LICENSE AND RESEARCH AGREEMENT
 
This License and Research Agreement (the “Agreement”) is entered into as of July
12, 2004 (the “Effective Date”) by and between BIO-RAP Technologies Ltd. an
Israeli corporation, located at 1 Efron Street, Haifa, Israel (“BIORAP”) on its
own behalf and on behalf of the Rappaport Family Institute for Research in the
Medical Sciences (“RI”); and HaptoGuard, Inc, a Delaware corporation, located at
the offices of EITAN, PEARL, LATZER & COHEN ZEDEK LLP, 10 Rockefeller Plaza,
Suite 1001, New York, NY 10020 (“HAPTOGUARD”).
 
Recitals
 
Whereas, RI owns the Basic Technology (as defined below); and
 
Whereas, HaptoGuard is a biopharmaceutical company that is interested in
developing and commercializing the Basic Technology and is interested in having;
the Principal Investigator (as defined below) conduct the Research Program (as
defined below) to further develop the Basic Technology; and
 
Whereas, BIORAP is a company authorized on behalf of RI to engage in the
commercial exploitation of the Basic Technology (as defined below) and to
administer the Research Program and to commercialize the results;
 
Now Therefore, in consideration of the foregoing and the covenants and premises
contained in this Agreement, the parties agree as follows:
 
1.
Definitions

 
The following capitalized terms shall have the meanings indicated for purposes
of this Agreement.
 
1.1 “Affiliate” shall mean, as to any person or entity, any other person or
entity which directly or indirectly controls, is controlled by, or is under
common control with such person or entity. For purposes of this definition,
“control” shall mean the possession (directly or indirectly) of power to
effectively direct or cause the direction of the management or policies of such
person or entity, and shall include, without limitation, the holding, directly
or indirectly, of more than 50% (fifty percent) of the issued share capital or
of the voting power of the relevant entity or the holding, directly or
indirectly, of a right to appoint more than 50% (fifty percent) of the directors
of such entity or of a right to appoint the chief executive officer of such
entity.
 
1.2 “Automated Diagnostic Field” shall mean the
[***************************************************
*******************************************************************************************************
*******************************************************************************************************
****************].

1.3 “Basic Technology” shall mean the Know-How conceived and developed by the
Principal Investigator in the course of research conducted at RI in the field
prior to the Effective Date.
 

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1.4 “Confidential Information” shall mean any information relating to any
research project, work in process, future development, scientific, engineering,
manufacturing, marketing, business plan, financial or personnel matter relating
to either party or RI, its present or future products, sales, suppliers,
customers, employees, consultants, agents, sub-contractors, investors or
business, or any other information of confidential or proprietary nature,
whether in oral, visual, written, graphic or electronic form.
 
1.5 “Control” shall mean owns or has possession of with the ability to grant a
license without violating the terms of any agreement or other arrangement with
any Third Party.
 
1.6 “Disclosing Party” shall have the meaning provided in Section 6.1.
 
1.7 “Diagnostic Genetic Product” means any product for diagnostic use
[*********************************
*********************************************************************************].

1.8 “Diagnostic Non-Genetic Product” means any product for diagnostic use
[*****************************
*****************************************************************].

1.9 “Field” shall mean testing and/or measurement for diagnostic or predictive
purposes in vascular or cardiac diseases, including, without limitation, the
Automated Diagnostic Field and the Diagnostic Genetic Product, and/or the
therapeutic treatment of vascular or cardiac diseases.
 
1.10 “First Commercial Sale” shall mean, with respect to any Licensed Product,
the first sale on a commercial basis, in an arm’s length transaction for end use
or consumption of such Licensed Product in a country after the governing health
regulatory authority of such country has granted regulatory approval of such
Licensed Product, to the extent such regulatory approval is required in such
country, and, if regulatory approval is not required for the marketing and/or
sale thereof, the First Commercial Sale of such Licensed Product in such country
shall be deemed to have occurred upon the first sale of a Product, except for
testing or as samples.
 
1.11 “Know-How” shall mean know-how, information, knowledge, trade secrets,
inventions, data, processes, techniques, procedures, compositions, materials,
devices, methods, animal models, formulas, protocols and information in the
Field.
 
1.12 “Licensed Materials” shall mean
[***********************************************************
************************************************************************].

1.13 “Licensed Patents” shall mean all Patents which are Controlled by BIORAP as
of the Effective Date, or filed by HaptoGuard in respect of the Research
Technology in accordance with Section 53. The Licensed Patents as of the
Effective Date are listed on Exhibit A.
 
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1.14 “Licensed Product” shall mean any product and/or service, which is covered
by, or falls within the scope of, or is produced or manufactured or rendered (as
the case may be) using a process or method covered by, or falling within the
scope of, any Valid Claim of the Licensed Patents.
 
1.15 “Licensed Technology” shall mean the Basic Technology, Licensed Materials
Licensed Patents and the Research Technology.
 
1.16 “Net Sales” shall mean the amounts collected by HaptoGuard and its
Affiliates and Sublicensees from Third Parties for sales of any Licensed
Product, less, to the extent actually paid for, or credited to such Third
Parties:
 
(i) trade, quantity and cash discounts and rebates actually allowed or given;
 
(ii) sales, excise, turnover, value-added, and similar taxes on the sale of the
Licensed Product, and import and customs duties; and
 
(iii) shipping and insurance charges, postage, and freight out invoiced
separately and actually paid by the customer.
 
Sales of Product by and between HaptoGuard and its Affiliates and Sublicensees
are not sales to Third Parties, grid shall be excluded from Net Sales
calculations for all purposes. Sales of Product for use in conducting clinical
trials of Product in a country in order to obtain the Regulatory Approval of
Product in such country shall be excluded from Net Sales calculations for all
purposes. If a Licensed Product is sold or provided as part of a system,
package, or combination product or service that contains one or more other
active ingredients, or other parts that could be sold separately (each, a
“Combination Product”), Net Sales shall be calculated by multiplying the Net
Sales from the sale of Combination Products by the fraction A/B; where “A” is
the fair market value of the Licensed Product when, supplied or priced
separately and “B” is the fair market value of the Combination Product. In the
event that no market price is available for the Licensed Product when supplied
or priced separately, fair market value shall be determined in good faith by
HaptoGuard and BIORAP.
 
Notwithstanding the foregoing, if any Diagnostic Non-Genetic Product contains
peptides/ligand/antibodies which bind to and are intended to detect more than
one target, then for purposes of the calculation above, Net Sales of such
Diagnostic Nora-Genetic Product shall be multiplied by the quotient of (A) one
(1), divided by (B) the total number of such targets (including the Target) that
are, in each case, detected by such Diagnostic Non-Genetic Product in order to
get FDA approval, to increase the market size of the Diagnostic Non-Genetic
Product, to increase the reimbursement amounts for the product or to otherwise
assist in commercializing such Product. For purposes of the foregoing
calculation, in no event will the value represented by clause (B) above exceed
four (4).
 
1.17 “Non-Automated Diagnostic Field” shall mean the
[****************************************
*******************************************************************************************************
*******************************************************************************************************
***********************************].
 
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1.18 “Patents” shall mean (a) patents and patent applications, and (b) any and
all corresponding foreign patents and patent applications, whether now existing
or hereafter filed, (c) provisionals, substitutions, divisionals,
reexaminations, reissues, renewals, extensions, term restorations,
continuations, continuations-in-part, substitute applications and inventors’
certificates, arising from, or based upon, any of such patents or patent
applications, and (d) patents issuing from any such patent applications.
 
1.19 “Principal Investigator” shall mean Dr. Andrew Levy.
 
1.20 “Receipts” shall mean any consideration whatsoever nature, in cash, or in
kind based on fair market value, paid to HaptoGuard and an Affiliate from a
Sublicense of the Licensed Technology for utilization in the Automated
Diagnostic Field and/or Non Automated Diagnostic Field, and/or Net Sales from
the sale of Diagnostic Genetic Products and Diagnostic Non-Genetic Products.
“Receipts” shall not include payments received for bone fide research and
development and clinical programs conducted by HaptoGuard or an Affiliate.
Notwithstanding the foregoing, if such consideration is paid within the
framework of a larger transaction encompassing payment for assets or
intellectual property other than the Licensed Technology, Receipts shall
encompass only that portion of the consideration that can be attributed to the
Sublicense of the Licensed Technology for utilization in the Automated
Diagnostic Field and/or Non Automated Diagnostic Field, and/or the sale of
Diagnostic Genetic Products and Diagnostic Non-Genetic Products. If BIORAP shall
dispute the portion of the Receipts to be paid by HaptoGuard, BIORAP shall
forward to HaptoGuard within [*********
 
***] of BIORAP receiving such Receipt a written notice detailing the basis and
foundation of the dispute (the “Receipt Notice”). After the end of the
[*******************], BIORAP looses the right to contest or dispute the Receipt
received. If BIORAP provides Receipt Notice, then the Parties shall designate an
agreed assessor, who shall determine the amount of the Receipts under this
Agreement to be paid. If the Parties fail to designate such assessor within
[******
 
*******] of BIORAP’s Receipt Notice then the assessor shall be designated by the
President of the Israel GPA Association at the request of either Party. The
Parties shall provide the assessor with written evidence and the basis for each
other’s position. The Parties shall exchange such evidence in order to give each
Party the opportunity to dispute the evidence of the other Party. The
determination of the agreed assessor shall be final and binding on the Parties.
Such an assessor, shall, in making such determination, act as an expert and not
an arbitrator. In the event, the assessor determines that the amount of Receipts
to be paid by HaptoGuard is greater than [***] of the actual amount of Receipts
paid, then the reasonable costs of the agreed assessor shall be paid by
HaptoGuard.
 
1.21 “Receiving Party” shall have the meaning provided in Section 6.1.
 
1.22 “Regulatory Approval” shall mean the satisfaction of any applicable
regulatory registration and notification requirements (if any) for the testing,
production, marketing, distribution and sale of any Licensed Product in any
country.
 
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1.23 “Research Field” shall mean research in the Field conducted in the
laboratory of the Principle Investigator in accordance with the Research Plan.
 
1.24 “Research Plan” shall mean the plan for conducting the Research Program
attached hereto as Exhibit B, as may be amended from time to time in accordance
with Section 2.1.
 
1.25 “Research Program” shall mean the program for research by the Principal
Investigator and his team in the Research Field, to be conducted at RI during
the Research Term in accordance with the Research Plan.
 
1.26 “Research Technology” shall mean (a) all Know-How conceived or reduced to
practice or generated by or on behalf of RI in the course of the research
conducted under the Research Program; b) materials or compositions generated by
or resulting from the Research Program; and (c) any Patents and other
intellectual property rights on or in the foregoing.
 
1.27 “Research Term” shall mean the four (4) year period following the Effective
Date, which may be extended for an additional one (1) year period by written
agreement of the parties entered into before the end of the period to be
extended.
 
1.28 “Royalty Term” shall mean, with respect to each country in which Licensed
Product is sold, on a product-by-product basis, that time period beginning on
the First Commercial Sale of such Licensed Product in such country and expiring,
on a country-by-country basis, on the later of (i) the expiration in such
country of the last-to-expire Licensed Patent with a Valid Claim or (ii) the
date of expiry of 15 (fifteen) years commencing on the date of First Commercial
Sale of such Licensed Product in such country.
 
1.29 “Sublicense” means any right granted, license given, or agreement entered
into, by HaptoGuard or any Affiliate thereof to or with any Third Party,
permitting any use of the Licensed Technology (or any part thereof) for the
development, use, manufacture, sale and/or offer for sale of any Licensed
Products.
 
1.30 “Sublicensee” shall mean any Third Party to which HaptoGuard or its
Affiliate has granted a Sublicense.
 
1.31 “Term” shall have the meaning provided in Section 8.1.
 
1.32 “Therapeutic Product” shall mean any Licensed Product for the treatment in
the Field as disclosed in the Licensed Patents and covered by a Valid Claim.
 
1.33 “Third Party” shall mean any entity other than BIORAP or HaptoGuard or are
Affiliate of BIORAP or HaptoGuard.
 
1.34 “Valid Claim” shall mean a claim of an issued patent included within the
Licensed Patents, which claim has not lapsed, been cancelled or become abandoned
irrevocably and has not been declared invalid or unenforceable by an unreversed
and unappealable decision or judgment of a court or other appropriate body of
competent jurisdiction, and which has not been admitted to be invalid or
unenforceable through reissue, disclaimer or otherwise.
 
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2.
Research Program

 
2.1 Conduct; Supervision. During the Research Term, the Principle investigator,
through BIORAP, shall conduct the Research Program at RI in accordance with the
Research Plan and this Agreement. Any amendment or revisions to the Research
Plan shall be in writing and shall require approval of the Principle
Investigator, BIORAP and HaptoGuard. Principle Investigator shall regularly
inform the parties of any Research Technology discovered under the Research
Program.
 
2.2 BIORAP does not warrant that the Principal Investigator will continue to be
engaged by it and/or by RI during the entire Research Term. BIORAP undertakes,
prior to or upon the termination of employment of the Principal Investigator
with BIORAP or RI, to use reasonable efforts to employ person/s with the same
expertise and experience in the Research Field to replace him. BIORAP shall only
be obligated to return, subject to any set-off, unexpended and uncommitted
funds, in the event that the Research Program is terminated prior to the end of
the Research Term.
 
2.3 BioRap does not warrant any particular result from the Research Program or
that the Research Plan will be completed by the end of the Research Term.
 
3.
License; Disclosure of Licensed Know-How

 
3.1 License Grant. Subject to the rights and licenses which BIORAP has granted
or may grant pursuant to Sections 3.2 - 3.5, and the terms and conditions of
this Agreement, BIORAP hereby grants to HaptoGuard and its Affiliates during the
Term, an exclusive, worldwide, royalty bearing license, with the right to
sublicense, under the Licensed Technology to research, develop, make, have made,
use, sell, offer for sale, have sold and import Licensed Products in the Field.
 
3.2 BIORAP retains the right to grant Biosite, Inc., a Delaware Corporation,
having a place of business at 11030 Roselle Street, San Diego. California 92121
(hereinafter “Biosite”), an exclusive worldwide license to the Licensed Patents
and Basic Technology to research, develop, make, have made, use, sell, offer for
sale, have sold and import Diagnostic Non-Genetic Product in the Non-Automated
Diagnostic Field.
 
3.3 BIORAP retains the right to grant Biosite, a non-exclusive worldwide license
to the Licensed Patents and Basic Technology to research, develop, make, have
made, use, sell, offer for sale, have sold and import Diagnostic Non-Genetic
Product in the Automated Diagnostic Field.
 
3.4 BIORAP has granted ARUP Laboratories Inc., a Utah Corporation, having a
place of business at 500 Chipeta Way, Salt Lake City, UT 84108 USA (hereinafter
“ARUP”), an non-exclusive license to the Licensed Patents and Basic Technology
to research, develop, make, have made, use, sell, offer for sale, have sold and
import Diagnostic Genetic Product in the Non-Automated Diagnostic Field.
 
6

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3.5 Notwithstanding Section 3.1, RI shall have the right to use the Licensed
Technology for academic non-commercial research purposes in the Field. RI shall
be free to use the Licensed Technology for any purpose outside the Field.
 
3.6 Sublicenses. In the event that HaptoGuard sublicenses any of its rights to
the Licensed Technology to a Sublicensee pursuant to Section 3.1, such
Sublicense shall include terms and conditions consistent with the terms and
conditions of the license granted under this Agreement. Sublicenses, if any,
granted hereunder, will be to Third Parities in an arm’s length transaction
under written agreements, copies of which and of any amendments thereof will be
provided to BIORAP, and conditioned on (i) such Sublicensees’ agreement to
accept and abide with the terms and obligations of this Agreement; (ii)
HaptoGuard being in compliance with its payment obligations hereunder at the
time such Sublicense is granted; (iii) HaptoGuard remaining responsible to
BioRap for the adherence of each of its Sublicensees with the terms and
obligations of this Agreement; (iv) the Sublicense automatically expiring on the
termination of the license for any reason; (v) any act or omission by such
Sublicensee, which would constitute a breach of this Agreement by HaptoGuard,
had it been an act or omission of HaptoGuard, constituting a breach of the
Sublicense entitling HaptoGuard to terminate the Sublicense, and HaptoGuard
hereby undertakes to notify BIORAP forthwith upon being informed of such breach
and, at the request of BIORAP, to exercise such right of termination, unless the
breach is cured by the Sublicensee or HaptoGuard within any cure period provided
for in any Sublicense; and (vi) the Sublicense not being assignable, otherwise
transferable or further sublicenseable, other than with BIORAP’s prior written
consent, which consent shall not be unreasonably withheld.
 
4.
Payments

 
4.1 Research Funding. For Research Term, HaptoGuard agrees to make research
funding payments to BIORAP in the amount of
[***************************************************************************************
***************************] for research performed by BIORAP pursuant to the
Research Plan and the terms of this Agreement. HaptoGuard agrees to pay BIORAP
[*************************************
*********************************************] as set forth on the Research
Plan. All additional payments shall be made on [****************].
 
4.2 Milestone Payments - Therapeutic Products. HaptoGuard agrees to pay BIORAP
the following milestone payments (irrespective of any Sublicense):
 
$[*******] [***********************************];
 
$[*******] [*****************************************************
 
*****************************************************
 
*****************];
 
$[*******] [***********************************************
 
********************].
 
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4.3 Royalties on Sales of Therapeutic Products. HaptoGuard agrees to pay BIORAP
with respect to the Net Sales of each Therapeutic Product the following royalty:
 
(i) A royalty of
[**********************************************************************
******************************];
 
(ii) A royalty of
[*********************************************************************
****************************************************************************];
 
(iii) A royalty of
[********************************************************************
****************************************************************************];
 
(iv) a royalty of
[*********************************************************************
************************].
 
4.4 Division of Receipts in respect of Diagnostic Products. HaptoGuard shall pay
BIORAP an amount equal to [****************] of any and all Receipts received by
HaptoGuard.
 
4.5 Calculation and Payment on Account of Net Sales and Receipts.
 
(i) Unless otherwise explicitly said herein, payments pursuant to Sections 4 and
reports on Net Sales and Receipts shall be calculated and reported for each
calendar quarter. All payments due to BIORAP pursuant to Sections 4 shall be
paid within [***********] of the end of each calendar quarter, unless otherwise
specifically provided herein. Each such payment shall be accompanied by a report
in sufficient detail to permit confirmation of the accuracy of the payment made,
including, without limitation, (i) the number of Licensed Products sold, (ii)
the Net Sales of Licensed Products, including a breakdown of Net Sales according
to identity of seller, currency of sales, dates of invoices and number and type
of Licensed Products sold, and (iii) the Receipts received, including breakdown
according to identity of Sublicensees, the currency of payment and date of
receipt thereof; the applicable royalty payable under Section 4 in U.S. dollars,
the method used to calculate such royalty and the exchange rates used, as
applicable, and the withholding taxes, if any, required by law to be deducted
with respect to such sales, and other deductions applicable as provided in the
definition of “Net Sales”, in Section 1.16 above. Payments to BIORAP with
respect to the Receipts will be paid within [*************] of receipt of
payments by HaptoGuard. The Chief Financial Officer of HaptoGuard shall certify
that each report remitted to BIORAP is a fair and accurate report of the royalty
or other payment due and payable. In case HaptoGuard fails to pay any payment on
its due date, HaptoGuard shall pay interest pursuant to Section 4.6.
 
4.6 Interest Rate. Payment that is not paid on the date such payments are due
hereunder shall bear interest at
[******************************************************************************************************
************************************************************], calculated on the
number of days such payment is delinquent. The interest available to BIORAP
pursuant to this Section. 4.6 shall in no way limit any other remedies available
to BIORAP.
 
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4.7 Tax Withholding. All payments to be made to BIORAP hereunder shall be made
free and clear of, and without any deduction from or on account of, any set-off,
counterclaim or tax. Notwithstanding the foregoing, any tax required to be
withheld by HaptoGuard or any Affiliate or Sublicensee under the laws of the USA
for the account of BIORAP under this Article 4 shall be deducted from the
applicable payment to BIORAP and promptly paid by HaptoGuard or said Affiliate
or Sublicensee for and on behalf of BIORAP to the appropriate governmental
authority (provided that, if HaptoGuard assigns its obligations under this
Agreement to a non-U.S. Affiliate, the amount of any withholding taxes deducted
from payments by such Affiliate to BIORAP shall not exceed the amount of any
withholding taxes that would have been deducted by HaptoGuard had HaptoGuard
made such payment to BIORAP), and HaptoGuard or the Affiliate shall furnish
BIORAP with proof of payment of such tax together with official or other
appropriate evidence issued by the appropriate governmental authority sufficient
to enable BIORAP to support a claim for income tax credit in respect of any sum
so withheld.
 
4.8 Exchange Rate, Manner and Place of Payment. All payments hereunder shall be
payable in U.S. dollars. For payments made on sales of Licensed Product invoiced
in a currency other than U.S. dollars, whenever conversion of payments from any
foreign currency shall be required, such conversion shall he made at a rate of
exchange equal to the rate of exchange for the currency of the country from
which payments are payable as published in The Wall Street Journal, Western
Edition, on the last business day of the calendar quarter for which a payment is
due. All payments owed under this Agreement shall be made by wire transfer to a
bank and account designated in writing by BIORAP, unless otherwise specified in
writing by BIORAP.
 
4.9 Prohibited Payments. Notwithstanding any other provision of this Agreement,
if HaptoGuard is prevented from making any such payment, by virtue of the
statutes, laws, codes or governmental regulations of the country from which the
payment is to be made, then such royalty may be paid by depositing funds in the
currency in which accrued to BIORAP’s account in a bank acceptable to BIORAP in
the country whose currency is involved.
 
4.10 Records; Audits. HaptoGuard shall, and shall cause its Affiliates and
Sublicensees to, keep complete and accurate records pertaining to the sale of
Licensed Product and payment of Receipts in sufficient detail to permit BIORAP
to confirm the accuracy of payments due hereunder. Upon written request to
HaptoGuard by BIORAP, and no more than once in any calendar year, BIORAP shall
have the right to cause an independent, certified public accountant, reasonably
acceptable to HaptoGuard, to audit such records to confirm Net Sales and royalty
payments and payments with respect to Receipts for any calendar year ending not
more than [***********] prior to the date BIORAP requests such audit. BIORAP
agrees to treat, and to cause such accountant to treat, all such information as
confidential and not to use or disclose any such in formation for any purpose
except to determine compliance with this Agreement. For the avoidance of doubt,
HaptoGuard, its Affiliates and Sublicensees shall not be obligated to provide
BIORAP, or such accountant, with access to any records or information other than
that which is necessary to confirm Net Sales, royalty payments or payments with
respect to Receipts payable under this Agreement. Such audits may be exercised
during normal business hours, upon reasonable prior written notice to
HaptoGuard. If any audit or examination shall reveal a deficiency of any payment
due, HaptoGuard shall make payment to BIORAP of such deficiency plus interest
pursuant to Section 4.6. Payment shall be made within [**********] following
announcement of the results of the audit to HaptoGuard and BIORAP. The parties
shall promptly mare any adjustments necessary to reflect the results of such
audit. BIORAP shall bear the full cost of such audit unless such audit discloses
a shortfall by more than [************] from the actual amount of any payment
due under this Agreement, in which case, HaptoGuard shall bear the full cost of
such audit.
 
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5.
Intellectual Property

 
5.1 Title in the Licensed Technology. Subject only to the licenses granted to
HaptoGuard hereunder and other licenses that have or may be granted by BIORAP as
mentioned in Sections 3.2 - 3.4 above, all right, title and interest, in and to
the Licensed Technology, do vest or shall vest in RI exclusively,
 
RI shall obtain appropriate agreements from all personnel or outside contractors
participating in the Research Program, as necessary to assign to RI all right,
title and interest in and to any Research Technology.
 
5.2 Right of First Negotiation and Refusal. Following the Research Terms; BIORAP
shall not assign, license the rights to, negotiate with or for, enter into
negotiations, or otherwise commercialize with any Third Party any Research
Technology in the field without first giving HaptoGuard [***********] prior
written notice. If HaptoGuard is interested in acquiring a license to such
Research Technology, it shall within the said [*************] so notify BIORAP
in writing (the “Notice”), and the parties shall enter negotiations in good
faith with regard to the granting of such license to HaptoGuard. In the event
that the parties hereto do not reach and finalize an agreement within
[********************] starting on the date of the Notice (the “Negotiation
Period”), or if HaptoGuard is not interested in obtaining a license, then BIORAP
shall be free to assign, license the rights to, or otherwise commercialize such
new invention, and BIORAP shall be released from any obligation to HaptoGuard in
respect thereto. In the event that HaptoGuard has exercised its right of first
negotiation hereunder, but HaptoGuard and BIORAP do not reach an agreement
during the Negotiation Period, BIORAP hereby grants HaptoGuard a right of first
refusal on the same terms and conditions which are being offered by or to a
Third Party for the Research Technology, and which BIORAP is willing to accept:
BIORAP shall notify HaptoGuard in writing of any such terms and conditions and
HaptoGuard shall have [**************] to notify BIORAP whether it accepts the
same. If HaptoGuard does not accept such terms and conditions BIORAP shall be
released from any obligation to HaptoGuard in respect thereto.
 
5.3 Prosecution and Maintenance of Patents. HaptoGuard undertakes to file,
prosecute and maintain all Licensed Patents as of the Effective Date, and shall
bear all costs, fees and expenses incurred from and after the Effective Date in
connection with the filing, prosecution and maintenance of such Licensed Patents
by HaptoGuard.
 
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5.4 HaptoGuard shall deliver to BioRap, within a reasonable time, copies of all:
(i) documentation prepared in connection with the filing, maintenance or
prosecution of Licensed Patents; and (ii) correspondence between HaptoGuard and
any patent attorney or any competent authority (where the Licensed Patents may
be filed, maintained or made) all, in each case, relating to the prosecution
and/or maintenance of the Licensed Patents, and provide BIORAP with a reasonable
opportunity to review and discuss with HaptoGuard prosecution strategy and to
consult with HaptoGuard on the content of patent flings with respect to such
Licensed Patents.
 
HaptoGuard undertakes to notify BIORAP in. writing, at least [***********] prior
to the date prescribed by the relevant patent office or by applicable law for
the taking of action with respect to the prosecution and/or maintenance of such
Licensed Patents (HaptoGuard hereby agreeing to irrevocably instruct its patent
attorneys to notify BIORAP, whether or not the appropriate action has been
taken, or will be taken, by HaptoGuard with respect to the prosecution and/or
maintenance of such Licensed Patents as aforesaid), and if it does not desire to
support the continued prosecution or appeals or maintenance of any of the
Licensed Patents. In the event HaptoGuard declines to pursue the prosecution, or
maintenance of any of the Licensed Patents, HaptoGuard must notify BIORAP in
writing within [***********] prior to any such deadline, and then BIORAP may, at
its own expense, continue to prosecute or maintain such Licensed Patent, in
which case HaptoGuard’s license hereunder with respect to such Licensed Patent
shall be terminated forthwith and all rights with respect thereto shall revert
to BIORAP.
 
5.5 Enforcement of Licensed Patents. Each party shall promptly notify the other
in writing of any alleged or threatened infringement of any Licensed Patent of
which such party becomes aware.
 
(i) With respect to any infringement of any Licensed Patent, HaptoGuard shall
have the first right, but not the obligation, to bring and control any action or
proceeding with respect to such infringement at its own expense and by counsel
of its own choice, and BIORAP shall have the right, at its own expense, to be
represented in any such action by counsel of its own choice. If HaptoGuard fails
to bring such an action or proceeding within (i) [****
 
***] following the notice of alleged infringement or (ii) [***********] before
the time limit, if any, set forth in the applicable laws and regulations for the
filing of such actions, whichever comes first, BIORAP shall have the right to
bring and control any action or proceeding with respect to such infringement at
its own expense and by counsel of its own choice it being understood and agreed,
however, that circulation of a draft of such action to BIORAP, accompanied by a
written undertaking of HaptoGuard that such draft will be filed within the
prescribed time limit will satisfy. In the absence of any such action by
HaptoGuard, should BIORAP actually bring such an action or proceeding, within
[***********] after the end of the period described in the preceding sentence,
and provides written notice thereof to HaptoGuard, then HaptoGuard’ license
hereunder, with respect to any such Licensed Patent that is the subject of such
action or proceeding, shall be terminated forthwith and all rights with respect
thereto shall revert to BIORAP.
 
(ii) In the event a party brings an infringement action in accordance with this
Section 5.5, the other party shall cooperate fully, including, if required to
bring such action, the furnishing of a power of attorney. HaptoGuard shall not
settle any patent infringement litigation under this Section 5.5 in a manner
that diminishes the rights or interests of RI and/or BioRap without the consent
of BioRap (which shall not be unreasonably withheld). Except as otherwise agreed
to by the parties as part of a cost-sharing arrangement, any recovery realized
as a result of such litigation, after reimbursement of any litigation expenses
of HaptoGuard and BIORAP, shall be retained by the party that brought and
controlled such litigation for purposes of this Agreement, except that any
recovery realized by HaptoGuard as a result of such litigation, after
reimbursement of the parties’ litigation expenses, shall, to the extent
attributable to lost sales of Licensed Product, be treated as Net Sales of
Licensed Product.
 
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5.6 Third Party Infringement Claims. Each party shall promptly notify the other
in writing of any allegation by a third Party that the activity of either of the
parties pursuant to this Agreement infringes or may infringe the intellectual
property rights of such Third Party. HaptoGuard shall defend and hold harmless
BIORAP, RI and their respective employees and consultants from and against any
such claim involving alleged infringement of Third Party rights by HaptoGuard’s
activities, at its own expense and by counsel of its own choice. If HaptoGuard
fails to defend any such claim against HaptoGuard within (i) [***********]
following the notice of alleged infringement or (ii) [***********] before the
time limit, if any, set forth in the applicable laws and regulations for the
filing of such actions, whichever corner first, then BIORAP shall have the right
to assume the defense against such claim by counsel of its own choice, and
HaptoGuard shall reimburse BIORAP for any costs and reasonable expenses incurred
by BIORAP in the defense from such claim, it being understood and agreed,
however, that circulation of a draft of such action to BIORAP, accompanied by a
written undertaking of HaptoGuard that such draft will be filed within the
prescribed time limit will satisfy. In the absence of any such action by
HaptoGuard; should BIORAP and/or RI actually defend against such claim within
[***********] after the end of the period described in the preceding sentence
and provide written notice thereof to HaptoGuard, and HaptoGuard fails to fully
reimburse BIORAP and RI for any and all costs and expenses incurred by them, and
to indemnify them for any and all damages and/or losses caused to them, in
connection with such claim, then HaptoGuard’s license hereunder, with respect to
any such Licensed Patent that would be adversely affected if such claim were not
defended against, shall be terminated forthwith and all rights with respect
thereto shall revert to BIORAP. HaptoGuard shall not settle any patent
infringement litigation under this Section 5.6 relating to the Licensed Patents,
without first receiving the prior written consent of BIORAP (which shall not be
unreasonably withheld).
 
5.7 Cooperation of the Parties. Each party agrees to cooperate fully in the
preparation, filing, and prosecution of any Licensed Patents under this
Agreement and in the obtaining and maintenance of any patent extensions,
supplementary protection certificates and the like, with respect to any Licensed
Patent claiming a Licensed Product being developed or commercialized by
HaptoGuard or Sublicensees. Such cooperation includes, but is not limited to,
promptly informing the other party of any matters coming to such party’s
attention that may affect the preparation, filing, prosecution or maintenance of
any such Licensed Patents.
 
6.
Confidentiality; Publication

 
6.1 Confidentiality. The parties agree that, during the Term, and for a period
of [**********] thereafter, each party (the“Receiving Party”) will maintain in
confidence, and will not use, all Confidential Information disclosed to it by
the other party (the “Disclosing Party”) under this Agreement, except to the
extent expressly authorized by this Agreement, or otherwise agreed in writing by
the parties. The parties agree that the financial terms of the Agreement will be
considered Confidential Information of both parties. The Receiving Party shall
use at least the same standard of care as it uses to protect proprietary or
confidential information of its own (but at least reasonable care) to ensure
that its employees, agents, consultants and other representatives do not
disclose or make any unauthorized use of the Disclosing Party’s Confidential
Information. Each party will promptly notify the other upon discovery of any
unauthorized use or disclosure of the other party’s Confidential Information.
 
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6.2 Exceptions. The obligations of confidentiality contained in Section 6.1 will
not apply to the extent that it can be established by the Receiving Party, by
competent written evidence, that such Confidential Information:
 
(i) was already known to the Receiving Party, other than under an obligation of
confidentiality, at the time of disclosure by the Disclosing Party;
 
(ii) was generally available to the public or otherwise part of the public
domain at the time of its disclosure to the Receiving Party;
 
(iii) became generally available to the public or otherwise part of the public
domain after its disclosure and other than through any act or omission of the
Receiving Party in breach of this Agreement;
 
(iv) was independently discovered or developed by the Receiving Party without
the use of Confidential Information of the Disclosing Party; or
 
(v) was disclosed to the Receiving Party, other than under an obligation of
confidentiality, by a Third Party who had no obligation not to disclose such
information to others.
 
6.3 Authorized Disclosure. The Receiving Party may disclose the Confidential
Information of the Disclosing Party to the extent such disclosure is reasonably
necessary in the following instances:
 
(i) filing, prosecuting or maintaining the Licensed Patents in accordance with
this Agreement;
 
(ii) practicing the licenses granted hereunder or preparing and submitting
regulatory filings with respect to Licensed Products;
 
(iii) prosecuting or defending litigation or complying with applicable court
orders or governmental laws, rules or regulations including, but not limited to,
disclosures required by the FDA or the Securities and Exchange Commission; or
 
(iv) disclosure to Affiliates, Sublicensees, employees, consultants, agents or
other Third Parties who have a need to know such information for purposes of
this Agreement, or in connection with due diligence or similar investigations,
and disclosure to potential Third Party investors in confidential financing
documents, provided, in each case, that any such Affiliate, Sublicensee,
employee, consultant, agent or Third Party is subject to obligations of
confidentiality and non-use comparable to those set forth in this Section 6.
 
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Notwithstanding the foregoing, in the event a party is required to make a
disclosure of the other party’s Confidential Information pursuant to Section
63(iii), it will, except where impracticable, give reasonable advance notice to
the other party of such disclosure, giving the other party reasonable
opportunity to object to such disclosure or to request confidential treatment
thereof, if available, and use efforts to secure confidential treatment of such
information at least as diligent as such party would use to protect its own
confidential information, but in no event less than reasonable efforts. In any
event, the parties agree to take all reasonable action to avoid disclosure of
Confidential Information hereunder. The parties will consult with each other on
the provisions of this Agreement to be redacted in any filings made by the
parties with the Securities and Exchange Commission or as otherwise required by
law and on any disclosure to Third Parties.
 
6.4 Publications. The parties recognize that the publication of papers regarding
results of and other information regarding the Research Program, including oral
presentations and abstracts, may be beneficial to both parties provided such
publications are subject to reasonable controls to protect Confidential
Information. Accordingly, each party shall have the right to review and approve
any paper proposed for publication by the other party, including oral
presentations mid abstracts, which utilizes data generated from the Research
Program and/or includes the other party’s Confidential Information. Before any
such paper is submitted for publication, the publishing party shall deliver a
complete copy to the non-publishing party at least [*********] days prior to
submitting the paper to a publisher. The non-publishing party shall review any
such paper and give its comments to the publishing party within [**********] of
its receipt of such paper. With respect to oral presentation materials and
abstracts, the non-publishing party shall make reasonable efforts to expedite
review of such materials and abstracts, and shall return such items to the
publishing party with appropriate comments, if any, as soon as practicable, but
in no event later than [*********] days from the date of receipt by the
non-publishing party. The publishing party shall comply with the non-publishing
party’s request to delete references to Confidential Information of the
non-publishing party in any such paper and agrees to withhold publication of
same for an additional [**********] in order to permit the-non publishing party
to obtain patent protection, if the non-publishing party deems it necessary, in
accordance with the terms of this Agreement.
 
7.
Representations and Warranties

 
7.1 Representations and Warranties of BIORAP. BIORAP represents and warrants to
HaptoGuard that:
 
(i) BIORAP has as of the Effective Date, and will continue to have during the
Term, the entire right and power to grain the licenses to HaptoGuard which it
purports to grant herein; and, as of the Effective Date, Controls the Basic
Technology and the Licensed Patents of which are set forth on Exhibit A;
 
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(ii) except as provided in Sections 3.2, 3.3 and 3.4 above, there are, as of the
Effective Date, and during the Term shall be, no outstanding liens,
encumbrances, agreements, understandings, requirements of charges, fees, rights,
conditions or restrictions of any kind, either written, oral or implied,
regarding the Licensed Technology to which BIORAP or BIORAP is or will be a
party or which are or will be binding upon RI or BIORAP or which are or will be
inconsistent or in conflict with any provision of this Agreement;
 
(iii) as of the Effective Date, BIORAP has received no written claim or
accusation that the practice of the Licensed Patents or the manufacture, use or
sale of Licensed Product infringes or may infringe any Third Party patent; and
 
(iv) as of the Effective Date, neither BIORAP nor RI has received a written
notification of any interference proceeding, opposition proceeding, cancellation
proceeding or other protest proceeding relating to the Licensed Patents being
instituted against BIORAP or RI. Further, as of the Effective Date, BIORAP or RI
has not received and has no knowledge of any party contesting or alleging sole
and/or joint inventorship of the Licensed Patents; or ownership and/or rights in
the Licensed Technology;
 
(v) to the best of its knowledge, no filing with or notice to, and no permit,
authorization, consent or approval of any court or tribunal, or administrative,
governmental or regulatory body, agency or authority (a “Governmental Entity”)
or other person, is necessary for the execution and delivery by BIORAP of this
Agreement, for the grant of the licenses to HaptoGuard which are purports to
grant herein, or for the use by HaptoGuard of the Licensed Technology as set
forth herein.
 
(vi) to the best of its knowledge, no Governmental Entity or other third party
imposes any restrictions and limitations on the use by HaptoGuard of the
Licensed Technology, and/or Licensed Products as set forth herein.
 
(vii) to the best of its knowledge, no reimbursements or payments, in the form
of royalties or otherwise are owe or due, will be owed or due to any
Governmental Entity or other person on the Licensed Technology, and/or Licensed
Products.
 
7.2 Representations and Warranties by HaptoGuard. HaptoGuard represents and
warrants to BIORAP that:
 
(i) HaptoGuard shall be responsible for obtaining and causing to remain in
effect such licenses, permits, approvals, and consents as may be required for
its, or its Affiliates or Sublicensees, performance and responsibilities under
this Agreement.
 
(ii) In carrying out its undertakings and responsibilities pursuant to this
Agreement, HaptoGuard shall comply, and shall ensure that its Affiliates and/or
Sublicensees comply, in all material respects, with all applicable laws and
regulations, licenses, permits, approvals and procedures.
 
7.3 Mutual Representations and Warranties. Each party hereby represents and
warrants to the other party that:
 
(i) it is duly authorized to execute and deliver this Agreement and to perform
its obligations hereunder;
 
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(ii) this Agreement is a legal and valid obligation binding upon it and
enforceable in accordance with its terms; and
 
(iii) the execution, delivery and performance of this Agreement do not conflict
with any agreement, instrument or understanding, oral or written, to which it is
a party or by which it may be bound, nor violate any law or regulation of any
court, governmental body or administrative or other agency having jurisdiction
over it.
 
7.4 Disclaimer. Except as expressly set forth herein, NEITHER PARTY MAKES ANY
REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND
EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT,
MERCHANTIBILITY, AND FITNESS FOR A PARTICULAR PURPOSE.
 
NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A WARRANTY OR REPRESENTATION BY
BIORAP OR RI AS TO THE VALIDITY OR SCOPE OF ANY OF THE LICENSED PATENTS.
 
7.5 Performance by Affiliates. The parties recognize that each may perform some
or all of its obligations under this Agreement through Affiliates and/or
Sublicensees; provided, however, that each party shall remain responsible and be
guarantor of the performance by its Affiliates and/or Sublicensees and shall
cause its Affiliates and/or Sublicensees to comply with the provisions of this
Agreement in connection with such performance, and that such performance through
Affiliates and/or Sublicensees shall not adversely affect the rights of the
other party.
 
8.
Term; Termination

 
8.1 Term. The term of this Agreement will commence as of the Effective Date of
this Agreement and, unless sooner terminated as provided hereunder, will
terminate upon the expiration of the last Royalty Term (the “Term”). Upon
expiration of the Royalty Term in a given, jurisdiction, HaptoGuard shall
continue to have a license on the terms described in Section 3.1, except that
such license shall be fully paid, perpetual, irrevocable and nonexclusive.
 
8.2 Termination by HaptoGuard. HaptoGuard shall have the right to terminate this
Agreement for any reason or for no reason upon [************] written notice to
BIORAP. Any payment under Section 4.1 made after the date HaptoGuard notifies
BIORAP of termination under this Section 8.2 shall be the pro rata amount due
for the period prior to the effective date of such termination.
 
8.3 Termination by BIORAP. (a) In the event that HaptoGuard fails to timely make
any payment and such failure continues for [***********] following the date of
notice thereof by BIORAP, BIORAP shall have the right at any time to terminate
this Agreement forthwith upon written notice to HaptoGuard. Notwithstanding
anything in this Section 8.3 to the contrary, to the extent HaptoGuard
reasonably and in good faith disagrees with any assertion by BIORAP that
HaptoGuard has failed to timely make any royalty payment or payment based on any
Sublicense Fee (but not any other payment) due under this Agreement, and
HaptoGuard provides written notice to BIORAP of its disagreement and the basis
for its belief within [****** *********] after HaptoGuard receives notice from
BIORAP of a failure to make payment under this Section 8.3, this Agreement will
remain in effect and any termination of this Agreement under Section 8.3 will be
suspended pending resolution of such disagreement between the parties. The
parties will attempt to resolve such disagreement as expeditiously as possible
and HaptoGuard will continue to comply with the provisions of this Agreement,
including the payment provisions, to the extent that they are not the subject of
the disagreement between the parties.
 
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(b) BioRap shall be entitled to terminate this Agreement (including the license
and right of first refusal granted to HaptoGuard hereunder), unless previously
terminated in accordance with the provisions of this Agreement, if HaptoGuard
fails to achieve any of the milestones or make any payment specified in Exhibit
C.
 
(c) Notwithstanding the provisions of the preceding paragraph (b), in the event
that HaptoGuard fails to meet any of the development milestones set forth in
Exhibit C, with respect to Therapeutic Products, but is making demonstrable good
faith efforts to do so, BIORAP shall refrain from exercising its right to
terminate this Agreement for as long as HaptoGuard continues to do so, but shall
have the right to convert the license granted to HaptoGuard pursuant to Section
3.1 of this Agreement from an exclusive to a non-exclusive license, by written
notice to HaptoGuard, and the rest of the provisions of this Agreement shall
remain unchanged.).
 
8.4 Termination for Cause. Each party shall have the right to terminate this
Agreement upon [***********] written notice to the other upon the occurrence of
any of the following:
 
(i) Upon or after bankruptcy, insolvency, dissolution or winding up or
assignment for the benefit of creditors of the other party (other than a
dissolution or winding up for the purpose of reconstruction or amalgamation) or
a petition is filed for any of the foregoing and is not removed within
[************]; or
 
(ii) Upon or after the breach of any material provision of this Agreement by the
other party, including, with respect to HaptoGuard, its Affiliates or
Sublicensee, (other than as provided in Section 8.3) if the breaching party has
not cured such breach within the [*****************] period following written
notice of termination by the non-breaching party.
 
Notwithstanding anything in this Section 8.4 to the contrary, to the extent
HaptoGuard reasonably and in good faith disagrees with any assertion by BIORAP
that there has been a material breach or material default of this Agreement by
HaptoGuard, its Affiliates or Sublicensee, and HaptoGuard provides written
notice to BIORAP of its disagreement and the basis for its belief within
[*************] after HaptoGuard receives notice from BIORAP of a breach under
this Section 8.4, this Agreement will remain in effect and any termination of
this Agreement under Section 8.4 will be suspended pending resolution of such
disagreement between the parties. The parties will attempt to resolve such
disagreement as expeditiously as possible and HaptoGuard will continue to comply
with the provisions of this Agreement, including the payment provisions, to the
extent that they are not the subject of the disagreement between the parties.
 
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8.5 Effect of Termination; Surviving Obligations.
 
(i) Upon the termination of this Agreement by BIORAP pursuant to Section 8.3 or
by either party pursuant to Section 8.4, all rights and obligations of the
parties under this Agreement shall terminate, except as set forth in this
Section 8.5.
 
(ii) Upon the termination of this Agreement by HaptoGuard pursuant to Section
8.2 or the due termination of this Agreement by BIORAP pursuant to Section 8.3
or 8.4: (i) all rights to the Licensed Technology shall revert to BIORAP; (ii)
HaptoGuard shall immediately cease from any use and/or exploitation of the
Licensed Technology and from developing, using, manufacturing, selling,
distributing and/or licensing any Licensed Product, either directly or
indirectly; (iii) HaptoGuard shall deliver to BIORAP, and shall cause its
Affiliates, agents, consultants and Sublicensees to deliver to BIORAP, all
tables, graphs, diagrams, articles, software, hardware, flow charts,
specifications and other documentation, or media in their possession, power or
control containing, representing or embodying the Licensed Technology or any
part thereof (iv) Without derogating from Sub-Section (iii) above, HaptoGuard
shall provide to BIORAP all data generated by HaptoGuard in the course of
development of Licensed Products, including protocols and results of any
pre-clinical and clinical studies, and hereby grants to BIORAP a non-exclusive,
worldwide, royalty-bearing (as provided below) license, with the right to
sublicense, under any Know-How and Patents Controlled by HaptoGuard, which are
necessary to make, have made, use, sell, offer for sale and import Licensed
Product, solely to make, have made, use, sell, offer for sale and import
Licensed Product; and (iv) all other rights and obligations of the parties under
this Agreement shall terminate, except as set forth in this Section 8.5.
 
(iii) In the event that the license granted to HaptoGuard under Section 3.1 is
terminated in accordance with this Section 8, any existing Sublicenses granted
by HaptoGuard shall remain in effect and shall be automatically assigned by
HaptoGuard to BIORAP so that such Sublicenses shall become direct licenses
between BIORAP and the applicable Sublicensees on the terms set forth herein,
provided that HaptoGuard has paid any amounts due and owing to BIORAP under this
Agreement as of such termination or any such Sublicensee pays BIORAP such
amounts due and owing to BIORAP by HaptoGuard under this Agreement.
 
(iv) Expiration or termination of this Agreement shall not relieve the parties
of any obligation accruing prior to such expiration or termination. Except as
expressly set forth elsewhere in this Agreement, the obligations and the rights
of the parties under Sections 4.5 - 4.10, 5.1, 6, 8.5 and 9 shall survive
expiration or termination of this Agreement.
 
8.6 Rights in Bankruptcy. All rights and licenses granted under or pursuant to
this Agreement by either party to the other party are, and will otherwise be
deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code,
licenses of right to “intellectual property” as defined under Section 101 of the
U.S. Bankruptcy Code. The parties agree that the party not subject to bankruptcy
proceedings, as licensee of such rights under this Agreement, will retain and
may fully exercise all of its rights and elections under the U.S. Bankruptcy
Code. The parties further agree that, in the event of the commencement of a
bankruptcy proceeding by or against any party under the U.S. Bankruptcy Code,
the other party will be entitled to a complete duplicate of (or complete access
to, as appropriate) any such intellectual property and all embodiments of such
intellectual property, and same, if not already in its possession, will be
promptly delivered to them (a) upon any such commencement of a bankruptcy
proceeding upon written request therefor by the party not subject to bankruptcy
proceedings, unless the other party elects to continue to perform all of its
obligations under this Agreement, or (b) if not delivered under (a) above,
following the rejection of this Agreement by or on behalf of either party, upon
written request by the other party.
 
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8.7 Remedies. In the event of any breach of any provision of this Agreement, in
addition to the termination rights set forth herein, each party shall have all
other rights and remedies at law or equity to enforce this Agreement.
 
9.
Indemnification

 
9.1 Indemnification.
 
HaptoGuard hereby agrees to save, defend, indemnify and hold harmless BIORAP, RI
and their respective directors, officers, employees, agents and Affiliates (and
its directors, officers, employees and agents) and, in the event of agent by
HaptoGuard of rights to BIORAP under Section 8.5(ii), BIORAP’s sublicensee of
such rights (and its directors, officers, employees and agents) (each, a “BIORAP
Indenmitee”) from and against any and all losses, damages, liabilities, expenses
and costs, including reasonable legal expenses and attorneys’ fees (“Losses”),
to which a BIORAP Indemnitee may become subject as a result of any claim,
demand, action or other proceeding by any Third Party, to the extent such Losses
arise out of (a) the practice by HaptoGuard, any of its Affiliates and/or
Sublicensees of the license granted under Section 3.1, (b) the development,
manufacture, testing, handling, storage, transportation, sale or use or other
disposition of any Licensed Product by HaptoGuard and/or its Affiliates and/or
Sublicensees, or (c) the exploitation or use by HaptoGuard and/or its Affiliates
and/or Sublicensees of the Licensed Technology or any part thereof, or (d) the
breach by HaptoGuard of any of its obligations hereunder, or (e) any other act
or omission of HaptoGuard and/or its Affiliates and/or Sublicensees except to
the extent such Losses are finally proven to result from the gross negligence
and/or willful misconduct of any BIORAP Indemnitee.
 
BIORAP hereby agrees to save, defend, indemnify and bold harmless HaptoGuard,
its directors, officers, employees and agents, its Affiliates (and its
directors, officers, employees and agents) and its Sublicensees (and its
directors, officers, employees and agents) (each, a “HaptoGuard Indemnitee”)
from and against any and all Losses to which a HaptoGuard Indemnitee may become
subject as a result of any claim, demand, action or other proceeding by any
Third Party to the extent such Losses arise out of (a) the practice by BIORAP of
any license or use of data provided under Section 8.5(ii), including, but not
limited to, the development, manufacture, handling, storage, sale or other
disposition of any Licensed Product by BIORAP, its Affiliates and sublicensees.
In the event a party seeks indemnification under Section 9.1(a) or 9.1(b), it
shall inform the other party (the “Indemnifying Party”) of a claim as soon as
reasonably practicable, after it receives notice of the claim, shall permit the
Indemnifying Party to assume direction and control of the defense of the claim
(including the right to settle the claim solely for monetary consideration), and
skull cooperate as requested (at the expense of the Indemnifying Party) in the
defense of the claim.
 
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9.2 Limitation of Liability. EXCEPT FOR AMOUNTS PAYABLE UNDER SECTIONS 4 AND
9.1, AND LIABILITY FOR BREACH OF CONFIDENTIALITY OR FOR INFRINGEMENT OR
MISAPPROPRIATION, NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER
PARTY ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES,
INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, ARISING FROM OR RELATING TO ANY
BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH
DAMAGES. IT IS SPECIFICALLY AGREED THAT EXCEPT AS SPECIFICALLY ACKNOWLEDGED BY
BIORAP HEREUNDER, RI AND BIORAP SHALL BEAR NO LIABILITY WITH RESPECT TO LICENSED
PATENTS, LICENSED TECHNOLOGY OR ANY PART THEREOF OR OTHERWISE WITH RESPECT TO
LICENSED PRODUCT.
 
Without derogating from the foregoing, and notwithstanding anything to the
contrary herein, BIORAP’s liability under this Agreement will not exceed in the
aggregate the amount of the consideration paid under this Agreement to BIORAP
prior to any such claim, action or suit creating the liability.
 
9.3 Insurance. From and after such time as HaptoGuard or any of its Affiliates
or Sublicensees first commences human clinical trials of Licensed Product,
HaptoGuard shall, or shall cause each such Affiliate or Sublicensee to, at its
own expense, maintain product liability insurance in an amount consistent with
industry standards. Such insurance shall be subscribed for from a reputable
insurance company. The named insured under such insurance shall be HaptoGuard,
the Affiliate or the Sublicensee (as the case may be), BIORAP and RI and the
beneficiaries thereof shall include also the respective employees, officers and
directors of BIORAP and RI. The policy or policies so issued shall include a
“cross-liability” provision pursuant to which the insurance is deemed to be
separate insurance for each named insured (without right of subrogation as
against any of the insured under the policy, or any of their representatives,
employees, officers, directors or anyone in their name) and shall further
provide that the insurer will be obliged to notify each insured in writing at
least 30 (thirty) days in advance of the expiry or cancellation of the policy or
policies. HaptoGuard hereby undertakes, and shall cause its Affiliates and
Sublicensees to undertake, to comply punctually with all obligations imposed
upon it under such policy or policies and in particular, without limiting the
generality of the aforegoing, to pay in full and punctually all premiums and
other payments for which it is liable pursuant to such policy or policies.
HaptoGuard shall, and shall cause its Affiliates and Sublicensees to, submit to
BIORAP copies of the aforesaid insurance policy or policies within 14 (fourteen)
days of the date of issue of each such policy.
 
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9.4 Dispute Resolution. All disputes arising out of or related to this
Agreement, including disputes that may involve the Affiliates of any party
performing hereunder (“Disputes”), shall be resolved in accordance with this
Section 9.4.
 
(i) Any Dispute shall be settled by binding arbitration under the rules of the
International Chamber of Commerce, in Tel-Aviv, by [*******] arbitrators
appointed in accordance with said rules immediately upon the request of either
party, their decision to be final and binding on the parties. The arbitration
shall be conducted in the English language in Tel-Aviv, Israel. The arbitrators
shall exert their best efforts to conduct the proceedings so as to issue an
award within [***********] of the appointment of the arbitrator.
 
(ii) The merits of any Dispute shall be decided in accordance with the law
governing this Agreement, without application of any principle of conflict of
laws. Each party expressly waives any right it may have to a trial by jury of
any Dispute, and also expressly waives any right it may have to seek, or to be
awarded, special or punitive damages on account of any matter that is the
subject of a Dispute. Nothing herein shall limit or restrict a party’s ability
to seek injunctive or other equitable relief in the event of a breach or
anticipated breach of Section 6.
 
(iii) The arbitrators may grant any relief appropriate under the applicable law,
but may not include any penalty or element of punitive or exemplary damages. The
arbitrators may award the costs and expenses of the arbitration. Any party may
seek emergency, interim or provisional relief prior to the appointment of the
arbitrators from any court of competent jurisdiction without prejudice to the
agreement to arbitrate herein contained. After appointment of the arbitrators,
any request for such relief shall be addressed to the arbitrators, who shall
have the power to enter an interim award granting any emergency, interim or
provisional relief to which a party may be entitled ender applicable law.
 
(iv) Any award of money shall be in U.S. dollars and bear interest pursuant to
Section 4.6 if not paid within thirty (30) days after such award. The award of
the tribunal may be entered and enforced in any court of competent jurisdiction.
A court called upon to enforce such an award may require a party resisting
enforcement to pay the reasonable attorney fees and costs of the party seeking
enforcement.
 
21

--------------------------------------------------------------------------------

 
(v) Any duty to arbitrate under this Agreement shall remain in effect and
enforceable after termination of this Agreement for any reason.
 
(vi) Each party has the right before or during the arbitration to seek and
obtain from the appropriate court provisional remedies, such as attachment or
preliminary injunction, to avoid irreparable harm, maintain the status quo, or
preserve the subject matter of the arbitration. This Section 9.4 shall not apply
to any dispute, controversy or claim that concerns (i) the validity or
infringement of a patent, trademark or copyright; or (ii) any antitrust,
anti-monopoly or competition law or regulation, whether or not statutory.
 
10.
Miscellaneous Provisions

 
10.1 Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of Israel, excluding its conflicts of laws
principles.
 
10.2 Entire Agreement; Modification. This Agreement (including the Exhibits
hereto) is both a final expression of the parties’ agreement and a complete and
exclusive statement with respect to all of its terms. This Agreement supersedes
all prior and contemporaneous agreements and communications, whether oral,
written or otherwise, concerning any and all matters contained herein, including
any previous agreements or understandings between RI and/or BIORAP and Mr. Noah
Berkowitz. No rights or licenses with respect to any intellectual property of
either party are granted or deemed granted hereunder or in connection herewith,
other than those rights expressly granted in this Agreement. No trade customs,
courses of dealing or courses of performance by the parties shall be relevant to
modify, supplement or explain any term(s) used in this Agreement. This Agreement
may not be modified or supplemented by any purchase, order, change order,
acknowledgment, order acceptance, standard terms of sale, invoice or the like.
This Agreement may only be modified or supplemented in a writing expressly
stated for such purpose and signed by the parties to this Agreement.
 
10.3 Relationship Between the Parties. The parties’ relationship, as established
by this Agreement, is solely that of independent contractors. This Agreement
does not create any partnership, joint venture or similar business relationship
between the parties. Neither party is a legal representative of the other party,
and neither party can assume or create any obligation, representation, warranty
or guarantee, express or implied, on behalf of the other party for any purpose
whatsoever.
 
10.4 Non-Waiver. The failure of a party to insist upon strict performance of any
provision of this Agreement or to exercise any right arising out of this
Agreement shall neither impair that provision or right nor constitute a waiver
of that provision or right, in whole or in part, in that instance or in any
other instance. Any waiver by a party of a particular provision or right shall
be in writing, shall be as to a particular matter and, if applicable, for a
particular period of time and shall be signed by such party.
 
10.5 Assignment. Except as expressly provided hereunder, neither this Agreement
nor any rights or obligations hereunder may be assigned or otherwise transferred
by either party without the prior written consent of the other party (which
consent shall not be unreasonably withheld); provided, however, that either
party may assign this Agreement and its rights and obligations hereunder without
the other party’s consent in connection with the transfer or sale of all or
substantially all of the business of such party to which this Agreement relates
to an Affiliate or Third Party, whether by merger, sale of stock, sale of assets
or otherwise. In the event of such transaction, however, intellectual property
rights of the acquiring party to such transaction (if other than one of the
parties to this Agreement), which are not specific to Licensed Technology, shall
not be included in the technology licensed hereunder. The rights and obligations
of the parties under this Agreement shall be binding upon and inure to the
benefit of the successors and permitted assigns of the parties. Any assignment
not in accordance with this Agreement shall be void.
 
22

--------------------------------------------------------------------------------

 
10.6 No Third Party Beneficiaries. This Agreement is neither, expressly nor
impliedly made for the benefit of any party other than those executing it,
except for RI.
 
10.7 Severability. If, for any reason, any part of this Agreement is adjudicated
invalid, unenforceable or illegal by a court of competent jurisdiction, such
adjudication shall not affect or impair, in whole or in part, the validity,
enforceability or legality of any remaining portions of this Agreement. All
remaining portions shall remain in full force and effect as if the original
Agreement had been executed without the invalidated, unenforceable or illegal
part.
 
10.8 Notices. Any notice to be given under this Agreement must be in writing and
delivered either in person, by any method of mail (postage prepaid) requiring
return receipt, or by overnight courier or facsimile confirmed thereafter by any
of the foregoing, to the party to be notified at its address(es) given below, or
at any address such party has previously designated by prior written, notice to
the other. Notice shall be deemed sufficiently given for all purposes upon the
earlier of: (a) the date of actual receipt; (b) if mailed, five (5) business
days after the date of postmark; or (c) if delivered by overnight courier with
guaranteed next day delivery, the next business day the overnight courier
regularly makes deliveries.
 
If to HaptoGuard, notices must be addressed to:
 
HaptoGuard, Inc.
Attention: Noah Berkowitz
C/o EITAN PEARL LATZER COHEN ZEDEK, LLP
10 Rockefeller Plaza, Suite 1001
New York, New York 10020
Facsimile: 212 632 3490
 
If to BIORAP, notices must be addressed to:
 
1 Efron Street
P.O. Box 9697
Haifa 31096
Attention: CEO
Telephone: + 972-8295365
Facsimile: + 972-4-8552296
 
10.9 Force Majeure. Each party shall be excused from liability for the failure
or delay in performance of any obligation under this Agreement other than
failure to pay when due by reason of any event beyond such party’s reasonable
control, including, but not limited to, Acts of God, fire, flood, explosion,
earthquake, or other natural forces, war, terrorism, civil unrest, accident,
destruction or other casualty, any lack or failure of transportation facilities,
any lack or failure of supply of raw materials, any strike or labor disturbance,
or any other event beyond reasonable control of the parties similar to those
enumerated above. Such excuse from liability shall be effective only to the
extent and duration of the event(s) causing the failure or delay in performance
and provided that the party has not caused such event(s) to occur. Notice of a
party’s failure or delay in performance due to force majeure must be given to
the other party within ten (10) calendar days after its occurrence. All delivery
dates under this Agreement that have been affected by force majeure shall be
tolled for the duration of such force majeure. In no event shall any party be
required to prevent or settle any labor disturbance or dispute. Should the
performance of obligations hereunder be suspended in the U.S. for reasons not
related to manufacturing or intentional product contamination by a Third Party
and the situation prevails for one hundred and eighty (180) days, then the
non-invoking party may at any time thereafter terminate this Agreement forthwith
and the provisions of Section 9.5 hereof shall apply. In the case where
performance is suspended in the U.S. for reasons related to manufacturing or
intentional product contamination, then within one hundred and twenty (120) days
of such suspension, the party invoking rights under this Section will start to
remedy the suspension and adhere to a stated workplan following start of the
remedy, the workplan designed to address the suspension in a expeditious manner.
 
23

--------------------------------------------------------------------------------

 
10.10 Legal Fees. If any party to this Agreement resorts to any legal action or
arbitration in connection with this Agreement, the prevailing party shall be
entitled to recover reasonable fees of attorneys and other professionals in
addition to all court costs and arbitrator’s fees which that party may incur as
a result.
 
10.11 Headings. The headings contained in this Agreement have been added for
convenience only and shall not be construed as limiting or used in the
interpretation of this Agreement.
 
10.12 Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original document, and all of which, together
with this writing, shall be deemed one instrument.
 
10.13 Language. The parties hereto confirm their agreement that this Agreement,
as well as any amendment hereto and all other documents related hereto
(including legal notices) and all information disclosed hereunder shall be in
the English language only.
 
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
24

--------------------------------------------------------------------------------

In Witness Whereof, the parties hereto have duly executed this Research and
License Agreement, including the Exhibit attached hereto and incorporated herein
by reference.
 
BIO-RAP TECHNOLOGIES LTD.
HAPTOGUARD, INC.
   
By: /s/ David Promof
By: /s/ Noah Berkowitz

--------------------------------------------------------------------------------

Name: David Promof

--------------------------------------------------------------------------------

Name: Noah Berkowitz
Title: CEO
Title: CEO

 
[SIGNATURE PAGE TO RESEARCH AND LICENSE AGREEMENT]
 

25

--------------------------------------------------------------------------------

EXHIBIT A
 
Licensed Patents as of the Effective Date
 
[******************************************************************************************************
***************************************************]
 

 
Our Ref
 
Country
 
Filing Date
 
Application No.
 
Issue Date
 
Patent No.
 
Next Action
 
[*********]
   
[***
[**********
]
]
 
[*********
]
 
[***********
]
 
[********
]
 
[********
]
 
[*********
[*********
]
]

 
[******************************************************************************************************
******************************************************]
 
Our Ref
 
Country
 
Filing Date
 
Application No.
 
Issue Date
 
Patent No.
 
Next Action
 
[*****]
   
[***
]
 
[********
]
 
[*********
]
             
[*********
[*********
]
]

 
[**************************************************************************************************************]
 
Our Ref
 
Country
 
Filing Date
 
Application No.
 
Issue Date
 
Patent No.
 
Next Action
 
[*********]
   
[***
[***
]
]
 
[*********
]
 
[*********
]
 
[*********
]
       
[***
[*********
]
]
[****]
   
[**
[*********
]
]
 
[*********
]
 
[*********
]
             
[***
[*********
]
]

 
[************************************************************************************************]
 
Our Ref
 
Country
 
Filing Date
 
Application No.
 
Issue Date
 
Patent No.
 
Next Action
 
[*********]
   
[***
[***
]
]
 
[*********
]
 
[*********
]
 
[*********
]
 
[*********
]
 
[***
[*********
]
]
[*****]
   
[****
[*********
]
]
 
[*********
]
 
[*********
]
             
[***
[*********
]
]

 
[******************************************************************************************************
***************************************************]
 
Our Ref
 
Country
 
Filing Date
 
Application No.
 
Issue Date
 
Patent No.
 
Next Action
 
[*****]
   
[***
[***
]
]
 
[*********
]
 
[*********
]
             
[*************
[*********
]
]

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
26

--------------------------------------------------------------------------------

EXHIBIT B
 
Research Plan
 
[***********************************************************************************************
*******************************************************************************************************
*******************************************************************************************************
*******************************************************************************************************
*******************************************************************************************************
*******************************************************************************************************
******]
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.

27

--------------------------------------------------------------------------------

 
EXHIBIT C
 
Milestones
 
[*********************************************]
 
[******************************************************************************************************
******************************************************************************************************
******************************************************************************************************
*************************].
 
[***********************************]
 
[***********************************************************************************************
*******************************************************************************************************
*******************************************************************************************************
*****************************************************************].
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
28

--------------------------------------------------------------------------------

To
Mr. Noah Berkowitz
 
We, the undersigned, the Rappaport Institute for Research in the Medical
Sciences (the “Rappaport Institute”), Bio-Rap Technologies Ltd. (“Bio-Rap”) And
HaptoGuard Ltd., hereby represent, warrant and covenant as follows:
 
1.
The License and Research Agreement between BioRap and HaptoGuard Inc., dated
July 12, 2004 (the “Agreement”), supersedes all prior and contemporaneous
agreements and communications, whether oral, written or otherwise, concerning
any and all matters contained therein, including any previous agreements or
understandings between the Rappaport Institute and/or BioRap and/or HaptoGuard
Ltd. and/or Dr. Andrew Levy and yourself (“Previous Agreements”).

 
2.
Any and all Previous Agreements, to the extent they exist, are null and void
ab initio, and never had any binding effect on any party thereto, and we have no
claim in relation thereto.

7/12/04
/s/ David Promof
Date

--------------------------------------------------------------------------------

Rappaport Institute for Research in
 
the Medical Sciences
         
/s/ David Promof
 

--------------------------------------------------------------------------------

Bio-Rap Technologies Ltd.
         

--------------------------------------------------------------------------------

/s/ Noah Berkowitz
 
HaptoGuard Ltd.

 
 
29

--------------------------------------------------------------------------------

 
AMENDMENT TO LICENSE AND RESEARCH AGREEMENT
 
This Amendment to License and. Research Agreement (the “Addendum”) is made and
entered into on the 23rd day of March, 2005 (the “Effective Date”) by and
between BIO-RAP Technologies Ltd. an Israeli corporation, located at l Efron
Street, Haifa, Israel (“BIORAP”) on its own behalf and on behalf of the
Rappaport Family Institute for Research in the Medical Sciences (“RI”) and
HaptoGuard, Inc, a Delaware corporation, located at 2050 Center Avenue, Suite
200, Fort Lee, NJ 07024 (“HaptoGuard”)
 
WHEREAS, BIORAP, RI and HaptoGuard entered into a License and Research Agreement
effective as of July 12, 2004 (the “Agreement”); and
 
WHEREAS, BIORAP has agreed to grant HaptoGuard an option to expand the scope of
the right and license granted to HaptoGuard under the Agreement, as more fully
set forth in this Addendum, and the parties hereto wish to amend the Agreement
and incorporate therein the terms and conditions stated below.
 
NOW THEREFORE, the parties hereto hereby agree to as follows:
 
1.
All capitalized terms used in this Addendum that are not otherwise defined
herein shall have the respective meanings set forth in the Agreement.

 
2.
Section 3 1 of the Agreement shall be deleted in its entirety and replaced with
the following:

 
“3.1 “License Grant. Subject to the rights and licenses which BIORAP has granted
pursuant to Section 3.4 below, and the terms and conditions of this Agreement,
BIORAP hereby grants to HaptoGuard and its, Affiliates during the Term; an
exclusive; worldwide, royalty bearing license; with the right to sublicense;
under the- Licensed Technology to research, develop, make, have made, use, sell,
offer for sale, have sold and import Licensed Products in the Field.”
 
3.
Sections 3.2 and 3.3 of the Agreement are hereby deleted in their entirety.
BIORAP represents and warrants that Biosite has no rights in and to the Licensed
Technology and Basic Technology.

 
4.
A new Section 3.2 shall be incorporated in the Agreement as follows:

 
“3.2 Exclusive Option: BIORAP hereby grants HaptoGuard an exclusive option to
expand the scope of the right and license granted to HaptoGuard under the
Licensed Technology pursuant to Section 3,1 of the Agreement for the sole and
exclusive right to research, develop, make, have made, use, sell, offer for
sale, have sold and import any products in any field whatsoever, including,
without limitation, Diagnostic Genetic Products, Diagnostic Non-Genetic
Products, and the Non-Automated Diagnostic Field (the “Option”). In
consideration for the grant of the Option, HaptoGuard shall pay BIORAP an amount
of [*******] on the Effective Date. This payment shall be non-refundable. The
Option is solely exercisable by HaptoGuard within [********] of the Effective
Date by the delivery of a written notice from HaptoGuard to BIORAP and payment
of an amount of [*******] to BIORAP.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
In addition to the right and license granted in the Option, upon the exercise of
the Option by HaptoGuard:
 
i) HaptoGuard shall have the right to request BIORAP, in writing, to immediately
terminate the License Agreement between ARUP Laboratories and BIORAP of June 15,
2004 (the “ARUP License Agreement”) in accordance with its terms, including the
prior notice requirement, and BIORAP shall immediately terminate the ARUP
License Agreement, in accordance with its terms HaptoGuard agrees to assume any
and all financial obligations arising therefrom, including, without limitation,
the payments specified in Section 10.5 of the ARUP License Agreement as a result
of such termination.
 
ii) In the event the ARUP License Agreement is terminated pursuant to the terms
and conditions thereof due to breach by ARUP Laboratories prior to the exercise
of the Option, BIORAP shall assign to HaptoGuard all rights under the ARUP
License Agreement.
 
iii) In the event that HaptoGuard does not request BIORAP to terminate the ARUP
License Agreement, BIORAP shall assign to HaptoGuard all of its rights and
obligations thereunder, by written notice to ARUP, and HaptoGuard shall be
deemed as having assumed and agreeing to fully and faithfully perform all the
obligations of BIORAP under the ARUP License Agreement as of the date of
exercise of the Option.
 
It is understood and agreed by the parties, that the rights of HaptoGuard under
the Option in the Territory (as defined in the ARUP License Agreement), are
subject to the actual termination of the ARUP License Agreement in accordance
with its terms.
 
5.
Section 3 5 of the Agreement is hereby deleted in its entirety and replaced with
the following:

 
“Notwithstanding Sections 3.1 and 3.3, RI shall have the right to use the
Licensed Technology for academic non-commercial research purposes in any field.
For as long as HaptoGuard does not exercise the Option, and following expiration
of the Option without it having been exercised, RI shall be free to use the
Licensed Technology for any purpose outside the Field.
 
6.
Section 4.4 of the Agreement shall be deleted in its entity and replaced with
the following:

 
“Division of Receipts in respect of Diagnostic Products, HaptoGuard shall pay
BIORAP an amount equal to [****************] of any and all Receipts received by
HaptoGuard. In the event that HaptoGuard exercises the Option as provided
hereunder, HaptoGuard shall pay BIORAP an amount equal to [*************] of any
and all Receipts received by HaptoGuard as of the date of exercise of the
Option”.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
7.
Except for the changes and/or additions stated herein, all the other terms of
the Agreement shall remain valid and bind the parties hereto without any change.
In any case of a contradiction between the provisions of this Addendum and the
provisions of the Agreement, the provisions of this Addendum shall prevail. This
Addendum is incorporated into and made part of the Agreement.

 
IN WITNESS WHEREOF, the parties hereby sign this Addendum:
  

BIO-RAP Technologies Ltd.    HaptoGuard, Inc.            By: /s/ David Promof  
By:  /s/ Noah Berkowitz  

--------------------------------------------------------------------------------

Name: David Promof    

--------------------------------------------------------------------------------

Name: Noah Berkowitz   Title: CEO     Title:  CEO

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
 
 

--------------------------------------------------------------------------------

 
 
SECOND AMENDMENT TO LICENSE AND RESEARCH AGREEMENT
 
This Second Amendment to License and Research Agreement (the “Second Addendum”)
is made and entered into on the 1st day of April 2007 (the “Effective Date of
the Second Addendum”) by and between BioRap Technologies Ltd an Israeli
corporation, located at 1 Efron Street, Haifa, Israel (“BIORAP”) on its own
behalf and on behalf of the Rappaport Family Institute for Research in the
Medical Sciences (“RI”); and Alteon, Inc., a Delaware corporation, located at 6
Campus Drive, Parsippany, New Jersey 07054 which is the successor in interest
company of Haptoguard, Inc., (“Alteon”).
 
WHEREAS, BIORAP, RI and HaptoGuard (now Alteon) entered into a License and
Research Agreement effective as of July 12, 2004, as amended on March 23, 2005
(the “Agreement”); and
 
WHEREAS, pursuant to a License Agreement between BIORAP and Associated Regional
and University Pathologists Inc doing business at ARUP Laboratories at the
University of Utah, U.S.A (“ARUP”) dated 15 June, 2004, BIORAP granted ARUP a
non-exclusive license under certain of the Licensed Patents filed prior to the
Effective Date of the Agreement in respect of portions of the Basic Technology,
to research, develop, make, have made, use, sell, offer for sale, have sold and
import certain diagnostic products and services (“the ARUP Agreement”); and
 
WHEREAS, BIORAP has agreed to assign and transfer to Alteon all of BIORAP’s
rights and obligations under the ARUP Agreement pursuant to an Assignment
Agreement in the form attached hereto as Exhibit D, to be executed by the
parties simultaneously with the execution of this Second Addendum, subject to
the terms and conditions contained herein; and
 
WHEREAS, BIORAP has agreed to grant Alteon the right and license as set forth
below under the Agreement, and the parties hereto wish to amend the Agreement
and incorporate therein the terms and conditions stated below.
 
NOW THEREFORE, the parties hereto hereby agree to as follows:
 
1.
All capitalized terms used in this Second Addendum that are not otherwise
defined herein shall have the respective meanings set forth in the Agreement

 
2.
Throughout the Agreement, the word “HaptoGuard” shall be changed to “Alteon”.

 
3.
The definition of “Basic Technology” in Section 1.3 of the Agreement shall be
deleted in its entirety and replaced with the following:

 
“1.3 “Basic Technology” shall mean the Know-How conceived and developed by the
Principal Investigator in the course of research conducted at RI in the field of
testing, detection, and/or measurement for diagnostic or predictive purposes in
vascular or cardiac diseases (including, diagnostic devices or products for the
measurement of the haptoglobin protein and/or DNA), and/or the therapeutic
treatment of vascular or cardiac diseases.”
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
4.
The definition of “Field” in Section 1.9 of the Agreement shall be deleted in
its entirety and replaced with the following:

 
“1.9 “Field” shall mean any and all fields, including any and all diagnostic,
therapeutic, prognostic, theranostic and/or screening assays.”
 
5.
(i) The parties agree that for the purposes of the Agreement, the Licensed
Patents as of the Effective Date of the Second Addendum are listed in Exhibit
A(1) hereto.

 
(ii) The definition of “Licensed Product” in Section 1,.14 of the Agreement
shall be deleted in its entirety and replaced with the following:
 
“1.14 “Licensed Product” shall mean: (i) any Diagnostic Product; and (ii) any
Therapeutic Product.”
 
6.
A definition of “Diagnostic Product” shall be added to the Definitions section
(Section 1) as set out below, and all references in the Agreement to Diagnostic
Genetic Product and to Diagnostic Non-Genetic Product shall be deemed to refer
to Diagnostic Product (as defined below), save for the reference to Diagnostic
Genetic Product in Section 3.5 which shall remain unchanged:

 
“1.7A “Diagnostic Product” shall mean any product and/or service, other than a
Therapeutic Product, fat use in any Field, the development, production,
rendering, or sale of which includes the use of the Licensed Technology (or any
part thereof) or which is otherwise covered by, or falls within the scope of, or
which is produced, manufactured, or rendered (as the case may be) using a
process or method covered by or falling within the scope of, any Valid Claim of
any Licensed Patent.”
 
7.
The definition of “Therapeutic Product” in Section 1.33 of the Agreement shall
be deleted in its entirety and replaced with the following:

 
“1.33 “Therapeutic Product” shall mean any product solely for the treatment of
any disease or condition in humans and/or animals, the development, production,
rendering, or sale of which is covered by, or falls within the scope of, or
which is produced, manufactured, or rendered (as the case may be) using a
process or method covered by or falling within the scope of, any Valid Claim of
any Licensed Patent.”
 
8.
Section 3.1 of the Agreement shall be deleted in its entirety and replaced with
the following:

 
“3.1 License Grant. BIORAP hereby grants to Alteon and its Affiliates during the
Term, the following:
 

 
i)
an exclusive, worldwide, royalty bearing license, with the right to sublicense,
in respect of and under the Licensed Technology; to research, develop, make,
have made, use, sell, offer for sale, have sold and import Licensed Products;
and

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
-2-

--------------------------------------------------------------------------------

 

 
ii)
an exclusive, worldwide, royalty bearing license, with the right to sublicense,
under the Licensed Patents filed in respect of the Basic Technology (or any
portion thereof) after the Effective Date of the Agreement; to research,
develop, make, have made, use, sell, offer for sale, have sold and import
Licensed Products.”

 
9.
BIORAP represents and warrants that Biosite has no rights in and to the Licensed
Technology and Basic Technology BIORAP undertakes that BIORAP will not license,
assign, transfer, or give a right in or to; or enter any agreement with any
third party for the exploitation and/or commercialization of the Basic
Technology and the Licensed Patents filed in respect of the Basic Technology (or
portion thereof) before the Effective Date of the Agreement in any country.

 
10.
The parties agree that the ARUP Agreement shall be deemed to be a “Sublicense”
and ARUP shall be deemed to be a “Sublicensee” under the Agreement.

 
11.
Section 4.1 of the Agreement shall be deleted in its entity and replaced with
the following:

 
“4.1A Research Funding. Alteon agrees to make research funding payments to
BIORAP for a period of [********] commencing on [************] in the amount of
[**********
**************************************************************************************
**************************************************************************************
*********************************************] for research performed at RI
pursuant to the Research Plan and the terms of this Agreement.”

12.
Section 4.2 of the Agreement shall be deleted in its entirety and replaced with
the following:

 
“Milestone Payments - Therapeutic Products. Alteon agrees to pay BioRap the
following milestone payments (irrespective of whether or not there is any
Sublicense):
 
[******] [******************************************************************************
***************************************************************]; and
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
-3-

--------------------------------------------------------------------------------

 
[******] [*****************************************************************************
****************************************************************].”
 
13.
Section 4.3 of the Agreement shall be deleted in its entirety and replaced with
the following:

 
“Royalties on Sales of Therapeutic Products. Alteon agrees to pay BIORAP with
respect to the Net Sales of each Therapeutic Product the following royalty:
 
i)
a royalty of
[***********************************************************************************************************************];

 
ii)
a royalty of
[******************************************************************************
***************************************************************];

 
iii)
a royalty of [****************************************************
*************************
****************************************************************];

 
iv)
a royalty of [****************************************************
*************************
****************************************************************].”

 
14.
Alteon acknowledges that it is aware that the Principal Investigator, acting in
collaboration with Kupat Holim Clalit, is conducting certain tests at RI using
the Licensed Information (or part thereof) on patients diagnosed with diabetes
(“the Test”). Alteon hereby authorises BIORAP to negotiate and finalize the
terms and conditions of a license agreement with any third party in Israel
solely for the use and commercialisation of the Test in Israel with no right to
sublicense to any other party, which shall be executed by Alteon, as licensor,
subject to Alteon’s review and approval of such terms and conditions which
approval shall not be delayed or withheld unreasonably (“the Israeli
Commercialization Agreement”). The parties agree that Alteon shall be entitled
to negotiate and execute similar agreements with third parties in any other
country in the world, (the Israeli Commercialization Agreement and such other
agreements, collectively, “the Commercialization Agreements”), all subject to
subparagraph (ii) of the amended Section 4.4 in paragraph 19 below. BIORAP
agrees that Alteon shall be the exclusive licensee of any data, results,
intellectual property that result from the Test.

 
15.
Alteon has submitted to BIORAP, for its approval, an initial Development Plan
for the development and commercialization of the Diagnostic Products (including
the Test). The said initial Development Plan, as approved by BIORAP is attached
hereto marked Exhibit E. Within [********] of the Effective Date of the Second
Addendum, Alteon shall submit a detailed Development Plan to BIORAP for its
approval, not to be unreasonably withheld.

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
-4-

--------------------------------------------------------------------------------

 
For the purposes of the Agreement, “Development Plan” means a development plan
specifying the activities and timetable necessary to develop [***************
*********************************************************************************************
*********************************************************************************************
***********************************************].
 
Alteon shall provide BIORAP with semi-annual written progress reports,
commencing on [*******], of the development and commercialisation activities for
the Licensed Product undertaken by Alteon pursuant to the Development Plan.
 
16.
The sections of Exhibit C entitled “Development Milestones for Therapeutic
Products” and “Payment Milestones for Diagnostic Products”, respectively shall
be deleted in their entirety and the following new section shall be added to
Exhibit C:

 
“Development Milestones for Diagnostic Products (including the Test):
 
[*************************************************************************************
*]. Without derogating from any of Alteon’s obligations pursuant to Section 4,
Alteon, at its sole option may extend the foregoing by
[*************************************************************************************
**************************************************************************************
*].”
 
17.
The following new Section 4.4A shall be added before Section 4.4:

 
“Royalties on Sales of Diagnostic Products. Alteon shall pay BIORAP a royalty of
[*****************************************
***********************************].”
 
18.
The following new Section 4.4B shall be added after Section 4.4A:

 
“Payment Milestone for Diagnostic Products:
 
Alteon shall pay BIORAP a minimum royalty of: [****************
*************************************************************************************
*************************************************************************************
**************************** commencing on [***************] and, thereafter on
[*************
*********************************]. The amount of the [***************] payable
by Alteon as aforesaid shall be [***************************
*************************************************************************************
***********] in respect of which Alteon shall have paid *****************].”
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
-5-

--------------------------------------------------------------------------------

 
19.
Section 4.4 of the Agreement shall be deleted in its entity and replaced with
the following:

 
“Division of Receipts in respect of Diagnostic Products. Alteon shall pay BIORAP
an amount equal to [********
**************************************************************************************
**************************************************************************************
**************************************************************************************
**************************************************************************************
**************************************************************************************
******************************************************].”
 
20.
Alteon shall pay BIORAP
[************************************************************************
********************************************************************************************
********************************************************************************************
*******************************************] by no later than the date of expiry
of a period of [*****************************************************
************] it being agreed that such payments are to be made for
[**************

**************************************************] (as originally provided in
Section 4.4 of the Agreement prior to the deletion thereof as set out in
paragraph 19 above),
[*************************************************************************]
respectively, as provided in paragraph 19 above.

21.
In consideration for the payment to BIORAP of an amount of fifty thousand U S
dollars ($50,000), by no later than 1 January 2008, Alteon shall have the
following options:

 
(i) to pay BIORAP an amount of [****************************************
********************************************************************************************
********************************************************************************************
********************************************************************************************
*************] such option to be exercised by Alteon by no later than the expiry
of a period of ****************
********************************] by written notice to BIORAP together with
payment to BIORAP of the said amount; and
 
(ii) to pay BIORAP an amount of [****************************************
**********************************************************************
*************************************************] such option to be exercised
by Alteon by no later than the expiry of a period of [**********************
************************************] by written notice to BIORAP together with
the payment to BIORAP of the said amount.
 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
-6-

--------------------------------------------------------------------------------

 
22.
Section 5.2 of the Agreement shall be deleted in its entity.

 
23.
In Section 10.8, the address of Alteon for notice purposes shall be:

 
Alteon, Inc.
6 Campus Drive
Parsippany, New Jersey 07054
Telephone: 201 818 5500
Facsimile: 201 934 0090
Attention: Noah Berkowitz
 
With a copy to:
 
Pearl Cohen Zedek Latzer; LLP
1500 Broadway, 12th Floor
New York, New York 10036
Telephone: 646 878 0800
Facsimile: 646 878 0801
Attention: Mark Cohen
 
24.
Except for the changes and/or additions stated herein, all the other terms of
the Agreement shall remain valid and bind the parties hereto without any change.
In any case of a contradiction between the provisions of this Second Addendum
and the provisions of the Agreement, the provisions of this Addendum shall
prevail. This Addendum is incorporated into and made part of the Agreement.

 
IN WITNESS WHEREOF, the parties hereby sign this Second Addendum:
 
BIORAP TECHNOLOGIES LTD.
ALTEON, INC.
   
By: /s/ David Promof
By: /s/ Noah Berkowitz

--------------------------------------------------------------------------------

Name: David Promof

--------------------------------------------------------------------------------

Name: Noah Berkowitz
Title: CEO
Title: CEO

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
-7-

--------------------------------------------------------------------------------

EXHIBIT A(1)
 
LICENSED PATENTS
 
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status
[*********]
 
[*********]
 
[**********]
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*******]
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*********]
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[******]
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
     
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
     
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
***************
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
***************
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status

[*********]
 
[*********]
 
[*********]
 
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
     
[**********
***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[***********
*************
************
*******]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[*************
**************
*************
****************
****************
***********
******************
***********]
 
[************
*********
************
***
************]
 
[**********]
                     
[*********]
 
[*********]
 
[*********]
 
[**************
*************
****************
****************
***********
******************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[**************
*****************
**********
**************
*************
*************
***************]
 
[************
*********
************
***
************]
 
**********

                     
[*********]
 
[*********]
 
[*********]
 
[*************
**************
*************
****************
****************
***********
******************
***********]
 
[************
*********
************
***
************]
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

  
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status

[*********]
 
[*********]
 
[**********]
 
[*************
**************
*************
****************
****************
***********
******************
***********]
 
[************
*********
************
***
************]
 
**********
                     
[*********]
 
[*********]
 
[**********]
 
[*************
**************
*************
****************
****************
***********
******************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*********]
 
[*************
**************
*************
****************
****************
***********
******************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*******]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]

                     
[*********]
 
[*********]
 
[******]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

  
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status

[*********]
 
[*********]
 
[*********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************]
*********
************
***
************
 
[*******]
                     
[*********]
 
[*********]
 
[*************]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*******]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************]
*********
************
***
************
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status

[*********]
 
[*********]
 
[******]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[******]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**************]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[*************]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status

[*********]
 
[*********]
 
[***********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[***********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[***************]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[***************]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
PCZL No.
 
Filing date
 
App. No.
 
Title
 
Applicant
 
Status

[*********]
 
[*********]
 
[**********]
 
[************
**************
***********
***************
*****************
*****************
******************
************
****************
***********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**************]
 
[***************
*************
*****************]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[***************
*************
*****************]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**************]
 
[******************
****************
****************
****************
***********
********]
 
[************
*********
************
***
************]
 
[*******]
                     
[*********]
 
[*********]
 
[**********]
 
[******************
****************
****************
****************
***********
********]
 
[************
*********
************
***
************]
 
[*******]
                     
[**********]
 
[*********]
 
[*********]
 
[******************
****************
****************
****************
***********
********]
 
[************
*********
************
***
************]
 
[*******]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

Exhibit D
 
Assignment Agreement
 
This Assignment Agreement (“the Assignment Agreement”) is made and entered into
as of April 1, 2007, (“the Effective Date”) by and between BioRap Technologies
Ltd., an Israeli corporation, located at 1 Efron Street, Haifa, Israel
(“BioRap”) on its own behalf and on behalf of the Rappaport Family Institute for
Research in the Medical Sciences (“RI”); and Alteon, Inc., a Delaware
corporation, located at 6 Campus Drive, Parsippany, New Jersey 07054 (which is
the successor in interest company of Haptoguard, Inc.), (“Alteon”).
 
WHEREAS BioRap and Associated Regional and University Pathologists Inc. doing
business at ARUP Laboratories at the University of Utah, U.S.A. (“ARUP”) are
parties to a License Agreement dated 15 June, 2004, a copy of which is attached
marked Appendix A (“the ARUP License Agreement”); and
 
WHEREAS BioRap wishes to assign and transfer all its rights and obligations
under ARUP License Agreement to Alteon and Alteon wishes to receive the
assignment of BioRap’s rights and obligations as aforesaid, subject to the terms
and conditions set forth herein,
 
NOW, THEREFORE, the Parties agree as follows:
 
1.
As of the Effective Date, BioRap hereby assigns all of its rights and
obligations under ARUP License Agreement to Alteon.

 
2.
As of the Effective Date, Alteon hereby assumes and agrees to be bound by and
fully perform all of the obligations of BioRap under the ARUP License Agreement,
and shall take the benefit of all of BioRap’s rights under the ARUP License
Agreement.

 
3.
It is agreed by the Parties, that pursuant to the Second Amendment to the
License and Research Amendment between the parties effective as of July 12, 2004
(as amended on March 23, 2005) to be executed simultaneously herewith (“the
Second Addendum”), the ARUP Agreement shall be deemed to be a “Sublicense” and
ARUP shall be deemed to be a “Sublicensee” under the Agreement.

 
4.
This Assignment Agreement shall be governed for all purposes by the laws of the
State of Israel, and the parties hereby submit to the exclusive jurisdiction of
the competent courts of Tel Aviv-Jaffa.

 
5.
This Assignment Agreement together with the said License and Research Agreement
between the parties (as amended on March 23, 2005 and by the Second Addendum),
constitute the entire agreement between the parties hereto in respect of the
subject matter hereof; and supersedes all prior agreements or understandings
between the parties relating to the subject matter hereof.

 
6.
This Assignment Agreement may be amended only by a written document signed by
both parties hereto.

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

 
IN WITNESS WHEREOF the parties have signed this Assignment Agreement as of the
date set forth above.
 

BIORAP TECHNOLOGIES      ALTEON, INC.         By:     By:

--------------------------------------------------------------------------------

Name:
Title:
   

--------------------------------------------------------------------------------

Name:
Title:

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 

--------------------------------------------------------------------------------

Exhibit E

Initial Development Plan

Dates
 
Milestones
[************]
 
· [***************************************
*************************************** ***************************************
*******]
· [***************************************
*************************************** ***************************************
*************************************** *******]
· [*************************************** ******************]
     
[************]
 
· [***************************************
****************************************************]
     
[**********]
 
· [*************************************** ***************************]
     
[**********]
 
· [*****************************]
     
[**********]
 
· [*************************************** ***************************]
     
[************]
 
· [********************************************************************************
****************]

 
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company’s application requesting
confidential treatment under Rule 24b-2 under the Securities Exchange Act of
1934.
 
 
 

--------------------------------------------------------------------------------