Document:

Exhibit
10.96

COMPROMISE,
SETTLEMENT, AND RELEASE AGREEMENT

This Compromise,
Settlement, and Release Agreement (“Agreement”)
is made and entered into by and among CRDENTIA CORP., a Delaware corporation (“Crdentia”); CRDE CORP, a Delaware
corporation (“CRDE”); ARIZONA HOME
HEALTH CARE/PRIVATE DUTY, INC., an Arizona corporation (“Arizona Home Health”); WILLIAM “BILL” W.
CROCKER (“B. Crocker”); and
WILLIAM “CAMP” C. CROCKER (“C. Crocker”)(B.
Crocker and C. Crocker are sometimes collectively referred to herein as the “Crockers”)(Crdentia, CRDE, Arizona Home
Health, B. Crocker, and C. Crocker are sometimes referred to herein
collectively as the “Parties” or
singularly as a “Party”), and is
effective as of March 29, 2007 (the “Effective
Date”).

I.

RECITALS

WHEREAS,
on or about August 26, 2004, Crdentia, CRDE, AHHC Acquisition
Corporation (a wholly-owned subsidiary of CRDE), Arizona Home Health, B.
Crocker, and C. Crocker entered into an Agreement and Plan of Reorganization
(the “Acquisition Agreement”) and
related agreements, including a Receivables Allocation Agreement (the “Allocation Agreement”);

WHEREAS,
pursuant to the Acquisition Agreement, AHHC Acquisition
Corporation merged with and into Arizona Home Health such that Arizona Home
Health remained as the surviving corporation and became a wholly-owned
subsidiary of CRDE and thus part of the corporate umbrella of Crdentia;

 1
 

WHEREAS,
on or about February 23, 2006, B. Crocker instituted a legal
proceeding styled William C. Crocker v.
Crdentia Corp. and Arizona Home
HealthCare/Private Duty, Inc. Civil Action No. 06C-02-226 SCD;
pending in the Superior Court of the State of Delaware in and for New Castle
County (the “Lawsuit”), wherein
B. Crocker asserted claims against Crdentia and Arizona Home Health for,
among other things, breach of contract, declaratory relief, and conversion
arising out of the Acquisition Agreement and the Allocation Agreement;

WHEREAS,
on or about May 8, 2006, Crdentia, Arizona Home Health, and
CRDE (as intervenor) filed their counterclaim in the Lawsuit, asserting claims
against the Crockers for, among other things, fraud, indemnity, and declaratory
relief arising out of the Acquisition Agreement and the Allocation Agreement;

WHEREAS,
the Parties desire to avoid the additional cost, time, effort,
and uncertainties that would result from litigating their respective positions
and desire to enter into a settlement and complete and final release regarding
the Lawsuit and all other matters between them;

WHEREAS,
the Parties have agreed on all of the terms of this Agreement
through extensive arms-length negotiations between the Parties and/or their
counsel; and

NOW
THEREFORE, in consideration of the mutual covenants,
representations, warranties, and agreements undertaken herein, and other good
and valuable consideration, the sufficiency of which is hereby mutually
acknowledged, the Parties agree as follows:

II.

TRANSFER
OF CRDENTIA COMMON STOCK TO THE CROCKERS

1.         Within ten (10) days of
the Effective Date, Crdentia shall issue the Crockers a total of 312,500 fully
paid, non-assessable shares (156,250 shares to each of B. Crocker and C.
Crocker) of Crdentia common stock (the “Shares”).
Crdentia represents and warrants to the

 2
 

Crockers that the
issuance of such Shares has been duly authorized by all appropriate corporate
action of Crdentia.

2.         Investment
Representations:

(a)                     This
Agreement is made in reliance upon the Crockers’ representation to Crdentia,
which by their acceptance hereof the Crockers hereby confirm, that the Shares
will be acquired for investment for their own account, not as a nominee or
agent, and not with a view to the sale or distribution of any part thereof, and
that the Crockers have no present intention of selling, granting participation
in, or otherwise distributing the same. The Crockers also represent and warrant
that they have sufficient business and financial experience to enable them to
protect their own interests in connection with the issuance of the Shares
hereunder.

(b)                    Each of the
Crockers is an “accredited investor” as defined in Rule 501 under the
Securities Act of 1933, as amended (the “Act”). Each of the Crockers believes
that he has received all the information he considers necessary or appropriate
for deciding whether to accept the Shares. The Crockers further represent that
they have had an opportunity to ask questions and receive answers from Crdentia
regarding the business, properties, prospects and financial condition of
Crdentia.

(c)                     The Crockers
understand that the Shares they are accepting hereunder are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being
acquired from Crdentia in a transaction not

 3
 

involving a public
offering and that under such laws and applicable regulations such securities
may be resold without registration under the Act only in certain limited
circumstances. In this connection, the Crockers represent that they are
familiar with SEC Rule 144, as presently in effect, and understand the resale
limitations imposed thereby and by the Act. The Crockers understand that the
Shares have not been registered under the Act and have not been registered or
qualified in any state in which they are offered, and thus the Crockers will
not be able to resell or otherwise transfer the Shares unless they are registered
under the Act, or qualified under applicable state securities laws, or an
exemption from such registration or qualification is available.

(d)                    It
is understood that the certificate(s) evidencing the Shares shall bear the
following legend:

“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO SECURITIES AND EXCHANGE
COMMISSION RULE 144 PROMULGATED UNDER SUCH ACT.”

 4
 

3.         The Crockers represent
and warrant to Crdentia that, in electing to accept the Shares, they have
relied solely on publicly available information regarding Crdentia and that
Crdentia has not provided them with any non-public information or made any
representations or warranties whatsoever regarding Crdentia’s business or the
value of the Shares.

III.

DESIGNATED
RECEIVABLES

4.         The Crockers hereby
assign to Crdentia and/or Arizona Home Health all of their right, title, and
interest, if any, in and to the Designated Receivables (as defined in the
Allocation Agreement), including but not limited to any and all receivables
listed on the exhibit attached hereto as Exhibit
“A.”

5.         The Crockers agree that
any monies previously collected by Crdentia and/or Arizona Home Health and not
previously remitted to the Shareholder Representative (as defined in the
Allocation Agreement) in respect of the Designated Receivables shall remain the
sole property of Crdentia and/or Arizona Home Health, and the Crockers agree
that they shall have no rights whatsoever to such monies. Further, the Crockers
agree that any monies collected by Crdentia and/or Arizona Home Health in
respect of the Designated Receivable in the future shall be the sole property
of Crdentia and/or Arizona Home Health, and the Crockers agree that they shall
have no rights whatsoever to such monies.

6.         The Crockers agree that
Crdentia and/or Arizona Home Health shall have no further obligations to the
Crockers under’ the Allocation Agreement.

 5
 

IV.

MUTUAL
GENERAL RELEASES 

7.         For and in consideration
of the terms set forth herein, B. Crocker and C. Crocker on behalf of
themselves and their predecessors, successors, corporations, partners, joint
venturers, partnerships, affiliates, representatives, agents, attorneys,
employees, spouses, insurers, assigns, beneficiaries, and related entities, hereby
fully and forever GENERALLY RELEASE, ACQUIT, DISCHARGE, DISCLAIM, and RENOUNCE
any and all claims, demands, damages, actions, causes of action, and/or suits
of whatever nature, in law or equity, statutory, common law, or otherwise, that
they have, might have, or ever had, known and realized or unknown and not
realized, that are based in whole or in part on any conduct, fact, matter, act,
omission, cause, transaction, or thing whatsoever, occurring from the beginning
of time through the Effective Date of this Agreement, against Crdentia, CRDE,
and/or Arizona Home Health, and/or any of their past, present, and future
parent entities, affiliates, subsidiaries, shareholders, officers, directors,
partners, partnerships, fiduciaries, trustees, employees, agents, insurers,
predecessors, successors, assigns, attorneys, spouses, administrators, and
related entities, including but not limited to any matters that are based on,
arise out of, or are in any way related to or connected with the allegations in
the Lawsuit, the Acquisition Agreement, or the Allocation Agreement.
Notwithstanding anything to the contrary herein, this release does not release
the obligations of the Parties set forth in this Agreement.

8.         For and in consideration
of the terms set forth herein, Crdentia, CRDE, and Arizona Home Health, on
behalf of themselves and their predecessors, successors, corporations, parents,
subsidiaries, members, partners, joint venturers, partnerships, affiliates,
representatives, agents, attorneys, employees, officers, directors, insurers,
assigns, and beneficiaries, hereby fully

 6
 

and forever GENERALLY
RELEASE, ACQUIT, DISCHARGE, DISCLAIM, and RENOUNCE any and all claims, demands,
damages, actions, causes of action, and/or suits of whatever nature, in law or
equity, statutory, common law, or otherwise, that they have, might have, or
ever had, known and realized or unknown and not realized, that are based in
whole or in part on any conduct, fact, matter, act, omission, cause,
transaction, or thing whatsoever, occurring from the beginning of time through
the Effective Date of this Agreement, against B. Crocker and/or C. Crocker
and/or any of their past, present, and future predecessors, successors,
corporations, partners, joint ventures, partnerships, affiliates, representatives,
agents, attorneys, employees, spouses, insurers, assigns, beneficiaries, and
related entities, including but not limited to any matters that are based on,
arise out of, or are in any way related to or connected with the allegations in
the Lawsuit, Acquisition Agreement, or the Allocation Agreement.
Notwithstanding anything to the contrary herein, this release does not release
the obligations of the Parties set forth in this Agreement.

V.

DISMISSAL
OF LAWSUIT

9.         Upon receipt by the
Crockers of the certificates representing the Shares, the Parties shall
immediately file a joint motion to dismiss the Lawsuit with prejudice and
request the Court to execute an order regarding the same that provides that the
Lawsuit is dismissed with prejudice and that all costs of court shall be taxed
against the party incurring same. Counsel for the Crockers will draft and file
such the motion and order with the Court.

 7
 

VI.

ADDITIONAL
PROVISIONS

10.       The Parties represent and
warrant that they have been duly authorized by all requisite action (via
shareholder, board and/or court approval or otherwise, as necessary) to execute
and enter into this Agreement and that the persons executing this Agreement
have the full power, capacity, and authority to execute this Agreement on behalf
of any Party so indicated.

11.       The Parties represent and
warrant that they have not assigned or transferred any of the rights, claims,
or causes of action that are being released pursuant to this Agreement.

12.       This Agreement cannot be
revised, extinguished, or otherwise amended orally. This Agreement may be
revised, extinguished, or otherwise amended only by a writing signed by all of
the Parties or their respective duly authorized representatives.

13.       No breach of any provision
of this Agreement can be waived by any Party unless it is done in writing and
all of the Parties agree to the waiver in writing.  The waiver of any breach of a provision of
this Agreement by a Party shall not be deemed to be a waiver of any other
breach of the same or other provisions of the Agreement.

14.       The Parties and/or their
counsel have jointly reviewed and revised and otherwise contributed to the
drafting of this Agreement and, as a result, the Parties agree that any normal
rule of construction to the effect that any ambiguities are to be resolved
against the drafting Party shall not be employed to the interpretation of this
Agreement.

15.       Any section headings have
been inserted only for convenience of reference and shall not be afforded any
effect in the construction or interpretation of this Agreement.

 8
 

16.       The Parties agree that this
Agreement constitutes the entire agreement between the Parties and supersedes
all prior discussions, negotiations, understandings, and agreements, whether
oral or written, all of which are merged herein.

17.       Should any provision, term,
or condition of this Agreement be declared or determined by any court of
competent jurisdiction to be illegal, unenforceable, or invalid, the validity
or legality of the remaining parts, terms, or provisions shall not be affected
thereby and shall continue in full force and effect and said illegal or invalid
provision, term, or condition shall be deemed not to be part of this Agreement.

18.       Neither the negotiation,
execution, or entry of this Agreement, nor any payment of any consideration
contemplated by this Agreement, shall constitute or shall be construed as an
acknowledgment or admission of liability. This Agreement constitutes a
compromise and settlement and shall not be deemed an admission by any Party of
liability to any other Party or to any person or entity, all liability being
expressly denied by the Parties. Neither this Agreement, nor any of its terms,
shall be offered or received in evidence in any proceeding or utilized in any
manner whatsoever as an admission of any wrongdoing of any nature or any
liability therefore on the part of the Parties.

19.       No Party shall be in breach
of any covenant, agreement, or obligation hereunder unless such Party fails to
cure any alleged breach within ten (10) days from the receipt of written notice
specifying the circumstances of such breach from any other Party.

20.       All notices and
communications hereunder shall be in writing and shall be delivered via
personal delivery, via certified mail, return receipt requested, or via a
reputable overnight delivery service to the Parties at the addresses indicated
in the Acquisition Agreement.

 9
 

21.       This Agreement shall be
governed by and interpreted according to the substantive laws of the State of
Arizona, excluding its choice of law rules.

22.       Any legal proceedings
arising out of the formation, execution, or performance of this Agreement, or
any of the Parties’ rights or remedies hereunder, shall be brought solely in
the state or federal courts in Maricopa County, Arizona.

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

-
END OF TEXT OF AGREEMENT -

 10
 

 

	
  WILLIAM W. CROCKER,

  Individually

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ William W. Crocker

  	
   

  	
   

  	
   

  	
   

  
								

 

	
  THE STATE OF  ARIZONA

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF  MARICOPA

  	
  §

  

 

This instrument was
acknowledged before me on this      day of April,
2007, by William B.
Crocker, for the purposes and consideration set forth herein.

	
   

  	
   

  	
   

  	
  /s/ Ivette Torres

  
	
   

  	
   

  	
   

  	
  Notary
  Public, State of 

  	
   

  
	
   

  	
   

  	
   

  	
  Notary’s
  Printed Name 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [SEAL]

  

 

 11
 

 

	
  WILLIAM C. CROCKER,

  Individually

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ William C. Crocker

  	
   

  	
   

  	
   

  	
   

  
					

 

	
  THE STATE OF  ARIZONA

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF  MARICOPA

  	
  §

  

 

This instrument was
acknowledged before me on this 6 day of April, 2007, by William B. Crocker, for the purposes and
consideration set forth herein.

	
   

  	
   

  	
   

  	
  /s/ Ivette Torres

  
	
   

  	
   

  	
   

  	
  Notary
  Public, State of 

  	
   

  
	
   

  	
   

  	
   

  	
  Notary’s
  Printed Name 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [SEAL]

  

 

 12
 

 

	
  CRDENTIA
  CROP.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ C. Fred Toney

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  C. Fred Toney

  	
   

  	
   

  	
   

  
	
  Title: 

  	
  Chairman

  	
   

  	
   

  	
   

  

 

	
  THE STATE OF CALIFORNIA

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF SAN FRANCISCO

  	
  §

  

 

This instrument
was acknowledged before me on this 9th day
of April, 2007, by C. Fred Toney, as the Chairman of Crdentia Corp., for the
purposes and consideration set forth herein.

	
   

  	
   

  	
   

  	
  /s/ Janna G. Warren

  
	
  [SEAL]

  	
   

  	
   

  	
  Notary Public, State of
  California

  
	
   

  	
   

  	
   

  	
  Notary’s Printed Name
   

  	
  Janna G. Warren

  

 

 13
 

 

	
  CRDE
  CORP.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ C. Fred Toney

  	
   

  	
   

  	
   

  
	
  Name:

  	
  C. Fred Toney

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chairman

  	
   

  	
   

  	
   

  

 

	
  THE STATE OF CALIFORNIA

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF SAN FRANCISCO

  	
  §

  

 

This
instrument was acknowledged before me on this 9th day
of April, 2007, by C. Fred Toney, as the Chairman of CRDE Corp., for the
purposes and consideration set forth herein.

	
  [SEAL]

  	
   

  	
   

  	
  /s/ Janna G. Warren

  
	
   

  	
   

  	
   

  	
  Notary Public, State of
  California 

  
	
   

  	
   

  	
   

  	
  Notary’s Printed Name 

  	
  Janna G. Warren

  

 

 14
 

 

	
  ARIZONA HOME HEALTH CARE/PRIVATE DUTY, INC.,

  
	
   

  
	
  By: 

  	
  /s/ C. Fred Toney

  	
   

  	
   

  	
   

  
	
  Name:

  	
  C. Fred Toney

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chairman

  	
   

  	
   

  	
   

  

 

	
  THE STATE OF CALIFORNIA

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF SAN FRANCISCO

  	
  §

  

 

This
instrument was acknowledged before me on this 9th day
of April, 2007, by C. Fred Toney, as the Chairman of Arizona Home Health
Care/Private Duty, Inc., for the purposes and consideration set forth herein.

	
  [SEAL]

  	
   

  	
   

  	
  /s/ Janna G. Warren

  
	
   

  	
   

  	
   

  	
  Notary Public, State of
  California 

  
	
   

  	
   

  	
   

  	
  Notary’s Printed Name 

  	
  Janna G. Warren

  

 

 15

Crdentia
Corp

	
  Client

  	
   

  	
  Status

  	
   

  	
  Amount

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Alex Zdrale-MD Home Health

  	
   

  	
  Possibly collectible

  	
   

  	
  1,440 00

  
	
  Dustee Parrish

  	
   

  	
  Possibly collectible

  	
   

  	
  640 00

  
	
  Dennis Weaver

  	
   

  	
  Possibly collectible

  	
   

  	
  1,220 00

  
	
  Kevin Stoker

  	
   

  	
  Possibly collectible

  	
   

  	
  450 00

  
	
  Saguaro Horizons

  	
   

  	
  Possibly collectible

  	
   

  	
  3,964 50

  
	
  Arizona Surgical Hospital

  	
   

  	
  Pymts Located

  	
   

  	
  1,114 50

  
	
  Jesse Schifo

  	
   

  	
  Pymts Located

  	
   

  	
  1,288 00

  
	
  Kevin Stoker

  	
   

  	
  Pymts Located

  	
   

  	
  2,175 50

  
	
  Kevin Stoker

  	
   

  	
  Pymts Located

  	
   

  	
  3,094 75

  
	
  Northwest Hospital

  	
   

  	
  Pymts Located

  	
   

  	
  2,252 00

  
	
  Palo Verde Hospital

  	
   

  	
  Pymts Located

  	
   

  	
  1,332 25

  
	
  Posada Del Sol

  	
   

  	
  Pymts Located

  	
   

  	
  7,603 14

  
	
  Sonora

  	
   

  	
  Pymts Located

  	
   

  	
  1,225 50

  
	
  Tuscon Medical Center

  	
   

  	
  Pymts Located

  	
   

  	
  843 38

  
	
  Casa Grande Regional

  	
   

  	
  Short Paid/Adj

  	
   

  	
  -1,741 01

  
	
  Casa Grande Regional

  	
   

  	
  Short Paid/Adj

  	
   

  	
  -2,335 50

  
	
  Casa Grande Regional

  	
   

  	
  Short Paid/Adj

  	
   

  	
  193 00

  
	
  Gerald Johnson

  	
   

  	
  Short Paid/Adj

  	
   

  	
  69 00

  
	
  Kino Community Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  28,497 37

  
	
  MIHS Health

  	
   

  	
  Short Paid/Adj

  	
   

  	
  -356 50

  
	
  MIHS Health

  	
   

  	
  Short Paid/Adj

  	
   

  	
  11 40

  
	
  Roger Lyftogt

  	
   

  	
  Short Paid/Adj

  	
   

  	
  0 50

  
	
  St Joseph’s Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  -53 44

  
	
  Tuscon Medical Center

  	
   

  	
  Short Paid/Adj

  	
   

  	
  -16 00

  
	
  University Physicans Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  861 50

  
	
  University Physicans Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  822 50

  
	
  University Physicans Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  108 00

  
	
  University Physicans Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  -7,448 88

  
	
  University Physicans Hospital

  	
   

  	
  Short Paid/Adj

  	
   

  	
  212 00

  
	
  Posada Del Sol

  	
   

  	
  Cr Adj due Client

  	
   

  	
  4,176 13

  
	
  Arizona State Prison Wilmot

  	
   

  	
  no invoice copy located

  	
   

  	
  14,056 00

  
	
  Arizona State Prison Wilmot

  	
   

  	
  no invoice copy located

  	
   

  	
  45 00

  
	
  Central Arizona Detention Ctr

  	
   

  	
  no invoice copy located

  	
   

  	
  15,327 00

  
	
  Debbie Weaver

  	
   

  	
  no invoice copy located

  	
   

  	
  13,605 00

  
	
  Desert Samaritan

  	
   

  	
  no invoice copy located

  	
   

  	
  218 25

  
	
  Eldorado Hospital

  	
   

  	
  no invoice copy located

  	
   

  	
  2,264 75

  
	
  Florence Correctional

  	
   

  	
  no invoice copy located

  	
   

  	
  5,633 75

  
	
  Kevin Stoker

  	
   

  	
  no invoice copy located

  	
   

  	
  2,669 75

  
	
  Robert Dean

  	
   

  	
  no invoice copy located

  	
   

  	
  3,047 50

  
	
  Roger Lyftogt

  	
   

  	
  no invoice copy located

  	
   

  	
  5,133 50

  
	
  Seaohf

  	
   

  	
  no invoice copy located

  	
   

  	
  628 00

  
	
  Jack Daer-Mercy Care

  	
   

  	
  Possibly collectible

  	
   

  	
  57,142 03

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  171,414.12Exhibit
10.2

Confidential Treatment has been
requested for portions of this exhibit. 
The copy filed herewith omits the information subject to the
confidentiality request.  Omissions are
designated as “***”.  A complete version
of this exhibit has been filed separately with the Securities and Exchange
Commission.

JOINT
RESEARCH AND DEVELOPMENT AND LICENSE AGREEMENT

This Joint Research and
Development and License Agreement (“Agreement”) is
made March 27, 2007 (the “Effective Date”),
by and between Givaudan Schweiz AG, 138 Überlandstrasse, 8600 Dübendorf
Switzerland (“Givaudan”), and Redpoint Bio
Corporation, a Delaware corporation having its principal place of business at
2005 Eastpark Boulevard, Cranbury, New Jersey 08512-3515 (“Redpoint”),
each individually called a “Party” and together called the “Parties” herein.

RECITALS

WHEREAS, the Parties have
significant knowledge of taste receptor technology and chemistry of flavour
compounds; and

WHEREAS, the Parties
desire to enter into a collaborative program for the discovery and development
of Collaboration Compounds that have characteristics of Enhancer Compounds (as
defined hereinafter) or Bitter Blocker Compounds (as defined hereinafter) and
that act primarily through the modulation of the TRPM5 ion channel, a key
molecular element in taste sensation;

WHEREAS, pursuant to the
Research Plan and the Development Plan (as defined hereinafter), the Parties
will work collaboratively in deriving Collaboration Compounds from chemical
libraries, novel chemical synthesis and natural products libraries, selecting
certain Selected Collaboration Compounds (SCCs), optimizing SCCs through
development and regulatory approval to become Licensed Compounds;

WHEREAS, Givaudan desires
to obtain from Redpoint and Redpoint desires to grant Givaudan a worldwide
exclusive license to make, have made, use, sell, have sold and generally
commercially exploit Licensed Products (as defined hereinafter) containing
Licensed Compounds for use in the Field (as defined hereinafter); and

Givaudan and Redpoint
desire to set forth their full agreement and understanding herein.

NOW,
THEREFORE, in consideration of the promises and the
mutual covenants contained herein, the Parties agree as follows:

1.                                      Definitions

(a)                               “Auditor” has the meaning as set forth in Section 25.

(b)                              “Affiliate” means any corporation, company, partnership,
joint venture, association or other entity, which directly or indirectly
controls, is controlled by or is under common control with a Party. As used in
this definition, the term “control” means
direct or indirect beneficial ownership of 50% or more of the outstanding
securities having voting rights in the general meeting.

(c)                               “Agreement” means this agreement, together with all
appendices attached hereto, as it may be amended or supplemented from time to
time hereafter by a written agreement executed by authorized representatives of
both Parties.

(d)                              “Bitter Blocker Compound” means a compound that blocks or
desensitizes bitter taste as determined by a human taste panel evaluation.

(e)                               “Collaboration” has the meaning as set forth in Section
2(a).

(f)                                 “Collaboration Compound” means an Enhancer Compound or a
Bitter Blocker Compound which acts primarily through the modulation of the
TRPM5 channel and that is discovered, identified, selected, synthesized,
developed or otherwise derived under the Collaboration.

(g)                              “Collaboration Period” has the meaning as set forth in
Section 2(a).

(h)                              “Commercial Sale” means, with respect to a Licensed Compound,
any sale or distribution of a Simple Product or an Incorporated Product
containing a Licensed Compound by Givaudan, its Affiliates or permitted
sublicensee to a Third Party in the Territory.

(i)                                  “Commercialization Plan” has the meaning set forth in Section
17(a).

(j)                                  “Confidential Information” means all confidential
information, including without limitation Inventions and Know-How disclosed by
one Party to the other Party pursuant to this Agreement, including, without
limitation, information and material (whether or not patentable) regarding
technology, products, research, development, manufacturing, marketing,
finances, personnel or other business information or objectives, subject to the
exception under Article 26.

(k)                               “Consumer Research” means consumer research studies
conducted by Givaudan, including taste testing on trained consumers using
Givaudan’s proprietary protocols.

(l)                                  “Control” or “Controlled”
means, with respect to Know-How, ability by a Party, as of the Effective Date
or during the Term, to grant a license or sublicense in accordance with the
terms of this Agreement, without violating the terms of any agreement by such
Party with any Third Party that is in effect on the Effective Date.

(m)                            “CRO” means has the meaning set forth in Section 11.

(n)                              “Data Package” has the meaning set forth in Section 4(c).

 2
 

(o)                                 “Development Plan” has the meaning set forth in Section
5(a).

(p)                                 “Effective Date” has the meaning set forth in the preamble.

(q)                                 “Enhancer Compound” means a compound which enhances
sweetness or savory sensation as determined by human taste panel evaluation.

(r)                                    “Exercise Period” has the meaning set forth in Section
8(d)(ii).

(s)                                  “Feasibility Study” has the meaning set forth in Section
6(a).

(t)                                    “FEMA GRAS” means the process by which a compound is
determined to be Generally Recognized as Safe by the Flavor and Extract
Manufacturers Association expert panel.

(u)                                 “Field” means all
uses in foods and beverages by human or animals. For clarity, “Field” shall not include any
use as nutritional supplements, dietetics, nutraceuticals, prescription and
non-prescription medicines. Notwithstanding the foregoing, “Field” shall
include the healthy foods and beverages specified in Appendix J.

(v)                                 “FTE” means a full time equivalent person year consisting of
a total of 235 days or 1760 hours per year of research and development
activities.

(w)                               “FTE Rate” means *** per year per FTE, subject to adjustment
as follows: effective beginning with calendar year 2008, the foregoing amount
shall be increased on January 1 of each year by the percentage increase, if
any, in the Consumer Price Index, as published by the U.S. Department of Labor,
Bureau of Labor Statistics, since the last such increase (or in the case of the
first such increase, the Effective Date) and such increase shall be not exceed 3%
per year and shall be effective on a going-forward basis until further adjusted
under this definition.

(x)                                   “Incorporated Product” means a flavour or food ingredient
system containing a Licensed Compound.

(y)                                 “Invention” means any invention, including any new and
useful process, method, or composition of matter, or improvement thereto,
whether or not patentable.

(z)                                   “Know-How” means Materials, information and data, whether or
not patentable, which is not generally known to the public, including, without
limitation, compounds, substances, designs, concepts, assays, formulae,
software, techniques, practices, processes, methods, knowledge, skill,
experience, expertise, technical information, including pharmacological,
toxicological and clinical test data, analytical and quality control data,
patent and other legal data or marketing, sales and manufacturing data.

 3
 

(aa)                            “Licensed Compound” means a SCC that is licensed and
provided by Redpoint to Givaudan pursuant to Section 15 of this Agreement.

(bb)                          “Licensed Patent Rights” mean, with respect to a Licensed
Compound, all Patent Rights contained in the applicable Licensed Technology.

(cc)                            “Licensed Product” means a Simple Product or an Incorporated
Product.

(dd)                          “Licensed Technology” means, with respect to a Licensed
Compound, all Redpoint Technology owned or Controlled by Redpoint as of the
date of the license grant by Redpoint to Givaudan pursuant to Section 15, that
is necessary for making, having made, use, sale, and offer for sale of such
Licensed Compound.

(ee)                            “Major Market” means any of the following countries or
territories: (i) the United States, (ii) European Union, (iii) Japan, (iv)
China (v) Mexico, (vi) Brazil and (vii) Argentina.

(ff)                                “Marketing Reports” has the meaning set forth in Section
17(b).

(gg)                          “Materials” mean materials, substances, compounds, and
chemicals, including without limitation, Collaboration Compounds.

(hh)                          “Net Sales” means the gross amount received from Third
Parties by Givaudan, its Affiliates and permitted sublicensees for the sale of
the Simple Products or the Incorporated Products, or by Redpoint for the sale
of the products containing a Collaboration Compound, as the case may be, less
deductions for:

(i)                                     ***
discounts actually granted to the extent *** by the Parties to the applicable
products;

(ii)                                  ***
(including, without limitation, ***) actually allowed or given for ***;

(iii)                               *** and other ***
actually incurred in *** the applicable products to a ***, to the extent not
reimbursed by the ***;

(iv)                              ***
(including, without limitation, *** and ***), *** and *** for the applicable
products that are ***, to the extent that was actually allowed or given; and

(v)                                 ***
and other *** incurred in connection with the sale, *** of the applicable
products.

(ii)                                  “Party” or “Parties” has
the meaning as set forth in the Preamble.

 4
 

(jj)                                  “Patents” means all patents and patent applications and all
patent applications hereafter filed, including any continuation,
continuation-in-part, division, provisional or any substitute applications, any
patent issued with respect to any such patent applications, any reissue,
reexamination, renewal or extension (including any supplemental patent
certificate) of any such patent, and any confirmation patent or registration
patent or patent of addition based on any such patent, and all foreign
counterparts of any of the foregoing.

(kk)                            “Proof of Concept for A Bitter Blocker Compound” means, with
respect to a Bitter Blocker Compound, proof of concept
demonstrated in a human taste panel evaluation as set forth below:

(i)                                     The bitter blocker
is safe for conducting human tasting at ***; and

(ii)                                  Demonstration that
the effect is due to modulation of TRPM5, not an off-target effect; and

(iii)                               Demonstration in a human sensory evaluation
of a *** in the *** of a *** solution of *** with *** compound at ***.

(ll)                                  “Proof of Concept for An Enhancer Compound” means, with
respect to an Enhancer Compound, proof of concept demonstrated in a human taste panel evaluation as set forth
below:

(i)                                     The enhancer
compound is safe for conducting human testing at *** and

(ii)                                  Demonstration that
the effect is due to modulation of TRPM5, not an off-target effect; and

(iii)                               Demonstration in a human sensory evaluation
that the enhancer compound at a concentration of *** can increase the sweetness
of a *** solution by ***.

(mm)                      “Redpoint Technology” means the Know-How (including that
described or claimed in the Patent Rights) related to taste receptor technology
owned or Controlled by Redpoint, to the extent it is related to the Field.

(nn)                          “Regulatory Approval” has the meaning set forth in Section
5(c)(i).

(oo)                          “Research Plan” has the meaning set forth in Section 4(a).

(pp)                          “Reserved Enhancer Compound” has the meaning set forth in
Section 8(d)(ii).

(qq)                          “ROFR” has the meaning set forth in
Section 8(d)(iii).

 5
 

(rr)                                “SCC” or “Selected Collaboration
Compound,” means a Collaboration Compound that is selected by the
Steering Committee pursuant to Section 4(e) for development under the
Development Plan.

(ss)                            “Sensory Data” means the taste testing data that Givaudan
collected from trained consumers using its proprietary protocols in conducting
its Consumer Research.

(tt)                                “Simple Product” means a Licensed Compound which is sold on
a stand-alone or solvent diluted basis.

(uu)                          “Steering Committee” has the meaning set forth in Section
3(a).

(vv)                          “Term” has the meaning set forth in Section 16(a).

(ww)                      “Third Party” means any party other than Redpoint, Givaudan
and their respective Affiliates.

(xx)                              “Third Party Claim” has the meaning set forth in Section
9(c)(i).

(yy)                          “Third Party Infringement” has the meaning set forth in
Section 9(b)(i).

(zz)                              “TRPM5” means the Transient Receptor Potential Cation
Channel, Subfamily M, Member 5.

(aaa)                      “Valid Claim”
means a claim under an issued patent or a patent application, which has not (i)
expired or been canceled, (ii) been declared invalid by an irreversible and
unappealable decision of a court or other appropriate body of competent
jurisdiction, (iii) been admitted to be invalid or unenforceable through
reissue, disclaimer or otherwise, or (iv) been abandoned.

I.                                         RESEARCH
AND DEVELOPMENT COLLABORATION

2.                                                                                      Collaboration
and Collaboration Period

(a)                                  Collaboration.  During
a period of *** months starting from the Effective Date, as such period may be
extended pursuant to Section 2(b) hereof, (the “Collaboration
Period”), the parties shall collaborate to discover and develop
Collaboration Compounds, pursuant to the Research Plan and the Development Plan
(collectively, the “Collaboration”).

(b)                                 Givaudan’s Option to Extend Collaboration Period.  Givaudan shall have the option to extend the
Collaboration Period by continuing to fund the Collaboration at the full FTE
staffing level for the *** period pursuant to Section 10 for *** subsequent ***
periods, which option shall be exercised by giving Redpoint written notice ***
prior to the expiration of the Collaboration Period.

 6
 

3.                                      Steering
Committee

(a)                                  Formation and Composition of Steering Committee.  No later than ten (10) days after the
Effective Date, the parties shall establish a joint steering committee (the “Steering Committee”). 
Each Party is entitled to name two members to the Steering Committee and
shall appoint one of its members to act as a co-chairperson.  Each member of the Steering Committee shall
be an officer or employee of the relevant Party or its Affiliate and shall
possess sufficient experience and seniority to enable him or her to make a
meaningful contribution to the Steering Committee.  The initial members of the Steering Committee
and co-chairpersons are listed on Appendix A. 
The Steering Committee shall manage the Collaboration and carry out its
functions, which are set forth on Appendix B.

(b)                                 Operation.  Each Party
shall have one vote on the Steering Committee, which vote shall be cast by its
co-chairperson or another member designated by such co-chairperson.  Both Parties must vote in the affirmative to
allow the Steering Committee to take any action that requires the vote of the
Steering Committee.  Any disagreements
within the Steering Committee shall be resolved through good faith discussions
among the committee members.  Any
unresolved disputes shall be subject to the procedures outlined in Section 38,
or as otherwise mutually agreed upon by the Parties in writing.

(c)                                  Meetings.  The
Steering Committee shall first meet no later than thirty (30) days after the
Effective Date and thereafter shall meet every three (3) months, or as
frequently as the Parties may decide, at a mutually acceptable time and
location and using mutually acceptable formats including teleconferencing and
videoconferencing.  Each Party will bear
its own expenses relating to the meetings and activities of the Steering
Committee.  Each Party shall use
commercially reasonable efforts to cause its representatives to attend the
meetings of the Steering Committee.  If a
Party’s representative is unable to attend a meeting, such Party may designate
a substitute representative to attend such meeting.  In addition, each Party may, at its
reasonable discretion, invite additional employees, and, with the consent of
the other Party, consultants or scientific advisors to attend the meetings of
the Steering Committee as non-voting observers. 
Either Party may call a special meeting of the Steering Committee by
providing at least fifteen (15) days, written notice to the other Party
specifying the date, time, place and proposed agenda.

(d)                                 Minutes.  During the
Collaborative Period, the co-chairperson of Redpoint shall promptly prepare and
deliver to the members of the Steering Committee the minutes of meetings of the
Steering Committee for review and approval by both Parties and shall keep

 7
 

complete
and accurate records of the minutes of the meetings of the Steering Committee.

4.                                                                                      Research
Plan and Its Implementation

(a)                                  Initial Research Plan. 
The initial research plan is set forth in Appendix C and incorporated
into this Agreement by reference (as amended from time to time pursuant to this
Agreement, the “Research Plan”).

(b)                                 Modification of the Research Plan.  During the Term, either Party may propose
changes to the Research Plan in writing to the Steering Committee.  The proposed changes shall be reviewed and
discussed by the Steering Committee at the first quarterly meeting that is held
at least thirty (30) days after the submission of the proposed changes.  The Research Plan shall be modified to
incorporate the proposed changes, if and only to the extent that such proposed
changes have been unanimously adopted by the Steering Committee in
writing.  Notwithstanding the foregoing,
in the event a Party provides reasonable evidence to demonstrate that an
activity contemplated by the Research Plan is not commercially feasible or
practical, the Research Plan shall be modified accordingly.

(c)                                  Implementation of Research Plan by Redpoint.  Redpoint shall use its ***, using the
resources received under Sections 19 and 20, to carry out the responsibilities
and obligations assigned to it under the Research Plan.  Redpoint shall prepare and submit to the
Steering Committee with information on all Collaboration Compounds discovered
pursuant to the Research Plan, including information on ***, samples of
Collaboration Compounds adequate for full evaluation and *** estimates (“Data Package(s)”).

(d)                                 Implementation of Research Plan by Givaudan.  Givaudan shall use its *** to carry out the
responsibilities and obligations assigned to it under the Research Plan.

(e)                                  Selection of SCCs. 
Each time Redpoint submits a Data Package, the Steering Committee shall
review and evaluate whether a Collaboration Compound contained in such Data
Package shall be selected for development under the Development Plan.  Such determination shall be made with the
assistance of Redpoint under the criteria adopted by the Steering
Committee.  Such determination shall be
made within a mutually agreeable period from receiving such Data Package, not
to exceed *** days.

5.                                      Development
Plan and Its Implementation; Regulatory Matters

(a)                                  Initial Development Plan. 
The initial development plan is set forth in Appendix D and incorporated
into this Agreement by

 8
 

reference,
and within thirty (30) days of the selection of a SCC, shall be supplemented
for the development of such SCC (as amended from time to time pursuant to this
Agreement, the “Development Plan”).

(b)                                 Implementation of Development Plan.

(i)                                     The
implementation of the Development Plan shall (A) commence upon the Steering
Committee’s selection of an SCC to be developed under the Development Plan and
(B) subject to the Collaboration Period, and ***, or as determined by the
Steering Committee.

(ii)                                  Givaudan
shall use *** to carry out its responsibilities and obligations assigned to it
in the Development Plan in accordance with the Development Plan.

(c)                                  Regulatory Filing.

(i)                                     Pursuant
to the Development Plan, *** shall be responsible for making all regulatory
filings to obtain ***, approvals of the *** regulatory authorities or the ***
or other regulatory approvals for the use of the SCCs in the Field in the Major
Markets (the “Regulatory Approval”).

(ii)                                  The
regulatory filings shall be prepared and submitted through a CRO managed by
Redpoint.  The selection of such CRO
shall be subject to *** approval.  ***
shall have the right to review and comment on the protocols being used to
support the regulatory filings and *** shall use its reasonable efforts to take
*** comments into account.

(iii)                               Redpoint shall
exclusively own all regulatory filings made or filed by *** for all SCCs as
well as the resulting Regulatory Approvals, and such Regulatory Approvals shall
be subject to the license grants pursuant to Section 15(a).

(iv)                              To
the extent it is ***, *** shall use its *** to include regulatory filings for a
SCC that is a Bitter Blocker Compound for commercial use in the Field when
making regulatory filings for such Compound outside the Field; provided that
*** shall be responsible and *** for any *** by *** as a result of developing
and preparing such regulatory filings with broader field applications in
addition to the ***.  For clarity ***
shall be free to use any Regulatory Approvals and related data to support its
own program.

(v)                                 ***
may file regulatory approvals in other territories outside the Major Markets at
*** and ***.

(d)                                 Regulatory Cooperation.

 9
 

(i)                                     ***
shall use *** to provide *** with access to its regulatory expertise and assist
*** in the performance of the foregoing activities.  *** shall provide *** with copies of all
filings for obtaining Regulatory Approvals, data and determinations on the
SCCs.

(ii)                                  In
addition, each Party is obligated to:

a.                                       give
timely notice to the other Party for any adverse events and product recall
actions relating to any food or drink incorporating any SCCs; and

b.                                      report
such adverse events as required by law.

6.                                      Natural
Products Discovery Program

(a)                                  Feasibility Study.  As
a part of the Collaboration, Redpoint agrees to conduct a feasibility study to
evaluate the possibility for the discovery of *** Compounds and *** Compounds
that are natural products and that act primarily through the modulation of the
TRPM5 channel (the “Feasibility Study”).
The parties agree that if such feasibility study is conducted by using any
material that is ***, such material shall ***. The Steering Committee shall
determine activities to be conducted in the Feasibility Study, which may
include:

(i)                                     focused
screening of specifically isolated natural products as defined from
structure-activity relationships developed through chemical library screening;

(ii)                                  broad
screening of purified natural products libraries in cell-based TRPM5 assay; and

(iii)                               evaluation of food
process side streams as potential sources of lead compounds or precursors for
biosynthetic modification.

(b)                                 Potential Expansion of the Collaboration.  Depending on the outcome of the Feasibility
Study and upon the Parties’ mutual agreement, Givaudan and Redpoint will negotiate
in good faith to modify or broaden the scope of this Agreement by amending this
Agreement in writing to include research and development of Enhancer Compounds
and Bitter Blockers Compounds acting through the TRPM5 channel that are natural
products for use in the Field.  During
the Collaboration Period, Redpoint will not enter into any collaboration with
any Third Party to research and develop Enhancer Compounds and Bitter Blockers
Compounds acting through the TRPM5 channel that are natural products for use in
the Field.

 10
 

7.                                      Reports

Each Party shall, within
*** days of the end of each quarterly Steering Committee meeting, report to the
other a written summary of the results of the research and development work it
has carried out under this Agreement. 
Each Party agrees to prepare and exchange written and electronic reports
concerning any results and data required by either Party as supporting
information for any regulatory filings. 
The exchange of such report may be reasonably supplemented, at the
request of the Party receiving the report, by correspondence.

8.                                      Redpoint’s
Ownership and Givaudan’s Rights

(a)                                  Redpoint’s Ownership.  All
Materials (including all Collaboration Compounds), Know-How, Inventions, either
patentable or not patentable, all information of scientific or technical nature
(including the Data Packages), and all Regulatory Approvals, created, developed
or generated, obtained, or otherwise arising out of the Collaboration shall be
solely and exclusively owned by Redpoint.

(b)                                 Disclosure and Assignment. 
Givaudan agrees to promptly disclose or caused to be disclosed to
Redpoint all Inventions made by or on behalf of Givaudan or any Affiliates
during the course of the Collaboration. 
Givaudan agrees to assign and cause its employees and employees of its
Affiliates to assign to Redpoint all such Inventions made during the course of
the Collaboration and to execute, and cause to be executed, all documentation
necessary to perfect such assignments.

(c)                                  ***

(d)                                 Givaudan’s Rights.

(i)                                     During
the Collaboration Period, Redpoint may not grant any commercial license to any
Third Party under the applicable Licensed Technology with respect to any
Collaboration Compounds for use in the Field.

(ii)                                  Subject
to the rest of this Section 8(d), for *** after expiration (but not
termination) of the Collaboration (the “Exercise Period”),
Redpoint shall reserve up to *** (the “Maximum Number”)
Collaboration Compounds that are Enhancer Compounds (the “Reserved
Enhancer Compounds”) for Givaudan to obtain, upon granting of
Regulatory Approval in the first Major Market, exclusive licenses with respect
to such Reserved Enhancer Compounds *** for use in the Field; provided that in
the event that the Collaboration is early terminated, such Maximum Number shall
be ***  Within *** days after the
expiration or termination of the Collaboration, *** shall provide *** with a
list of the Reserved Enhancer

 11
 

Compounds.  Givaudan’s option with respect to the
Reserved Enhancer Compounds may be exercised at any time during the Exercise Period
by providing Redpoint with a written notice setting forth the identity of the
Reserved Enhancer Compound; provided that Givaudan shall reimburse Redpoint all
fees and costs incurred by Redpoint after the expiration or termination of the
Collaboration in researching and developing such Reserved Enhancer Compounds,
including fees and costs relating to obtaining Patent Rights and Regulatory
Approvals.

(iii)                               During the Exercise
Period, Givaudan shall have a right of first refusal to obtain a license with respect
to any Collaboration Compound other than the Reserved Enhancer Compounds for
use in the Field in a Major Market (the “ROFR”), which
Givaudan may exercise by giving written notice to Redpoint within *** days
after receiving a notice from Redpoint of its intent to license out such
Collaboration Compound for use in the Field. 
If Givaudan fails to provide a timely written notice, or notifies
Redpoint in writing that Givaudan does not desire to obtain a license such
Collaboration Compound, then Redpoint shall have the right to grant a license
with respect to such Collaboration Compound to a Third Party without any
further obligation.  If Givaudan timely
notifies Redpoint of its desire to obtain a license, then the Parties shall
negotiate in ***. If Givaudan exercises
its ROFR and Redpoint rejects Givaudan’s offer, Redpoint shall have a *** for the exploitation of such Collaboration
Compound. If the offer of a Third Party (A) ***.  For
clarity, Redpoint may withdraw its offer to license out such Collaboration
Compound to any party at any time, in which case, the ROFR with respect to such
Collaboration Compound shall remain available to Givaudan in the event Redpoint
decides to license out such Collaboration Compound again.

(iv)                              In
the event that the Collaboration is early terminated, (x) the Exercise Period
for exercising the ROFR pursuant to Section 8(d)(iii) shall be reduced to ***
years with respect to Collaboration Compounds that are Enhancer Compounds, and
the number of such Enhance Compounds shall be reduced to a number equal to the
product of (A) the total number of Collaboration Compounds that are Enhancer
Compounds (other than the Reserved Enhancer Compounds) *** and (B) *** divided
by *** and (y) the Exercise Period for *** pursuant to Section 8(d)(iii) shall
be reduced to *** and Redpoint shall
not be required to pay any royalty or sublicense fee under Section 24 with
respect to any Collaboration Compound that is a Bitter Blocker Compound;
provided further that Givaudan shall not have the ROFR to any Collaboration
Compound if the termination occurs prior to the *** Effective Date.

 12
 

(v)                                 For
clarity, Givaudan’s rights set forth in Sections 8(d)(ii) to 8(d)(iv) above are
limited to commercial licenses for use in the Field and shall not affect
Redpoint’s right to conduct any research for any purposes or grant any Third
Party any license for use outside the Field with respect to any Collaboration
Compound (including Licensed Compounds and Reserved Enhancer Compounds).

9.                                      Patents

(a)                                  Prosecution and Maintenance of Patent Rights.

(i)                                     Redpoint’s Rights. 
Redpoint shall be responsible for filing and prosecuting the patents and
patent applications in the Major Markets and any other countries upon Givaudan’s
written request for the Collaboration Compounds.  Givaudan shall reimburse Redpoint for all
costs associated with prosecuting and maintaining Patent Rights relating to the
Collaboration Compounds in the Major Markets and such other countries,
including all costs associated with prosecution of patent applications and all
maintenance fees and annuities for any patents issuing therefrom.  Redpoint will render, upon request, any
reasonable assistance required for the filing of such patent application. To
the extent the Reserved Enhancer Compounds and Licensed Compounds are used or
commercially exploited by Redpoint outside the Field, the costs associated with
prosecuting and maintaining the patents shall be ***.

(ii)                                  Givaudan’s Rights.  If
Redpoint opts against filing a patent application on a Collaboration Compound,
Givaudan ***.

(iii)                               Decision on
Patenting. The *** shall take all decisions relating to the
patenting of the Inventions.

(b)                                 Enforcement of Patent Rights.

(i)                                     Notification.  Each
Party shall provide the other with timely written notice of all known infringements
and other unauthorized uses by any Third Party of any Patent Right relating to
a Licensed Compound or Reserved Enhancer Compound for use in the Field in a
Major Market (the “Third Party Infringement”).

(ii)                                  Enforcement of Patent Rights with Respect to Licensed Compounds or
Reserved Enhancer Compounds. 
With respect to a Licensed Compound that is a Bitter Blocker Compound,
at its own *** expenses, *** may *** to enforce the Licensed Patent Rights
against any Third Party Infringement relating to such Licensed Compound at
Givaudan’s expenses pursuant to terms and conditions set forth herein; provided
Redpoint shall not be obligated to enforce such Licensed Patent Rights if such

 13
 

enforcement
could have an adverse impact on Redpoint. 
With respect to a Licensed Compound that is an Enhancer Compound or
Reserved Enhancer Compound, Redpoint shall have the first right, but not the
obligation to enforce the Licensed Patent Rights against any Third Party
Infringement at Givaudan’s expenses relating to such Licensed Compound or
Reserved Enhancer Compound pursuant to terms and conditions set forth
herein.  In the event Redpoint fails to
initiate its enforcement of the Licensed Patent Rights within *** days of its
receipt of the request from Givaudan, Givaudan may, at its own *** expenses,
enforce the Licensed Patent Rights against the Third Party Infringement
relating to such Licensed Compound or Reserved Enhancer Compound pursuant to
terms and conditions set forth herein. 
Any recovery obtained from the Third Party shall *** and *** in
***.  The remaining recovery, if any,
shall be granted to *** and included in the ***. In the event Givaudan has not
*** take action against any Third Party Infringement within *** after notice of
such Third Party Infringement, Redpoint may, but shall not be required to, take
such action as Redpoint may deem appropriate to prevent or enjoin the Third
Party Infringement.  In such event,
Redpoint shall act at its ***, and Givaudan shall reasonably cooperate with
Redpoint.  Any recovery obtained under
such action shall belong solely to Redpoint.

(c)                                  Defense Against Third Party Claims.

(i)                                     Notification.  If any
warning letter or other notice of infringement is received by a Party, or any
action, suit or proceeding is brought against a Party, alleging infringement of
a Patent Right of any Third Party in any aspect arising out of the manufacture,
sale or use of a Licensed Product in the Field in a Major Market (the “Third Party Claim”), such Party shall promptly notify the
other Party.

(ii)                                  Defense of Patent Rights with Respect to Licensed Compounds.  Each Party shall have full and
sole authority, information and assistance necessary to defend, hire counsel,
make decisions or settle on any terms, with respect to a Third Party Claim
against such Party and at such Party’s expense; provided that Givaudan shall
not settle any Third Party Claim without Redpoint’s prior written
approval.  Givaudan shall in good faith
execute all documents, provide pertinent records, and take all other actions,
including requiring persons within its control to give testimony, which may be
reasonably required in connection with Redpoint’s defense or settlement of such
Third Party Claim.

 14
 

10.                               Personnel

(a)                                  Research and Development of Enhancer Compounds.  Commencing from the Effective Date, Givaudan
shall fund Redpoint the following number of FTEs to support the research and
development of Enhancer Compounds during the Collaboration Period:

	
  *** FTEs

  	
   

  	
  First *** month period

  
	
   

  	
   

  	
   

  
	
  *** FTEs

  	
   

  	
  Second *** month period

  
	
   

  	
   

  	
   

  
	
  *** FTEs

  	
   

  	
  Third *** month period

  
	
   

  	
   

  	
   

  
	
  *** FTEs

  	
   

  	
  Last *** month period

  

 

(b)                                 Research and Development of Bitter Blocker Compounds.  Commencing from the Effective Date, Givaudan
shall fund Redpoint the following number of FTEs to support the research and
development of Bitter Blocker Compounds during the Collaboration Period:

	
  *** FTEs

  	
   

  	
  First *** month period

  
	
   

  	
   

  	
   

  
	
  *** FTEs

  	
   

  	
  Second *** month period

  
	
   

  	
   

  	
   

  
	
  *** FTEs

  	
   

  	
  Third *** month period

  
	
   

  	
   

  	
   

  
	
  *** FTE

  	
   

  	
  Last *** month period

  

 

The Parties anticipate
that Redpoint will provide dedicated scientific and technical staff in support
of the Collaboration.  Redpoint shall
also be able to use allocated FTE funds, *** to support outsourced contract
synthetic chemistry efforts at ***.

11.                               Delegation
to a Contract Research Organisation

Subject to Section 20,
Redpoint may delegate part of its research or regulatory obligations to a
Contract Research Organisation (hereafter “CRO”) of its
choice. Notwithstanding the foregoing, the regulatory CRO shall ***.

The tasks that may be
delegated to the CRO are described in Appendix E.

 Other than the CROs *** for conducting
regulatory obligations, the CROs will act on behalf of Redpoint which shall ***
correct performance of the research obligations under the Agreement.

Redpoint shall procure
that the CRO be bound by the same *** obligations as those under this
Agreement.

 15
 

12.                               Delegation
to Givaudan’s Affiliates

Givaudan shall be
entitled to delegate part or all of its obligations under the Research Plan or
the Development Plan to any of its Affiliates. 
It shall in any event remain fully liable to Redpoint for the proper
performance of the Agreement by any of its Affiliates.

13.                               Exclusive
Cooperation

During the Collaboration
Period, Redpoint shall research and develop Enhancer Compounds and Bitter
Blocker Compounds that act primarily through the modulation of TRPM5 receptor
for use in the Field exclusively with Givaudan and Givaudan shall not perform any
discovery work involving the TRPM5 receptor by itself or with any Third
Party.  For the sake of clarity, nothing
in this Agreement shall prevent Redpoint from conducting research or any other
activities with any Third Party outside the Field and nothing in this Agreement
shall prevent either Party from conducting research or any other activities in
the Field unrelated to the TRPM5 receptor. 
For further clarity, upon expiration or termination of the Collaboration
Period, Redpoint shall be free to pursue, with or without Third Parties, new
research to identify sweetness or savory enhancers and bitter blockers acting
at TRPM5 for use in any field in any product markets.

14.                               Termination
of the Collaboration

(a)                                  Termination of Collaboration by Givaudan.  Givaudan may terminate the Collaboration
prior to the end of the Collaboration Period by giving Redpoint *** days’ prior
written notice, if

(i)                                     the
Licensed Patent Rights to the extent they claim TRPM5 receptors are no longer
Valid Claims in the *** or in at least *** of the following countries: ***;

(ii)                                  the
Collaboration on Enhancer Compounds has not achieved Proof of Concept within
*** months following the Effective Date;

(iii)                               all of *** during the
Collaboration Period, unless Redpoint can demonstrate that it can *** with ***
of *** and *** to assure *** and program ***;

(iv)                              if
the path to Regulatory Approval deviates from the Development Plan and such
costs relating to the Regulatory Approvals in the *** (toxicological testing
procedures and filing fees) exceed *** dollars (US$***) per SCC; or

(v)                                 if
Redpoint is *** or *** Givaudan listed on Appendix F; provided that Givaudan
shall exercise such termination right by giving Redpoint written notice within
*** days after the date of Redpoint’s written notification of the consummation
of such ***.

 16
 

(b)                                 Effect of Termination of Collaboration by Givaudan.  Givaudan’s early termination of
the Collaboration shall be of no effect on the licenses already granted with
respect to any Licensed Compounds prior to such termination of the
Collaboration. These licenses shall remain in full force and effect and
Givaudan’s rights *** shall *** to the extent as set forth in Section 8(d)(ii)
and Givaudan’s *** shall also *** to the extent as set forth in Section
8(d)(iv).  In addition, if Givaudan
terminates the Collaboration as a result of Redpoint’s *** a *** or *** of
Givaudan pursuant to Section 14(a)(v), Givaudan shall have *** within *** years
*** of the Collaboration on *** as set forth herein with respect to all *** as
of the date of such termination, which *** has *** within *** days after
Redpoint *** that a Third Party is interested in obtaining a commercial license
with respect to such SCC; provided that Givaudan shall continue to reimburse
*** all fees and costs incurred by Redpoint *** after such termination in
obtaining Patent Rights and Regulatory Approvals with respect to such SCCs as
it would otherwise be required to do had the Collaboration not been early
terminated.

(c)                                  Termination of Collaboration As A Result of Breach.  A Party may the Collaboration if the other
Party materially breaches its obligations with respect to the Collaboration and
such breach is not cured or curable within *** days after it notifies the other
Party in writing about such breach.  The
failure of a Party’s *** obligations under the Collaboration shall be deemed a
material breach by such Party.

(d)                                 Termination as a Result of Bankruptcy Proceeding.  A Party may terminate the Collaboration by
providing written notice to the other Party upon (i) the filing of bankruptcy,
receivership or similar proceeding due to insolvency (voluntarily or
involuntarily) by the other Party or (ii) the dissolution, liquidation or other
discontinuation of all or a significant part of the other Party’s business operations
or the threat to cease to carry on all or a significant part of its business
operations.  Any termination pursuant to
this Section 14(d) shall be effective as of the date specified in the notice of
termination.

(e)                                  Notice.  All
communication relating thereto shall be made by registered post to the
addresses mentioned in the notice section.

II.                                     LICENSING

15.                               Grant
of License

(a)                                  Exclusive License Grant by Redpoint.  Upon the Regulatory Approval of an SCC in the
first Major Market, Redpoint shall grant Givaudan an exclusive, non-assignable
(except to its Affiliates) licence under the applicable Licensed Technology ***
and the Regulatory Approval in such Major Market to make, have

 17
 

made,
use, sell, have sold and generally commercially exploit such SCC in the Field,
with the limited right to sublicense in accordance with Section 15(c).

(b)                                 Givaudan
will use reasonable efforts to assist Redpoint in the manufacture of Licensed
Products containing Licensed Compounds which are Bitter Blockers Compounds for
use or commercial exploitation outside the Field, ***. In any event, such
assistance may only be granted against *** and subject to a separate agreement
to be negotiated in good faith.

(c)                                  Sublicense.  Givaudan
may not sublicense its rights granted by Redpoint under this Agreement to any
Third Party without Redpoint’s approval, which approval may not be unreasonably
withheld. The parties understand that Givaudan shall be free to sublicense any
of the rights granted under this Agreement to any of its Affiliates.  In each sublicense agreement with a permitted
sublicensee, Givaudan shall require the sublicensee to comply with the terms
and conditions of this Agreement. 
Givaudan’s execution of a sublicense agreement shall not relieve
Givaudan of any of its obligations under this Agreement.  Givaudan shall remain jointly and severally
liable to Redpoint for any performance or non-performance of a sublicensee of
Givaudan.

(d)                                 Redpoint’s Rights. 
Except for the rights expressly granted to Givaudan under this Agreement,
all right, title and interest in and to the Licensed Technology and Regulatory
Approvals shall at all times remain with and be vested in Redpoint.

(e)                                  Covenant Not to Sue. 
Each Party hereby covenants not to directly or indirectly initiate any
legal proceeding or bring any claim against the other Party claiming the other
Party’s infringement of any Know-How in manufacturing any product containing
any Licensed Compound.

16.                               Term
and Termination of the Licenses

(a)                                  Term.  Each license
shall be for the duration of the later of (i) twelve years as of the first
Commercial Sale of the applicable Licensed Compound, either as a *** or as an
*** as long as the Licensed Technology remain, confidential or (ii) the date of
the last to expire of the Valid Claim covering such Licensed Compound (the “Term”).

(b)                                 Early Termination.

(i)                                     Termination As A Result of Breach.  Either Party may terminate the licenses
granted hereunder on a *** if the other Party materially breaches its
obligations with respect to the applicable Licensed Compound, and such breach
is not cured or curable within *** days. 
The failure of a Party’s ***

 18
 

obligations
with respect to a license hereunder shall be deemed a material breach by such
Party with respect to such license.

(ii)                                  Termination as a Result of Bankruptcy Proceeding.  A Party may terminate the licenses granted
hereunder on a Licensed Compound-by-Licensed Compound basis by providing
written notice to the other Party upon (i) the filing of bankruptcy,
receivership or similar proceeding due to insolvency (voluntarily or
involuntarily) by the other Party or (ii) the dissolution, liquidation or other
discontinuation of all or a significant part of the other Party’s business
operations or the threat to cease to carry on all or a significant part of its
business operations.  Any termination
pursuant to this Section 16(b)(ii) shall be effective as of the date specified
in the notice of termination.

(iii)                               Termination
as A Result of Termination of Collaboration.  Early termination of the Collaboration by
Givaudan pursuant to Section 14(a) shall have the effect set forth in Section
14(b).

(c)                                  Termination for Convenience.   On a Licensed Compound-by-Licensed Compound
basis, *** may terminate this Agreement with respect to a Licensed Compound at
any time, without cause, with a notice of ***. 
For clarity, Givaudan may not terminate the Collaboration except as
provided in Section 14(a).

(d)                                 Effect of Termination in General.  Termination or expiration of the
Collaboration, or any of the licenses for any reason shall be without prejudice
to any rights that shall have accrued to the benefit of a Party prior to such
termination or expiration.  Upon
termination or expiration of the license with respect to a Licensed Compound,
all licenses with respect to the applicable Licensed Technology and Regulatory
Approvals granted under this Agreement with respect to such Licensed Compound
shall terminate; it being understood that the termination or expiration of the
license with respect one Licensed Compound shall not affect the rights and
obligations hereunder with respect to any other Licensed Compounds.

(e)                                  Effect of Termination As A Result of Material Breach (as per article
16b (ii)).

(i)                                     Where
Givaudan terminates any license with respect to a Licensed Compound that is an
Enhancer Compound as a result of Redpoint’s material breach pursuant to Section
16(b)(i), then Givaudan shall ***.

(ii)                                  Where
Givaudan terminates any license with respect to a Licensed Compound that is a
Bitter Blocker Compound as a result of Redpoint’s material breach pursuant to
Section 16(b)(i), then Redpoint shall ***.

 19
 

(f)                                    Effect of Termination As A Result of Bankruptcy (as per Section 16b
(ii)).  Where Givaudan
terminates any license with respect to a Licensed Compound pursuant to Section
16(b)(ii), then Givaudan shall ***.

(g)                                 Return of Confidential Information and Materials.  Within *** days of the effective
date of the expiration or termination of this Agreement in its entirety, each
Party shall cooperate with the other Party in transferring to such other Party
or destroying (as the other Party may elect), and causing its Affiliates and
sublicensees to transfer or destroy (as applicable), all Confidential
Information and Materials provided by the other Party.

(h)                                 Survival.  Without
limiting the foregoing, Sections *** shall survive the termination or
expiration of this Agreement for any reason.

17.                               Commercial
Exploitation

(a)                                  Commercialization Plan. 
With respect to each Licensed Compound, within *** days after the
Regulatory Approval for such Licensed Compound in the first Major Market,
Givaudan shall submit to Redpoint a proposed commercialization plan for all
Major Markets (the “Commercialization Plan”).  Givaudan shall use *** to pursue the
commercialization of such Licensed Compound (and any Licensed Products
resulting therefrom) in accordance with such Commercialization Plan.

(b)                                 Annual Marketing Reports. 
With respect to each Licensed Compound, after the Regulatory Approval
for such Licensed Compound in the first Major Market, Givaudan shall deliver to
Redpoint annual reports, which shall be due on the anniversary day of the
receipt of the Regulatory Approval and which shall provide Redpoint with a
reasonably detailed summary of its development, marketing and commercialization
activities conducted with respect to such Licensed Compound (including products
resulting therefrom) in the preceding year, including Givaudan’s progress
towards the achievement of milestone events set forth in Section 22, together
with updated sales forecast (the “Marketing Reports”).

(c)                                  Lack of Diligence. 
Redpoint may terminate the license(s) granted herein to Givaudan with
respect to a particular Licensed Compound in the relevant Major Market(s) ,
effective upon written notice to Givaudan, if:

(i)                                     Givaudan
failed to cause regulatory filing to be made in each Major Market other than
the first Major Market within *** months after obtaining the Regulatory
Approval in the first Major Market and/or failed to obtain Regulatory Approvals
in such Major Market within *** after obtaining the Regulatory

 20
 

Approval
in the first Major Market *** determines that it *** the Regulatory Approval
and recommends not to make regulatory filing in such Major Market;

(ii)                                  Givaudan
failed to provide to Redpoint Marketing Reports with respect to such Licensed
Compound in such Major Market(s) for ***; and

(iii)                               Givaudan failed to use
*** to carry out commercialization activities with respect to such Licensed
Compound in such Major Market(s) for *** years.

III.                                 REMUNERATION

18.                               Technology
Access Fee

In recognition of
Redpoint’s prior investment in the Field and its ownership of Licensed IP,
Givaudan shall make a one-time upfront payment by wire transfer to Redpoint of
*** within *** days from execution of the Agreement.

19.                               Personnel

Givaudan shall assume the
cost of the FTEs mentioned under Section 10 at the rate of *** per year per FTE
researcher, payable ***, by wire transfer to Redpoint before the first day of
each ***; provided the first payment in an amount prorated for the period
starting from the Effective Date to the last day of the first *** shall be made
on the Effective Date and that Redpoint shall invoice Givaudan each payment due
under this Section 19.

20.                               Contract
Research Organisation (CRO) Costs

Givaudan shall assume:

·                                          the
reasonable CRO costs associated with the research and development of ***
Compounds (e.g. toxicology, pharmacological screening, safety testing, etc.)
plus an overhead rate of ***.

·                                          the
reasonable Field—specific CRO costs associated with the research and
development of *** Compounds (e.g. Field—specific taste testing) plus an
overhead rate of ***.

CRO costs *** of the
***.  Givaudan shall pay Redpoint the CRO
costs by wire transfer within thirty (30) days after the date of Redpoint’s
invoice.

21.                               Reimbursement
of Regulatory Costs

Givaudan shall reimburse
Redpoint for all costs incurred by Redpoint in connection with obtaining
Regulatory Approvals for use in the Field in the Major Markets as concerns the
SCCs which are *** Compounds.  Givaudan
shall make the reimburse payment by wire transfer within *** days after the
receipt of Redpoint’s invoice.  If the
path to regulatory approval deviates from the Development Plan and ***
regulatory approvals (toxicological testing

 21
 

procedures and filing
fees) *** per SCC, Givaudan *** Parties agree on ***. Redpoint shall assume ***
costs incurred in connection with *** concerning *** Compounds.

22.                               Milestone
payments

Givaudan shall make the
following non-creditable, non-refundable milestone payments by wire transfer to
Redpoint within *** days of the occurrence of the following milestone events,
as determined by the *** (8 milestones):

(a)                                  Proof of Concept Milestone Givaudan shall pay to Redpoint
the amount of

·                                          ***
for the first Licensed Compound that is an ***; and

·                                          ***
for the first Licensed Compound that is a *** Compound

within *** from the
occurrence of the following ***, events relating to the applicable Licensed
Compound:

·                                          Achievement
of Proof of Concept for An *** Compound or Proof of Concept for A *** Compound,
respectively;

·                                          ***

·                                          ***

(b)                                 Regulatory Approval Milestone.

(i)                                     Givaudan
shall pay to Redpoint the amount of

·                  *** for the
first Licensed Compound that is an *** Compound; and

·                  *** for the
first Licensed Compound that is a *** Compound

within *** from the
applicable Licensed Compound obtaining a ***.

(ii)                                  Givaudan
shall pay to Redpoint the amount of

·                  *** for the
first Licensed Compound that is an *** Compound; and

·                  *** for the
first Licensed Compound that is a *** Compound

within *** from the
applicable Licensed Compound obtaining Regulatory Approval by the first of the
*** or the *** or any other regulatory authority in a Major Market ***.

(c)                                  First Commercial Batch of Licensed Product Milestone

Upon first production in
commercial quantities of a Licensed Compound (either as a Simple Product or an
Incorporated Product) that is an ***, Givaudan shall pay to Redpoint the amount
of ***.

 22

Upon first production in
commercial quantities of a Licensed Compound (either as a Simple Product or an
Incorporated Product) that is a *** Compound Givaudan shall pay to Redpoint the
amount of ***.

For the avoidance of
doubt, production trials shall not be deemed to be made in commercial
quantities for the purpose of this provision.

23.          Royalties Payable to Redpoint

(a)                                  Running Royalties. 
Givaudan shall pay to Redpoint royalties based on the total combined Net
Sales of the Simple Product(s) (on a stand-alone or solvent diluted basis),
and/or on the total combined Net Sales of the Incorporated Product(s) (as the
flavour or food ingredient system(s) containing the Licensed Compound(s)), sold
by Givaudan and its Affiliates to Third Parties. The royalty rates (the “Running
Royalties”) shall be as follows:

(i)                                     Total
combined Net Sales of the Simple Product(s) sold on a stand alone or solvent
diluted basis: ***

(ii)                                  Total
combined Net Sales of the Incorporated Products sold as flavour compositions or
food ingredient systems:

·                  Under ***
dollars (US$***) in sales — ***

·                  *** dollars
(US$***) to *** million dollars (US$***) in sales (i.e. next *** dollars
(US$***) of sales) — ***

·                  *** dollars
(US$***) to *** dollars (US$***) in sales (i.e. next *** dollars (US$***)) —
***

·                  *** dollars
(US$***) and above: ***

See Appendix G for
examples of the foregoing royalties calculation.

(b)                                 Minimum Royalties.  Givaudan
shall pay to Redpoint a minimum annual total combined royalty of *** (the “Minimum Royalty”), which shall be paid within *** from the
*** of the date when the first Regulatory Approval in a Major Market was
obtained.  It shall run for *** years and
*** by Givaudan during the applicable year. 
The Minimum Royalty *** of termination of the Agreement in the course of
the applicable year.

(c)                                  Sublicense Fees.  With
respect to a Licensed Compound, Givaudan shall pay to Redpoint *** of the
amount equal to the aggregate amount of all upfront or, milestones payments,
and all payments and considerations in any other forms (in addition to royalty
payments based on Net Sales of the Licensed Compound), received by Givaudan
from its Third Parties sublicensees for the Simple Product or the Incorporated
Product incorporating such

 23
 

Licensed
Compound for use in the Field; provided in the event such sublicense grants an
*** right to a Givaudan customer, the percentage shall be increased from ***.

(d)                                 Payment.  The
foregoing royalties and sublicense fees shall be paid by Givaudan to Redpoint
by wire transfer within *** from the end of the *** to which they relate.

24.          Royalties Payable to Givaudan

(a)                                  Royalties on *** Compounds.  With respect to a Licensed Compound that is a
*** Compound, Redpoint shall pay to Givaudan a *** royalty on Redpoint’s total
combined Net Sales of the products containing such Licensed Compound outside
the Field.  The aggregate amount of such
royalty shall not exceed a total amount ***.

(b)                                 Sublicense Fees on *** Compounds.  With respect to a Licensed Compound that is a
*** Compound, Redpoint shall pay to Givaudan *** of the amount equal to the
aggregate amount of all upfront payments, milestone payments and royalties
received by Redpoint from its sublicensees for the products containing such
Licensed Compound for use outside the Field; provided that the aggregate amount
of such royalty shall not exceed ***.

(c)                                  Sublicense Fees on *** Compounds.  With respect to a Licensed Compound that is
an *** Compound, Redpoint shall pay to Givaudan *** of the amount equal to the
aggregate amount of all upfront payments, milestone payments and royalties
received by Redpoint from its sublicensees for the products containing such
Licensed Compound for use outside the Field.

(d)                                 Payment.  The
foregoing royalties and sublicense fees shall be paid by Redpoint to Givaudan
by wire transfer within *** days from the end of the *** to which they relate.

25.          Audit

Each Party shall maintain
and shall cause its Affiliates and sublicensees to maintain accurate books and
records, which enable the calculation of milestone payments and royalties
payable hereunder to be verified.  Each
Party shall retain and shall cause its Affiliates and sublicensees to retain
the books and records for each quarterly period for *** or such longer period
as required by law after the year to which they relate.

Once per contract year,
either Party shall have the right to have an auditing company of international
reputation which the Parties may agree upon (the “Auditor”)
auditing the other Party’s books of account or those of its relevant
Affiliates, to the extent necessary to determine whether the other Party and
its relevant Affiliates’ have paid royalties in compliance with the express
terms of this Agreement.  Upon completion
of the audit, the Auditor shall report only

 24
 

whether the audited Party
is in compliance with this Agreement or, if not, the amount of any overdue
payment.  Redpoint and Givaudan agree to
accept the determination of the Auditor as binding and final, and if the audit
reveals that the audited Party owes money to the other, then the audited Party
shall promptly pay such sum to the other. 
The cost of any such audit shall be borne by the Party requesting the
audit, unless the audit reveals that the audited Party’s aggregate missing
payments exceeds *** of the total amount due, in which case the audited Party
shall bear the cost of the audit.

IV.           MISCELLANEOUS

26.          Confidentiality.

(a)                                  Confidential Information.  Each
Party acknowledges that in the course of this Agreement it may have access to
Confidential Information relating to the other Party. Subject to Section 8(c),
all results and data (including the Materials and Data Packages) generated from
the research and development under the Collaboration shall be considered
Confidential Information of Redpoint and subject to the confidentiality
requirements of this Section 26 and that the results of Consumer Research, the
Commercialization Plan and the Marketing Reports shall be considered
Confidential Information of Givaudan. 
The content of this Agreement, the Research Plan and the Development
Plan shall be considered Confidential Information of both Parties.  Notwithstanding the foregoing, Confidential
Information shall not include information or materials received by the
receiving Party if such information or materials:

·                  was in the
public domain prior to the date of this Agreement or subsequently came into the
public domain through no fault of the receiving Party; or

·                  was lawfully
received by the receiving Party from a Third Party which is not under a duty of
confidentiality to the other Party; or

·                  was already in
the possession of the receiving Party prior to the receipt thereof, directly or
indirectly, from the other Party as demonstrated by contemporaneous evidence.

(b)                                 Confidentiality and Non-Use.  The
Parties undertake:

·                  not to disclose
any Confidential Information to any Third Party without the prior written
consent of the other Party; and

·                  not to use any
Confidential Information for any other purposes than the performance of this
Agreement.

The Parties guarantee
that the Confidential Information will be disclosed only to those of their
employees who need to know it and

 25
 

agree to be bound by the
terms and conditions of this Agreement, irrespective of whether they leave
their service.

Affiliates of Givaudan
are not regarded as Third Parties, and may be given access to Confidential
Information received from Redpoint on a need-to-know basis, provided these
companies have accepted to be bound by the terms of this provision.

Notwithstanding the
foregoing, each Party shall use reasonable efforts to avoid disclosure of
Confidential Information to any of its directors who represent a competitor or
customer of the other Party.

(c)                                  Required Disclosure.  If
the receiving Party becomes legally required to disclose Confidential
Information, or any part thereof, then the receiving Party will give the other
party prompt advance notice of such requirement.  The Party required to disclose such
information must give written notice of such disclosure to the other Party
sufficient in advance to allow the other Party to seek confidential treatment
and protection and must cooperate with the other Party’s efforts to seek, at
the request and expense of the other Party, all confidential treatment and
protection for such disclosure as is permitted by applicable law.  If the other Party waives compliance with any
of the terms of this Agreement or does not seek or is unable to obtain a
protective order or other appropriate remedy with respect to such disclosure of
Confidential Information, then the receiving Party agrees to disclose only that
portion of the Confidential Information necessary to ensure compliance with
such legal requirement.

(d)                                 Permitted Use and Disclosures.  Each Party may use or disclose Confidential
Information disclosed to it by the other Party to the extent such use or
disclosure is reasonably necessary and permitted in the exercise of the rights
granted hereunder in:

·                  filing or
prosecuting patent applications;

·                  conducting
clinical trials; or

·                  submitting
information for food additive approval applications;

provided that the
disclosing Party shall give reasonable advance written notice of such
disclosure to the other Party where reasonably possible and, save to the extent
inappropriate in the case of patent applications, shall use its reasonable
efforts to secure confidential treatment of such Confidential Information in
consultation with the other Party prior to such disclosure (whether through
protective orders or otherwise) and disclose only the minimum necessary to
comply with such requirements.

Notwithstanding the
foregoing, either Party may disclose the material terms of this Agreement under
an obligation of confidentiality at least

 26
 

as stringent as the
confidentiality obligations hereunder to any potential sublicensee, potential
acquirer, merger partner, bank, venture capital firm, or other financial
institution to obtain financing.

(e)                                  Public Disclosure. 
Except as otherwise required by law, rule or regulation (and then only
to the extent required thereunder), neither Party shall issue a press release
or make any other public disclosure of the terms of this Agreement without the
prior approval of the other Party, which approval shall not be unreasonably
withheld.  Each Party shall submit any
such press release to the other Party prior to release, and the receiving Party
shall have *** days to review and decide whether to approve any such press
release, which approval shall not be unreasonably withheld.  The Parties hereby agree to issue their
respective press releases with respect to the execution of this Agreement,
substantially in the form attached hereto as Appendixes H1 and H2.

(f)                                    Publication of Results.  Subject to the express provisions
of this Agreement, results and data obtained by either Party in the course of
the Collaboration may be submitted for publication by Redpoint in accordance
with Redpoint’s customary practices. 
Redpoint shall send a copy of the proposed publication to Givaudan and
shall allow Givaudan *** days from the date of receipt for review, comment and
reasonable approval.

(g)                                 Equitable Relief. 
Each Party acknowledges and agrees that any breach of the
confidentiality and non-use provisions may cause irreparable harm to the other
Party for which damages may not be an adequate remedy, and, accordingly, the
other Party shall be entitled to seek equitable relief in addition to all other
remedies available at law.

(h)                                 Term of Confidentiality and Non-Use.  The obligations of confidentiality and
non-use under this provision shall be valid for the duration of this Agreement
and for *** after its expiry, except with respect to the Confidential
Information constituting trade secrets of a Party, in which case the
obligations shall remain until such Confidential Information ceases to be trade
secrets.

27.          Warranties, Liabilities and Indemnifications

Any Material exchanged
between the Parties under this Agreement is understood to be experimental in
nature.  Except as otherwise provided for
below, neither Party makes representations and extends warranties of any kind,
expressed or implied, as to merchantability of any Know-How or its fitness for
a particular purpose.

Each Party shall use the
Know-How at its own risk and warrants that it has full right and authority to
enter into this Agreement and that to the best of its knowledge on the
Effective Date its execution does not and will not cause it to

 27
 

be in breach of any
obligation towards Third Parties under any agreement existing as of the
Effective Date.

Redpoint warrants that

·              it will use its commercially reasonable
efforts to ensure that the Licensed Compounds provided to Givaudan shall be
free of any liens, and

·              to the best of its knowledge the use of
the material technology applied by it for the purpose of this Agreement will
not infringe the rights of any third parties, nor necessitate their approval.

·              to the best of its knowledge Redpoint has
or will have the right to grant the applicable Licensed Technology and
Regulatory Approvals to Givaudan pursuant to this Agreement.

The Parties agree
to be bound by the indemnification provisions set forth on Appendix I hereto.

28.          Change in Circumstances

The failure of either
Party to timely perform any obligation under this Agreement by reason of
epidemic, earthquake, riot, civil commotion, fire, act of God, war, terrorist
act, strike, flood, or governmental act or restriction, or other cause that is
beyond the reasonable control of such Party shall not be deemed to be a
material breach of this Agreement, but shall be excused to the extent and for
the duration of such cause, and the affected Party shall provide the other
Party with full particulars thereof as soon as it becomes aware of the same
(including its best estimate of the likely extent and duration of the
interference with its activities) and shall use commercially reasonable efforts
to avoid or remove such cause, and shall perform its obligation(s) with the
utmost dispatch when the cause is removed.

29.          Use of Name or Trademarks

Neither Party shall use
another Party’s name or trademarks or its Affiliates’ names or trademarks for
publicity or advertising purposes, without the written consent of the other
Party.

30.          Assignment

This Agreement shall
inure to the benefit of and be binding on the Parties, their successors and
legitimate assigns.

The Parties shall not
assign this Agreement or rights hereunder to any Third Party (understanding
that Givaudan’s Affiliates are not considered to be Third Parties) without the
other Party’s prior written consent, except to a company or other business
entity which by merger, purchase, or otherwise acquires all or substantially
all of the assets or business of the applicable Party, or with which such Party
may be consolidated or merged, provided that such company or business entity or
new formed entity confirms by written statement that it

 28
 

assumes all obligations
under this Agreement.  Any assignment
which conflicts with this paragraph shall be null and void and deemed to be a
material breach of this Agreement.

31.          Independent Contractor Status

The Parties acknowledge
and agree that they are independent contractors of each other, and shall not,
either itself or any of its personal, for any purposes be considered to be an
employee of the other Party.  This
Agreement is not a partnership agreement and nothing in this Agreement shall be
construed to establish a relationship of co-partners or joint venturers between
the Parties.

32.          Severability

The invalidity or
unenforceability of any provision of the Agreement shall not affect the
validity or enforceability of any other provision hereof.  The invalid or unenforceable provision shall
be deemed to be replaced by a provision which accomplishes, as close as legally
possible, the purpose of the invalid or unenforceable provision.

33.          Waivers

The failure of either
Party at any time to enforce any provision of this Agreement shall not be
construed as a waiver of future compliance therewith, and said provision shall
remain in full force and effect.  No
waiver of any term or condition of this Agreement, on the part of a Party,
shall be effective unless such waiver is in writing and signed by the other
Party.

34.          Further Assurances

From time to time the
Parties shall execute, acknowledge and deliver to each other any further
documents, assurances and other matters, and shall take any other action
consistent with the terms of this Agreement, that may reasonably be requested
by a Party and necessary or desirable to carry out the purposes of this
Agreement.  The Parties shall cooperate
and use all reasonable efforts to make all other registrations, filings and
applications, to give all notices and to obtain as soon as practicable all
governmental or other consents, approvals, orders, qualifications,
authorizations, permits and waivers, if any, and to do all other things
necessary or desirable for carrying out the proposes of this Agreement.

35.          Advice of Counsel

Givaudan and Redpoint
have each consulted counsel of their choice regarding this Agreement and each
acknowledges and agrees that this Agreement shall not be deemed to have been
drafted by one Party or another and shall be construed accordingly.

36.          Entire Agreement

This Agreement, together
with exhibits hereto, constitutes the entire agreement between Givaudan and
Redpoint with respect to its subject matter,

 29
 

and all prior and other
agreements among them, oral or written, concerning the same subject matter are
merged into this Agreement.  This
Agreement may not be modified except by a writing signed by the Parties hereto.

37.          Governing Law and Jurisdiction

This Agreement and future
amendments hereto shall be governed by, and construed in accordance with, the
laws of the ***.  Any dispute arising out
of, or in connection with, this Agreement that is initiated by Givaudan shall
be submitted to a competent court located in the *** and any dispute arising
out of, or in connection with, this Agreement that is initiated by Redpoint
shall be submitted to a competent court located in ***.

38.          Dispute Resolution

Any dispute that may
arise relating to the terms of this Agreement or the activities of the Parties
shall be referred to the Steering Committee, who shall attempt in good faith to
achieve a resolution.  If the Steering
Committee is unable to resolve such a dispute within sixty (60) days of the
first presentation of such dispute to the Steering Committee, such dispute
shall be referred to the Chief Executive Officers of Givaudan and Redpoint (or
their respective designee who has the authority to make decisions on behalf of
such Party) who shall use good faith efforts to mutually agree upon the proper
course of action to resolve the dispute. 
If any dispute is not resolved by these individuals (or their designees)
within thirty (30) days after such dispute is referred to them, or such longer
period as they may mutually agree, then either Party shall have the right to
litigate such dispute or to pursue such other dispute resolution mechanism as
the Parties may agree.

39.          Notices

Any notice to be given to
either Party hereto shall be in writing and shall be effective upon receipt or
upon mailing by certified or registered mail, postage prepaid, and addressed as
follows:

If to Givaudan:

Givaudan Suisse SA

5, chemin de la
Parfumerie

1214 Vernier Switzerland

Attention: Legal Affairs

Any party may change the
address designated by notifying the other parties in the manner provided above.

With a copy to:

Givaudan Flavors
Corporation

1199 Edison Drive

Cincinnati Ohio 45216

U.S.A.

 30
 

Attention: Robert Eilerman

If to Redpoint:

Redpoint Bio Corporation

2005 Eastpark Boulevard

Cranbury New Jersey
08512-3515

U.S.A.

Attention: Scott M. Horvitz

With a copy to:

Morgan Lewis &
Bockius

1701 Market Street

Philadelphia Pennsylvania
19103

U.S.A.

Attention: Andrew Gilbert, Esq.

40.          Headings

The headings contained in
this Agreement are inserted for convenience of reference only and shall not be
a part of, control or affect the meaning hereof.

41.          Counterparts

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

 31
 

42.          Term and termination of the Agreement

This
Agreement shall begin on the Effective Date. The parties may terminate the
entirety of this Agreement at any time by mutual consent.

The
Parties may also terminate the Collaboration and/ each license individually in
accordance with Sections 14 and 16 of this Agreement.

In
addition, Redpoint may terminate this Agreement, including the licenses granted
hereunder if Givaudan has failed to pay the Minimum Royalty under Section 23b
of this Agreement and has not corrected such default within 30 days after
written notice thereof by Redpoint.

 32
 

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

	
  GIVAUDAN SCHWEIZ AG

  	
   

  	
  REDPOINT BIO CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ BOB PELLEGRINO

  	
   

  	
   

  	
  By:

  	
  /s/ F. RAYMOND
  SALEMME

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ MAURICIO GRABER

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ GILLES ANDRIER

  	
   

  	
   

  	
   

  
									

 33
 

Appendix
A

List of
Initial Members and Co-Chairpersons of Steering Committee

On Behalf
of Redpoint

Co- Chairperson: ***

Initial Members:

On Behalf
of Givaudan

Co-Chairperson: ***

Initial Members:

 34
 

Appendix
B

Functions
of Steering Committee

The
Steering Committee shall manage the Collaboration and carry out the following
functions:

(i)                                     explore
and evaluate the activities and progress of the Collaboration and provide
strategic direction and performance criteria for the Collaboration;

(ii)                                  facilitate
the cooperation of the Parties under the Collaboration;

(iii)                               review and amend, if
necessary, the Research Plan and the Development Plan;

(iv)                              establish
the criteria and protocol for selecting the SCCs;

(v)                                 review
and evaluate the Data Packages and select the Reserved Enhancer Compounds and
SCCs for development;

(vi)                              allocate
resources and approve any annual CRO budget exceeding ***;

(vii)                           review program progress
against milestones and determine when milestones have been achieved;

(viii)                        review progress of patent
filings;

(ix)                                review
regulatory filings and strategies, propose amendments to program strategy and
make changes as necessary;

(x)                                   determine
the activities to be conducted in the Feasibility Study;

(xi)                                approve
the selection of the CRO that will be contracted to prepare and submit
regulatory filings;

(xii)                             determination of patenting
prosecution strategy; and

(xiii)                          development of a safety
protocol for tasting ensuring safe practice for each Party.

 35
 

Appendix C:

***

 36
 

Appendix C1.

***

 37
 

Appendix C2

***

 38
 

Appendix D

***

 39
 

Appendix
E

List of
Functions that may be delegated to CROs

Functions where
tasks may be delegated to CROs may include the following:

Discovery:

·                  ***

·                  ***

·                  ***

·                  ***

·                  ***

Development

·                  ***

·                  ***

·                  ***

·                  ***

 40
 

Appendix
F

List of
Givaudan Competitors and Customers

Competitors

***

Customers

***

 41
 

Appendix
G

***

 42
 

 

	
  Givaudan Press Release Draft

  	
   

  	
  Appendix H1

  

***

 43
 

 

	
  Redpoint Bio Press Release Draft

  	
   

  	
  Appendix H2

  

 

***

 44
 

Appendix
I

Indemnification
Provisions

1.1           Redpoint
Indemnification. Redpoint hereby agrees to defend and indemnify
Givaudan, and its officers, directors, employees, agents and Affiliates
(collectively, the “Givaudan Indemnitees”)
from and against all Losses, liabilities, obligations, damages or other amounts
payable to a Third Party, including reasonable attorney’s fees and costs of
litigation (the “Loses”) resulting from a claim, demand, action, suit or other
proceeding brought or threatened by a Third Party against a Givaudan Indemnitee
based on any development, of a SCC or a Licensed Compound by Redpoint; a
product liability claim on any Redpoint product incorporating any Licensed
Compound relating to its use outside the Field, except to the extent such
Losses are attributable to any negligence or willful misconduct of a Givaudan
Indemnitee.

1.2           Givaudan
Indemnification.  Givaudan
hereby agrees to defend and indemnify Redpoint, and its officers, directors,
employees, agents and Affiliates (collectively, the “Redpoint
Indemnitees”) from and against all Losses, resulting from a claim,
demand, action, suit or other proceeding brought or threatened by a Third Party
against a Redpoint Indemnitee based on any development, manufacture, use,
handling, storage, sale, or other disposition of a SCC or a Licensed Compound
by or through Givaudan or its Affiliates or its permitted sublicensees; a
product liability claim on any product incorporating any Licensed Compound
relating to its use in the Field; or the practice by Givaudan of any license
granted hereunder, except to the extent such Losses are attributable to any
negligence or willful misconduct of a Redpoint Indemnitee.

1.3           LIABILITY
LIMITATION.  IN NO EVENT SHALL
EITHER PARTY BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY THE
OTHER PARTY RESULTING FROM THIS AGREEMENT.

1.4           Procedure
for Indemnification.  Each
Party seeking to be reimbursed, indemnified, defended, and held harmless under
Section 1.1 or 1.2 of this Appendix I (each, an “Indemnitee”)
shall (i) provide the Party obligated to indemnify such Indemnitee (the “Indemnitor”) with prompt, written notice of any claim, suit,
demand, or other action for which such Indemnitee seeks to be reimbursed,
indemnified, defended, and held harmless (each, a “Claim”),
which notice shall include a reasonable identification of the alleged facts
giving rise to such Claim; (ii) grant such Party reasonable authority and
control over the defense and settlement of any such Claim; and (iii) reasonably
cooperate with such Party and its agents in defense of any such Claim, at the
Indemnitor’s expense.  Each Indemnitee
shall have the right to participate in the defense of any Claim for which
Indemnitee seeks to be reimbursed, indemnified, defended, or held harmless, by
using attorneys of such Indemnitee’s choice, at such Indemnitee’s expense.  Any settlement of a Claim for which any
Indemnitee seeks to be reimbursed, indemnified, defended, or held harmless
under this Appendix I shall be subject to the prior written approval of such
Indemnitee, which approval shall not be unreasonably withheld, conditioned, or
delayed.

 45
 

Appendix
J

***

 46

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