory Authority.

               (b) No Inquiries. Neither Amicus, nor to the best of Amicus’ knowledge, its
subcontractors has received written notice of any proceedings pending before or threatened by any
Regulatory Authority with respect to Plicera, Amigal or AT2220 or any facility where any such
product is Manufactured.

               (c) Disclosure. Amicus has disclosed to Shire and/or made available to Shire for
review all relevant data and documentation (including, without limitation, all relevant
correspondence with Regulatory Authorities, both in the United States and outside the United
States, related to the foregoing) in its possession or control, that would be material in order to
assess the safety and efficacy of Licensed Products, including all such pre-clinical and clinical
data and all such efficacy data regarding Licensed Products.

               (d) Safety Issues. Amicus is not aware of any safety, efficacy, or regulatory issues,
other than the information that has previously been made available to Shire, that would preclude
Shire or Amicus, or their licensees and contract service organizations, from researching,
Developing, Manufacturing or Commercializing Licensed Products in compliance with Laws, including
but not limited to issues relating to the system for maintaining relevant documents, the internal
audit systems, and any other regulatory-related matter.

          12.2.4 Manufacture and Supply.

     The JSC shall approve the terms and conditions of all manufacture and supply agreements and
other arrangements under which Amicus procures Materials for use under the Development Plans or for
supply to Shire under this Agreement. The Parties intend that (i) Shire and its Affiliates shall
be third party beneficiary of such warranty and covenants in any manufacture and supply agreements
and other arrangements under which Amicus procures Materials for use under the Development Plans or
for supply to Shire under this Agreement and (ii) Amicus shall make available to Shire any benefits
under indemnification provisions under any manufacture and supply agreements.

          12.2.5 [***] for [***]’s.

               (a) Amicus has disclosed and made available to Shire for review all material Data or summaries
thereof (including, without limitation, all relevant correspondence with Regulatory Authorities,
both in the United States and outside the United States, related to the foregoing) in Amicus’
possession or Control with respect to [***] (including [***]) for the treatment, prevention and
diagnosis of [***]’s, including, without limitation, all such pre-clinical and clinical data and
all such efficacy data regarding [***] for [***]’s.

               (b) Amicus shall allocate at least [***] full time equivalent personnel to identify,
Develop and/or acquire a molecule as a substitute for [***] for the treatment and/or

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REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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prevention of
[***]’s, provided, however, that Amicus may terminate such activities, and its obligation under
this Section 12.2.5(b): (i) upon the first [***] with respect to an [***] for [***]’s, or if
earlier, upon termination of the [***]’s Option under Section 6.2.1(e), or (ii) at such earlier
time as the JDC, upon the request of Amicus, determines that Commercially Reasonable Efforts to
find such substitute would not require the continuation of such activities. Amicus shall provide
periodic updates regarding activities conducted by it pursuant to its obligations under this
Section (including the results of such activities) at the request of Shire and further shall
provide an annual report on such activities and results.

     12.3 Disclaimer. EXCEPT AS SET FORTH IN THIS ARTICLE 12, AMICUS AND SHIRE EXPRESSLY
DISCLAIM ANY OTHER WARRANTIES OR CONDITIONS, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT
TO THE PATENT RIGHTS OR KNOW-HOW OR THE SUBJECT MATTER OF THIS AGREEMENT (INCLUDING WITH RESPECT TO
LICENSED PRODUCTS AND ANY RESEARCH AND DEVELOPMENT ACTIVITIES RELATING THERETO), INCLUDING ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE 13

INDEMNIFICATION; INSURANCE

     13.1 Indemnification of Shire. Amicus shall indemnify and hold harmless each of
Shire, its Affiliates and the directors, officers and employees of such entities and the successors
and assigns of any of the foregoing (the “Shire Indemnitees”) from and against any and all
liabilities, damages, penalties, fines, costs and expenses (including reasonable attorneys’ fees
and other expenses of litigation) (collectively, “Liabilities”) resulting from claims, actions,
suits or proceedings brought by a Third Party (a “Third Party Claim”) that are incurred by any
Shire Indemnitee, arising from or occurring as a result of: (a) the Development or
Commercialization of any Licensed Product, or other product containing the Compound, in the Amicus
Territory, in each case by or under authority of Amicus or its Affiliates,
(b) any gross negligence or willful misconduct of Amicus, its Affiliates, or their officers,
directors, employees, contractors, consultants, agents, representatives, or licensees in the
exercise of any obligations under this Agreement or (c) any material breach by Amicus of any
representations, warranties or covenants set forth in this Agreement, except to the extent such
Third Party Claims fall within the scope of Shire’s indemnification obligations set forth in
Section 13.2.

     13.2 Indemnification of Amicus. Shire shall indemnify and hold harmless each of
Amicus, its Affiliates and the directors, officers and employees of such entities and the
successors and assigns of any of the foregoing (the “Amicus Indemnitees”) from and against any and
all Liabilities from any Third Party Claims incurred by any Amicus Indemnitee, arising from or
occurring as a result of (a) the Development or Commercialization of any Licensed Product in the
Shire Territory, in each case by or under authority of Shire or its Affiliates or Sublicensees, (b)
any gross negligence or willful misconduct of Shire, its Affiliates or Sublicensees, or their
officers, directors, employees, contractors, consultants, agents, representatives, or licensees in
the exercise of any obligations under

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REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
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this Agreement or (c) any material breach by Shire of any
representations, warranties or covenants set forth in this Agreement, except to the extent such
Third Party Claims fall within the scope of Amicus’ indemnification obligations set forth in
Section 13.1.

     13.3 Procedure. A Party that intends to claim indemnification under this Article 13
(the “Indemnitee”) shall promptly notify the other Party (the “Indemnitor”) in writing of any Third
Party Claim in respect of which the Indemnitee intends to claim such indemnification, and the
Indemnitor shall have the right to control the defense and/or settlement thereof with counsel of
its choice as long as such counsel is reasonably acceptable to the Indemnitee. The Indemnitee
shall have the right to participate in such defense and/or settlement at its own expense with
counsel of its choice. The indemnity arrangement in this Section 13.3 shall not apply to amounts
paid in settlement of any action with respect to a Third Party Claim if such settlement is effected
without the consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed.
The failure to deliver written notice to the Indemnitor within a reasonable time after the
commencement of any action with respect to a Third Party Claim, shall relieve such Indemnitor of
any Liabilities that result from any delay in providing such notice which materially prejudices the
defense of such Third Party Claim under this Section 13.3, but the omission to so deliver written
notice to the Indemnitor shall not relieve the Indemnitor of any liability that it may have to any
Indemnitee otherwise than under this Section 13.3. The Indemnitee under this Section 13.3 shall
cooperate fully with the Indemnitor and its legal representatives in the investigation of any
action with respect to a Third Party Claim covered by this Article 13.

     13.4 Insurance. Each Party shall procure and maintain insurance, including product
liability insurance, which is consistent with normal business practices of prudent companies
similarly situated at all
times during which any Licensed Product is being clinically tested in human subjects or
commercially distributed or sold by such Party and the insurance coverage shall in no event be less
than: (a) prior to the First Commercial Sale of a Licensed Product anywhere in the world, $[***]
per loss occurrence and $[***] in the aggregate, and (b) after such First Commercial Sale, $[***]
per loss occurrence and $[***] in the aggregate. It is understood that such insurance shall not be
construed to create a limit of either Party’s liability with respect to its indemnification
obligations under this Article 13. Each Party shall provide the other Party with written evidence
of such insurance upon request. Each Party shall provide the other Party with written notice at
least thirty (30) days prior to the cancellation, non-renewal or material change in such insurance
or self insurance which materially adversely affects the rights of the other Party hereunder.

ARTICLE 14

CONFIDENTIALITY

     14.1 Confidentiality; Exceptions. Except to the extent expressly authorized by this
Agreement or otherwise agreed in writing, the Parties agree that 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 confidential and proprietary materials
furnished to it by the other Party pursuant to this Agreement collectively and except to the extent
any of Sections

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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14.1.1. to 14.1.4 are applicable (“Confidential Information”), except to the extent
that it can be established by the receiving Party that such Confidential Information:

          14.1.1 was in the lawful knowledge and possession of the receiving Party prior to the time it
was disclosed to, or learned by, the receiving Party, or was otherwise developed independently by
the receiving Party, as evidenced by written records kept in the ordinary course of business, or
other documentary proof of actual use by the receiving Party;

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

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

          14.1.4 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.

     14.2 Authorized Disclosure. Except as otherwise expressly provided in this Agreement,
each Party may use and disclose Confidential Information of the other Party as follows: (a) under
appropriate confidentiality
provisions substantially equivalent to those in this Agreement, in connection with the
performance of its obligations or exercise of rights granted or reserved in this Agreement
(including to grant licenses and sublicenses permitted hereunder, and in the case of Amicus, to
Develop, Manufacture and Commercialize Licensed Products and Compounds for use in the Amicus
Territory and, in the case of [***] for [***]’s, outside the Field), (b) to the extent such
disclosure is reasonably necessary in filing or prosecuting patent, copyright and trademark
applications, complying with the terms of licenses from Third Parties, prosecuting or defending
litigation, complying with applicable governmental regulations, obtaining Regulatory Approval,
conducting preclinical or clinical trials, or marketing Licensed Products, or otherwise required by
Law (including securities Laws), provided, however, that if a Party is required by Law to make any
such disclosure of the other Party’s Confidential Information it will, except where impracticable
for necessary disclosures (for example, in the event of medical emergency), 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 its reasonable efforts to secure confidential treatment of
such Confidential Information required to be disclosed, (c) in communication with investors,
consultants, advisors or others on a need to know basis, in each case under appropriate
confidentiality provisions substantially equivalent to those of this Agreement, (d) in the case of
Amicus, to the extent necessary to comply with its obligations to provide progress reports to its
licensors under the Existing In-Licenses, under appropriate confidentiality provisions, or (e) to
the extent mutually agreed to by the Parties.

     14.3 Termination of Prior Agreement. This Agreement supersedes the Confidentiality
Agreement between the Parties dated June 6, 2007 (“Confidentiality Agreement”), including all

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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modifications thereto. All Confidential Information (as defined in the Confidentiality Agreement)
exchanged between the Parties under such agreement shall be deemed Confidential Information and
shall be subject to the terms of this Article 14.

     14.4 Disclosure of Terms. Each Party agrees not to disclose to any Third Party the
terms of this Agreement without the prior written consent of the other Party, except as permitted
for disclosures of Confidential Information pursuant to Section 14.2.

     14.5 Publications. Except as required by applicable Law, each Party agrees that it
shall not publish or present the results of Development work or Post-Marketing Studies conducted by
such Party that are directed to any Licensed Product for an indication in the Field, including but
not limited to studies or clinical trials carried out by such Party as part of a Development Plan
under this Agreement (each, a “Collaboration Results Publication”), without providing the other
Party the opportunity for prior review, it being understood, however, that publication of such
Collaboration Results Publication shall not require approval of the other Party. Each Party shall
provide to the other Party the opportunity to review any of the submitting Party’s proposed
abstracts, manuscripts or presentations (including information to be presented verbally) comprising such a
Collaboration Results
Publication (including any proposed Third Party publication submitted to the submitting Party for
review and approval, to the extent the applicable terms of any agreement with such Third Party
permit) at least fifteen (15) days prior to their intended presentation or submission for
publication. Once such abstracts, manuscripts or presentations have been reviewed by each Party,
the same information contained in such abstracts, manuscripts or presentations does not have to be
provided again to the other Party for review for a later submission for publication. Each Party
shall also have the right to require that its Confidential Information be removed from any such
approved Collaboration Results Publication. Notwithstanding the foregoing, any Collaboration
Results Publication shall be delayed upon the request of Party for a period not less than sixty
(60) days, if such Party requests such delay in order to allow for filing a patent application or
taking such measures as such Party deems appropriate to establish and preserve its proprietary
rights.

     14.6 Press Releases and Announcements

          14.6.1 Initial Release. On the Effective Date or, if mutually agreed, promptly after
the Effective Date, each Party shall have the right to release a press release announcing this
Agreement and the relationship of the Parties, provided each Party’s such press release will be in
the form provided to the other Party prior to the Effective Date. Thereafter, Shire and Amicus may
each disclose to Third Parties the information contained in each such press release without the
need for further approval by the other.

          14.6.2 Further Publicity. The Parties acknowledge the importance of supporting each
other’s efforts to publicly disclose results and significant developments regarding Licensed
Products in the Shire Territory and other activities in connection with this Agreement in the Shire
Territory that may involve Confidential Information of the other Party generated or obtained in
connection with this Agreement pertaining to the Licensed Products, beyond what is required by Law,
and each Party may make such public disclosures from time to time with the approval of the

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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other
Party. Such disclosures may include, without limitation, achievement of Development milestones,
significant events in the Development and regulatory process with respect to Licensed Products,
Commercialization activities and the like. When a Party (the “Initiating Party”) elects to make
any such public disclosure under this Section 14.6.2, it will give the other Party (the
“Cooperating Party”) at least five (5) Business Days notice to review and comment on such
statement, it being understood that if the Cooperating Party does not notify the Initiating Party
in writing within such five (5) Business Day period of any objections, such disclosure shall be
deemed approved, and in any event the Cooperating Party shall work diligently and reasonably to
agree on the text of any approved disclosure in an expeditious manner. The principles to be
observed in such disclosures shall include accuracy, compliance with applicable Law and regulatory
guidance documents, reasonable sensitivity to potential negative reactions of the FDA (and its
foreign counterparts) and the need to keep investors informed regarding the Initiating Party’s
business.

ARTICLE 15

TERM AND TERMINATION

     15.1 Term. The term of this Agreement (the “Term”) shall begin on the Effective Date
and shall continue on a Licensed Product by Licensed Product basis until the expiration of the
royalty term as per Section 7.3.6 above for such Licensed Product, unless and until earlier
terminated as permitted under this Agreement. Upon expiration (but not earlier termination) of
this Agreement with respect to a Licensed Product, Shire shall have a fully paid up, license to
Develop, use and Commercialize such Licensed Product within the Field in the Shire Territory,
provided, that Shire’s license to Develop and Manufacture shall be a worldwide license.

     15.2 Termination for Breach. In the event of a material breach of this Agreement, the
non-breaching Party shall have the right to give written notice (the “Breach Notice”) to the
breaching Party, specifying the breach in reasonable detail. The breaching Party shall have [***]
after the Breach Notice to cure any such breach. If, at the end of such [***] period, the breach
remains uncured, then the non-breaching Party shall have the right to terminate this Agreement upon
written notice, in its entirety or on a Licensed Product-by-Licensed Product basis.

     15.3 Termination by Shire.

          15.3.1 Generally. Subject to Section 15.3.4 below, Shire may terminate this Agreement
for any reason upon [***] prior written notice to Amicus

          15.3.2 Licensed Product by Licensed Product. In addition, subject to Section 15.3.4
below, Shire may terminate this Agreement as to any Licensed Product, upon [***] prior written
notice to Amicus.

          15.3.3 Safety. In addition, if Shire exercises its right of termination under this
Section 15.3 because it reasonably believes that a Licensed Product is unsafe for human use, then
Shire shall promptly provide Amicus with reasonable evidence of such safety concern and
notwithstanding Section 6.4.2 and Section 15.5 below, Shire may cease to conduct any further

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Development or Commercialization of such Licensed Product. If Shire invokes this Section 15.3.3
without a reasonable basis, it is understood that doing so shall be deemed a breach of this
Agreement, and Amicus shall have the right to pursue any remedies available for such breach under
applicable Law or this Agreement.

          15.3.4 Initial Period. Notwithstanding the foregoing, Shire shall not issue any
notice of termination under (a) Section 15.3.1 within [***] after the Effective Date or (b) Section
15.3.2 within [***] after the Effective Date, provided, that it shall not issue any notice of
termination under Section 15.3.2 within [***] after the Effective Date with respect to more than
two (2) Licensed Products.

     15.4 Termination for Bankruptcy. Either Party may terminate this Agreement in its
entirety at any time during the Term by giving written notice to the other Party if the other Party
files in any court or agency pursuant to any statute or regulation of any state or country a
petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the
appointment of a receiver or trustee for the other Party or its assets, or if the other Party is
served with an involuntary petition against it, filed in any insolvency proceeding, and such
petition shall not be dismissed with ninety (90) days after the filing thereof, or if the other
Party makes a general assignment for the benefit of creditors.

     15.5 Effects of Expiration or Termination

          15.5.1 Accrued Obligations. Expiration or termination of this Agreement for any
reason shall not release either Party any obligation or liability which, at the time of such
expiration or termination, has already accrued to the other Party or which is attributable to a
period prior to such expiration or termination.

          15.5.2 Termination by Amicus under Section 15.2 or Action of Shire under Section
15.3.1. If this Agreement is terminated by Amicus under Section 15.2 or by Shire pursuant to
Section 15.3.1, then:

               (a) Development.

                    (i) If, on the date of notice of such termination, Shire was conducting any ongoing clinical
trials of one or more Licensed Products (collectively with all Licensed Products for which the
Agreement is terminated, “Reverted Products”), then, to the extent and as requested by Amicus,
Shire shall promptly transition such clinical trials to Amicus or (except for Independent Projects)
continue to conduct such clinical trials for a period requested by Amicus up to [***] after the
effective date of such termination. During this period, the out-of-pocket costs that Shire
reasonably incurs in performing such clinical trials at Amicus’ request shall be deemed Wind-Down
Development Expenses for purposes of (and shall be shared by the Parties in accordance with)
Section 15.5.2(a)(ii) below.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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                    (ii) [***] (the “Notice Period”) following the date of the notice of termination under Section
15.2 or 15.3.1, as applicable (the “Notice Date”), and (B) any [***], or by [***] in performing
activities at Amicus’ request under Section 15.5.2(a)(i) above, during the [***] period following
the Notice Period (the “Development Period”) for clinical trials initiated prior to the Notice Date
in accordance with the applicable Development Plan (collectively (A) and (B), the [***]) (for
clarity such [***] shall not include any expenses for activities related to Independent Projects);
provided that, with respect to the [***] described in (B) above, [***] shall be reduced
from [***]. Promptly following the end of each calendar quarter until the end of the
Development Period, each Party shall provide written documentation of the actual [***] that have
then been incurred by it and that reflect the Development conducted according to this Section
15.5.2(a)(ii) since the last such report, and the Parties shall [***] in accordance with Section
7.4.4(c) above, until all such Wind-Down Development Expenses have been so reported and paid. In
the event the budget in the applicable Development Plan does not extend for the full duration of
the Development Period, such budget shall be deemed extended until the end of the Development
Period to include the costs of such continuing Development activities. As used herein, [***] shall
mean (x) [***] to Third Party contractors performing work under the applicable Development Plan
(such as CRO’s or clinical trial sites), as well as (y) the [***] of Licensed Products consumed in
performing such clinical trials.

               (b) Commercialization. With respect to Licensed Products being Commercialized at the
time of such termination, Shire, its Affiliates and permitted Sublicensees shall continue to sell
the Reverted Products in each country in the Shire Territory for which Regulatory Approval has been
obtained, in accordance with the terms and conditions of this Agreement, for a period requested by
Amicus not to exceed the lower of [***] from the effective date of termination or upon the
completion of the transfer of Regulatory Approvals allowing Amicus or its designee to sell such
License Product (the “Wind-down Period”), provided that Amicus may terminate the Wind-down Period
upon [***] written notice to Shire and provided, further, that Shire shall not be obligated to
promote the sale of Reverted Products in the Shire Territory during the Wind-down Period.
Notwithstanding any other provision of this Agreement, during the period from and after the notice
of termination, Shire’s and its Affiliates’ and permitted Sublicensees’ rights with respect to the
Reverted Products in the Shire Territory shall be non-exclusive. All Net Sales from sales of
Reverted Products sold or disposed by Shire in the Shire Territory during the Wind-down Period
shall be paid to Amicus, less (x) a fixed distribution fee equal to [***] of such Net Sales and (y)
the Manufacturing Cost of quantities of the Licensed Product included in such Net Sales. Except as
provided in this Section 15.5.2(b), after termination, Shire and its Affiliates and Sublicensees
shall not sell any quantities of Reverted Products produced or obtained pursuant to this Agreement.

               (c) Transition Assistance. Shire shall cooperate with reasonable requests by Amicus
to achieve, as promptly as reasonably practicable during the period from notice of termination
until the end of the Wind-down Period, a smooth and orderly transition to Amicus of the Development
and Commercialization of the Reverted Products in the Territories, including making its personnel
and other resources reasonably available to Amicus. If Shire has entered into contracts with
contractors (including contract manufacturers) or vendors that are necessary or useful for

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Amicus
to take over responsibility with respect to the Reverted Products in the Territories, then Shire
shall, to the extent possible and requested in writing by Amicus, assign all of the relevant Third
Party agreements to Amicus, or otherwise cooperate to make such arrangements available to Amicus or
its designee for purposes of the Licensed Products.

               (d) Assignment of Regulatory Filings and Regulatory Approvals. Shire shall assign and
transfer, or cause to be assigned and transferred, to Amicus all Regulatory Filings
and Regulatory Approvals solely for the Reverted Products made or owned by Shire and its
Affiliates, and shall take such actions and execute such other instruments, assignments and
documents as may be necessary to effect the transfer of rights under such Regulatory Filings and
Regulatory Approvals to Amicus (or, if not so assignable or not solely related to Related Products,
Shire shall take all reasonable actions to make available to Amicus the benefits of such Regulatory
Filings and Regulatory Approvals). Shire shall require each of its Sublicensees and any other
Third Party that holds Regulatory Filing or Regulatory Approvals under authority from Shire
hereunder solely related to Reverted Products to transfer any such Regulatory Filings and
Regulatory Approvals to Amicus if this Agreement terminates (or, if not so assignable or not solely
related to Related Products, Shire shall take all reasonable actions to make available to Amicus
the benefits of such Regulatory Filings and Regulatory Approvals). In each case, unless otherwise
prohibited by any applicable Laws, the foregoing assignment (or availability) shall be made within
[***] after termination of this Agreement.

               (e) Data and Know-How Disclosure. Within [***] after the Notice Date, Shire shall
disclose to Amicus (to the extent Shire has not already disclosed to Amicus) all Know-How in
Shire’s or its Affiliates’ possession or Control with respect to the Reverted Products Developed
under this Agreement. Such disclosure shall be in electronic form to the extent available and, if
reasonably necessary in connection with Amicus’ further Development, Manufacture or
Commercialization of the Reverted Products, shall include original hardcopies or duplicate copies
thereof to the extent available, as required. Amicus shall be free to use this Know-How in
accordance with the license under Section 15.5.2(f) below.

               (f) Licenses. Shire shall grant, and hereby grants, to Amicus, effective upon the
Notice Date, a perpetual, fully paid-up non-exclusive license, with the right to grant and
authorize sublicenses, to use Shire Inventions (including under all Patent Rights inherent
thereto), the Know-How provided or to be provided to Amicus under this Agreement and all
copyrighted materials Controlled by Shire, in each case pertaining to the Reverted Products, to
Develop, Commercialize, Manufacture and otherwise exploit the Reverted Products, or other products
containing a Compound (other than, in the case of termination under Sections 6.4.3 or 15.3.2,
Compounds included in Licensed Products for which Shire retains its license under Section 2.1).

               (g) Trademarks and Copyrights. Upon payment of the costs incurred to identify, design
and register (including clearance and registerability searches) of Product Marks (to the extent not
previously paid by Amicus pursuant to Section 11.1.3), Shire shall promptly assign to Amicus, at
Amicus’ sole reasonable expense (with no royalty obligations) all rights of Shire in and

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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to the
Product Marks and other product-specific trademarks for Reverted Products, including applicable
registrations and associated goodwill.

               (h) Sublicenses. Each Sublicense granted by Shire or its Affiliates hereunder shall,
at the request of Amicus and in its discretion, be assigned to Amicus to the furthest extent
possible. In the event that such assignment is not requested by Amicus or is not approved by such
Sublicensee, then the rights of such Sublicensee with respect to Reverted Products in the Shire
Territory shall terminate upon termination of Shire’s license with respect to the Shire
Territory. Shire shall ensure that its Affiliates and Sublicensees (if the applicable Sublicense
is not assigned to Amicus pursuant to this Section 15.5.2(h)) transition the Reverted Products back
to Amicus in the manner set forth in this Section 15.5.2 as if such Affiliate or Sublicensee were
named herein.

          15.5.3 Partial Termination. If this Agreement is terminated under Section 15.2 or
15.3.2 with respect to one or more Licensed Products but not this Agreement in its entirety, it is
understood that Section 6.4.3 shall apply with respect to such terminated Licensed Product.

          15.5.4 Termination by Shire under Section 15.2. If this Agreement is terminated by
Shire under Section 15.2, then:

               (a) Licenses and Payments. Shire shall continue to retain the licenses and other
rights granted to Shire under Article 2 and 11 above, provided that Shire continues to fulfill its
payment obligations under Article 7 above, subject to any right of offset Shire may have under
applicable Law for damages resulting from Amicus’ breach of this Agreement; provided that any
royalties due under Section 7.3 and milestone payments due under Section 7.2.1 that are achieved
after the date of such termination shall be reduced by [***]%, provided, that in the event any
Licensed Product is then being Commercialized, any royalty due under Section 7.3 for such Licensed
Product shall be reduced by [***]%.

               (b) Development. Notwithstanding anything herein to the contrary, commencing upon the
effective date of termination, Shire shall be permitted to engage in Development activities outside
of the applicable Development Plan(s) with respect to Licensed Products in the Field in the Shire
Territory, and Shire shall not be required to provide to Amicus under Section 2.3 or Article 9
above the Data and other results of such activities nor permit Amicus to have access to or
participate in regulatory matters in the Shire Territory related to such activities in accordance
with Article 9.

               (c) Data and Know-How Disclosure. Within [***] after the termination of this
Agreement, Amicus shall, at Shire’s sole reasonable expense, disclose to Shire (to the extent
Amicus has not already disclosed to Shire) all Know-How in Amicus’ or its Affiliates’ possession or
Control required to be disclosed under Section 2.3.2 above.

               (d) Reservation of Rights. The exercise by Shire of its rights under this Section
15.5.4 shall in no way limit any other remedies available to Shire in connection with such
termination.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          15.5.5 Rights in Bankruptcy. All rights and licenses granted under or pursuant to
this Agreement by one Party to the other are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of the U.S. Bankruptcy Code and other similar foreign Laws, licenses of rights to
“intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code or such foreign
Laws. Each Party, as a
Sublicensee of rights under this Agreement, shall retain and may fully exercise all of its
rights and elections under the U.S. Bankruptcy Code and other similar foreign Laws.

          15.5.6 Public Disclosure. The Parties shall use good faith efforts to coordinate any
public disclosure regarding any termination under this Agreement, subject to compliance with
applicable Laws, including securities Laws.

     15.6 Survival.

          15.6.1 Surviving Articles and Sections. Articles 1, and 16, and Sections 2.3.5 (with
respect to Amicus’ rights thereunder) 4.5.2 (with respect to licenses granted thereunder), 6.1.2(d)
(with respect to licenses granted thereunder), 10.1, 13.1-13.3 and 14.1-14.4, 15.1, 15.5 and 15.6
shall survive expiration or termination of this Agreement for any reason. Except as otherwise
provided in this Article 15, all rights and obligations of the Parties under this Agreement shall
terminate upon expiration or termination of this Agreement for any reason.  

          15.6.2 Committee Decisions. To the extent that any provision of this Agreement that
provides for a decision to be made by a Committee survives termination of this Agreement pursuant
to this Article 15, such matter shall be decided by the Parties jointly, and any dispute between
the Parties with respect to any such matter shall be resolved as if it were a Committee Dispute
under Section 16.8 below.

ARTICLE 16

GENERAL PROVISIONS

     16.1 Assignment. This Agreement shall not be assignable by either Party to any Third
Party hereto without the written consent of the other Party hereto, except that (a) either Party
may assign this Agreement without the other Party’s consent to an entity that acquires
substantially all of the business or assets of the assigning Party (or, in the case of Shire,
Shire’s [***] business), whether by merger, asset sale or otherwise, provided that the acquirer
assumes this Agreement in writing or by operation of law; and (b) either Party may assign this
Agreement to an Affiliate upon written notice to the non-assigning Party; provided that in the case
of (b), (i) the assigning Party guarantees the performance of this Agreement by such Affiliate and
(ii) if the non-assigning Party reasonably believes that assignment to such Affiliate would result
in adverse tax consequences to the non-assigning Party, such assignment shall not be made without
the non-assigning Party’s consent, such consent not to be unreasonably withheld. Subject to the
foregoing, this Agreement shall inure to the benefit of each Party, its successors and permitted
assigns. Any assignment of this Agreement in contravention of this Section 16.1 shall be null and
void.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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     16.2 Independent Contractors. The Parties are and shall at all time be independent contractors.
In performing under this
Agreement, neither Party is an agent, employee, employer, joint venturer or partner of the other.
Neither Party shall incur or hold itself out to Third Parties as having the authority to incur any
expenses, liabilities or obligations on behalf of the other Party. This Agreement is not a
partnership agreement and nothing in this Agreement shall be construed to establish a relationship
of co-partners or joint venturers between the Parties.

     16.3 Third Party Beneficiaries. This Agreement shall not confer any third party
beneficiary rights or remedies upon any Affiliate of a Party or any Third Party, except as
otherwise provided in Section 16.4.

     16.4 Waiver. No waiver by a Party in any one or more instances shall be deemed to be
a continuing waiver, a further waiver, a waiver of any other provision of this Agreement or a
waiver of this Agreement as a whole. No waiver of any right under this Agreement shall be
effective unless it is documented in a writing signed by the Party providing the waiver.

     16.5 Force Majeure. A failure by a Party to perform any obligation under this
Agreement that is prevented by an occurrence beyond the reasonable control of the non-performing
Party (and which did not occur as a result of its financial condition, negligence or fault),
including acts of God, embargoes, fires, floods, explosions, riots, wars, civil disorders,
terrorist acts, rebellion or acts of sabotage (a “Force Majeure Event”), shall not constitute a
breach of this Agreement so long as that Party notifies the other Party as soon as practicable and
uses Commercially Reasonable Efforts to resume performance as soon as possible. Neither Party
shall be entitled to rely on a Force Majeure Event to relieve it from an obligation to pay money
(including any interest for delayed payment) which would otherwise be due and payable under this
Agreement.

     16.6 Severability. If any term of this Agreement is held invalid, illegal or
unenforceable in any jurisdiction, then, to the fullest extent permitted by Law (a) all other terms
shall remain in full force and effect in such jurisdiction, (b) such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of such provision in any
other jurisdiction and (c) the Parties shall negotiate in good faith such terms as may be necessary
in order to correct any imbalance of rights and obligations that results from such invalidity,
illegality or unenforceability in the relevant jurisdiction.

     16.7 Governing Law; Dispute Resolution. This Agreement shall be governed by and
interpreted under, and any court action shall apply, the Laws of the State of New York, excluding
its conflicts of Laws principles. Subject to
Section 16.8, any dispute as to the performance, enforcement, termination, validity or
interpretation of this Agreement shall be brought only in a federal court of competent jurisdiction
(or a state court if no federal court has jurisdiction) located in New York, New York and the
Parties hereby submit to the exclusive jurisdiction and venue of such courts.

     16.8 Arbitration for Committee Disputes and Certain Other Disputes.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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          16.8.1 Committee Disputes. The Parties agree that the inability of the JSC, JDC, JCC
or any Special Committee to reach consensus on a decision that is expressly designated in this
Agreement to be made by such Committee (a “Committee Dispute”) shall be resolved through the
procedures set forth in this Section 16.8.

               (a) In the event that the JDC, JCC or a Special Committee is unable to reach consensus on a
decision within the authority of such Committee, such Committee Dispute shall be first referred to
the JSC by a Co-Chair of the JDC, JCC or such Special Committee, as applicable, who has concluded
in good faith that there has been sufficient discussion of the matter and that resolution is
unlikely, and the JSC shall consider such matter within fourteen (14) days. If the JSC is unable
to reach a unanimous decision as to such Committee Dispute, or to a Committee Dispute within the
direct authority of the JSC, within such fourteen (14) day period, such Committee Dispute shall
similarly be referred for joint and mutual resolution by the Chief Executive Officer (or his/her
designee) of each Party. If such Committee Dispute is not resolved by the Chief Executive Officers
(or their respective designees) within thirty (30) days after being referred for their joint and
mutual resolution, then such Committee Dispute shall, upon written notice of either Party to the
other Party, be resolved by final, binding arbitration in accordance with the provisions of
Sections 16.8.1(b) through (d).

               (b) The arbitration shall be conducted by the Judicial Arbitration and Mediation Services (or
its successor entity) (“JAMS”) under its rules of arbitration then in effect, except as modified in
this Agreement. The arbitration shall be conducted in the English language, by a single
arbitrator. If the Parties are unable to agree on an arbitrator, the arbitrator shall be selected
in accordance with the JAMS rules, or if the JAMS rules do not provide for such selection, by the
chief executive of JAMS. At his or her election, the arbitrator may engage an independent expert
with experience in the subject matter of the dispute to advise the arbitrator, but final decision
making authority shall remain in the arbitrator. The arbitrator shall determine what discovery
will be permitted, consistent with the goal of reasonably controlling the cost and time that the
Parties must expend for discovery, provided that the arbitrator shall permit such discovery as he
or she deems necessary to permit an equitable resolution of the dispute.

               (c) The Parties and the arbitrator shall use all reasonable efforts to complete any such
arbitration within ninety (90) days, and such arbitration shall be a “baseball” type arbitration,
meaning that, following all permitted discovery and in accordance with procedures otherwise
determined by the arbitrator, each Party shall prepare a written report setting forth its final
position with respect to the substance of the dispute and the arbitrator shall then select one
of the Party’s positions as his or her final decision. The arbitrator shall not have authority to
render any substantive decision other than to so select the position of either Amicus or Shire.
Further, to the extent applicable, the arbitrator shall make such decision based on the underlying
agreement of the Parties that the Parties are equally sharing all costs for Development of Licensed
Products (other than under an Independent Project) in order to achieve Regulatory Approval in each
of the Primary Market countries.

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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               (d) The Parties agree that the decision of the arbitrator shall be the binding remedy between
them regarding the dispute presented to the arbitrator, and in the case of a Committee Dispute
shall become the decision of the JSC on the matter. The arbitration proceedings and the decision
of the arbitrator shall be deemed Confidential Information of both Parties under Article 14 above.
Unless otherwise mutually agreed upon by the Parties, the arbitration proceedings shall be
conducted in New York, New York. The Parties agree that they shall share equally the cost of the
arbitration filing and hearing fees, the cost of the independent expert retained by the arbitrator
and the cost of the arbitrator and administrative fees of JAMS. Each Party shall bear its own
costs and attorneys’ and witnesses’ fees and associated costs and expenses.

          16.8.2 Disputes Regarding the Right of First Refusal. The Parties agree that it is
important to be able to resolve any disputes regarding Sections 2.4, 6.1.3, 6.2.1 6.2.2, 6.3.2,
6.3.3, 6.4.4 or 6.5.5 above quickly. In the event of a dispute under such provison, such dispute
shall be resolved under binding arbitration in accordance with Section 16.8.1(b)-(d).

     16.9 Construction. Unless the context of this Agreement clearly requires otherwise,
(a) references to any gender include all genders, (b) “including” has the inclusive meaning
frequently identified with the phrase “including but not limited to” or “including without
limitation” and (c) references to “hereunder” or “herein” relate to this Agreement. The section
and other headings contained in this Agreement are for reference purposes only and shall not
control or affect the construction of this Agreement or the interpretation thereof in any respect.
Section, subsection, Appendix and Schedule references are to this Agreement unless otherwise
specified. Each accounting term used herein that is not specifically defined herein shall have the
meaning given to it under U.S. GAAP, but only to the extent consistent with its usage and the other
definitions in this Agreement. In addition: (a) “Business Day” means a day other than a Saturday,
Sunday or a day that is a statutory holiday in the United Kingdom or a federal holiday in the
United States; and (b) “Laws” means all laws, ordinances, rules, directives and regulations of any
kind of any governmental or regulatory authority of a country in the Territory (including
Regulatory Authorities), in each case to the extent applicable to the respective activities of a
Party that are being performed.

     16.10 Notices. All notices that are required or permitted hereunder shall be in
writing and shall be sufficient if personally delivered or sent by registered or certified mail,
Federal Express or other
international business delivery service. Any notices shall be deemed given upon the earlier
of the date when received at, or the third day after the date when sent by registered or certified
mail or the day after the date when sent by Federal Express or other international business
delivery service to, the address set forth below, unless such address is changed by notice to the
other Party:

If to Shire:

Shire Pharmaceuticals Ireland Ltd.

5 Riverwalk

Citywest Business Campus

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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Dublin 24

Ireland

Fax: 00 353 1 429 7701

Attention: Legal Department

with a copy to:

Morgan, Lewis & Bockius LLP

502 Carnegie Center

Princeton, NJ 08540

Fax: (609) 919-6701

Attention: Randall B. Sunberg, Esq.

If to Amicus:

Amicus Therapeutics, Inc.

6 Cedar Brook Drive

Cranbury, NJ 08512

Fax: (609) 662-2001

Attention: President

with a copy to:

Wilson Sonsini Goodrich & Rosati

650 Page Mill Road

Palo Alto, CA 94304

Fax: (650) 493-6811

Attention: Kenneth A. Clark, Esq.

     16.11 Amendment. This Agreement may be amended or modified only by a writing signed
by each of the Parties.

     16.12 Entire Agreement. This Agreement and the Related Agreements between the Parties constitute the entire
understanding between the Parties as of the Effective Date with respect to the subject matter
hereof and thereof and supersede all related prior or contemporaneous oral communications,
agreements or discussions with respect to the subject matter hereof or thereof.

     16.13 Execution in Counterparts; Facsimile Signatures. This Agreement may be executed
in two counterparts, each of which counterparts, when so executed and delivered, shall be deemed to
be an original, and both of which counterparts, taken together, shall constitute one and the same
instrument even if both Parties have not executed the same counterpart. Signatures provided by
facsimile transmission shall be deemed to be original signatures.

     16.14 Provisions of Existing In-Licenses. Pursuant to Section 2(d) of the Licensed
Agreement between Amicus and Mount Sinai School of Medicine of New York University

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-76-

 

(“MSSM”) dated
April 15, 2002, as amended (the “MSSM Agreement”), (a) Shire agrees to be bound by Sections 6, 9
and 10 of the MSSM Agreement, the text of which is attached hereto as Exhibit 16.14 and
incorporated herein by reference, to the extent applicable to Shire in its capacity as a
sublicensee thereunder and (b) MSSM shall be deemed to be a third party beneficiary of this
Agreement for purposes of enforcing Sections 9 and 10 of the MSSM Agreement against Shire in its
capacity as a sublicensee thereunder. In addition, Shire, in its capacity as a sublicensee under
the Existing In-Licenses, agrees to comply with the audit rights applicable to sublicensees
thereunder.

(The remainder of this page is intentionally left blank; the signature page follows.)

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-77-

 

     IN WITNESS WHEREOF, each of the Parties, by their duly authorized officers, have executed this
Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	AMICUS THERAPEUTICS, INC.	 	SHIRE PHARMACEUTICALS IRELAND LTD.	 	 
	By:

	 	/s/ John F. Crowley
	 	By:
	 	/s/ Susan Connell	 	 
	 

	 	 

	 	 	 	 

	 	 
	Name:

	 	John F. Crowley
	 	Name:
	 	Susan Connell	 	 
	Title:

	 	President and Chief Executive Officer
	 	Title:
	 	Director	 	 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

-2-

 

APPENDIX 1

Amicus Patent Rights

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Patent	 	 	 	 	 	 	 	 
	Application No.	 	No.	 	Country	 	Title	 	Legal Owner	 	Beneficial Owner
	09/087804

	 	 	6274597	 	 	US
	 	Method Of Enhancing
Lyosomal
Alpha-Galactosidase
A
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	09/604053

	 	 	6583158	 	 	US
	 	Method For
Enhancing Mutant
Enzyme Activities
In Lysosomal
Storage Disorders
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	09/927285

	 	 	6774135	 	 	US
	 	Method Of Enhancing
Lysosomal
Alpha-Galactosidase
A
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	09/948348

	 	 	6599919	 	 	US
	 	Method For
Enhancing Mutant
Enzyme Activities
In Lysosomal
Storage Disorders
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10/172604

	 	 	6589964	 	 	US
	 	Method for
Enhancing Mutant
Enzyme Activities
In Lysosomal
Storage Disorders
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10/304395

	 	 	6916829	 	 	US
	 	Method For
Enhancing Mutant
Enzyme Activity In
Gaucher Disease
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10/989258

	 	 	7141582	 	 	US
	 	Method Of Enhancing
Mutant Enzyme
Activity In Gaucher
Disease
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Patent	 	 	 	 	 	 	 	 
	Application No.	 	No.	 	Country	 	Title	 	Legal Owner	 	Beneficial Owner
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 [***]

	 	 	 	 	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	CH
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	69531098.4

	 	 	0749423	 	 	DE
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	EP
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	FR
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	GB
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	SE
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	7-523172

	 	 	 	 	 	JP
	 	Use Of Hydroxy
Alkyl Piperidine
And Pyrrolidine
Compounds To Treat
Diabetes
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 [***]

	 	 	 	 	 	 
	 	 
	 	 
	 	 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 2 -

 

APPENDIX 2

Ex-U.S. Platform Patent Rights

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Application	 	Patent	 	 	 	 	 	 	 	 
	No.	 	No.	 	Country	 	Title	 	Legal Owner	 	Beneficial Owner
	09/087804

	 	 	6274597	 	 	US
	 	Method Of Enhancing
Lyosomal
Alpha-Galactosidase
A
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	09/604053

	 	 	6583158	 	 	US
	 	Method For
Enhancing Mutant
Enzyme Activities
In Lysosomal
Storage Disorders
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	09/927285

	 	 	6774135	 	 	US
	 	Method Of Enhancing
Lysosomal
Alpha-Galactosidase
A
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	09/948348

	 	 	6599919	 	 	US
	 	Method For
Enhancing Mutant
Enzyme Activities
In Lysosomal
Storage Disorders
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10/172604

	 	 	6589964	 	 	US
	 	Method for
Enhancing Mutant
Enzyme Activities
In Lysosomal
Storage Disorders
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	10/304395

	 	 	6916829	 	 	US
	 	Method For
Enhancing Mutant
Enzyme Activity In
Gaucher Disease
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Application	 	Patent	 	 	 	 	 	 	 	 
	No.	 	No.	 	Country	 	Title	 	Legal Owner	 	Beneficial Owner
	10/989258

	 	 	7141582	 	 	US
	 	Method Of Enhancing
Mutant Enzyme
Activity In Gaucher
Disease
	 	Mount Sinai School
of Medicine
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	08/404077

	 	 	5863903	 	 	US
	 	Use Of Hydroxy
Alkyl Piperidine
And Pyrrolidine
Compounds To Treat
Diabetes
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	CH
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	69531098.4

	 	 	0749423	 	 	DE
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	EP
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	FR
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	GB
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	95911229.3

	 	 	0749423	 	 	SE
	 	Piperidines And
Pyrrolidines
	 	Novo Nordisk A/S
	 	Amicus
Therapeutics, Inc.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	[***]
	 	 	 	 	 	 	 	 	 	 	 	 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 2 -

 

APPENDIX 3

Amicus Competitors

     The companies to be listed on this Appendix 3 pursuant to Sections 2.2.2(b) and 2.4.4 are as
set forth in that certain letter from Douglas A. Branch to Gary Clements dated as of the Effective
Date.

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

APPENDIX 4

Initial Development Plan

     [***]

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

EXHIBIT 1.5.1

Deoxygalactonojirimycin

     [***]

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

EXHIBIT 1.5.2

Deoxynojirimycin

     [***]

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

EXHIBIT 1.5.3

Isofagomine

[***]

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

EXHIBIT 6.4.4

The Back-up Compounds referenced in §6.6.4(c)(ii) are as set forth in Appendix A of that certain
letter from Douglas A. Branch to Gary Clements dated as of the Effective Date.

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

EXHIBIT 10.6.1

Existing In-Licenses

	1)	 	Agreement, dated as of April 15, 2002, as amended, by and between Amicus and Mount Sinai
School of Medicine of New York University

	2)	 	Exclusive License Agreement, dated as of June 8, 2005, by and between Amicus and Novo
Nordisk, A/S

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 2 -

 

EXHIBIT 16.14

Sections 6, 9 and 10 of the MSSM Agreement

     6. Confidential Information.

          a. In the course of research to be performed under this Agreement, it will be necessary for
each party to disclose “Confidential Information” to the other. For purposes of this Agreement,
“Confidential Information” is defined as all information, data and know-how disclosed by one party
(the “Disclosing Party”) to the other (the “Receiving Party”), either embodied in tangible
materials (including writings, drawings, graphs, charts, photographs, recordings, structures,
technical and other information) marked “Confidential” or, if initially disclosed orally, which is
reduced to writing marked “Confidential” within 21 days after initial oral disclosure, other than
that information which is:

               i) known by the Receiving Party at the time of its receipt, and not through a prior
disclosure by the Disclosing Party, as documented by the Receiving Party’s business records; or

               ii) at the time of disclosure, or thereafter becomes, published or otherwise part of the
public domain without breach of this Agreement by the Receiving Party; or

               iii) obtained from a third party who has the legal right to make such disclosure and without
any confidentiality obligation to the Disclosing Party; or

               iv) independently developed by the Receiving Party without the use of Confidential
Information received from the Disclosing Party and such independent development can be documented
by the Receiving Party; or

               v) disclosed to governmental or other regulatory agencies in order to obtain patents,
provided that such disclosure may be made only to the extent reasonably necessary to obtain such
patents or authorizations, and further provided that any such patent applications shall be filed in
accordance with the terms of this Agreement; or

               vi) required by law, regulation, rule, act or order of any governmental authority to be
disclosed.

          b. The Receiving Party agrees that at all times and notwithstanding any termination,
expiration, or cancellation hereunder, it will hold the Confidential Information of the Disclosing
Party in strict confidence, will use all reasonable safeguards to prevent unauthorized disclosure
by its employees and agents. Notwithstanding the foregoing, the parties recognize that
industry standards with respect to the treatment of Confidential Information may not be appropriate
in an            academic setting. However, MSSM agrees to retain Confidential Information of AMICUS
in the same manner and with the same level of confidentiality as MSSM retains its own Confidential
information.

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

          c. The Receiving Party will maintain reasonable procedures to prevent accidental or other
loss, including unauthorized publication of any Confidential Information of the Disclosing Party.
The Receiving Party will promptly notify the Disclosing Party in the event of any loss or
unauthorized disclosure of the Confidential Information.

          d. Upon termination or expiration of this Agreement, and upon written request, the Receiving
Party will promptly return to the Disclosing Party all documents or other tangible materials
representing Confidential Information and all copies thereof.

          e. The Receiving Party will immediately notify the Disclosing Party in writing, if it is
requested by a court order, a governmental agency, or any other entity to disclose Confidential
Information in the Receiving Party’s possession. The Disclosing Party will have an opportunity to
intervene by seeking a protective order or other similar order, in order to limit or prevent
disclosure of the Confidential Information. The Receiving Party will disclose only the minimum
Confidential Information required to be disclosed in order to comply, whether or not a
protective order or other similar order is obtained by the Disclosing Party.

     9. Liability and Indemnification.

          a. AMICUS shall indemnify, defend and hold harmless MSSM and its trustees, officers,
directors, medical and professional staff, employees, students and agents and their respective
successors, heirs and assigns (the “Indemnitees”), against any liability, damage, loss or expense
(including reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon the
Indemnitees or any one of them in connection with any claims, suits, actions, demands or judgments:
(i) arising out of the production, manufacture, sale, use in commerce or in human clinical trials,
lease, or promotion by AMICUS or by a licensee, Affiliate or agent of AMICUS of any Licensed
Product, process or service relating to, or developed pursuant to, this Agreement, or (ii) arising
out of any other activities to be carried out pursuant to this Agreement.

          b. AMICUS’s indemnification under subsection a(i), above, shall apply to any liability,
damage, loss or expense whether or not it is attributable to the negligent activities of the
Indemnitees. AMICUS’s indemnification under subsection a (ii), above, shall not apply to any
liability, damage, loss or expense to the extent that it is attributable to the negligence,
gross negligence or intentional misconduct of the Indemnitees.

          c. AMICUS shall, at its own expense, provide attorneys reasonably acceptable to MSSM to
defend against any actions brought or filed against any party indemnified hereunder with respect to
the subject of indemnity contained herein, whether or not such actions are rightfully brought.

          d. EXCEPT AS PROVIDED IN THIS SECTION 9, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR
INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES.

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 2 -

 

     10. Security for Indemnification.

          a. At such time as any Licensed Product is being commercially distributed or sold (other
than for the purpose of obtaining regulatory approvals) by AMICUS or by a sub-licensee, Affiliate
or agent of AMICUS and to the extent that it is available on commercially reasonable terms, AMICUS
shall at its sole cost and expense, procure and maintain policies of comprehensive general
liability insurance in amounts not less than [***] per incident and [***] annual aggregate and
naming the indemnitees as additional insureds. Such comprehensive general liability insurance
shall provide (i) product liability coverage and (ii) broad form contractual liability coverage for
AMICUS’s indemnification under Section 9 of this Agreement. The minimum amounts of insurance
coverage required under this Section 10 shall not be            construed as a limit of AMICUS’s
liability with respect to its indemnification under Section 9 of this Agreement.

          b. AMICUS shall provide MSSM with written evidence of such insurance upon request of MSSM.
AMICUS shall provide MSSM with written notice at least 60 days prior to the cancellation,
non-renewal or material change in such insurance; if AMICUS does not obtain replacement insurance
providing comparable coverage within such 60 day period effective immediately upon notice to
AMICUS, MSSM shall have the right to terminate this Agreement effective at the end of such 60 day
period without notice or any additional waiting periods.

          c. AMICUS shall maintain such comprehensive general liability insurance beyond the
expiration or termination of this Agreement during: (i) the period that any product, process or
service, relating to, or developed pursuant to, this Agreement is being commercially distributed or
sold (other than for the purpose of obtaining regulatory approvals) by AMICUS or by a licensee,
Affiliate or agent of AMICUS and (ii) a reasonable period after the period referred to in (c)(i)
above which in no event shall be less than seven years.

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 3 -

 

SCHEDULE 7.3.4

     U.S. Patent No. 6,344,475

     U.S. Patent No. 6,270,954

     U.S. Patent No. 6,541,195

     U.S. Patent No. 5,900,360

     Australian Patent No. AU 775 575 B2

     Australian Patent No. AU 734 905 B2

     [***]

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 4 -

 

SCHEDULE 12.2

     This Schedule 12.2 is made and given pursuant to Section 12.2 of the Agreement. The section
numbers below correspond to the section numbers of the Agreement. Nothing in this Schedule 12.2 is
intended to broaden the scope of any representation or warranty contained in the Agreement or to
create any covenant. The information contained in this Schedule 12.2 is provided solely for
purposes of making disclosures to Shire under the Agreement. In disclosing such information, Amicus
does not waive any attorney-client privilege associated with such information or any protection
afforded by the work-product doctrine with respect to any of the matters disclosed or discussed in
this Schedule 12.2.

          [***]

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 5 -

 

Letter from Douglas A. Branch to Gary Clements dated as of the Effective Date

November 7, 2007

Mr. Gary Clements 

Senior Business Development Director 

Shire Human Genetic Therapies 

700 Main Street 

Cambridge, MA 02139

			
	          Re:	 	License and Collaboration Agreement (the “Agreement”) by and between Amicus
Therapeutics, Inc. (“Amicus”) and Shire Pharmaceuticals Ireland Ltd. (“Shire”)

          Dear Mr. Clements:

               In connection with Sections 2.2.2(b) and 2.4.4 of the above-referenced Agreement, Appendix A
to this letter sets forth the companies to be listed on Appendix 3 of the Agreement.

Very truly yours,

/s/ Douglas Branch

Douglas A. Branch

Vice President and General Counsel

     Acknowledged by:

     /s/ Gary Clements

                                                                 

     Mr. Gary Clements

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 6 -

 

APPENDIX A

     [***]

        .

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 7 -

 

November 7, 2007

Mr. Gary Clements

Senior Business Development Director

Shire Human Genetic Therapies

700 Main Street

Cambridge, MA 02139

			
	           Re:	 	License and Collaboration Agreement (the “Agreement”) by and between Amicus
Therapeutics, Inc. (“Amicus”) and Shire Pharmaceuticals Ireland Ltd. (“Shire”)

          Dear Mr. Clements:

               As required by Section 6.4.4(a)(ii) of the above-referenced Agreement, Appendix A to this
letter contains the list of Back-Up Compounds referenced therein.

Very truly yours,

/s/ Douglas Branch

Douglas A. Branch  

Vice President and General Counsel

     Acknowledged by:

     /s/ Gary Clements

                                                                 

     Mr. Gary Clements

          [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

- 8 -

 

APPENDIX A

     [***]

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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