Document:

RESEARCH AGREEMENT

EXHIBIT 10.20

 

RESEARCH AGREEMENT

 

THIS

AGREEMENT, effective the 15th day of August, 2001, is by and between Axonyx a

corporation organized under the laws of the State of New York whose offices are

located at 825 Third Avenue, 40 th Floor, New York, NY 10022 (hereinafter

“Sponsor”); and Indiana University, an educational institution organized under

the laws of the State of Indiana, whose address is P.O. Box 1847, Bloomington,

IN 47402 (hereinafter “Indiana”).

 

1.     Scope of Work.  Indiana will use reasonable efforts to

perform the experiments and studies described in the research proposal,

“Investigation on Novel Targets of Phenserine Drug in Alzheimer’s Disease”,

which is attached as Appendix 1 and included by reference (the Research

Project).  The Research Project may be

modified by mutual agreement in a duly executed amendment to this Agreement.

 

2.     Key Personnel.  The Research Project will be performed under

the direction of Dr. Debomoy K. Lahiri. 

In the event s/he is unable or unwilling to continue with the Research

Project, the parties will attempt to find a mutually acceptable

substitute.  In the event a mutually

acceptable substitute is not found, the Agreement may be terminated in

accordance with Paragraph 10.

 

3.     Term.  The term of this Agreement is August 15,

2001 through august 14, 2002.

 

4.     Reports.  Upon completion of the research or

termination of the Agreement, Indiana will submit a written study report.  This report will be due 60 days after

termination of this Agreement.

 

5.     Costs and Billings.  Sponsor agrees to pay Indiana $125,000 for

the Research Project. Payments will be made quarterly with the first such

payment due upon execution of this Agreement. 

Checks will be payable to Indiana University, referring to this

Agreement, and will be sent by mail to Indiana University, P.O. Box 6667,

Indianapolis, Indiana 46266-6057, tax identification number 35-6001673.

 

6.     Equipment.  Title to any equipment purchased by Indiana

in the performance of the Research Project whether or not purchased with funds

provided under this Agreement will remain with Indiana and will be free of all

claims, liens, or encumbrances of the Sponsor.

 

7.     Publications.  Indiana is free to publish, present, or use

any results arising out of the perfonnance of this Agreement for its own

instructional, research, or publication objectives provided that the

publication, presentation or use does not disclose any confidential information

furnished by Sponsor under Paragraph 9. 

Indiana agrees that any proposed publication or presentation relating to

the Research Project conducted under this Agreement will be submitted to

Sponsor for review 30 days prior to submission for publication or presentation.

In the event that the proposed publication or presentation contains patentable

subject matter which needs protection, Indiana will, upon written request from

Sponsor within the 30 day review period, delay the publication or presentation

for a maximum of an additional 90 days to allow Sponsor or Indiana to file a

patent application.

 

 

8.     Intellectual Property

 

8.1.      Indiana will promptly

disclose to the Sponsor all creative ideas, developments and inventions whether

or not patentable, conceived or first reduced to practice as a result of the

Research Project (“Inventions”).  Inventions

will remain the property of Indiana.

 

8.2.      Indiana hereby grants to

the Sponsor the first option for a worldwide, exclusive, royalty bearing

license to make, have made, use, sell with a right to sublicense,

Inventions.  The terms of such license

will be reasonable in the circumstances and will be negotiated in good faith

between the Sponsor and Indiana.  The

option will extend for a time period of 6 months from the date of first

disclosure to Sponsor.

 

9.     Confidentiality

 

9.1.      Indiana agrees to hold

in confidence, in accordance with this paragraph, any information disclosed to

Indiana under this Agreement and identified in writing as confidential

(hereinafter “Information”).  For the

purpose of this Agreement, “hold in confidence” means that Indiana will protect

the Information in the same manner in which it protects its own confidential

information.  The Information will

remain the property of the Sponsor, and will be disclosed only to those persons

necessary for the performance of this Agreement.

 

9.2.      No indirect or

consequential damages or damages based on loss of profits or market share are

contemplated or recoverable for breach of confidentiality.

 

9.3.      The obligations of

Indiana to maintain confidentiality under this Agreement will survive its

expiration or termination and will endure for 5 years from the date of

disclosure.

 

9.4.      The obligation of

non-disclosure will not apply to the following:

 

a.      Information that is

publicly available through no fault of Indiana;

b.      Information that is

disclosed to Indiana by a third party entitled to disclose the Information;

c.      Information that is

already known to Indiana; and

d.      Information that is

required to be disclosed by law, provided Indiana promptly notifies the Sponsor

in writing of such lawful disclosure.

 

10.   Termination

 

10.1.    Unless otherwise

terminated, this Agreement will remain in force during the Term provided in

Sec. 3.  Provisions of this Agreement

which by their nature contemplate rights and obligations of the parties to be

enjoyed or performed after the expiration or termination of this Agreement will

survive until their purposes are fulfilled.

 

10.2.    If Indiana fails to

continuously staff the project with adequate and competent personnel, the

Sponsor may terminate this Agreement upon 90 days written notice.

 

2

 

10.3.    In the event that either

party defaults or breaches any material provision of this Agreement, the other

party may terminate this Agreement upon 30 days written notice to the party in

default or breach, provided, however, that if the party defaulting, breaching,

or failing, within 30 days of the receipt of such notice cures the said

default, breach or failure; the Agreement will continue in force and effect.

 

10.4.    If either party should

become insolvent or should make any assigm-nent for the benefit of creditors,

or should be adjudged bankrupt, or should file a petition in bankruptcy, or is

named as debtor in an involuntary bankruptcy proceeding, or if a receiver or

trustee of the property of either party is appointed, then this Agreement, at

the option of the other party, will terminate, effective on the date notice of

such termination is given.

 

10.5.    Should Sponsor terminate

this Agreement, Sponsor will reimburse University for all expenditures and non–cancelable

commitments incurred prior to termination not to exceed the total amount of the

Agreement.

 

11.      Non-use of Names.  Sponsor will not use the names or trademarks

of Indiana or its employees, nor any adaptation thereof in any advertising,

promotional or sales activities without prior written consent obtained from

Indiana in each separate case.

 

12.      Assignment.  Neither party may assign this Agreement or

any part of it without the written consent of the other party.

 

13.      Miscellaneous

 

13.1.    The headings in this

Agreement are intended solely for convenience or reference and will be given no

effect in the construction or interpretation of this Agreement.

 

13.2.    This Agreement, including

attached appendices, supersedes all prior oral and written proposals and

communications, if any, and sets forth the entire Agreement of the parties with

respect to the subject matter hereof and may not be altered or amended except

in writing, signed by an authorized representative of each party hereto.

 

13.3.    The construction and

enforcement of this Agreement will be governed by the laws of the State of

Indiana, United States of America, without regard to principles of choice of

law.

 

13.4.    No waiver of any default,

condition, provision or breach of this Agreement will be deemed to imply or

constitute a waiver of any other like default, condition, provision or breach

of this Agreement.

 

13.5.    If any paragraph, term,

condition or provision of this Agreement will be found, by a court of competent

jurisdiction, to be invalid or unenforceable, or if any paragraph, terin,

condition or provision is found to violate or contravene the laws of the State

of Indiana, then the paragraph, term condition or provision so found will be

deemed severed from this Agreement, but all other paragraphs, tem–is,

conditions and provisions will remain in full force and effect.

 

13.6.    Nothing contained herein

will be construed as establishing an

 

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employer-employee,

joint venture, or principal-agent relationship between the parties. In

addition, neither party will have the right to incur any debt or expense for

the account of the other party except as may expressly be agreed upon by

separate written agreement.

 

14.      Indemnity and Insurance

 

14.1.    The Sponsor will

indemnify, defend, and hold harinless Indiana, and its officers, employees,

agents, and subcontractors and their employees from any suit, action, claim,

demand, judgment, and expense arising out of the performance of this Agreement.  The Sponsor agrees that if any claim is

asserted or suit brought against Indiana, or their officers, employees, agents,

or subcontractors or their employees, the Sponsor will defend the claim or suit

at the expense of the Sponsor.  Sponsor

will not settle or compromise any claim or action in a manner that imposes any

restrictions or obligations on Indiana without Indiana!s written consent, which

consent shall not be unreasonably withheld.

 

14.2.   The Sponsor will have no

obligation to indemnify, defend, and hold harmless Indiana, and its officers,

employees, agents, and subcontractors and their employees from claims asserted

or suits arising out of performance of this Agreement, if it can be shown that

the claim or suit is based solely on the negligence of Indiana, its officers,

employees, or agents.

 

IN WITNESS

WHEREOF, the parties hereto have caused this Agreement signed by their

respective officers duly authorized as of the date and year written.

 

	

  INDIANA

  UNIVERSITY

  	

  (SPONSOR)

  
	

   

  	

   

  
	

  BY:

  	

  /s/ Debomoy

  K. Lahirir

  	

   

  	

   

  
	

   

  	

  Debomoy K.

  Lahiri

  	

   

  
	

   

  	

  Project

  Director

  	

   

  
	

   

  	

   

  
	

  BY:

  	

  /s/ Steven

  A. Martin

  	

   

  	

  BY:

  	

  /s/ Michael

  M. Strage

  	

   

  
	

  NAME:

  	

  Steven A.

  Martin

  	

  NAME:  

  	

  Michael M.

  Strage

  
	

  TITLE:  

  	

  Assistant

  Vice President, Research

  Officer

  	

  TITLE:  

  	

  Chief

  Administrative 

  
	

   

  	

   

  
	

  DATE:

  	

  8/21/01

  	

   

  	

  DATE:

  	

  8/22/01

  	

   

  
													

 

4Employment agreement

EXHIBIT

10.22

 

EMPLOYMENT AGREEMENT

 

Agreement as agreed on the 10th day of October,

2000 and signed on the 28th of December, 2000, by and between

1.      AXONYX EUROPE

B.V. having its

corporate office at WAAIER 38, 2451 VW LEIMUIDEN, THE NETHERLANDS,  and represented by MR. GOSSE BRUINSMA, President-director (

hereinafter referred to as ‘Axonyx’ ) and

2.      MR. GOSSE

BRUINSMA, MD now

residing at BILDERDIJKSTRAAT 9, 2311 XD, LEIDEN, THE NETHERLANDS ( hereinafter

referred to as ‘Employee’)

 

WITNESSETH

 

Whereas, Employee has stated that he is fully entitled

and available to serve Axonyx nationally and internationally and that he has in that respect no

restrictions or obligations with respect to anybody;

 

Whereas, Axonyx deals with highly confidential

information, which is of great value to Axonyx, and which must be protected

from an non authorized disclosure; and

 

Whereas, in order to hire the Employee, Axonyx

requires that the Employee executes this agreement;

 

Now, therefore, in consideration of mutual covenants

herein contained, and for other good and valuable consideration, receipt of

which is hereby acknowledged, Axonyx and the Employee hereby agree as follows:

 

1.       Employment of Employee

Axonyx hereby employs

the Employee as PRESIDENT, of AXONYX, reporting to the CEO of Axonyx Inc. USA

and Employee will assume the position, on the2nd of October, 2000

 

2.       Term

The term of employment of the

employee is a guaranteed TWO year contract, at undiminished terms and

conditions, effective upon date of last signature to contract and to be

renegotiated at least 6 months prior to expiration of the two year period.  In the event the Agreement is not renewed

Axonyx agrees to continue the salary and benefits at undiminished terms and

conditions for an additional six months beyond the two year contract.

 

3.       Employment services

The President, Axonyx, is an

integral member of the corporate level, senior management team of Axonyx Inc.

USA and such as is expected to provide senior level input to the establishment

of overall company objectives and strategies. 

He is further responsible for the establishment and ongoing general

management of any and all multinational and scientific/clinical representation

required but not limited to Europe, Japan and Australia. These activities are

to support the business and 

 

 

drug/diagnostic product

development requirements of the company and will be in with agreed upon

corporate objectives and strategies. This position is critical to the overall

success of company and is focused on optimizing the company’s investment(s) and

shareholder value.

 

4.       Remuneration

In consideration of the services to be

rendered by the Employee hereunder, Axonyx shall pay to the employee and the

Employee aggress to accept, as full compensation for such services:

 

(a)      A SALARY

at the rate of Dfl. 425,000 gross, per year, payable in twelve equal  calendar month installments, in arrears, to

the blank account indicated by the Employee. 

Any partial month will pro-rated accordingly.  The gross salary includes the statutory holiday allowance. Axonyx

will bear all employer-related expenses related to the employ of Dr. Bruinsma,

including any and all by law mandatory social premiums, due to the Dutch

government.

(b)      A BONUS

of a minimum of Dfl. 46,000 at the end of each 1st quarter of each calendar

year, Including anno 2001

(c)      The

Employee is entitled to a stock option scheme concerning shares of Axonyx, Inc.

 

The terms of this scheme are:

c. 1 - the total amount of ten-year options shall be

150,000

c. 2 - the option price is fixed at US$9,50, being the

actual trading price of Axonyx shares on October 10, 2000

c. 3 - the options shall be vested as follows:

           •       25,000 as from the date of this

agreement.

           •       50,000 on the 10th of October, 2001.

           •       25,000 on the 10th of October, 2002.

           •       25,000 on the 10th of October, 2003.

           •       25,000 on the 10th of October, 2004.

c. 4 - if at any of the afore mentioned dates the

Employment agreement has been terminated or has not been renewed, a vesting

shall not take place.

c. 5 - Axonyx will grant a non-recourse loan to the

Employee up to the amount that the Employee is due to Dutch Tax Authorities wit

regard to the stock option scheme.  The

interest rate will be 4%. Any sale of shares shall incur a proportional redemption

of the loan.

 

5.       Expenses

Dfl. 57,500 is available to Dr. Bruinsma for

the reimbursement to expenses. These expenses can be, but are not limited to

the following:

• The use of home office and personal equipment (

computers, telephones, fax  machines,

etc.)

• Health insurance premium

 

2

 

• Life insurance premium

• Disability Insurance premium

• Pension distribution/contribution

• Auto Lease premium

 

Capital

expenses associated with the purchase of a any and all office equipment

required for the conduct of normal Axonyx business, including computers,

telephones, fax machines, etc. are not included in the above reimbursements.

Any such equipment purchased will remain the property of Axonyx.

 

Conduct

of business costs associated with Axonyx, e.g. land line telephone/fax

subscription and call charges, mobile telephone subscription and call charges,

petrol, transportation and hotel costs, presentation and entertainment costs,

etc. will be regarded as direct company expenses and reimbursed separately.

All costs

associated with salary and general Administration activities that could be ontracted to third

parties, are for the direct costs of Axonyx.

 

6.       Holidays

The Employee

shall be entitled with full remuneration to twenty (20) vacation days per year.

 

7.       Termination

a)        The

Employee’s employment hereunder may be terminated immediately by Axonyx for

Cause upon written notice to the Employee. 

Cause for purposes of this agreement shall mean any (1) willful

disregard of or failure to perform duties, (2) habitual absence from

employment, (3) drunkenness or drug abuse, (4) dishonesty, (5) the breach by

Employee of any material provision of this Agreement, (6) selling, passing on

or otherwise using without permission any confidential information of Axonyx, (7)

action or engagement in competition of Axonyx, or (8) death.

 

b)       In the

event the Employee, due to physical or mental injury, illness, disability or

incapacity, shall fail to render the services provided for in this Agreement

for a consecutive period of twelve months, Axonyx may, at its option, terminate

the Employee’s employment hereunder thirty (30) days prior written notice to

the Employee or his legal representative.

 

c)       The

Employee may terminate his employment hereunder by two (2) months prior written

notice to Axonyx that he desires to terminate this Agreement at the end of the

then current period of extension. In the event that the Employee gives notice

of termination to Axonyx pursuant to this Section, Axonyx may immediately

terminate this Employee’s employment.

 

8.       Non-Disclosure of Confidential

Information and Non-Competition

(1)      A- The Employee acknowledges that it is the

police of Axonyx to maintain as secret and confidential all Confidential

Information as hereinafter defined. 

 

3

 

‘Confidential

Information’ shall mean any information, not generally known in the Company’s

industry, which gives Axonyx a competitive advantage in the industry,

heretofore or hereafter acquired, discovered, developed, conceived, originated,

used,  or prepared by Axonyx or by an

employee of Axonyx as the result of employment with the Axonyx and which falls

within the following general categories:

(a)    information relating to trade secrets of

Axonyx or any customer of the Axonyx:

(b)    information relating to existing or

contemplated products, services, technology, designs, processes, manuals,

formulas, computer systems, and/or software, and any research or development of

Axonyx or any  customer of Axonyx

(c)    information relating to business plans,

sales or marketing methods, methods of doing business, customer lists.,

consumer usages and/or requirements, and supplier of Axonyx or any customer of

Axonyx

(d)    any other Confidential Information that

either Axonyx or any customer of Axonyx may wish to protect by patent,

copyright or by keeping it secret and confidential

 

B - The Employee recognizes that the services to be

performed by the Employee are special and unique, and that by reason of duties,

he will acquire Confidential Information. 

The Employee recognizes that all such Confidential Information is the

Property of Axonyx. In consideration of Axonyx entering into this Agreement,

the Employee agrees that:

 

(a)    the Employee shall never, during the term of

his employment or thereafter, directly or indirectly, use, publish, disseminate

or otherwise disclose any Confidential information obtained in connection with

his employment by Axonyx without the prior written consent of Company’s board

of directors, acting independently, it being understood that this subparagraph

shall survive the term of this Agreement;

(b)    during the

term of his employment by Axonyx, shall exercise all due diligent precautions

to protect the integrity of Axonyx’ customer lists, mailing lists and sources

thereof, statistical data and compilations, agreements, contracts, manuals or

other documents embodying any Confidential Information and, upon termination of

his collaboration, he shall return all such documents and any copies thereof,

in his possession or control;

 

C-Upon 

the termination or expiration of this Agreement, the Employee shall

immediately deliver  to

Axonyx all the books, record, memoranda, reports, data and documents relating

to Axonyx’ business and customers and other assets of Axonyx in the possession,

custody or under control of the employee, whether of not such material contains

Confidential Information.

The

employee agrees that provisions of this paragraph are reasonably necessary to

protect the Proprietary rights of the Company in confidential Information and

it’s trade secrets, goodwill and reputation.

 

4

 

(2)      A- During the Non-Competition Period ( as

hereinafter defined) the Employee shall not in any way, be engaged, directly or

indirectly, anywhere within the

United States, Europe and/or each country in which Axonyx has customer and/or

product facilities and/or Joint Ventures, as an employee, partner, officer,

director, representative, consultant, agent or stockholder (other than as the holder

of not more than five per cent (5%) of the stock of a corporation the shares of

which are publicly traded) of any corporation, partnership, or other form of

business entity engaged in the business of designing and  developing products or services similar to

the products or services of Anoxyx.

Without

limiting the foregoing, during the Non-Competitive Period the employee shall

not seek to persuade, directly or indirectly, any director, officer, or

employee of Axonyx to discontinue that individual’s status or employment with

Axonyx, nor to become employed in activity similar to or competitive with the

activities of Anonyx, nor will be, directly or indirectly, hire or retain any

such person, nor will he solicit or cause authorization, directly or indirectly,

to be solicited, for or on behalf of himself or any third party, from others

who are customers of Axonyx, any business which is competitive with Axonyx.

 

B- For purposes of this Agreement, the

Non-Competitive Period shall mean the period commencing on the date hereof and

ending TWO YEARS after the date that the Employee’s employment hereunder is

terminated.

 

(3)      The Employee acknowledges that any breach or

alleged breach or alleges threatened breach by him of the provisions contained

in this Selection

8 can cause irreparable harm to Axonyx for which Axonyx would have

no adequate remedy at law.  In the event

of a breach or threatened breach or an alleged threatened breach or alleged

threatened breach by the Employee of any such provisions, Axonyx, in addition

to any and all other rights and remedies it may have under this Agreement or

otherwise may immediately seek

any judicial action that Axonyx may deem necessary including, without

limitation, the obtaining of temporary and preliminary injunctive relief.

 

9.       Warranties

The

Employee hereby represents and warrants the following to Axonyx:

a)      The Employee is able in all aspects to

execute and perform this Agreement, and the execution and performance hereof

does not constitute breach of default under any other agreement, contract or

arrangement which is binding upon the Employee.

b)     The Employee is entering into this

Agreement in good faith.

 

10.     Assignment of Work Product

a)      Employee agrees that, with respect to his

work product resulting from any research or other developmental activities

performed in connection with his duties hereunder, any such developments made

by Employee or under Employee’s direction shall be the sole and complete

property Axonyx and that any and all patents and copyrights resulting therefrom

shall belong to Axonyx except as determined by any specific provision herein.

 

5

 

b)     In the event that, during or subsequent to

the employment of the Employee’s assistance is needed in securing, defending or

enforcing any patent or copyright of which the employee is an inventor,

co-inventor, author, designer, etc., the Employee shall comply upon reasonable

requests to assist Axonyx without any additional compensation, it being

understood that this subparagraph shall survive the term of this Agreement.

 

11.     Amendment and Entire Agreement

This agreement cannot be modified, changed,

discharged or terminated except by an instrument in writing, signed by the

party against whom the enforcer of any waiver, change, discharge or termination

is sought. This Agreement contains the entire understanding between Axonyx and

the Employee with respect to the matters referenced to herein.

 

12.     Severability

In the event of

the invalidity or unenforceability of any one more provisions of this

Agreement, such illegality or unenforceability shall not affect the validity or

enforceability of the other provisions shall be deemed to remain full force

effect.

 

13.     Governing Law

The Agreement

shall be construed and governed in accordance with the laws of THE KINGDOM OF

THE NETHERLANDS.  The competent court

shall be the one according to the Laws of the Kingdom of the Netherlands.

 

14.     Execution in Counterparts

This Agreement

may be executed in any number of counterparts, each of which shall be deemed to

be an original, but of which together shall constitute one and the same

instrument.

 

In

WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed

on the day and year first above written.

 

	

  /s/ Marvin S. Hausman

  	

   

  	

  /s/ Gosse Bruinsma

  	

   

  
	

  Marvin S. Hausman, M.D.

  	

  Gosse Bruinsma MD

  
	

  President & CEO

  	

   

  
	

  Axonyx Inc.

  	

   

  
	

   

  	

   

  

 

6

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