Document:

exhibit1056.htm

    Exhibit
10.56

    EMPLOYMENT
AGREEMENT

     

    This
EMPLOYMENT AGREEMENT, effective as of March 27, 2009 (the “Commencement Date”),
is made by and between Neurogen Corporation, a Delaware corporation (the
“Company”) with offices at 45 Northeast Industrial Road, Branford, Connecticut
06405, and Dr. George Maynard,
who currently resides in Clinton, Connecticut (the “Employee”).

    

    WHEREAS,
the Company and the Employee desire to maintain an employment relationship;
and

     

    WHEREAS,
the Company and the Employee desire to enter into this Agreement to address, on
the terms and conditions hereinafter set forth, certain matters relating to such
employment.

     

    NOW,
THEREFORE, the Company and the Employee agree as follows:

     

    
      	
              1.  

            	
              DEFINITIONS

            

    

     

    
      	
              (a)  

            	
              Cause

            

    

     

    For
purposes of this Agreement “cause” means:

     

    (i)   the
Employee is convicted of a felony or entry of a plea of nolo contendere (or
similar plea) in a criminal proceeding for commission of a felony or serious
misdemeanor;

     

    (ii)   any
willful act or omission by the Employee which constitutes gross misconduct or
gross negligence and which results in demonstrable material harm to the
Company;

     

    (iii)   the
Employee’s habitual drug or alcohol abuse;

     

    (iv)   the
Employee’s willful and continuous failure to perform his duties with the Company
after reasonable notice of such failure;

     

    (v)   the
Employee’s participation in any act of dishonesty intended to result in his
material personal enrichment at the expense of the Company; or

     

    (vi)   the
Employee’s failure to substantially comply with the terms set forth in the
Proprietary Information and Inventions Agreement between the Employee and the
Company.

     

    No act,
or failure to act, by the Employee shall be considered “willful” unless
committed in bad faith and without a reasonable belief that the act or omission
was in the Company’s best interest.

     

    
      	
              (b)  

            	
              Good
      Reason

            

    

     

    For
purposes of this Agreement “good reason” means and shall be deemed to exist if,
without the prior written consent of the Employee,

    
      
        
           

        

        
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    (i)    the Company
permanently relocates the primary place of performance of the duties specified
in Section 3 of this Agreement to a location more than fifty (50) miles from its
current offices located in Branford, Connecticut;

     

      (ii)       the
Employee’s rate of Base Salary (as hereinafter defined) is materially decreased
by the Company (other than in connection with an across the board salary
reduction agreed to by the Employee);

     

    (iii)        the
Company fails to obtain the full assumption of this Agreement by a successor
entity in accordance with Section 12(b) of this Agreement; or

     

    (iv)        the
Board of Directors of the Company (the “Board”) or the Company’s stockholders,
either or both, as may be required to authorize the same, shall approve any
liquidation or dissolution of the Company, or the sale of all or substantially
all of the assets of the Company.

     

    
      	
              2.  

            	
              TERM

            

    

     

    The term
of Employee’s employment under this Agreement shall, unless earlier terminated
under Section 7 herein or extended as hereinafter provided, be for a period
commencing as of (the “Commencement Date”) and terminating on March 26, 2010,
subject to the terms and conditions contained in this Agreement (the “Employment
Period”). The Employment Period shall automatically be extended commencing on
March, 27, 2010 and thereafter on the relevant anniversary of the Commencement
Date, for successive one (1) year periods unless, not later than ninety (90)
days prior to March 27, 2010 or any such anniversary, either party to this
Agreement shall give written notice to the other that such party does not wish
to extend or further extend the Employment Period beyond its then already
automatically extended term, if any.

     

    
      	
              3.  

            	
              DUTIES
      AND SERVICES

            

    

     

    During
the Employment Period, the Employee shall devote substantially all of his
business time, during normal business hours, to the business and affairs of the
Company and the Employee shall use his best efforts to perform faithfully and
efficiently the duties and responsibilities contemplated by this Agreement;
provided, however, the Employee may manage his personal, financial and legal
affairs and engage in any activities of a volunteer, civic or business nature,
as long as such activities do not materially interfere with Employee’s
responsibilities.

     

    
      	
              4.  

            	
              COMPENSATION
      AND OTHER BENEFITS

            

    

     

    
      	
              (a)  

            	
              Salary

            

    

     

    As
compensation for the Employee’s services under this Agreement, beginning on the
Commencement Date and until the termination of the Employment Period, the
Employee shall be paid by the Company a base salary of $205,000 per annum,
payable in equal semi-monthly 

    
      
         

      

      
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installments
in accordance with the Company’s normal payroll practices, which base salary may
be increased but not decreased (other than in connection with an across the
board salary reduction agreed to by the Employee) during the Employment Period
at the sole discretion of the Board or the Board’s designee (the “Base Salary”).
Such increased (or decreased) Base Salary shall then constitute the “Base
Salary’ for purposes of this Agreement.

     

    
      	
              (b)  

            	
              Annual
      Bonus

            

    

     

    In
addition to the Base Salary, at the sole discretion of the Board of Directors or
its designee, the Employee is eligible to receive such annual bonuses during the
Employment Period as the Board or its designee, in its sole discretion, may
approve. It is anticipated that annual bonus awards, if any, will be calculated
on the basis of both Company and individual performance and that Employee’s
annual target bonus for complete achievement of all Company and individual
objectives will be targeted at a level equal to twenty  percent (20%)
of Base Salary. Notwithstanding anything in this agreement to the contrary, the
Company reserves the right at the sole discretion of the Board or its designee
at any time and without notice to change or abandon altogether any or all of
it’s incentive compensation policies and practices, including the award of any
annual bonuses or the determination not to make any such awards in any
year.

     

    
      	
              (c)  

            	
              Benefits

            

    

     

    During
the Employment Period, the Employee shall be eligible to participate in all
employee and incentive benefit plans and programs maintained from time to time
by the Company for the benefit of senior executives, During the Employment
Period, the Employee, Employee’s spouse, if any, and their eligible dependents,
if any, shall be eligible to participate in and be covered under all the
employee and dependent health and welfare benefit plans or programs maintained
from time to time by the Company. However, the Company shall have no obligations
under this Section 4(c) unless and until the Employee has met any generally
applicable eligibility requirements for participation in such plans and
programs.

     

    
      	
              (d)  

            	
              Equity

            

    

     

    At the
sole discretion of the Board of Directors or its designee, the Employee is
eligible to receive such stock option grants during the Employment Period as the
Board or its designee, in its sole discretion, may approve. It is anticipated
that stock option awards, if any, will be calculated on the basis of both
Company and individual performance. Notwithstanding anything in this agreement
to the contrary, the Company reserves the right at the sole discretion of the
Board or its designee at any time and without notice to change or abandon
altogether any or all of it’s incentive compensation policies and practices,
including the award of any stock options or the determination not to make any
such awards in any year.

     

    
      	
              5.  

            	
              NON-COMPETITION

            

    

     

    (a) During
the Employment Period and for one year after the date of any such termination of
employment, the Employee agrees that, without the prior express written consent
of the Company, he shall not, directly or indirectly, for his own benefit or as
an employee, owner, shareholder, partner, consultant, (or in any other
representative capacity) for any other person, firm, partnership, corporation or
other entity (other than the Company), (i) engage in the

    
      
        
           

        

        
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    (b) discovery,
research and/or development of therapeutic, diagnostic or prophylactic products
which work through the same biological mechanisms and are being pursued for the
same therapeutic indications as products which at the time of such termination
are under active clinical or pre-clinical development or have been
pre-clinically or clinically developed by the Company and which the Company has
not abandoned (“Related Programs”) or (ii) solicit or hire (or direct another to
solicit or hire) the services of any employee of the Company or attempt to
induce any such employee or any consultant to the Company to leave the employ of
the Company (except when such acts are performed in good faith by the Employee
on behalf of the Company). For clarity, an example of the Company’s Related
Programs as of the date of this Agreement is the development of a dopamine D2
partial agonist for Parkinson’s disease or Restless Legs
Syndrome.   Notwithstanding the above, this provision shall not
be deemed to prevent or prohibit Employee from being employed during such one
year period by another entity in a managerial role where Employee has overall
responsibility for managing (or assisting in the management of) a research and
development portfolio which includes one or more Related Programs, provided that
Employee does not violate the terms of Section 6 hereof and does not during such
one year term actively advise or direct the discovery, research or development
efforts of such other entity in the Related Program(s). During the Employment
Period, the Employee shall not own more than 2% of the outstanding common stock
of any corporation, The provisions of this Section 5 shall not be deemed to
reduce in any way any other fiduciary, contractual or other legal obligation the
Employee may have to the Company, including without limitation any obligation
which may arise by virtue of any corporation law, securities law, patent or
intellectual property law or right, the common law, other agreements with the
Company or otherwise.

     

    For purposes of Section 5 of this
Agreement, the term “solicit” shall mean any communication of any kind
whatsoever, regardless of by whom initiated, inviting, encouraging, or
requesting any person or entity to take or refrain from taking any
action.

     

    (c) The
Employee agrees to comply with the terms of set forth in the Proprietary
Information and Inventions Agreement previously entered into by the Company and
Employee.

     

    (d) If at any
time within twelve (12) months after the date on which the Employee exercises a
Company stock option or stock appreciation right, or on which Company restricted
stock vests, or on which income is realized by the Employee in connection with
any other Company equity-based award (each of which events is a “Realization
Event”), the Employee breaches any provision of Section 5(a) or 5(b) of the
Agreement in more than a minor, deminimus or trivial manner that causes or is
likely it cause, more than deminimus financial or reputational harm to the
Company (and, if such breach is susceptible to cure, the Employee does not cure
such breach and harm within ten (10) days after the Employee’s receipt of
written notice of such breach of the Company which specifies in reasonable
detail the facts and circumstances claimed to be the basis for such breach),
then (i) the Employee shall forfeit all of Employee’s unexercised (including
unvested) Neurogen Corporation stock options and restricted stock and (ii) any
gain realized within the twelve (12) months prior to such breach from the
exercise of any Company stock options or the vesting of any Company restricted
stock or other equity-based awards by the Employee from the Realization Event
shall be paid by the Employee to the Company upon written notice from the
Company within ninety (90) days of such notice (such payments may be made in
increments over such period). Such gain shall be determined after reduction for
any

     

    
      
         

      

      
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    (e) taxes
paid (or, if such gain is determined before such taxes are paid, owing, provided
that such taxes are actually paid in a timely manner) by the Employee which are
attributable to such gain as of the date of the Realization Event, and without
regard to any subsequent change in the Fair Market Value (as defined below) of a
share of Company common stock; provided that any federal or state income tax
benefit actually realized by the Employee as a result of making payments to the
Company under this Section 5(c) (relating to any of the next ten (10) tax year
periods) shall also be paid to the Company within fifteen (15) days of such
realization. Such gain shall be paid by the Employee delivering to the Company
shares of Company Common Stock with a Fair Market Value on the date of delivery
equal to the amount of such gain. To the extent permitted by applicable law, the
Company shall have the right to offset such gain against any amounts otherwise
owed to the Employee by the Company (whether as wages, vacation pay, or pursuant
to any benefit plan or other compensatory arrangement). For purposes of this
Section 5(c), the “Fair Market Value” of a share of Company Common Stock on any
date shall be (i) the closing sale price per share of Company Common Stock
during normal trading hours on the national securities exchange on which the
Company Common Stock is principally traded for such date or the last preceding
date on which there was a sale of such Company Common Stock on such exchange or
(ii) if the shares of Company Common Stock are then traded on the NASDAQ Stock
Market or any other over-the-counter market, the average of the closing bid and
asked prices for the shares of Company Common Stock during normal trading hours
in such over-the-counter market for such date or the last preceding date on
which there was a sale of such Company Common Stock in such market, or (iii) if
the shares of Company Common Stock are not then listed on a national securities
exchange or traded in an over-the-counter market, such value as the Compensation
Committee, in its sole discretion, shall reasonably determine. In the event that
the Company seeks to enforce the provisions of this Section 5(c), and such
enforcement is contested by the Employee, and it is finally determined that the
Employee is not subject to the provisions of this Section 5(c), then the Company
shall (i) reimburse the Employee for reasonable attorneys’ fees incurred by the
Employee in connection with such contest; and (ii) pay to the Employee an
additional amount equal to one (1) times the amount in clause (i); provided that such
payment under this clause (ii) shall not exceed $250,000.

     

    (f) Any
termination of the Employee’s employment or of this Agreement shall have no
effect on the continuing operation of this Section 5.

     

    (g) The
Employee acknowledges and agrees that the Company will have no adequate remedy
at law, and could be irreparably harmed, if the Employee breaches or threatens
to breach any of the provisions of this Section 5. The Employee agrees that the
Company shall be entitled to equitable and/or injunctive relief to prevent any
breach or threatened breach of this Section 5, and to specific performance of
each of the terms hereof in addition to any other legal or equitable remedies
that the Company may have. The Employee further agrees that Employee shall not,
in any equity proceeding relating to the enforcement of the terms of this
Section 5, raise the defense that the Company has an adequate remedy at
law.

     

    (h) The terms
and provisions of this Section 5 are intended to be separate and divisible
provisions and if, for any reason, any one or more of them is held to be invalid
or unenforceable, neither the validity nor the enforceability of any other
provision of this Agreement shall thereby be affected. The parties hereto
acknowledge that the potential restrictions on the Employee’s future employment
imposed by this Section 5 are reasonable in both duration and
geographic

    
      
        
           

        

        
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    (i) scope and
in all other respects. If for any reason any court of competent jurisdiction
shall find any provisions of this Section 5 unreasonable in duration or
geographic scope or otherwise, the Employee and the Company agree that the
restrictions and prohibitions contained herein shall be effective to the fullest
extent allowed under applicable law in such jurisdiction.

     

    (j) The
parties acknowledge that this Agreement would not have been entered into and the
benefits described in Section 4 of this Agreement would not have been promised
in the absence of the Employee’s promises under this Section 5.

     

    
      	
              6.  

            	
              CONFIDENTIAL
      INFORMATION

            

    

     

    The
Employee agrees to substantially comply with the terms set forth in the
Proprietary Information and Inventions Agreement between the Employee and the
Company, a copy of which is attached hereto as Exhibit A and incorporated by
reference herein.

     

    
      	
              7.  

            	
              TERMINATION

            

    

     

    
      	
              (a)  

            	
              Termination
      by the Company for Cause

            

    

     

    The
Company may terminate the Employee’s employment hereunder for cause. If the
Company terminates the Employee’s employment hereunder for cause, the Employment
Period shall end and the Employee shall only be entitled to any Base Salary
accrued or annual bonus awarded and earned but not yet paid as of the date of
termination of the Employee’s employment with the Company.

     

    If the
Employee’s employment is to be terminated for cause, the Company shall give
written notice of such termination to the Employee. Such notice shall specify
the particular act or acts, or failure to act, which is or are the basis for the
decision to so terminate the Employee’s employment for cause.

     

    
      	
              (b)  

            	
              Termination
      Without Cause or Termination For Good
Reason

            

    

     

    The
Company may terminate the Employee’s employment hereunder without cause and the
Employee may terminate Employee’s employment hereunder for good reason. If the
Company terminates the Employee’s employment hereunder without cause, or if the
Employee terminates Employee’s employment hereunder for good reason, the
Employment Period shall end and the Employee shall only be entitled to (i) any
Base Salary accrued or annual bonus awarded and earned but not yet paid as of
the actual date of termination of the Employee’s employment with the Company;
(ii) a lump sum payment in an amount equal to seventy five percent (75%) of the
Employee’s annual Base Salary as provided in Section 4(a) above; (iii)
continuation of the health and welfare benefits of the Employee, Employees’
spouse and their eligible dependents, if any, as set forth in Section 4(c) above
(except for Disability Insurance), or the economic equivalent thereof, at the
same cost and level in effect on the date of termination of the Employee’s
employment with the Company for nine months after such date of termination; and
(iv) the right to exercise immediately any stock options and to freely trade any
restricted stock granted to the Employee which, but for such termination, would
have become exercisable or tradable, as the case may be, within nine months of
the date of such termination without cause or for good
reason.  Notwithstanding any other provision of this Agreement, in
addition to the 

    
      
         

      

      
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benefits
described above, if Employee is terminated without cause or terminates his
employment for good reason as a result of a Change in Control of the Company
(including without limitation any termination within two (2) years of a Change
in Control which shall be deemed to be as a result of a Change in Control) then
Employee shall also be entitled to a lump sum payment in an amount equal to the
greater of (i) the Employee’s then targeted annual bonus or (ii) the Employee’s
targeted annual bonus immediately prior to the Change in Control. For purposes
of this Agreement, the term “Change in Control” shall have the same meaning
given to that term in Section 2.4 of the Amended and Restated Neurogen
Corporation 2001 Stock Option Plan.

     

    If the
Employee’s employment is to be terminated without cause, the Company shall give
the Employee thirty (30) days prior written notice of its intent to so terminate
the Employee’s employment. If the Employee intends to terminate Employee’s
employment for good reason, the Employee agrees to give the Company at least
thirty (30) days prior written notice.

     

    
      	
              (c)  

            	
              Termination
      Due to Death or Disability

            

    

     

    The
Company may terminate the Employee’s employment hereunder due to the Employee’s
inability to render, for a period of three consecutive months or an aggregate of
any one hundred twenty (120) days within any six (6) month period, services
hereunder by reason of permanent disability, as determined by the written
medical opinion of an independent medical physician selected in good faith by
the Company (“Disability”). In the event of the Employee’s death or a
termination of the Employee’s employment by the Company due to Disability, the
Employment Period shall end and the Employee, Employee’s estate or Employee’s
legal representative, as the case may be, shall only be entitled to (i) (a) any
Base Salary accrued or annual bonus awarded and earned but not yet paid as of
the actual date of termination of the Employee’s employment with the Company,
and (b) any other compensation and benefits as may be provided in accordance
with the terms and provisions of any applicable plans and programs of the
Company; and (ii) in the case of Disability, (a) continuation of payment of the
Employee’s Base Salary if any, as set forth in Section 4(a) above, until the
Employee commences to receive payments under the Company’s long-term disability
plan, (b) continuation of the health and welfare benefits of the Employee, as
set forth in Section 4(c) above (except for Disability Insurance), or the
economic equivalent thereof, at the same cost and level in effect on the date of
termination for nine months after the date of termination and (c) the right to
exercise immediately that proportion of the stock options (rounded up to the
nearest whole number of shares) granted to the Employee which would become
exercisable on or before the next scheduled anniversary date of this Agreement
immediately following the date of termination of the Employee’s employment with
the Company due to Disability which is equal to the number of days worked by the
Employee from, but excluding, the anniversary date immediately preceding such
termination date to, and including, such termination date divided by 365
days.

     

    
      	
              (d)  

            	
              Voluntary
      Termination

            

    

     

    The
Employee may affect a Voluntary Termination of Employee’s employment with the
Company hereunder. A “Voluntary Termination” shall mean a termination of
employment by the Employee on Employee’s own initiative other than a termination
due to death or Disability or a termination for good reason. A Voluntary
Termination shall not be, and shall not be deemed to

     

    
      
         

      

      
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    be, a
breach of this Agreement and shall result in the end of the Employment Period
and only entitle the Employee to all of the rights and benefits which the
Employee would be entitled in the event of a termination of the Employee’s
employment by the Company for cause.

     

    
      	
              (e)  

            	
              Termination
      by the Company at End of Employment
Period

            

    

     

    Notwithstanding
any provision of this Agreement to the contrary, if (a) the Employment Period is
not terminated early under Sections 7(a), 7(b), 7(c) or 7(d) above and (b) the
Company provides written notice to the Employee, pursuant to Section 2 above,
that it does not wish to extend or further extend the Employment Period, then
the Employee’s employment with the Company shall end on the last day of the
Employment Period and the Employee shall be entitled to (x) continuation of
payment of the Employee’s Base Salary, as provided in Section 4(a) above, as of
the date of termination of the Employee’s employment with the Company for a
period equal to nine months less the number of days notice given by the Company
to the Employee that it does not wish to extend or further extend the Employment
Period (such notice period shall be deemed to commence as of the date of such
written notice by the Company); (y) continuation of the health and welfare
benefits of the Employee, Employee’s spouse and their eligible dependent’s if
any, as set forth in 4(c) above (except for Disability Insurance), or the
economic equivalent thereof, at the same cost and level in effect on the date of
termination of the Employee’s employment with the Company for nine months after
such termination; and (z) the right to exercise immediately any stock options
and to trade freely any restricted stock granted to the Employee which, but for
such termination, would have become exercisable or freely tradable, as the case
may be, on or before the anniversary date of this
Agreement  immediately following the date on which the Nine month
period referred to the preceding subclause (x) ends; provided, however, that the
severance payment by the Company to the Employee under subclause (x) of this
Section 7(e) shall be offset on a dollar for dollar basis by any cash, or the
fair market value of any non-cash, remuneration, benefit or other entitlement
earned, received or receivable by the Employee in connection with the employment
of such Employee in any capacity, other than dividends, interest income or other
passive investment income earned as a result of an interest in a business or
entity of which the Employee owns less than 2% of the beneficial ownership. If
the Employee shall be entitled to any such severance payment from the Company
after the termination of the Employment Period, the Employee shall have the
obligation to notify the Company of any employment, consultation or other
activity which may involve any remuneration, benefits or other entitlements as
described above, and as to which the Company may be entitled to an
offset.

     

    
      	
              8.  

            	
              SURVIVAL

            

    

     

    The
rights and obligations of the parties hereunder shall survive the termination of
the Employee’s employment hereunder and the termination of this Agreement to the
extent necessary to the intended preservation of such rights and
obligations.

    WHOLE
AGREEMENT AND MODIFICATION

     

    This
Agreement, including the “Proprietary Information and
Inventions Agreement”, sets forth the entire agreement and understanding
of the parties with respect to the subject matter contained herein, and
supersedes all prior and existing agreements except as set forth above, whether
written or oral, between them concerning the subject matter contained herein.
This Agreement may be modified only by a written agreement executed by each
party to this Agreement.

     

    
      
         

      

      
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              9.  

            	
              NOTICES

            

    

     

    Any
notice or other communication required or permitted to be given under this
Agreement shall be in writing and shall be mailed by certified mail, return
receipt requested, or delivered against receipt to the party to whom it is to be
given at the address of such party set forth above or to such other address as
the party shall have furnished in writing in accordance with this provision.
Notice to the estate of the Employee shall be sufficient if addressed to the
Employee in accordance with this provision. Any notice or other communication
given by certified mail shall be deemed given three (3) days after posting.
However, a notice changing a party’s address shall be deemed given at the time
of the receipt of the notice.

     

    
      	
              10.  

            	
              WAIVER

            

    

     

    Any
waiver by either party of a breach of any provision of this Agreement shall not
operate as or be construed to be a waiver of any other breach of such provision
or of any breach of any other provision of this Agreement. The failure of a
party to insist upon strict adherence to any term of this Agreement on one or
more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of this Agreement. Any waiver must be in writing, signed by the party giving
such waiver.

     

    
      	
              11.  

            	
              SUCCESSORS

            

    

     

    
      	
              (a)  

            	
              Effect
      on Employee

            

    

     

    This
Agreement is personal to the Employee and, without the prior express written
consent of the Company, shall not be assignable by the Employee, except that the
Employee’s rights to receive any compensation or benefits under this Agreement
may be transferred or disposed of pursuant to testamentary disposition,
intestate succession or pursuant to a domestic relations order of a court of
competent jurisdiction. This Agreement shall inure to the benefit of and be
enforceable by the Employee’s heirs, beneficiaries and/or legal
representatives.

     

    
      	
              (b)  

            	
              Effect
      on Company

            

    

     

    This
Agreement shall inure to the benefit of and be binding on the Company and its
successors and assigns. The Company shall reasonably require any successor to
all or substantially all of the business and/or assets of the Company, whether
direct or indirect, by purchase, merger, consolidation, acquisition of stock, or
otherwise, by an agreement in form and substance reasonably satisfactory to the
Employee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent as the Company would be required to perform if no
such succession had taken place.

     

    
      	
              12.  

            	
              NO
      THIRD PARTY BENEFICIARIES

            

    

     

    This
Agreement does not create, and shall not be construed as creating, any rights
enforceable by any person not a party to this Agreement except as provided in
Section 12 of this Agreement.

     

    
      
         

      

      
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    COUNTERPARTS

     

    This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    
      	
              13.  

            	
              GOVERNING
      LAW

            

    

     

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of Connecticut, without giving effect to the principles of conflict of
laws thereof.

     

    
      	
              14.  

            	
              SEVERABILITY

            

    

     

    The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this
Agreement.

     

    
      	
              15.  

            	
              NO
      VIOLATION OF OUTSTANDING
AGREEMENT(S)

            

    

     

    Employee
hereby warrants that the execution of this Agreement and the performance of his
duties hereunder do not and will not violate any agreement with any other person
or entity.

     

    IN
WITNESS WHEREOF, the parties have duly executed this Agreement which shall be
effective as of the effective date noted above.

     

    
      
        
          
            	 	 	 	 	 
	 NEUROGEN
      CORPORATION	 	 	 EMPLOYEE	 
	 	 	 	 	 
	
                    /s/Stephen
      R. Davis

                  	 	 	
                    /s/
      George Maynard

                  	 
	
                    Name: 
      Stephen R. Davis

                  	 	 	
                    Name:  George
      Maynard 

                  	 
	
                    Title    
      President and Chief Executive Officer

                  	 	 	
                    Title;
      Vice President, Earch Developmentexhibit4-2.htm

    Exhibit
4.2

     

    AGREEMENT OF RESIGNATION, APPOINTMENT
AND ACCEPTANCE, dated as of February 5, 2009 by and among OSI
Restaurant Partners, LLC, a Delaware limited liability company ("OSI"), OSI
Co-Issuer, Inc., a Delaware corporation ("Co-Issuer", and collectively with OSI,
"Co-Issuers"), each having its principal office at 2202 N. West Shore Boulevard,
5th Floor, Tampa, Florida 33607, HSBC BANK USA, NATIONAL ASSOCIATION, a national
banking association duly organized and existing under the laws of the United
States of America and having a corporate trust office at 452 Fifth Avenue, New
York, New York 10018 ("Successor
Trustee") and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national
banking association duly organized and existing under the laws of
the United States of America and having its designated corporate trust office at
625 Marquette Avenue, MAC N9311-110, Minneapolis, MN 55479 ("Resigning
Trustee").

     

    RECITALS:

     

    WHEREAS,
there are currently $488,220,000 aggregate principal amount of the Co-Issuers'
10% Senior Notes due 2015 (the "Securities") outstanding under
an Indenture, dated as of June 14, 2007, by and among the Co-Issuers, the
Guarantors named therein and Resigning Trustee (the "Indenture");

     

    WHEREAS, the Co-Issuers appointed
Resigning Trustee as the Trustee, Registrar and Paying Agent under the
Indenture;

     

    WHEREAS,
Section 7.08 of the Indenture provides that the Trustee may at any time resign
with respect to the Securities by giving written notice of such resignation to
the Co-Issuer, effective upon the acceptance by a successor Trustee of its
appointment as a successor Trustee;

     

    WHEREAS,
Section 7.08 of the Indenture provides that, if the Trustee shall resign, the
Co-Issuers shall promptly appoint a successor Trustee;

     

    WHEREAS, Section 7.08 of the Indenture
provides that any successor Trustee appointed in accordance with the Indenture
shall deliver written acceptance to the Co-Issuers and to its predecessor
Trustee; thereupon, the resignation of the predecessor Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall have all rights, powers and duties of the predecessor
Trustee under the Indenture;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    WHEREAS, on December 5, 2008, the Resigning Trustee provided written
notice to the Co-Issuers that it is resigning as Trustee, Registrar and Paying
Agent under the Indenture;

     

    WHEREAS, the Co-Issuers desire
to appoint Successor Trustee as successor Trustee, Registrar and Paying Agent to
succeed Resigning Trustee in such capacities under the Indenture;
and

     

    WHEREAS,
Successor Trustee is willing to accept such appointment as Successor Trustee,
Registrar and Paying Agent under the Indenture;

     

    NOW, THEREFORE, the Co-Issuers,
Resigning Trustee and Successor Trustee, for and in consideration of the
premises and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, hereby consent and agree as
follows:

    1

     

    THE RESIGNING
TRUSTEE

     

    
      	
               
      

            	
              1.1

            	
              Pursuant
      to Section 7.08 of the Indenture, on December 5, 2008, the Resigning
      Trustee provided written notice to the Co-Issuers that Resigning Trustee
      is resigning as Trustee, Registrar and Paying Agent under the
      Indenture.

               

            

    

    
      	
               
      

            	
              1.2

            	
              Resigning
      Trustee hereby represents and warrants to Successor Trustee
      that:

               

            

    

    
      	
               
      

            	
              (a)

            	
              No
      covenant or condition contained in the Indenture has been waived
      by Resigning Trustee or, to the best knowledge of Responsible
      Officers of Resigning Trustee, by the Holders of the percentage in
      aggregate principal amount of the Securities required by the Indenture to
      effect any such waiver.

               

            

    

    
      	
               
      

            	
              (b)

            	
              There
      is no action, suit or proceeding pending or, to the best knowledge of
      Responsible Officers of Resigning Trustee threatened against Resigning
      Trustee before any court or any governmental authority arising out of any
      act or omission of Resigning Trustee as Trustee under the
      Indenture.

               

            

    

    
      	
               
      

            	
              (c)

            	
              As
      of the effective date of this Agreement, Resigning Trustee will hold no
      moneys or property under the
Indenture.

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (d)

            	
              Pursuant
      to Section 2.02 of the Indenture, Resigning Trustee has
      duly authenticated and delivered $488,220,000 aggregate principal
      amount of Securities that are outstanding as of the effective date
      hereof.

               

            

    

    
      	
               
      

            	
              (e)

            	
              The
      registers in which Resigning Trustee has registered and transferred
      registered Securities accurately reflect the amount of Securities issued
      and outstanding and the amounts payable thereon.

               

            

    

    
      	
               
      

            	
              (f)

            	
              Each
      person who so authenticated the Securities was duly elected, qualified and
      acting as an officer or authorized signatory of Resigning Trustee and
      empowered to authenticate the Securities at the respective times of such
      authentication and the signature of such person or persons appearing on
      such Securities is each such person's genuine signature.

               

            

    

    
      	
               
      

            	
              (g)

            	
              This
      Agreement has been duly authorized, executed and delivered on behalf of
      Resigning Trustee and constitutes its legal, valid and binding obligation,
      enforceable in accordance with its terms.

               

            

    

    
      	
               
      

            	
              (h)

            	
              To
      the best knowledge of Responsible Officers of the Resigning
      Trustee, no event has occurred and is continuing which is, or after
      notice or lapse of time would become, an Event of Default under
      Section 6.01 of the Indenture.

               

            

    

    
      	
               
      

            	
              1.3

            	
              Resigning
      Trustee hereby assigns, transfers, delivers and confirms to Successor
      Trustee all right, title and interest of Resigning Trustee in and to the
      trust under the Indenture and all the rights, powers and trusts of the
      Trustee under the Indenture. Resigning Trustee shall execute and deliver
      such further instruments and shall do such other things as Successor
      Trustee may reasonably require so as to more fully and certainly vest and
      confirm in Successor Trustee all the rights, powers and trusts hereby
      assigned, transferred, delivered and confirmed to Successor Trustee as
      Trustee, Registrar and Paying
Agent.

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              1.4

            	
              Resigning
      Trustee shall deliver to Successor Trustee, as of or promptly after the
      effective date hereof, all of the documents listed on Exhibit A
      hereto.

               

            

    

    
      	
               
      

            	
              1.5

            	
              Resigning
      Trustee acknowledges that it shall be subject to Trust Indenture Act
      Section 311(a)
      to the extent indicated therein in connection with the
      Indenture.

            	
               

            

    

     

    2

     

    THE
CO-ISSUERS

     

    
      	
               
      

            	
              2.1

            	
              Pursuant
      to Section 7.08 of the Indenture, the Co-Issuers hereby accept the
      resignation of Resigning Trustee as Trustee, Registrar and Paying Agent
      under the Indenture.

               

            

    

    
      	
               
      

            	
              2.2

            	
              The
      Co-Issuers hereby certify that they have duly authorized certain officers
      of the Co-Issuers to: (a) accept Resigning Trustee's resignation as
      Trustee, Registrar and Paying Agent under the Indenture; (b) appoint
      Successor Trustee as Trustee, Registrar and Paying Agent under the
      Indenture; and (c) execute and deliver such agreements and other
      instruments as may be necessary or desirable to effectuate the succession
      of Successor Trustee as Trustee. Registrar and Paying Agent under the
      Indenture.

               

            

    

    
      	
               
      

            	
              2.3

            	
              The
      Co-Issuers hereby appoint Successor Trustee as Trustee, Registrar and
      Paying Agent under the Indenture to succeed to, and hereby vest Successor
      Trustee with, all the rights, powers and duties of Resigning Trustee under
      the Indenture with like effect as if originally named as Trustee,
      Registrar and Paying Agent in the Indenture.

               

            

    

    
      	
               
      

            	
              2.4

            	
              The
      Co-Issuers hereby represent and warrant to Resigning Trustee and Successor
      Trustee that:

               

            

    

    
      	
               
      

            	
              (a)

            	
              Each
      of the Co-Issuers is duly and validly organized and existing
      pursuant to the laws of the State of Delaware.

               

            

    

    
      	
               
      

            	
              (b)

            	
              The
      Indenture was validly and lawfully executed and delivered by the
      Co-Issuers and the Securities were validly issued by the
      Co-Issuers.

               

            

    

    
      	
               
      

            	
              (c)

            	
              The
      Co-Issuers have performed or fulfilled prior to the date hereof, and will
      continue to perform and fulfill after the date hereof, each covenant,
      agreement, condition, obligation and responsibility under the Indenture.
      

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (d)

            	
              No
      event has occurred and is continuing which is, or after notice or lapse of
      time would become, an Event of Default under Section 6.01 of the
      Indenture.

               

            

    

    
      	
               
      

            	
              (e)

            	
              No
      covenant or condition contained in the Indenture has been waived by the
      Co-Issuers or, to the best of the Co-Issuers' knowledge, by Holders of the
      percentage in aggregate principal amount of the Securities required to
      effect any such waiver.

               

            

    

    
      	
               
      

            	
              (f)

            	
              There
      is no action, suit or proceeding pending or, to the best of the
      Co-Issuers' knowledge, threatened against the Co-Issuers before any court
      or any governmental authority arising out of any act or omission of the
      CoIssuers under the Indenture.

               

            

    

    
      	
               
      

            	
              (g)

            	
              This
      Agreement has been duly authorized, executed and delivered on behalf of
      the Co-Issuers and constitutes their legal, valid and binding obligation,
      enforceable in accordance with its terms.

               

            

    

    
      	
               
      

            	
              (h)

            	
              All
      conditions precedent relating to the appointment of Successor Trustee as
      successor Trustee under the Indenture have been complied with by the
      Co-Issuers.

            

    

     

    3

     

    THE SUCCESSOR
TRUSTEE

     

    
      	
               
      

            	
              3.1

            	
              Successor
      Trustee hereby represents and warrants to Resigning Trustee and to the
      Co-Issuers that:

               

            

    

    
      	
               
      

            	
              (a)

            	
              Successor
      Trustee is not disqualified under the provisions of Section 7.10 and is
      eligible under the provisions of Section 7.10 of the Indenture to act as
      Trustee under the Indenture.

               

            

    

    
      	
               
      

            	
              (b)

            	
              Successor
      Trustee satisfies the requirements of Trust Indenture Act Sections
      310(a)(1), (2) and (5), and is subject to Section 310(b) of the Trust
      Indenture Act.

            

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (c)

            	
              This
      Agreement has been duly authorized, executed and delivered on behalf of
      Successor Trustee and constitutes its legal, valid and binding obligation,
      enforceable in accordance with its terms.

               

            

    

    
      	
               
      

            	
              (d)

            	
              Each
      person acting on behalf of Successor Trustee is a duly authorized
      signatory of Successor Trustee.

               

            

    

    
      	
               
      

            	
              (e)

            	
              Promptly
      after the effective date of this Agreement, the Successor Trustee shall
      send a notice, substantially in the form of Exhibit B annexed hereto, to
      each Holder of the Securities in accordance with the provisions of Section
      7.08 of the Indenture.

               

            

    

    
      	
               
      

            	
              3.2

            	
              Successor
      Trustee hereby accepts its appointment as Successor Trustee, Registrar and
      Paying Agent under the Indenture and accepts the rights, powers, duties
      and obligations of Resigning Trustee as Trustee, Registrar and Paying
      Agent under the Indenture, upon the terms and conditions set forth
      therein, with like effect as if originally named as Trustee, Registrar and
      Paying Agent under the Indenture.

               

            

    

    
      	
               
      

            	
              3.3

            	
              References
      in the Indenture to "Corporate Trust Office" or other similar terms shall
      be deemed to refer to the principal corporate trust office of Successor
      Trustee, which is presently located at 452 Fifth Avenue, New York, New
      York 10018.

               

            

    

     

    4

     

    MISCELLANEOUS

     

    
      	
               
      

            	
              4.1

            	
              Except
      as otherwise expressly provided herein or unless the context otherwise
      requires, all terms used herein which are defined in the Indenture shall
      have the meanings assigned to them in the Indenture.

               

            

    

    
      	
               
      

            	
              4.2

            	
              This
      Agreement and the resignation, appointment and acceptance effected hereby
      shall be effective as of the opening of business on February 5,
      2009.

               

            

    

    
      	
               
      

            	
              4.3

            	
              Resigning
      Trustee hereby acknowledges payment or provision for payment in full by
      the Co-Issuers of compensation for all services rendered by Resigning
      Trustee in its capacity as Trustee, Registrar and Paying Agent under
      Section 7.07 of the Indenture and reimbursement in full by the Co-Issuers
      of the expenses, disbursements and advances

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              incurred
      or made by Resigning Trustee in its capacity as Trustee, Registrar and
      Paying Agent in accordance with the provisions of the Indenture. Resigning
      Trustee acknowledges that it relinquishes any lien it may have upon all
      property or funds held or collected by it to secure any amounts due it
      pursuant to the provisions of Section 7.07 of the Indenture. This
      Agreement does not constitute a waiver or assignment by the Resigning
      Trustee of any compensation, reimbursement, expenses or indemnity to which
      it is or may be entitled pursuant to the Indenture. The Co-Issuers
      acknowledge their obligation set forth in Section 6.05 of the Indenture to
      indemnify Resigning Trustee for, and to hold Resigning Trustee harmless
      against, any loss, liability or expense incurred without willful
      misconduct, negligence or bad faith on the part of Resigning Trustee and
      arising out of or in connection with the acceptance or administration of
      the trust evidenced by the Indenture (which obligation shall survive the
      execution hereof).

               

            

    

    
      	
               
      

            	
              4.4

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York, without regard to conflicts of laws principles
      thereof.

               

            

    

    
      	
               
      

            	
              4.5

            	
              This
      Agreement may be executed in any number of counterparts each of which
      shall be an original, but such counterparts shall together constitute but
      one and the same instrument.

               

            

    

    
      	
               
      

            	
              4.6

            	
              The
      Co-Issuers, Resigning Trustee and Successor Trustee hereby acknowledge
      receipt of an executed counterpart of this Agreement and the effectiveness
      thereof

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement of
Resignation, Appointment and Acceptance to be duly executed, all as of the day
and year first above written.

     

     

    OSI
RESTAURANT PARTNERS, LLC

    

    By: /s/
Dirk  Montgomery__

    Name:
Dirk A. Montgomery

    Title:  Chief
Financial Officer

    

    

    OSI
CO-ISSUER, INC.

    

    By: /s/
Dirk  Montgomery__

    Name:
Dirk A. Montgomery

    Title:  Chief
Financial Officer

    

    

    WELLS
FARGO BANK, NATIONAL ASSOCIATION

    as
Resigning Trustee

    

    By: /s/ Jayne
Sillman                                                   

    Name:
Jayne Sillman

    Title:
Vice President

    

    

    HSBC BANK
USA, NATIONAL ASSOCIATION

    as
Successor Trustee

    

    By: /s/ Vivian
Ly_______________________________

    Name:
Vivian Ly

    Title:
Assistant Vice President

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT A

     

    Documents
to be delivered to Successor Trustee

    

    1.         Copy
of Indenture.

    

    2.         File
of closing documents from initial issuance.

    

    
      	
               
      

            	
              3.

            	
              Copies
      of the most recent of each of the SEC reports delivered by the Co-Issuers
      pursuant to Section 4.03 of the
Indenture.

            

    

    

    
      	
               
      

            	
              4.

            	
              A
      copy of the most recent compliance certificate delivered pursuant to
      Section 4.04 of the Indenture.

            

    

    

    
      	
               
      

            	
              5.

            	
              Certified
      list of Holders, including certificate detail and all "stop transfers" and
      the reason for such "stop transfers" (or, alternatively, if there are
      a substantial number of registered
      Holders, the computer tape reflecting the identity of such
      Holders).

            	
               

            	
               

            

    

    

    
      	
               
      

            	
              6.

            	
              Copies
      of any official notices sent by the Trustee to all the Holders of the
      Securities pursuant
      to the terms of the Indenture during the past twelve months and a copy of
      the most recent Trustee's annual report to Holders delivered pursuant to
      Section 7.06 of the Indenture.

            	
               

            

    

    

    
      	
               
      

            	
              7.

            	
              List
      of any documents which, to the knowledge of Resigning Trustee, are
      required to be furnished but have not been furnished to Resigning
      Trustee.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT B

     

    NOTICE

     

    To the
Holders of.

    

    10%
Senior Notes due
2015                                                                                                                         CUSIP
# ________

     

    of OSI
RESTAURANT PARTNERS, LLC

    AND OSI
CO-ISSUER, INC.

    

    NOTICE IS I-IEREBY GIVEN, pursuant to
Section 7.08 of the Indenture (the "Indenture"), dated as of
June 14, 2007, by and among OSI Restaurant Partners, LLC, OSI Co-Issuer, Inc.
and Wells Fargo Bank, National Association, as Trustee, that Wells Fargo Bank,
National Association has resigned as Trustee, Registrar and Paying Agent under
the Indenture.

    

        Pursuant to
Section 7.08 of the Indenture, HSBC BANK USA, NATIONAL ASSOCIATION, a national
banking association duly organized and existing under the laws of the United
States of America, has accepted appointment as Trustee, Registrar and Paying
Agent under the Indenture. The address of the corporate trust office of the
successor Trustee is 452 Fifth Avenue, New York, New
York 10018.

    

        Wells Fargo
Bank, National Association's resignation as Trustee, Registrar and Paying Agent
and HSBC BANK USA, NATIONAL ASSOCIATION's appointment as successor Trustee,
Registrar and Paying Agent were effective as of the opening of business on
February 5, 2009.

    

        Dated:__________________________,
2009

     

    HSBC BANK
USA, NATIONAL ASSOCIATION,

    as
Trustee

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