Document:

EXHIBIT 10.3 LICENSE AGREEMENT

 

Exhibit 10.3

AMENDMENT NO. 1

     The
License Agreement between Brookhaven Science Associates LLC. and Catalyst
Pharmaceutical Partners, Inc., effective as of April 3, 2006, is hereby amended, effective April 3,
2006 as follows:

     In Article I — Definitions, sub-paragraph 12 of paragraph (a), “Patent Rights”, is replaced in
its entirety as follows:

     12. Foreign patents and foreign patent applications corresponding to U.S. patents and
patent applications identified in paragraph 1 — 11 above.

     In Article XIII — Notices, paragraph (a), the contact information for Licensor is replaced as
follows:

For Licensor:

Christine Brakel, Licensing Specialist

Office of Intellectual Property and Sponsored Research

Brookhaven National Laboratory

Building No. 475D

P.O. Box 5000

Upton, New York 11973-5000

Telephone: 631-344-7134

Fax: 631-344-3729

E-mail: brakel@bnl.gov

     In Article XIII — Notices, paragraph (b), the delivery details for mailing checks is replaced
as follows:

	 	 	 
	     CHECK MAILED TO:
	 	Manager
	 	 	Office of Intellectual Property and Sponsored Research
	 	 	Brookhaven National Laboratory
	 	 	Bldg. 475D, P.O. Box 5000
	 	 	Upton, NY 11973-5000

					
	 	 	 	 	 
	 
	 	1
	 	 

 

 

     All other terms and conditions remain in full force and effect.

LICENSOR:

     BROOKHAVEN SCIENCE ASSOCIATES, LLC.

	 	 	 	 	 
	By
	 	/s/ Lori-Anne Neiger	 	 
	 

	 	 

Lori-Anne Neiger
	 	 
	Title

	 	Senior Patent Counsel	 	 
	 

	 	Office of Intellectual Property	 	 
	Date
	 	April 3, 2006 	 	 
	 

	 	 	 	 

LICENSOR:

     CATALYST PHARMACEUTICAL PARTNERS, INC.

	 	 	 	 	 
	By
	 	/s/ Patrick J. McEnany	 	 
	 

	 	 

Patrick J. McEnany
	 	 
	Title

	 	Chief Executive Officer	 	 
	Date
	 	April 3, 2006 	 	 
	 

	 	 	 	 

 

 

			
	
	 	Patrick J. McEnany

Chief Executive Officer

April 3, 2006

Ms. Margaret C. Bogosian

Manager

Brookhaven National Laboratory

Office of Intellectual Property & Sponsored Research

Building 475D

Upton, NY 11973-5000

	 	 	 
	Re:

	 	License Agreement between Brookhaven Science Associates (BSA) and Catalyst
Pharmaceutical Partners

Dear Peg:

Enclosed please find one fully executed original of the amended License Agreement between
Brookhaven Science Associates and Catalyst Pharmaceutical Partners.

Thank you for your continued support.

Best regards,

Patrick J. McEnany

Chief Executive Officer

 

Enclosures

• 220
Miracle Mile, Suite 234    Coral Gables, Florida 33134
   Phone (305) 529-2522    Fax (305)
529-0933
www.catalystpharma.com

 

 

	 	 	 	 
	

	 	Office of Intellectual Property & Sponsored Research      

Building 475D      

P.O. Box 5000      

Upton, NY 11973-5000      

Phone 631 344-7338      

Fax 631 344-3729      

bogosian@bnl.gov      
	 

	 	managed by Brookhaven
Science Associates

for the U.S. Department of Energy
	 
	 	 
	 

	 	www.bnl.gov

March 31,
2006

Mr. Patrick McEnany 

Chief Executive Officer

Catalyst Pharmaceutical Partners

220 Miracle Mile, Suite 234

Coral Gables, FL 33134

	 	 	 
	Re:

	 	 License Agreement Between Brookhaven Science Associates (BSA) and Catalyst
Pharmaceutical Partners

Dear Pat:

     In pursuant to my e-mail dated 3/31/06, please find duplicate originals of the subject license
agreement between BSA and Catalyst for your approval. Kindly execute both originals at your
earliest convenience, and return one fully executed original to me.

     If you have any questions, please feel free to contact me.

	 	 	 	 	 
	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Margaret C. Bogosian
 

Margaret C. Bogosian
	 	 
	 

	 	Manager	 	 

MCB: gc

Enclosures

 

 

LICENSE AGREEMENT

     This Agreement is effective as of the latest date of signing below (“Effective Date”) and is
by and between Brookhaven Science Associates LLC, (“Licensor”), operator of Brookhaven National
Laboratory, Upton, New York 11973, under contract with the U.S. Department of Energy, and Catalyst
Pharmaceutical Partners, Inc., (“Licensee”) having a principal place of business at 220 Miracle
Mile, Suite 234, Coral Gables, FL 33134.

     Licensor represents that it is the owner by assignment of all rights, title and interest in
the patent properties covering the use of gaba-vinyl gaba (GVG) in the treatment of addiction and
addiction-related behavior.

     Licensor represents that it has the right to grant licenses under said patent properties,
subject to a non-exclusive, non-transferable, irrevocable, paid-up license heretofore granted to
the U.S. Government to practice or have practiced the invention(s) covered by said patent
properties for or on behalf of the United States Government and further represents that it will
provide to Licensee, upon request, accurate and complete copies of said patent properties.

     Licensor desires to have said patent properties utilized in the public interest and is willing
to grant this license on the terms and conditions set forth herein.

     Licensee desires to secure an exclusive worldwide license with the right to sublicense under
said patent properties on the terms and conditions set forth herein.

     Accordingly, in consideration of the premises and the mutual covenants of this
Agreement, the parties hereto agree as follows:

					
	 	 	 	 	 
	 
	 	- 1 -
	 	 

 

 

I — DEFINITIONS

     (a) The term “Patent Rights” shall mean:

          1. BSA Docket No. BSA 98-26 — United States Patent No. 6,057,368 issued May
2, 2000 in the names of Dewey, et al. entitled “Treatment of Addiction and Addiction Related
Behavior”, and any reissue thereof;

          2. BSA Docket No. BSA 00-33 — United States Patent No. 6,323,239 issued
November 27, 2001 in the names of Dewey, et al. entitled “Treatment of Addiction to Ethanol
and Addictive-Related Behavior”, and any reissue thereof;

          3. BSA Docket No. BSA 99-02 — United States Patent No. 6,828,349 issued
December 7, 2004 in the names of Dewey, ct al. entitled “Treatment of Addiction and Addiction
Related Behavior”, and any reissue thereof,

          4. BSA Docket No. BSA 99-03 — United States Patent No. 6,541,520 issued April
1, 2003 in the names of Dewey, et al. entitled “Treatment of Addiction and Addiction Related
Behavior”, and any reissue thereof,

          5. BSA Docket No. BSA 99-18 — United States Patent No. 6,593,367 issued July
15, 2003 in the names of Dewey, et al. entitled “Treatment of Addiction and Addiction Related
Behavior”, and any reissue thereof,

          6. BSA Docket No. BSA 00-26 — United States No. 6,395,783 May 28, 2002 in
the names of Dewey, et al. entitled “Treatment of PCP Addiction and PCP Addiction-Related
Behavior” and any reissue thereof,

          7.
BSA Docket No. BSA 00-38 — United States Patent No. 6,462,084 issued
October 8, 2002 in the names of Dewey, et al. entitled “Novel Treatment for Obsessive-

					
	 	 	 	 	 
	
	 	- 2 -
	 	 

 

 

Compulsive Disorders”, and any reissue thereof,

          8. BSA Docket No. BSA 02-12 — United States No. 6,939,876 issued September 6,
2005 in the names of Dewey, et al. entitled “Prevention of Addiction in Pain Management”, and
any reissue thereof,

          9. BSA Docket No. BSA 03-02 — United States Patent No. 6,713,497 issued
March 30, 2004 in the names of Charles Ashby entitled “Use of Vitamin B6 to Mitigate Visual
Field Defects Associated with the Use of Gabaergic Drugs in Mammals”, and any reissue thereof,

          10. BSA Docket No. BSA 03-05 — United States Patent Application Serial No.
10/446,285 filed May 27, 2004 in the name of Charles Ashby entitled “Use of Anti-Glaucoma
Drugs to Treat Visual Defects Associated with the Use of a GABAergic Agent”, and any
continuations, continuations-in-part, or divisional of said applications, and any patents
reissue of
patents that issued thereon,

          11. BSA Docket No. BSA 04-09 — United States Patent Application Serial No.
10/776,108 filed February 10, 2004 in the name of Charles Ashby entitled “Use of Vitamin B6 to
Mitigate Visual Field Defects Associated with the Use of Gabaergic Drugs in Mammals”, and
any continuations, continuations-in-part, or divisional of said applications, and any patents
reissue of patents that issued thereon,

          12.
Foreign patents and foreign patent applications corresponding to U.S. patent applications identified in paragraphs 2-11 above.

     (b) The term “Valid Claim” means and includes a claim contained in the Patent Rights which has
not expired, which has not been held invalid or unenforceable by final decision of a court or other
governmental agency of competent jurisdiction, unappealable or unappealed within

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the time allowed for appeal, and which has not been admitted to be invalid or unenforceable
through reissue, disclaimer or otherwise.

     (c) The term “Licensed Product” shall mean any product that incorporates, is covered by,
is made in whole or in part by, or is used according to the inventions covered by any Valid
Claim
in the Patent Rights.

     (d) The term “Licensed Process” means any process the practice of which is covered
by any of the claims in the Patent Rights.

     (e) The term “Field of Use” means the medical application in humans of gamma-vinylGABA (also identified as GVG or vigabatrin).

     (f) The term “Term” means the period of this License Agreement and shall run from
the Effective Date of this Agreement to the end of the term of the last to expire patent in
the Patent Rights licensed hereunder.

II — GRANT

     Subject to the rights of the U.S. Government, defined in Public Law 98-620 and the related
implementing regulations at 37 CFR Part 401, Licensor hereby grants to Licensee an exclusive
worldwide license with the right to sublicense within the Field of Use under the Patent Rights to
make, have made, use, and/or sell Licensed Products and to practice the Licensed Process.

III — REIMBURSEMENT OF LICENSOR’S PATENT COSTS

     (a) As partial consideration for the granting of this license, Licensee will reimburse
Licensor for all reasonable and customary expenses incurred by Licensor prior to September 30, 2005
in connection with the filing, prosecution, and maintenance of all patents and patent

- 4 -

 

applications included in the Patent Rights. These expenses total $69,352.00, which amount shall be
payable by Licensee to Licensor in six (6) equal payments during each of the six (6) months
immediately following the date upon which Licensee submits its NDA to the U.S. Food and Drug
Administration (“FDA”) for the use of GVG in the treatment of human cocaine addiction.

     (b) As partial consideration for the granting of this license, Licensee will reimburse
Licensor for all reasonable and customary expenses incurred by Licensor subsequent to
September 30, 2005 in connection with the filing, prosecution, and maintenance of all patents
and patent applications included in the Patent Rights. Licensor will submit periodic invoices
to
Licensee covering such expenses with Licensor’s first invoice to be submitted to Licensee
within
sixty (60) days of FDA regulatory approval to sell any Licensed
Product to practice a Licensed

Process. Licensee will reimburse Licensor within thirty (30) days of receipt of each invoice.

     (c) During the Term Licensor shall consult on an ongoing basis with the Licensee, or
Licensee’s designated intellectual properly representative, respecting the prosecution,
maintenance and protection of the Patent Rights and shall give reasonable consideration to the
views of Licensee with respect thereto.

IV — REPORTS AND ROYALTIES

     (a) Commencing in the calendar year following FDA regulatory approval to sell any
Licensed Product and/or to practice a Licensed Process, Licensee agrees to make written
reports
to Licensor annually, within sixty (60) days after the first day of each January during the
Term,
and, as of such date, stating in each such report the particulars of the business conducted by
Licensee during the preceding twelve (12) month period under this license Agreement

     (b) Concurrently with the making of each such report required by paragraph (a) of this

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Article IV,
Licensee will pay to Licensor a lump sum royalty according to the following schedule:

 

	 	i.	 	For the calendar year in which the FDA approves Licensee’s NDA for the
use of GVG in the treatment of human cocaine addiction — $100,000.00,
due by
December 31st of said year;
	 
	 	ii.	 	For calendar years two
and three after FDA approval of Licensee’s NDA
for the use of GVG in the treatment of human cocaine addiction —
$250,000.00 each year due by December 31st of each year;
and
	 
	 	iii.	 	For the remaining years covered by the term of this
agreement —
$500,000.00 each year, due by
December 31st of each year.

     (c) Licensee agrees to make a written report to Licensor within sixty (60) days after
the date of any termination of this Agreement, stating in such report the business particulars
up to
such date of termination which were not previously reported to Licensor. Concurrently with the
making of this report, Licensee will pay to Licensor the pro-rated share of the appropriate
lump
sum royalty due under paragraph (b) above.

     (d) All monies payable hereunder shall be paid in United States Dollars.

V — SUBLICENSES

     (a) The
grant under Article II above includes the right to grant sublicenses. Any
sublicense granted by Licensee shall be subject to the terms and conditions of this Agreement,
including the insurance requirement in Article VII hereof, and shall contain an express provision
to that effect. No sublicense shall relieve Licensee of any of its obligations under this
Agreement. Licensee agrees to forward to Licensor a fully executed copy of each sublicense

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agreement it enters into within thirty (30) days after execution thereof.

     (b) Licensee
agrees to include in its reports required in Article IV above an accounting of all consideration received by Licensee from its sublicensees. Licensee agrees to
pay Licensor, in addition to all of the amounts provided for in Article IV above, twenty
percent
(20%) of all consideration of any nature, including, for example, license fees, earned
royalties,
and minimum royalties, received by Licensee from its sublicensees.

     (c) Upon the termination of this Agreement for any cause, any and all existing
sublicenses hereunder shall thereupon automatically terminate. This shall be made a condition
of
any sublicense that may be granted by Licensee.

VI — AUDITING

     (a) Licensee agrees to keep for a period of three years the records used to prepare the
reports required by Article IV hereof. Such records shall be in sufficient detail to enable
the
royalties and licensing fees payable hereunder by Licensee to be clearly and fully determined

Licensee further agrees to permit such records to be examined from time to time to the extent
necessary to verify the reports provided for in Article IV hereof, such examination to be made
at
the expense of Licensor by an auditor appointed by Licensor who will be acceptable to
Licensee,
which acceptance shall not be unreasonably withheld, or at the option and expense of Licensee,
by an independent Certified Public Accountant who shall be appointed by Licensee and who
shall be acceptable to Licensor, which acceptance shall not be unreasonably withheld.

     (b) Licensor agrees to maintain in confidence the information reported to it in
Licensee’s annual reports and any confidential information it obtains through its audit
rights.
Licensor will neither disclose this information outside of its organization nor use this
information

- 7 -

 

for any purpose other than collection of royalties or license fees from Licensee under this
Agreement.

     (c) Licensee
agrees that the confidentiality and use provisions of this Article shall not
apply to the following:

          (1) any information which appears in printed publications or which otherwise
is or becomes generally known in the trade other than through the fault of Licensor;

          (2) any information which Licensor can show by written records was in its
possession prior to the disclosure hereunder;

          (3) any information which comes into the possession of Licensor without
covenants of secrecy from another party who is under no obligation to Licensee to maintain the
confidentiality of the information; or

          (4) disclosure of any information when required by law, including disclosure
required by applicable disclosure rules promulgated by the U.S. Securities and Exchange
Commission.

VII
— DISCLAIMER, INDEMNIFICATION, HOLD HARMLESS AND INSURANCE

     (a) Except with respect to the representations and warranties set forth by Licensor in
the preamble to this License Agreement, Licensor makes no representation or warranty, either
expressed or implied, with respect to the License herein granted other than that Licensor has
the
right to grant said license.

     (b) Nothing in this Agreement shall be construed as:

          (1) a warranty or representation by Licensor as to the validity or scope of any Patent
Rights;

- 8 -

 

          (2) a warranty or representation that any product made, used, sold or otherwise
disposed of or any method practiced under any license granted under this Agreement is or will
be
free from infringement or claims of infringement of patents, copyrights or any other property

right of third parties; or

     (3) granting by implication, estoppel or otherwise any licenses or rights under
patents or other property rights of Licensor other than said Patent Rights, regardless
of
whether such patents are dominant or subordinate to any Patent Rights.

     (c) Licensor shall not be liable for any injury, losses or damages, including special or
consequential damages or losses incurred by Licensee, nor for claims for such damages, losses
or
other injuries asserted or levied against Licensee, arising out of Licensee’s practice of the
Grant
set forth in Article II of this Agreement. Licensee shall indemnify and hold harmless Licensor
and the U.S. government from any claims, actions, judgements or awards arising out of
Licensee’s practice of the Grant set forth in Article II, or out of Licensee’s manufacture,
use, sale
or disposition of Licensed Products.

     (d) Licensee shall, from and after the date of approval by the FDA of Licensee’s
application to commence Phase I/II Clinical Trials involving Licensed Products, have in effect
and shall maintain a liability insurance policy in an amount of at least One Million U.S.
Dollars
($1,000,000.00) coverage for claims arising out of the manufacture and use of Licensed
Products,
and the Practice of Licensed Process and Licensee shall have Licensor designated as a named
insured in said policy at no expense to Licensor. Licensee shall at the time this requirement
becomes effective, deliver to Licensor a Certificate of Insurance evidencing such liability
insurance policy and showing Licensor as a named insured.

- 9 -

 

     (e) Licensee shall, from and after the date of approval by the FDA of Licensee’s
application to commence Phase III Clinical Trials involving Licensed Products, have in effect and
shall thereafter maintain throughout the life of this Agreement and for five (5) years after this
Agreement is terminated, a liability insurance policy in an amount of at least Five Million U.S.
Dollars ($5,000,000.00) coverage for claims arising out of the manufacture, use or sale of Licensed
Products, and Licensee shall have Licensor designated as a named insured in said policy, at no
expense to Licensor. Licensee shall, prior to commencement of said Phase III Clinical Trials,
deliver to Licensor a Certificate of Insurance evidencing such liability insurance policy and
showing Licensor as a named insured. At each fifth anniversary of the effective date for the
$5,000,000.00 insurance requirement, Licensor shall review the insurance coverage required by this
Article and adjust the coverage, as necessary, to maintain the face value of the coverage within
five percent (5%) of the stated $5,000,000.00 adjusted in constant dollars using the effective date
of the $5,000,000.00 insurance requirement as the starting base for any such adjustment.

VIII — INFRINGEMENT OF LICENSOR’S PATENT RIGHTS BY THIRD PARTIES

     (a) Should Licensor or Licensee become aware of any infringement or alleged
infringement in the United States, its territories and possessions, of any of the Patent
Rights, that
party shall promptly notify the other party in writing of the name and address of the alleged
infringer and of the alleged acts of infringement, and provide any available evidence of the
alleged acts of infringement.

     (b) Neither Licensor nor Licensee shall be obligated to institute suit against any
alleged infringer of any of the Patent Rights.

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     (c) Licensee shall have the right to bring legal action against an alleged infringer of
any of the Patent Rights in its own name or in the joint name of the Licensee and Licensor. In
the event that Licensee elects to initiate an infringement action in its own name, or in the
joint
name of Licensee and Licensor, any and all expenses, judgments or sanctions incurred in
connection with such legal action shall be borne solely by Licensee. During the term of any
such
legal action, Licensee may withhold from any royalties due to Licensor an amount equal to the
expenses incurred by Licensee in pursuing the infringement action. Upon conclusion of any such
legal action, Licensee shall retain for itself, any and all monies or other benefits derived
from
such legal action, and shall immediately pay to Licensor any withheld royalties, that covered
expenses that were recovered by Licensee.

     (d) Licensor and Licensee hereby agree to cooperate with each other in the
prosecution of any legal infringement action or settlement discussions and each agrees to
provide
the other with all pertinent data and evidence which may be helpful in the prosecution of such
action of which it may have knowledge or which may be readily available to it without
incurring
substantial expense.

     (e) Should Licensee commence a suit under the provisions of this Article and
thereafter elect to abandon this suit, it shall give timely notice to the Licensor who may, if
it so
desires, continue prosecution of such suit, provided however that the sharing of expenses and
any
recovery in such continued suit shall be as agreed upon between Licensor and Licensee.

     (f) If, at any time during this Agreement, Licensor or Licensee shall be unable to
uphold the validity of any of the Patent Rights against any alleged infringer, Licensee shall
not
have or assert any damage claim or a claim for refund or reimbursement against Licensor.

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Excluded from this paragraph (f) shall be Licensor’s liability to indemnify Licensee for the
breach of those representations and warranties recited in the Preamble to this License Agreement.

IX — SUCCESSOR RIGHTS

     (a) The obligations of Licensee hereunder, including the obligations to make reports and pay
royalties, shall run in favor of the successors, assigns or other legal representatives of
Licensor.

     (b) Licensee’s rights under this Agreement and the license herein granted shall not be
assigned for the benefit of creditors of Licensee or otherwise, nor shall such rights or license
pass to any receiver in bankruptcy of Licensee’s assets, except for a person or corporation
succeeding to the entire business and good will of Licensee in the manufacture and sale of Licensed
Products as the result of a sale, consolidation, reorganization or otherwise, provided such person
or corporation shall, without delay, accept in writing the provisions of this Agreement and agree
to become in all respects bound thereby in the place and stead of Licensee. Licensee’s rights
under this Agreement and the license herein granted shall not be otherwise transferred without the
written consent of Licensor.

X — UNITED STATES GOVERNMENT EXPORT CONTROL REGULATIONS

     (a) The Export Control Regulations of the U.S. Department of Commerce prohibit, except under a
special validated license, the exportation from the United States of technical data relating to
certain commodities listed in the Regulations, unless the exporter has received certain written
assurance from the foreign importer. In order to facilitate the exchange of technical information
under this Agreement, Licensee therefor hereby gives its assurance to Licensor that it will comply
with all of the requirements of the U.S. Export Control Regulations.

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     (b) A final judicial determination of a violation of the U.S. Export Control laws or
regulations by Licensee shall constitute grounds for Licensor, in its sole discretion, to terminate
this license agreement. Failure to obtain any needed export control license may result in criminal
liability under the United States law.

XI — TERM AND TERMINATION

     (a) Subject to the termination rights set forth in Article XV(e) and this Article XI, this
License Agreement shall commence on the Effective Date and shall run through the Term.

     (b) If Licensee shall at any time default in the payment of any license fee or royalty or in
the making of any report hereunder, or shall commit any breach of any covenant herein contained,
except for the diligence requirements set forth in Article XV, and shall fail to remedy any such
default or breach within sixty (60) days after written notice thereof by Licensor, then Licensor
may, at its option, terminate the license and all other rights herein granted, by giving notice to
Licensee in writing to such effect.

     (c) This License Agreement may be terminated:

     (1) by Licensee any time after two years from the Effective Date of this Agreement. Under
this subparagraph (c), Licensee shall have the right to terminate the prospective effect of
the license hereunder by written notice given to the Licensor at least six (6) months prior to
the date when such termination is to become effective.

     (d) Any termination or expiration of this License Agreement shall not relieve Licensee from
its obligations under Article IV hereof to make a terminal report and maintain records, or from its
liability for payment of royalties or other License fees hereunder prior to the date of such
termination or expiration, and shall not prejudice the right of Licensor to recover any

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royalty or other sums or consideration due or accrued at the time of such termination or expiration
and shall not prejudice any cause of action or claim of Licensor accrued on account of any breach
or default by Licensee.

     (e) Any termination or expiration of this Agreement shall not prejudice the right of Licensor
to conduct a final audit of the records of Licensee in accordance with the provisions of Article IV
hereof.

XII — ADVERTISING

     Neither the granting of the license herein granted by Licensor nor the acceptance of the
license fee or royalties hereunder by Licensor shall constitute Licensor’s approval of, or
acquiescence in, advertising or other business practices of Licensee or Licensee’s sublicensees,
nor an approval of or acquiescence in any use of the corporate name of Licensor, or any use of the
name Brookhaven National Laboratory, or any use of the name(s) of the inventors of the Patent
Rights licensed, or of the names of any agencies of the U.S. Government, in connection with the
manufacture, advertising, use or sale of Licensed Products, and Licensor hereby expressly reserves
all rights of actions with respect thereto.

XIII — NOTICES

     (a) Any notice pursuant to this Agreement shall be sufficiently made or given on the date of
mailing if sent to a party by certified mail, postage prepaid, addressed to it at its address
below:

For Licensor:

Margaret C. Bogosian, Manager

Office of Intellectual Property and Sponsored Research

Brookhaven National Laboratory

Building No. 475D

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P.O. Box 5000

Upton, New York 11973-5000

For Licensee:

Patrick J. McEnany, President

Catalyst Pharmaceutical Partners, Inc.

Suite 234

220 Miracle Mile

Coral Gables, FL 33134

     Alternatively,
such notices may be delivered to such other address or addresses as either Licensor or Licensee, respectively, may later establish by written notice to the other.

     (b) Any payments due from Licensee to Licensor hereunder shall be made as follows:

	 	 	 	 	 
	 

	 	CHECK PAYABLE TO:
	 	Brookhaven Science Associates, LLC
	 
	 	 	 	 
	 

	 	CHECK MAILED TO:
	 	Margaret C. Bogosian
	 

	 	 	 	Manager
	 

	 	 	 	Office of Intellectual Property
and Sponsored Research
	 

	 	 	 	Brookhaven National Laboratory
	 

	 	 	 	Bldg. 475D, P.O. Box 5000
	 

	 	 	 	Upton, NY 11973-5000

XIV  — APPLICABLE LAW

     This Agreement shall be construed, interpreted and applied in accordance with the laws of the
United States and of the State of New York.

XV — LICENSEE’S DILIGENCE

     (a) Commencing at the time the FDA accepts Licensee’s IND for the use of GVG in the treatment
of human cocaine addiction and ending at the time the FDA grants approval to sell any Licensed
Product, and/or practice Licensed Process, the Licensee shall consult with Licensor by telephone
not less frequently than quarterly with regard to drug development steps taken and

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progress made toward the objective of gaining FDA marketing approval for any Licensed Product.
In this regard, Licensee shall make reasonable effort to be responsive to Licensor’s inquiries
regarding such drug development activities.

     (b) Within six (6) months of the date the FDA accepts Licensee’s IND for the use of GVG in the
treatment of human cocaine addiction for a study other than a phase I (drug interaction study),
Licensee will procure sufficient GVG or Sabril drug and placebo and provide such drug and placebo
to the clinical sites conducting the clinical trials under Licensee’s IND.

     (c) If Licensee fails to meet any or all of the diligence requirements set forth in paragraphs
(a) and (b) above, Licensor shall provide Licensee with written notice of such failure.
Licensee will have three months after receipt of said notice to cure said failure. Licensor will
extend said cure period for an additional three months upon the presentation by Licensee of
reasonable evidence explaining its inability to effect a cure within the initial three month
period.

     (d) Failure of Licensee to cure a failure within the applicable cure period pursuant to
paragraph (c) above shall be grounds for Licensor to terminate the license granted in this License
Agreement. Licensor can terminate this Agreement for Licensee’s failure to meet the diligence
requirements by delivery to Licensee of a Termination Notice.

XVI — PREFERENCE FOR UNITED STATES INDUSTRY

     Consistent with the provisions of 35 USC 204, Licensee agrees that any products embodying
technology covered by the Patent Rights or produced through the use of technology covered by the
Patent Rights that are to be marketed in the United States will be substantially manufactured in
the United States.

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XVII — ENTIRE UNDERSTANDING

     This Agreement amends and restates the License Agreement between the parties dated March 20,
2002, (the “Old Agreement”) which Old Agreement is
superceded by the terms of this Agreement as of
the Effective Date. This Agreement constitutes the entire understanding between the parties hereto
with respect to the subject matter hereof, and any modification of this Agreement shall be in
writing and shall be signed by a duly authorized representative of each party. There are no
understandings, representations or warranties with respect to the subject matter hereof, except as
herein expressly set forth, and no rights are granted hereunder except as expressly set forth
herein.

     The parties hereto have duly executed this Agreement.

LICENSOR:

     BROOKHAVEN SCIENCE ASSOCIATES, LLC

	 	 	 	 	 
	By

	 	/s/ Margaret C. Bogosian	 	 
	 

	 	 
	 	 
	 

	 	Margaret C. Bogosian	 	 
	Title Manager, Office of Intellectual Property
&

         Sponsored Research	 	 
	Date 3/31/06	 	 

LICENSEE:

     CATALYST PHARMACEUTICAL PARTNERS, INC.

	 	 	 	 	 
	By

	 	/s/ Patrick J. McEnany
 

	 	 
	Title C.E.O.	 	 
	Date 4/3/06	 	 

- 17 -EXHIBIT 10.4 STOCK OPTION AGREEMENTS/PATRICK J. MC

 

Exhibit 10.4

NON-QUALIFIED STOCK OPTION AGREEMENT

          THIS
AGREEMENT, entered into on July 1, 2002 (the “Grant
Date”), is made by and between Catalyst Pharmaceutical Partners, Inc., a Florida corporation
(“Catalyst”) and Patrick J. McEnany, an employee of Catalyst, hereinafter referred to as
“Optionee”:

          WHEREAS, Catalyst is desirous of increasing the incentive of the Optionee whose contributions
are important to the continued success of Catalyst.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, Catalyst hereby grants the
Optionee the Non-qualified Stock Option provided for herein, upon the following terms and
conditions:

ARTICLE I

DEFINITIONS

          Whenever the following terms are used in this Agreement, they shall have the meaning specified
below unless the context clearly indicates to the contrary. The masculine pronoun shall include
the feminine and neuter, and the singular the plural, where the context so indicates.

Section 1.1 Board

          “Board” shall mean the Board of Directors of Catalyst.

Section 1.2 Cause

          “Cause” shall mean (i) failure or refusal of the Optionee to perform the duties and
responsibilities that Catalyst requires to be performed by him, (ii) gross negligence or willful
misconduct by the Optionee in the performance of his duties, (iii) commission by the Optionee of an
act of dishonesty affecting Catalyst, or the commission of an act constituting common law fraud or
a felony, or (iv) the Optionee’s commission of an act (other than the good faith exercise of his
business judgment in the exercise of his responsibilities) resulting in material damages to
Catalyst; provided, however, that if the Optionee and Catalyst have entered into an employment
agreement which defines “cause” for purposes of such agreement, “cause” shall be defined in
accordance with such agreement. The Committee, in its sole and absolute discretion, shall
determine whether a termination of employment is for Cause.

Section 1.3 Common Stock

          “Common Stock” shall mean the common stock of Catalyst, par value $.01 per share.

 

 

Section 1.4 Code

          “Code” shall mean the Internal Revenue Code of 1986, as amended.

Section 1.5 Committee

          “Committee” shall mean the Compensation Committee of the Board, or another committee of the
Board, to administer the grant of Options.

Section 1.6 Director

          “Director” shall mean a member of the Board.

Section 1.7 Exchange Act

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

Section 1.8 Fair Market Value

          “Fair Market Value” of a share of Common Stock as of a given date shall be (a) the closing
price of a share of Common Stock on the principal exchange on which shares of Common Stock are then
trading, if any (or as reported on any composite index which includes such principal exchange), on
the trading day previous to such date, or if shares of Common Stock were not traded on the trading
day previous to such date, then on the next preceding date on which a trade occurred; (b) if Common
Stock is not traded on an exchange but is quoted on The Nasdaq National Market, The Nasdaq SmallCap
Market or a successor quotation system, the last sales price for the Common Stock on the trading
day previous to such date as reported by The Nasdaq National Market, The Nasdaq SmallCap Market or
such successor quotation system; or (c) if Common Stock is not publicly traded on an exchange and
not quoted on The Nasdaq National Market, The Nasdaq SmallCap Market or a successor quotation
system, the fair market value of a share of Common Stock as established by the Committee acting in
good faith.

Section 1.9 Grant Date

          “Grant Date” shall mean November 1, 2002.

Section 1.10 Option

          “Option” shall mean the non-qualified stock option to purchase Common Stock of Catalyst
granted under this Agreement.

Section 1.11 Rule 16b-3

          “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be
amended from time to time.

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Section 1.12 Securities Act

          “Securities Act” shall mean the Securities Act of 1933, as amended.

Section 1.13 Stock Option Administrator

          “Stock Option Administrator” shall mean the officer designated, from time to time, by the
Committee to serve as the Stock Option Administrator and any agents of the Stock Option
Administrator.

Section 1.14 Termination of Employment

          “Termination of Employment” shall mean the time when the employee-employer relationship
between the Optionee and Catalyst is terminated for any reason, with or without Cause, including,
but not by way of limitation, a termination by resignation, discharge, death, disability or
retirement; but excluding (i) terminations where there is a simultaneous reemployment or continuing
employment of the Optionee by Catalyst, (ii) at the discretion of the Committee, terminations which
result in a temporary severance of the employee-employer relationship, and (iii) at the discretion
of the Committee, terminations which are followed by the simultaneous establishment of a consulting
relationship by Catalyst with the former employee. The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to Termination of Employment,
including, but not by way of limitation, the question of whether a Termination of Employment
resulted from a discharge for Cause, and all questions of whether a particular leave of absence
constitutes a Termination of Employment. Notwithstanding any other provision of this Agreement,
Catalyst has an absolute and unrestricted right to terminate the Optionee’s employment at any time
for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise
in writing.

ARTICLE II

GRANT OF OPTION

Section 2.1 Grant of Option

          In consideration of the Optionee’s agreement to remain in the employ of Catalyst and for other
good and valuable consideration, on the date hereof Catalyst irrevocably grants to the Optionee the
option to purchase any part or all of an aggregate of 250,000 shares of its Common Stock upon the
terms and conditions set forth in this Agreement.

Section 2.2 Purchase Price

          The purchase price of the shares of Common Stock covered by the Option shall be $1.00 per
share without commission or other charge.

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Section 2.3 Consideration to Catalyst

          In consideration of the granting of this Option by Catalyst, the Optionee agrees to render
faithful and efficient services to Catalyst, with such duties and responsibilities as Catalyst
shall from time to time prescribe. Nothing in this Agreement shall confer upon the Optionee any
right to continue in the employ of Catalyst, or as a director of Catalyst, or shall interfere with
or restrict in any way the rights of Catalyst, which are hereby expressly reserved, to discharge
the Optionee at any time for any reason whatsoever, with or without Cause.

ARTICLE III

PERIOD OF EXERCISABILITY

Section 3.1 Commencement of Exercisability

          (a) Subject to subsection (b) and Sections 3.3 and 3.4, the Option shall become exercisable in
cumulative installments as follows:

          (i) The first installment shall consist of one-third of the shares of Common Stock
covered by the Option and shall become exercisable on the six month anniversary of the Grant
Date.

          (ii) The second installment shall consist of one-third of the shares of Common Stock
covered by the Option and shall become exercisable on the eighteen month anniversary of the
Grant Date.

          (iii) The third installment shall consist of one-third of the shares of Common Stock
covered by the Option and shall become exercisable on the twenty-four month anniversary of
the Grant Date.

          (b) Except as provided in Section 3.4(b) below, no portion of the Option which is
unexercisable at Termination of Employment shall thereafter become exercisable.

Section 3.2 Duration of Exercisability

          The installments provided for in Section 3.1 are cumulative. Each such installment which
becomes exercisable pursuant to Section 3.1 shall remain exercisable until it becomes unexercisable
under Section 3.3.

Section 3.3 Expiration of Option

          The Option may not be exercised to any extent by anyone after the first to occur of the
following events:

          (a) The expiration of ten (10) years from the date the Option was granted; or

4

 

          (b) The expiration of ninety (90) days from the date of the Optionee’s Termination of
Employment, unless such Termination of Employment results from his death, his disability (within
the meaning of Section 22(e)(3) of the Code) or his being discharged for Cause; or

          (c) The date specified in Section 3.3(a) above in the event that the Optionee’s Termination of
Employment results from his death; or

          (d) The expiration of one (1) year from the date of the Optionee’s Termination of Employment
in the event such Termination of Employment results from his disability (within the meaning of
Section 22(e)(3) of the Code); or

          (e) The date of Optionee’s Termination of Employment, as applicable, in the event that the
Termination of Employment results from his being discharged for Cause.

Section 3.4 Acceleration of Exercisability 

          In the event of the Optionee’s Termination of Employment due to the Optionee’s death,
notwithstanding any vesting schedule provided for hereunder, this Option shall become immediately
vested and, to the extent applicable, exercisable for such period of time specified in Section
3.3(a).

ARTICLE IV

EXERCISE OF OPTION

Section 4.1 Persons Eligible to Exercise

          During the lifetime of the Optionee, only the Optionee, or any person to whom the Option may
be transferred pursuant to Section 6.2 below, may exercise the Option or any portion thereof.
After the death of the Optionee, any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3, be exercised by his personal representative or
by any person empowered to do so under the deceased Optionee’s will or under the then applicable
laws of descent and distribution.

Section 4.2 Partial Exercise

          Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be
exercised in whole or in part at any time prior to the time when the Option or portion thereof
becomes unexercisable under Section 3.3; provided, however, that each partial
exercise shall be for not less than one hundred (100) shares of Common Stock (or the minimum
installment set forth in Section 3.1, if a smaller number of shares of Common Stock) and shall be
for whole shares only.

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Section 4.3 Manner of Exercise

          The Option, or any exercisable portion thereof, may be exercised solely by delivery to the
Stock Option Administrator or an agent of the Stock Option Administrator, as designated by the
Committee from time to time, of all of the following prior to the time when the Option or such
portion becomes unexercisable under Section 3.3:

          (a) A written notice complying with the applicable rules established by the Committee stating
that the Option, or a portion thereof, is exercised. The notice shall be signed by the Optionee or
other person then entitled to exercise the Option or such portion; and

     (b)      (i) payment in cash or in cash equivalents equal to the product of the per share
exercise price times the number of shares of Common Stock with respect to which the option
or portion is being exercised (the “Aggregate Exercise Price”);

          (ii) to the extent permitted by applicable law and agreed to by the Committee in its
sole and absolute discretion, through the tender to Catalyst of shares of Common Stock,
which shares shall be valued, for purposes of determining the extent to which the Exercise
Price has been paid thereby, at their Fair Market Value on the date of exercise;

          (iii) to the extent permitted by applicable law and agreed to by the Committee in its
sole and absolute discretion, by delivering a written direction to Catalyst that the Option
be exercised pursuant to a “cashless” exercise/sale procedure (pursuant to which funds to
pay for exercise of the Option are delivered to Catalyst by a broker upon receipt of stock
certificates from Catalyst) or a “cashless” exercise/loan procedure (pursuant to which the
participants would obtain a margin loan from a broker to fund the exercise) through a
licensed broker acceptable to Catalyst whereby the stock certificate or certificates for the
            shares of Common Stock for which the Option is exercised will be delivered to such broker as
the agent for the individual exercising the Option and the broker will deliver to Catalyst
cash (or cash equivalents acceptable to Catalyst) equal to the purchase price for the shares
of Common Stock purchased pursuant to the exercise of the Option plus the amount (if any) of
federal and other taxes that Catalyst may, in its judgment, be required to withhold with
respect to the exercise of the Option;

          (iv) to the extent permitted by applicable law and agreed to by the Committee in its
sole and absolute discretion, by the delivery of a promissory note of the participant to
Catalyst on such terms as the Committee shall specify in its sole and absolute discretion;
or

          (v) by a combination of the methods described in clauses (i), (ii), (iii) and (iv).

          (c) A bona fide written representation and agreement, in a form satisfactory to the Committee,
signed by the Optionee or other person then entitled to exercise such Option or portion,
stating that the shares of Common Stock are being acquired for his own account, for investment
and without any present intention of distributing or reselling said shares or any of

6

 

them except as
may be permitted under the Securities Act and then applicable rules and regulations thereunder, and
that the Optionee or other person then entitled to exercise such Option or portion will indemnify
Catalyst against and hold it free and harmless from any loss, damage, expense or liability
resulting to Catalyst if any sale or distribution of the shares of Common Stock by such person is
contrary to the representation and agreement referred to above. The Committee may, in its absolute
discretion, take whatever additional actions it deems appropriate to insure the observance and
performance of such representation and agreement and to effect compliance with the Securities Act
and any other federal or state securities laws or regulations. Without limiting the generality of
the foregoing, the Committee may require an opinion of counsel acceptable to it to the effect that
any subsequent transfer of shares of Common Stock acquired on an Option exercise does not violate
the Securities Act, and may issue stop-transfer orders covering such shares. Share certificates
evidencing stock issued on exercise of this Option shall bear an appropriate legend referring to
the provisions of this subsection (c) and the agreements herein. The written representation and
agreement referred to in the first sentence of this subsection (c) shall, however, not be required
if the shares of Common Stock to be issued pursuant to such exercise have been registered under the
Securities Act, and such registration is then effective in respect of such shares; and

          (d) Full payment to Catalyst (or other employer corporation) of all amounts which, under
federal, state or local tax law, it is required to withhold upon exercise of the Option; and

          (e) In the event the Option or any portion thereof shall be exercised pursuant to Section 4.1
by any person or persons other than the Optionee, appropriate proof of the right of such person or
persons to exercise the Option.

Section 4.4 Conditions to Issuance of Stock Certificates

          The shares of Common Stock deliverable upon the exercise of the Option, or any portion
thereof, may be either previously authorized but unissued shares or issued shares which have then
been reacquired by Catalyst. Such shares of Common Stock shall be fully paid and nonassessable.
Catalyst shall not be required to issue or deliver any certificate or certificates for shares of
stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of
the following conditions:

          (a) The admission of such shares of Common Stock to listing on all stock exchanges on which
such class of stock is then listed; and

          (b) The completion of any registration or other qualification of such shares of Common Stock
under any state or federal law or under rulings or regulations of the Securities and Exchange
Commission or of any other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; and

          (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee shall, in its absolute discretion, determine to be necessary or
advisable; and

7

 

          (d) The receipt by Catalyst of full payment for such shares of Common Stock, including payment
of all amounts which, under federal, state or local tax law, Catalyst (or other employer
corporation) is required to withhold upon exercise of the Option; and

          (e) The lapse of such reasonable period of time following the exercise of the Option as the
Committee may from time to time establish for reasons of administrative convenience.

Section 4.5 Rights as Shareholder

          The holder of the Option shall not be, nor have any of the rights or privileges of, a
shareholder of Catalyst in respect of any shares of Common Stock purchasable upon the exercise of
any part of the Option unless and until certificates representing such shares of Common Stock shall
have been issued by Catalyst to such holder.

ARTICLE V

EFFECT OF CHANGES IN CAPITALIZATION

Section 5.1 Recapitalization

          If the outstanding shares of Common Stock of Catalyst are increased or decreased or changed
into or exchanged for a different number or kind of shares or other securities of Catalyst by
reason of any recapitalization, reclassification, reorganization (other than as described in
Section 5.2 below), stock split, reverse split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock of Catalyst, or other increase or decrease
in such shares effected without receipt of consideration by Catalyst, an appropriate and
proportionate adjustment shall be made by the Committee in the number and kind of shares of Common
Stock issuable upon exercise of this Option, and in the purchase price per share of this Option.

Section 5.2 Reorganization or Change in Control

          In the event of a Reorganization (as defined below) of Catalyst or a Change in Control (as
defined below) of Catalyst, this Option shall become immediately vested and, to the extent
applicable, exercisable for such period of time specified in Section 3.3(a). For purposes of this
Agreement a “Reorganization” of an entity shall be deemed to occur if such entity is a party to a
merger, consolidation, reorganization, or other business combination with one or more entities in
which said entity is not the surviving entity, if such entity disposes of substantially all of its
assets, or if such entity is a party to a spin-off, split-off, split-up or similar transaction;
provided, however, that the transaction shall not be a Reorganization if Catalyst, any parent or
any subsidiary is the surviving entity. For purposes of this Agreement, a “Change in Control”
shall be deemed to occur if any person or group of persons shall acquire direct or indirect beneficial
ownership (whether as a result of stock
ownership, revocable or irrevocable proxies or otherwise) of securities of an entity, pursuant to
one or more transactions, such that after consummation and as a result of such transaction, such
person has direct or indirect beneficial

8

 

ownership of 50% or more of the total combined voting
power of the Common Stock. For purposes of this Agreement, a “person” shall mean any person,
corporation, partnership, joint venture or other entity or any group (as such term is defined for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),
other than a parent or subsidiary, and “beneficial ownership” shall be determined in accordance
with Rule 13d-3 under the Exchange Act.

Section 5.3 Dissolution or Liquidation

          Upon the dissolution or liquidation of Catalyst, this Option shall terminate. In the event of
any termination of this Option under this Section 5.3, Optionee shall have the right, immediately
prior to the occurrence of such termination and during such reasonable period as the Committee in
its sole discretion shall determine and designate, to exercise this Option in whole or in part,
whether or not this Option was otherwise exercisable at the time such termination occurs and
without regard to any vesting or other limitation on exercise imposed pursuant to Article III
above.

Section 5.4 Adjustments

          Adjustments under this Article V related to stock or securities of Catalyst shall be made by
the Committee, whose determination in that respect shall be final, binding, and conclusive. No
fractional shares of Common Stock or units of other securities shall be issued pursuant to any such
adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case
by rounding downward to the nearest whole share or unit.

Section 5.5 No Limitations

          The grant of this Option hereunder shall not affect or limit in any way the right or power of
Catalyst to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure or to merge, consolidate, dissolve or liquidate, or to sell or transfer all or
any part of its business or assets.

9

 

ARTICLE VI

OTHER PROVISIONS

Section 6.1 Administration

          All actions taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon the Optionee, Catalyst and all other interested persons. No
member of the Committee shall be personally liable for any action, determination or interpretation
made in good faith with respect to the Option. In its absolute discretion, the Board may at any
time and from time to time exercise any and all rights and duties of the Committee under the Plan
and this Agreement except with respect to matters which under Rule 16b-3 or Section 162(m) of the
Code, or any regulations or rules issued thereunder, are required to be determined in the sole
discretion of the Committee.

Section 6.2 Option Not Transferable

          This Option shall not be assignable or transferable by the Optionee, other than by will or the
laws of descent and distribution; provided, however, that this Option may be transferred or
assigned to (i) family members or entities (including trusts) established for the benefit of the
Optionee or the Optionee’s family members or (ii) any other person, as permitted by applicable
securities law. Any Option assigned or transferred pursuant to this Section 6.2 shall continue to
be subject to the same terms and conditions as were applicable to the Option immediately before the
transfer; provided, however, that any Option transferred for value may not be exercised under any
Registration Statement on Form S-8 and upon exercise of such transferred Option the holder will
only be entitled to receive shares of restricted stock that have not been registered under the
Securities Act of 1933.

Section 6.3 Shares to Be Reserved

          Catalyst shall at all times during the term of the Option reserve and keep available such
number of shares of Common Stock as will be sufficient to satisfy the requirements of this
Agreement.

Section 6.4 Notices

          Any notice to be given under the terms of this Agreement to Catalyst shall be addressed to
Catalyst in care of the officer designated as the Stock Option Administrator from time to time, and
any notice to be given to the Optionee shall be addressed to him at the address given beneath his
signature hereto. By a notice given pursuant to this Section 6.4, either party may hereafter
designate a different address for notices to be given to him. Any notice which is required to be
given to the Optionee shall, if the Optionee is then deceased, be given to the Optionee’s personal
representative if such representative has previously informed Catalyst of his status and address by
written notice under this Section 6.4. Any notice shall be deemed duly given when enclosed in a
properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a
post office or branch post office regularly maintained by the United

10

 

States Postal Service;
provided, however, that any notice to be
given by the Optionee relating to the exercise of the Option or any portion thereof shall be
deemed duly given upon receipt by the Stock Option Administrator or his office.

Section 6.5 Titles

          Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

Section 6.6 Construction

          This Agreement shall be administered, interpreted and enforced under the internal laws of the
State of Florida without regard to conflicts of laws thereof.

Section 6.7 Conformity to Securities Laws

          The Optionee acknowledges that this Agreement is intended to conform to the extent necessary
with all provisions of the Securities Act and the Exchange Act and any and all regulations and
rules promulgated by the Securities and Exchange Commission thereunder, including, without
limitation, the applicable exemptive conditions of Rule 16b-3. Notwithstanding anything herein to
the contrary, the Option is granted and may be exercised, only in such a manner as to conform to
such laws, rules and regulations. To the extent permitted by applicable law, this Agreement shall
be deemed amended to the extent necessary to conform to such laws, rules and regulations.

Section 6.8 Amendments

          This Agreement may be amended without the consent of the Optionee provided that such amendment
would not impair any rights of the Optionee under this Agreement. No amendment of this Agreement
shall, without the consent of the Optionee, impair any rights of the Optionee under this Agreement.

11

 

          IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

	 	 	 	 	 
	 	CATALYST PHARMACEUTICAL PARTNERS, INC.

 	 
	 	By:  	/s/ Hubert Huckel
 	 
	 	 	Name:  	Hubert Huckel 	 
	 	 	Title:  	Chairman 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Patrick J. McEnany
 	 
	 	Optionee 	 
	 	 	 
	 

12

 

NON-QUALIFIED STOCK OPTION AGREEMENT

          THIS AGREEMENT, entered into on March 4, 2005 (the “Grant Date”), is made by and between
Catalyst Pharmaceutical Partners, Inc., a Florida corporation (“Catalyst”) and Patrick J. McEnany,
an employee of Catalyst, hereinafter referred to as “Optionee”:

          WHEREAS, Catalyst is desirous of increasing the incentive of the Optionee whose contributions
are important to the continued success of Catalyst.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, Catalyst hereby grants the
Optionee the Non-qualified Stock Option provided for herein, upon the following terms and
conditions:

ARTICLE I

DEFINITIONS

          Whenever the following terms are used in this Agreement, they shall have the meaning specified
below unless the context clearly indicates to the contrary. The masculine pronoun shall include
the feminine and neuter, and the singular the plural, where the context so indicates.

Section 1.1 Board

          “Board” shall mean the Board of Directors of Catalyst.

Section 1.2 Cause

          “Cause” shall mean (i) failure or refusal of the Optionee to perform the duties and
responsibilities that Catalyst requires to be performed by him, (ii) gross negligence or willful
misconduct by the Optionee in the performance of his duties, (iii) commission by the Optionee of an
act of dishonesty affecting Catalyst, or the commission of an act constituting common law fraud or
a felony, or (iv) the Optionee’s commission of an act (other than the good faith exercise of his
business judgment in the exercise of his responsibilities) resulting in material damages to
Catalyst; provided, however, that if the Optionee and Catalyst have entered into an employment
agreement which defines “cause” for purposes of such agreement, “cause” shall be defined in
accordance with such agreement. The Committee, in its sole and absolute discretion, shall
determine whether a termination of employment is for Cause.

Section 1.3 Common Stock

          “Common Stock” shall mean the common stock of Catalyst, par value $.01 per share.

 

 

Section 1.4 Code

          “Code” shall mean the Internal Revenue Code of 1986, as amended.

Section 1.5 Committee

          “Committee” shall mean the Compensation Committee of the Board, or another committee of the
Board, to administer the grant of Options.

Section 1.6 Director

          “Director” shall mean a member of the Board.

Section 1.7 Exchange Act

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

Section 1.8 Fair Market Value

          “Fair Market Value” of a share of Common Stock as of a given date shall be (a) the closing
price of a share of Common Stock on the principal exchange on which shares of Common Stock are then
trading, if any (or as reported on any composite index which includes such principal exchange), on
the trading day previous to such date, or if shares of Common Stock were not traded on the trading
day previous to such date, then on the next preceding date on which a trade occurred; (b) if Common
Stock is not traded on an exchange but is quoted on The Nasdaq National Market, The Nasdaq SmallCap
Market or a successor quotation system, the last sales price for the Common Stock on the trading
day previous to such date as reported by The Nasdaq National Market, The Nasdaq SmallCap Market or
such successor quotation system; or (c) if Common Stock is not publicly traded on an exchange and
not quoted on The Nasdaq National Market, The Nasdaq SmallCap Market or a successor quotation
system, the fair market value of a share of Common Stock as established by the Committee acting in
good faith.

Section 1.9 Grant Date

          “Grant Date” shall mean March 4, 2005.

Section 1.10 Option

          “Option” shall mean the non-qualified stock option to purchase Common Stock of Catalyst
granted under this Agreement.

Section 1.11 Rule 16b-3

          “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be
amended from time to time.

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Section 1.12 Securities Act

          “Securities Act” shall mean the Securities Act of 1933, as amended.

Section 1.13 Stock Option Administrator

          “Stock Option Administrator” shall mean the officer designated, from time to time, by the
Committee to serve as the Stock Option Administrator and any agents of the Stock Option
Administrator.

Section 1.14 Termination of Employment

          “Termination of Employment” shall mean the time when the employee-employer relationship
between the Optionee and Catalyst is terminated for any reason, with or without Cause, including,
but not by way of limitation, a termination by resignation, discharge, death, disability or
retirement; but excluding (i) terminations where there is a simultaneous reemployment or continuing
employment of the Optionee by Catalyst, (ii) at the discretion of the Committee, terminations which
result in a temporary severance of the employee-employer relationship, and (iii) at the discretion
of the Committee, terminations which are followed by the simultaneous establishment of a consulting
relationship by Catalyst with the former employee. The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to Termination of Employment,
including, but not by way of limitation, the question of whether a Termination of Employment
resulted from a discharge for Cause, and all questions of whether a particular leave of absence
constitutes a Termination of Employment. Notwithstanding any other provision of this Agreement,
Catalyst has an absolute and unrestricted right to terminate the Optionee’s employment at any time
for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise
in writing.

ARTICLE II

GRANT OF OPTION

Section 2.1 Grant of Option

          In consideration of the Optionee’s agreement to remain in the employ of Catalyst and for other
good and valuable consideration, on the date hereof Catalyst irrevocably grants to the Optionee the
option to purchase any part or all of an aggregate of 250,000 shares of its Common Stock upon the
terms and conditions set forth in this Agreement.

Section 2.2 Purchase Price

          The purchase price of the shares of Common Stock covered by the Option shall be $1.00 per
share without commission or other charge.

3

 

Section 2.3 Consideration to Catalyst

          In consideration of the granting of this Option by Catalyst, the Optionee agrees to render
faithful and efficient services to Catalyst, with such duties and responsibilities as Catalyst
shall from time to time prescribe. Nothing in this Agreement shall confer upon the Optionee any
right to continue in the employ of Catalyst, or as a director of Catalyst, or shall interfere with
or restrict in any way the rights of Catalyst, which are hereby expressly reserved, to discharge
the Optionee at any time for any reason whatsoever, with or without Cause.

ARTICLE III

PERIOD OF EXERCISABILITY

Section 3.1 Commencement of Exercisability

          The Option shall vest and become exercisable on the Grant Date.

Section 3.2 Duration of Exercisability

          The Option shall remain exercisable until it becomes unexercisable under Section 3.3.

Section 3.3 Expiration of Option

          The Option may not be exercised to any extent by anyone after the first to occur of the
following events:

          (a) The expiration of ten (10) years from the date the Option was granted; or

          (b) The expiration of ninety (90) days from the date of the Optionee’s Termination of
Employment, unless such Termination of Employment results from his death, his disability (within
the meaning of Section 22(e)(3) of the Code) or his being discharged for Cause; or

          (c) The date specified in Section 3.3(a) above in the event that the Optionee’s Termination of
Employment results from his death; or

          (d) The expiration of one (1) year from the date of the Optionee’s Termination of Employment
in the event such Termination of Employment results from his disability (within the meaning of
Section 22(e)(3) of the Code); or

          (e) The date of Optionee’s Termination of Employment, as applicable, in the event that the
Termination of Employment results from his being discharged for Cause.

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Section 3.4 Acceleration of Exercisability 

          In the event of the Optionee’s Termination of Employment due to the Optionee’s death,
notwithstanding any vesting schedule provided for hereunder, this Option shall become immediately
vested and, to the extent applicable, exercisable for such period of time specified in Section
3.3(a).

ARTICLE IV

EXERCISE OF OPTION

Section 4.1 Persons Eligible to Exercise

          During the lifetime of the Optionee, only the Optionee, or any person to whom the Option may
be transferred pursuant to Section 6.2 below, may exercise the Option or any portion thereof.
After the death of the Optionee, any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3, be exercised by his personal representative or
by any person empowered to do so under the deceased Optionee’s will or under the then applicable
laws of descent and distribution.

Section 4.2 Partial Exercise

          Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be
exercised in whole or in part at any time prior to the time when the Option or portion thereof
becomes unexercisable under Section 3.3; provided, however, that each partial
exercise shall be for not less than one hundred (100) shares of Common Stock (or the minimum
installment set forth in Section 3.1, if a smaller number of shares of Common Stock) and shall be
for whole shares only.

Section 4.3 Manner of Exercise

          The Option, or any exercisable portion thereof, may be exercised solely by delivery to the
Stock Option Administrator or an agent of the Stock Option Administrator, as designated by the
Committee from time to time, of all of the following prior to the time when the Option or such
portion becomes unexercisable under Section 3.3:

          (a) A written notice complying with the applicable rules established by the Committee stating
that the Option, or a portion thereof, is exercised. The notice shall be signed by the Optionee or
other person then entitled to exercise the Option or such portion; and

     (b)      (i) payment in cash or in cash equivalents equal to the product of the per share
exercise price times the number of shares of Common Stock with respect to which the option
or portion is being exercised (the “Aggregate Exercise Price”);

          (ii) to the extent permitted by applicable law and agreed to by the Committee in its
sole and absolute discretion, through the tender to Catalyst of shares of
Common Stock, which shares shall be valued, for purposes of determining the extent to

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which the Exercise Price has been paid thereby, at their Fair Market Value on the date of
exercise;

          (iii) to the extent permitted by applicable law and agreed to by the Committee in its
sole and absolute discretion, by delivering a written direction to Catalyst that the Option
be exercised pursuant to a “cashless” exercise/sale procedure (pursuant to which funds to
pay for exercise of the Option are delivered to Catalyst by a broker upon receipt of stock
certificates from Catalyst) or a “cashless” exercise/loan procedure (pursuant to which the
participants would obtain a margin loan from a broker to fund the exercise) through a
licensed broker acceptable to Catalyst whereby the stock certificate or certificates for the
            shares of Common Stock for which the Option is exercised will be delivered to such broker as
the agent for the individual exercising the Option and the broker will deliver to Catalyst
cash (or cash equivalents acceptable to Catalyst) equal to the purchase price for the shares
of Common Stock purchased pursuant to the exercise of the Option plus the amount (if any) of
federal and other taxes that Catalyst may, in its judgment, be required to withhold with
respect to the exercise of the Option;

          (iv) to the extent permitted by applicable law and agreed to by the Committee in its
sole and absolute discretion, by the delivery of a promissory note of the participant to
Catalyst on such terms as the Committee shall specify in its sole and absolute discretion;
or

          (v) by a combination of the methods described in clauses (i), (ii), (iii) and (iv).

          (c) A bona fide written representation and agreement, in a form satisfactory to the Committee,
signed by the Optionee or other person then entitled to exercise such Option or portion, stating
that the shares of Common Stock are being acquired for his own account, for investment and without
any present intention of distributing or reselling said shares or any of them except as may be
permitted under the Securities Act and then applicable rules and regulations thereunder, and that
the Optionee or other person then entitled to exercise such Option or portion will indemnify
Catalyst against and hold it free and harmless from any loss, damage, expense or liability
resulting to Catalyst if any sale or distribution of the shares of Common Stock by such person is
contrary to the representation and agreement referred to above. The Committee may, in its absolute
discretion, take whatever additional actions it deems appropriate to insure the observance and
performance of such representation and agreement and to effect compliance with the Securities Act
and any other federal or state securities laws or regulations. Without limiting the generality of
the foregoing, the Committee may require an opinion of counsel acceptable to it to the effect that
any subsequent transfer of shares of Common Stock acquired on an Option exercise does not violate
the Securities Act, and may issue stop-transfer orders covering such shares. Share certificates
evidencing stock issued on exercise of this Option shall bear an appropriate legend referring to
the provisions of this subsection (c) and the agreements herein. The written representation and
agreement referred to in the first sentence of this subsection (c) shall, however, not be required
if the shares of Common Stock to be issued pursuant to such exercise have
been registered under the Securities Act, and such registration is then effective in respect
of such shares; and

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          (d) Full payment to Catalyst (or other employer corporation) of all amounts which, under
federal, state or local tax law, it is required to withhold upon exercise of the Option; and

          (e) In the event the Option or any portion thereof shall be exercised pursuant to Section 4.1
by any person or persons other than the Optionee, appropriate proof of the right of such person or
persons to exercise the Option.

Section 4.4 Conditions to Issuance of Stock Certificates

          The shares of Common Stock deliverable upon the exercise of the Option, or any portion
thereof, may be either previously authorized but unissued shares or issued shares which have then
been reacquired by Catalyst. Such shares of Common Stock shall be fully paid and nonassessable.
Catalyst shall not be required to issue or deliver any certificate or certificates for shares of
stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of
the following conditions:

          (a) The admission of such shares of Common Stock to listing on all stock exchanges on which
such class of stock is then listed; and

          (b) The completion of any registration or other qualification of such shares of Common Stock
under any state or federal law or under rulings or regulations of the Securities and Exchange
Commission or of any other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; and

          (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee shall, in its absolute discretion, determine to be necessary or
advisable; and

          (d) The receipt by Catalyst of full payment for such shares of Common Stock, including payment
of all amounts which, under federal, state or local tax law, Catalyst (or other employer
corporation) is required to withhold upon exercise of the Option; and

          (e) The lapse of such reasonable period of time following the exercise of the Option as the
Committee may from time to time establish for reasons of administrative convenience.

Section 4.5 Rights as Shareholder

          The holder of the Option shall not be, nor have any of the rights or privileges of, a
shareholder of Catalyst in respect of any shares of Common Stock purchasable upon the exercise of
any part of the Option unless and until certificates representing such shares of Common Stock shall
have been issued by Catalyst to such holder.

ARTICLE V

EFFECT OF CHANGES IN CAPITALIZATION

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Section 5.1 Recapitalization

          If the outstanding shares of Common Stock of Catalyst are increased or decreased or changed
into or exchanged for a different number or kind of shares or other securities of Catalyst by
reason of any recapitalization, reclassification, reorganization (other than as described in
Section 5.2 below), stock split, reverse split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock of Catalyst, or other increase or decrease
in such shares effected without receipt of consideration by Catalyst, an appropriate and
proportionate adjustment shall be made by the Committee in the number and kind of shares of Common
Stock issuable upon exercise of this Option, and in the purchase price per share of this Option.

Section 5.2 Reorganization or Change in Control

          In the event of a Reorganization (as defined below) of Catalyst or a Change in Control (as
defined below) of Catalyst, the Committee may in its sole and absolute discretion, provide that
this Option terminates, provided however, that Optionee shall have the right, immediately prior to
the occurrence of such Reorganization or Change in Control and during such reasonable period as the
Committee in its sole discretion shall determine and designate, to exercise any vested portion of
this Option in whole or in part. In the event that the Committee does not terminate this Option
upon a Reorganization of Catalyst then this Option shall upon exercise thereafter entitle the
Optionee to such number of shares of Common Stock or other securities or property to which a holder
of shares of Common Stock would have been entitled to upon such Reorganization. For purposes of
this Agreement a “Reorganization” of an entity shall be deemed to occur if such entity is a party
to a merger, consolidation, reorganization, or other business combination with one or more entities
in which said entity is not the surviving entity, if such entity disposes of substantially all of
its assets, or if such entity is a party to a spin-off, split-off, split-up or similar transaction;
provided, however, that the transaction shall not be a Reorganization if Catalyst, any parent or
any subsidiary is the surviving entity. For purposes of this Agreement, a “Change in Control”
shall be deemed to occur if any person or group of persons shall acquire direct or indirect
beneficial ownership (whether as a result of stock ownership, revocable or irrevocable proxies or
otherwise) of securities of an entity, pursuant to one or more transactions, such that after
consummation and as a result of such transaction, such person has direct or indirect beneficial
ownership of 50% or more of the total combined voting power of the Common Stock. For purposes of
this Agreement, a “person” shall mean any person, corporation, partnership, joint venture or other
entity or any group (as such term is defined for purposes of Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), other than a parent or subsidiary, and
“beneficial ownership” shall be determined in accordance with Rule 13d-3 under the Exchange Act.

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Section 5.3 Dissolution or Liquidation

          Upon the dissolution or liquidation of Catalyst, this Option shall terminate. In the event of
any termination of this Option under this Section 5.3, Optionee shall have the right, immediately
prior to the occurrence of such termination and during such reasonable period as the Committee in
its sole discretion shall determine and designate, to exercise this Option in whole or in part,
whether or not this Option was otherwise exercisable at the time such termination occurs and
without regard to any vesting or other limitation on exercise imposed pursuant to Article III
above.

Section 5.4 Adjustments

          Adjustments under this Article V related to stock or securities of Catalyst shall be made by
the Committee, whose determination in that respect shall be final, binding, and conclusive. No
fractional shares of Common Stock or units of other securities shall be issued pursuant to any such
adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case
by rounding downward to the nearest whole share or unit.

Section 5.5 No Limitations

          The grant of this Option hereunder shall not affect or limit in any way the right or power of
Catalyst to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure or to merge, consolidate, dissolve or liquidate, or to sell or transfer all or
any part of its business or assets.

ARTICLE VI

OTHER PROVISIONS

Section 6.1 Administration

          All actions taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon the Optionee, Catalyst and all other interested persons. No
member of the Committee shall be personally liable for any action, determination or interpretation
made in good faith with respect to the Option. In its absolute discretion, the Board may at any
time and from time to time exercise any and all rights and duties of the Committee under the Plan
and this Agreement except with respect to matters which under Rule 16b-3 or Section 162(m) of the
Code, or any regulations or rules issued thereunder, are required to be determined in the sole
discretion of the Committee.

Section 6.2 Option Not Transferable

          This Option shall not be assignable or transferable by the Optionee, other than by will or the
laws of descent and distribution; provided, however, that this Option may be transferred or
assigned to (i) family members or entities (including trusts) established for the benefit of the
Optionee or the
Optionee’s family members or (ii) any other person, as permitted

9

 

by applicable securities law.
Any Option assigned or transferred pursuant to this Section 6.2 shall continue to be subject to
the same terms and conditions as were applicable to the Option immediately before the transfer;
provided, however, that any Option transferred for value may not be exercised under any
Registration Statement on Form S-8 and upon exercise of such transferred Option the holder will
only be entitled to receive shares of restricted stock that have not been registered under the
Securities Act of 1933.

Section 6.3 Shares to Be Reserved

          Catalyst shall at all times during the term of the Option reserve and keep available such
number of shares of Common Stock as will be sufficient to satisfy the requirements of this
Agreement.

Section 6.4 Notices

          Any notice to be given under the terms of this Agreement to Catalyst shall be addressed to
Catalyst in care of the officer designated as the Stock Option Administrator from time to time, and
any notice to be given to the Optionee shall be addressed to him at the address given beneath his
signature hereto. By a notice given pursuant to this Section 6.4, either party may hereafter
designate a different address for notices to be given to him. Any notice which is required to be
given to the Optionee shall, if the Optionee is then deceased, be given to the Optionee’s personal
representative if such representative has previously informed Catalyst of his status and address by
written notice under this Section 6.4. Any notice shall be deemed duly given when enclosed in a
properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a
post office or branch post office regularly maintained by the United States Postal Service;
provided, however, that any notice to be given by the Optionee relating to the
exercise of the Option or any portion thereof shall be deemed duly given upon receipt by the Stock
Option Administrator or his office.

Section 6.5 Titles

          Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

Section 6.6 Construction

          This Agreement shall be administered, interpreted and enforced under the internal laws of the
State of Florida without regard to conflicts of laws thereof.

Section 6.7 Conformity to Securities Laws

          The Optionee acknowledges that this Agreement is intended to conform to the extent necessary
with all provisions of the Securities Act and the Exchange Act and any and all regulations and
rules promulgated by the Securities and Exchange Commission thereunder, including, without
limitation, the applicable exemptive conditions of Rule 16b-3. Notwithstanding anything herein to
the contrary, the Option is granted and may be exercised, only in such a manner as to conform to
such laws, rules and regulations. To the extent permitted

10

 

by applicable law, this Agreement shall be deemed
amended to the extent necessary to conform to such laws, rules and regulations.

Section 6.8 Amendments

          This Agreement may be amended without the consent of the Optionee provided that such amendment
would not impair any rights of the Optionee under this Agreement. No amendment of this Agreement
shall, without the consent of the Optionee, impair any rights of the Optionee under this Agreement.

          IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

	 	 	 	 	 
	 	CATALYST PHARMACEUTICAL PARTNERS, INC.

 	 
	 	By:  	/s/ Patrick J. McEnany
 	 
	 	 	Name:  	Patrick J. McEnany 	 
	 	 	Title:  	President and CEO 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Patrick J. McEnany
 	 
	 	Optionee 	 
	 	 	 
	 

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