AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT

THIS AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT (the “Agreement”) is
entered into as of April 2, 2007, having an effective date of April 5, 2007 (the
“Effective Date”) by and between OXIS INTERNATIONAL, a Delaware corporation
(“OXIS”), located at 6040 N. Cutter Circle, Suite 317, Portland OR 97217 and
ALTEON, INC. (FORMERLY KNOWN AS HAPTOGUARD, INC.,) a Delaware corporation
located at 221 W. Grand Avenue, Suite 200, Montvale, NJ 07645 (“Alteon”).

 
RECITALS
 
WHEREAS, OXIS is the owner of certain Licensed Patents, Licensed Compounds,
Licensed Know-How, Licensed Process, and Licensed Product (each as defined
below), as described below;
 
WHEREAS, Alteon is a biopharmaceutical company that is interested in developing
and commercializing the Licensed Product;
 
WHEREAS, OXIS wishes to grant Alteon and Alteon desires to obtain an exclusive,
worldwide license under the Licensed Patents, Licensed Compounds, Licensed
Know-How, Licensed Process, and Licensed Product on the terms set forth herein.
 
WHEREAS, Alteon and OXIS previously entered into an agreement, titled “Exclusive
License Agreement” which was made effective as of February 28, 2004 ( the "Prior
Exclusive License Agreement");

WHEREAS, this Agreement is intended to cover the same intellectual property as
described in the Prior Exclusive License Agreement and evidenced by the Licensed
Patents Licensed Compounds, Licensed Know-How, Licensed Process and Licensed
Product, but, among other things, expands the scope of the previous licenses to
also include non cardiovascular indications;

WHEREAS, the Parties now desire to enter into this “Amended and Restated
Exclusive License Agreement” for the purpose of amending the Prior Exclusive
License Agreement by expanding the rights granted and making certain changes
regarding the terms and conditions and rights and obligations of the Parties;
and

WHEREAS, the Parties intend that this Agreement shall supersede the Prior
Exclusive License Agreement from and as of the Effective Date;

NOW THEREFORE, for good and valuable 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.
 
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.

1

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

 
1.1 “Affiliate” shall mean, as to any 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
ownership of more than 50% of the shares of stock entitled to vote for the
election of directors in the case of a corporation, and more than 50% of the
voting power in the case of a business entity other than a corporation.
 
1.2 “ANDA” shall mean an Abbreviated New Drug Application filed pursuant to the
requirements of the FDA, or the equivalent application in any other country or
jurisdiction, required before Commercial Sale of a drug product.
 
1.3 “Combination Product” any product that combines Licensed Product with any
Alteon product or technology.
 
1.4 “Confidential Information” shall have the meaning in Section 7
 
1.5 “Disclosing Party” shall have the meaning provided in Section 6.1.
 
1.6 “Disputes” shall have the meaning provided in Section 9.4.
 
1.7 “FDA” shall mean the United States Food and Drug Administration or any
successor agency.
 
1.8 “Field” shall mean any and all uses including but not limited to the
therapeutic, diagnostic, preventative, amerliorative, and/or prognostic for and
in any indication, assay, disease and/or condition.
 
1.9 “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
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.
Licensed Product distributed or used for clinical trial purposes shall not be
considered sold, marketed or made publicly available for sale and shall not
constitute first commercial sale.
 
1.10 “Alteon Indemnitee” shall have the meaning provided in Section 9.1(b).
 
1.11 “Generic Competition” shall mean on a country by country basis the
commercial sale of a generic product containing the same compound as Licensed
Product as an active ingredient.
 
1.12 “Indemnifying Party” shall have the meaning provided in Section 9.1(c).
 
1.13 “Parenteral Formulation” shall mean Licensed Product formulated sterilely
for administration through a needle or indwelling catheter to a human subject
 
1.14 “Licensed Know-How” shall mean, with respect to the Field, all information,
data, compositions, materials, method, processes, protocols, reports, techniques
relating to [***************************************************
**********************************************************************************************************************************
**********************************************************************************************************************************
**************************************************
********************************************************************************
***].
 
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

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

 
1.15 “Licensed Compound” shall mean a set of compounds
[*****************************************
*****************************************************************************************************************]
including a set of cyclic organoselenium compounds
[*******************************************] for use in the Field.
 
1.16 “Licensed Patents” shall mean any and all i) Patents covering the Licensed
Compounds, Licensed Process, Licensed Know-How of the Prior Exclusive License
Agreement which have a Valid Claim; and ii)
[****************************************************************************].
 
1.17 “Licensed Process” shall mean synthetic routes, materials, conditions,
and/or processes relating to and for the manufacture of the Licensed Compounds
and/or Licensed Product relating to the Field as disclosed in the Licensed
Patents .
 
1.18 “Licensed Product” shall mean any products prepared, created, generated or
synthesized by use of the [****
**********************************************************************************************************************************
***] BXT-51072 and the organoselenium compounds and formulations thereof
[*********************************
*****].
 
1.19 “Losses” shall have the meaning provided in Section 9.1(a).
 
1.20 “NDA” shall mean a New Drug Application filed pursuant to the requirements
of the FDA, or the equivalent application in any other country or jurisdiction.
 
1.21 “Net Sales” shall mean, except as specified in Section 3.6(c) hereof for
the purposes set forth in such Section, the amount actually received by Alteon
and its Affiliates for sales by Alteon or an Affiliate in a given jurisdiction
of Licensed Product for use in the Field to independent purchasers in arm's
length transactions, less the following customary and reasonable items, actually
allowed or granted for such Licensed Product (if not previously deducted from
the amount invoiced):
 
(a) discounts, credits, retroactive price reductions, rebates, refunds, charge
backs, allowances and adjustments, including Medicaid, managed care and similar
types of rebates, rejections, market withdrawals, recalls and returns, and
administrative fees charged by hospital buying groups and managed care
organizations;
 
(b) trade, quantity and cash discounts and rebates actually allowed or given;
 
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

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

 
(c) sales, excise, turnover, value-added, and similar taxes assessed on the sale
of the Product, and import and customs duties;
 
(d) shipping and insurance charges, postage, and freight out;
 
(e) government imposed rebates or discounts; and
 
(f) payments of actual fees or royalties to bona fide third parties in
connection with the commercialization, licensing, or manufacture of Licensed
Product
 
1.22 Sales of Licensed Product by and between Alteon and its Affiliates and
sublicensees are not sales to Third Parties and shall be excluded from Net Sales
calculations for all purposes. Sales of Product for use in conducting clinical
trials of Licensed Product in a country in order to obtain the regulatory
approval of Licensed Compounds and/or Product in such country shall be excluded
from Net Sales calculations for all purposes. Net Sales shall be determined in a
manner consistent for all products sold by or on behalf of Alteon and in
accordance with applicable U.S. generally accepted accounting principles.
 
1.23 “Non-Parenteral Intravenous Formulation” shall mean Licensed Product
formulated ******************
******************************************************].
 
1.24 “OXIS Indemnitee” shall have the meaning provided in Section 9.1(a).
 
1.25 “OXIS Improvements” shall mean any new invention related to active
pharmaceutical ingredient production, formulation or chemical structure of the
Licensed Processes and/or Licensed Compounds developed by OXIS whereby such
improvements are covered under and/or disclosed by the Patents.
 
1.26 “Patents” shall mean, with respect to the Field, (a) patents and patent
applications, existing as of February 28, 2004 as set for in Appendix A of the
Prior Exclusive License Agreement; (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.
 
1.27 “Phase I Clinical Trial” shall mean a human clinical trial in any country
conducted by Alteon or its Affiliate to initially evaluate the safety of
Licensed Product in human subjects or that would otherwise satisfy the
requirements of 21 CFR 312.21(a) or the equivalent laws, rules or regulations in
a regulatory jurisdiction outside the United States.
 
1.28 “Phase II Clinical Trial” shall mean a human clinical trial in any country
conducted by Alteon or its Affiliate to initially evaluate the effectiveness of
Licensed Product in human subjects with the disease or indication under study or
that would otherwise satisfy the requirements of 21 CFR 312.21(b) or the
equivalent laws, rules or regulations in a regulatory jurisdiction outside the
United States.
 
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

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

 
1.29 “Phase III Clinical Trial” shall mean the first patient dosed in a pivotal
human clinical trial in any country conducted by Alteon or its Affiliate the
results of which could be used to establish safety and efficacy of the Licensed
Product as a basis for approval of an NDA for such Licensed Product or
Additional Product or that would otherwise satisfy the requirements of 21 CFR
312.21(c) or the equivalent laws, rules or regulations in a regulatory
jurisdiction outside the United States.
 
1.30 “Receiving Party” shall have the meaning provided in Section 6.1.
 
1.31 “Regulatory Approval” shall mean approval of an NDA and satisfaction of any
related applicable regulatory registration and notification requirements (if
any).
 
1.32 “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 covered by a Valid Claim in
such country and expiring, on a country-by-country basis, the expiration in such
country of the last-to-expire Licensed Patent with a Valid Claim.
 
1.33 “Sublicense Fee” shall mean
*************************************************************
**********************************************************************************************************************************
**********************************************************************************************************************************
**********************************************************************************************************************************
**********************************************************************************************************************************
*****************************************].
 
1.34 “Sublicensee” shall mean any Third Party to which Alteon or its Affiliate
has granted rights in the to the Licensed Patents covering the Licensed Product
pursuant to the terms of this Agreement.
 
1.35 “Term” shall have the meaning provided in Section 8.1.
 
1.36 “Third Party” shall mean any entity other than OXIS or Alteon or an
Affiliate of OXIS or Alteon.
 
1.37 “U.S.” shall mean the United States.
 
1.38 “Valid Claim” shall mean a claim of an issued patent included within the
Licensed Patents in the Field, 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.
 
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

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

 
2.
LICENSE;

 
2.1 License Grant. Subject to the terms and conditions of this Agreement, OXIS
hereby grants to Alteon and its Affiliates during the Term, with respect to the
Field an exclusive, sole, worldwide, royalty bearing license, with the right to
grant sublicenses through multiple tiers of sublicenses, in, to, and under the
Licensed Patents, Licensed Compounds, Licensed Know-How, Licensed Process, and
Licensed Product to develop, distribute, market, make, have made, use, have
used, sell, have sold, offer for sale, and import Licensed Compounds, Licensed
Processes, and Licensed Products. For the avoidance of doubt, it is understood
and acknowledged by the parties hereto that the Licensed Patents hereunder is
identical to the Licensed Patents and all reformulations disclosed in and
covered by the Licensed Patents under the Prior Exclusive License Agreement.
 
2.2 Sublicenses. In the event that Alteon sublicenses any of its rights
hereunder to a Sublicensee pursuant to Section 2.1, such sublicense shall, as a
condition to the effectiveness of such sublicense, include terms and conditions
consistent with the terms and conditions of the license granted under this
Agreement (including, without limitation, Sections 3.8 and 3.9 hereof).
Sublicenses, if any, granted hereunder, will be to Third Parties in an arm's
length transaction under written agreements (each, a “Sublicense Agreement”),
copies of which will be provided to OXIS, and conditioned on such Sublicensees’
agreement to accept and abide with the applicable terms and obligations of this
Agreement or the Sublicense Agreement, as the case may be.
 
2.3 Disclosure of Licensed Know-How. The parties hereto acknowledge that OXIS
has provided Alteon with the Licensed Know-How required to give effect to the
transactions contemplated herein.
 
2.4 Cross Reference Letters. OXIS agrees to provide Alteon within twenty (20)
days of a written request from Alteon with a cross-reference letter to any OXIS
regulatory applications and approvals relating to the Licensed Compounds. The
cross-reference letter shall be without limitation to clinical phase of the
ongoing study. Any such cross-reference letter shall remain in effect and may
not be revoked by OXIS unless this Agreement is terminated. OXIS shall be
notified and be provided with copies of such cross reference letters for the
Licensed Compounds. Alteon shall be responsible for OXIS’ reasonable fees and
costs associated with the preparation of such cross-reference letters and any
required subsequent actions relating thereto.
 
3.
CONSIDERATION

 
3.1 Upfront Payment. In consideration for the Amended and Restated Exclusive
License Agreement, Alteon will pay OXIS a non-refundable payment in the amount
of Five Hundred Thousand US Dollars ($500,000) to be paid as follows:
[*********************************************************************************************************************************
********] Within Thirty days (30) from an affirmative Alteon shareholder
approval of a financing by Alteon of at least Twenty million dollars (20,000,000
USD), Alteon shall pay OXIS for any amounts unpaid under this section. For the
avoidance of doubt, it is hereby understood by the parties the payment of such
$500,000 fee is in addition to the amounts previously paid in connection with
the Prior Exclusive License Agreement.
 
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

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

 
3.2  Equity Investment. Within 14 days of the Effective Date, Alteon shall
execute a share purchase agreement substantially in the form of Exhibit X
hereto, for the purchase by Alteon and issuance by OXIS of Common Shares of
OXIS, at a [***********] to the per share of common stock
[*************************************], but in any event not less than $[****]
per share, and for a total investment sum of $500,000. Such issued shares shall
be held by Alteon for not less than [*********] from the date of their issuance
(it being understood that Alteon may not transfer in any manner such shares
during this [********] period, except as may be required by law). During such
[********] period, OXIS shall use its commercially reasonable efforts to prepare
a registration statement covering such shares (which may be also included in the
context of [******************] so that upon the expiration of such period, the
shares may be sold free or restrictions. Notwithstanding anything to the
contrary, in the event that the equity investment by Alteon contemplated by this
Section 3.2 causes under applicable accounting standards and guidelines a
requirement to prepare, review or otherwise generate consolidated financial
statements reflecting the financing results of Alteon and OXIS, the parties
hereto agree to use good faith efforts to restructure the equity investment in a
manner so that such principals of consolidation do not apply (e.g. the issuance
of non-voting shares) while preserving the economic benefit of the investment in
OXIS.
 
    3.3 Alteon shall [******] at least
[***********************************************************] in the development
program of [****] for the development, discovery, regulatory advancement,
intellectual property protection (which shall not include defenses against suits
brought by third-parties against [******] for infringement or other similar
claims) and manufacture of the Licensed Product during the first [********]
following the execution of the this Amended and Restated Exclusive License
Agreement [****************************].
[*************************************************************************************************]
hereunder. It is the express intent of the parties that such development
program(s) either under license under this Agreement or pursuant to any
Sublicense Agreement which may be entered into pursuant hereof be for
[********************************************************************************************************************************************************************************
***********************].
 
    [*******************************************************************************************************************]
AND the effect of any Sublicense Agreement on the royalty rates are below [***],
then [****] shall have a [************************], not to exceed [******]
following its receipt of such reasonable [************], to enter into such
[********************************************************************************************************************************************************************************
******************************************************************************]
 
    3.4 Milestone Payments. Alteon will pay OXIS the amounts set forth below
upon the first occurrence of each of the milestone events set forth below, each
such payment to be made within [********] days after achievement of such
milestone event.
[***********************************************************************************
********************************************************************************************************************************************
********************************************************************************************************************************************
***************************************].
 
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

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

(1) [*****************] [******************].
 
[******]
     
(2) [**************************************] [****************].
 
[*******]
     
(3) [****************************************************************************].
 
[*********]
     
(4) [*****************************************************************************
***].
 
[*******]
     
(5) First [******************************
[***********************************************].
 
[*******]
     
(6) First
[*****************************************************************************
***************************].
 
[*******]

 
3.5  [******] the period as set forth in 3.3 of the
[**************************], [*************************] shall
[*********************************************]. [****] has not yet been
[******************************] within the [*******] set forth in Section 3.3
relating to the [********************************] at its sole option may make a
payment to [********] [****************************] [*********************]
start at the end of such [**************] in the following amounts:
[********************************] [***************] [*******]
[*********************] [******************************] [*******] [*******]
[************] [****************].
 
3.6 Royalties. (a) Upon the [***********************************], Alteon shall
pay to OXIS an incremental, tiered annual royalty on a country by country basis
equal to the applicable royalty rate set forth below of [*******] as follows:
 
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.

8

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

 
Portion of Annual [*******] of Licensed Product  Royalty Rate
[********************************]
[**************************************]
[**************************************]
[**************************************]

(b)  Notwithstanding the royalty rates set forth above, in the event that (X)
[*******] has NOT exercised any of its rights to
[************************************] AND (Y) Alteon is required to make actual
payments of fees or royalties to bona fide third parties in connection with the
commercialization, licensing or manufacture of Licensed Product (“Outside
Payments”), then [*****************************************************] as
follows:

(i) Subject to clause (iii) below, with respect to Outside Payments that are not
related to the payment of royalties (the “Non-Royalty Outside Payments”), [*****
*********************************************************************************************];

(ii) Subject to clause (iii) below, with respect to Outside Payments that are
related to the payment of royalties (the “Royalty Outside Payments”),
[***************
*********************************************]  as follows:

(X)
[*****************************************************************************************************************************
*********************************]; and

(Y)[**********************************************************************
********************************************************************************************************************
**************************************].

(iii) Notwithstanding clauses (i) and (ii) above of this Section 3.6(b), in no
event shall the royalty rates payable to OXIS under this Section 3.6 be
[***************
********].
 
(c) As used in this Section 3.6 only, Net Sales shall NOT include clause (f) of
the definition of Net Sales contained in Section 1.21 hereof.
 
3.7 [*******] shall have the sole and exclusive right, and its sole discretion,
to [*************************] as follows (for the avoidance of doubt, it is
hereby understood that each of the following provisions in this Section 3.7
shall be construed independent of the other so that the exercise of any right
under on subsection of this Section 3.7 shall not limit or otherwise affect
another subsection of this Section 3.7):

(a) Upon
[***************************************************************************
***************************************************************************************************
**********************];
 
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.

9

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

 
(b)  On or before July 1, 2009, [********************************]:
 
(i) [********************************************************************************************************************
**************]; or
 
(ii) [****************************************************************************
****************]
 
(c) On or before July 1, 2010,
[**************************************************
**********************************************************************************];
 
(d) On or before July 1, 2012,
[**************************************************
**********************************************************************************];
 
(e) [*******]************************************************************
************************************************************].
 
3.8 Sublicense Fee. (a) Subject to [*******] as hereinafter described in Section
3.8(b) below, Alteon or its Affiliates shall pay to OXIS an amount equal to
[***********] of the Sublicense Fee received from any Sublicensee pursuant to
the Sublicense Agreement.
[**********************************************************
*************************************************************************].
 
(b) [******] Shall have the sole and exclusive right, and its sole discretion,
[*********************************************]:
 
[*******************************************************************************************************************************************
********************************************************************************************************************************************
********************************************************************************************************************************************
********************************************************************************************************************************************
********************************************************************************************************************************************
******************************************************************************************************
**************************************
********************************************************************************************************************************************
**********************************************************].
 
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.

10

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

 
3.9 Calculation and Payment of Royalties and Percentage of Sublicense Fees. 
 
(a) Notwithstanding anything in this Agreement to the contrary, during the
Royalty Term for a given country, the applicable royalty payable on
[*******************] in such country shall be [*******************] of the
royalty rate payable under Section 3.6 for so long as there is a [**********]
covering such Licensed Product in such country.
[****************************************************************************************************************
*******************************************************************************************************************************************
*******************************************************************************************************************************************
*******************].
 
(b) Payments pursuant to Sections 3.4, 3.6 and 3.8 and reports for the sale of
Licensed Product shall be calculated and reported for each calendar quarter. All
payments due to OXIS pursuant to Sections 3.4, 3.6 and 3.8 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 U.S. dollars, the method used to calculate such royalty
and the exchange rates used, as applicable. All payments to OXIS including those
with respect to the Sublicense Fee will be paid within thirty (30) days of
receipt of payments from Sublicensee.
 
3.10 Tax Withholding. Any tax required to be withheld by Alteon or any Affiliate
or Sublicensee under the laws of any foreign country for the account of OXIS
under this Article 3 shall be deducted from the applicable payment to OXIS and
promptly paid by Alteon or said Affiliate or Sublicensee for and on behalf of
OXIS to the appropriate governmental authority (provided that, if Alteon 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 OXIS shall not
exceed the amount of any withholding taxes that would have been deducted by
Alteon had Alteon made such payment to OXIS), and Alteon or the Affiliate shall
furnish OXIS with proof of payment of such tax together with official or other
appropriate evidence issued by the appropriate governmental authority sufficient
to enable OXIS to support a claim for income tax credit in respect of any sum so
withheld.
 
3.11 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, with
respect to each quarter, for countries other than the U.S., whenever conversion
of payments from any foreign currency shall be required, such conversion shall
be 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 OXIS, unless
otherwise specified in writing by OXIS.
 
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.

11

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

 
3.12 Prohibited Payments. Notwithstanding any other provision of this Agreement,
if Alteon 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 OXIS’s account in a bank acceptable to OXIS in the country
whose currency is involved.
 
3.13 Records; Audits. Alteon shall, and shall cause its Affiliates and
Sublicensees to, keep complete and accurate records pertaining to the sale of
Licensed Product and payment of Sublicense Fees in sufficient detail to permit
OXIS to confirm the accuracy of payments due hereunder. Upon written request to
Alteon by OXIS, and no more than [*******************], OXIS shall have the
right to cause an independent, certified public accountant reasonably acceptable
to Alteon to audit such records to confirm Net Sales and royalty payments and
payments with respect to Sublicense Fees for any calendar year ending not more
than three (3) years prior to the date OXIS requests such audit. OXIS agrees to
treat, and to cause such accountant to treat, all such information as
confidential and not to use or disclose any such information for any purpose
except to determine compliance with this Agreement. For the avoidance of doubt,
Alteon, its Affiliates and Sublicensees shall not be obligated to provide OXIS
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 Sublicense Fees payable under this Agreement. Such audits may be
exercised during normal business hours upon reasonable prior written notice to
Alteon. If any audit or examination shall reveal a deficiency of any payment
due, Alteon shall make payment to OXIS of such deficiency. Payment shall be made
within ten (10) days following announcement of the results of the audit to
Alteon and OXIS. The parties shall promptly make any adjustments necessary to
reflect the results of such audit. OXIS 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, Alteon
shall bear the full cost of such audit.
 
4.
INTELLECTUAL PROPERTY

 
4.1 Prosecution and Maintenance of Licensed Patents. Alteon shall control,
prosecute and maintain all Patents included in the Licensed Patents. Alteon
shall provide OXIS with an opportunity to review and discuss with Alteon
prosecution strategy and to consult with Alteon on the content of patent filings
with respect to Licensed Patents. Alteon shall be responsible for all costs,
fees and expenses incurred from and after the Effective Date in connection with
the filing, prosecution and maintenance of such Licensed Patents. Alteon
undertakes to notify OXIS in writing in a timely manner if it does not desire to
support the continued prosecution, appeals, or maintenance of any of the Patents
included in the Licensed Patents. In the event Alteon declines to maintain any
of the Patents included in the Licensed Patents, OXIS may, at its own expense,
continue to prosecute or maintain such Licensed Patent, in which case all rights
with respect to such Patents shall be transferred to OXIS.
 
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.

12

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

 
4.2 Enforcement of Licensed Patents. Each party shall promptly notify the other
in writing of any alleged or threatened infringement of any Patent included in
the Licensed Patents of which such party becomes aware. 
 
(a)  With respect to any infringement or misappropriation in the United States,
Europe or any other territory of any Patent included in the Licensed Patents,
Alteon shall have the sole and exclusive first right, but not the obligation, to
direct, bring and control any action or proceeding in its own name, with respect
to such infringement or misappropriation at its own expense and by counsel of
its own choice, and OXIS shall have the right, at its own expense, to be
represented in any such action by counsel of its own choice. If Alteon fails to
bring such an action or proceeding, OXIS may commence such a proceeding and the
fees and expenses associated with such proceeding shall be borne equally by OXIS
and Alteon.
 
(b) In the event Alteon brings an infringement action in accordance with this
Section 4.2, OXIS shall cooperate fully, including if required to bring such
action, the furnishing of a power of attorney.
[*****************************************************************************************************************
*******************************************************************************************************************************************
*******************************************************************************************************************************************
**********************************].
 
4.3 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. Alteon shall have the sole and exclusive
right to control, direct or defend in its own name any defense, action, appeal
of any such claim, action, proceeding, re-examination, opposition, at its own
expense and by counsel of its own choice without the consent of OXIS. If Alteon
fails to defend any such claim against OXIS, and the failure to so defend would
have an adverse effect on any Patent within the Licensed Patents, then OXIS
shall then have the right to assume the defense against such claim at its own
expense and by counsel of its own choice. Neither party shall have the right to
settle any patent infringement litigation under this Section 4.3 relating to the
Patents in a manner that diminishes the rights or interests of the other party
without the consent of such other party (which shall not be unreasonably
withheld). During the pendency of any such proceeding or any appeal thereof, any
payment hereunder to OXIS shall be paid by Alteon into an interest-bearing
escrow account pending the outcome of such proceeding. Upon a favorable final
resolution of such proceeding or any appeal thereof retaining the full rights,
Alteon shall resume paying OXIS the full royalties, and all funds in such escrow
account shall be paid to OXIS. Upon an unfavorable final resolution of such
proceeding or any appeal thereof, the funds in such escrow account shall be
applied toward the damage award in such action, if any, and the balance, if any,
paid to OXIS.
 
4.4 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 Patent
claiming a Licensed Product being developed or commercialized by Alteon 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 Patents.
 
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.

13

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

 
5.
Joint Development Committee.

 
(a) Formation of JDC. Alteon and OXIS shall form a separate Joint Development
Committee (“JDC”). The JDC shall be comprised of [*****] members[********] from
Alteon; and [*****] from OXIS.
 
(b) Meetings. Meetings of each of the JDC may be called by either Party on
[*******************] written notice to the other unless such notice is waived
by the Parties. Such committees may be convened, polled or consulted from time
to time by means of telecommunication, video communication, or correspondence.
The JDC will meet at least [*********], at sites to be designated by the
chairpersons of such committees or through teleconference or video conference,
as agreed upon by the JDC.
 
(c) Agendas. Each Party will disclose to the other proposed agenda items along
with appropriate Information at least [*** ****************]in advance of each
meeting of the JDC.
 
(d) Responsibilities of the JDC. The JDC will oversee the Parties’ efforts for
development and will oversee and coordinate the Parties’ efforts with respect to
Development. The JDC will review and comment on the Development Plans and
Development Budgets and make non-binding recommendations as may be requested by
either OXIS or Alteon with respect to adjustment of Development, budget and
timetables and the assessment of whether a Licensed Product shall proceed to the
next stage of Development. OXIS will update the JDC periodically, but at least
[******], of all Development activities. The JDC will review and approve, with
respect to Development, the addition of new indications, provided, however, that
it is understood that the JDC shall act in a separate advisory capacity only and
shall not at any time be deemed to be a committee or subcommittee of the Board
of Directors or scientific advisory board of either OXIS or Alteon. The JDC
shall not at any time be authorized to enter into agreements for itself or on
behalf of either OXIS or Alteon.
 
(e) All decisions by the JDC that relate to Alteon/Oxis Development shall be
made by [*****], after an open and informed discussion of the matters as to
which decisions are being made, including, but not limited to those matters
relating to the portion of the Development Plan and Budget directed to
Alteon/Oxis Development.
 
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.

14

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

 

 
·
All publication submissions, regulatory filings, by either company shall be
first submitted to this committee for approval which approval shall not be
unreasonably withheld

 
·
Clinical Development Responsibilities: Alteon will be responsible for all
clinical development, patent and regulatory filings, process
development/manufacturing scale-up, supply of product (via third party
contractor) and costs required to obtain regulatory approval in the U.S. and
other Regulatory filings Oxis shall take all reasonable actions to permit Alteon
development and commercialization to advance. OXIS shall provide any and all
cross references letters to OXIS Drug Master Files or other regulatory files,
for Product regulatory filings

6.
CONFIDENTIALITY

 
6.1 Confidentiality. The parties agree that, during the Term, and for a period
of five (5) years 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.
 
Public Disclosures. Subject to the further provisions of this Section, neither
Party shall originate any written publicity, news release or public
announcement, whether to the public or press, concerning this Agreement,
including the subject matter to which it relates, performance under it or any of
its terms, or any amendment hereto save only such announcements that are i)
approved by both parties in which such approval shall not be unreasonable
withheld; and ii) required by law (or the applicable rules of any securities
exchange or market on which a Party’s securities are listed or traded) to be
made or that are otherwise agreed by the Parties or expressly permitted in this
Agreement. Such announcements shall be factual and as brief as reasonable under
the circumstances. In addition, each Party agrees to submit to the other Party,
for review and written approval, any question and answer sheet or similar
materials (“Q & A”) prior to using such materials as the basis for written or
oral disclosures, which written or oral disclosures must, in any event, be
consistent in content with the information contained in the approved Q & A.
Routine references to this Agreement and the arrangements hereunder shall be
allowed in the usual course of business, and shall be consistent with any
approved Q & A relating thereto. Once information has been approved for
disclosure as part of an approved Q & A or publication under this Section,
either Party may use such approved information in written publicity, news
releases, public announcements and other future communications with Third
Parties. If a Party decides to make an announcement or any filing with a
governmental agency or securities exchange or market as required by law or the
applicable rules of any securities exchange or market on which a Party’s
securities are listed or traded, it will give the other Party at least three (3)
calendar days advance notice, where possible, of the text of the announcement or
content of the filing so that the other Party will have an opportunity to
comment upon the announcement or filing. To the extent that the receiving Party
reasonably requests that any information in the materials proposed to be
disclosed be maintained as confidential, the disclosing Party shall use
commercially reasonable efforts to request confidential treatment of such
information pursuant to Rule 406 of the Securities Act of 1933 or Rule 25b-2 of
the Securities Exchange Act of 1934, as applicable (or any other applicable
regulation relating to the confidential treatment of information), except to the
extent that the disclosing Party receives advice from its legal counsel that
such Confidential Information is required to be disclosed under applicable laws
or regulations. 
 
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.

15

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

 
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:
 
(a) was already known to the Receiving Party, other than under an obligation of
confidentiality, at the time of disclosure by the Disclosing Party;
 
(b) was generally available to the public or otherwise part of the public domain
at the time of its disclosure to the Receiving Party;
 
(c) 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;
 
(d) was independently discovered or developed by the Receiving Party without the
use of Confidential Information of the Disclosing Party; or
 
(e) 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: 
 
(a) filing, prosecuting or maintaining the Licensed Patents in accordance with
this Agreement;
 
(b) practicing the licenses granted hereunder or preparing and submitting
regulatory filings with respect to Licensed Products;
 
(c) 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
 
(d) 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.
 
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.

16

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

 
Notwithstanding the foregoing, in the event a party is required to make a
disclosure of the other party’s Confidential Information pursuant to Section
6.3 (c), it will, except where impracticable, give reasonable advance notice to
the other party of such disclosure 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.
 
7.
REPRESENTATIONS AND WARRANTIES

 
7.1 Representations and Warranties of OXIS. OXIS represents and warrants to
Alteon that, except for the Prior Exclusive License Agreement:
 
(a) OXIS has as of the Effective Date, and will have during the Term, sufficient
rights and power to grant the licenses to Alteon which it purports to grant
herein free and clear of any and all liens and any requirements of charges,
fees, rights, conditions or restrictions of any kind and, as of the Effective
Date;
 
(b)  has not and will not grant, license, convey, assign, and/or transfer to any
Third Party any rights to Licensed Patents, Licensed Compounds, Licensed
Know-How, and Licensed Products, inconsistent with the licenses and other rights
granted hereunder;
 
(c) is the sole owner, and has the entire right, title and interest in the
Licensed Patent, Licensed Compounds, Licensed Products, and Licensed Know-How;
and such Licensed Patents are valid, in full force, and enforceable.
 
(d) there are, as of the Effective Date, and during the Term shall be, no
outstanding liens, encumbrances, agreements or understandings of any kind,
requirements of charges, fees, rights, conditions or restrictions of any kind,
either written, oral or implied, regarding the Licensed Patents or Licensed
Products to which OXIS or its Affiliates is a party or which are binding upon
OXIS its Affiliates which are inconsistent or in conflict with any provision of
this Agreement;
 
(e) as of the Effective Date, OXIS or its Affiliates has received no written
claim or accusation that the practice of the Licensed Products or the
manufacture, use or sale of Licensed Products infringes or may infringe any
Third Party patent;
 
(f) as of the Effective Date, OXIS or its Affiliates has not received a written
notification of any interference proceeding, opposition proceeding, cancellation
proceeding or other protest proceeding relating to the Licensed Patents being
instituted against OXIS or its Affiliates; 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.

17

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

 
(g) no obligations of any kind currently exist on the part of OXIS with respect
to the Prior Exclusive License Agreement, and OXIS has materially complied with
all terms and conditions of the Prior Exclusive License Agreement (except in the
case where any such obligation is already qualified by materiality in which case
this representation shall be deemed to apply without further qualification).
 
7.2 Mutual Representations and Warranties. Each party hereby represents and
warrants to the other party that:
 
(a) it is duly authorized to execute and deliver this Agreement and to perform
its obligations hereunder;
 
(b) this Agreement is a legal and valid obligation binding upon it and
enforceable in accordance with its terms; and
 
(c) 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.
 
7.3 Representations and Warranties of Alteon. Alteon represents and warrants
that:
 
(a) the merger and related transactions with relating to Alteon have been
completed as contemplated by the original Agreement of Merger (the “Merger”);
 
(b) Alteon is the successor-in-interest to HaptoGuard, Inc. with respect to the
Prior Exclusive License Agreement and the transactions contemplated therein;
 
(c) no obligations of any kind currently exist on the part of Alteon with
respect to the Prior Exclusive License Agreement, and Alteon has materially
complied with all terms and conditions of the Prior Exclusive License Agreement
(except in the case where any such obligation is already qualified by
materiality in which case this representation shall be deemed to apply without
further qualification);
 
(d) with respect to the Warrant (as defined in the Prior Exclusive License
Agreement), such Warrant has been duly and validly exercised by means of a
deemed “cashless” exercise in connection with the Merger and 551,800 shares of
Alteon have been issued to OXIS in connection with such exercise; and
 
(e) Alteon has not sublicensed or entered into any agreement, commitment or
understanding to sublicense (or engage in any other similar transaction) any of
Licensed Patents, Licensed Know-How, Licensed Processes or Licensed Product
either under this Agreement or the Prior Exclusive License Agreement.
 
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.
 
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.

18

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

 
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, Alteon shall continue to
have a license on the terms described in Section 2.1, except that such license
shall be fully paid, perpetual, irrevocable and nonexclusive.
 
8.2 Termination by Alteon. Alteon shall have the right to terminate this
Agreement for any reason or for no reason upon one hundred and eighty (180)
days’ written notice to OXIS. Any payment under Section 3 made after the date
Alteon notifies OXIS 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 OXIS. In the event that Alteon fails to timely make any
payment and such failure continues for thirty (30) days following Notice by
OXIS, OXIS shall have the right at any time to terminate this Agreement
forthwith upon written notice to Alteon.  
 
8.4 Termination for Cause. Each party shall have the right to terminate this
Agreement upon thirty (30) days’ written notice to the other upon the occurrence
of any of the following: 
 
(a) 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 ninety
(90) days; or
 
(b) Upon or after the breach of any material provision of this Agreement by the
other party, including, with respect to Alteon, its Affiliates, (other than as
provided in Section 8.3) if the breaching party has not cured such breach within
the thirty (30) day period following written notice of termination by the
non-breaching party.
 
8.5 Effect of Termination; Surviving Obligations. 
 
(a) Upon termination of this Agreement by OXIS 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 that if OXIS terminates this
Agreement only as to a particular country or countries under Section 8.4 (b)
then the rights and obligations of the parties under this Agreement shall
terminate only as to such country or countries), except as set forth in this
Section 8.5.
 
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.

19

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

 
(b) Upon termination of this Agreement by Alteon pursuant to Section 8.2 (where
Alteon has not committed a breach of this Agreement permitting termination by
OXIS under Section 8.3 or 8.4) all rights to the Licensed Patents, Licensed
Compounds, Licensed Know-How, Licensed Process, and Licensed Product and the
Licensed Compounds shall revert to OXIS.
 
(c) 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 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 therefor by the other party. 
 
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; DISPUTE RESOLUTION

 
9.1 Indemnification. 
 
(a) Alteon hereby agrees to save, defend, indemnify and hold harmless OXIS, its
directors, officers, employees, agents and Affiliates (and its directors,
officers, employees and agents) (each, a “OXIS Indemnitee”) from and against any
and all losses, damages, liabilities, expenses and costs, including reasonable
legal expenses and attorneys’ fees (“Losses”), to which a OXIS 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
Alteon of the license granted under Section 2.1, or (b) the development,
manufacture, handling, storage, sale or other disposition of any Licensed
Product by Alteon and its Affiliates and Sublicensees, except to the extent such
Losses result from the willful misconduct of any OXIS Indemnitee.
 
(b) OXIS hereby agrees to save, defend, indemnify and hold harmless Alteon, 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 “Alteon Indemnitee”) from and against
any and all Losses to which a Alteon 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 the material breach by OXIS of any of its
representations, warranties or obligations hereunder, except to the extent such
Losses result from the willful misconduct of any Alteon Indemnitee.
 
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.

20

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

 
(c) In the event a party seeks indemnification under Section 9 9.1(a) or 9 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 shall cooperate as requested (at the expense of the
Indemnifying Party) in the defense of the claim.
 
9.2 Limitation of Liability. EXCEPT FOR LIABILITY FOR BREACH OF CONFIDENTIALITY
OR FOR INFRINGEMENT OR MISAPPROPRIATION, NEITHER PARTY SHALL BE ENTITLED TO
RECOVER FROM THE OTHER PARTY ANY INDIRECT, SPECIAL, INCIDENTIAL, 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. IN NO EVENT SHALL ALTEON’S LIABILITY HEREIN SHALL
EXCEED IN THE AGGREGATE THE AMOUNTS ACTUALLY PAID OR PAYABLE TO OXIS UNDER THS
AGREEMENT.
 
9.3 Insurance. From and after such time as Alteon or any of its Sublicensees
first commences human clinical trials of Licensed Product, Alteon shall, or
shall cause each such Sublicensee to, at its own expense, maintain product
liability insurance in an amount consistent with industry standards during the
Term. Such liability insurance shall name OXIS as a named co-insured, and Alteon
shall provide to OXIS regularly, and no less frequently than annually.
Certificates evidencing OXIS coverage as a named co-insured and specifying the
limits of such coverage.
 
9.4 Dispute Resolution. All disputes arising out of or related to this
Agreement, including disputes that may involve the parent companies,
subsidiaries and Affiliates of any party performing hereunder (“Disputes”),
shall be resolved in accordance with this Section 9 9.4.
 
(a) Any Dispute shall be settled by binding arbitration by one arbitrator
selected by the parties, or if they cannot agree, each party shall select an
arbitrator and the two arbitrators shall select a third arbitrator. The decision
of the arbitrator(s) shall be final and binding on the parties. The arbitration
shall be conducted in New York, New York. The arbitral tribunal shall exert its
best efforts to conduct the proceedings so as to issue an award within nine (9)
months of the appointment of the arbitrator(s).
 
(b) 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.
 
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.

21

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

 
(c) The arbitral tribunal may grant any relief appropriate under the applicable
law, but may not include any penalty or element of punitive or exemplary
damages. The arbitral tribunal may award the costs and expenses of the
arbitration. Any party may seek emergency, interim or provisional relief prior
to the appointment of an arbitrator from any court of competent jurisdiction,
without prejudice to the agreement to arbitrate herein contained. After
appointment of an arbitrator, any request for such relief shall be addressed to
the arbitrator, who shall have the power to enter an interim award granting any
emergency, interim or provisional relief to which a party may be entitled under
applicable law.
 
(d) Any award of money shall be in U.S. dollars. 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.
 
(e) Any duty to arbitrate under this Agreement shall remain in effect and
enforceable after termination of this Agreement for any reason.
 
(f) Each party has the right before or during the arbitration to seek and obtain
from the appropriate court provisional remedies, such as attachment, preliminary
injunction or replevin, 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 the State of New York, 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, provided, however, the
parties hereby acknowledge the following with respect to the Prior Exclusive
License Agreement: (a) all fees, royalties or other payments contemplated by the
Prior Exclusive License Agreement have been either paid in accordance with the
Prior Exclusive License Agreement; (b) except with respect to clause (c) below,
to the extent that any non-payment right, obligation or liability under the
Prior Exclusive License Agreement exists and is continuing after giving effect
to this Agreement, the parties agree to waive such obligations with respect to
each party hereto and also not to assert such rights against the other party
hereto; (c) to the extent that any existing right, obligations or liabilities
which may be subject to Section 9 of the Prior Exclusive License Agreement, the
parties hereto agree that such rights shall continue and survive as contemplated
by this Agreement. This Agreement supersedes all prior and contemporaneous
agreements and communications, whether oral, written or otherwise, concerning
any and all matters contained herein. 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.
 
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.

22

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

 
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 provided the successor’s financial strength is at
least as great as the assignor’s., 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 Compound or
Licensed Product, 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.
 
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.
 
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.
 
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.

23

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

 
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 Alteon, notices must be addressed to:
 
Alteon, Inc.
221 W. Grand Avenue
Suite 200
Montvale, NJ  07645
Office: (201) 818-5860
Fax:    (201) 934-0090

Attention: Chief Executive Officer

With copies to:
Pearl Cohen Zedek Latzer , LLP
1500 Broadway, 12th Floor
New York, New York 10036
Attention: Mark S. Cohen, Esq
Telephone: +646 878 0804
Facsimile: + 646 878 0801
 
If to OXIS, notices must be addressed to:
 
OXIS International, Inc.
323 Vintage Park Drive, Suite B
Foster City, CA 94404
Phone: 650-212-2568
Attention: Chief Executive Officer

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.
 
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

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

 
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.
 
[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.

25

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

IN WITNESS WHEREOF, the parties hereto have duly executed this AMENDED AD
RESTATED EXCLUSIVE LICENSE AGREEMENT, including the Exhibit attached hereto and
incorporated herein by reference.

          OXIS INTERNATIONAL.    ALTEON, INC.            By:  /s/ Marvin S.
Hausman, M.D.   By: /s/ Noah Berkowitz, M.D., Ph.D.
Name:

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

  Marvin S. Hausman, M.D.   Name:

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

 Noah Berkowitz, M.D., Ph.D. Title:    CEO   Title:  President and CEO

              By:       
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 A
 
[****************************]
 
[***********]
 
[****]
[*******]
[*******]
[*******]
[*******].
[*******]
[*******]
[********************************************************************
********************************************************************
***************
[*******]
[****]
   
[**]
[*******]
[*******]
[********]
[********]
[**********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[********]
       
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
 
[**********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
         
[**]
[*******]
[*******]
[********]
[********]
[********]
     
[**]
[*******]
[*******]
[********]
[*******]
[********]
     
[**]
[*******]
[*******]
[********]
[******]
[**********]
     
[**]
[*******]
[*******]
[********]
[******]
[******]
     
[**]
[*******]
[***********]
 
[**********]
 
[*******]
[********************************************************************
********************************************************
[*******]
 
[***]
   
[**]
[*******]
[*******]
[*******]
[*******]
[*******]
     
[**]
[*******]
[*******]
[*******]
         
[**]
[*******]
[*********]
[*******]
[**********]
[*******]
     
[**]
[*******]
[*******]
[*********]
[*******]
[**********]
     
[**]
[*******]
[*****]
[******]
         
[**]
[*******]
[*******]
[*******]
[*******]
[********]
     
[**]
[*******]
[*******]
[*********]
[*******]
[*********]
                                   
[*******]
[*******************************************************************************] 
[*******]
 
[*****]
   
[**]
[*******]
[*******]
[**********]
[*******]
[******]1
     
[**]
[*******]
[*******]
[*******]
         
[**]
[*******]
[*********]
[**********]
         
[**]
[*******]
[*******]
[*********]
[*******]
[*******]
     
[**]
[*******]
[*******]
[*******]
         
[**]
[*******]
[*******]
[*********]
[*******]
[*******]
     
[**]
[*******]
[**************]
[*******]
[**********]
[*****]
                 

 
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.

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