Common use of EXHIBIT A1 Clause in Contracts

EXHIBIT A1. RESEARCH AND DEVELOPMENT DIRECT COSTS The following is a list of the types of expenses which are considered as "direct" in Exhibit A and would be billable to ASTI when they can be directly identified with ASTI research and development: Collaborative research agreement payments Payments for compound supply Payments for biologicals Payments for chemical precursors Payment for clinical studies Payment for toxicological, pharmacokinetic studies and other outside services Payment for other Allergan functions (non-R&D) which provide services Payment for research grants Payment for consulting services Hiring expenses for people who will work predominantly on ASTI projects Milestone payments to third parties Project travel, entertainment and related expenses Capital equipment purchased exclusively for ASTI projects Miscellaneous project expenses Regulatory and filing fees Telephone and communications Patent and trademark expenses Software