Document:

EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

      This Employment Agreement is dated as of April 25, 2002, and is entered
into between SPEEDUS.COM, Inc., a corporation organized under the laws of the
State of Delaware (the "Company"), and Shant S. Hovnanian ("Executive").

      WHEREAS, Executive has been serving as Chief Executive Officer of the
Company under the terms of an Employment Agreement dated as of October 18, 1995
(the "Prior Agreement"), which agreement expired by its terms on February 8,
1997, and

      WHEREAS, Executive and the Company desire to embody in this Agreement
mutually acceptable terms and conditions for Executive's continued employment by
the Company.

      NOW, THEREFORE, the parties hereby agree as follows:

                                    ARTICLE I

                     Employment, Duties and Responsibilities

      1.01. Employment. The Company shall continue to employ Executive as
President and Chief Executive Officer of the Company and Executive hereby
accepts such employment. Executive agrees to devote his full working time to the
Company's affairs, provided that he shall be free to pursue other activities
that are not inconsistent with his role as full-time Chief Executive Officer of
the Company or with the provisions of Article V below.

      1.02. Duties and Responsibilities. Executive shall have such duties and
responsibilities as are consistent with his position as Chief Executive Officer
of the Company and such other duties and responsibilities as shall be defined
from time to time by the Board of Directors of the Company (the "Board").

                                   ARTICLE II

                                      Term

      2.01. Term. The term of this Agreement (the "Term") shall commence on the
date hereof (the "Effective Date") and shall continue in effect for a period of
three years thereafter or until earlier terminated by the Executive or the
Company pursuant to Article VI hereof.

                                   ARTICLE III

                                   [Reserved]

                                   ARTICLE IV

<PAGE>

                            Compensation and Expenses

      4.01. Salary, Bonuses and Benefits. As compensation and in consideration
for the performance by Executive of his obligations under this Agreement,
Executive shall be entitled to the following (subject, in each case, to the
provisions of ARTICLE VI hereof):

            (a) Salary. The Company shall pay Executive a base salary during the
Term, payable in accordance with the normal payment procedures of the Company
and subject to such withholdings and other normal employee deductions as may be
required by law, at the annual rate of $250,000.

            (b) Benefits. Executive shall participate during the Term in such
pension, life insurance, health, disability, dental and major medical insurance
plans, and in such other employee benefit plans and programs, for the benefit of
the employees of the Company, as may be maintained from time to time during the
Term, in each case to the extent and in the manner available to other officers
of the Company and subject to the terms and provisions of such plans or
programs.

            (c) Stock Awards. Executive shall be eligible to participate in the
Company's 1995 Stock Incentive Plan, as amended from time to time (the "Plan"),
to the extent the Board or the Compensation Committee of the Board determines to
grant Executive a discretionary award under the Plan. Without limiting the
forgoing, the Board shall grant to Executive, as of the Effective Date, an
option (the "Option") pursuant to the Plan to purchase 250,000 shares of the
Company's Common Stock with an exercise price equal to the fair market value of
the share of the Company's Common Stock on the Effective Date as determined by
the Board. The Option shall have such terms and conditions consistent with the
Plan, as shall be set forth in an Option Agreement between the Company and the
Executive.

            (d) Bonuses.

                  (i) Contingent Bonus. In view of the substantial degree of
            commitment required on the part of Employee in connection with the
            Company's current litigation with Western International
            Communications and related parties, the Company agrees that
            Executive shall be entitled, in addition to any other compensation
            to Executive, to 20% of the net proceeds (after legal and other
            expenses) realized by the Company in connection with such matter, as
            and when realized and whether by reason of a favorable judgment,
            settlement or otherwise.

                  (ii) Annual Bonuses. Subject to Executive's continued
            employment pursuant to the terms hereof, the Executive shall be
            eligible for annual bonuses as determined by the Board, in the
            Board's discretion, on the basis of the performance of the Company
            as well as Executive's individual performance and contribution. Such
            annual bonus shall be targeted at 50% or more of Executive's base
            salary, determined as of the end of each fiscal year of the Company
            during the Term and, to the extent earned, payable as promptly as
            practical thereafter; provided, however, that such percentages shall
            be a guideline, and the Board (or the Compensation Committee as
            appropriate) shall make the final determination of Executive's bonus
            subject to a review of all relevant facts and circumstances at the
            time.

            (e) Other Matters. In addition to the foregoing, Executive shall be
entitled to the payments and/or reimbursements set forth on Schedule I.

      4.02. Expenses. The Company will reimburse Executive for reasonable
business related expenses incurred by him in connection with the performance of
his duties hereunder during the Term, subject, however, to the Company's
policies relating to business related expenses as in effect from time to time
during the Term.

<PAGE>

                                    ARTICLE V

                                Exclusivity, Etc.

      5.01. Exclusivity. Executive agree to perform his duties, responsibilities
and obligations hereunder efficiently and to the best of his ability. Executive
also agrees that so long as he is employed by the Company he will not engage in
any other business activities, pursued for gain, profit or other pecuniary
advantage that are competitive with the activities of the Company, except as
permitted in Section 5.02 below. Executive agrees that all of his activities as
an employee of the Company shall be in conformity with all policies, rules and
regulations and directions of the Company not inconsistent with this Agreement.

      5.02. Other Business Ventures. Executive agrees that, so long as he is
employed by the Company, and for a period of two (2) years thereafter, he will
not own, directly or indirectly, any controlling or substantial stock or other
beneficial interest in any business enterprise which is engaged in, or
competitive with, any business engaged in by the Company and he will not engage
in any business activities, pursued for gain, profit or other pecuniary
advantage, that are competitive with the activities of the Company, except that
he may devote such working time and efforts to closely-held family investments
that are not competitive with the Company and do not interfere with Executive's
obligations hereunder. Notwithstanding the foregoing, Executive may own,
directly or indirectly, up to 5% of the outstanding capital stock of any
business having a class of capital stock which is traded on any national stock
exchange or in the over-the-counter market.

      5.03. Confidentiality. Executive agrees that he will not, at any time
during or after the Term, make use of or divulge to any other person, firm or
corporation any trade or business secret, process, method or means, or any other
confidential information concerning the business or policies of the Company,
which he may have learned in connection with his employment. For purposes of
this Agreement, a "trade or business secret, process, method or means, or any
other confidential information" shall mean and include written information
treated as confidential or as a trade secret by the Company. Executive's
obligation under this Section 5.03 shall not apply to any information which (i)
is known publicly or (ii) is in the public domain or hereafter enters the public
domain without the fault of Executive. Executive agrees not to remove from the
premises of the Company, except as an employee of the Company in pursuit of the
business of the Company or except as specifically permitted in writing by the
Company, any document or other object containing or reflecting any such
confidential information. Executive recognizes that all such documents and
objects, whether developed by him or by someone else, will be the sole exclusive
property of the Company. Upon termination of his employment hereunder, Executive
shall forthwith deliver to the Company all such confidential information,
including without limitation all lists of customers, correspondence, accounts,
records and any other documents or property made or held by him or under his
control in relation to the business or affairs of the Company, and no copy of
any such confidential information shall be retained by him.

                                   ARTICLE VI

                                   Termination

      6.01. Termination by the Company.

            (a) The Company shall have the right to terminate the Executive's
employment at any time, with or without "Cause." For purposes of this Agreement,
"Cause" shall mean (i) substantial and continued failure by the Executive to
perform his duties hereunder, (ii) conduct grossly insubordinate or disloyal to
the Company, or (iii) Executive's conviction of, or pleading no contest to a
charge of, a felony.

            (b) In the event that the Company shall terminate Executive's
employment hereunder

<PAGE>

for Cause, the Company shall promptly submit a written statement to the full
Board setting forth in reasonable detail the relevant facts and circumstances
relating to such determination.

            (c) Upon the occurrence of a Change of Control (as defined below),
Executive may elect, by written notice to the Company within 30 days thereof,
that such Change of Control be treated as a termination of Executive's
employment by the Company other than for Cause for the purposes of this
Agreement (a "Change of Control Termination"). As used herein, a "Change of
Control' shall be deemed to have occurred if (i) any person or entity (other
than persons currently holding in excess of 20% of the outstanding capital stock
of the Company) becomes the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
more than 50% of the voting power of the then outstanding securities of the
Company, or (ii) the consummation of (x) a merger or consolidation of the
Company with another corporation where the shareholders of the Company
immediately prior to such merger or consolidation, will not own, immediately
after such merger or consolidation, shares entitling such shareholders to more
than 50% of all votes to which all shareholders of the surviving corporation
would be entitled in the election of directors (without considering the rights
of any class of stock to elect directors by a separate class vote), (y) a sale
or other disposition of all or substantially all of the assets of the Company or
(z) a liquidation or dissolution of the Company.

      6.02 Termination by the Executive.

            (a) The Executive shall have the right to terminate his employment
at any time for any reason, or for good reason in the event of (i) a material
and continuing breach by the Company of its obligations to the Executive
hereunder or (ii) the long-term assignment of the Executive by the Company to
duties not commensurate with the Executive's position, title and abilities
(either such event in (i) or (ii), "Good Reason"). Notwithstanding the forgoing,
the election by Executive to terminate for Good Reason shall not constitute a
waiver of Executive's rights, or have the effect of diminishing such rights, in
the event that the Company is determined to have breached this Agreement or
defaulted on its obligations hereunder.

            (b) In the event that the Executive shall terminate his employment
hereunder for Good Reason, the Executive shall promptly submit a written
statement to the full Board setting forth in reasonable detail the relevant
facts and circumstances relating to such determination.

      6.03. Death or Disability.

            (a) In the event Executive dies during the Term, this Agreement
shall automatically terminate, such termination to be effective on the date of
Executive's death.

            (b) In the event that Executive shall suffer a disability which
shall have prevented him from performing satisfactorily his obligations
hereunder for a period of at least 90 consecutive days, or 180 non-consecutive
days within any 365 day period, the Company shall have the right to terminate
this Agreement, such termination to be effective upon the giving of notice
thereof to Executive in accordance with Section 7.02 hereof.

      6.04. Effect of Termination.

            (a) In the event of termination of Executive's employment for any
reason, the Company shall pay Executive (or his beneficiary in the event of his
death) any base salary or other compensation earned but not paid to Executive
prior to the effective date of such termination.

            (b) In the event that the Executive shall terminate his employment
hereunder for

<PAGE>

Good Reason, the Executive shall be entitled to six months base salary beyond
the effective date of such termination (or base salary for such shorter period
as shall remain in the Term as if not so terminated).

            (c) In the event of termination of Executive's employment (i) by the
Company for Cause, (ii) by Executive for any reason other than Good Reason, or
(iii) because of Executive's death or disability, neither the Executive nor any
beneficiary shall be entitled to any further compensation other than the amounts
described in Section 6.04(a) hereof.

            (d) In the event of termination of Executive's employment by the
Company other than for Cause (including a Change of Control Termination), the
Company shall pay Executive, in addition to the amounts described in Section
6.04(a) hereof, an amount equal to the value of the continued payment of
Executive's base salary for the remainder of the Term as if not so terminated.
In addition, upon termination of the Executive's employment by the Company other
than for Cause (including a Change of Control Termination), the Company shall
pay to Executive upon such termination an amount, determined by the Board in its
reasonable discretion, equivalent to the value of the benefits that Executive
was receiving at the time of termination, including without limitation those
benefits referred to in Section 4.01(b) hereof and Schedule I hereto, for the
remainder of the Term as if not so terminated. All amounts due under this
Section 6.04(d) shall be payable, at the discretion of the Company, either (i)
in a lump sum, or (ii) in equal monthly installments for the remainder of the
Term as if not so terminated.

                                   ARTICLE VII

                                  Miscellaneous

      7.01. Benefit of Agreement; Assignment; Beneficiary.

            (a) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns, including, without limitation, any
corporation or person which may acquire all or substantially all of the
Company's assets or business, or with or into which the Company may be
consolidated or merged. This Agreement shall also inure to the benefit of, and
be enforceable by, the Executive and his personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Executive should die while any amount would still be payable to
the Executive hereunder if he had continued to live, all such amounts shall be
paid in accordance with the terms of this Agreement to the Executive's
beneficiary, devisee, legatee or other designee, or if there is no such
designee, to the Executive's estate.

            (b) The Company shall require any successor (whether direct or
indirect, by operation of law, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.

      7.02. Notices. Any notice required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered or if sent by
facsimile (receipt confirmed), telegram or telex or by registered or certified
mail, postage prepaid, with return receipt requested, addressed: (a) in the case
of the Company, to SPEEDUS.COM, Inc., 140 58th Street, Suite 7E, Brooklyn, New
York 11220, Facsimile Number: (718) 567-4388, Attention: General Counsel, or to
such other address and/or to the attention of such other person as the Company
shall designate by written notice to Executive; and (b) in the case of
Executive, to SPEEDUS.COM, Inc., 140 58th Street, Suite 7E, Brooklyn, New York
11220, Facsimile Number: (718) 567-4388, or to such other address as Executive
shall designate by written notice to the

<PAGE>

Company. Any notice given hereunder shall be deemed to have been given at the
time of receipt thereof by the person to whom such notice is given.

      7.03. Entire Agreement; Amendment. This Agreement contains the entire
agreement of the parties hereto with respect to the terms and conditions of
Executive's employment during the term and supersedes any and all prior
agreements and understandings, whether written or oral, between the parties
hereto with respect to compensation due for services rendered hereunder. This
Agreement may not be changed or modified except by an instrument in writing
signed by both of the parties hereto.

      7.04. Waiver. The waiver by either party of a breach of any provision of
this Agreement shall not operate or be construed as a continuing waiver or as a
consent to or waiver of any subsequent breach hereof.

      7.05. Headings. The Article and Section headings herein are for
convenience of reference only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions hereof.

      7.06. Governing Law. This Agreement shall be governed by, and construed
and interpreted in accordance with, the internal laws of the State of New York
without reference to the principles of conflict of laws.

      7.07. Agreement to Take Actions. Each party hereto shall execute and
deliver such documents, certificates, agreements and other instruments, and
shall take such other actions, as may be reasonably necessary or desirable in
order to perform his or its obligations under this Agreement or to effectuate
the purposes hereof.

      7.08. Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations.

      7.09. Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision or provisions of this Agreement, which shall remain in full
force and effect. If any provision of this Agreement is held to be invalid, void
or unenforceable in any jurisdiction, any court or arbitrator so holding shall
substitute a valid and enforceable provision that preserves to the maximum
lawful extent the terms and intent of such provisions of this Agreement. If any
of the provisions of, or covenants contained in, this Agreement are hereafter
construed to be invalid or unenforceable in any jurisdiction, the same shall not
affect the remainder of the provisions or the enforceability thereof in any
other jurisdiction, which shall be given full effect without regard to the
invalidity or unenforceability in such other jurisdiction. Any such holding
shall affect such provision of this Agreement solely as to that jurisdiction,
without rendering that or any other provisions of this Agreement invalid,
illegal or unenforceable in any other jurisdiction. If any covenant should be
deemed invalid, illegal or unenforceable because its scope is considered
excessive, such covenant will be modified so that the scope of the covenant is
reduced only to the minimum extent necessary to render the modified covenant
valid, legal and enforceable.

      7.10 Remedies. Executive acknowledges the Company's remedy at law for a
breach by Executive of the provisions of Sections 5.02 and 5.03 will be
inadequate. Executive further acknowledges that Executive's agreement to abide
by the provisions of Section 5.02 and 5.03 is a material condition to the
Company's willingness to employ Executive and enter into this Agreement.
Accordingly, in the event of a breach or threatened breach by Executive of any
provision of Section 5.02 and 5.03, the Company shall be entitled to injunctive
relief in addition to any other remedy it may have.

      7.11. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

<PAGE>

      IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement effective as of the date first above written.

                                        SPEEDUS.COM, Inc.

                                        By: /s/ Angela M. Vaccaro
                                            ------------------------------------
                                        Name: Angela M. Vaccaro
                                        Title: Controller and Chief Accounting
                                               Officer

                                        /s/ Shant S. Hovnanian
                                        ----------------------------------------
                                        Shant S. Hovnanian

<PAGE>

                                   SCHEDULE I

       Employment Agreement Between SPEEDUS.COM, Inc. (the "Company") and
                        Shant S. Hovnanian ("Executive")

   Additional Payments and/or Reimbursements to the Executive During the Term

1.    Executive shall be entitled to the use of a corporate apartment in
      Manhattan commencing on the Effective Date and continuing through the
      Term. The amounts expended by the Company for the rental and maintenance
      of such apartment shall be subject to the approval of the Compensation
      Committee of the Board of Directors.

2.    During the Term, the Company shall pay for the membership of Executive in
      a country club in the New York metropolitan area and membership of
      Executive in up to two relevant "social clubs" in New York City acceptable
      to the Company (the National Arts Club and the Penn Club being two that
      are acceptable).

3.    During the Term, the Company shall pay, or reimburse Executive, for the
      premium payments for a $1,000,000 term life insurance policy with the
      beneficiary designated by Executive.

4.    During the Term, Executive shall be entitled to the use of, or
      reimbursement for the lease of, a "company car" plus insurance, repairs
      and maintenance and garage costs.Exhibit 10(p)

                                LICENSE AGREEMENT

THIS AGREEMENT is made and entered into this 18th day of December, 2001, (the
"Effective Date") by and between PHARMOS LTD., a corporation duly organized and
existing under the laws of the State of Israel, (hereinafter referred to as
"Pharmos"), and HERBAMED LTD., a corporation duly organized and existing under
the laws of the State of Israel (hereinafter referred to a "Licensee").

                                   WITNESSETH

WHEREAS, Pharmos is the owner of certain "Patent Rights" (as defined in Article
1) relating to improved oral delivery of lipophilic substances;

WHEREAS, Pharmos is willing to grant, and Licensee desires to obtain, a license
under the Patent Rights upon the terms and conditions hereinafter set forth;

WHEREAS, Pharmos Corporation, a corporation duly organized and existing under
the laws of Nevada and the Parent Company of its wholly owned subsidiary,
Pharmos Ltd. and Licensee entered into a License Agreement on May 21st, 1997
(the "Original Agreement"); and

WHEREAS, it is now the parties desire to cancel the Original Agreement and any
subsequent agreements entered into thereafter by the parties and to be bound
only by the terms of this current Agreement;

NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained here the parties hereto agree as follows:

                             ARTICLE I - DEFINITIONS

For the purposes of this Agreement, the following words and phrases shall have
the following meanings:

1.1 "Licensee" shall include all of the following:

(a) a related company of Licensee, the voting stock which is directly or
indirectly at least fifty percent (50%) owned or controlled by Licensee;

(b) an organization which directly or indirectly controls more than fifty
percent (50%) of the voting stock of Licensee;

(c) an organization, the majority ownership of which is directly or indirectly
common to the ownership of Licensee.

1.2 "Patent Rights" shall mean all information, inventions or discoveries
covered by the patents and/or patent applications listed in Appendix A hereto,
and any and all patents issuing therefrom, owned by or licensed to Pharmos with
the right to sublicense. "Patents" as used in this Agreement shall include,
without limitation, all substitutions, continuations, continuations-in-part,
divisions, reissues, extensions and foreign counterparts of the aforementioned.

1.3 A "Licensed Product" shall mean active ingredient and/or compound in the
Field of Use (as such term is defined in Section 1.6, below).

1.4 "Net Sales" shall mean Licensee's billings for Licensed Products produced
hereunder less the sum of the following:

(a) Discounts allowed in amounts customary in the trade;

<PAGE>

(b) sales, tariff duties and/or use taxes directly imposed and with reference to
particular sales;

(c) outbound transportation prepaid or allowed; and

(d) amounts allowed or credited on returns.

No deductions shall be made for commissions paid to individuals whether they be
with independent sales agencies or regularly employed by Licensee and on its
payroll, or for cost of collections. Licensed Products shall be considered
"sold" when payment in respect thereof is received by Licensee.

1.5 "Territory" shall mean the world.

1.6 "Field of Use" shall mean the field of Nutraceuticals, specifically in the
following categories: formulation of food and dietary supplements, food
additives, nutritional ingredients, natural ingredients, food industry, food
ingredients, food and functional food applications, nutritional beverages,
vitamins, minerals, herbals, herbal supplements, health nutrients,
phytonutraceuticals, cosmetics, cosmoceuticals (excluding any and all existing
or future topical pharmaceutical applications and or uses in the cosmetic and/or
cosmoceuticals fields) and any new applications or uses developed or arising in
the field of Nutraceuticals.

                               ARTICLE II - GRANT

2.1 Pharmos hereby grants to Licensee the exclusive right and license under the
Patent Rights to make, have made, use and sell Licensed Products in the
Territory, for the Field of Use, subject to the provisions of Article IIA below.

2.2 The term of this Agreement shall be for a period of 3 (three) years (the
"Initial Term"), unless terminated earlier under Article X111, below.
Thereafter, this Agreement shall be renewed automatically for additional
consecutive three-year terms ("Renewal Term") and shall continue to remain in
effect until the expiration of the last patent relevant to the technology
granted hereunder and for so long as License uses its best efforts, including by
not limited to financing, developing and commercializing the Licensed Products
in the Field of Use. In the event Pharmos reasonably determines that Licensee is
not utilizing the exclusive rights granted to it herein so as to achieve the
aforementioned objectives, Pharmos may provide License with notice of its desire
to not renew this Agreement thirty days in advance of any Renewal Term.

2.3 In order to establish exclusivity for Licensee, Pharmos hereby agrees that
it shall not grant any other license to make, have made, use and sell Licensed
Products in the Territory for the Field of Use during the period of time
commencing with the Effective Date of this Agreement and terminating with the
expiration of this Agreement.

2.4 Pharmos reserves the right to practice under the Patent Rights for research
purposes and other uses not within the Field of Use.

2.5 Licensee may enter into sublicensing agreements consistent with this
Agreement for the rights, privileges and licenses granted hereunder, subject to
the prior approval of Pharmos on a case-by-case basis, which approval shall not
be unreasonably withheld. Licensee shall notify Pharmos of the initiation of
license negotiations with all potential sublicensees.

2.6 Licensee agrees to forward to Pharmos copies of all sublicense agreements
within thirty (30) days of the execution of such sublicense agreements, which
will be treated confidentially in the same manner as Pharmos treats all
confidential documents, and further agrees to forward to Pharmos annually a copy
of such reports received by Licensee from its sublicensees during the preceding
twelve (12) month period under the sublicenses as shall be pertinent to a
royalty accounting under said sublicense agreements.

2.7 Licensee's rights to produce any such Licensed Product shall automatically
expire if Licensee has not amply demonstrated a good faith effort to utilize the
rights and privileges granted hereunder in research and

                                       2
<PAGE>

development and/or marketing of Licensed Product(s) within 5 (five) years
following the Effective Date of this Agreement.

2.8 The license granted hereunder shall not be construed to confer any rights
upon Licensee by implication, estoppel or otherwise not specifically set forth
herein. Licensee (for itself and its sublicensees) acknowledges and agrees that
Pharmos is and shall remain the sole owner of the Patent Rights, and that
neither Licensee nor its sublicensees have any rights in or to the Patent Rights
other than the rights specifically granted herein to Licensee.

                         ARTICLE IIA - COMMERCIALIZATION

Licensee shall use its best efforts to commercialize and achieve sales of
Licensed Products throughout the Territory. If Licensee fails to commence sales
of the Licensed Product within a period of five (5) years from the Effective
Date, then may, at its option, convert the license granted under Article II
above to a non-exclusive License

                           ARTICLE III - DUE DILIGENCE

3.1 Licensee, through a thorough, vigorous and diligent program for exploitation
of the Patent Rights, shall use its best efforts to attain maximum
commercialization of Licensed Products.

3.2 Licensee shall deliver to Pharmos on or before the expiration of one year
from the Effective Date a business plan showing the amount of money, number and
kind of personnel and time budgeted and planned for each phase of development of
the Licensed Products and shall provide similar reports to Pharmos on an annual
basis on or before the ninetieth (90th) day following the close of Licensee's
fiscal year.

                              ARTICLE IV - PAYMENTS

4.1 For the rights, privileges and license granted hereunder, Licensee shall
make royalty payments to Pharmos in the manner, and in the amounts, hereinafter
provided to the end of the term of this Agreement or until this Agreement shall
be terminated, as hereinafter provided:

(i) After the Effective Date of this Agreement, six percent (6%) of Licensee's
Net Sales, for so long as Licensee's Net Sales remain below the amount of $20
(twenty) million US Dollars. Thereafter, after Licensee's sales increase so they
total above the amount of $20 (twenty) million US Dollars, but not above $50
(fifty) million US Dollars, the royalty payments due to Pharmos shall be 5%. In
the event Licensee's Net sales increase to an amount above $50 (fifty) million
US Dollars, the royalty payments due to Pharmos shall be 4% of Licensee's Net
Sales, All as summarized in the table immediately below;

Licensee's Net Sales     Royalty Payments
--------------------     ----------------
Up to US$ 20 million            6%
US$ 20 - 50 million             5%
Above US$ 50 million            4%

The above listed royalty payments shall also apply to any Net Sales of any
sublicensees of Licensee. Without derogating from the above, Pharmos, in its
sole discretion and on a case by case basis, may determine that the percentage
of royalty payments due from a specific sublicensee may be lower than the
amounts set forth herein.

(ii) thirty percent (30%) of amounts payable to Licensee as royalty payments
from any sublicensee in connection with any sublicense under the Licensed
Patents.

4.2 No multiple royalties shall be payable because any Licensed Product, its
manufacture, use or sale are or shall be covered by more than one Patent Rights
patent application or Patent Rights patent licensed under this Agreement.

                                       3
<PAGE>

4.3 Royalty payments above shall be paid in freely transferable US Dollars to a
bank account designated by Pharmos. If any currency conversion shall be required
in connection with any payment hereunder, such conversion shall be made by using
the exchange rate prevailing at Bank Leumi Ltd. on the last business day of the
calendar quarterly reporting period to which such royalty payments relate.
Payments shall be made in accordance with the provisions of Article 5.

4.4 Licensee shall be liable for any and all deductions for taxes, assessments
or other charges which may be levied by a proper taxing authority on account of
royalties or other payments accruing to Pharmos under this Agreement. Such taxes
may not be deducted from royalties or other payments to be paid to Pharmos
hereunder.

                         ARTICLE V - REPORTS AND RECORDS

5.1 Licensee shall keep full, true and accurate books of account containing all
particulars that may be necessary for the purpose of showing the amounts payable
to Pharmos hereunder. Said books of account shall be kept at Licensee's
principal place of business. Said books and the supporting data shall be open at
all reasonable times for three (3) years following the end of the calendar year
to which they pertain, to the inspection of Pharmos or its agents for the
purpose of verifying Licensee's royalty statement or compliance in other
respects with this Agreement. All such documents shall be subject to limitations
to disclosure required by law. Licensee shall include substantially the same
inspection rights in any sublicense it grants in order to ensure correctness of
payments due hereunder.

5.2 Licensee within thirty (30) days after March 31, June 30, September 30 and
December 31, of each year, shall deliver to Pharmos true and accurate reports,
giving such particulars of the business conducted by Licensee and its
sublicensees during the preceding three-month period of this Agreement as shall
be pertinent to a royalty accounting hereunder. These shall include at least the
following:

(a) number of Licensed Products manufactured and sold;

(b) total billings for Licensed Products sold;

(c) deductions applicable as provided in Paragraph 1.5; and

(d) total royalty due.

5.3 With each such report submitted, Licensee shall pay to Pharmos the royalties
due and payable under this Agreement. If no royalties shall be due, Licensee
shall so report.

5.4 All payments required under this Agreement (including but not limited to
payments under Articles IV and VI) shall, if overdue, bear interest until
payment at the monthly rate of one and one-half percent (1.5%). The payment of
such interest shall not foreclose Pharmos from exercising any other rights it
may have as a consequence of the lateness of any payment.

                         ARTICLE VI - PATENT PROTECTION

6.1 Pharmos shall in consultation with Licensee, apply for, seek issuance of,
and maintain during the term of this Agreement the applicable current Patent
Rights in the relevant countries on an as needed basis . The prosecution, filing
and maintenance of all Patent Rights patents and applications shall be the
primary responsibility of Pharmos; provided, however, Licensee shall have
reasonable opportunities to advise Pharmos and shall cooperate with Pharmos in
such prosecution, filing and maintenance.

6.2 Payment of all customary and usual fees and costs relating to the filing,
prosecution, and maintenance of the Patent Rights relating to the specific
patents used in the field of Use, as defined above, shall be the responsibility
of Licensee, after the date of this Agreement. Pharmos shall bill Licensee for
these costs and fees as received, and Licensee shall pay for these costs and
fees within thirty (30) days of invoicing by Pharmos. All requests for payments
shall be accompanied by appropriately detailed information.

                                       4
<PAGE>

6.3 If Licensee decides to discontinue the financial support of the prosecution
or maintenance of the protection, Pharmos shall be free to file or continue
prosecution or maintain any such application(s), and to maintain any protecting
issuing thereon in any country at Pharmos' expense, and Pharmos shall be free to
license said application(s) and patent(s) to third parties, and/or terminate
this Agreement.

6.4 Licensee agrees to mark all Licensed Products in such a manner as to conform
with the patent laws and practice of the country of manufacture, sale or use.

6.5 Pharmos represents and warrants that (a) Pharmos owns the rights to the
Patent Rights and has the full right and power to grant the licenses set forth
in Article 2 of this Agreement, and (b) to the best of Pharmos's knowledge, the
execution, delivery and performance of this Agreement by Pharmos does not
conflict with or violate any provision of law to which Pharmos is subject, or of
any agreement to which Pharmos is a party or by which it is bound.

                           ARTICLE VII - INFRINGEMENT

7.1 Licensee shall inform Pharmos promptly in writing of any alleged
infringement of the Patent Rights by a third party and of any available evidence
thereof.

7.2 During the term of this Agreement, Pharmos shall have the right, but shall
not be obligated, to prosecute at its own expense any such infringements of the
Patent Rights. If Pharmos prosecutes any such infringement, Licensee agrees that
Pharmos may join Licensee as a party plaintiff in any such suit, without expense
to Licensee. The total cost of any such infringement action commenced or
defended solely by Pharmos shall be borne by Pharmos and Pharmos shall keep any
recovery or damages for past infringement derived therefrom. Costs for jointly
prosecuted or defended actions shall be borne by Pharmos, and Licensee who shall
share equally any recovery or damages. Licensee may join and actively
participate in such action at its expense and share in any recovery, to the
extent of Licensee's customary and usual legal expenses relating to the
litigation.

7.3 If within 90 days after having been notified of any alleged infringement or
such shorter time prescribed by law, Pharmos shall have been unsuccessful in
persuading the alleged infringer to desist and shall not have brought and shall
not be diligently prosecuting an infringement action, or if Pharmos shall notify
Licensee at any time prior thereto of its intention not to bring suit against
any alleged infringer then, and in those events only, Licensee shall have the
right, but shall not be obligated, to prosecute at its own expense any
infringement of the Patent Rights, and Licensee may, for such purposes, use the
name of Pharmos as a party plaintiff; provided, however, that such right to
bring an infringement action shall remain in effect only for so long as the
license granted herein is in effect (or the action is being pursued) whichever
is later. No settlement, consent judgment or other voluntary final disposition
of the suit may be entered into without the consent of Pharmos which consent
shall not unreasonably be withheld. Licensee shall indemnify Pharmos against any
order for costs that may be made against Pharmos in such proceedings.

7.4 In the event that Licensee shall undertake the enforcement and/or defense of
the Patent Rights by litigation, Licensee may withhold up to fifty percent (50%)
of the royalties or other payments otherwise thereafter due Pharmos hereunder
and apply the same toward expenses related to the infringement including, but
not limited to, reimbursement of its expenses related to the litigation,
including reasonable attorneys' fees, in connection therewith. Said withholding
of royalties shall begin no earlier than the date Licensee first receives a bill
for professional services or expenses associated with the enforcement and/or
defense of the Patent Rights. Any recovery of damages by Licensee for any such
suit shall be applied first in satisfaction of any unreimbursed expenses and
legal fees of Licensee relating to the suit, and next toward reimbursement of
Pharmos for any royalties past due or withheld and applied pursuant to this
Article VII. The balance remaining from any such recovery shall be divided
equally between Licensee and Pharmos.

7.5 In any infringement suit as either party may institute to enforce the Patent
Rights pursuant to this Agreement, the other party hereto shall, at the request
and expense of the party initiating such suit, cooperate in all

                                       5
<PAGE>

respects and, to the extent possible, have its employees testify when requested
and make available relevant records, papers, information, samples, specimens,
and the like.

7.6 In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the Patent Rights shall be brought against Licensee,
Pharmos at its option, shall have the right, within thirty (30) days after
commencement of such action, to intervene and take over the sole defense of the
action at its own expense.

                        ARTICLE VIII - PRODUCT LIABILITY

8.1 Licensee shall at all times during the term of this Agreement and
thereafter, indemnify, defend and hold Pharmos, its officers, directors,
employees and affiliates, harmless against all claims and expenses, including
legal expenses and reasonable attorneys' fees, arising out of the death of or
injury to any person or persons or out of any damage to property and against any
other claim, proceeding, demand, expense and liability of any kind whatsoever
resulting from the production, manufacture, sale, use, consumption or
advertisement of the Licensed Product(s) or arising from any obligation of
Licensee or its sublicensees hereunder.

8.2 Licensee and its sublicensees shall obtain and carry in full force and
effect comprehensive general liability insurance, including products liability
insurance, with reputable and financially secure insurance carriers which shall
protect Pharmos in regard to events covered by Paragraph 8.1 above. Such
insurance shall include Pharmos as a named insured, shall require prior notice
to Pharmos before cancellation and shall be in an amount which is reasonable in
light of the anticipated use of the licenses granted hereunder.

8.3 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, PHARMOS MAKES NO
REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING.
IN NO EVENT WILL PHARMOS BE LIABLE FOR DAMAGES OF ANY NATURE, INCLUDING DIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE EXERCISE OF
LICENSEE'S RIGHTS UNDER THE LICENSE GRANTED PURSUANT TO THIS AGREEMENT OR THE
USE OF THE LICENSED PATENTS.

                     ARTICLE IX - CONFIDENTIAL INFORMATION.

All scientific and technical information in respect of the Licensed Patents
communicated by Pharmos to Licensee, including, without limitation, information
contained in patent applications, shall be received in strict confidence by
Licensee and its sublicensees, used only for the purposes of this Agreement and
not disclosed by Licensee or its sublicensees or their respective agents or
employees without the prior written consent of Pharmos, unless such information
(i) was in the public domain at the time of disclosure, (ii) later became part
of the public domain through no act or omission of Licensee or its sublicensees,
or their respective employees agents, successors, or assigns, (iii) was already
known by Licensee at the time of disclosure and Licensee can so demonstrate by
competent written proof or (iv) is required to be disclosed to a governmental
agency pursuant to such agency's rule and regulations in order to secure
regulatory approval, provided that Licensee shall first give notice to Pharmos
of such disclosure and shall have made a reasonable effort to maintain the
confidentiality of such information. Licensee's right to disclose information to
its sublicensees under the Licensed Patents is subject to the agreement by such
sublicensees to be bound by these confidentiality provisions.

                           ARTICLE X - EXPORT CONTROLS

Licensee hereby agrees that it shall not sell, transfer, export or re-export any
Licensed Products or related information in any form, or any direct products of
such information, except in compliance with all applicable laws, and
regulations, and will not sell, transfer, export or re-export any such Licensed
Products or information to any persons or any entities with regard to which
there exist grounds to suspect or believe that they are violating such laws.
Licensee shall be solely responsible for obtaining all licenses, permits or
authorizations required from any government for any such export or re-export. To
the extent not inconsistent with this Agreement, Pharmos agrees to

                                       6
<PAGE>

provide Licensee with such assistance as it may reasonably request in obtaining
such licenses, permits or authorization.

                          ARTICLE XI - NON-USE OF NAME

Licensee shall not use the name of Pharmos nor any adaptation thereof, in any
advertising, promotional or sales literature without prior written consent
obtained from Pharmos in each case, except that Licensee may state that it is
licensed by Pharmos under one or more of the patents and/or applications
comprising the Patent Rights. Nothing herein shall apply to disclosures required
by law or regulation. Licensee may not use the name of Pharmos to imply that
Pharmos represents that the Patent Rights or Licensed Products are merchantable,
are fit for a particular purpose, or are worthy of investment by an individual
or an organizational investor.

Pharmos shall not use the names of Licensee, nor of any of Licensee's employees,
in any advertising, promotional or sales literature without prior written
consent obtained from Licensee in each case. Pharmos may not use the name of
Licensee to imply that either organization represents that the Patent Rights or
Licensed Products are merchantable, are fit for a particular purpose, or are
worthy of investment by an individual or an organizational investor.

                            ARTICLE XII - ASSIGNMENT

This Agreement is not assignable and any attempt to do so shall be void, except
in the event Pharmos undergoes/effectuates a sale of all or substantially all of
its securities or assets, a merger or acquisition, or reorganization.

                           ARTICLE XIII - TERMINATION

13.1 If Licensee shall cease to carry on its business, this Agreement shall
terminate upon notice by Pharmos.

13.2 Should Licensee fail to pay Pharmos any amounts due and payable hereunder,
Pharmos shall have the right to terminate this Agreement on thirty (30) days'
notice, unless Licensee shall pay Pharmos within the thirty (30) day period, all
such amounts and interest due and payable. Upon the expiration of the thirty
(30) days period, if Licensee shall not have paid all such amounts and interest
due and payable, the rights, privileges and license granted hereunder shall
terminate.

13.3 Upon any material breach or default of this Agreement by Licensee, other
than those occurrences set out in Paragraph 13.1 and 13.2 hereinabove, which
shall always take precedence in that order over any material breach or default
referred to in this Paragraph 13.3, Pharmos shall have the right to terminate
this Agreement and the rights, privileges and license granted hereunder by sixty
(60) days' notice to Licensee. Such termination shall become effective unless
Licensee shall have cured any such breach or default prior to the expiration of
the sixty (60) day period. Upon said termination all Patent Rights and all
regulatory documents related thereto shall revert to Pharmos and Licensee shall
execute all necessary documents to effectuate such transfer.

13.4 Licensee shall have the right to terminate this Agreement at any time on
six (6) months' notice to Pharmos, and upon payment of all amounts due Pharmos
through the effective date of the termination.

13.5 Pharmos may terminate this Agreement for any particular Licensed Product
upon the occurrence of the third separate default by Licensee within any
consecutive three (3) year period for failure to pay royalties when due on said
Licensed Product.

13.6 Upon termination of this Agreement for any reason, nothing herein shall be
construed to release either party from any obligation that matured prior to the
effective date of such termination. Licensee and any sublicensee thereof may,
however, after the effective date of such termination, sell all Licensed
Products, and complete Licensed Products in the process of manufacture at the
time of such termination and sell the same, provided that Licensee shall pay to
Pharmos the royalties thereon as required by Article IV of this Agreement and
shall submit the reports required by Article V hereof on the sales of Licensed
Products.

                                       7
<PAGE>

13.7 Upon termination of this Agreement for any reason, any sublicensee not then
in default shall have the right to seek a license from Pharmos.

13.8 The rights and obligations of the parties under Articles VIII, IX and XIV
shall survive any termination of this Agreement.

                           ARTICLE XIV - CHOICE OF LAW

This Agreement is made in accordance with and shall be governed and construed in
accordance with the laws of the State of Israel, without regard to conflicts of
laws rules.

             ARTICLE XV - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

15.1 The payments to be made hereunder to Pharmos shall be made by wiring the
required amount to Pharmos' bank in accordance with Pharmos' instructions or by
mailing or sending by commercial courier checks for the required amount to
Pharmos' address.

15.2 Notices provided for herein shall effectively be given by facsimile or by
mailing the same by certified or registered mail or by delivery by commercial
courier, in each case properly addressed with charges prepaid, to the fax
numbers/addresses set forth below:

To Licensee:      Herbamed Ltd.

                  Science Park
                  Kiryat Weitzman
                  Rehovot, Israel 76326
                  Attention: Avraham Landa
                  Fax: 00972-8-940-7460

To Pharmos:       Pharmos Limited
                  99 Would Avenue South, Suite 301
                  Iselin New Jersey,  08830 USA
                  Attention: Gad Riesenfeld
                  Fax: 001-904-462-5401

Either party may change its address or fax number by giving notice thereof to
the other party.

               ARTICLE XVI - DIRECTOR AND SHAREHOLDER RATIFICTION

This Agreement shall take effect on the Effective Date, provided that
ratification of this Agreement by the: (i) shareholders' and directors' of
Licensee and (ii) directors' of Licensor is obtained within 90 (ninety) days
from the Effective Date.

                           ARTICLE XVII- MISCELLANEOUS

17.1 The provisions of this Agreement are severable, and in the event that any
provisions of this Agreement shall be determined to be invalid or unenforceable
under any controlling body of the law, such invalidity or unenforceability shall
not in any way affect the validity or enforceability of the remaining provisions
hereof.

17.2 The failure of either party to assert a right hereunder or to insist upon
compliance with any term or condition of this Agreement shall not constitute a
waiver of that right to excuse a similar subsequent failure to perform any such
term or condition by the other party.

                                       8
<PAGE>

17.3 The headings used in this Agreement are for convenience of reference only
and are not intended to be a part of or to affect the meaning or interpretation
of this Agreement.

17.4 No amendment or modification hereof shall be valid or binding upon the
parties unless made in writing and signed by both parties.

17.5 In making and performing this Agreement, Pharmos and Licensee act and shall
act at all times as independent contractors and nothing contained in this
Agreement shall be construed or implied to create an agency, partnership or
employer and employee relationship between Pharmos and Licensee. At no time
shall one party make commitments or incur any charges or expenses for or in the
name of the other party except as specifically provided herein.

17.6 The parties hereto acknowledge that this Agreement sets forth the entire
Agreement and understanding of the parties hereto as to the subject matter
hereof, and shall not be subject to any change or modification except by the
execution of a written instrument subscribed to by the parties hereto.

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

IN WITNESS WHEREOF, the parties have hereunto set their hands and seals and duly
executed this Agreement the day and year set forth below.

PHARMOS LTD.                            HERBAMED LTD.

By: GAD RIESENFELD                      By: AVRAHAM LANDA
    -------------------------------         ------------------------------------
Name: Gad Riesenfeld                    Name: Avraham Landa
Title: President and C.O.O              Title: General Manager
       of Pharmos Corporation

Date: 26/12/01                          Date: 20/12/01

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]