CONFIDENTIAL PROVISIONS REDACTED ASSET PURCHASE AGREEMENT

Asset Purchase Agreement

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EKR THERAPEUTICS, INC | PDL BIOPHARMA, INC

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Title: CONFIDENTIAL PROVISIONS REDACTED ASSET PURCHASE AGREEMENT
Governing Law: California Date: 5/12/2008
Industry: Biotechnology and Drugs Law Firm: DLA Piper;Milbank Tweed Sector: Healthcare

Exhibit 10.5

CONFIDENTIAL PROVISIONS REDACTED

ASSET PURCHASE AGREEMENT

BY AND BETWEEN

PDL BIOPHARMA, INC.,

a Delaware corporation

and

EKR THERAPEUTICS, INC. ,

a Delaware corporation

Dated as of February 4, 2008

CONFIDENTIAL TREATMENT REQUESTED

TABLE OF CONTENTS

			Page
ARTICLE 1 DEFINITIONS

	1.1	“Accounts Payable”	1

	1.2	“Accounts Receivable”	1

	1.3	“Affiliate”	1

	1.4	“Agreement”	1

	1.5	“Assets”	1

	1.6	“Assumed Contracts”	1

	1.7	“Assumed Liabilities”	1

	1.8	“Books and Records”	1

	1.9	“Business”	2

	1.10	“Business Employee”	2

	1.11	“Buyer”	2

	1.12	“Buyer Indemnitee(s)”	2

	1.13	“Cardene”	2

	1.14	“Cardene Drug Product”	2

	1.15	“Cardene IV”	2

	1.16	“Cardene Packaged Product”	2

	1.17	“Cardene [***] Product”	2

	1.18	“Cardene Product Inventory”	2

	1.19	“Cardene SR”	2

	1.20	“Claim”	2

	1.21	“Clinical Data”	2

	1.22	“Clinical Trial”	2

	1.23	“Clinical Trial Materials”	2

	1.24	“Clinical Trial Study Reports”	3

	1.25	“Closing”	3

	1.26	“Closing Date”	3

	1.27	“Confidential Information”	3

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

CONFIDENTIAL TREATMENT REQUESTED

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1.28	“Confidentiality Agreement”	3

1.29	“Copyrights”	3

1.30	“[***]”	3

1.31	“Customer Orders”	3

1.32	“CV Products”	3

1.33	“Drug Products”	3

1.34	“Effective Date”	3

1.35	“Employee Benefit Plans”	3

1.36	“Escrow Agent”	4

1.37	“Escrow Agreement”	4

1.38	“Escrow Amount”	4

1.39	“Excluded Assets”	4

1.40	“Excluded Liabilities”	4

1.41	“FDA”	4

1.42	“FD&C Act”	4

1.43	“GAAP”	4

1.44	“Governmental Entity”	4

1.45	“HSR”	4

1.46	“HSR Filings”	4

1.47	“IND”	4

1.48	“Initial FDA Approval”	4

1.49	“Initial Purchase Price”	4

1.50	“Intellectual Property	4

1.51	“Knowledge”	4

1.52	“Liabilities”	5

1.53	“Licensed IP Rights”	5

1.54	“Litigation Cooperation Agreement”	5

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

CONFIDENTIAL TREATMENT REQUESTED

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1.55	“Marketed Products”	5

1.56	“Marketing and Promotional Documents”	5

1.57	“Material Adverse Change” and “Material Adverse Effect”	5

1.58	“Milestone and Revenue Payments”	5

1.59	“Milestone Payments”	5

1.60	“Net Sales”	5

1.61	“Net Sales Adjustments”	6

1.62	“NDA”	6

1.63	“Non Product-Specific Manufacturing Information”	6

1.64	“Packaging Inventory”	7

1.65	“Packaged Products”	7

1.66	“Patents”	7

1.67	“[***]”	7

1.68	“Product Inventory”	7

1.69	“Product-Specific Manufacturing Information”	7

1.70	“Product Specifications”	7

1.71	“Purchase Price”	7

1.72	“Raw Materials and WIP”	7

1.73	“Registrations”	7

1.74	“Research and Development Materials”	7

1.75	“Retavase”	7

1.76	“Retavase Drug Product”	7

1.77	“Retavase Packaged Product”	7

1.78	“Retavase Product Inventory”	7

1.79	“Revenue Payments”	8

1.80	“SEC”	8

1.81	“Seller”	8

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

CONFIDENTIAL TREATMENT REQUESTED

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				Page

	1.82	“Seller Indemnitees”		8

	1.83	“[***]”		8

	1.84	“Sun Litigation”		8

	1.85	“Survival Date”		8

	1.86	“Tangible Assets”		8

	1.87	“Tax” and “Taxes”		8

	1.88	“Territory”		8

	1.89	“Third Party Consents”		8

	1.90	“Trade Secrets”		8

	1.91	“Trademarks”		8

	1.92	“Trademark Registrations”		9

	1.93	“Transition Services Agreement”		9

	1.94	“Ularitide”		9

	1.95	“Worldwide Safety Reports”		9

ARTICLE 2 TRANSFER OF ASSETS; LICENSE AND SUBLICENSE				9

	2.1	Purchase and Sale of Assets		9

		(a)	Patents	9

		(b)	Licensed IP Rights	9

		(c)	Trademark Registrations	10

		(d)	Copyrights	10

		(e)	Registrations	10

		(f)	Product-Specific Manufacturing Information	10

		(g)	Non Product-Specific Manufacturing Information	10

		(h)	Research and Development Materials	11

		(i)	Marketing and Promotional Documents	11

		(j)	Worldwide Safety Reports	11

		(k)	Clinical Data	11

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

CONFIDENTIAL TREATMENT REQUESTED

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		(l)	Tangible Assets	11

		(m)	Domain Names	11

		(n)	Product Inventory	11

		(o)	Raw Materials and WIP	12

		(p)	Assumed Contracts	12

		(q)	Clinical Trial Materials	12

		(r)	Clinical Trial Study Reports	12

		(s)	Sun Litigation	12

		(t)	Books and Records	12

		(u)	Customer Orders	12

		(v)	Packaging Inventory	12

		(w)	Other Intellectual Property	13

	2.2	Excluded Assets		13

	2.3	Assumed Liabilities		13

	2.4	Excluded Liabilities		14

	2.5	Risk of Loss		15

	2.6	Taxes		15

	2.7	Third-Party Consents		15

ARTICLE 3 CONSIDERATION				16

	3.1	Purchase Price		16

	3.2	Method of Payment		17

	3.3	Revenue Payments; Reports		18

	3.4	Accounting		18

	3.5	Records; Audits		18

	3.6	Late Payments		19

	3.7	Allocation of Purchase Price		19

ARTICLE 4 CLOSING				20

	4.1	Closing		20

	4.2	Actions at Closing		20

		(a)	Deliveries by Seller at Closing	20

CONFIDENTIAL TREATMENT REQUESTED

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		(b)	Deliveries by Buyer at Closing	21

ARTICLE 5 EMPLOYMENT MATTERS				22

	5.1	Employees		22

ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF SELLER				24

	6.1	Organization and Authority		24

	6.2	No Violation or Conflict		24

	6.3	Consents and Approvals		24

	6.4	Assumed Contracts		25

	6.5	Title to Assets		25

	6.6	Intellectual Property		25

	6.7	Regulatory Status of Marketed Products		28

	6.8	Product Net Sales		28

	6.9	Violations of Law		28

	6.10	Litigation		28

	6.11	Employees		28

	6.12	Taxes		29

	6.13	Customers and Suppliers		29

	6.14	Inventory; Raw Materials and WIP		29

	6.15	Clinical Trials		30

	6.16	Absence of Change		30

	6.17	No Undisclosed Liabilities		31

	6.18	Sufficiency		31

	6.19	Brokers and Finders		31

	6.20	No Implied Warranty		31

ARTICLE 7 REPRESENTATIONS AND WARRANTIES OF BUYER				31

	7.1	Organization and Authority		31

	7.2	No Conflict or Violation		32

	7.3	Consents and Approvals		32

	7.4	Cash Resources		32

	7.5	Litigation		32

CONFIDENTIAL TREATMENT REQUESTED

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	7.6	Brokers and Finders	32

	7.7	Buyer Due Diligence	33

ARTICLE 8 PRE-CLOSING COVENANTS			33

	8.1	Governmental Filings	33

	8.2	Conduct of Business	33

	8.3	No Solicitation	34

	8.4	Access	35

	8.5	[***]	35

	8.6	Payment of Certain Expenses	35

	8.7	Transition Services Agreement	35

ARTICLE 9 CONDITIONS TO CLOSING			36

	9.1	Conditions to Obligations of Buyer	36

	9.2	Conditions to Obligations of Seller	37

ARTICLE 10 POST-CLOSING COVENANTS			37

	10.1	Further Assurances	37

	10.2	Transfer of Registrations; Interim Responsibility	39

	10.3	Communication With Agencies	40

	10.4	Adverse Experience Reporting	40

	10.5	Medical Inquiries	41

	10.6	Non-Use of Trademarks	41

	10.7	Documents	41

	10.8	Governmental Inspections	42

	10.9	Intellectual Property Maintenance	42

	10.10	Insurance	42

	10.11	Federal Supply Schedule	43

	10.12	Promotion, Marketing and Labeling	43

	10.13	Payments from Third Parties	43

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

CONFIDENTIAL TREATMENT REQUESTED

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