----

----

----

| SIXTH RESEARCH FUNDING AND INTELLECTUAL PROPERTY |
|--------------------------------------------------|

| ASSIGNMENT AGREEMENT |
|----------------------|

| THE FLOREY INSTITUTE OF NEUROSCIENCE AND MENTAL HEALTH |
|--------------------------------------------------------|

| (ABN 92 124 762 027) of 30 Royal Parade, Parkville Victoria 3010 (“Florey”) |
|-----------------------------------------------------------------------------------------|

| AND |
|-----|

| PRANA BIOTECHNOLOGY LTD (ABN 37 080 699 065) having its principal office at |
|--------------------------------------------------------------------------------------------|

| Level 2, 369 Royal Parade, Parkville, Victoria, 3025 ("Prana") |
|----------------------------------------------------------------|

| INTRODUCTION |
|--------------|

| NOW IT IS AGREED: |
|-------------------|

| 1. | DEFINITIONS AND INTERPRETATION |
|----|--------------------------------|

| 1.1. | Definitions |
|------|-------------|

----

|   | (a)  | information which is already in the public domain; |
|--------|-----------|----------------------------------------------------|

|   | (b) | information which hereafter becomes part of the public domain otherwise than as a result of an unauthorised disclosure by the recipient Party or its representatives; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | information which is or becomes available to the recipient Party from a third party lawfully in possession of such information and who has the lawful power to disclose such information to the recipient Party on a non-confidential basis; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | information which is rightfully known by the recipient Party (as shown by its written record) prior to the date of disclosure to it hereunder; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | information which is independently developed by an employee of the recipient Party who has no knowledge of the disclosure under this Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | where the Technology is a product, to make, hire, sell or otherwise dispose of that product, offer to make, sell, hire or otherwise dispose of it, use or import it, or keep it for the purpose of doing any of those things; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | where the Technology is know-how, a method or process, to use that know-how, method or process or do any act mentioned in paragraph (a) in respect of a product resulting from such use. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | from 7 May 1999 to 31 December, 2013 which is identified in Schedules 1 – 5; |
|--------|-----|------------------------------------------------------------------------------------|

|   | (b) | after 1 January, 2014 by the Parties which is identified in Schedule 6 or which is otherwise agreed from time to time by the Parties and identified in  further schedule(s) to this Agreement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Research Funding and Intellectual Property Assignment Agreement dated 1 December, 2000 (as amended by an Amending Agreement made on or about 5 August, 2002, a letter from Prana to the University dated 7 March, 2003 , the Third Research Funding and Intellectual Property Assignment Agreement referred to in paragraph (c) below and the Fifth Research Funding and Intellectual Property Assignment Agreement referred to in paragraph (e) below) in relation to Research conducted by the University and MHRI (as a subcontractor) for Prana in the period from 7 May, 1999 to 1 December, 2003; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | undated Second Research Funding and Intellectual Property Assignment Agreement made on or about 1 October, 2004 in relation to Research conducted by the University and MHRI (as a subcontractor) for Prana in the period from 2 December, 2003 to 1 December, 2006; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Third Research Funding and Intellectual Property Agreement dated 29 June, 2007 (as amended by a letter agreement between the University and Prana made 2 May, 2008 and a letter agreement between the University and Prana dated 23 January, 2009) in relation to Research conducted by the University and MHRI (as a subcontractor) for Prana in the period from 2 December, 2006 to 1 December, 2009; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | undated Fourth Research Funding and Intellectual Property Assignment Agreement in relation to Research conducted by the University and MHRI (as a subcontractor) for Prana in the period from  2 December, 2009 to 1 December, 2012; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | undated Fifth Research Funding and Intellectual Property Assignment Agreement made on or about 2 August, 2013 in relation to Research conducted by the University and MHRI (as subcontractor) and/or Florey for Prana in the period from 1 December, 2012 to 31 December, 2013 (as amended in or about June 2013 to increase the budget for the Research from $512,917 to $545.000). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | In this Agreement, except where the context indicates to the contrary: |
|-----|------------------------------------------------------------------------|

|   | (a) | the expression "person" includes an individual, a body corporate, a joint venture, a trust, an agency or other body; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (b) | words importing the singular will include the plural (and vice versa) and words denoting a given gender will include all other genders; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | headings  are  for convenience  only  and  will  not  affect  interpretation  of  this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)  | all monetary amounts will be deemed to be in Australian currency; and |
|--------|-----------|-----------------------------------------------------------------------|

----

|   | (e) | references to any legislation or to any provision of any legislation will include any modification or re-enactment of such legislation or any legislative provision substituted for and all legislation and statutory instruments issued under such legislation. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | TERM |
|----|------|

| 2.1 | This Agreement will begin on the Effective Date and will continue for the period during which any Intellectual Property Rights subsist in the Technology in any jurisdiction, subject to earlier termination in accordance with this Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The Research began on 7 May 1999 and will continue for as long as the Parties agree to Research being conducted pursuant to this Agreement, it being agreed that: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | each body of agreed Research and the funding, timing and relevant operational  matters relevant thereto will be recorded in a Schedule which shall form part of this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | such Research may be terminated by Prana in accordance with clause 19.3. |
|--------|-----|--------------------------------------------------------------------------|

| 3. | FUNDS |
|----|-------|

| 3.1 | Prana will pay Florey the Funds as specified in each Schedule.  The Parties acknowledge and agree that there are no outstanding Funds payable by Prana in relation to the Research referred to in Schedules 1 – 5. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Florey will apply the Funds solely to the carrying out of the Research in accordance with the Research Plans to be developed by the Management Committee. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Without limiting the operation of clause 3.2, Funds can only be applied towards Research carried out at Florey or by Florey affiliated staff members. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | The Parties will ensure that: |
|-----|-------------------------------|

|   | (a)  | proper accounting standards and controls are exercised in respect of the Funds; and |
|--------|-----------|-------------------------------------------------------------------------------------|

|   | (b) | income and expenditure in relation to the Research are recorded separately from other transactions of the Parties. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

| 3.5 | Florey will establish an Account for the purposes of the Research. |
|-----|--------------------------------------------------------------------|

| 3.6 | Florey will ensure that: |
|-----|--------------------------|

|   | (a) | any moneys forming part of the Funds are deposited in the Account; |
|--------|-----|--------------------------------------------------------------------|

|   | (b) | all drawings on the Account during the Term are applied solely to the carrying out of the Research and not for any other purpose; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any interest on the balance of the Account is credited to the Account. |
|--------|-----|------------------------------------------------------------------------|

| 4. | MANAGEMENT  AND  ADMINISTRATION |
|----|-----------------------------------------------------|

----

| 5. | MANAGEMENT   COMMITTEE |
|----|---------------------------------------|

| 5.1 | The  Parties  must  establish the Management Committee, which will be comprised of: |
|-----|----------------------------------------------------------------------------------------------------|

|   | (a) | Representatives nominated by Florey; and |
|--------|-----|------------------------------------------|

|   | (b) | Representatives nominated by Prana, |
|--------|-----|-------------------------------------|

| 5.2 | The Project Manager must be nominated by his or her employing Party to be one of that Party's Representatives on the Management Committee. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Each member of the Management Committee (including the Project Manager) may delegate his/her powers and responsibilities as a member of the Management Committee to another person provided they provide the other Party with reasonable written prior notice. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | Meetings of the Management Committee will be chaired by the Project Manager (or the Project Manager's delegate). |
|-----|------------------------------------------------------------------------------------------------------------------|

| 5.5 | The quorum for a meeting of the Management  Committee  is  all  four  (4) members  (or their delegates) and the quorum must be present at  all  times  during  the  meeting.  If a quorum is not present at a meeting of the Management  Committee  within  thirty  (30) minutes after the scheduled time for the meeting,  the members of the Management Committee who are present at the meeting will agree  upon  a  date,  time  and  place  to which  the meeting  is adjourned. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | All decisions of the Management Committee must be resolved by unanimous agreement of all members (or their delegates) of the Management Committee. All members (or their delegates) of the Management Committee will have equal voting powers at meetings of the Management Committee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | Decisions of the Management Committee on any matter shall be by way of resolution and shall be recorded in minutes of Management Committee meetings or by correspondence signed by all members (or their delegates) to be kept by the Project Manager. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | Each Party will bear its own costs in respect of its participation on the Management Committee. |
|-----|-------------------------------------------------------------------------------------------------|

| 6. | MANAGEMENT COMMITTEE RESPONSIBILITIES |
|----|---------------------------------------|

| 6.1 | The Management Committee's responsibilities will be as follows: |
|-----|-----------------------------------------------------------------|

|   | (a) | to meet and determine the Research Plan for the following year; |
|--------|-----|-----------------------------------------------------------------|

|   | (b) | to monitor the progress of Research undertaken by Florey; |
|--------|-----|-----------------------------------------------------------|

|   | (c) | to determine the Budget for each year in accordance with this Agreement; |
|--------|-----|--------------------------------------------------------------------------|

|   | (d) | to make and implement management decisions relating to the conduct of the Research, provided that such decisions are consistent with this Agreement and the Research Plan; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | to discuss the Interim Reports and progress of the Research in general; and |
|--------|-----|-----------------------------------------------------------------------------|

|   | (f) | to define and agree upon proposed  modifications of  or  extensions  to  the Research, provided however that the Research will only be amended if each Party has approved such amendment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | PROJECT  MANAGER |
|----|----------------------------|

| 7.1 | The Parties hereby appoint as Project Manager the person identified as such in the then current Schedule. |
|-----|-----------------------------------------------------------------------------------------------------------|

----

| 7.2 | The Project Manager will: |
|-----|---------------------------|

|   | (a) | be responsible for the day to day management of the Research; |
|--------|-----|---------------------------------------------------------------|

|   | (b) | ensure that the Research is carried out in accordance with the Research Plan and within the Budget; and |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (c) | report to the Management Committee as and when required by this Agreement and at other times as requested by the Management Committee. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | The Project Manager may be replaced at any time by the mutual agreement of the Parties. |
|-----|-----------------------------------------------------------------------------------------|

| 8. | RESEARCH PLAN FOR EACH YEAR |
|----|-----------------------------|

| 8.1 | By each anniversary of the Effective Date prior to the relevant year, the Management Committee will draft and finalise for that year the Research Plan and Budget for that year, including: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a list of all Research Projects; and |
|--------|-----|--------------------------------------|

|   | (b) | details of each Research Project to be conducted by Florey during the relevant year, including: |
|--------|-----|-------------------------------------------------------------------------------------------------|

| 9. | CONDUCT OF RESEARCH |
|----|---------------------|

| 9.1 | Florey will ensure that the Research is carried out in a diligent and competent fashion, consistent with generally accepted professional, scientific and ethical standards of conduct. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | The Research Plan may not be varied except with the unanimous agreement in writing of all the Parties. |
|-----|--------------------------------------------------------------------------------------------------------|

| 10. | REPORTING |
|-----|-----------|

| 10.1 | The Project Manager will submit to the Management Committee within fourteen (14) days of the end of each quarter of each calendar year during the Term of this Agreement an Interim Report detailing Florey's progress against the milestones for each Research Project specified in the Research Plan for that year. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Each Interim Report will summarise the work completed on the Research Plan up to the date of such Interim Report, the work anticipated over the next reporting period, and will identify problems which may cause or are causing a deviation from the Research Plan and the steps, if any, being taken or proposed to be taken to alleviate such problems. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | Within sixty (60) days of the completion of the Research Plan, Florey will provide the Management Committee with the Final Report describing the results of the Research Plan, including activities undertaken, difficulties encountered and achievements made (including any Project Technology). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11 | RIGHTS TO PROJECT TECHNOLOGY |
|----|------------------------------|

| 11.1 | Subject to this clause 11, all rights (including Intellectual Property Rights) to the University Background Technology will remain vested solely in the University. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Subject to this clause 11, all rights (including Intellectual Property Rights) to Prana Background Technology will remain vested solely in Prana. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Prana hereby grants Florey a royalty free, non-exclusive right to use Prana Background Technology and Project Technology to the extent that it is necessary for the carrying out of the Research and for internal teaching and research. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | The Parties agree that ownership of the Project Technology and all Intellectual Property Rights subsisting therein will vest exclusively in Prana. Prana will decide which of the Project Technology will be: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | retained as Confidential Information; or |
|--------|-----|------------------------------------------|

|   | (b) | included in any patent application or other application for registered Intellectual Property Rights protection. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

| 11.5 | Upon determination by Prana that the Project Technology will be included in any patent application or other  application  for  registered  Intellectual  Property  Rights  protection, such application will be made by Prana in its  name and Florey will render all assistance that Prana may reasonably  require in the prosecution  of that  application. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | Applications for registration pursuant to clause 11.5 and the maintenance of subsequent registrations (as the case may be) will be the responsibility of Prana. Registration Costs will be met by Prana. If Prana fails to meet Registration Costs in respect of any application, the rights granted to it under this clause 11 will lapse and Florey will at its option be entitled to continue to meet such Registration Costs, in which case all Intellectual Property Rights in the subject matter of those applications and subsequent registrations (as the case may be) are assigned (by way of assignment of future Intellectual Property Rights) to Florey, and Prana will have no rights in respect of the same. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7 | Florey undertakes to notify the terms of this Agreement as they relate to ownership of, and rights to, the Project Technology and the Intellectual Property Rights subsisting therein, to all employees and subcontractors (if any) conducting Research under this Agreement. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8 | Prana grants to Florey a non-exclusive royalty free, worldwide, perpetual and irrevocable licence to Exploit the Technology for the duration of the period in which Intellectual Property Rights subsist in the Technology, either itself or with other academic institutions provided only that such Exploitation is restricted to Florey's educational purposes in delivering education programs, including, without limitation, Florey's research, teaching and scholastic endeavours. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12 | ROYALTIES |
|----|-----------|

| 12.1 | Prana shall pay to Florey the following amounts: |
|------|--------------------------------------------------|

|   | (a) | royalties calculated at 1.5% of the Net Invoice Price of all Products sold by or on behalf of Prana or any agent, contractor or Affiliate of Prana; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | the lesser of: |
|--------|-----|----------------|

|   |  (i) | 1.5% (subject to any reduction under clause 12.3) of the Net Invoice Price of Products sold by or on behalf of; or |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------|

|   |  (ii) | 10% of the gross revenues (including royalties and any other payments) relating to Exploitation of Project Technology receivable from, |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | The amounts payable in clause 12.1(a) and (b) must be paid each six months, within two months following the end of each December and June. All payments must be accompanied by a statement setting out the manner in which the payment has been calculated which includes for Prana and each licensee or assignee of Prana: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the subject matter to which the payment relates; |
|--------|-----|--------------------------------------------------|

|   | (b) | the number of Products sold, the gross revenues received or the nature of the rights granted in  relation to the Technology and the identity of the licensee and/or assignee as the case may be; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the gross amounts payable in relation to the sale or sales in (b) by the purchaser, licensee, sublicensee, and/or assignee; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the nature and amount of deductions made from the gross amount in (c); and |
|--------|-----|----------------------------------------------------------------------------|

|   | (e) | such other information as Florey may reasonably require from time to time. |
|--------|-----|----------------------------------------------------------------------------|

| 12.3 | Where the exploitation of any Product which attracts a payment pursuant to the preceding provisions of this clause 12, (other than clause 12.1(b)(ii)) also attracts a genuine good faith obligation to pay a royalty or percentage of such payment to any third party (which is not an agent, contractor or Affiliate of Prana), then the percentage of the payment required to be paid by Prana to Florey will be varied in accordance with the following provision. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.4 | Where Exploitation of the Technology (including Exploitation of a Product) is not undertaken at arm's length, the price or value of the Exploitation (including the price of a Product) for the purposes of calculation of payments under clause 12.1 will be deemed to be the amount which would have been payable had the transaction been negotiated in good faith between the parties at arm's length. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | Prana must keep true and accurate records of all matters connected with the Exploitation of the Technology and must also keep proper books of account relating to the calculation of payments to Florey under this Agreement. On Florey's written request, Prana must produce these records and books of account, certified as correct by Prana's auditors, and must permit those records and books to be examined by or on behalf of Florey. Florey may conduct such an examination up to once each calendar year and will do so at its own cost, unless the examination identifies a deviation equal to or greater than 10% in the amounts identified as payable to Florey, in which case the costs are to be paid by Prana. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.6 | Prana must at all times use its best endeavours to Exploit the Technology in such a way that maximises the payments to be made to Florey pursuant to this Agreement. Prana must provide to Florey such information as Florey may reasonably request concerning Prana's plans for, and efforts in, exploiting the Assigned IP and Project Technology. Prana must not engage in any activity that conflicts with its obligation under this clause. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7 | In determining whether Prana has used its best endeavours regard will be had to the achievements or failure of Prana to meet the Minimum Performance Levels. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.8 | If Prana's payments under clause 12.I do not meet or exceed the Minimum Performance Levels, Prana must pay to Florey the difference between the Minimum Performance Levels and the amounts actually paid. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | CONFIDENTIALITY |
|----|-----------------|

| 13.1 | Each Party will treat the terms of this Agreement and all Confidential Information of the other Party as confidential and will not, without the prior written consent of the other Party, disclose or permit the same to be disclosed to any third person. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | It will be the responsibility of a Party to ensure that its employees, officers and agents comply with the obligations of confidentiality imposed upon it by this clause 13 as if personally bound by such obligations. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Each Party's obligations under this clause 13 will survive termination of this Agreement and endure until the Confidential Information disclosed to it lawfully becomes part of the public domain. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | PUBLICATIONS  AND MARKINGS |
|----|--------------------------------------|

| 14.1 | Prana must not use the name or logo of Florey without having obtained Florey's prior written consent and the use of Florey's name or logo will be subject to any conditions attaching to such consent. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Prana must not make or permit to be made any inaccurate or misleading statement concerning Florey. |
|------|----------------------------------------------------------------------------------------------------|

| 14.3 | Subject to paragraph (b), Florey may not publish results of the Research, without the consent of Prana. If Florey requests that Prana consent to a publication, Prana may not withhold that consent unless in its reasonable view the publication includes Confidential Information of Prana and the publication would adversely affect protection or Exploitation of the Project Technology. If Florey makes such a request and receives no response from Prana within 90 days, Prana will be deemed to have consented to the proposed publication. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | Florey may make a publication which is constituted by the presentation of a thesis by a Florey student, provided that appropriate steps are taken to ensure that confidentiality of information contained in the thesis is maintained, including the examiner signing an appropriate confidentiality undertaking and the placing of an appropriate access limitation on the thesis where it is required to be placed in a Florey library. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | INSURANCE |
|-----|-----------|

| 15.1 | Prana will: |
|------|-------------|

|   | (a) | Exploit the Technology  at its own risk; and |
|--------|-----|--------------------------------------------------------|

|   | (b) | maintain or cause to be maintained adequate professional indemnity, product liability and third party liability insurance in respect of Exploitation of the Technology. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | Prana will, upon the request of Florey, produce evidence of the currency of the insurance policies referred to in this clause 15. Failure by Prana to produce such evidence of currency within thirty (30) days from the date a notice of request is served upon Prana will be treated as breach by Prana of this clause 15 and the relevant provisions of clause 19 will apply. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | Prana undertakes at all times to comply with the terms of its insurance policies the subject of clause 15.1. |
|------|--------------------------------------------------------------------------------------------------------------|

| 15.4 | Prana's obligations under this clause 15 will survive expiration or earlier termination of this Agreement. |
|------|------------------------------------------------------------------------------------------------------------|

| 16. | ACKNOWLEDGEMENT BY PRANA |
|-----|--------------------------|

| 16.1 | Prana hereby agrees and acknowledges that: |
|------|--------------------------------------------|

|   | (a) | Florey has not made any and hereby excludes all warranties, terms, conditions or undertakings, whether express or implied, written or oral, statutory or otherwise including any implied warranty of merchantability or of fitness for a particular purpose in respect of the Research or the Technology. To the full extent permitted by the laws of the Commonwealth of Australia or of any State or Territory of Australia having jurisdiction, any conditions or warranties imposed by such legislation are hereby excluded. In so far as liability under or pursuant to such legislation may not be excluded, such liability is limited, at the exclusive option of Florey, to: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | without limiting the generality of clause 16.1(a) it is agreed that, to the full extent permitted by the laws of the Commonwealth of Australia and any State or Territory of Australia having jurisdiction, Florey will not be liable for any special, indirect or consequential damages arising under or pursuant to this Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Without limiting the generality of clause 16.1, Prana hereby further acknowledges and agrees that: |
|------|----------------------------------------------------------------------------------------------------|

|   | (a) | Prana will be responsible for obtaining any approvals, authorisations and accreditations necessary or desirable to enable it to use or Exploit the Technology; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | while Florey may discuss with Prana requirements for obtaining any approvals, authorisations and accreditations necessary or desirable to  enable Prana to use or Exploit the Technology, Florey has not made and does not by entering into this Agreement make any representations or give any warranties regarding the suitability of the Technology for such purposes; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if any Commonwealth or State taxes by duties (including stamp duty) are payable in respect of this Agreement, the payment of same will be the responsibility of Prana; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Florey has not made and does not by entering into this Agreement make any representations or give any warranties that this Agreement or the Research is structured so as to entitle Prana to obtain any form of taxation relief or concession under the Income Tax Assessment Act 1936 (Cth), (whether pursuant to section 73B of that Act or otherwise) or under any other Commonwealth or State legislation. Prana agrees that it will be responsible for making its own inquiries with respect to these matters; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Florey has not made and does not by entering into this Agreement make any representation or warranty, express or implied, that the Technology do not infringe any third party's Intellectual Property Rights. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | This clause l6 will survive expiration or, where relevant, earlier termination of this Agreement. |
|------|---------------------------------------------------------------------------------------------------|

| 17. | INDEMNITIES AND WARRANTIES |
|-----|----------------------------|

| 17.1 | Prana hereby releases and indemnifies and will continue to release and indemnify Florey, its officers, employees and agents from and against all actions, claims, proceedings or demands (including those brought by third parties) which may be brought against it or them, whether on their own or jointly with Prana and whether at common law, in equity or pursuant to statute or otherwise, in respect of any loss, death, injury, illness or damage (whether personal or property, and whether direct or consequential, including consequential financial loss) and any infringement of copyright, patents, trademarks, designs or other Intellectual  Property  Rights, howsoever  arising out of Prana's exercise of its rights under this Agreement or Exploitation of any Project Technology and from and against all damages, costs and expenses incurred in defending or settling any such claim, proceeding or demand; except to the extent that any such liability may arise from the negligent or fraudulent acts or omissions of Florey. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2 | Prana's obligation to indemnify Florey and its officers, employees and agents set out in clause 17.1 is a continuing obligation separate and independent of Prana's other obligations and will survive expiration or where relevant, earlier termination of this Agreement. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | INFRINGEMENT  AND THIRD PARTY PROCEEDINGS |
|-----|-----------------------------------------------------|

| 18.1 | Each Party will give the other notice of: |
|------|-------------------------------------------|

|   | (a) | any claim or allegation that the exercise of the rights under this Agreement constitute an infringement of the rights of any third party; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any third party's infringement or threatened infringement of any of the Parties' Intellectual Property; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

| 18.2 | If Prana decides to commence legal proceedings, Florey will, at Prana's cost, furnish to Prana all reasonably necessary assistance in relation to those proceedings. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | The terms and conditions of this clause 18 will survive expiration or earlier termination of this Agreement. |
|------|--------------------------------------------------------------------------------------------------------------|

| 19. | TERMINATION |
|-----|-------------|

| 19.1 | Either Party may terminate this Agreement or the Research and the rights and obligations of the Parties relating to conduct of the Research by providing the other Party with written notice on the happening of any of the following events: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if the other Party commits or allows to be committed a breach of any of the material obligations under this Agreement and on its part to be performed or observed, and does not within thirty (30) days of receipt of notice in writing from the first Party make good the breach (where such breach is capable of remedy); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | if the other Party is the subject of winding up or liquidation proceedings, whether voluntary or compulsory, otherwise than for the purpose of and followed by, a reconstruction, amalgamation or reorganisation; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if the other Party has become insolvent, bankrupt or is subject to the appointment of a mortgagee, a receiver or manager or an inspector to investigate its affairs, enters into any arrangement or composition with its creditors generally, or is unable to pay its debts as and when they become due; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | if execution is levied upon all or any part of the assets of the other Party, provided that no breach will take place hereunder if the execution is contested in good faith or if within seven (7) days after it is levied payment is made in full to the judgment  creditor  m  question  of  all  amounts  owing  to  such judgment creditor; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Termination of this Agreement: |
|------|--------------------------------|

|   | (a) | will be without prejudice to the rights of the terminating Party to sue for and recover any fees, monies, or payments then due and to the rights of the terminating Party in respect of any previous breach of any of the provisions of this Agreement; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | will not  relieve either Party of their respective obligations of confidentiality, insurance and indemnity contained herein; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | by Florey does not relieve Prana of its payment obligations under clause 12, which shall continue for the period during which any Intellectual Property Rights subsist in the Technology in any jurisdiction. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3 | Prana may terminate this Agreement and/or any Research without cause by giving one month written notice to Florey and such notice shall be effective one month from the date of receipt of the written notice by Florey. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.4 | This clause 19 will survive expiration or earlier termination of this Agreement. |
|------|----------------------------------------------------------------------------------|

| 20. | RESOLUTION OF DISPUTES |
|-----|------------------------|

----

| 21. | NOTICES |
|-----|---------|

| 21.1 | Any notice, demand or other communication required to be given or made in writing tinder this Agreement will be deemed duly given or made if delivered or sent by prepaid post or facsimile transmission as follows: |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in the case of Florey: |
|--------|-----|------------------------|

| Attention: | Henry De Aizpurua                                  |
|------------|----------------------------------------------------|
| Address:   | Florey of 30 Royal Parade, Parkville Victoria 3010 |
| Facsimile: | (613) 90353107                                     |

|   | (b) | in the case of Prana: |
|--------|-----|-----------------------|

| Attention: | Geoffrey Kempler                      |
|------------|---------------------------------------|
| Address:   | Level 2, 369 Royal Parade, Parkville, |
|       | Victoria 3025 Australia               |
| Facsimile: | (613) 9348 0377                       |

| 21.2 | Either Party may change its nominated contact person, address or facsimile transmission number for the purposes of this Agreement by giving notice of such change to the other Party within fourteen (14) days of the change. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | Any notice or other communication will be deemed to have been received by the Party to which it was sent: |
|------|-----------------------------------------------------------------------------------------------------------|

|   | (a) | in the case of hand delivery, upon the date of such delivery; |
|--------|-----|---------------------------------------------------------------|

|   | (b) | in the case of prepaid post within Australia, on the third day next following the date of dispatch; or |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (c) | in the case of facsimile transmission, at the time of transmission, provided that, following the transmission, the sender receives a transmission confirmation report unless in any such case it would be deemed to have been received on a day which is not a business day, or after 5 p.m. on such a business day, in which event it will be deemed to have been received on the next such business day. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22. | ANCILLARY  PROVISIONS |
|-----|---------------------------------|

| 22.1 | Governing Law |
|------|---------------|

| 22.2 | Severability |
|------|--------------|

| 22.3 | Waiver |
|------|--------|

| 22.4 | Amendment,  Assignment and Subcontracting |
|------|-----------------------------------------------------|

----

| 22.5 | Entire Agreement |
|------|------------------|

| 22.6 | Relationship |
|------|--------------|

| 22.7 | Force Majeure |
|------|---------------|

| 22.8 | Goods and Services Tax ('GST') |
|------|--------------------------------|

|   | (a) | If, by operation of the GST Law, any Supply under this Agreement is regarded as a taxable supply, the Supplier will be entitled to recover from the Recipient, an amount equivalent to the GST payable by the Supplier in relation to the Supply, less any decrease in the cost to the Supplier of making the Supply resulting from the abolition or variation of any taxes, duties or statutory charges in relation to the imposition of GST. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If GST  is payable,  the  Supplier  will  provide  the  Recipient  with  a tax  invoice  or  a document adequate to entitle the Recipient to claim an input tax credit. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In this clause: |
|--------|-----|-----------------|

----

----

----

----

----

----

|   | 1. | Title: | A method of assaying and treating Alzheimer’s Disease |
|--------|----|--------|-------------------------------------------------------------|

|   | 2. | Title: | The University’s rights in the invention entitled “Use of clioquinol for the prevention and therapy of Alzheimer’s disease”. |   |
|--------|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| 1. | Studying the Aβ amyloid in the human and animal brain |
|----|------------------------------------------------------------|

| 2. | Evaluating the effect of Aβ on tissues, cells and in biochemical assays |
|----|------------------------------------------------------------------------------|

| 3. | Assays of Aβ in experimental and natural systems |
|----|-------------------------------------------------------|

| 4. | Preparation of reagents necessary for the conduct of assays and experiments on Aβ. |
|----|-----------------------------------------------------------------------------------------|

| 5. | Conduct of clinical trials in humans arising out of the Research. |
|----|-------------------------------------------------------------------|

----

----

----

----

----

----

----

----

----