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Exhibit 10.6

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RESEARCH AND LICENSE AGREEMENT

          This Agreement, effective as of August 10, 1998 (the “Effective Date”), is by and between:

          The South Alabama Medical Science Foundation (hereinafter “SAMSF”), a corporation organized
and existing under the laws of the State of Alabama and having a place of business at 307
University Boulevard, Mobile, Alabama 36688-0002.

AND

          Mindset Limited (hereinafter “CORPORATION”), a corporation involved in healthcare research,
organized and existing under the laws of the British Virgin Islands, having an office at 1 Beit
Eshel St., Old Katamon, Jerusalem 93227, ISRAEL.

RECITALS

          WHEREAS, Dr. Miguel A. Pappolla (hereinafter “the SAMSF Scientist”) and/or Dr. Blas
Frangione and Dr. Jorge Ghiso have made certain inventions relating to use of melatonin and
melatonin analogs in the prevention or treatment of amyloid-related disorders and in the use of
melatonin analogs as anti-oxidants, all as more particularly described in pending U.S. patent
applications owned by SAMSF and/or New York University, identified in annexed Appendix I and
forming an integral part hereof (hereinafter “the Pre-Existing Inventions”);

          WHEREAS, SAMSF is willing to perform the SAMSF Research Project (as hereinafter defined);

          WHEREAS, CORPORATION is prepared to sponsor the SAMSF Research Project;

          WHEREAS, CORPORATION has a non-exclusive license agreement with Mayo Foundation for Medical
Education and Research(“MAYO”), effective date October 24, 1997

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(hereinafter “the MAYO license”)
for the use of Tg 2576 transgenic mice and related mice as defined in the MAYO license as “Licensed
Technology” (hereinafter “the MAYO mice”) for the development of commercial technology, said
license being without the right to sublicense;

          WHEREAS, SAMSF desires to use the MAYO mice on a subcontractual basis in the course of the
SAMSF Research Project;

          WHEREAS, subject to the terms and conditions hereinafter set forth, SAMSF is willing to grant
to CORPORATION and CORPORATION is willing to accept from SAMSF a License (as hereinafter defined);

          NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the
parties hereto hereby agree as follows:

     1. Definitions

          a. “Calendar Year” shall mean any consecutive period of twelve months commencing on the first
day of January of any year.

          b. “Corporation Entity” shall mean any company or other legal entity (including affiliates or
subsidiaries) which controls, or is controlled by, or is under common control with, CORPORATION;
control means the holding of twenty five and one tenth percent (25.1%) or more of (i) the capital
and/or (ii) the voting rights and/or (iii) the right to elect or appoint directors.

          c. “Date of First Commercial Sale” shall have the meaning set forth in Section 7.b. hereof.

          d. “Field” shall mean research, development and testing within pharmaceutical, diagnostic and
biotechnological development programs in the field of Alzheimer’s Disease and other central nervous
system and neurodegenerative diseases.

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          e. “License” shall mean the exclusive worldwide license to practice the SAMSF Research
Technology (as hereinafter defined) for the development, manufacture, use, import and sale of the
Licensed Products (as hereinafter defined).

          f. “Licensed Products” shall mean all materials and technologies, including, without
limitation, rodents or other transgenic animals, products, drugs, therapeutic agents and
therapeutic methods covered by a claim of any unexpired SAMSF Patent (as hereinafter defined) which
has not been disclaimed or held invalid by a court of competent jurisdiction from which no appeal
has been or can be taken.

          g. “Net Sales” shall mean the CORPORATION’S and its sublicensees’ billing for Licensed
Products and Licensed Processes produced hereunder less the sum of the following:

	 	i)	 	all trade, case and quantity credits, discounts, refunds or rebates;
	 
	 	ii)	 	allowances or credits for returns;
	 
	 	iii)	 	sales taxes (including value-added tax).

          h. “SAMSF Know-How” shall mean the Pre-Existing Inventions and any information and materials
including, but not limited to, pharmaceutical, chemical, biological and biochemical products,
technical and non-technical data, materials, methods and processes and any drawings, plans,
diagrams, specifications, software, and/or other documents containing such information, discovered,
developed or acquired by, or on behalf of SAMSF investigators during
the term and in the course of the Research Project, with the exception of any such know-how
which is Corporation Know-How as hereinafter defined.

          i. “CORPORATION Know-How” shall mean any information and materials including, but not limited
to, pharmaceutical; chemical, biological and biochemical products,

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technical and non-technical
data, materials, methods and processes and any drawings, plans, diagrams, specification, software
and/or other documents containing such information discovered, developed or acquired by employees
of CORPORATION during the term and in the course of the Research Project.

          j. “SAMSF Patents” shall mean all United States and foreign patents and patent applications,
and any divisions, continuations, in whole or in part, reissues, renewals and extensions thereof,
and pending applications therefor:

          (1) which claim Pre-Existing Inventions and which are identified on annexed Appendix I; or

          (2) which claim inventions that are made, in whole or in part, as a result of the research
conducted through SAMSF during the term and in the course of the Research Project; with the
exception of all such patents which are CORPORATION Patents as hereinafter defined.

          k. “CORPORATION Patents” shall mean all United States and foreign patents and patent
applications, and any divisions, continuations, in whole or-in part, reissues, renewals and
extensions thereof, and pending applications therefor which claim inventions that are made, in
whole or in part, by CORPORATION.

          l. “Payment Term” shall mean the period of time commencing on the Effective Date and
continuing on a country-by-country basis, if not previously terminated under the terms of this
Agreement, for fifteen (15) years) from the Date of First Commercial Sale in
such country or until the expiration date of the last to expire of the SAMSF Patents whichever
shall be later.

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          m. “Research Period” shall mean the 3-year period commencing on the Effective Date hereof and
any extension thereof as to which SAMSF and CORPORATION shall mutually agree in writing.

          n. “Research Project” shall mean the investigations at SAMSF during the Research Period into
the Field under the supervision of the SAMSF Scientist in accordance with the research program (as
sponsored by CORPORATION), and described in annexed Appendix II, which forms an integral part
hereof.

          o. “Research Technology” shall mean all SAMSF Patents, SAMSF Know-How, CORPORATION Patents and
CORPORATION Know-How.

          p. “CORPORATION Research Technology” shall mean all CORPORATION Patents and all CORPORATION
Know-How.

          q. “SAMSF Research Technology” shall mean all SAMSF Patents and all SAMSF Know-How.

     2. Effective Date

          This Agreement shall be effective as of the Effective Date and shall remain in full force and
effect until expires or is terminated in accordance with Section 17 hereof.

     3. Performance of the Research Project

          a. In consideration of the sums to be paid to SAMSF as set forth in Section 4 below, SAMSF
undertakes to perform the Research Project under the supervision of the SAMSF Scientist during the
Research Period. If, during the Research Period the SAMSF Scientist shall cease to supervise the
Research Project, and SAMSF has not designated a replacement within 45
days, CORPORATION shall have the option to terminate its funding of the SAMSF Research
Project. CORPORATION shall promptly advise SAMSF in writing if CORPORATION so

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elects. Such
termination of funding pursuant to this Section 3.a. shall not terminate this Agreement. Nothing
herein contained shall be deemed to impose an obligation on SAMSF to find a replacement for the

          SAMSF Scientist.

          b. Nothing contained in this Agreement shall be construed as a warranty on the part of SAMSF
that any results or inventions will be achieved by the Research Project, or that the Research
Technology and/or any other results or inventions achieved by the Research Project, if any, are or
will be commercially exploitable and furthermore SAMSF makes no warranties whatsoever as to the
commercial or scientific value of the Research Technology and/or as to any results which may be
achieved in the Research Project.

          c. Within sixty (60) days after the end of each year of the Research Period, SAMSF shall
prepare a written report summarizing the results of the work conducted on the Research Project
during the preceding year, and submit such report to CORPORATION. SAMSF shall also prepare and
submit to CORPORATION quarterly summaries of such work conducted during the previous quarter. It
is hereby agreed that such written report and quarterly summaries shall include reports on all
clinical trials carried out during the relevant period.

          d. SAMSF will have full authority and responsibility for its part of the Research Project.
Students and SAMSF employees who work on the Research Project will do so as in those roles and not
as employees of CORPORATION.

          e. Corporation shall be free to undertake any development of technology not covered by the
Research Project. Corporation may elect to perform research and development in-house, through
other academic collaborations, or through outsourcing.

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     4. Funding of the Research Project

          a. As compensation to SAMSF for work to be performed on the SAMSF Research Project during the
Research Period, subject to any earlier termination of the Research Project pursuant to Section
3.a. hereof, CORPORATION will pay SAMSF the total sum of $79,000 (USD$) per year, payable in 2
equal installments of $39,500 each, commencing upon the Effective Date and according to the
following schedule:

$39,500 on the Effective Date, and

$39,500 after each six month (6) interval thereafter.

          b. Nothing in this Agreement shall be interpreted to prohibit SAMSF (or the SAMSF Scientists)
from obtaining additional financing or research grants for the Research Project from government or
not-for-profit agencies, which grants or financing may render all or part of the Research Project
and the results thereof subject to the patent rights of the U.S. Government and its agencies, as
set forth in Title 35 U.S.C. 200 et seq. so long as the terms of such grants or financing do not
preclude any results of the Research Project being included in the License.

     5. Title

          a. Subject to the terms specified hereunder, it is hereby agreed that all right, title and
interest, in and to the CORPORATION Research Technology, and in and to any drawings, plans,
diagrams, specifications, software, and other documents containing any of the CORPORATION Research
Technology shall vest solely in CORPORATION.

          b. Subject to the License granted to CORPORATION hereunder, it is hereby agreed that all
right, title and interest, in and to the SAMSF Research Technology, and in and to any drawings,
plans, diagrams, specifications, software, or other documents containing any of

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the SAMSF Research Technology, shall vest solely in SAMSF. At the request of SAMSF,
CORPORATION shall take all steps as may be necessary to give full effect to any said right, title
and interest of SAMSF including, but not limited to, the execution of any documents that may be
required to record such right, title and interest with the appropriate agency or government office.

     6. Patents and Patent Applications

          a. CORPORATION shall, simultaneously with the signing of this Agreement pay SAMSF a Fee in the
amount of $10,000 (USD$) related to all non-provisional patent applications that have been filed in
the name of Dr. Miguel Pappolla related to the use of melatonin and melatonin analogs in
Alzheimer’s Disease.

          b. SAMSF will promptly disclose to CORPORATION in writing any related inventions which
constitute potential SAMSF Patents.

          c. The Patent applications pending at the date hereof shall continue to be maintained by
Jaeckle Fleischmann & Mugel, LLP or such other patent counsel selected by SAMSF and CORPORATION.
All other patent applications shall be filed and prosecuted and maintained by Browdy and Neimark or
other patent counsel selected by SAMSF and CORPORATION. Copies of all such patent applications and
patent office actions shall be forwarded to CORPORATION. SAMSF and CORPORATION shall each also
have the right to have such patent applications and patent office actions independently reviewed by
other patent counsel separately retained by SAMSF or CORPORATION at the cost of SAMSF or
CORPORATION, as the case may be, and upon prior notice to and with the consent of the other party
hereto, such consent not to be unreasonably withheld.

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          d. The CORPORATION will promptly disclose to SAMSF any inventions which relate to the SAMSF
Research Technology and which are conceived by employees or consultants of CORPORATION.

          e. [Upon prior written approval by CORPORATION, all applications and proceedings with respect
to the SAMSF Patents shall be filed, prosecuted and maintained by SAMSF at the expense of
CORPORATION. Against the submission of invoices, CORPORATION shall reimburse SAMSF for all costs
and fees incurred by SAMSF during the team of this Agreement, in connection with the filing,
maintenance, prosecution and protection and the like of the SAMSF Patents.

          f. All applications and proceedings with respect to the CORPORATION Patents shall be filed,
prosecuted and maintained by CORPORATION at the expense of CORPORATION.

          g. SAMSF and CORPORATION shall assist, and cause their respective investigators to assist each
other, in assembling inventorship information and data for the filing and prosecution of patent
applications on inventions pertaining to the Research Technology.

          h. If, at any time during the term of this Agreement, CORPORATION decides that it is
undesirable, as to one or more countries, to prosecute or maintain any patents or patent
applications within the SAMSF Patents, it shall give prompt written (within thirty days (30))
notice thereof to SAMSF, and upon receipt of such notice, CORPORATION shall be released from its
obligations to bear all of the expenses to be incurred thereafter as to such countries in
conjunction with such patent(s) or patent application(s) and such patent(s) or application(s) shall
be deleted from the Research Technology and SAMSF shall be free to grant rights in and to such
subject matter deleted from the Research Technology in such countries to

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third parties, without further notice or obligation to CORPORATION, and the CORPORATION shall
have no rights whatsoever to exploit such subject matter deleted from the Research Technology in
such countries.

          i. Nothing herein contained shall be deemed to be a warranty by SAMSF

	 	i)	 	that CORPORATION can or will be able to obtain any patent or patents on any patent
application or applications in the CORPORATION Patents or any portion thereof, or that any of the
CORPORATION Patents will afford adequate or commercially worthwhile protection, or
	 
	 	ii)	 	that SAMSF can or will be able to obtain any patent or patents on any patent application
or applications in the SAMSF Patents or any portion thereof, or that any of the SAMSF Patents will
afford adequate or commercially worthwhile protection, or
	 
	 	iii)	 	that the manufacture, use, or sale of any element of the Research Technology or any
resulting Product will not infringe any patent(s) of a third party.

     7. Grant of License

          a. Subject to the terms and conditions hereinafter set forth and subject to all United States
Government rights whether now existing or arising after the date hereof, SAMSF hereby grants to
CORPORATION and CORPORATION hereby accepts from SAMSF the License.

          b. The License granted to CORPORATION in Section 7.a. hereto shall commence upon the Effective
Date and shall remain in force on a country-by-country basis, if not previously terminated under
the terms of this Agreement, for fifteen (15) years from the First Commercial Sale in such country
or until the expiration date of the last to expire of the SAMSF Patents whichever shall be later.

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          c. CORPORATION shall be entitled to grant sublicenses under the License on terms and
conditions in compliance and not inconsistent with the terms and conditions of this Agreement
(except that the rate of royalty may be at higher rates than those set forth in this Agreement) (i)
to a Corporation Entity or (ii) to other third parties for consideration and in an arms-length
transaction. All sublicenses shall only be granted by CORPORATION under a written agreement a copy
of which shall be provided by CORPORATION to SAMSF as soon as practicable after the signing
thereof. Each sublicense granted by CORPORATION hereunder shall be subject and subordinate to the
terms and conditions of any License Agreement and shall contain (inter-alia) the following
provisions:

          (1) the sublicense shall expire automatically on the termination of the License;

          (2) the sublicense shall not be assignable, in whole or in part;

          (3) the sublicensee shall not grant further sublicenses; and

          (4) both during the term of the sublicense and thereafter the sublicensee shall agree to a
confidentiality obligation similar to that imposed on CORPORATION in Section 10 below, and that the
sublicensee shall impose on its employees, both during the terms of their employment and
thereafter, a similar undertaking of confidentiality; and

          (5) the sublicense agreement shall include the text of Sections 15 and 16 of this Agreement
and shall state that SAMSF is third party beneficiary of such sublicense agreement for the purpose
of enforcing such indemnification and insurance provisions.

          d. SAMSF reserves the right to use and distribute tangible research products to third parties
for non-commercial, research use.

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     8. Payments for License

          a. In consideration for the License granted herein, and during the Payment Term, with respect
to each Licensed Product, CORPORATION shall pay to SAMSF a royalty of *** of the Net Sales of
CORPORATION or of Corporation Entity or of a licensee or sublicensee of CORPORATION or Corporation
Entity. CORPORATION shall inform SAMSF in writing of the Date of First Commercial Sale with
respect to each Licensed Product in each country as soon as practicable after making of each such
first commercial sale.

          b. For the purpose of computing the royalties due to SAMSF hereunder, the year shall be
divided into two parts ending on June 30 and December 31. Not later than ninety (90) days after
each December and June in each Calendar Year during the Payment Term, CORPORATION shall submit to
SAMSF a full and detailed report of royalties or payments due SAMSF under the terms of this
Agreement for the preceding half year (hereinafter “the Half-Year Report”), setting forth the Net
Sales upon which such royalties are computed and including at least

	 	i)	 	the quantity of Products used, sold, transferred or otherwise disposed of;
	 
	 	ii)	 	the selling price of each Product;
	 
	 	iii)	 	the deductions permitted under subsection 1.g. hereof to arrive at Net Sales; and
	 
	 	iv)	 	the royalty computations and subject of payment.

If no royalties or other payments are due, a statement shall be sent to SAMSF stating such fact.
Payment of the full amount of any royalties or other payments due to SAMSF for the preceding half
year shall be made within ninety (90) days of each Half-Year Report on royalties and

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payments. CORPORATION shall keep for a period of at least six (6) years after the date of entry,
full, accurate and complete books and records consistent with sound business and accounting
practices and in such form and in such detail as to enable the determination of the amounts due to
SAMSF from CORPORATION pursuant to the terms of this Agreement.

          c. Within ninety (90) days after the end of each Calendar Year, commencing on the Date of
First Commercial Sale CORPORATION shall furnish SAMSF with a report (hereinafter “the Annual
Report”), certified by any CORPORATION’S President or Chief Financial Officer, relating to the
royalties and other payments due to SAMSF pursuant to this Agreement in respect of the Calendar
Year covered by such Annual Report and containing the same details as those specified in Section
8.b. above in respect of the Half-Year Report.

          d. On reasonable notice and during regular business hours, SAMSF, or the authorized
representative of SAMSF shall each have the right to inspect the books of accounts, records and
other relevant documentation of CORPORATION or of Corporation Entity and the licensees or
sublicensees of CORPORATION insofar as they relate to the production, marketing and sale of the
Products, in order to ascertain or verify the amount of royalties and other payments due to SAMSF
hereunder, and the accuracy of the information provided to SAMSF in the aforementioned reports.
Should such inspection lead to the discovery of a greater than ten percent (10%) discrepancy in
reporting to SAMSF’s detriment, CORPORATION agrees to pay the full cost of such inspection.

     9. Method of Payment

          a. Royalties and other payments due to SAMSF hereunder shall he paid to SAMSF in United States
dollars(USD$). Any such royalties on or other payments relating to transactions in a foreign
currency shall be converted into United States dollars(USD$) based on

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the closing buying rate of the Morgan Guaranty Trust Company of New York applicable to
transactions under exchange regulations for the particular currency on the last business day of the
accounting period for which such royalty or other payment is due.

          b. CORPORATION shall be responsible for payment to SAMSF of all royalties due on sale,
transfer or disposition of Products by Corporation Entity or by the licensees of CORPORATION or of
Corporation Entity.

	 	10.	 	Confidential Information

          a. Except as otherwise provided in Section 10.c and Section 11 below, [SAMSF shall maintain
any and all of the Research Technology in confidence and shall not release or disclose any tangible
or intangible component thereof to any third party without first receiving the prior written
consent of CORPORATION to said release or disclosure.]

          b. Except as otherwise provided in Section 10.c. and 10.d. below, CORPORATION shall maintain
any and all of the SAMSF Research Technology in confidence and shall not release or disclose any
tangible or intangible component thereof to any third party without first receiving the prior
written consent of SAMSF to said release or disclosure.

          c. The obligations of confidentiality on SAMSF and CORPORATION set forth in Section 10a. and
b. respectively shall not apply to any component of the Research Technology which was part of the
public domain prior to the Effective Date of this Agreement or which becomes a part of the public
domain not due to some unauthorized act by or omission of the receiving party after the effective
date of this Agreement or which was disclosed to the receiving party by a third party who has the
right to make such disclosure.

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          d. The provisions of Section 10.b. notwithstanding, CORPORATION may disclose the SAMSF
Research Technology to third parties who need to know the same in order to secure regulatory
approval for the sale of Products.

     11. Publication

          a. Prior to submission for publication of a manuscript describing the results of any aspect of
the Research Project, SAMSF shall send CORPORATION a copy of manuscript to be submitted, and shall
allow CORPORATION thirty (30) days from the date of such mailing to determine whether manuscript
contains such subject matter for which patent protection should be sought prior to publication of
manuscript, for the purpose of protecting an invention made by the SAMSF Scientist during the
course and within the term of the Research Project. Should CORPORATION believe the subject matter
of manuscript contains a patentable invention, then, prior to the expiration of such 30-day period
from the mailing date of manuscript to CORPORATION by SAMSF and CORPORATION shall give written
notification to the sender of the manuscript of its determination that such manuscript contains
patentable subject matter for which patent protection should be sought.

          b. After the expiration of such 30-day period from the date of mailing such manuscript to
CORPORATION, unless SAMSF has received the written notice specified above from CORPORATION, SAMSF
shall be free to submit manuscript for publication to publish the disclosed research results in any
manner consistent with academic standards.

          c. Upon receipt of such written notice from CORPORATION, SAMSF will thereafter delay
submission of the manuscript for an additional period of up to sixty (60) days to permit the
preparation and filing in accordance with Section 6. hereof of a U.S. patent application by
CORPORATION on the subject matter to be disclosed in such manuscript. After

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expiration of such 60-day period, or the filing of a patent application on each such
invention, whichever shall occur first, SAMSF shall be free to submit the manuscript and to publish
the disclosed results.

          d. All such publications shall within the body of the same contain a written acknowledgment of
CORPORATION’s support of the Research Project. In addition, Dr. Daniel Chain and any other
employees of CORPORATION involved in the Research Project shall be recognized in any such
publication as co-author(s) or in a written acknowledgment as shall be determined on a case by case
in accordance with accepted principles for determining authorship of scholarly publications.

     12. Infringement of CORPORATION Patents

          a. In the event that the SAMSF acquires information that a third party is infringing one or
more of the CORPORATION Patents, shall promptly notify CORPORATION in writing of such infringement.

          b. SAMSF shall cooperate and shall endeavor to cause the SAMSF Scientist to cooperate with
CORPORATION at the request of CORPORATION, including by giving testimony and producing documents
lawfully requested, in the prosecution of any suit by CORPORATION for infringement of the
CORPORATION Patents; provided, that CORPORATION shall pay all reasonable expenses (including
attorneys’ fees) incurred by SAMSF in connection with such cooperation.

     13. Infringement of SAMSF Patent

          a. In the event a party to this Agreement acquires information that a third party is
infringing one or more of the SAMSF Patents, the party acquiring such information shall promptly
notify the other parties to the Agreement in writing of such infringement.

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          b. In the event of an infringement of a SAMSF Patent, CORPORATION shall be privileged but not
required to bring suit against the infringer. Should CORPORATION elect to bring suit against an
infringer and SAMSF is joined as a party plaintiff in any such suit, SAMSF shall have the right to
approve the counsel selected by CORPORATION to represent CORPORATION and SAMSF such approval shall
not be unreasonably withheld. The expenses of such suit or suits that CORPORATION elects to bring,
including any expenses of SAMSF incurred in conjunction with the prosecution of such suit or the
settlement thereof, shall be paid for entirely by CORPORATION and CORPORATION shall hold SAMSF
free, clear and harmless from and against any and all costs of such litigation, including
attorneys’ fees. CORPORATION shall not compromise or settle such litigation without the prior
written consent of SAMSF which shall not be unreasonably withheld.

          c. In the event CORPORATION exercises the right to sue herein conferred, it shall have the
right to first reimburse itself out of any sums recovered in such suit or in settlement thereof for
all costs and expenses of every kind and character, including reasonable attorneys’ fees,
necessarily involved in the prosecution of any such suit, and if after such reimbursement, any
funds shall remain from said recovery, CORPORATION shall promptly pay to SAMSF an amount equal to
twenty-five percent (25%) of such remainder or four and one-half percent of Net Sales of the
infringer, whichever is lesser, and CORPORATION shall be entitled to receive and retain the balance
of the remainder of such recovery.

          d. If CORPORATION does not bring suit against said infringer pursuant to Section 13.b. herein,
or has not commenced negotiations with said infringer for discontinuance of said infringement,
within ninety (90) days after receipt of such notice, SAMSF shall have the right, but shall not be
obligated, to bring suit for such infringement. Should SAMSF elect to

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bring suit against an infringer and CORPORATION is joined as a party plaintiff in any such
suit, SAMSF shall hold CORPORATION free, clear and harmless from and against any and all costs and
expenses of such litigation, including attorneys’ fees. If CORPORATION has commenced negotiations
with an alleged infringer of the SAMSF patent for discontinuance of such infringement within such
90-day period, CORPORATION shall have an additional ninety (90) days from the termination of such
initial 90-day period to conclude its negotiations before SAMSF may bring suit for such
infringement. In the event SAMSF brings suit for infringement of any SAMSF Patent, SAMSF shall
have the right to first reimburse itself out of any sums recovered in such suit or settlement
thereof for all costs and expenses of every kind and character, including reasonable attorneys’
fees necessarily involved in the prosecution of such suit, and if after such reimbursement, any
funds shall remain from said recovery, SAMSF shall promptly pay to CORPORATION an amount equal to
fifty percent (50%) of such remainder and SAMSF shall be entitled to receive and retain the balance
of the remainder of such recovery.

          e. Each party shall always have the right to be represented by counsel of its own selection in
any suit for infringement of the SAMSF Patents instituted by any other party to this Agreement
under the terms hereof. The expense of such counsel shall be borne by such party.

          f. CORPORATION agrees to cooperate fully with SAMSF at the request of SAMSF, including, by
giving testimony and producing documents lawfully requested in the prosecution of any suit by SAMSF
for infringement of the SAMSF Patents; provided, SAMSF shall pay all reasonable expenses (including
attorneys’ fees) incurred by CORPORATION in connection with such cooperation.

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     14. MAYO Mice and Clinical Trials

          a. All Investigational New Drug applications(IND’s) and All New Drug Applications (NDA’s)
submitted to any appropriate regulatory agency relating to Research Technology will be submitted in
the name of CORPORATION. CORPORATION shall assist SAMSF Scientist with such filing. SAMSF shall
not carry out any experiments on the MAYO mice before the filing of an IND for melatonin.

          b. SAMSF will request MAYO for its agreement to the termination of its academic research
agreement with regard to three quarters of the MAYO-mice subject thereto and the transfer of such
mice to CORPORATION to be held by it under CORPORATION’s MAYO License (thereby creating two
separate mouse colonies). If MAYO shall agree, then SAMSF shall not use the mice remaining subject
to its academic research agreement for any purpose which is part of, or connected in any way with,
the Research Project. If MAYO should not agree, then CORPORATION will transfer a colony of its
licensed mice to SAMSF for use in the Research Project only and SAMSF shall not use the mice
subject to its academic research agreement in connection with the Research Project.

          c. All royalties or other payments due to MAYO under the MAYO license for products developed
using the MAYO mice in the course of the Research Project will be paid by CORPORATION.

          d. The SAMSF Scientist shall be the chief coordinator of all clinical trials. CORPORATION
shall consult with the SAMSF scientist with regard to the timing and selection of sites for
conducting clinical trials. SAMSF shall not commence or participate in any clinical trials
relating to the Research Technology without the express written approval of CORPORATION.

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          e. If the National Institute of Health or other not-for-profit funding source gives SAMSF
and/or the SAMSF Scientist a grant for a pilot Phase I clinical trial for melatonin on not more
than 45 patients, such trial shall take place at SAMSF, New York University, or other location as
determined by the chief coordinator. Results from this trial will be published after full
completion of the study; preliminary results will be published in abstract form only.

          f. Nothing in this section 14 shall apply to clinical trials carried out by any sublicensee of
corporation.

          g. All MAYO mice covered by CORPORATION’S MAYO License shall remain under the control of
CORPORATION and shall not become the property of SAMSF. If CORPORATION shall give written notice
to SAMSF of the termination of the MAYO license SAMSF shall forthwith deliver up to CORPORATION all
MAYO mice covered by the MAYO License in the possession of SAMSF.

     15. Liability and Indemnification

          a. CORPORATION shall indemnify, defend and hold harmless SAMSF, its trustees, officers,
medical and professional staff, employees, students and agents and their respective successors,
heirs and assigns (the “Indemnitees”), against any liability, damage, loss or expense (including
reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon the Indemnitees
or any one of them in connection with any claims, suits, actions, demands or judgments (i) arising
out of the design, production, manufacture, sale, use in commerce or in human clinical trials,
lease, or promotion by CORPORATION or by licensees or sublicensees, Corporation Entity or agent of
CORPORATION of any Licensed Product or Licensed Process, process or service relating to, or
developed pursuant to, this Agreement or (ii) arising out of any other activities to be carried out
pursuant to this Agreement.

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          b. With respect to an Indemnitee, CORPORATION’s indemnification obligation under subsection a.
of this Section 15 shall not apply to any liability, damage, loss or expense to the extent that it
is attributable to the negligent activities or willful default of any such Indemnitee.

          c. CORPORATION agrees, at its own expense, to provide attorneys reasonably acceptable to SAMSF
to defend against any actions brought or filed against any Indemnitee with respect to the subject
of indemnity to which such Indemnitee is entitled hereunder, whether or not such actions are
rightfully brought and CORPORATION shall have the conduct of the defense of any such actions.

     16. Security for Indemnification

          a. At such time as any Licensed Product, process or service relating to, or developed pursuant
to, this Agreement is being commercially distributed or sold (other than for the purpose of
obtaining regulatory approvals) by CORPORATION or by a licensee or sublicensee, Corporation Entity
or agent of CORPORATION, CORPORATION shall at its sole costs and expense, procure and maintain
policies of comprehensive general liability insurance in amounts not less than $1,000,000 per
incident and $5,000,000 annual aggregate and naming the Indemnitees as additional insureds. Such
comprehensive general liability insurance shall provide (i) product liability coverage and (ii)
broad form contractual liability coverage for CORPORATION’S indemnification under Section 15 of
this Agreement. If CORPORATION elects to self-insure all or part of the limits described above
(including deductibles or retentions which are in excess of $250,000 annual aggregate) such
self-insurance program must be acceptable to SAMSF. The minimum amounts of insurance coverage
required under this Section

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16 shall not be construed to create a limit of CORPORATION’s liability with respect to its
indemnification under Section 15 of this Agreement.

          b. CORPORATION shall provide SAMSF with written evidence of such insurance upon request of
SAMSF. CORPORATION shall provide SAMSF with written notice at least ten (10) days prior to the
cancellation, non-renewal or material change in such insurance; if CORPORATION does not obtain
replacement insurance providing comparable coverage within such sixty (60) day period, SAMSF shall
have the right to terminate this Agreement effective at the end of such sixty (60) day period
without notice or any additional waiting periods.

          c. CORPORATION shall maintain such comprehensive general liability insurance beyond the
expiration or termination of this Agreement during (i) the period that any product, process or
service, relating to, or developed pursuant to, this Agreement is being commercially distributed or
sold (other than for the purpose of obtaining regulatory approvals) by CORPORATION or by a
licensee, Corporation Entity or agent of CORPORATION and (ii) a reasonable period after the period
referred to in (c)(i) above which in no event shall be less than fifteen (15) years.

     17. Expiry and Termination

          a. Unless earlier terminated pursuant to this Section 17, this Agreement shall expire upon the
expiration of the Payment Term in all countries.

          b. For the purpose of this Section 17, SAMSF shall be considered to be one “party” to this
Agreement and CORPORATION the other party. At any time prior to expiration of this Agreement,
either party may terminate this Agreement forthwith for cause, as “cause” is described below, by
giving written notice to the other party. Cause for termination by one party

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of this Agreement shall be deemed to exist if the other party materially breaches or defaults
in the performance or observance of any of the provisions of this Agreement and such breach or
default is not cured within sixty (60) days or, in the case of failure to pay any amounts due
hereunder, thirty (30) days (unless otherwise specified herein) after the giving of notice by the
other party specifying such breach or default, or if either party discontinues its business or
becomes insolvent or bankrupt.

          c. Any amount payable hereunder by one of the parties to the other, which has not been paid by
the date on which such payment is due, shall bear interest from such date until the date on which
such payment is made, at the rate of two percent (2%) per annum in excess of the prime rate
prevailing at the Citibank, N.A., in New York, during the period of arrears and such amount and the
interest thereon may be set off against any amount due, whether in terms of this Agreement or
otherwise, to the party in default by any non-defaulting party.

          d. Upon termination of this Agreement for any reason prior to expiration as set forth in
Section 17.a. hereof, all rights in and to the SAMSF Research Technology shall revert to SAMSF, and
CORPORATION shall not be entitled to make any further use whatsoever of the SAMSF Research
Technology.

          e. Termination of this Agreement shall not relieve either party of any obligation to the other
party incurred prior to such termination.

          f. Sections 5, 10, 15, 16, 17 and 21 hereof shall survive and remain in full force and effect
after any termination, cancellation or expiration of this Agreement.

     18. Representation and Warranties by CORPORATION

          CORPORATION hereby represents and warrants to SAMSF as follows:

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          (1) CORPORATION is a corporation duly organized, validly existing and in good standing under
the laws of the British Virgin Islands. CORPORATION has been granted all requisite power and
authority to carry on its business and to own and operate its properties and assets. The
execution, delivery and performance of this Agreement have been duly authorized by the Board of
Directors of CORPORATION.

          (2) There is no pending or, to CORPORATION’s knowledge, threatened litigation involving
CORPORATION which would have any effect on this Agreement or on CORPORATION’s ability to perform
its obligation hereunder; and

          (3) There is no indenture, contract, or agreement to which CORPORATION is a party or by which
CORPORATION is bound which prohibits or would prohibit the execution and delivery by CORPORATION of
this Agreement or the performance or observance by CORPORATION of any term or condition of this
Agreement.

     19. Representations and Warranties by SAMSF

          SAMSF hereby represents and warrants to CORPORATION as follows:

          (1) SAMSF is a corporation duly organized, validly existing and in good standing under the
laws of the State of Alabama. SAMSF has been granted all requisite power and authority to carry on
its business and to own and operate its properties and assets. The execution, delivery and
performance of this Agreement have been duly authorized by the Board of Trustees of SAMSF.

          (2) There is no pending or, to SAMSF’s knowledge, threatened litigation involving SAMSF which
would have any effect on this Agreement or on SAMSF’s ability to perform its obligations hereunder;
and

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          (3) There is no indenture, contract, or agreement to which SAMSF is a party or by which SAMSF
is bound which prohibits or would prohibit the execution and delivery by SAMSF of this Agreement or
the performance or observance by SAMSF of any term or condition of this Agreement.

	 	20.	 	No Assignment

          Except as specifically provided herein, neither CORPORATION nor SAMSF shall have the right to
assign, delegate or transfer at any time to any party, in whole or in part, any or all of the
rights, duties and interest herein granted without first obtaining the written consent of the other
to such assignment.

     21. Use of Name

          Without the prior written consent of any of the other party, neither CORPORATION nor SAMSF
shall use the name of any of the others or any adaptation thereof or of any staff member, employee
or student of the others:

          i) in any product labeling, advertising, promotional or sales literature;

          ii) in connection with any public or private offering or in conjunction with any application
for regulatory approval, unless disclosure is otherwise required by law, in which case either of
the parties may make factual statements concerning the Agreement or file copies of the Agreement
after providing the others with an opportunity to comment and reasonable time within which to do so
on such statement in draft.

Except as provided herein, neither SAMSF nor CORPORATION will issue public announcements about this
Agreement or the status or existence of the Research Project without prior written approval of the
other.

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     22. Miscellaneous

          a. If any provision of this Agreement is determined to be invalid or void, the remaining
provisions shall remain in effect.

          b. All payments or notices required or permitted to be given under this Agreement shall be
given in writing and shall be effective when either personally delivered or deposited, postage
prepaid, with a national postal service by registered or certified mail (airmail if international),
addressed as follows:

          To SAMSF:

South Alabama Medical Science Foundation

P.O. BOX U 1060

Mobile, Alabama 36688-0002

Attention: Dr. Samuel J. Strada

          To CORPORATION:

MINDSET LTD.

1 Beit Eshel St.

Old Katamon

Jerusalem 93227, ISRAEL

Attention: Dr. Daniel Chain

or such other address or addresses as any party may hereafter specify by written notice to the
others. Such notices and communications shall be deemed effective on the date of delivery or
fourteen (14) days after having been sent by registered or certified mail, whichever is earlier.

          c. This Agreement (and the annexed Appendices) constitute the entire Agreement between the
parties and no variation, modification or waiver of any of the terms or conditions hereof shall be
deemed valid unless made in writing and signed by all parties hereto. This Agreement supersedes
any and all prior agreements or understandings, whether oral or written, between CORPORATION and
SAMSF.

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          d. No waiver by any party of any non-performance or violation by any other party of any of the
covenants, obligations or agreements of such other party hereunder shall be deemed to be a waiver
of any subsequent violation or non-performance of the same or any other covenant, agreement or
obligation, nor shall forbearance by any party be deemed to be a waiver by such party of its rights
or remedies with respect to such violation or non-performance.

          e. The descriptive headings contained in this Agreement are included for convenience and
reference only and shall not be held to expand, modify or aid in the interpretation, construction
or meaning of this Agreement.

          f. It is not the intent of the parties to create a partnership or joint venture or to assume
partnership responsibility or liability. The obligations of the parties shall be limited to those
set out herein and such obligations shall be several and not joint.

          g. Neither party shall be responsible for delay or failure in performance of any of the
obligations imposed by this Agreement, provided such failure shall be occasioned by fire, flood,
explosion, lightning, windstorm, earthquake, subsidence of soil, court order of government
interference, civil commotion, riot, war or by any cause of like or unlike nature beyond the
reasonable control and without fault or negligence of such party.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date
and year first above written.

	 	 	 	 	 	 	 
	 	 	SOUTH ALABAMA MEDICAL SCIENCE FOUNDATION  
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Illegible	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President	 	 
	 

	 	Date:
	 	August 19, 1998	 	 

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	 	 	MINDSET, LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Daniel Chain	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:

Date:
	 	President

August 5th 1998	 	 

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Appendix I

U.S. Patent Application Serial No. 08/801,301, filed February 18, 1997 entitled USE OF MELATONIN TO
PREVENT CYTOTOXIC EFFECTS OF AMYLOID PROTEIN by Pappolla.

U.S. Provisional Patent Application Serial No. 60/075,555 filed February 23, 1998 entitled-USE OF
3-INDOL-PROPRIONIC ACID by Pappolla.

U.S. Provisional Patent Application Serial No. 60/079,349 filed March 25, 1998 entitled INHIBITION
OF ALZHEIMER BETA-FIBRILLOGENESIS BY MELATONIN by Pappolla.

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PROJECT DESCRIPTION

Study of melatonin as neuroprotective and anti-amyloidogenic agent in the Alzheimer’s mouse
model Tg2576 (Hsiao’s mouse)

Multiple lines of evidence support the hypothesis that the widespread neuronal degeneration that
characterizes Alzheimer’s disease is the result of the neurotoxic properties of the Alzheimer’s
amyloid peptide (AB). We have recently reported that melatonin, a hormone with a proposed role in
the aging process, prevents death and oxidative damage of cultured neuronal cells exposed to AB.
We have also discovered that the hormone interacts with the Alzheimer’s amyloid peptide and
inhibits the spontaneous increase in beta-sheets structures and the formation of amyloid fibrils.
Because the ability of AB to promote neurodegeneration is known to correlate with the amount of
beta-sheets and amyloid fibrils, it appears the phenomenon of neuroprotection depends on
synergistic antioxidant and anti-amyloidogenic properties of this hormone

Mindset sponsored research agreement will subsidised the expenses to determine whether the novel in
vitro effects of melatonin can be verified in an in vivo paradigm. To accomplish this goal, we
will treat tg+ mice, known to develop Alzheimer-like neuropathology and behavioral abnormalities
with two doses of melatonin and conduct 1) behavioral, 2) neuropathologic and 3) biochemical
studies in order to determine whether the in vitro effects can be corroborated in vivo. Procedural
details of each of these objectives are described in the NIH grant application provided to Mindset
under our confidentiality agreement.

Time table. A total of 150 mice will be employed in this study. Each experimental group
will include 25 mice. We have already achieved a breeding nucleus which will make the first two
groups of mice available by August 1998. We plan to stagger two groups of 25 mice each, every two
months thereafter as follows.

August 1998... 50 mice

October 1998.. 50 mice

December 1998. 50 mice

Each group will begin treatment at age 4 months. Behavioral testing will be performed at ages
12-14 and 21-24 months. Neuropathologic and biochemical studies will begin immediately after the
firsts groups are sacrificed. Prior to this time, we will standardize and optimize the various
biochemical, imaging and behavioral methods to be employed. Preliminary pharmacokinetics studies
will be also pursued during the course of the investigation. We estimate to complete the project
approximately 6 months after the last groups of mice have been sacrificed at 24 months of age
(approximately July-August 2001).

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AMENDMENT I

TO THE RESEARCH AND LICENSE AGREEMENT

     THIS AMENDMENT I TO THE RESEARCH AND LICENSE AGREEMENT (hereinafter the “Amendment”) is
effective as of the last date of execution by the parties hereto and is made by and between the
South Alabama Medical Science Foundation (hereinafter “SAMSF”), with an address of Box U-1060, 307
University Boulevard, Mobile, Alabama 36688-0002 and Mindset Biopharmaceuticals, Inc. (hereinafter
“Mindset Biopharmaceuticals”) with an address of Kiryat Mada 5, Luz Building, Har Hotzfim, POB
45032, Jerusalem 91450, ISRAEL.

     WHEREAS, Mindset Limited and SAMSF have entered into a Research and License Agreement dated
August 10, 1998, (hereinafter the “Agreement”);

     WHEREAS, Mindset Biopharmaceuticals, Inc. is a successor in interest to Mindset Limited and
has authority to amend the Agreement behalf of Mindset Limited; and

     WHEREAS, SAMSF and Mindset Biopharmaceuticals wish to clarify and/or amend their respective
rights and responsibilities under the Agreement;

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, SAMSF
and Mindset Biopharmaceuticals hereby agrees to amend and do hereby amend the Agreement as follows:

1. Section7.d of the Agreement is hereby deleted and replaced in its entirety with the following
new Section 7.d:

     7.d. SAMSF reserves the right to use and practice the SAMSF Research Technology
for its own non-commercial, educational or research purposes. SAMSF further
reserves the right to distribute any materials considered SAMSF Research Technology
to third parties for non-commercial, research use. Any such distribution by SAMSF
will be accompanied by a notice that the distributed materials maybe subject to the
rights of CORPORATION under this Agreement.

2. All other terms and conditions of the Agreement will remain in full force and effect.

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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized
representatives on the dates written below.

	 	 	 	 	 
	South Alabama Medical Science Foundation

	 	Mindset Biopharmaceuticals, Inc.
	 	 
	 
	 	 	 	 
	     /s/ Samuel J. Strada

	 	     /s/ Daniel Chain	 	 
	 

	 	 	 	 
	Samuel J. Strada, Ph.D.

	 	Daniel Chain, Ph.D.	 	 
	President

	 	Chairman/CEO	 	 
	 
	 	 	 	 
	     9-7-00

	 	     9-11-00	 	 
	 

	 	 

	 	 
	Date

	 	Date	 	 

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AMENDMENT II

TO THE RESEARCH AND LICENSE AGREEMENT

     THIS AMENDMENT, effective as of September 1, 2002, is by and between the SOUTH ALABAMA MEDICAL
SCIENCE FOUNDATION (“SAMSF”), a corporation organized and existing under the laws of the State of
Alabama, MINDSET LIMITED, a corporation organized and existing under the laws of the British Virgin
Islands and MINDSET BIOPHARMACEUTICALS (USA), INC. (''CORPORATION”), a Delaware corporation having
an address at 1450 Broadway, New York, NY 10018.

RECITALS

     WHEREAS, SAMSF and Mindset Limited entered into a Research and License Agreement with an
effective date of August 10, 1998 (the “Principal Agreement”); and

     WHEREAS, by a document entitled “Amendment I to the Research and License Agreement” with an
effective date of October 22, 2000 (the “Amendment I”) made between SAMSF and CORPORATION,
incorrectly described therein as “Mindset Biopharmaceuticals, Inc.” and which was a successor in
interest to Mindset Limited by virtue of an Assignment and Assumption Agreement made as of May 18,
2000 between said Mindset Limited and CORPORATION, the parties thereto amended and/or clarified
their respective rights and responsibilities under the Principal Agreement, said Principal
Agreement and said Amendment I collectively being referred to hereinafter as the “Modified
Principal Agreement”; and

     WHEREAS, Mindset Limited has assigned the benefit and obligations of the Principal Agreement
to CORPORATION; and

     WHEREAS, the parties hereto wish to clarify and amend the Modified Principal Agreement.

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the
parties hereto hereby agree as follows:

	1.	 	Definitions. Capitalized terms not otherwise defined herein shall have the same
respective meanings given to them by the Modified Principal Agreement.
	 
	2.	 	It is the parties’ understanding that all rights conferred by SAMSF under the Modified
Principal Agreement presently rest solely with CORPORATION. It is the parties’ further
understanding that no sublicenses have been granted by CORPORATION, by Mindset Limited or by
any other entity. It is the parties’ further understanding that the Modified Principal
Agreement confers no rights to Mindset Limited or to any other Corporation Entity, except to
the extent that a Corporation Entity may secure rights by virtue of a sublicense from
CORPORATION in accordance with the provisions of Section 7c. It is the parties’ further
understanding that a Corporation Entity who is a sublicensee of CORPORATION may not assign the
sublicense to any other entity and may not grant further sublicenses. Since the Modified
Principal Agreement may have contained language which is inconsistent with this understanding
and to further clarify

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the Modified Principal Agreement, Sections 8d. and 9b. of the Principal Agreement are hereby
amended as follows:

	 	2.1	 	Section 8d. shall be amended by substituting “of CORPORATION, of any
Corporation Entity, and/or of any sublicensee of CORPORATION” for “of CORPORATION or of
Corporation Entity and the licensees or sublicenses of CORPORATION” in the fourth and
fifth lines thereof.
	 
	 	2.2	 	Section 9b. shall be amended by substituting “of Licensed Products by any
Corporation Entity and/or by any other sublicensee of CORPORATION” for “of Products by
Corporation Entity or by the licensees of CORPORATION or of Corporation Entity” in the
third and fourth lines thereof.

	3.	 	Other Amendments

	 	3.1	 	Section 1b. shall be amended by substituting “over fifty percent” for
“twenty-five and one tenth percent (25.1%) or more” in the fourth and fifth lines
thereof.
	 
	 	3.2	 	Section 7c. shall be amended by substituting “this” for “any License” in the
twelfth line thereof.
	 
	 	3.3	 	Section 10d. shall be amended by substituting “of Licensed Products” for “of
Products” in the fourth line thereof.
	 
	 	3.4	 	Section 8a. of the Principal Agreement shall be deleted and the following shall
be substituted therefor:

“In consideration for the License granted herein, and during the Payment Term, CORPORATION shall
make the following payments to SAMSF:

	(i)	 	With respect to each Licensed Product, CORPORATION shall pay to SAMSF a royalty of *** of Net
Sales of CORPORATION and a royalty of *** of Net Sales of each sublicensee of CORPORATION,
provided always as follows:

	 	(A)	 	If at any time on or after January 1, 2009 any Licensed Product
is in clinical development for any disease indication, but no Licensed Product
is then being sold commercially as an approved drug, CORPORATION shall pay an
annual minimum royalty payment of fifty thousand dollars ($50,000) or a
proportionate part thereof for the relevant part of the first applicable year
if such condition is satisfied after January 1 in such year.
	 
	 	(B)	 	If at any time on or after January 1, 2009 there is no Licensed
Product in clinical development for any disease indication and/or if at any
time on or after January 2009 any Licensed Product is being sold commercially
as an approved drug, CORPORATION shall pay an aggregate annual minimum royalty
payment of one hundred and fifty thousand dollars ($150,000) or a proportionate
part thereof for the relevant part of any applicable year if the

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	 	 	 	condition contained in paragraph A above or the second condition contained
in this paragraph (B) is satisfied after January 1 in such year.
	 
	 	(C)	 	All minimum royalty payments shall be credited against the
percentage royalty payable with respect to Net Sales for the year for which the
minimum royalty is due but may not be credited against any percentage royalties
payable in respect of Net Sales in any other year.
	 
	 	(D)	 	Minimum royalty payments shall be made as specified in Section
8b. hereof except that, if the royalty payments based on Net Sales paid
pursuant to Section 8.a. hereof for the first six (6) months of the year exceed
the minimum royalty payment for that year, no further minimum royalty payment
shall be made for that year.
	 
	 	(E)	 	CORPORATION shall inform SAMSF in writing of the Date of First
Commercial Sale with respect to each Licensed Product in each country as soon
as practicable after such First Commercial Sale is made.

	(ii)	 	CORPORATION shall make the following further payments to SAMSF:

	 	(A)	 	In connection with Alzheimer’s Disease (“AD”), subject to the
provisions of Sections 8(a)(ii)(C), (D) and (E) hereof:

	 	(1)	 	On the execution of this Amendment, the sum of
fifty thousand dollars, ($50,000);
	 
	 	(2)	 	On the commencement of the first Phase I trial
of an AD Licensed Product anywhere in the world, the sum of fifty
thousand dollars ($50,000);
	 
	 	(3)	 	On the commencement of the first Phase II trial
of an AD Licensed Product anywhere in the world, the sum of ***, but if
CORPORATION funds a portion or all of the first Phase II trial of an AD
Licensed Product, CORPORATION may defer payment of an amount equal to
*** multiplied by a fraction, the numerator of which is equal to the
costs contributed by CORPORATION to the total costs of such trial and
the denominator of which is equal to the total costs of such trial,
until the first payment pursuant to paragraph (4) hereof is due.
	 
	 	(4)	 	On the commencement of the first Phase III
trial of an AD Licensed Product anywhere in the world, the sum of ***,
but if CORPORATION funds a portion or all of the first Phase III trial
of an AD Licensed Product, CORPORATION may defer payment of an amount
equal to *** multiplied by a fraction, the numerator of which is equal
to the costs contributed by CORPORATION to the total costs of such
trial, and the denominator of which is equal to

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	 	 	 	the total coats of such trial, until the first payment pursuant to
paragraph (5) hereof is due; and
	 
	 	(5)	 	On the date of approval of the first New Drug
Application related to an AD Licensed Product by the US Food and Drug
Administration or the earlier approval of an equivalent application by
an equivalent non-US regulatory agency anywhere in the world, the sum
of *** but, if CORPORATION shall elect to fund the cost of marketing of
such Licensed Product itself in whole or in part and shall give notice
in writing of such election to SAMSF no more than three (3) months
after the date of the relevant approval, payment of that portion of
said *** calculated by multiplying said sum by a fraction the numerator
of which is the amount of such cost funded by CORPORATION and the
denominator of which is the total cost of such marketing may be
deferred until twelve (12) months after the date of the relevant
approval.
	 
	 	(6)	 	All payments made pursuant to the provisions of
this Section 8.a.(ii)(A) shall be credited against and deducted from
any payments otherwise due pursuant to the provisions of Sections
8.a.(ii)(C), (D) and (E).

	 	(B)	 	In connection with all indications other than AD:

	 	(1)	 	On the date of approval of each first New Drug
Application related to a non-AD Licensed Product which is a non-orphan
drug, by US Food and Drug Administration or the earlier approval of an
equivalent application by an equivalent non-US regulatory agency
anywhere in the world, the sum of ***; and
	 
	 	(2)	 	On the date of approval of each first New Drug
Application re1ated to a non-AD Licensed Product which is an orphan
drug, by US Food and Drug Administration or the earlier approval of an
equivalent application by an equivalent non-US regulatory agency
anywhere in the world, the sum of ***.

	 	(C)	 	CORPORATION shall pay to SAMSF an amount equal to *** of
payments and ***, other than royalties, received by CORPORATION from a
sublicensee or any other entity receiving any rights to the Research Technology
under an agreement executed prior to the commencement of a Phase I clinical
trial of a Licensed Product, provided always as follows:

	 	(1)	 	There shall not be included in the calculation
of any such payment any amounts paid to CORPORATION for or towards the
cost of research or development under a written agreement with a
detailed budget for such research and development OR by way of equity
investment (including, without limitation, debt convertible into or

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	 	 	 	exchangeable for equity) in CORPORATION at a price for such equity
that an unconnected third party would pay on a venture capital basis,
but not less than the price per share paid by the last preceding
investor on such basis, with any excess over such price being
included in the calculation of such payment; and
	 
	 	(2)	 	CORPORATION will provide SAMSF with a copy of
the written agreement and detailed budget providing for such research
and development described in the section above within thirty (30) days
of CORPORATION’S receipt of payment for such research and development;
and
	 
	 	(3)	 	All payments made pursuant to the provisions of
this Section 8.a.(ii)(C) shall be credited against and deducted from
any payments otherwise due pursuant to the provisions of Section
8(a)(ii)(A) hereof; and
	 
	 	(4)	 	All payments, other than royalties, received by
CORPORATION from a sublicensee or any other entity receiving any rights
to the Research Technology shall be promptly disclosed in writing to
SAMSF along with a calculation of the amount payable to SAMSF and along
with copies of any relevant written agreements contemplated in
8a.(ii)(C)(l) hereof.

	 	(D)	 	CORPORATION shall pay to SAMSF an amount equal to *** of
payments, and ***, other than royalties, received by CORPORATION from a
sublicensee or any other entity receiving rights to the Research Technology
under an agreement executed concurrently with or after the commencement of a
Phase I clinical trial, but before the commencement of a Phase II clinical
trial, of a Licensed Product, subject to the provisions specified in Section
8a.(ii)(C) hereof.
	 
	 	(E)	 	CORPORATION shall pay to SAMSF an amount equal to *** of
payments and ***, other than royalties, received by CORPORATION from a
sublicensee or any other entity receiving rights to the Research Technology
under an agreement executed concurrently with or after the commencement of a
Phase II clinical trial of a Licensed Product, subject to the provisions
specified in Section 8a.(ii)(C) hereof.

	 	(iii)	 	The following provisions shall apply to this Section 8a.:

	 	(A)	 	All payments to be made pursuant to the provisions of
sub-paragraph (ii) of this Section 8a., other than the payment specified in
clause (A)(1) of sub-paragraph (ii), shall be paid by CORPORATION to SAMSF
within ninety (90) days of the occurrence of the relevant event or of the
relevant payment. The payment specified in clause (A)(I) of sub-paragraph
(ii),

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	 	 	 	shall be paid by CORPORATION to SAMSF within ten (10) days of the occurrence
of the relevant event.

	 	(B)	 	For the purposes of sub clauses (3), (4) and (5) of clause (A)
of sub-paragraph (iii) of this Section 8a., the ratio of costs contributed by
CORPORATION to total costs shall be calculated as follows:

	 	(1)	 	If an agreement between CORPORATION and a
sublicensee or another entity specifics the proportion of costs to be
borne by each party, then the proportion borne by CORPORATION to the
total cost, pursuant to such agreement, shall constitute the relevant
fraction.
	 
	 	(2)	 	If an agreement between CORPORATION and a
sublicensee or another entity does not specify such proportions, then,
in each such case, CORPORATION shall make a good faith estimate of the
proportion of costs being borne by each party and shall give notice in
writing to SAMSF of such estimate, specifying how CORPORATION arrived
at such estimate; and the proportion borne by CORPORATION to the total
cost, pursuant to such estimate, shall constitute the relevant
fraction.
	 
	 	(3)	 	With regard to the trials contemplated in
Sections 8a.(ii)(A)(3) and 8a.(ii)(A)(4) hereof, if, at the termination
of the relevant trial, the event to which payment is deferred shall not
have occurred, CORPORATION shall provide to SAMSF in writing details of
the actual total costs of the relevant trial, details of the actual
costs of the relevant trial borne by CORPORATION, and details of the
actual costs of the relevant trial borne by each sublicensee and/or
each other entity. If it shall appear that the actual the actual
proportion borne by CORPORATION to the total cost differs from the
fraction as provided by the agreement contemplated in Section
8a.(iii)(B)(l) or as provided by the estimate contemplated in Section
8a.(iii)(B)(2); then CORPORATION shall make the necessary payment to
SAMSF or CORPORATION may apply any overpayment to SAMSF as a credit
against future milestone payments due to SAMSF. as the case may be.

3.5 The following paragraph shall be inserted into the Principal Agreement as new Section 22k:

     k. CORPORATION shall exercise, and shall require its sublicensees to exercise,
continuous and commercially reasonable efforts to develop and market Licensed Products.
Within sixty (60) days after the end of each Calendar year, CORPORATION shall provide SAMSF
with a written report detailing the efforts of CORPORATION and the efforts of its
sublicensees to develop and market Licensed Products during such Calendar year.

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	4.	 	Substitution of Mindset Biopharmaceuticals (USA), Inc. It is hereby agreed that
henceforth the Principal Agreement shall be read, construed and take effect for all the
purposes thereof as if Mindset Biopharmaceuticals (USA), Inc. were the party thereto and not
Mindset Limited. Moreover, it is hereby agreed that henceforth the Amendment I shall be read,
construed and take effect for all the purposes thereof as if Mindset Biopharmaceuticals (USA),
Inc. were the party thereto and not Mindset Biopharmaceuticals, Inc.
	 
	5.	 	Except as otherwise provided herein, the Modified Principal Agreement shall remain in full
force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	SOUTH ALABAMA MEDICAL 

SCIENCE FOUNDATION	 	MINDSET
BIOPHARMACEUTICALS (USA), INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:
	 	/s/ Daniel Chain	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:	 	 	 	Name: Daniel Chain	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:	 	 	 	Title: President	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	MINDSET BIOPHARMACEUTICALS (USA), INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael Schickler	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Michael Schickler	 	 
	 	 	 	 	Title: Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	MINDSET LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Daniel Chain	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Daniel Chain	 	 
	 	 	 	 	Title: President	 	 

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Appendix I

U.S. Patent Application Serial No. 08/801,301, filed February 18, 1997 entitled USE OF MELATONIN TO
PREVENT CYTOTOXIC EFFECTS OF AMYLOID PROTEIN by Pappolla.

U.S. Provisional Patent Application Serial No. 60/075,555 filed February 23, 1998 entitled USE OF
3-INDOL-PROPRIONIC ACID by Pappolla.

U.S. Provisional Patent Application Serial No. 60/079,349 filed March 25, 1998 entitled INHIBITION
OF ALZHEIMER BETA-FIBRILLOGENESIS BY MELATONIN by Pappolla.

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Exhibit 10.7

CONFIDENTIAL

Mayo Foundation for Medical Education and Research

Transgenic Animal Non-Exclusive License and

Sponsored Research Agreement (LSRA)

Article 1.00 — Preliminary Provisions.

1.01
DATE. The Effective Date of this LSRA is October 24, 1997.

1.02
PARTIES. There are two parties to this LSRA. They are:

	 	(a)	 	MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH, a Minnesota
charitable corporation, located at 200 First Street SW, Rochester, Minnesota
55905-0001 (called “MAYO” in this LSRA).
	 
	 	(b)	 	MINDSET, Ltd., located at 340 West
86th Street, Suite 4B, New York, New
York 10024-3166 (“LICENSEE” in this LSRA), with its registered office located at
Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands.

1.03 PURPOSE OF LSRA.

	 	(a)	 	Prior to execution of this LSRA, MAYO and the University of Minnesota
(“MINNESOTA”) shall have executed an exclusive Technology License Agreement for use
of certain transgenic mice and related technologies as models for Alzheimer’s Disease
and other neurodegenerative diseases, for commercial uses and other uses.
	 
	 	(b)	 	MAYO believes that dissemination of these transgenic mice to researchers is
of potential great benefit to present and future patients having Alzheimer’s Disease
and other neurodegenerative diseases.
	 
	 	(c)	 	MAYO desires to sublicense the transgenic mice and certain
related technologies to third parties for use as models in development of therapeutic
and other agents for Alzheimer’s Disease and other neurodegenerative diseases, to the
benefit of humanity.
	 
	 	(d)	 	MAYO desires to undertake certain research activities directed to
further characterizing the transgenic mice and to obtaining and further
disseminating transgenic mice having desired genotypes for use in
neurodegenerative disease research.
	 
	 	(e)	 	LICENSEE desires to nonexclusively license certain of the
above-referenced transgenic mice.

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Article 2.00 — Definitions

When used
herein, the following terms shall have the meanings set forth below. All reference to the
singular shall include the plural and vice-versa.

2.01
169 PATENT RIGHTS. means U.S. Patent Number 5,455,169, issued October 3, 1995, and all patents
and applications corresponding thereto throughout the world, including but not limited to, author
certificates, inventor certificates, improvement patents, utility certificates and models and
certificates of addition, and including any parent applications, divisions, renewals,
continuations, continuations-in-part, extensions or re-issues thereof.

2.02 AFFILIATE. means a legal entity controlled by, or controlling, another legal entity, or which
is an Affiliate of an Affiliate, or an Affiliate of an Affiliate of an Affiliate, “Control” means
direct or indirect beneficial ownership of at least fifty (50) percent of the voting stock of a
corporation; direct or indirect ownership of at least fifty (50) percent of the income of a legal
entity; or possession of at least fifty (50) percent of the voting rights of the members of a
nonprofit or nonstock corporation. MAYO’s Affiliates include, but are not limited to; Mayo
Foundation; Rochester Methodist Hospital; Saint Mary’s Hospital;
Mayo Clinic Jacksonville, Florida;
St. Luke’s Hospital, Jacksonville, Florida; Mayo Clinic Scottsdale, Arizona; Memorial
Hospital-North, Scottsdale, Arizona; Mayo Regional Practices, P.C., Decorah, Iowa; and Mayo
Regional Practices of Wisconsin, Ltd.

2.03 DEVELOPMENT PROGRAMS. means pharmaceutical, biotechnological and diagnostic development
programs in the field of Alzheimer’s Disease and other central
nervous system and neurodegenerative
diseases as performed by LICENSEE or its Affiliates.

2.04 DEVELOPMENT TECHNOLOGY. means all materials and technologies, including without limitation
rodents or other transgenic animals, products, drugs, diagnostic reagents, diagnostic methods,
therapeutic agents and therapeutic methods, derived from or resulting from use (including testing
or screening of new or existing pharmaceutical products or molecules) of the Licensed Technology,
either directly by LICENSEE or by others through rights granted by
LICENSEE.

2.05 FIELD OF USE. means research, development and testing within the Development Programs.

2.06
LICENSE QUARTER. begins on the date in Section 1.01 of this LSRA, and thereafter begins on the
first day of each January, April, July and October during the term of
this LSRA.

2.07 LICENSE YEAR. begins on the date in Section 1.01 of this LSRA, and thereafter begins on
the first day of each January during the term of this LSRA.

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2.8
LICENSED KNOW-HOW. means trade secrets including technical information, whether or not
patentable, including but not limited to engineering, scientific, and practical information and
formulas; information about qualities, uses, and sales methods and
procedures; information about
materials and sources; blueprints, drawings, specifications, and other relevant writings used in
the design, manufacture, and sale of products, processes, and methods in connection with the
Licensed Technology.

2.9
LICENSED TECHNOLOGY. means (a) mice of the Tg 2576 strain of the transgenic mouse model
described in Hsiao et al, Correlative Memory Deficils, A-Beta Elevation and Amyloid Plaques in
Transgenic Mice, as published in Science on October 4, 1996, or in a U.S. continuation-in-part
patent application, filed June 17, 1996, Serial No. 08/664,872 (the “CIP Application”), which mice
are (1) progeny of a cross of a Tg2576 N2 male with a C57B6SJL female or (2) the progeny of a cross
between (Tg2576 N2 x C57B6SJL) male with a C57B6SJL female, (such mice referred to herein as”
Stock”); (b) progeny of the Stock; and (c) certain transgenic mice that may result from the
Sponsored Research Activities (defined in Section 2.14 below).

2.10
MAYO INFORMATION. means all information embodied in the Licensed Technology and Licensed
Know-How, or expressly marked, labeled, referenced in writing, or otherwise designated by MAYO as
confidential, which is disclosed to the LICENSEE by MAYO, relating in any way to MAYO’s markets,
customers, patents, inventions, products, procedures, designs, plans, organization, employees, or
business in general, but not including:

	 	(a)	 	information which, before disclosure becomes part of the public domain
through no action or fault of LICENSEE; or
	 
	 	(b)	 	information which LICENSEE can show by sufficient proof was in its possession
before disclosure by MAYO to the LICENSEE and was not acquired, directly or
indirectly, from MAYO; or 
	 
	 	(c)	 	information which was received by LICENSEE from a third party having a legal
right to transmit such information.

2.11
MAYO PATENT RIGHTS. means U.S. Patent Application Number
08/189,064 filed January 27, 1994, U.S.
Patent Application Serial Number 08/644,691 filed May 10, 1996, U.S. Patent Application Serial
Number 08/664,872 filed June 17,1996, PCT Application Number
US95/01088 (Publication No.
WO95/20666) filed January 27, 1995 and all patents and applications thereof throughout the world,
including but not limited to, author certificates, inventor certificates, improvement patents,
utility certificates and models and certificates of addition, and including divisions, renewals,
continuations, continuations-in-part, extensions or re-issues thereof.

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2.12
NET SALES. means the amounts received for the Development Technology by LICENSEE and its
Affiliates, assigns and licensees, in respect of the sale or transfer of the Development Technology
in the Territory, less the following items to the extent they are paid or allowed and included in
the invoice price:

	 	(a)	 	Credits allowed for Development Technology returned or not accepted by customers;
	 
	 	(b)	 	Packaging, transportation and prepaid insurance charges on
shipments or
deliveries to customers; and
	 
	 	(c)	 	Taxes actually incurred and paid by or on behalf of LICENSEE in connection
with the sale or delivery of Development Technology to customers.

2.13 SPF. means specific pathogen-free.

2.14 SPONSORED RESEARCH ACTIVITIES. means research carried out by MAYO or its Affiliates directed
to (1) characterizing the existing Tg 2576 mice, which are heterozygous for Transgene-2576, (2)
developing mice homozygous for Transgene-2576, and (3) developing pure strains of mice,
i.e.; mice having homogeneous genetic backgrounds, into which Transgene-2576 has been
bred. Mayo desires to undertake these Sponsored Research Activities in order to potentially create
certain genotypes useful in neurodegenerative disease research.

2.15 TERMINATION. of this LSRA means the ending, expiration, rescission, or any other
discontinuation of this LSRA.

2.16 TERRITORY. means throughout the universe.

2.17 TRANSGENE. means a transgene, genetic construct or vector comprising an amyloid precursor
protein coding sequence operably joined to regulatory sequence obtainable from a prion protein
gene.

2.18
TRANSGENE-2576. means the Transgene used to generate the Tg 2576 strain of mice described
above.

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Article 3.00 — Grant of Rights.

3.01 GRANT.

	 	(a)	 	MAYO grants to LICENSEE a non-exclusive license in the Territory within the Field
of Use, without the right to sublicense (except to its Affiliates), to use and breed the
Licensed Technology, and to use the Licensed Know-How, under the Mayo Patent
Rights, according to the terms of this LSRA.
	 
	 	(b)	 	MAYO grants to LICENSEE a non-exclusive license in the Territory, without the
right to sublicense (except to its Affiliates), to make, have made, use, offer to sell
and sell the Development Technology, under the Mayo Patent Rights, according to the
terms of this LSRA.
	 
	 	(c)	 	MAYO grants to LICENSEE a non-exclusive sublicense in the Territory within the
Field of Use, without the right to sublicense (except to its Affiliates), to use and
breed the Licensed Technology under the 169 Patent Rights,
	 
	 	(d)	 	Notwithstanding the above Section 3.01 (a) and 3.01 (b), LICENSEE shall be entitled
to grant sublicenses to third parties to make, use, offer to sell,
and sell all Development Technology,

3.02
CONFIDENTIALITY. LICENSEE acknowledges that all Mayo Information is confidential and
proprietary to MAYO. LICENSEE agrees not to use any Mayo Information for three (3) years after
disclosure or three (3) years after Termination of this LSRA, whichever is longer, for any purpose
other than as permitted or required under this LSRA. LICENSEE also agrees not to disclose or to
provide any Mayo Information to any third party, and to take all reasonable measures to prevent
any such disclosure by its employees, agents, contractors, or consultants during the term of this
LSRA, and for three (3) years after its Termination.

	 	(a)	 	At MAYO’s request, LICENSEE shall cooperate folly with MAYO, except
financially, in any legal actions taken by MAYO to protect its rights in the
Licensed Technology and in the Mayo Information.
	 
	 	(b)	 	Any violation of LICENSEE’S obligations stated in this
Section 3.02 is a
Material Breach of this LSRA.

3.03 DISCLOSURE OF KNOW-HOW. Within a reasonable time after execution of this LSRA, MAYO shall make
available to the LICENSEE the Licensed Know-How, MAYO, however, owns the materials in which the
Licensed Know-How is embodied, including, but not limited to, prototypes, blueprints, and plans.

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CONFIDENTIAL

3.04 MICE.

	 	(a)	 	MAYO will provide to LICENSEE three (3) SPF breeder male mice and, depending
on availability, up to fifteen (15) male or female mice of strain Tg 2576 of the Stock
within 60 days of the Effective Date of this LSRA. In the event that interest, in the
form of signed license and sponsored research agreements (such as this LSRA) received
by MAYO, exceeds MAYO’s ability to deliver Stock, then such Stock will be provided on
a first-come basis based on the date of receipt of the signed license and sponsored
research agreements. In the event the projected delay shall exceed 30 days beyond the
60-day estimated period, LICENSEE shall have the right to terminate this LSRA.
	 
	 	(b)	 	Subject to availability, MAYO will also provide to LICENSEE two (2) breeding
pairs of mice homozygous for Transgene-2576, and two (2) breeder males from each pure
strain into which Transgene-2576 has been bred, as such mice may be developed by MAYO
in the Sponsored Research Program.
	 
	 	(c)	 	LICENSEE shall pay all costs incurred for shipment of Licensed Technology by
MAYO to LICENSEE. MAYO at its sole discretion, and upon consultation
with LICENSEE,
may choose the method of shipment, but in any case will undertake reasonable efforts
to ensure delivery of viable mice.
	 
	 	(d)	 	In the event that LICENSEE becomes unable to breed the supplied Stock due to
death or unforeseen circumstances, provided that LICENSEE shall have made reasonable
efforts to breed the supplied mice within a reasonable time following receipt of such
mice from MAYO, MAYO will, subject to availability, provide to LICENSEE a reasonable
number of additional Stock to replace the originally supplied Stock.

3.05 GENOTYPING. MAYO will use reasonable efforts to provide LICENSEE, subject to availability,
breeding records and a protocol useful in genotyping the offspring of the Stock. Any breeding
records or nucleic acid probes provided to LICENSEE by MAYO under this LSRA shall be used solely
for genotyping the Licensed Technology.

3.06 ACADEMIC RESEARCH. LICENSEE may release the Stock or progeny thereof to academic
researchers at nonprofit institutions and to scientific researchers employed by the U.S.
government, in each case for research purposes only, provided that such release is made under
substantially the same terms as those set forth in Exhibit A attached hereto. Any such agreement
and terms shall be strictly subject to approval by MAYO, which shall have sole discretion for such
approval.

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Article 4.00 — Consideration and Royalties.

4.01 CONSIDERATION.

	 	A.	 	LICENSE AND SPONSORED RESEARCH FEE. LICENSEE shall pay MAYO License and
Sponsored Research Fees as follows:

	 	i.	 	Upon the date of filing of the first Investigational
New Drug Application related to the Development Technology with the U.S.
Federal Drug Administration (“FDA”) or similar application with a similar
non-United States regulatory agency in or for the European Economic Community
or Japan: TWO HUNDRED THOUSAND DOLLARS (US $200,000)
	 
	 	ii.	 	Upon the date of filing of the first New Drug
Application related to the Development Technology with the FDA or any such
similar application with a similar non-United States regulatory agency in or
for the European Economic Community or Japan: FOUR HUNDRED THOUSAND DOLLARS
(US $400,000)
	 
	 	iii.	 	Upon the date of approval of the first New Drug
Application related to the Development Technology by the FDA or approval of a
similar application by a similar non-U.S. regulatory agency in or for
the European Economic Community or Japan: NINE HUNDRED THOUSAND DOLLARS (US
$900,000)

	 	B.	 	These License and Sponsored Research Fees provide LICENSEE with licensed rights
granted in this LSRA until expiration or Termination of this LSRA, and funds Sponsored
Research Activities for one year beyond the Effective Date.

4.02 ROYALTIES. LICENSEE, its Affiliates and assigns shall, on the dates set forth in Section
5.01, pay to MAYO royalties on a country by country basis in an amount equal to two and one-half
percent (2.5%) of Net Sales of the Development Technology.

4.03
TAXES. LICENSEE is responsible for all taxes (other than net income taxes), duties, import
deposits, assessments, and other governmental charges, however designated, which are now or
hereafter will be imposed by any authority in or for the Territory, (a) by reason of the
performance by MAYO of its obligations under this LSRA, or the payment of any amounts by LICENSEE
to MAYO under this LSRA; (b) based on the Licensed Technology or Development Technology or use of
the Licensed Technology or Development Technology; or (c) which relate to the import of the
Licensed Technology or Development Technology into any country within the Territory.

4.04 NO DEDUCTIONS. All payments to be made by LICENSEE to MAYO under this LSRA represent net
amounts MAYO is entitled to receive, and shall not be subject to any deductions or offsets for any
reason whatsoever. If such payments become subject to taxes, duties, assessments, or fees of any
kind levied in the Territory, such payments from LICENSEE

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CONFIDENTIAL

shall be increased to the extent that MAYO actually receives the net amounts due under this
LSRA.

4.05 U.S. CURRENCY. All payments to MAYO under this LSRA shall be made by draft drawn on a
United States bank, and payable in United States dollars.

Article 5.00 — Accounting and Reports.

5.01 PAYMENT. LICENSEE will deliver to MAYO on or before the following dates: 1 February, 1
May, 1 August, and 1 November, a written report stating Net Sales during the preceding License
Quarter on which royalties are to be based. Each such report shall be accompanied by
the royalty due for such License Quarter, as provided in Section 4.02.

5.02 ACCOUNTING. LICENSEE shall keep complete, true, and accurate books of account and records for
the purpose of showing the derivation of all royalties payable to MAYO under this LSRA. Such books
and records shall be kept at LICENSEE’S principal place of business for at least three (3) years
after the end of the License Year to which they pertain, and shall be open at all reasonable times
for inspection by a representative of MAYO for verification of royalty statements or compliance
with other aspects of this LSRA. The MAYO representative shall treat as confidential all relevant
matters and shall be a person or firm reasonably acceptable to
LICENSEE. MAYO may specify that its
representative shall be an independent Certified Public Accountant. If any inspection indicates the
royalty payments due MAYO have been undercalculated by LICENSEE by five (5) or more percent for any
License Year, then LICENSEE shall promptly reimburse MAYO for all costs incurred in connection with
the inspection. Failure to reimburse MAYO in such an instance, upon MAYO’s demand, is a material
breach of this LSRA.

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Article 6.00 — Warranties

6.01 USE OF NAME AND LOGO. LICENSEE shall not use publicly for publicity, promotion, or otherwise,
any logo, name, trade name, service mark, or trademark of MAYO or its Affiliates, including, but
not limited to, the terms “Mayo®,” “Mayo Clinic®,” or any simulation, abbreviation, or adaptation
of the same, or the name of any MAYO employee or agent, without MAYO’s prior, written, express
consent. MAYO may withhold such consent in MAYO’s absolute
discretion. LICENSEE shall not register
nor attempt to register in any jurisdiction in the world any trademark or servicemark that includes
the word “MAYO” in any language or alphabet, or that
includes any word or symbol confusingly
similar to any of MAYO’s marks, nor shall LICENSEE use any such word or mark in commerce anywhere in
the world without MAYO’s prior, express, written consent. Violation of this Section 6.01 is a
Material Breach of this LSRA, entitling MAYO to appropriate equitable
or legal relief.

6.02 WARRANTIES.

	 	A.	 	MAYO warrants that it has executed a non-exclusive, world-wide license with the
Alzheimer’s Institute of America, Inc., with the right to sublicense, for certain
rights under U.S. Patent Number 5,455,169.
	 
	 	B.	 	MINNESOTA has made the following warranties (“Minnesota Warranties”) to
MAYO regarding the Licensed Technology, and MAYO hereby extends the Minnesota
Warranties to LICENSEE under this LSRA:

	 	(1)	 	That the Stock have the Transgene-2576.
	 
	 	(2)	 	That MINNESOTA will maintain breeding stock of the Tg 2576 strain for
two years following the Effective Date of the exclusive Technology License
Agreement between MINNESOTA and MAYO.
	 
	 	(3)	 	That MINNESOTA owns or has been assigned all rights to the Stock and
the MAYO Patent Rights, and that MINNESOTA is free to enter into the exclusive
Technology License Agreement.

	 	C.	 	LICENSEE acknowledges that it has received a copy of the
Patent #5,612,486,
issued to Athena Neurosciences, Inc. on March 18, 1977 (“Athena Patent”), has had an
opportunity to review an opinion of counsel regarding its validity, and chooses to
proceed with this LSRA.

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6.03 NO REPRESENTATIONS OR WARRANTIES.

	 	(a)	 	Except as expressly provided in this LSRA, nothing in this LSRA shall be
construed as:

	 	(1)	 	a warranty or representation by MAYO that patent applications
under the MAYO Patent Rights will issue as patents;
	 
	 	(2)	 	a warranty or representation by MAYO as to the validity or scope of
any patents or patent applications contained in the Mayo Patent
Rights or ’169
Patent Rights;
	 
	 	(3)	 	an obligation to bring or to prosecute actions against third parties
for infringement of patents within the Mayo Patent Rights or ’169 Patent Rights;
	 
	 	(4)	 	conferring by implication, estoppel, or otherwise any patents
of MAYO.
	 
	 	(5)	 	a warranty or representation by MAYO that any product, method or
service made, used, offered for sale, sold, leased or otherwise disposed of under
the terms of this LSRA is or will be free from infringement of patents of third
persons.
	 
	 	(6)	 	a warranty or representation by MAYO that LICENSEE is granted rights
to any patent applications other than the MAYO Patent Rights or ’169 Patent
Rights.
	 
	 	(7)	 	extending any warranties of any kind, express or implied, or assuming
any responsibility whatever concerning the manufacture, use, offer to sell, sale,
lease or other disposition by LICENSEE, its Affiliates or vendees or transferees,
of the Licensed Technology or Development Technology.

	 	(b)	 	Other than the representations and warranties expressly made above, MAYO HAS
NOT MADE AND PRESENTLY MAKES NO PROMISES, GUARANTEES, REPRESENTATIONS OR WARRANTIES OF
ANY NATURE, DIRECTLY OR INDIRECTLY, EXPRESS OR IMPLIED, REGARDING THE MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, SUITABILITY, DURABILITY, CONDITION, QUALITY, OR ANY
OTHER CHARACTERISTIC OF THE LICENSED TECHNOLOGY OR DEVELOPMENT TECHNOLOGY.

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6.04 INDEMNIFICATION. LICENSEE shall defend, indemnify, and hold harmless MAYO and MAYO’s
Affiliates from all liability, demands, damages, expenses, losses, fees (including attorneys’ fees)
and settlements, for death, personal injury, illness, or property damage arising out of:

	 	(a)	 	use or breeding of inventions, Licensed Technology, Licensed Know-How or other
information furnished under this LSRA by LICENSEE or its Affiliates or transferees; and
	 
	 	(b)	 	making, use, offers to sell, sale, or other disposition of the Licensed
Technology or Development Technology by LICENSEE or its Affiliates or transferees.
	 
	 	 	 	As used in Sections 6.04(a) and (b), and 6.05, MAYO and its Affiliates include the trustees,
officers, agents, and employees of MAYO and its Affiliates, and LICENSEE includes not only
its Affiliates as defined in this LSRA, but also any of its contractors and subcontractors,
LICENSEE shall, during the term of this LSRA, carry occurrence-based liability insurance with
policy limits of at least FIVE MILLION DOLLARS (US $5,000,000). In addition, such policy
shall name MAYO as an additional-named insured. LICENSEE warrants that any Development
Technology shall be covered under such liability insurance before such Development
Technology is marketed by LICENSEE or before sublicensing, licensing, otherwise
transferring or selling such Development Technology to third parties.

6.05
WAIVER OF SUBROGATION. LICENSEE expressly waives any right of subrogation that it may have
against MAYO resulting from any claim, demand, liability, judgment, settlement, costs, fees
(including attorney’s fees), and expenses for which LICENSEE has agreed to indemnify MAYO and its
Affiliates or hold MAYO and its Affiliates harmless under Section 6.04 of this LSRA.

6.06 EXCEPTION TO INDEMNIFICATION AND WAIVER OF SUBROGATION.

 MAYO and its Affiliates are not protected under Sections 6.04 and 6.05 for injury or damage that
results from their sole negligence.

6.07
ADDITIONAL WAIVERS. LICENSEE AGREES THAT MAYO SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE
CAUSED BY DELAY IN FURNISHING PRODUCTS OR SERVICES, OR ANY OTHER PERFORMANCE UNDER THIS LSRA,
UNLESS RESULTING FROM MAYO’S NEGLIGENCE OR WILLFUL AND WANTON MISCONDUCT. IN NO EVENT SHALL MAYO’S
LIABILITY OF ANY KIND INCLUDE ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL LOSSES OR
DAMAGES, EVEN IF MAYO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO CASE SHALL MAYO’S
LIABILITY FOR DAMAGES OF ANY TYPE EXCEED THE TOTAL ROYALTIES WHICH HAVE ACTUALLY BEEN PAID TO MAYO
BY THE LICENSEE AS OF THE DATE OF FILING OF THE ACTION AGAINST MAYO WHICH RESULTS IN THE SETTLEMENT
OR AWARD OF DAMAGES.

11

 

CONFIDENTIAL

Article 7.00 -Term and Termination.

7.01 TERM. The term of this LSRA is for the longer of 10 years or for the life of the last of
any patents that may issue under the Mayo Patent Rights.

7.02 TERMINATION.

	 	(a)	 	If LICENSEE defaults in the payment of any royalty, fees, payment, or in
the making of any report, or makes a false report, or commits another Material Breach
of this LSRA, MAYO may, at its sole option, terminate this LSRA upon written notice to
LICENSEE, Termination being effective upon thirty (30) business
days after mailing or
personal delivery unless such default or other Material Breach is first cured to
MAYO’s satisfaction.

7.03 INFRINGEMENT OF THIRD PARTY RIGHTS. If a court of final adjudication enters an unappealed
or unappealable judgment that the rights of a third party have been infringed by using or
sublicensing the Licensed Technology, then this LSRA may be terminated by either party upon written
notice to the other. If this LSRA is terminated by the provisions in this section 7.03, then
LICENSEE shall have no further obligations to MAYO other than those stated in Section 7.05.

In the event a court of final adjudication enters an unappealed or unappealable judgment that a
third party patent is dominant to the Mayo Patent Rights, then fees LICENSEE negotiated or are
ordered to pay to such third party in order to secure ft license to practice the rights granted
under the terms of this LSRA shall be credited against royalties or other consideration due MAYO up
to a maximum of 50% of royalties or other consideration due MAYO in any given period.

In the event a court of final adjudication enters an unappealed or unappealable judgment that the
Mayo Patent Rights infringe a third party patent, and such judgment results in damages or a
negotiated settlement, then any damages payable by LICENSEE shall be credited against royalties or
other consideration due Mayo up to a maximum of 50% of royalties or other consideration due Mayo in
any given period.

7.04 CHALLENGE BY OR INSOLVENCY OF LICENSEE. MAYO may terminate this LSRA immediately upon
written notice to LICENSEE if LICENSEE ceases conducting business in the normal course, becomes
insolvent or bankrupt, makes a general assignment for the benefit of creditors, admits in writing
its inability to pay its debts as they are due, permits the appointment of a receiver for its
business or assets, or avails itself of or becomes subject to any proceeding under any statute of
any governing authority relating to insolvency or the protection of rights of creditors.

12

 

CONFIDENTIAL

7.05 SURVIVAL. The following obligations survive the Termination of this LSRA:

	 	(a)	 	LICENSEE’S obligation to supply reports covering the time period up to the date
of Termination;
	 
	 	(b)	 	MAYO’s right to receive payments, fees, and royalties (including minimum
royalties) accrued or accruable from payment at the time of any Termination;
	 
	 	(c)	 	LICENSEE’S obligation to maintain records, and MAYO’s right to have those
records inspected;
	 
	 	(d)	 	any cause of action or claim of MAYO, accrued or to accrue, because of any
action or omission by LICENSEE;
	 
	 	(e)	 	LICENSEE’S obligations stated in Sections 3.02 and
6.04 of this LSRA; and
	 
	 	(f)	 	LICENSEE’S obligation to return all materials given to it by MAYO.
	 
	 	(g)	 	Upon Termination of this LSRA, LICENSEE shall return to MAYO any surviving
Stock or members of breeding pairs provided by MAYO to LICENSEE under Section
3.04 of this LSRA, and shall return to MAYO or humanely euthanize (according to
the most current Report of the AVMA Panel on Euthanasia) any progeny thereof
produced by LICENSEE.

Article 8.00-General Provisions.

8.01 MAYO’S RIGHT TO PUBLISH. MAYO reserves the right to publish the results of its
work related to the Licensed Technology and Sponsored Research Activities. Such right to
publish shall not include the right to publish any proprietary information LICENSEE shall
provide to MAYO without LICENSEE’S prior written consent.

8.02 NO ASSIGNMENT. LICENSEE and its Affiliates are strictly prohibited from
assigning or subcontracting any of its obligations or rights under this LSRA, other than as
provided in Section 3.0l (d), without MAYO’s prior, express, written consent, which consent may
be withheld in MAYO’s sole discretion. Any other attempted assignment or subcontract is void.
This LSRA, is personal to LICENSEE.

8.03 WAIVER. No part of this LSRA may be waived except by the further written agreement
of the parties. Forbearance in any form from demanding the performance of a duty owed under
this contract is not a waiver of that duty. Until complete performance of a duty owed under this
contract is accomplished, the party to which that duty is owed may invoke any remedy under this
contract or under law, despite its past forbearance in demanding performance of that duty.

8.04 GOVERNING LAW AND JURISDICTION. This LSRA is made and performed in
Minnesota. It is governed by Minnesota law, but specifically not including Article 2 of the
Uniform Commercial Code. This is not a contract for the sale of goods. In addition, no
Minnesota conflicts-of-law or choice-of-laws provisions apply to this
contract. To the extent the
substantive and procedural law of the United States would apply to this contract, it supersedes
the application of Minnesota law. The exclusive forum for all actions and proceedings between

13

 

CONFIDENTIAL

the parties in connection with this LSRA is the United States District Court for the District of
Minnesota, and LICENSEE submits to the personal jurisdiction of such Court for all such actions
and proceedings.

8.05
HEADINGS. The headings of articles and sections used in this document are for
convenience of reference only, and are not a part of this LSRA.

8.06 NOTICES. Any notice required to be given under this LSRA is properly provided if in
writing and either personally delivered, or sent by express or certified mail, postage
prepaid, to the parties at the following addresses, unless other addresses are provided
consistent with this Section 8.06:

	 	 	 	 	 
	Mayo Foundation for Medical Education and Research
	 	 	 	 
	200 First Street SW
	 	 	 	 
	Rochester, Minnesota 55902
	 	 	 	 
	Attention:
	 	 	 	 
	Susan Stoddard, Ph.D.

	 	and
	 	Frank Helminski, Esq.
	Mayo Medical Ventures

	 	 	 	Legal Department
	Office of Technology Transfer
	 	 	 	 
	 
	 	 	 	 
	MINDSET, Ltd.
	 	 	 	 
	340
West 86th
 Street, Suite 4B
	 	 	 	 
	New York, NY 10024
	 	 	 	 
	Attention:

 Daniel Chain, Ph.D.
	 	 	 	 

Unless otherwise expressly specified in this LSRA, notices sent by mail are considered
effective upon the earlier of fifth (5th) day after dispatch (or the tenth (10th) day after
dispatch if dispatched by air mail other than in the United States) or the day of actual receipt.
Notices personally delivered are considered effective upon the date of delivery. It is the
responsibility of the party giving notice to obtain a receipt for delivery of the notice, if
that party considers such a receipt advisable.

8.07 INDEPENDENT CONTRACTORS. In the performance of their respective duties
under this LSRA, the parties are independent contractors of each other. Neither is the agent,
employee, or servant of the other. Each is responsible only for its own conduct.

8.08 ENTIRE CONTRACT. This document states the entire contract between the parties
about its subject matter. All past and contemporaneous discussions, agreements, proposals,
promises, warranties, representations, guarantees, correspondence, and understandings, whether
oral or written, formal or informal, are entirely superseded by this LSRA.

14

 

CONFIDENTIAL

8.09 UNENFORCEABLE PROVISION. The unenforceability of any part of this LSRA will
not affect any other part. This LSRA will be construed as if the unenforceable parts had been
omitted.

8.10 CHANGES TO CONTRACT. No part of this LSRA, including this Section 8.10, may
be changed except in writing, through another document signed by both
parties.

8.11
CONSTRUCTION. Both parties agree to all of the terms of this LSRA. Both parties
execute this LSRA only after reviewing it thoroughly.

8.12 NONDISCLOSURE. Neither party shall disclose any of the terms of this LSRA without
the express, prior, written consent of the other party, or unless required by law.

8.14 FAX SIGNATURES. Both parties agree that execution of this LSRA may be effected by the
receipt of facsimile signatures.

     IN WITNESS WHEREOF, each of the parties has caused this LSRA to be executed on its
behalf by its duly authorized representative, effective as of the date first written below.

MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH:

	 	 	 	 	 
	Signed:

	 	/s/ Rick Colvin
	 	 
	 

	 	 	 	 
	Name:

	 	Rick Colvin	 	 
	Title:

	 	Assistant Treasurer	 	 
	Date:

	 	10/24/97	 	 

MINDSET:

	 	 	 	 	 
	Signed:

	 	/s/ Daniel Chain
	 	 
	 

	 	 	 	 
	Name:

	 	Daniel Chain, Ph.D.	 	 
	Title:

	 	Director	 	 
	Date:

	 	10/24/97	 	 

15

 

	 	 	 	 	 
	 

	 	Mayo Medical Ventures
	 	 
	 

	 	200 First Street SW	 	 
	 

	 	Rochester, Minnesota 55905	 	 
	 

	 	507-284-8878	 	 
	 
	 	 	 	 
	April 12, 2001

	 	Technology Commercialization	 	 
	 
	 	 	 	 
	Daniel Chain, Ph.D.
	 	 	 	 
	Co-Chairman and CEO 
	 	 	 	 
	Mindset BioPharmaceuticals
	 	 	 	 
	
Kiryat Mada 5 
	 	 	 	 
	Luz Building Har Hotzvim 
	 	 	 	 
	Jerusalem 91450, Israel
	 	 	 	 
	 
	 	 	 	 
	Abram Goldfinger
	 	 	 	 
	Executive Director,
	 	 	 	 
	Industrial Liaison / Technology Transfer
	 	 	 	 
	New York University
	 	 	 	 
	550 First Avenue
	 	 	 	 
	New York, NY 10016
	 	 	 	 
	 
	 	 	 	 
	Dear Doctor Chain and Mr. Goldfinger:
	 	 	 	 

It is Mayo’s understanding that Mindset will be licensing certain technology
(“Technology”) developed by Doctor Thomas Wisniewski at New York University (“NYU”).
The patent for the Technology was filed prior to 19
August 2000, which is the effective
date of the Material Transfer Agreement (“MTA”) by which Mayo provided Tg2576 mice
(“Mice”) to Doctor Wisniewski for use in academic research. NYU and Mayo were
previously parties to a Material Transfer Agreement dated 3 March 1997, under which
Mayo provided Mice to Doctor Wisniewski for use in academic research,
which Mice died
before Doctor Wisniewski was able to use them in his research. Since the Technology was
developed without use of the Mice, NYU has no obligation to offer Mayo the option to
license the Technology.

It is Mayo’s further understanding that the license between Mindset and NYU will
include a provision for sponsored research funding to Doctor Wisniewski for the purpose
of research utilizing the Mice.

By signature below of their authorized representatives, Mayo, Mindset and NYU concur
that the above statements are true, and further agree as follows:

	•	 	Mindset shall fund research (“Research”) to be done at NYU by Doctor Wisniewski,
utilizing the Mice.
	 
	•	 	Doctor Wisniewski shall also be performing academic research with the Mice not
funded by Mindset; data results, inventions and developments arising therefrom will
be subject to the provisions of the MTA between Mayo and NYU.

 

 

Doctor Chain

 Doctor Goldfinger

Page 2

April 12, 2001

	•	 	All data, results, inventions and developments arising from the Research shall be
treated as Development Technology under the terms of the License and Sponsored Research
Agreement (“LSRA”) between Mayo and Mindset, effective 24 October 1997, with respect to
Mindset’s obligations to Mayo regarding such Development Technology as specified in the
LSRA.

	 	 	 	 	 	 	 
	Mayo Foundation for Medical

	 	 	 	 	 	 
	Education
and Research:

	 	 	 	New York University:	 	 
	 
	 	 	 	 	 	 
	/s/ Rick F. Colvin
 

	 	4/12/01 

	 	/s/ Abram M. Goldfinger
 

	 	4/19/01  

	Rick F. Colvin

	 	Date
	 	Abram M. Goldfinger
	 	Date
	Assistant Treasurer

	 	 	 	Executive Director	 	 
	 

	 	 	 	Industrial Liaison/Technology Transfer	 	 
	 
	 	 	 	 	 	 
	Mindset
BioPharmaceuticals:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Daniel Chain
 

Daniel Chain, Ph.D.

	 	4/23/01 

Date
	 	 	 	 
	Co-Chairman and CEO
	 	 	 	 	 	 

 

 

CONFIDENTIAL DRAFT

Amendment No. 1

to

Transgenic Animal Non-Exclusive License And

Sponsored Research Agreement (LSRA)

Between

Mayo Foundation For Medical Education And Research

and

Mindset Biopharmaceuticals (USA), Inc.

     Effective
as of September 1, 2001, the Transgenic Animal Non-Exclusive License and
Sponsored Research Agreement (LSRA) dated 24 October 1997
between Mayo Foundation for Medical Education and
Research (MAYO) and Mindset Biopharmaceuticals (USA), Inc. (LICENSEE) is hereby amended under the
following terms:

     Section 3.07 DISTRIBUTION OF TISSUE is added, as follows.

     Notwithstanding
the provisions of Section 3.01 hereto, MAYO understands that LICENSEE, as
part of the research services supplied to its customers, may wish to supply said customers, at
their request, with fixed tissue sections or frozen tissue samples from mice made using
the Licensed Technology, for further analysis by said customers using said customers proprietary
markers. MAYO is not opposed to such an arrangement, provided LICENSEE:

	(a)	 	accepts full responsibility for the actions of its customers
in respect to MAYO’s rights;
and
	 
	(b)	 	notifies such customers of MAYO’s rights in the Licensed
Technology, and provides
a copy of such notification to MAYO.

     The
terms of this Amendment No. 1 supersede any conflicting or inconsistent terms in the
Transgenic Animal Non-Exclusive License and Sponsored Research Agreement (LSRA). All
other provisions of the original Transgenic Animal Non-Exclusive License and Sponsored
Research Agreement (LSRA) effective 24 October 1997 remain in full force and effect.

	 	 	 	 	 
	Mayo Foundation for Medical

Education and Research 

/s/ Rick F. Colvin

	 	Mindset Biopharmaceuticals:

(USA), Inc. 

/s/ Daniel Chain
	 	 
	 

	 	 	 	 
	Rick
F. Colvin

Assistant Treasurer

	 	Daniel Chain

Co-Chairman And CEO	 	 
	 
	 	 	 	 
	9/18/01

	 	September
1, 2001	 	 
	 

	 	 	 	 
	Date

	 	Date	 	 

 

 

Amendment No. 2

to the

Transgenic Animal Non-Exclusive License and

Sponsored Research Agreement (LSRA)

Between

Mayo Foundation For Medical Education And Research

and

Mindset Biopharmaceuticals (USA), Inc.

WHEREAS Mindset Biopharmaceuticals (USA), Inc plans to divest its wholly owned subsidiary,
MindGenix, which performs contract drug screening services, and to focus its own business model on
drug discovery;

NOW THEREFORE, effective as of 1 February 2005, the Transgenic Animal Non-Exclusive License
and Sponsored Research Agreement (LSRA) dated 24 October 1997 between Mayo Foundation for Medical
Education and Research (MAYO) and Mindset Biopharmaceuticals (USA), Inc. (LICENSEE) is hereby
amended under the following terms:

	I.	 	The following sentence is added at the end of
Section 2.04 — Development Technology: “Development Technology shall specifically exclude any service
utilizing the Licensed Technology or mice claimed in the Mayo Patent Rights, which
service is performed on behalf of a third party.”

	 
	II.	 	Section 2.12 — Net Sales is deleted in its
entirety and is replaced with the following Section 2.12 — Net Revenue.
	 
	 	 	Section 2.12 — Net Revenue means the amounts received, in cash or other compensation, for
the Development Technology by LICENSEE and its Affiliates and assigns in respect to the
license, sale or transfer of the Development Technology in the Territory. Net Revenues
shall include, without limitation, upfront payments, milestone payments and royalties.
	 
	III.	 	Section 4.01 — Consideration is deleted in its entirety.
	 
	IV.	 	Section 4.02 — Royalties is deleted in its entirety and is replaced with a new Section
4.01 — Royalties as follows:
	 
	 	 	Section 4.01 — Royalties. LICENSEE, its Affiliates and assigns shall, on the dates set
forth in Section 5.01, pay to MAYO royalties in an amount equal to two and one-half percent
(2.5%) of the Net Revenue received by LICENSEE. For the avoidance of doubt, LICENSEE is
obliged to pay MAYO a royalty of 2.5% Net Revenue whether a compound, within Development
Technology, was tested in the Licensed Technology or in mice claimed by the Mayo Patent
Rights, before or after the date of this Amendment No. 2.

 

 

	Amendment Number 2	 	Page 2 of 2
	Mayo /
Mindset Biopharmaceuticals, Inc.	 	01/31/05

Execution
Copy

	V.	 	Section 4.03 — Taxes is renumbered as Section 4.02 — Taxes.
	 
	VI.	 	Section 4.04 — No Deductions is renumbered as Section 4.03 — No Deductions.
	 
	VII.	 	Section 4.05 — U.S. Currency is renumbered
as Section 4.04 — U.S. Currency.
	 
	VIII.	 	Section 8.06 — Notices is amended such that the Mayo contact is changed from
Frank Helminski, Esq. to James A. Rogers, III, Esq.
	 
	IX.	 	The following sentence is added at the end of Section 8.12 — Nondisclosure:
“Notwithstanding any other provision of this LSRA, LICENSEE may disclose (i) the terms of
this LSRA as part of any due diligence being conducted by potential investors, potential
business partners, potential acquirers, and others with which LICENSEE may be entering into
a specific business relationship; and (ii) the existence of this LSRA as the document
giving rise to the rights of LICENSEE to use the Licensed Technology and mice claimed by the
Mayo Patent Rights, under the Mayo Patent Rights.

     The terms of this Amendment No. 2 supersede any conflicting or inconsistent terms in the
Transgenic Animal Non-Exclusive License and Sponsored Research Agreement (LSRA). All other
provisions of the original Transgenic Animal Non-Exclusive License and Sponsored Research Agreement
(LSRA) effective 24 October 1997 remain in full force and effect.

	 	 	 	 	 
	Mayo Foundation for Medical

	 	Mindset Biopharmaceuticals	 	 
	Education and Research

	 	(USA), Inc.	 	 
	 
	 	 	 	 
	/s/
Rick F. Colvin
 

Rick F. Colvin

	 	/s/ Daniel Chain
 

Daniel Chain	 	 
	Assistant
Treasurer

	 	Co-Chairman And CEO	 	 
	 
	 	 	 	 
	1/31/05 

	 	2/04/05 
	 	 
	Date

	 	Date

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