Document:

EX 10.16

    EXHIBIT
      10.16

    

    License
      Agreement

    

    

    This
      Agreement is made and entered into between individuals Dr. Waldemar Gottardi,
      Hoher Weg 13, A-6020 Innsbruck, Austria, and Dr. Markus Nagl, Hintermetzentaler
      4, A-6094 Axams, Austria (“LICENSORS”) and Pathogenics, Inc., a Delaware
      Corporation (“LICENSEE”), having offices at 99 Derby Street, Suite 200, Hingham,
      MA 02043.

    

    Whereas,
      LICENSORS are the owners of the entire right, title and interest in the Patents
      and/or Patent Applications described in Exhibit A attached hereto, and the
      Technology described and/or claimed therein; and

    

    Whereas,
      LICENSORS are the owners of joint and several rights, titles and interests
      in
      the Patents and/or Patent Applications described in Exhibit A, and have been
      contractually appointed by all the other owners to dispose of the entire right,
      title and interest in the Patents and/or Patent Applications, and the Technology
      described and/or claimed therein, as described in separate Inventor Revenue
      Sharing Contracts in Exhibit B attached hereto; and

    

    Whereas,
      LICENSEE is desirous of obtaining an exclusive worldwide license in order to
      practice the above referenced Technology covered by said Patent Rights and
      to
      manufacture, have manufactured, use and sell in the commercial market the
      products made in accordance therewith; and

    

    Whereas,
      LICENSORS are desirous of granting such a license to LICENSEE in accordance
      with
      the terms of this Agreement.

    

    Now,
      therefore, in consideration of the foregoing and the mutual agreements contained
      herein, the parties agree as follows:

    

    ARTICLE
      1

     

    DEFINITIONS

    

    1.1 “Patent
      Rights” shall mean (i) the Patents and Patent Applications described in Exhibit
      A attached hereto, the Technology described and/or claimed therein, and any
      substitutions of patents and patent applications, divisions of patents and
      patent applications, continuations of patents and patent applications,
      continuations-in-part of patents and patent applications, patents issuing
      thereon or reissues or re-examinations

     

    
      
         

      

      
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    thereof
      and any and all patents and patent applications corresponding thereto; (ii)
      all
      patents and patent applications to the extent assigned to LICENSORS and to
      the
      extent LICENSORS are able, under their obligations to third parties, to grant
      rights to LICENSEE and on which Inventors are a named inventor, the Technology
      described and/or claimed therein and any substitutions, divisions,
      continuations, continuations-in-part, patents issuing thereon or reissues or
      re-examinations thereof, which relate to the design, development and/or
      manufacture of any products incorporating the Technology and any and all patents
      and patent applications corresponding thereto; (iii) all patents and patent
      applications to the extent assigned to LICENSORS and to the extent LICENSORS
      are
      able, under their obligations to third parties, to grant rights to LICENSEE
      and
      on which Inventors are a named inventor, the Technology described and/or claimed
      therein and any substitutions divisions, continuations, continuations-in-part,
      patents issuing thereon or reissues or re-examinations thereof which relate
      to
      any improvements in the Technology and any and all patents and patent
      applications corresponding thereto. The patents and patent applications
      corresponding thereto referred to in (i), (ii) and (iii) above, when filed
      or
      issued, will be automatically incorporated in and added to this Agreement and
      shall periodically be added to Exhibit A attached to this Agreement and made
      a
      part hereof; provided, however, that failure to periodically add such patents
      and/or patent applications thereto shall not be considered to exclude such
      patents and/or patent applications from the meaning of “Patent
      Rights.”

    

    1.2 “Licensed
      Processes” shall mean all technologies, methods, formulas, plans or processes
      and any improvements thereof, relating to or which are covered in whole or
      in
      part by any claim contained in the Patent Rights.

    

    1.3 “Licensed
      Products” shall mean products or components thereof claimed in Patent Rights or
      products or components thereof made in accordance with or by means of any
      Licensed Process.

    

    1.4 “Gross
      Sales” shall mean the amount billed or invoiced on sales of Licensed Products or
      Licensed Processes. 

    1.5 “Affiliates”
      shall mean any company, corporation, or business of which LICENSEE owns or
      controls at least fifty percent (50%) of the voting stock or which owns or
      controls at least fifty percent (50%) of the voting stock of
      LICENSEE.

    

    1.6 “Field”
      shall mean all potential fields of use of the Patent Rights, the Licensed
      Products, and the Licensed Processes.

    

    1.7 “Sublicensee”
      shall mean an entity which LICENSEE has granted (a) the right to manufacture
      and
      market the Licensed Products, (b) the right to practice the Licensed Processes,
      or (c) the right to sublicense the Licensed Processes to others.

    

    1.8 “Technology”
      shall mean any novel therapeutic use or formulation of N-Chlorotaruine or
      combination thereof and any of its derivatives or analogs.

     

    
      
         

      

      
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    1.9 “Sublicense
      Payments” shall mean any payments received by LICENSEE from sublicenses of
      rights granted by LICENSORS to LICENSEE under Section 2.1 of this Agreement,
      as
      consideration for the grant of such sublicenses, including without limitation,
      license fees, milestone payments, license maintenance fees, and royalty payments
      based on sales of Licensed Products or use of Licensed Processes by such
      sublicense, but excluding amounts received by LICENSEE (i) in connection with
      or
      as a result of amounts or payments to fund or reimburse LICENSEE’s research and
      development in connection with the Technology, (ii) in connection with or as
      a
      result of amounts or payments to fund or reimburse LICENSEE’s patent expenses in
      connection with the Technology, or (iii) ) in connection with or as a result
      of
      amounts or payments made as consideration for a sublicensee’s purchase of
      securities of LICENSEE.

    

    ARTICLE
      2

    

    GRANT
      OF
      LICENSE

    

    2.1 LICENSORS
      hereby grant to LICENSEE and LICENSEE accepts, subject to the terms and
      conditions hereof, a worldwide exclusive (event against LICENSORS) license
      in
      the Field, under the Patent Rights, to make and have made, to use and have
      used,
      to sell and have sold, to distribute and have distributed, and to market and
      have marketed the Licensed Products, and to practice the Licensed Processes,
      for
      the life of the Patent Rights. Such license shall include the right to grant
      sublicenses, upon which the LICENSORS are consulted. LICENSORS agree they will
      not assign, encumber, grant a license to and/or permit a lien to exist upon,
      the
      Patent Rights in any territory for any Field to or by any third party and will
      not themselves practice the Patent Rights other than for their own
      non-commercial research purposes. Licensors agree, on behalf of themselves,
      their successors and any other person or entity who or which may claim a right
      in or under the Patent Rights, that any purported transfer or encumbrance of
      rights shall be null and void and of no effect.

    

    2.2 LICENSORS
      hereby grant to LICENSEE the right to extend the licenses granted in paragraph
      2.1 to one or more Affiliates, subject to the terms and conditions
      hereof.

    

    2.3 LICENSORS
      hereby represent and warrant to LICENSEE that LICENSORS are the sole owners
      of
      the Patent Rights as reflected on Exhibit A on the date hereof, no person or
      entity has or will have any rights of any kind with respect to such Patent
      Rights except for the rights of LICENSEE pursuant to this Agreement, and
      accordingly, LICENSORS have full legal right to grant to LICENSEE the license
      provided for herein, and such grant does not and will not violate or conflict
      with the rights of any person or entity.

     

    
      
         

      

      
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    ARTICLE
      3

    

    ROYALTIES
      AND FEES

    

    3.1 LICENSEE
      shall pay to LICENSORS jointly and severally, during the term of the license
      of
      paragraph 2.1, a total royalty of four percent (4%) of the Gross Sales of all
      Licensed Products sold by LICENSEE and its Affiliates. LICENSEE shall pay to
      LICENSORS jointly and severally, during the term of the license of paragraph
      2.1, a total of twenty percent (20%) of the Sublicense Payments which LICENSEE
      and its Affiliates receive from Sublicensees for sublicenses of the Licensed
      Products or Licensed Processes. No multiple payments shall be due because the
      sale or sublicense of any Licensed Product or Licensed Process is described
      in
      more than one sentence of this section 3.1. In the event of any such overlap,
      the sentence which most accurately describes the relevant transaction at issue
      shall prevail. On Gross Sales or sublicenses between LICENSEE and its
      Affiliates, royalties shall be payable only on the resale or resublicense by
      such Affiliate. In the event of a use or sale of Licensed Products or Licensed
      Processes solely for clinical testing or research and development purposes
      for
      which LICENSEE receives no revenue, the no royalty shall be due or payable
      to
      LICENSORS.

     

    3.2 As
      further consideration for the license and other rights granted to LICENSEE
      hereunder, (a) LICENSEE shall pay to LICENSORS jointly and severally a one-time
      patent issue fee of One Hundred Thousand Dollars ($100,000) payable in cash
      or
      registered stock of the Licensee upon the first-time issuance of the first
      patent of each patent family for a licensed Product or Licensed Process, [a
      patent family comprises all patents concerning the same invention and
      originating from the sake priority application] (b) LICENSEE shall pay to
      LICENSORS jointly and severally a one-time milestone payment of Two Hundred
      and
      Fifty Thousand Dollars ($250,000) payable in cash or registered stock of the
      LICENSEE upon successful completion of a Phase III clinical trial for each
      licensed Product or Licensed Process, and (c) LICENSEE shall pay to LICENSORS
      jointly and severally a one-time milestone payment of One Million Dollars
      ($1,000,000) payable in cash or registered stock of the Licensee upon receiving
      new drug approval for each Licensed Product or Licensed Process. In the event
      LICENSEE enters into a sublicense with a Third Party or Third Parties under
      Section 2.1 of this Agreement and ceases the manufacture and sale of the
      Licensed Product, then as of the effective date of the sublicense LICENSEE’s
      obligation to pay LICENSORS any royalty or milestone payments under Article
      3
      herein shall terminate and, in lieu thereof, LICENSORS shall be entitled jointly
      and severally to twenty percent (20%) of Sublicense Payments received by
      LICENSEE.

     

    
      
         

      

      
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    ARTICLE
      4

    

    REPORTING

    

    4.1 LICENSEE
      shall report to LICENSORS the date of first sale of Licensed Products (or
      results of Licensed Processes) in each country within thirty (30) day of
      occurrence.

    

    4.2 LICENSEE
      shall provide LICENSORS within sixty (60) days after each of the calendar
      half-years ending June 30 and December 31, reports setting forth, for the
      preceding six (6) -month period, the amount of Licensed Products sold by
      LICENSEE and its Affiliates in each country, the Gross Sales thereof, the amount
      of Sublicensee royalties received by LICENSEE and its Affiliates and the amount
      of royalty due to LICENSORS with respect to the foregoing. With each such
      royalty report, LICENSEE shall include the payment of the royalty due. Such
      report shall include a detailed listing of all Gross Sales, sublicensee income,
      or royalties as specified herein. No written report shall be required for any
      reporting period prior to the first royalty payment. Written reports shall
      be
      required for each reporting period after the first royalty payment. All
      royalties due hereunder shall be payable in United States dollars. Conversion
      of
      foreign currency to U.S. dollars shall be made at the conversion rate existing
      in the United States, as quoted in The
      Wall Street Journal,
      three
      (3) days prior to the date that such royalty payments by LICENSEE was due to
      LICENSOR. Payments which are more than thirty (30) days past due and which
      are
      not the subject of a good faith controversy between the parties hereto shall
      be
      subject to an interest charge of one percent (1%) per month.

    

    4.3 LICENSORS
      agree that at all times, both during the term and after the termination of
      this
      Agreement, they will keep in confidence and trust all information provided
      to it
      hereunder by LICENSEE or provided to them by any third party pursuant to Section
      5.1 hereof (the “Proprietary Information”), and it will not use or disclose any
      Proprietary Information or anything directly relating to such Proprietary
      Information without the written consent of the LICENSEE. LICENSORS acknowledge
      that the Proprietary Information constitutes a unique and valuable asset of
      the
      LICENSEE, which is secret and confidential and which will be communicated to
      LICENSORS in confidence and that any disclosure or other use of the Proprietary
      Information other than for the sole benefit of the LICENSEE would be wrongful
      and would cause irreparable harm to the LICENSEE.

    

    4.4 Upon
      written request of LICENSORS and not more than once in each calendar year,
      LICENSEE shall permit an independent certified public accounting firm selected
      by LICENSORS and reasonably acceptable to LICENSEE upon ten-days notice to
      LICENSEE, to review the records of LICENSEE as may be reasonably necessary
      to

     

    
      
         

      

      
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    verify
      the accuracy of royalty reports hereunder for any calendar year ending not
      more
      than twenty-four (24) months prior to the date of such request. If the
      accounting firm concludes that additional royalties were owed during this
      period, LICENSEE shall pay the additional royalties within sixty (60) days
      of
      the date LICENSORS deliver to LICENSEE such accounting firm’s written report so
      concluding; provided however, that, in the event LICENSEE is not in agreement
      with the conclusion of such report LICENSEE shall not be required to pay such
      additional royalties until such matter shall be resolved pursuant to the
      provisions of Section 10.8 herein. In the event such matter is resolved in
      accordance with Section 10.8 herein, any arbitration award shall be paid within
      sixty (60) days of the date arbitrators deliver their final decision. The fees
      charged by such accounting firm shall be paid by LICENSORS; provided, however,
      that if an error is in favor of LICENSORS of more than the greater of (i)
      $10,000 or (ii) five percent (5%) of the royalties due hereunder for the period
      being reviewed is discovered, then the fees and expenses of the accounting
      firm
      shall be paid by LICENSEE.

     

    ARTICLE
      5

    

    DILIGENCE

    

    5.1 LICENSEE
      shall use commercially reasonable efforts to develop and commercialize the
      Technology. As used herein, “commercially reasonable efforts” shall mean efforts
      and resources normally used by LICENSEE for a Technology owned by it or to
      which
      it has exclusive rights, which is of similar market potential at a similar
      stage
      in its development or product life, taking into account relevant factors.
      LICENSORS shall cooperate with LICENSEE in connection with efforts to develop
      and commercialize the Technology.

    

    ARTICLE
      6

    

    PATENT
      FILING AND MAINTENANCE

    

    6.1 LICENSEE
      shall take responsibility for the preparation, filing, prosecution and
      maintenance of any all patent applications and patents included in Patent Rights
      and shall use his best efforts to promptly procure the broadest possible patents
      in all countries designated by LICENSEE pursuant to Section 6.2. LICENSORS’
patent attorney shall be involved in the preparation and prosecution of patent
      applications concerning inventions made by LICENSORS.

    

    6.2 Without
      limiting the provisions of Section 6.1, LICENSORS and LICENSEE shall cooperate
      fully in the preparation, filing, prosecution and maintenance of the Patent
      Rights including without limitations, the execution of all papers and
      instruments necessary or desirable to enable LICENSEE to apply for, to prosecute
      and to maintain patent applications and patents in LICENSORS’ name in any
      country. Each party shall provide to the other prompt notice as to all matters
      which come to its attention

     

    
      
         

      

      
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    and
      which
      may affect the preparation, filing, prosecution or maintenance of any such
      patent applications or patents. Either party may give notice to the other of
      any
      country in which such party wishes to seek patent protections for all or any
      part of the Patent Rights. In the case of such a designation by LICENSEE (and
      the provision of reasonable assurance of payment by it of the expenses to be
      incurred) LICENSORS may not refuse to seek such patent protection in the country
      so designated.

    

    ARTICLE
      7

    

    INFRINGEMENT

    

    7.1 With
      respect to any Patent Rights, LICENSEE and/or its Sublicensees shall have the
      right to prosecute in their own names and at their own expense any infringement
      thereof. LICENSORS agree to notify LICENSEE promptly of each infringement of
      the
      Patent Rights of which LICENSORS are or become aware. Failure by either party
      to
      commence an action which is contemplated by this Section 7.1 shall not
      constitute a breach of this Agreement.

    

    7.2 If
      LICENSEE or its Sublicensee elects to commence an action as described above
      or
      if an action is third party, LICENSORS shall have the right either to join
      the
      action as a co-plaintiff or co-defendant or to assign to LICENSEE all of
      LICENSOR’s right, title and interest, expressly including the right to sue for
      past infringement thereof, in each patent which is a part of the Patent Rights
      and is the subject of such action. In the event LICENSORS join the action as
      a
      co-plaintiff, LICENSEE shall nevertheless control the action provided that
      LICENSEE will endeavor to consult with LICENSORS as to the prosecution of such
      action. In the event that LICENSORS make an assignment of such patent, such
      assignment shall be irrevocable, and such action on that patent or patents
      shall
      thereafter be brought or continued without LICENSOR as a parties, unless
      LICENSORS are legally indispensable parties. Notwithstanding any such assignment
      to LICENSEE by LICENSORS and regardless of whether LICENSORS are or are not
      indispensable parties, LICENSORS shall cooperate fully with LICENSEE, at
      LICENSEE’S expense, in connection with any action commenced by LICENSEE or any
      sublicensee. In the event that any patent is assigned to LICENSEE by LICENSORS
      pursuant to this paragraph, LICENSEE shall continue to meet its obligations
      under this Agreement, including without limitation its obligation to pay
      royalties, as if the assigned patent or patent application were still licensed
      to LICENSEE.

    

    7.3 If
      LICENSEE or its Sublicensee elects to commence an action as described above,
      LICENSEE may cover the costs and expensed of such action (including reasonable
      attorneys fees and including the coverage of LICENSORS’ costs) by reducing the
      royalty due to LICENSOR hereunder by up to fifty percent (50%). In the event
      that such fifty percent (50%) costs and expenses exceed the amount of royalties
      reduced by LICENSEE for any calendar year, LICENSEE may to that extent reduce
      the royalties due

     

    
      
         

      

      
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    to
      LICENSORS from LICENSEE in succeeding calendar years, but never by more than
      fifty percent (50%) of the royalty due in any one calendar year.

    

    7.4 Recoveries
      or reimbursements from such action (regardless of whether LICENSEE or LICENSORS
      receive the award) shall first be applied to reimburse LICENSEE and LICENSORS
      for litigation costs not paid from royalties (if any) and then to reimburse
      LICENSORS for royalties withheld. Any remaining recoveries or reimbursements
      shall be paid to LICENSEE.

    

    7.5 In
      the
      event that LICENSEE and its Sublicensee, if any, elect not to exercise their
      right to prosecute an infringement of the Patent Rights pursuant to the above
      paragraphs, LICENSORS may do so at their own expense, controlling such action
      and retaining all recoveries therefrom.

    

    ARTICLE
      8

    

    TERMINATION
      OF AGREEMENT

     

    8.1 This
      Agreement, unless extended or terminated as provided herein, shall remain in
      effect until the last to expire patent in the Patent Rights; provided,
      however,
      that
      LICENSEE’S obligation to pay royalties pursuant to Section 3.1 will terminate as
      to any Licensed Products or Licensed Processes when the Patent Rights to which
      they relate expire or are abandoned.

    

    8.2 (a)
      The
      following events shall constitute an event of default under this Agreement
      (an
“Event of Default”):

    

    (i)
      LICENSEE shall become more than sixty (60) days in arrears in payment of
      royalties or expenses due pursuant to this AGREEMENT which are not the subject
      of a bona fide dispute between LICENSORS and LICENSEE and which have not been
      paid within forty five (45) days after LICENSEE has received notice of such
      arrearage from LICENSORS; or

    

    (ii) LICENSEE
      breaches this Agreement in any material respect (other than a breach covered
      by
      paragraph 8.2 (a) (i)) and does not cure such breach within sixty (60) days
      after written notice thereof from LICENSORS or, with respect to any breach
      incapable of being fully cured within such sixty (60) day period, has not made
      substantial good faith efforts to cure any such breach within thirty (30) days
      after written notice thereof from LICENSORS;

    

    (b) LICENSEE
      may, at its option, terminate this Agreement at any time for any reason
      whatsoever by doing all of the following:

     

    
      
         

      

      
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    (i) Cease
      making, having made, using and selling any Licensed Products or Licensed
      Processes; and

     

    (ii) Revoke
      all sublicenses causing all sublicensees to cease making, having made, using
      and
      selling Licensed Products or Licensed Processes; and 

    (iii) Give
      notice to LICENSORS of such cessation and of LICENSEE’S election to terminate;
      and

    

    
      
        (iv)  
          Tender
          payment of all accrued royalties.

      

    

    

    8.3 On
      the
      occurrence of an Event of Default, and if such Event of Default has not been
      remedied within sixty (60) days after notice in writing of such Event of Default
      has been given to the LICENSEE by LICENSORS, LICENSORS may terminate this
      Agreement by written notice.

    

    8.4 Any
      sublicenses granted by LICENSEE under this Agreement shall provide for
      termination or assignment to LICENSORS, at the option of LICENSORS, of
      LICENSEE’S interest therein upon termination of this Agreement.

    

    ARTICLE
      9

    

    ASSIGNMENT

    

    9.1 This
      Agreement, the Patent Rights and the other rights and duties appertaining hereto
      may not be assigned by either party without first obtaining the written consent
      of the other which shall not otherwise be unreasonably withheld. Any such
      purported assignment, without the written consent of the other party, shall
      be
      null and void and of no effect. Notwithstanding the foregoing, LICENSEE may
      assign this Agreement (i) to a purchaser, merging or consolidating corporation,
      or acquirer of substantially all of LICENSEE’S assets or business and/or
      pursuant to any reorganization qualifying under section 368 of the Internal
      Revenue Code of 1986 as amended, as may be in effect at such time, or (ii)
      to an
      Affiliate of LICENSEE.

    

    ARTICLE
      10

    

    GENERAL

    

    10.1 LICENSORS
      represent and warrant that they own the entire right, title, and interest in
      the
      patent applications or patents comprising the Patent Rights and that LICNESORS
      have the authority to issue licenses under said Patent Rights.
      LICENSORS

     

    
      
         

      

      
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    do
      not
      warrant the validity of the Patent Rights licensed hereunder and make no
      representations whatsoever with regard to the scope of the licensed Patent
      Rights or that such Patent Rights may be exploited by LICENSEE, an Affiliate,
      or
      Sublicensee without infringing other patents provided, however, that LICNESORS
      have no reason to believe that the Patent Rights are invalid or that
      exploitation by LICENSEE, an Affiliate or Sublicensee of the Patent Rights
      will
      infringe other patents.

     

    10.2 LICENSORS
      EXPRESSLY DISCLAIM ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND MAKES NO
      EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS OF THE TECHNOLOGY,
      LICENSED PROCESSES OR LICENSED PRODUCTS CONTEMPLATED BY THIS AGREEMENT FOR
      ANY
      PURPOSE.

     

    10.3
      (a) LICENSEE
      shall indemnify, defend and hold harmless LICENSORS and their heirs and assigns
      (the “Indemnitees”), against any liability, damage, loss or expenses (including
      reasonable attorney’s fees and expenses of litigation) incurred by or imposed
      upon the Indemnitees or any one of them in connection with claims, suits,
      actions, demands or judgments arising out of any theory of product liability
      (including, but not limited to, actions in the from of tort, warranty, or strict
      liability) concerning any product, process or service made, used or sold
      pursuant to any right or license granted under this Agreement. The above
      indemnification shall apply whether or not such liability, damage, loss or
      expense is attributable to the negligent activities of the Indemnitees but
      shall
      not apply if such liability, damage, loss or expense is attributable to the
      willful misconduct of any Indemnitee.

     

    (b) LICENSEE
      agrees, at its own expense, to provide attorneys reasonably acceptable to
      LICENSORS to defend against any actions brought or filed against any party
      indemnified hereunder with respect to the subject of indemnity contained herein,
      whether or not such actions are rightfully brought.

    

    10.4 The
      interpretation and application of the provisions of this Agreement shall be
      governed by the laws of the State of New York, in the United States of America
      without regard to principles of conflicts of law.

    

    10.5 LICENSEE
      agrees to comply with all applicable laws and regulations. In particular, it
      is
      understood and acknowledged that the transfer of certain commodities and
      technical data is subject to United States laws and regulations controlling
      the
      export of such commodities and technical data, including all Export
      Administration Regulations of the United States Department of Commerce. These
      laws and regulations, among other things, prohibit or require a license for
      the
      export of certain types of technical data to certain specified countries.
      LICENSEE hereby agrees and gives written assurance that it will comply with
      all
      United States laws and regulations controlling the export of

     

    
      
         

      

      
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    commodities
      and technical data, that it will be solely responsible for any violation of
      such
      by LICENSEE or its Affiliates or Sublicensees, and that it will defend and
      hold
      LICENSORS harmless in the event of any legal action of any nature occasioned
      by
      such violation.

    

    10.6 Written
      notices required to be given under this Agreement shall be addressed as
      follows:

    

    If
      to
      LICENSORS:

    Dr.
      Waldemar Gottardi

    Hoher
      Weg, 13, A-6020 Innsbruck, Austria

    Dr.
      Markus Nagl

    Hintermetzentaler
      4, A-6094 Axams, Austria

    Telephone
      No.: +43 512 507 3430

    Facsimile
      No.: +43 512 507 2870

    

    If
      to
      LICENSEE:

    Frederic
      P. Zotos, Esq.

    Pathogenics,
      Inc.

    99
      Derby
      Street, Suite 200

    Hingham,
      MA 02043

    Telephone
      No.: (781) 925-0780

    Facsimile
      No.: (781) 925-8665

    

    or
      such
      other address as either party may request in writing.

    

    10.7 Should
      a
      court of competent jurisdiction later consider any provision of this Agreement
      to be invalid, illegal, or unenforceable, it shall be considered severed
      provision, provided that the remaining provisions of this Agreement are in
      accordance with the intention of the parties.

    

    

    10.8 (a)
      In
      the event of any controversy or claim arising out of or relating to any
      provision of this Agreement or the breach thereof, the parties shall try to
      settle such conflicts amicably between themselves. Subject to the limitation
      stated in the final sentence of this section, 10.8, and any such conflict which
      the parties are unable to resolve shall be settled through binding arbitration
      conducted in accordance with the Rules of the Commercial Arbitration of the
      International Chamber of Commerce by one or more arbiter(s) knowledgeable in
      commercial law and practices, appointed in accordance with such
      rules.

    

    (b) The
      demand for arbitration shall be filed within a reasonable time after the
      controversy or claim has arisen, and in no event after the date upon
      which

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    institution
      of legal proceedings based on such controversy or claim would be barred by
      the
      applicable statue of limitation. The arbitration shall be in Innsbruck, Austria
      if initiated by LINCENSORS and New York, U.S.A. if initiated by
      LICENSEE.

    

    (c) At
      the
      request of either party, arbitration proceedings will be conducted in the utmost
      secrecy; in such case, all documents, testimony and records shall be received,
      heard and maintained by the arbitrator in the secrecy under seal, available
      for
      the inspection only of the parties and their respective attorneys and their
      respective experts who shall agree in advance and in writing to receive all
      such
      information confidentially and to maintain such information in secrecy until
      such information shall become generally known.

    

    (d) The
      award
      through arbitration shall be final and binding. Either party may enter any
      such
      award in a court having jurisdiction or may make application to such court
      for
      judicial acceptance of the award and an order of enforcement, as the case may
      be. Notwithstanding the foregoing, either party may, without recourse to
      arbitration, assert against the other party a third-party claim or cross-claim
      in any action brought by a third party, to which the subject matter of this
      Agreement may be relevant.

     

    10.9 This
      Agreement constitutes the entire understanding between the parties and neither
      party shall be obligated by any condition or representation other than those
      expressly stated herein or therein or as may be subsequently agreed to by the
      parties hereto in writing.

    

    10.10 This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile or transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their duly authorized representatives.

    

    The
      effective date of this Agreement is March, 29, 2006.

    

      
        	
                Dr.
                  Waldemar Gottardi 

              	 	
                Dr.
                  Markus Nagl

              
	 	 	 
	 	 	 
	
                /s/
                  Waldemar Gottardi

              	 	
                /s/
                  Markus Nagl

              
	 	 	 
	 	 	 
	 	 	
                Pathogenics,
                  Inc.

              
	 	 	 
	 	 	 
	 	 	
                /s/
                  Frederic P. Zotos

              
	 	 	
                By:
                  Frederic P. Zotos, Esq.

              
	 	 	
                Its:
                  CEO and President

              

      

    

     

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

    Patents
      and Patent Applications

     

    
      	 	
              1.

            	
              DE
                4041703; Filing Date: 12/24/1990; entitled: “New alkali salts of
                N-Chlorotaurine.”

            

    

    

    
      	 	
              2.

            	
              DE
                19816102; Filing Date: 04/10/1998; entitled “Inactivating viruses in
                protein solutions - comprises treating the protein solutions with
                N-Chlorotaurine.”

            

    

    

    
      	 	
              3.

            	
              DE
                10045868.8; Filing Date: September 14, 2000; entitled “Remedy for
                treatment of acute and chronic Rhinosinusitis and its
                application.”

            

    

    

    
      	
            	4.	
              DE
                10144819.8; Priority Application: DE 10045868.8; Filing Date September
                11, 2001
                (New Matter Added regarding Otitis Externa and Crural Ulcers); entitled
                “Fungicidal substance and its
                application.”

            

    

    

    
      	 	
              5.

            	
              WO
                02/22118; Priority Application: DE 10045868.8; Filing Date September
                10,
                2001; entitled “Fungicidal agent containing N-Chlorotaurine and use
                thereof.”

            

    

    

    
      	 	
              6.

            	
              US
                2004/0116521 A1; Priority Application: DE 10045868.8; Filing Date:
                September 10, 2001; entitled “Fungicidal agent containing N-Chlorotaurine
                and use thereof.”

            

    

    

    
      	 	
              7.

            	
              WO
                2004/052355 A1; Filing Date: December 6, 2002; entitled “Use of
                N-Chlorotaurine for treatment of oozing tissue
                deficiencies.”

            

    

    

    
      	 	
              8.

            	
              DE
                102005023198.5; Filing Date: May 14, 2005; entitled “Aqueous solutions
                containing chloramine which are free from di- and trichloroamine,
                as well
                as from ammonia.”

            

    

    

    
      	 	
              9.

            	
              DE
                102005038992.9; Filing Date: August, 16, 2005; entitled “Substance against
                protozoa and its application.”

            

    

    

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    Inventor
      Revenue Sharing Contracts

    

    
      	1.	
              Inventor
                Revenue Sharing Agreement between Dr. Waldemar Gottardi, Dr.
                Markus Nagl and Dr. Andreas Neher, dated
                _______________.

            

    

    

    
      	2.	
              Inventor
                Revenue Sharing Agreement between Dr. Waldemar Gottardi, Dr.
                Markus Nagl and Dr. Barbara Teuchner, dated
                _______________.

            

    

    
 

    -15-EX 10.17

    EXHIBIT
      10.17

     

    LICENSE
      AGREEMENT

     

    License
      (this “Agreement”) made as of April 13, 2006, by and between Acuity
      Pharmaceuticals, Inc., a
      Delaware corporation, with its principal offices at 3701 Market Street,
      Philadelphia, PA, 19104 (“Acuity”)
      and
      Pathogenics, Inc.,
      a
      Delaware Corporation with its principal offices at 99 Derby Street, Suite 200,
      Hingham, MA 02043 (“Pathogenics”).
      (Acuity
      and Pathogenics are sometimes referred to herein individually as a “Party”
and
      collectively as the “Parties”).

     

    BACKGROUND

     

    WHEREAS,
      Acuity is engaged in the research, development and commercialization of
      ophthalmic pharmaceutical products;

     

    WHEREAS,
      Pathogenics is a biopharmaceutical company engaged in the acquisition,
      development and commercialization of novel therapeutics that have potential
      significant commercial viability and that target certain unmet market
      needs;

     

    WHEREAS,
      Pathogenics has exclusively licensed rights to N-Chlorotaurine, a chemical
      substance produced within the body by white blood cells during an inflammatory
      reaction (“N-Chlorotaurine”),
      initially developed by researchers at the University Hospital of Innsbruck
      and
      the Institute of Hygiene and Social Medicine, Leopold-Franzens-University of
      Innsbruck, Austria (the “Institute”);

     

    WHEREAS,
      Acuity and Pathogenics believe that N-Chlorotaurine could be developed into
      an
      efficacious treatment for conjunctivitis and other related ocular
      conditions;

     

    WHEREAS,
      researchers at the Institute are preparing to conduct clinical trials in Austria
      (the “Austrian Clinical Trials”) to determine if N-Chlorotaurine can be used as
      an efficacious treatment for conjunctivitis and other related ocular
      conditions;

     

    WHEREAS,
      Acuity desires to obtain from Pathogenics, and Pathogenics desires to grant
      to
      Acuity, an exclusive worldwide license to all of Pathogenics’ rights in and to
      N-Chlorotaurine for the development and commercialization of ophthalmic
      pharmaceutical products for use in humans in accordance with the terms of this
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual promises, covenants, agreements,
      representations and warranties hereinafter set forth, and intending to be
      legally bound, the Parties hereby agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    “Affiliate”
      means
      any entity that directly or indirectly Owns, is Owned by, or is under common
      Ownership with a Party to this Agreement. “Owns” or “Ownership” means direct
      or

     

    
      
         

      

      
        Page
          1 of 21

        
          

        

      

      
         

      

    

     

    indirect
      possession of more than fifty percent (50%) of the votes of holders of a
      corporation’s voting securities or a comparable equity interest in any other
      type of entity.

     

    “Agency”
      means
      the FDA or any governmental regulatory authority responsible for granting
      approvals for the sale of Licensed Products in the United States or any foreign
      country.

     

    “Agreement”
      means
      this Agreement, together with all exhibits and attachments.

     

    “Clinical
      Trials”
      means
      all trials and studies of the application of Licensed Products in humans or
      clinical studies performed by Acuity for any purpose including without
      limitation for purposes of obtaining regulatory approval in the United States
      or
      any foreign country and marketing Licensed Products in the United States or
      any
      foreign country.

     

    “Commercially
      Reasonable Efforts” means,
      with respect to the efforts to be expended by a Party with respect to any
      objective, diligent, good faith efforts to accomplish such objective as such
      Party would normally use to accomplish a similar objective under similar
      circumstances, it being understood and agreed that with respect to the
      development and commercialization of Licensed Products, such efforts shall
      be
      substantially equivalent to those efforts and resources commonly used by a
      bio-pharmaceutical company for a similar pharmaceutical product owned by it
      or
      to which it has rights, which product is at a similar stage in its development
      or product life and is of similar market potential taking into account efficacy,
      safety, approved labeling, the competitiveness of alternative products in the
      marketplace, the patent and other proprietary position of the product, the
      likelihood of regulatory approval given the regulatory structure involved,
      the
      profitability of the product, alternative products and other relevant
      factors.

     

    “Confidential
      Information” has
      the
      meaning set forth in Section 6.1.

     

    “Effective
      Date”
means
      the
      day
      and year first indicated above.

     

    “EMEA”
      means
      the
      European Medicines Evaluation Agency, or any successor thereto.

     

    “FDA”
      means
      the United States Food and Drug Administration, or any successor
      thereto.

     

    “Field
      of Use”
means
      the
      treatment of ophthalmic
      diseases or infection, such as but not limited to, viral conjunctivitis,
      bacterial conjuctivitis and herpetic keratitis.

     

    “Fiscal
      Quarter”
      means
      each period of three (3) months ending on March 31, June 30, September 30,
      or
      December 31.

     

    “GAAP”
      means
      generally accepted accounting principles as in effect from time to time in
      the
      United States.

     

    “IND”
means
      an “investigational new drug application” as defined by the United States Food,
      Drug, and Cosmetic Act, as amended (the “Act”), and applicable FDA rules and
      regulations or a foreign equivalent.

     

    “Licensed
      Products”
means
      products whose manufacture, use or sale would, but for the existence of this
      Agreement, infringe a valid claim of the
      Pathogenics Patent Rights.

     

    
      
         

      

      
        Page
          2 of 21

        
          

        

      

      
         

      

    

     

    “MHW”
      means
      the
      Ministry of Health and Welfare of Japan, or any successor thereto.

     

    “NDA”
      means a
“new drug application,” as defined in the Act and applicable FDA rules and
      regulations, including an application of the type described in section 505(b)(2)
      of the Act.

     

    “Net
      Sales”
      means
      the total gross proceeds to Acuity on sales to Third Parties representing sales
      actually collected by Acuity and its Affiliates, less deductions for the
      following to the extent actually paid or allowed with respect to the such
      sales:

     

    (a) sales
      and
      excise taxes and duties (including import duties) paid or allowed by a selling
      party and any other governmental charges imposed upon the manufacture or sale,
      after giving effect to any rebates or refunds relating to such taxes or duties
      received by Acuity;

     

    (b) rebates
      and chargebacks (including rebates to social and welfare systems) actually
      paid;

     

    (c) allowances,
      chargebacks, and credits to Third Parties on account of rejected, damaged,
      outdated, returned, withdrawn, or recalled product or on account of retroactive
      price reductions affecting such product; and

     

    (d) amounts
      paid to Third Parties on account of rebate payments, including Medicaid
      rebates.

     

    Taxes,
      the legal incidence of which is on the purchaser and separately shown on
      Acuity’s or its Affiliates’ invoices, and transportation, insurance and postage
      charges, if prepaid by Acuity or its Affiliates and billed on Acuity’s or its
      Affiliates’ invoices as a separate item, shall not be considered a component of
      Net Sales. Components of Net Sales shall be determined in the ordinary course
      of
      business in accordance with Acuity’s historical practice and using the accrual
      method of accounting in accordance with GAAP.

     

    The
      supply of a product as commercial samples or for use in clinical trials or
      studies shall not be included within the computation of Net Sales.

     

    Where
      (i)
      a product is sold by Acuity or an Affiliate as one of a number of items without
      a separate price; or (ii) the consideration for a product shall include any
      non-cash element; or (iii) the product is transferred by Acuity or an Affiliate
      in any manner other than an invoiced sale, the Net Sales price applicable to
      any
      such transaction shall be deemed to be Acuity’s average Net Sales price for the
      applicable quantity of a product to the relevant class of customers at that
      time.

     

    “Net
      Sublicense Payments”
means
      (a) cash payments made to Acuity in consideration of the sublicense; and (b)
      the
      fair market value of any non-cash consideration received by Acuity from a
      sublicense in consideration of the sublicense other than; provided, however
      that
      the following shall not be included in the calculation of Net Sublicense
      Payments (i) reasonable amounts received in exchange for equity investments
      in
      Acuity by a sublicensee, (ii) sponsored research funding paid to Acuity by
      a
      sublicensee in a bona fide transaction for future research to be performed
      by
      Acuity; (iii) payments for consulting services actually performed by Acuity
      in a
      bona fide transaction at arms length rates; and (iv) intellectual property
      rights received by Acuity from a sublicensee, including, but not limited to,
      licenses or sublicenses to intellectual property

     

    
      
         

      

      
        Page
          3 of 21

        
          

        

      

      
         

      

    

     

    rights,
      covenants not to compete against Acuity, or agreements not to assert claims
      against Acuity.

     

    “Patents”
      means
      all valid claims in all patent applications, and all foreign patents and patent
      applications based thereon, including any continuations, divisionals,
      continuations-in-part, extensions, reissues and re-examinations of any of the
      foregoing and all patents issuing from any of the foregoing
      applications.

     

    “Pathogenics
      Improvements”
      means
      any improvements to the Pathogenics Patent Rights and Pathogenics Know-how,
      in
      each case owned by Pathogenics as of the date hereof, that are conceived,
      created, developed, and/or otherwise invented by Pathogenics, by
      Acuity.

     

    “Pathogenics
      Intellectual Property” means
      the
      Pathogenics Patent Rights, Pathogenics Improvements, and the Pathogenics
      Know-how.

     

    “Pathogenics
      Know-how”
      means
      Technical Information owned, developed, or controlled by Pathogenics as of
      the
      date of this Agreement or during the Term of this Agreement.

     

    “Pathogenics
      Patent Rights”
      means
      any valid claim of any Patent issued based on a patent application previously
      or
      hereafter filed by or on behalf of Pathogenics or previously or subsequently
      assigned, licensed, or granted to, or acquired by, Pathogenics, including
      without limitation Patents and patent applications based on Pathogenics
      Improvements. Exhibit
      A
      lists
      all the patents and patent applications giving rise to Pathogenics Patent Rights
      as of the date of this Agreement.

     

    “Technical
      Information”
      means
      all techniques and data and other know-how and technical information, including
      inventions (including patentable inventions), practices, methods, concepts,
      know-how, trade secrets, documents, computer data, source code, apparatus,
      clinical and regulatory strategies and data, test data, analytical and quality
      control data, manufacturing data or descriptions, development information,
      drawings, specifications, designs, plans, proposals and technical data and
      manuals and all other proprietary information concerning the development,
      manufacture, production, quality control, storage, distribution and sale of
      N-Chlorotaruine or and any of its derivatives or analogs.

     

    “Third
      Party”
      means
      any entity other than Pathogenics or Acuity
      or their
      Affiliates.

     

    ARTICLE
      II

     

    LICENSE
      GRANT; Diligence Obligation

     

    2.1.
      License
      Grants
      to Acuity. Pathogenics
      hereby grants to Acuity, and Acuity hereby accepts from Pathogenics, a sole
      and
      exclusive (even as to Pathogenics) irrevocable right and license, including
      the
      right to sublicense, under and to Pathogenics Intellectual Property to make,
      have made, use, sell, offer for sale, import or otherwise commercialize
      N-Chlorotaurine and Licensed Products in the Field of Use with any
      territory.

     

    2.2.
      Technology
      Transfer and Assistance.
      Pathogenics shall provide reasonable assistance to Acuity to effect the orderly
      transfer to Acuity of Pathogenics Know-How, including the transfer to Acuity
      of
      all Pathogenics Materials. Pathogenics will use

     

    
      
         

      

      
        Page
          4 of 21

        
          

        

      

      
         

      

    

     

    reasonable
      efforts to provide this assistance to Acuity as soon as practicable. Pathogenics
      shall cooperate with Acuity in connection with efforts to develop and
      commercialize N-Chlorotaurine in the Field of Use.

     

    2.3.
      No
      Restrictions on Business.
      Pathogenics agrees that Acuity is in the business of developing, and selling
      ophthalmic pharmaceutical products and that, subject to Section 3.2, nothing
      in
      this Agreement shall be construed as restricting such business or imposing
      on
      Acuity the duty to develop, register, market, and/or to sell Licensed Products
      hereunder to the exclusion of or in preference to any other product or otherwise
      preclude Acuity from developing other pharmaceutical products. Correspondingly,
      except as set forth herein, nothing herein shall be construed as restricting
      the
      business of Pathogenics.

     

    2.4.
      Diligence:
      Development and Commercialization.
      Acuity
      shall use Commercially Reasonable Efforts to develop and commercialize the
      Licensed Product. The obligations set forth in this Section 2.4 are expressly
      conditioned upon the absence of any serious adverse conditions or event relating
      to the safety or efficacy of the Technology or Product including the absence
      of
      any action by any regulatory authority limiting the development or
      commercialization of the Technology or Product. 

     

    2.5.
      Sublicenses.
      Acuity
      shall have the right to grant sublicenses to any Third Party to develop, make,
      have made, use, import, offer for sale, market, commercialize, distribute and
      sell and otherwise dispose of the Technology or Product for use in the
      Field-of-Use and the Territory; provided, however that any such sublicense
      shall
      be consistent with the terms of this Agreement. In the event that Acuity
      proposes to grant a sublicense to any Third Party, Acuity shall give Pathogenics
      a written notice prior to entering into the sublicense describing the proposed
      sublicense, including the specific rights proposed to be sublicensed and the
      material commercial and professional terms of the proposed sublicense. Acuity
      shall also provide Pathogenics with a copy of any sublicense agreements. Upon
      any termination of this Agreement pursuant to Section 9.2, Pathogenics may
      elect
      to have any existing sublicense agreement(s) survive and be assigned by Acuity
      to Pathogenics provided that (i) the sublicensee is not in breach of its
      sublicense agreement at the time of such termination of this Agreement, and
      (ii)
      any sublicensee who desires its sublicense to survive shall promptly agree
      in
      writing to be bound by the applicable terms of and assume all obligations of
      Acuity under this Agreement.

     

    ARTICLE
      III

     

    AUSTRIA
      DEVELOPMENT PROGRAM

     

    3.1.
      Austrian
      Clinical Trials.
      Acuity
      will have non-exclusive rights to all data resulting from the Austrian Clinical
      Trials. Pathogenics will use its best efforts to cause the researchers at the
      Institute and any person participating in the Austrian Clinical Trials to
      provide Acuity with all data resulting from such trials. Acuity shall treat
      all
      information disclosed to it under this Section 3.1 as Confidential Information
      (as herein defined).

     

    3.2.
      Austrian
      Trial Acceleration Funding.

     

    (a) Upon
      the
      completion of a Phase I clinical trial in Austria to study N-Chlorotaurine
      in
      the Field of Use, Pathogenics will use its best efforts to cause the
      researchers

     

    
      
         

      

      
        Page
          5 of 21

        
          

        

      

      
         

      

    

     

    at
      the
      Institute and any person participating in the Austrian Clinical Trials to
      prepare, or cause to be prepared, and deliver to Acuity a final report for
      the
      Phase I clinical trial (the “Final
      Report”).
      Acuity shall treat all information disclosed to it under this Section 3.2 as
      Confidential Information (as herein defined).

     

    (b) The
      scope
      and form of the Final Report shall be mutually agreed upon by Pathogenics and
      Acuity prior to its delivery.

     

    (c) Acuity
      shall have thirty (30) days from the delivery of the Final Report to determine,
      in Acuity’s sole reasonable discretion, if the Final Report justifies the
      initiation of a Phase II clinical trial in Austria.

     

    (d) If
      Acuity
      determines that the Final Report justifies the initiation of a Phase II clinical
      trial in Austria:

     

    (i) Acuity
      shall make available to the Institute and or the Phase II clinical
      investigators, up to $[* 
      Confidential material which has been omitted and filed separately with the
      Securities and Exchange Commission.**]
      to be
      used to accelerate the Phase II clinical trial. Acuity, Pathogenics, and the
      researchers Institute and or the Phase II clinical investigators will jointly
      determine how this money will be utilized.

     

    (ii) Acuity
      shall use its Commercially Reasonable Efforts to initiate chemistry,
      manufacturing and pre-clinical activities as are necessary to file an IND with
      the FDA to initiate a phase I clinical trial in the United States using
      N-Chlorotaurine as a treatment for an ophthalmic indication. Acuity shall own
      all right, title, and interest in any data generated in the course of such
      activities and all applications and data submitted to the any Agency. Acuity
      will provide Pathogenics with any data generated in the course of such
      activities and all applications and data submitted to any Agency, and
      Pathogenics will have non-exclusive rights to this information for research
      and
      development activities outside the Field of Use. Pathogenics shall treat all
      information disclosed to it under this Section 3.2 as Confidential Information
      (as herein defined).

     

    (e) If
      Acuity
      determines that the Final Report fails to justify the initiation of a Phase
      II
      clinical trial in Austria and Pathogenics reasonably disagrees with this
      conclusion, Pathogenics shall have the right to terminate this Agreement upon
      thirty (30) days notice to Acuity of this determination if Acuity fails to
      reverse its determination during this thirty-day period.

     

    ARTICLE
      IV

     

    MILESTONES,
      FEES, AND ROYALTY PAYMENTS; ACCOUNTING

     

    4.1.
      Austrian
      Phase I Clinical Trial Completion Fee.
      In
      consideration of the license grant provided by Pathogenics to Acuity, Acuity
      agrees to pay to Pathogenics a one time $[***]
      payment
      upon the successful completion of the Austrian Phase I clinical
      trial.

     

    
      
         

      

      
        Page
          6 of 21

        
          

        

      

      
         

      

    

     

    4.2.
      Milestone
      Payments.
      In
      consideration of the license grant provided by Pathogenics to Acuity, and
      conditioned upon Acuity having determined that the Final Report justifies the
      initiation of a Phase II clinical trial in Austria, Acuity agrees to pay to
      Pathogenics, the following milestone payments upon the successful completion
      of
      the milestones set forth below for the first Licensed Product
      hereunder:

     

    
      	 	 	
              Payment

            	 	
              Sublicense

            
	
              US
                Phase I Clinical Trial initiated

            	 	
              $[***]

            	 	
              [***]%

            
	
              US
                Phase II Clinical Trial initiated

            	 	
              $[***]

            	 	
              [***]%

            
	
              US
                Phase III Clinical Trial initiated

            	 	
              $[***]

            	 	
              [***]%

            
	
              EMEA
                Filing

            	 	
              $[***]

            	 	
              [***]%

            
	
              US
                NDA Filing

            	 	
              $[***]

            	 	
              [***]%

            
	
              Japan
                MHW Filing

            	 	
              $[***]

            	 	
              [***]%

            
	
              EMEA
                Approval

            	 	
              $[***]

            	 	
              [***]%

            
	
              US
                NDA Approval

            	 	
              $[***]

            	 	
              [***]%

            
	
              Japan
                MHW Approval

            	 	
              $[***]

            	 	
              [***]%

            

    

     

    (a) Each
      of
      the foregoing payments shall be made only once. Thereafter, no additional
      Milestone Payments shall be due or payable by Acuity to Pathogenics for License
      Products.

     

    4.3.
      License
      Fee.
      In
      consideration for the license granted to Acuity under Section 2.1 of this
      Agreement, Acuity agrees to pay to Pathogenics a one time $[***]
      license
      fee (“License
      Fee”)
      within
      2 business days of the execution of this Agreement.

     

    4.4.
      Royalty
      Payments.
      During
      the Term, Acuity will pay to Pathogenics a royalty on all Net Sales of Licensed
      Products sold by Acuity and its Affiliates equal to [***]
      percent
      ([***]%)
      of Net
      Sales of Licensed Products.

     

    4.5.
      Sublicense
      Fees. During
      the Term, Acuity will pay to Pathogenics a sublicense fee in a decreasing range
      as set forth above in Section 4.2 from a maximum of [***]
      percent
      ([***]%)
      to a
      minimum of [***]
      percent
      ([***]%)
      of the
      Net Sublicense Payments received by Acuity from sublicensees who sell Licensed
      Products pursuant to a sublicense agreement with Acuity, the sublicense fee
      depending upon what milestone stage has been successfully completed. Prior
      to
      the successful completion of the first milestone as set forth above in Section
      4.2, any Third Party sublicensee shall be treated for the purpose of this
      section as [***]
      of
      Acuity, and Acuity shall pay Pathogenics a [***]
      royalty
      on all Net Sales of Licensed Products sold by its [***]
      equal
      to
[***]
      percent
      ([***]%)
      of Net
      Sales of Licensed Products as set forth above in Section 4.4.

     

     

      
        

      

    

    
      	
              ***

            	
              Confidential
                material which has been omitted and filed separately with the Securities
                and Exchange
                Commission.

            

    

     

     

    
      
         

      

      
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    4.6.
      Withholding
      Taxes.
      Acuity
      shall be entitled to deduct from its payments to Pathogenics the amount of
      any
      withholding taxes, value-added taxes or other taxes, levies or charges with
      respect to such amounts payable by Acuity, or any taxes in each case required
      to
      be withheld by Acuity to the extent Acuity pays the appropriate governmental
      authority on behalf of Pathogenics such taxes, levies or charges. Acuity shall
      deliver to Pathogenics, upon reasonable request, proof of payment of all such
      taxes, levies and other charges and appropriate documentation which is necessary
      to obtain a tax credit, to the extent such tax credit can be
      obtained.

     

    4.7.
      Timing
      of Payments

     

    (a) Acuity
      shall provide written notice to Pathogenics the satisfaction of such milestone
      trigger.

     

    (b) Acuity
      will pay the applicable milestone payments within thirty (30) days of written
      notice of the achievement of the applicable milestone.

     

    (c) Royalties
      and Sublicense Fees payable under Section 4.4 or Section 4.5 will be paid not
      later than sixty (60) days following the end of each Fiscal Quarter, or not
      later than sixty (60) days from the date that is as soon thereafter as may
      be
      practicable in order for Acuity to determine the royalty payable. All payments
      shall be accompanied by a report in writing showing for the quarter for which
      such royalty payment applies: (i) the Net Sales of Licensed Products for which
      royalties are required pursuant to Section 4.4 (along with a reasonably detailed
      description of the calculation thereof) in United States dollars; (ii) the
      Sublicense Fees payable pursuant to Section 4.5 in United States dollars; and
      (iii) the withholding taxes, if any, required by law to be deducted with respect
      to such royalties and Sublicense Fees and the amounts paid to the appropriate
      governmental authority with respect to such royalties and Sublicense
      Fees.

     

    4.8.
      Minimum
      Annual License Fee.
      If
      total payments (including any payments required pursuant to Section 3.2 or
      Sections 4.1 through 4.5) required to paid to Pathogenics for the annual periods
      set forth below are less than the minimum amount set forth below, Acuity shall
      pay Pathogenics an amount (the “Annual Minimum Payment”) for that annual period
      equal to the difference between the total payments required for such annual
      period and the Annual Minimum Payment owing for that annual period. Such payment
      shall be made within forty five days of the end of each applicable year of
      this
      Agreement. For the year ended December 31, 2007, the Annual Minimum Payment
      shall be $[* 
      Confidential material which has been omitted and filed separately with the
      Securities and Exchange Commission.**].
      For the
      years ended December 31, 2008, 2009 and 2010, the Annual Minimum Payment shall
      be $[***].
      For the
      years ended December 31, 2011 and 2012, the Annual Minimum Payment shall be
      $[***].
      For the
      year ended December 31, 2013, the Annual Minimum Payment shall be $[***].

     

    4.9.
      No
      Other Payments.
      Pathogenics acknowledges and agrees that other than the payments provided in
      this Article IV and Section 3.2(d)(i) and all other payment, indemnity and
      reimbursement obligations set forth in this Agreement, Pathogenics shall not
      be
      entitled to

     

    
      
         

      

      
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    any
      amounts received by Acuity or its Affiliates and sublicensees from the use,
      commercialization, license or sale of its rights under this Agreement,
      regardless of the form or manner of payment (including milestones, royalties
      or
      other amounts).

     

    4.10.
      Audit.
      Acuity
      shall maintain and shall require its Affiliates and sublicensees to maintain,
      at
      their respective offices accurate and complete books and records of the Net
      Sales of Licensed Products, consistent with sound business and accounting
      practices. Upon the written request Pathogenics, but not more than once in
      any
      calendar year, Acuity shall permit an independent certified public accounting
      firm of nationally recognized standing, selected by Pathogenics and acceptable
      to Acuity, to have access during normal business hours to such records of Acuity
      as shall be necessary to verify the accuracy of the royalty reports provided
      hereunder for any year ending not more than thirty-six (36) months prior to
      the
      date of such request. The accounting firm shall disclose to Pathogenics only
      whether the records are accurate or not and the specific details concerning
      any
      discrepancies, and shall provide a copy of its report to Acuity. No other
      information shall be shared. If the audit of royalties shows an underpayment
      of
      royalty payments by Acuity of more than the greater of (i) $25,000 or (ii)
      ten
      percent (10%), then the expenses of the audit of royalties shall be borne by
      Acuity; otherwise the expenses of the audit of royalties shall be borne by
      Pathogenics. If such accounting firm concludes that additional royalties were
      owed or that royalties were overpaid during such period, then Acuity shall
      pay
      the additional royalties or Pathogenics shall credit or pay Acuity such
      overpayment within thirty (30) days of the date that such accounting firm’s
      written report is delivered to the parties.

     

    4.11.
      Confidential
      Financial Information.
      Each
      Party shall treat all financial information of the other Party as Confidential
      Information of the other Party, and shall retain and shall cause its employees
      and agents to retain, all such financial information in confidence.

     

    ARTICLE
      V

     

    CERTAIN
      PROVISIONS REGARDING PATENTS

     

    5.1.
      Patent
      Filings, Prosecution and Maintenance of Pathogenics Patent
      Rights.

     

    (a) Acuity
      shall have the first right, using in-house or outside legal counsel selected
      at
      Acuity’s sole discretion, to prepare, file, prosecute, maintain and extend
      patent applications and patents concerning all such Pathogenics Patent Rights
      in
      the United States and any foreign country that Pathogenics chooses in its sole
      discretion, for which Acuity shall bear the costs relating to such activities.
      If Pathogenics licenses any of the Pathogenics Patent Rights to a Third Party
      for use outside the Field-of-Use, then Acuity shall be reimbursed or credited
      a
      pro-rata portion (i.e., in the event there is one other Third Party licensee
      -
      Acuity receives 50% reimbursement; two Third Party licensee’s - Acuity receives
      67% reimbursement,

     

    
      
         

      

      
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    etc.)
      of
      all patent prosecution and maintenance costs. Pathogenics patent attorney shall
      be involved in the preparation and prosecution of patent applications concerning
      Pathogenics Patent Rights. Acuity shall solicit Pathogenics’ advice and review
      of the nature and text of any such patent applications in reasonably sufficient
      time prior to filing thereof, and Pathogenics shall take into account Acuity’s
      reasonable comments related thereto. Pathogenics and Acuity shall treat all
      information disclosed to it under this Section 5.1 as Confidential Information
      (as herein defined).

     

    (b) If
      Acuity
      elects not to file, prosecute or maintain any Pathogenics Patent Rights or
      any
      ensuing Patents or claims encompassed by any Pathogenics Patent Rights in the
      United States or any foreign country, Acuity shall give Pathogenics notice
      thereof within a reasonable period prior to allowing such patent applications
      or
      Patents or such claims encompassed by such patent applications or Patents to
      lapse or become abandoned or unenforceable, and Pathogenics shall thereafter
      have the right, at its sole expense, to prepare, file, prosecute and maintain
      patent applications and patents or divisional applications related to such
      claims encompassed by such patent applications or patents concerning all such
      inventions and discoveries in countries of its choice throughout the
      world.
      Thereafter, Acuity’s license grant per Section 2.1 and all other license rights
      and royalty obligations under this Agreement related to that Pathogenics Patent
      Right in such country (and only in such country) shall terminate and such patent
      or patent application in such country shall no longer be deemed a part of this
      Agreement. The termination of license grant or other license rights shall not
      affect any other rights or obligations accrued by either Party prior to the
      effective date of such termination. 

     

    5.2.
      Enforcement
      of Pathogenics Patent Rights.

     

    (a) In
      the
      event that a Party learns that any Pathogenics Patent Rights necessary for
      the
      development, manufacture, use and/or sale of any Licensed Product are infringed
      or misappropriated by activities of a Third Party in any country, or are subject
      to a declaratory judgment action arising from such infringement in such country,
      such Party shall promptly notify the other Party hereto.

     

    (b) Pathogenics
      shall have the initial right (but not the obligation) to enforce such
      Pathogenics Patent Rights, or defend any declaratory judgment action with
      respect thereto, at its expense.

     

    (c) In
      the
      event that Pathogenics fails to initiate a suit to enforce such Pathogenics
      Patent Rights against such a Third Party in any jurisdiction within sixty (60)
      days after notification of such infringement or decides that does not desire
      to
      defend such declaratory judgment action, Acuity may initiate such suit in the
      name of Pathogenics with regard to the applicable Pathogenics Patent Rights
      against such infringement or assume the defense of the declaratory judgment
      action, at the expense of Acuity. The Party involved in any such claim, suit
      or
      proceeding (the “Enforcing
      Party”),
      shall
      keep the other Party hereto reasonably informed of the progress of any such
      claim, suit or proceeding and shall allow the other Party to participate in
      the
      action at the other Party’s sole cost and expense. Pathogenics and Acuity shall
      recover their respective actual out-of-pocket expenses, or equitable proportions
      thereof, associated with any litigation or settlement thereof from any recovery
      made by any Party. Any

     

    
      
         

      

      
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    remaining
      amounts shall be distributed between the Enforcing Party, with the Enforcing
      Party receiving 75% of any such net recovery and the other Party
      25%.

     

    5.3.
      Injunction
      and/or Failure to Obtain Third Party License.
      Without
      limiting any other remedy that may be available to Acuity under this Agreement,
      Acuity shall have the right to terminate this Agreement in its entirety or
      only
      as to the affected country, immediately upon written notice to Pathogenics
      if at
      any time during the term of this Agreement: (i) a permanent injunction is issued
      by a court of competent jurisdiction enjoining Acuity’s sale of Licensed
      Products in a country, or (ii) Acuity ceases the sale of Licensed Products
      in a
      country as a result of a failure of either Party to obtain, upon commercially
      reasonable terms, a license (or immunity from suit) from a Third Party alleging
      infringement in such country.

     

    ARTICLE
      VI

     

    CONFIDENTIALITY

     

    6.1.
      Confidentiality
      and Non-Use Obligations.
      (a)
      During the Term of this Agreement and for five (5) years thereafter without
      regard to the means of termination, neither Acuity nor Pathogenics shall use,
      for any purpose other than the purposes of this Agreement, reveal or disclose
      to
      any Third Party information and materials disclosed by the other Party (whether
      prior to or during the Term of this Agreement), and marked as confidential
      or
      for which the receiving Party knows or has reason to know are or contain trade
      secrets or other proprietary information of the other Party (the “Confidential
      Information”) without first obtaining the written consent of the other
      Party.

     

    (b) The
      Parties shall take all reasonable precautions to prevent the use or disclosure
      of such Confidential Information without first obtaining the written consent
      of
      the other Party, except (i) as may be required for securing regulatory approval,
      including pricing approval in the United States and any foreign country, or
      as
      may otherwise be required to be disclosed to an Agency in the United States
      and
      any foreign country; or (ii) as required in connection with any filings made
      by
      the Securities and Exchange Commission or similar non-U.S. regulatory
      authorities or by the disclosure policies of a major stock exchange. Each Party
      agrees that prior to the release or dissemination of the other Party’s
      Confidential Information to any Affiliate or sublicensee, such Party shall
      cause
      the person to whom such Confidential Information is to be released to be bound
      by a confidentiality agreement providing for a level of protection of such
      Confidential Information at least equivalent to the terms of this Article
      VI.

     

    (c) These
      restrictions upon disclosure and use of Confidential Information shall not
      apply
      to any specific portion of Confidential Information which:

     

    (i) is
      Confidential Information that can be demonstrated by the written records of
      the
      recipient to have already been in the possession of the recipient free of any
      restrictions as to its use or disclosure at the time of disclosure by the other
      Party;

     

    (ii) is
      or
      later becomes available to the public, as evidenced by documents which were
      generally published, other than by the fault of the recipient;
      or

     

    
      
         

      

      
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    (iii) is
      received from a Third Party having legitimate possession thereof and the
      independent legal right to make such disclosure and such Third Party does not
      place any restriction as to the use or disclosure on the recipient.

     

    (d) Any
      patent applications and information therein filed or to be filed by either
      Party
      shall be deemed (i) to be Confidential Information of that Party subject to
      the
      provisions of this Article VI and (ii) to have been disclosed in confidence
      to
      the other Party.

     

    (e) Notwithstanding
      the foregoing, the recipient may disclose any Confidential Information to the
      extent required by an order of any court or other governmental authority having
      competent jurisdiction, but only after the other Party is (i) notified in
      writing and provided with a copy of such order; and (ii) given an opportunity
      to
      prevent such disclosure or obtain reasonable protection for such Confidential
      Information. In any such event, the recipient shall cooperate fully with other
      Party in connection with obtaining any protective order or other appropriate
      remedy to prevent disclosure of Confidential Information.

     

    (f) Notwithstanding
      the foregoing, the recipient may disclose any Confidential Information to any
      Agency as may be required by law or in connection with any application to test,
      sell or market a Licensed Product.

     

    6.2.
      Press
      Releases and Public Announcements.
      Neither
      Party to this Agreement shall issue any press release or other publicity
      materials, or make any public presentation with respect to the terms or
      conditions of this Agreement without the prior written consent of the other
      Party (such consent not to be unreasonably withheld or delayed). The
      restrictions provided in this Section 6.2 shall not apply to disclosures deemed
      by the Parties in their discretion to be required by law or regulation,
      including as may be required in connection with any filings made with the
      Securities and Exchange Commission or any similar non-U.S. regulatory authority,
      or by the disclosure policies of the Nasdaq Stock Market, Inc.

     

    ARTICLE
      VII

     

    REPRESENTATIONS
      AND WARRANTIES

     

    7.1.
      Legal
      and Governmental Compliance.
      Each
      Party shall comply with all laws, rules and regulations applicable to the
      activities undertaken by such Party hereunder.

     

    7.2.
      Pathogenics
      Representations and Warranties.
      Pathogenics represents and warrants to Acuity that the following are true and
      correct as of the date hereof: 

     

    (a) Pathogenics
      is a Delaware corporation duly organized, validly existing, and in good standing
      under the laws of Delaware and has full corporate power to own its properties
      and conduct the business presently being conducted by it, and is duly qualified
      to do business in, and is in good standing under, the laws of all jurisdictions
      in which its activities or assets require such status, except in any case where
      the failure to be so qualified and in good standing would not be
      material.

     

    (b) Pathogenics
      has full corporate right, power and authority to perform its obligations
      pursuant to this Agreement, and this Agreement and the transactions contemplated
      hereby have been duly and validly authorized by all necessary corporate action
      on

     

    
      
         

      

      
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    the
      part
      of Pathogenics. This Agreement has been duly and validly executed by
      Pathogenics. Upon execution and delivery of this Agreement, it will be the
      valid
      and binding obligation of Pathogenics, enforceable in accordance with its terms,
      subject to equitable principles and applicable bankruptcy, insolvency,
      reorganization, moratorium and similar laws affecting creditor’s right and
      remedies generally.

     

    (c) The
      execution, delivery and performance of this Agreement does not, and the
      consummation of the transactions herein contemplated will not violate any law,
      rule, regulation, order, judgment or decree binding on Pathogenics, or result
      in
      a breach of any term of the certificate of incorporation or by-laws of
      Pathogenics or any contract, agreement or other instrument to which Pathogenics
      is a party, except in each case to an extent not material.

     

    (d) Pathogenics
      is the sole owner of the entire right, title and interest in and to the
      Pathogenics Patent Rights and no other Person (including any government) has
      any
      license, claim or other right or interest in or to the Pathogenics Patent Rights
      as of the Effective Date.

     

    (e) To
      Pathogenics’ actual knowledge, the use of the Pathogenics Intellectual Property
      in the development, manufacture and sale of the License Products will not
      infringe, misappropriate or otherwise conflict with any intellectual property
      or
      other rights of any Third Party as of the Effective Date.

     

    (f) Pathogenics
      is not aware of any infringement of the Pathogenics Patent Rights as of the
      Effective Date.

     

    (g) There
      are
      no judicial, arbitral, regulatory or administrative proceedings or
      investigations, claims, actions or suits relating to the Pathogenics Patent
      Rights pending against or, to Pathogenics’ knowledge, threatened against
      Pathogenics or its Affiliates in any court or by or before any governmental
      body
      or agency in the United States or any foreign country.

     

    7.3.
      Representations
      and Warranties of Acuity.
      Acuity
      represents and warrants to Pathogenics that the following are true and correct
      as of the date hereof:

     

    (a) Acuity
      is
      a corporation duly organized, validly existing and in good standing under the
      laws of the State of Delaware and has full corporate power to own its properties
      and conduct the business presently being conducted by it, and is duly qualified
      to do business in, and is in good standing under, the laws of all states in
      which its activities or assets require such status, except in any case where
      the
      failure to be so qualified and in good standing would not be
      material.

     

    (b) Acuity
      has full corporate right, power and authority to perform its obligations
      pursuant to this Agreement, and this Agreement and the transactions contemplated
      hereby have been duly and validly authorized by all necessary corporate action
      on the part of Acuity. This Agreement has been duly and validly executed by
      Acuity. Upon execution and delivery of this Agreement, it will be the valid
      and
      binding obligation of Acuity enforceable in accordance with its terms, subject
      to equitable principles and applicable bankruptcy, insolvency, reorganization,
      moratorium and similar laws affecting creditor’s rights and remedies
      generally.

     

    
      
         

      

      
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    (c) The
      execution, delivery and performance of this Agreement does not, and the
      consummation of the transactions therein contemplated will not violate any
      law,
      rule, regulation, order, judgment or decree binding on Acuity or result in
      a
      breach of any term of the certificate of incorporation or by-laws of Acuity
      or
      any contract, agreement or other instrument to which Acuity is a party, except
      in each case to an extent not material. No authorization is required by Acuity
      for the execution, delivery, or performance of this Agreement by Acuity, except
      in each case to an extent not material.

     

    7.4.
      Limitation
      on Warranties.
      Except
      as expressly provided in this Agreement, neither Party makes any representation
      or warranty to the other, whether express or implied, either in fact or by
      operation of law, by statute or otherwise, and both Parties specifically
      disclaim any and all implied or statutory warranties, including, without
      limitation, any warranty of merchantability or warranty of fitness for a
      particular purpose. In addition, each Party understands and agrees that neither
      Party warrants or commits that Licensed Products will be successfully developed,
      be submitted for applicable regulatory approval, receive applicable regulatory
      approval or be successfully marketed or commercialized. Without limiting the
      indemnity obligations set forth in Article XII for the items described therein,
      neither Party shall have liability or responsibility to the other Party for
      any
      such failure in the research and development, Agency approval, manufacturing,
      marketing or sales efforts, except to the extent such failure results from
      the
      Party’s willful misconduct or gross negligence.

     

    ARTICLE
      VIII

     

    INDEMNIFICATION

     

    8.1.
      Indemnification.

     

    (a) Acuity
      Indemnification.
      Acuity
      agrees to indemnify and hold forever harmless Pathogenics and its Affiliates
      and
      each of their agents, directors, officers and employees from and against any
      loss, damage, action, proceeding, expense, liability, physical or emotional
      injury or death, or loss of service or consortium, including reasonable
      attorney’s fees (“Loss”) arising from or in connection with (i) the research,
      development, manufacture, use, offer for sale, sale or importation by Acuity
      or
      its Affiliates of Licensed, except
      for any
      Loss for which Pathogenics has agreed to indemnify Acuity pursuant to Section
      9.1(b) below; (ii) the breach or inaccuracy of any representations, warranties
      or covenants made by Acuity in this Agreement; and (iii) the gross negligence
      or
      willful misconduct of Acuity or its Affiliates or any of their agents, directors
      officers or employees.

     

    (b) Pathogenics
      Indemnification.
      Pathogenics agrees to indemnify and hold forever harmless Acuity and its
      Affiliates and each of their agents, directors, officers, and employees from
      and
      against any Loss arising from or in connection with: (i) Pathogenics’ or its
      Affiliates’ research and development activities in connection with any
      pharmaceutical product or the activities of any Pathogenics personnel in
      connection with the research, development, manufacture, use, sale, storage
      or
      handling of pharmaceutical products, except
      for any
      Loss for which Acuity has agreed to indemnify Pathogenics pursuant to Section
      9.1(a) above;
      and
      (ii) the breach or inaccuracy of any representations, warranties or covenants
      made by Pathogenics in this Agreement, (iii) the gross negligence or willful
      misconduct of Pathogenics or its Affiliates or any of their agents, directors,
      officers or employees.

     

    
      
         

      

      
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    8.2.
      Procedure.
      A Party
      seeking indemnity hereunder (an “Indemnified
      Party”)
      shall
      promptly notify the other Party (the “Indemnifying
      Party”)
      upon
      being notified or otherwise made aware of a suit, action or claim; provided
      that
      failure to provide such notice shall not affect the obligation of the
      Indemnifying Party to indemnify except to the extent that the Indemnifying
      Party
      is materially prejudiced thereby. The Indemnifying Party shall defend and
      control any proceedings, and the Indemnified Party shall be permitted to
      participate at its own expense, unless there shall be a conflict of interest
      which would prevent representation by joint counsel, in which event the
      Indemnifying Party shall pay for the Indemnified Party’s separate counsel
      pursuant to Section 11.1 above. The Indemnifying Party may not settle the suit
      or otherwise consent to any judgment in such suit without the written consent
      of
      the Indemnified Party (such consent not to be unreasonably withheld or
      delayed).
      The
      Parties shall cooperate in the defense of any Third Party claim.

     

    8.3.
      Limitation
      of Liability.
      NEITHER
      PARTY SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL OR INDIRECT
      DAMAGES OR EXPENSES, INCLUDING DAMAGES FOR LOST PROFITS, LOSS OF OPPORTUNITY
      OR
      USE OF ANY KIND, SUFFERED BY THE OTHER PARTY, WHETHER IN CONTRACT, TORT OR
      OTHERWISE.

     

    ARTICLE
      IX

     

    TERM;
      TERMINATION

     

    9.1.
      Term.
      This
      Agreement shall take effect as of the date hereof and upon the receipt of the
      License Fee by Pathogenics and shall continue in effect for shorter of (a)
      20
      years, or (b) the last to expire of the Pathogenics Patent Rights, unless
      earlier terminated in accordance with the provisions of this Article
      IX
      (such
      date being referred to as the “Termination
      Date”).

     

    9.2.
      Termination
      of Agreement.
      This
      Agreement may be terminated:

     

    (a) By
      Acuity
      at any for any reason whatsoever. Prior to exercising this termination right,
      Acuity shall (i) cease making, having made, using and selling any Licensed
      Products, (ii) revoke all sublicenses causing all sublicensees to cease making,
      having made, using and selling Licensed Products; and (ii) give notice to
      Pathogenics of such cessation and of Acuity’s election to terminate. Acuity will
      be required to pay all payments provided in Article IV which have been earned
      up
      and though such date that Acuity provides notice of its
      termination.

     

    (b) By
      mutual
      written consent of each of Pathogenics and Acuity; or

     

    (c) By
      either
      Acuity or Pathogenics, upon written notice to the other Party if (i) the other
      Party shall have been dissolved, ceased active business operations or
      liquidated, unless such dissolution, cessation or liquidation results from
      reorganization, acquisition, merger or similar event, or (ii) bankruptcy or
      insolvency proceedings, including any proceeding under Title 11 of the U.S.
      Code, have been brought by or against the other Party and, in the event such
      a
      proceeding has been brought against the other Party, remains undismissed for
      a
      period of sixty (60) days, or an assignment has been made for the benefit of
      such Party’s creditors or a receiver of such Party’s assets has been appointed
      (a “Bankruptcy
      Event”);
      or

     

    
      
         

      

      
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    (d) By
      either
      Acuity or Pathogenics, upon ninety (90) days prior written notice, if the other
      Party is in material default, and fails to cure such breach within ninety (90)
      days following receipt of written notice from the non-breaching Party specifying
      the breach to be cured.

     

    9.3.
      Surviving
      Rights.
      Termination of this Agreement for any reason shall be without prejudice
      to:

     

    (a) The
      rights and obligations of the parties provided in Articles VI and VIII hereof,
      and the representations and warranties provided in Article VII, all of which
      shall survive such termination;

     

    (b) Any
      other
      rights, obligations or liabilities which shall have accrued to the benefit
      of
      either Party prior to such termination (including without limitation Acuity’s
      obligation to pay all milestone and royalty payments which shall have accrued
      hereunder up to and including the effective date of such termination), all
      of
      which shall survive such termination; and

     

    (c) Any
      other
      rights of remedies provided at law or in equity which either party may otherwise
      have against the other.

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    10.1.
      Force
      Majeure.
      Neither
      Party shall lose any rights hereunder or be liable to the other Party for
      damages or loss on account of failure of performance by the defaulting Party
      if
      the failure is occasioned by government action, war, fire, explosion, flood,
      strike, lockout, embargo, act of God, or any other similar cause beyond the
      reasonable control of the defaulting Party, provided that the Party claiming
      force majeure has exerted all reasonable efforts to avoid or remedy such force
      majeure and given prompt notice to the other Party.

     

    10.2.
      Notices.
      All
      notices, requests, consents, and other communications under this Agreement
      shall
      be in writing and shall be delivered by hand, sent via overnight courier, sent
      by facsimile, or mailed by first class certified or registered mail, return
      receipt requested, postage prepaid:

     

    
      
         

      

      
        Page
          16 of
          21

        
          

        

      

      
         

      

    

     

    
      	
              If
                to Acuity: to

              Acuity
                Pharmaceuticals, Inc.

              3701
                Market Street

              Philadelphia,
                PA, 19104

              Attn:
                Dale R. Pfost, Ph.D.

            	
              With
                a copy to:

              Pepper
                Hamilton LLP 

              3000
                Two Logan Square 

              Philadelphia,
                PA 19103 

              Attn:
                Ilan Katz

            
	 	 
	
              If
                to Pathogenics: to

              Pathogenics,
                Inc.

              99
                Derby Street, Suite 200

              Hingham,
                MA 02043

              Attn:
                Frederic P. Zotos, Esq.

            	 

    

     

    or
      to
      such other person or entity or at such other address as any party shall
      designate by notice to the other in accordance herewith.

     

    Notices
      provided in accordance with this Section 10.2 shall be deemed delivered (i)
      upon
      personal delivery with signature required, (ii) one Business Day after they
      have
      been sent to the recipient by reputable overnight courier service (charges
      prepaid and signature required) (iii) upon confirmation, answer back received,
      of successful transmission of a facsimile message containing such notice if
      sent
      between 9:00 a.m. and 5:00 p.m., local time of the recipient, on any Business
      Day, and as of 9:00 a.m. local time of the recipient on the next Business Day
      if
      sent at any other time, or (iv) three Business Days after deposit in the mail.
      The term “Business Day” as used in this Section 10.2 shall mean any day other
      than Saturday, Sunday or a day on which banking institutions are not required
      to
      be open in the State of Delaware.

     

    10.3.
      Governing
      Law; Dispute Resolution.

     

    (a) This
      Agreement shall be governed by the laws of the State of Delaware, as such laws
      are applied to contracts entered into and to be performed within such state,
      as
      though made and to be fully performed therein without regard to conflicts of
      law
      principles thereof. The Parties agree to submit to the personal jurisdiction
      in
      any Federal or State court of competent jurisdiction seated in the State of
      Delaware, and waive any objection as to venue or inconvenience of
      forum.

     

    (b) The
      Parties shall initially attempt in good faith to resolve any significant
      controversy, claim, allegation of a Default or dispute arising out of or
      relating to this Agreement (hereinafter collectively referred to as a “Dispute”)
      through negotiations between senior executives of Acuity and Pathogenics. If
      the
      Dispute is not resolved within thirty (30) days (or such other period of time
      mutually agreed upon by the Parties) of notice of the Dispute, then the Parties
      agree to submit the Dispute to non-binding mediation on terms and procedures
      to
      be mutually agreed to for a period of ninety (90) days. Any mediation
      proceedings shall be
      treated as settlement discussions and therefore shall be
      confidential, and no mediator
      may testify for either Party in any later proceeding relating
      to the
      dispute. No recording or transcript shall be made of the mediation proceedings.
      Each Party shall bear
      its
      own costs and expenses of mediation, and the Parties shall share equally the
      fees and expenses of the mediator.

     

    
      
         

      

      
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          17 of
          21

        
          

        

      

      
         

      

    

     

    (c) If
      the
      Dispute is not resolved through negotiations or mediation as set forth above,
      then either Party may commence litigation; provided, that this Section 10.3
      shall not be construed to prevent a Party from seeking injunctive relief without
      observing the requirements of Section 10.3(b).

     

    10.4.
      Non-waiver
      of Rights.
      Except
      as specifically provided for herein, the waiver from time to time by any of
      the
      Parties of any of their rights or their failure to exercise any remedy shall
      not
      operate or be construed as a continuing waiver of same or of any other of such
      Party’s rights or remedies provided in this Agreement.

     

    10.5.
      No
      Agency.
      Neither
      Party shall by virtue of this Agreement have any power to bind the other to
      any
      obligation nor shall this Agreement create any relationship of agency,
      partnership or joint venture. 

     

    10.6.
      Severability.
      If any
      term, covenant, or condition of this Agreement or the application thereof to
      any
      Party or circumstance shall, to any extent, be held to be invalid or
      unenforceable, then (i) subject to clause (ii) of this Section 13.6 the
      remainder of this Agreement, or the application of such term, covenant or
      condition other than those as to which it is held invalid or unenforceable,
      shall not be affected thereby and each term, covenant, or condition of this
      Agreement shall be valid and be enforced to the fullest extent permitted by
      law
      and (ii) the Parties hereto covenant and agree to renegotiate any such term,
      covenant, or application thereof in good faith in order to provide a reasonably
      acceptable alternative to the term, covenant, or condition of this Agreement
      or
      the application thereof that is invalid or unenforceable.

     

    10.7.
      Entire
      Agreement.
      This
      Agreement, including the exhibits and schedules hereto as in effect from time
      to
      time pursuant to the terms hereof, sets forth all the covenants, promises,
      agreements, warranties, representations, conditions, and understandings between
      the Parties hereto in the scope of the collaboration, and supersedes and
      terminates all prior agreements and understanding between the parties under
      this
      Agreement. No subsequent alteration, amendment,
      change,
      or addition to this Agreement shall be binding upon the Parties hereto unless
      reduced to writing and signed by the respective authorized officers of the
      Parties.

     

    10.8.
      Assignment.
      No
      Party shall, without the prior written consent (not to be unreasonably withheld
      or delayed) of the other Party having been obtained, assign or transfer this
      Agreement to any Third Party, provided, however, that any Party may assign
      or
      transfer this Agreement to any Affiliate, provided that the assigning Party
      shall guarantee the performance of that Affiliate, or to any successor by merger
      of such Party, or to the Purchaser of all or substantially all of such assets
      of
      its business, without the prior written consent of the other Party hereto.
      This
      Agreement shall be binding upon and shall inure to the benefit of the Parties
      and their successors and permitted assigns.

     

    10.9.
      Facsimile
      Execution.
      This
      Agreement may be executed in facsimile counterparts each of which is hereby
      agreed to have the legal binding effect of an original signature. The Parties
      hereto agree to forward the original signatures by overnight mail to the other
      Party upon execution.

     

    
      
         

      

      
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          18 of
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    10.10.
      License
      Survival During Bankruptcy.
      All
      rights and licenses granted under or pursuant to this Agreement to the
      Pathogenics Intellectual Property are, and shall otherwise be deemed to be,
      for
      purposes of Paragraph 365(n) of the U.S. Bankruptcy Code, licenses of rights
      to
“Intellectual Property” as defined under Paragraph 101(35A) of the U.S.
      Bankruptcy Code. The parties agree that Acuity, as a licensee of such rights
      under this Agreement, shall retain and may fully exercise all of its rights
      and
      elections under the U.S. Bankruptcy Code, subject to performance by Acuity
      of
      its obligations under this Agreement. The parties further agree that, in the
      event Pathogenics elects to terminate this Agreement because of a Bankruptcy
      Event and Acuity elects to continue the licenses under this Agreement as
      contemplated by the preceding sentence, then Acuity shall be entitled, upon
      reasonable request, to have access, in confidence, to such of Pathogenics
      Intellectual Property not already in Acuity’s possession, as shall be reasonably
      necessary to make use of the license rights under this Agreement without
      participation by Pathogenics.

     

    ****

     

    
      
         

      

      
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      IN
        WITNESS WHEREOF,
        the
        parties have caused this Agreement to be executed by their duly authorized
        representatives as of the day and year first indicated above.

    

     

    ACUITY
      PHARMACEUTICALS, INC.

     

     

    By:  
      /s/
      Dale
      R. Pfost

      
        

      

    

    Name:
      Dale R. Pfost

    Title:
      President and Chief Executive Officer

     

     

    PATHOGENICS,
      INC.

     

     

    By:  
      /s/
      Frederic P. Zotos

      
        

      

    

    Name:
      Frederic P. Zotos

    Title:
      President and Chief Executive Officer

     

    
      
         

      

      
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          20 of
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    EXHIBIT
      A

     

    PATHOGENICS
      PATENT RIGHTS

     

     

    
      	 	
              1

            	
              DE
                102005023198.5; Filing Date: May 14, 2005; entitled “Aqueous solutions
                containing chloramine which are free from di- and trichloroamine,
                as well
                as from ammonia.”

            

    

     

    
      	 	
              2

            	
              DE
                102005038992.9; Filing Date: August, 16, 2005; entitled “Substance against
                protozoa and its application.”

            

    

     

     

    
      Page
        21 of 21

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