Document:

Exclusive License Agreement dated 8/1/2002

 EXHIBIT 10.32 
  
 Exclusive License Agreement 
  
 Between 
  
 Thomas Jefferson University 
  
 And 
  
 Neurologix, Inc.

  
 Effective as of August 1, 2002 
  

	Re:	DUR01-DSC05, entitled “INSULIN AND INSULIN-ASSOCIATED PEPTIDES FOR CEREBRAL HEALTH” and OTT-3381, entitled “INSULIN AS A COGNITIVE ENHANCER”

  
 In consideration of the mutual promises and covenants set forth
below, the parties hereto agree as follows: 
  
 ARTICLE I

 DEFINITIONS 
  
 As used in this Agreement, the following terms shall have the following meanings: 
  

	1.1	ACADEMIC RESEARCH PURPOSES: use of PATENT RIGHTS for academic research or other not-for-profit scholarly purposes which are undertaken at a non-profit or governmental institution
that does not use the PATENT RIGHTS in the production or manufacture of products for sale or the performance of services for a fee. 

  

	1.2	AFFILIATE: any entity which controls, is controlled by, or is under common control with a party by ownership or control of at least fifty percent (50%) of the voting stock or other
means by which control over management of an entity can be made. Unless otherwise specified, the term LICENSEE includes AFFILIATES. 

  

	1.3	FIELD: any and all fields of use. 

  

	1.4	TJU: Thomas Jefferson University, a nonprofit Pennsylvania educational corporation having offices at 1020 Locust Street, M60, Philadelphia, PA 19107. 

  

	1.5	LICENSED PROCESSES: the methods and processes covered by at least one VALID PATENT CLAIM under the PATENT RIGHTS, or some portion thereof. 

  

	1.6	LICENSED PRODUCTS: products covered by at least one VALID PATENT CLAIM under the PATENT RIGHTS, or products made or services provided in accordance with or by means of LICENSED
PROCESSES. 

  

	1.7.1	LICENSEE: Neurologix, Inc., a corporation organized under the laws of the State of Delaware, having its principal offices at 271-32E Grand Central Parkway, Floral Park, NY 11005.

  

	1.8	RELATED TECHNOLOGY: any invention not otherwise falling within the PATENT RIGHTS, for which a patent application has not been filed as of the date of this Agreement, that results
from research conducted at TJU under the direction of Dr. Matthew During listed in Appendix A, and is based upon and builds on an invention described in an application or patent listed in Appendix A, and that is dominated (as hereafter defined) by
PATENT RIGHTS of an application or patent listed in Appendix A. 

  
 The term DOMINATED defines a relationship between a subsequently filed patent application or patent and a previously filed patent application or patent, wherein the claim or claims of the prior patent application or
patent encompass the subject matter of at least one claim in the subsequent patent application or patent such that the practice of the subsequent patent application or patent (i.e., the dominated patent) necessarily infringes one or more claims of
the prior patent application or patent (i.e., the dominating patent).” 
  

	1.9	NET RESEARCH AND DEVELOPMENT INCOME: RESEARCH AND DEVELOPMENT INCOME less LICENSEE’s actual direct and indirect costs for research, development and/or research development
services provided pursuant to contract with a third party. 

  

	1.10	NET SALES: the amount invoiced and received for sales, leases, or other transfers of LICENSED PRODUCTS, less: 

  

	 	(a)	customary trade, quantity or cash discounts and non-affiliated brokers’ or agents’ commissions actually allowed and taken; 

  

	 	(b)	amounts repaid or credited by reason of rejection or return; 

  

	 	(c)	to the extent separately stated on purchase orders, invoices, or other documents of sale, taxes levied on and/or other governmental charges made as to production, sale,
transportation, delivery or use and paid by or on behalf of LICENSEE or sublicensees; and 

  

	 	(d)	reasonable charges for delivery or transportation provided by third parties, if separately stated. 

  
 NET SALES also includes the fair market value of any non-cash consideration received by LICENSEE or sublicensees for the
sale, lease, or transfer of LICENSED PRODUCTS. 
  

	1.11	RESEARCH AND DEVELOPMENT INCOME: the total financial consideration received as a result of the utilization of LICENSED PRODUCTS or LICENSED PROCESSES by LICENSEE in connection with
a contract with a third party for research and/or development services relating to LICENSED PRODUCTS or LICENSED PROCESSES. 

  

	1.12	NON-ROYALTY SUBLICENSE INCOME: the amount paid to LICENSEE by a third party (other than an AFFILIATE of LICENSEE) for the granting of a sublicense under Section 3.1 hereinafter,
excluding for which royalties are paid pursuant to Section 4.2, but including, without limitation (i) license fees, (ii) milestone payments, (iii) the fair market value in cash of any non 

  

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 cash consideration for such sublicense, (iv) in the event that LICENSEE receives any payment for equity
in connection with such sublicense that included a premium over the fair market value of such equity, the amount of such premium, and (v) NET RESEARCH AND DEVELOPMENT INCOME. 
  

	1.13	PATENT RIGHTS: The patent applications and patents listed in Appendix A of this Agreement, or that are thereafter filed and claim an invention priority date based on such patents or
patent applications, together with the allowed claims of all such applications, patents, and any divisions, continuations, continuations-in-part, specific claims of any continuations-in-part of such applications to the extent the specific claims are
directed to subject matter described in the applications and patents listed in Appendix A in a manner sufficient to support such specific claims under 35 U.S.C., patents issuing thereon, reissues and extensions thereof, and any and all foreign
patents and patent applications corresponding thereto, all to the extent owned or controlled by TJU. Upon proper exercise by LICENSEE of its rights under Sections 3.2 and 4.4 of this Agreement, a RELATED TECHNOLOGY shall thereafter be included
within the PATENT RIGHTS. 

  

	1.14	TERRITORY: the world. 

  

	1.15	VALID PATENT CLAIM: a claim of an issued, unexpired patent that has not been (a) held invalid or unenforceable by a final decision of a court or governmental agency of competent
jurisdiction, which decision is unappealable or was not appealed within the time allowed therefore, or (b) admitted in writing to be invalid or unenforceable by the holder(s) by reissue, disclaimer or otherwise. 

  

	1.16	The terms “Public Law 96-517” and “Public Law 98-620” include all amendments to those laws. 

  

	1.17	The terms “sold” and “sell” include, without limitation, leases and other transfers and similar transactions involving consideration. 

 
 ARTICLE II 
 REPRESENTATIONS 
  

	2.1	TJU is owner by assignment from inventors of their entire right, title and interest in and to the United States patents and patent applications as listed in Appendix A, the foreign
patents and patent applications corresponding thereto, and in the inventions described and claimed therein. 

  

	2.2	TJU has the authority to issue licenses under the PATENT RIGHTS, to the extent owned by TJU. 

  

	2.3	TJU is committed to the policy that ideas or creative works produced at TJU should be used for the greatest possible public benefit, and believes that every reasonable incentive
should be provided for the prompt introduction of such ideas into public use, all in a manner consistent with the public interest. 

  

	2.4	LICENSEE is prepared and intends to diligently develop the invention and to bring products to market which are subject to this Agreement. 

  

	2.5	LICENSEE is desirous of obtaining an exclusive license in the TERRITORY in order to practice the above-referenced inventions covered by the PATENT RIGHTS in the United States and in
foreign countries, and to manufacture, use and sell in the commercial market the products made in 

  
  

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 accordance therewith, and TJU is desirous of granting such a license to LICENSEE in accordance with the
terms of this Agreement. 
  
 ARTICLE III 
 GRANT OF RIGHTS 
  

	3.1	TJU hereby grants to LICENSEE and LICENSEE accepts, subject to the terms and conditions hereof, in the TERRITORY and in the FIELD, an exclusive commercial right and license under
the PATENT RIGHTS to make, have made, use, offer for sell, sell and import the LICENSED PRODUCTS, and to practice the LICENSED PROCESSES, for the life of the PATENT RIGHTS. Such license shall include the right to grant sublicenses. In the event of
sublicensing, LICENSEE shall promptly provide TJU a copy of such sublicense agreement for review. In order to provide LICENSEE with commercial exclusivity for so long as the license under the PATENT RIGHTS remains exclusive, TJU agrees that it will
not grant licenses under the PATENT RIGHTS to others except as required by TJU’s obligations under Section 3.3(a) or as permitted in Section 3.3(b). 

  

	3.2	After the execution date of this Agreement, if the Office of Technology Transfer (OTT) at TJU receives an invention disclosure which is a RELATED TECHNOLOGY, TJU shall promptly
notify LICENSEE of such technology. LICENSEE shall have the option to include such RELATED TECHNOLOGY into this Agreement by including such in Appendix A and by paying an additional non-refundable annual license fee of xxxx dollars($xxx). LICENSEE
shall have sixty (60) days to exercise such option upon receiving written notice from OTT at TJU, provided TJU is legally able to offer such option and license. 

  

	3.3	The grant and exercise of this exclusive license is subject to the following conditions: 

  

	 	(a)	TJU’s “Patent Policy” dated December 1, 1997, Public Law 96-517, and Public Law 98-620, and TJU’s obligations under agreements with other not-for-profit sponsors
of research. Any right granted in this Agreement greater than that permitted under Public Law 96-517, or Public Law 98-620, shall be subject to modification as may be required to conform to the provisions of those statutes. 

 

	 	(b)	TJU reserves the right to make and use, and grant to other not-for-profit institutions non-exclusive licenses to make and use, solely for ACADEMIC RESEARCH PURPOSES the subject
matter described and claimed in PATENT RIGHTS. 

  

	 	(c)	LICENSEE shall use diligent efforts to effect introduction of the LICENSED PRODUCTS into the commercial market as soon as practicable, consistent with sound and reasonable business
practice and judgment; thereafter, until the expiration of this Agreement, LICENSEE shall endeavor to keep LICENSED PRODUCTS reasonably available to the public. 

  

	 	(d)	At any time after six (6) years from the effective date of this Agreement, TJU may, after providing sixty (60) days advance notice to LICENSEE with an opportunity to cure, or
develop a reasonable plan that is agreeable to TJU, terminate or render this license non-exclusive if, in TJU’s reasonable judgment, the Progress Reports or other information furnished by LICENSEE do not substantially demonstrate that LICENSEE:

  

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	 	(i)	has put the licensed subject matter into commercial use in the country or countries hereby licensed, directly or through a sublicense, and is keeping the licensed subject matter
reasonably available to the public; or 

  

	 	(ii)	is engaged in research, development, manufacturing, marketing or sublicensing activity appropriate to achieving 3.3(d)(i). 

  

	 	(f)	In all sublicenses granted by LICENSEE hereunder, LICENSEE shall include a requirement that the sublicensee use its commercially reasonable efforts to bring the subject matter of
the sublicense into commercial use as quickly as is reasonably practical. LICENSEE shall further provide in such sublicenses that such sublicenses are subject and subordinate to the terms and conditions of this Agreement, except that : (i) the
sublicensee may not grant further sublicenses; and (ii) the rate of royalty on NET SALES paid by the sublicensee to the LICENSEE need not to be limited to the rate of royalty set forth herein. Copies of all sublicense agreements shall be provided
promptly to TJU. 

  

	 	(g)	TJU understands and acknowledges that LICENSEE will be spending considerable resources, both human and financial on the development of the LICENSED PRODUCTS in an effort to obtain
the necessary approvals of LICENSED PRODUCTS in the Territory. LICENSEE further acknowledges that it is TJU’s mission to make the LICENSED PRODUCTS available to the public. 

  

	 	(h)	During the period of exclusivity of this license in the United States, LICENSEE shall cause any LICENSED PRODUCT produced for sale in the United States to be manufactured
substantially in the United States. 

  

	3.4	All rights reserved to the United States Government and others under Public Law 96-517, and Public Law 98-620, shall remain and shall in no way be affected by this Agreement.

  
 ARTICLE IV 
 ROYALTIES 
  

	4.1	LICENSEE shall pay to TJU a one-time non-refundable license fee in the sum of xxxx ($xxx) upon execution of this Agreement. 

  

	4.2	LICENSEE shall pay to TJU during the term of this Agreement a royalty of xx percent (x%) of NET SALES by LICENSEE and its sublicensees. In the case of sublicenses, LICENSEE shall
pay to TJU a royalty of xx percent (xx%) of NON-ROYALTY SUBLICENSE INCOME. 

  

	4.3	As consideration for the rights granted hereunder, LICENSEE shall pay to TJU during the term of this Agreement the following cash milestone payments within thirty (30) days of their
occurrence (time of payment is of the essence): 

  

	 	(i)	xxxxx dollars ($xxx) upon the filing of a New Drug Application (“NDA”) by LICENSEE; 

  

	 	(ii)	xxxxx dollars ($xxx) upon the first approval of an NDA relating to the first LICENSED PRODUCT by the United States Food and Drug Administration (FDA); 

  

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	4.4	LICENSEE shall pay TJU an additional annual license fee in the amount of xxxx dollars ($xxx) for each RELATED TECHNOLOGY to be included in this Agreement. 

 

	4.5	Notwithstanding anything herein to the contrary, if any portion of the license pursuant to this Agreement is converted to a non-exclusive license and if other non-exclusive licenses
in the same field and territory are granted, the above royalties shall, if necessary, be reduced so as not to exceed the royalty rate to be paid by any other licensees in the same field and territory during the term of the non-exclusive license.

  

	4.6	On sales between LICENSEE and its AFFILIATES or sublicensees for resale, the royalty shall be paid on the NET SALES of the AFFILIATE or sublicensee. 

  

	4.7	No later than each anniversary of the effective date of this Agreement, LICENSEE shall pay to TJU the sum of xxxx dollars ($xxx) as a non-refundable license maintenance royalty
and/or advance on royalties. Such payments may only be credited against running royalties due for the calendar year in which they are paid, and Royalty Reports shall reflect such a credit. Such payments shall not be credited against milestone
payments (if any) nor against royalties due for any subsequent calendar year nor for any other payments made pursuant to this license. 

  
 ARTICLE V 
 REPORTING 
  

	5.1	Twelve (12) months after signing this Agreement, LICENSEE shall provide to TJU a written research and development plan under which LICENSEE intends to bring the subject matter of
the licenses granted hereunder into commercial use. Such plan shall include, as applicable, sublicensing plans, projections of sales and proposed marketing efforts. 

  

	5.2	Commencing in 2003, no later than sixty (60) days after June 30 of each calendar year, LICENSEE shall provide to TJU a detailed written annual Progress Report describing progress on
research and development, regulatory approvals, manufacturing, sublicensing, research and development contracts, marketing and sales during the most recent twelve (12) month period ending June 30 and plans for the forthcoming year. If multiple
technologies are covered by the license granted hereunder, the Progress Report shall provide the information set forth above for each technology. If progress differs from that anticipated in the plan required under Section 5.1, LICENSEE shall
explain the reasons for the difference and propose a modified research and development plan for TJU’s review. LICENSEE shall also provide any reasonable additional data TJU requires to evaluate LICENSEE’s performance.

  

	5.3	LICENSEE shall report to TJU the date of first sale of LICENSED PRODUCTS (or sales based on performance of LICENSED PROCESSES) in each country within thirty (30) days of occurrence.

  

	5.4	(a) Commencing with the earlier of the date of first sale of LICENSED PRODUCTS or sales based on performance of LICENSED PROCESSES, LICENSEE shall submit to TJU within sixty (60)
days after each calendar half year ending June 30 and December 31, a Royalty Report setting forth for such half year at least the following information: 

  

	 	(i)	the number of LICENSED PRODUCTS sold by LICENSEE, its AFFILIATES and sublicensees in each country; 

  

	 	(ii)	total billings for such LICENSED PRODUCTS; 

  

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	 	(iii)	an accounting for all LICENSED PROCESSES used or sold; 

  

	 	(iv)	deductions applicable to determine the NET SALES thereof; 

  

	 	(v)	the amount of NON-ROYALTY SUBLICENSE INCOME received by LICENSEE; and 

  

	 	(vi)	the amount of royalty due thereon, or, if no royalties are due to TJU for any reporting period, the statement that no royalties are due. 

  
 Such report shall be certified as correct by an officer of LICENSEE and
shall include a detailed listing of all deductions from royalties. 
  

	 	(b)	LICENSEE shall pay to TJU with each such Royalty Report the amount of royalty due with respect to such half year. If multiple technologies are covered by the license granted
hereunder, LICENSEE shall specify which PATENT RIGHTS are utilized for each LICENSED PRODUCT and LICENSED PROCESS included in the Royalty Report. However, only one royalty shall be due on the sale of any LICENSED PRODUCTS OR LICENSED PROCESSES,
regardless whether multiple patent claims or multiple patents under PATENT RIGHTS cover or are used in producing such product or process. 

  

	 	(c)	All payments due hereunder shall be deemed received when funds are credited to TJU’s bank account and shall be payable by check or wire transfer in United States dollars.
Conversion of foreign currency to U.S. dollars shall be made at the conversion rate existing in the United States (as reported in the New York Times or the Wall Street Journal) on the last working day of each royalty period. No transfer, exchange,
collection or other charges shall be deducted from such payments. 

  

	 	(d)	Payments more than thirty (30) days late shall be subject to a charge of one and one-half percent (1.5%) per month, or $250, whichever is greater. 

  

	5.5	In the event of acquisition, merger, change of corporate name, or organization, LICENSEE shall notify TJU in writing within thirty (30) days of such event. 

 

	5.6	If LICENSEE or any AFFILIATE or sublicensee (or optionee) does not qualify as a “small entity” as provided by the United States Patent and Trademark Office, LICENSEE must
notify TJU immediately. 

  
 ARTICLE VI 
 RECORD KEEPING 
  

	6.1	LICENSEE shall keep, and shall require its AFFILIATES and sublicensees to keep, accurate records (together with supporting documentation) of LICENSED PRODUCTS made, used or sold
under this Agreement, appropriate to determine the amount of royalties due to TJU hereunder. Such records shall be retained for at least three (3) years following the end of the reporting period to which they relate. They shall be available, upon
reasonable advance written requests by TJU, during normal business hours for examination by an accountant selected by TJU, for the sole purpose of verifying reports and payments hereunder. In conducting examinations pursuant to this

  

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 Section, TJU’s accountant shall have access to all records which TJU reasonably believes to be
relevant to the calculation of royalties under Article IV. 
  

	6.2	TJU’s accountant shall not disclose to TJU any information other than information relating to the accuracy of reports and payments made hereunder. 

  

	6.3	Such examination by TJU’s accountant shall be at TJU’s expense, except that if such examination shows an underreporting or underpayment in excess of five percent (5%) for
any twelve (12) month period, then LICENSEE shall pay the cost of such examination as well as any additional sum that would have been payable to TJU had the LICENSEE reported correctly, plus interest on said sum at the rate of one and one-half
percent (1.5%) per month. 

  
 ARTICLE VII 

DOMESTIC AND FOREIGN PATENT FILING AND MAINTENANCE 
  

	7.1	Upon execution of this Agreement and receipt by LICENSEE of notice of the specific amount, LICENSEE shall reimburse TJU for one hundred percent (100%) all reasonable expenses TJU
has incurred for the preparation, filing, prosecution and maintenance of PATENT RIGHTS prior to the execution date of this Agreement. The amount of such expenses total approximately $15,000 as of August 8, 2002. After execution date of this
agreement, LICENSEE shall reimburse TJU for all such future reasonable expenses upon receipt of invoices from TJU. Payment of these invoices more than thirty (30) days after their due date shall be subject to interest charges of one and one-half
percent (1.5%) per month. 

  

	7.2	TJU shall be responsible for the preparation, filing, prosecution and maintenance of any and all patent applications and patents included in PATENT RIGHTS. TJU will instruct counsel
to directly notify TJU and LICENSEE and provide them copies of any official communications from the United States and foreign patent offices relating to said prosecution, and to provide LICENSEE with advance copies of all relevant communications to
the various patent offices, so that LICENSEE may be informed and apprised of the continuing prosecution of patent applications in PATENT RIGHTS. LICENSEE shall have reasonable opportunities to participate in decision making on all key decisions
affecting filing, prosecution and maintenance of patents and patent applications in PATENT RIGHTS. TJU will use reasonable efforts to incorporate LICENSEE’s reasonable suggestions regarding said prosecution. TJU shall use all reasonable efforts
to amend any patent application to include claims reasonably requested by LICENSEE to protect LICENSED PRODUCTS. 

  

	7.3	TJU and LICENSEE shall cooperate fully in the preparation, filing, prosecution and maintenance of PATENT RIGHTS and of all patents and patent applications licensed to LICENSEE
hereunder, executing all papers and instruments or requiring members of TJU to execute such papers and instruments so as to enable TJU to apply for, to prosecute and to maintain patent applications and patents in TJU’s name in any country. Each
party shall provide to the other prompt notice as to all matters which come to its attention and which may affect the preparation, filing, prosecution or maintenance of any such patent applications or patents. In particular, LICENSEE must
immediately notify TJU if LICENSEE or any AFFILIATE or sublicensee (or optionee) does not qualify as a “small entity” as provided by the United States Patent and Trademark Office. 

  

	7.4	LICENSEE may elect to surrender its PATENT RIGHTS in any country upon sixty (60) days written notice to TJU. Such notice shall not relieve LICENSEE from responsibility to reimburse

  

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 TJU for patent-related expenses incurred prior to the expiration of the (60) day notice period (or such
longer period specified in LICENSEE’s notice). 
  
 ARTICLE
VIII 
 INFRINGEMENT 
  

	8.1	With respect to any PATENT RIGHTS that are exclusively licensed to LICENSEE pursuant to this Agreement, LICENSEE shall have the right to prosecute in its own name and at its own
expense any infringement of such patent, so long as such license is exclusive at the time of the commencement of such action. TJU agrees to notify LICENSEE promptly of each infringement of such patents of which TJU is or becomes aware. Before
LICENSEE commences an action with respect to any infringement of such patents, LICENSEE shall give careful consideration to the views of TJU and to potential effects on the public interest in making its decision whether or not to sue.

  

	8.2	(a) If LICENSEE elects to commence an action as described above, TJU 

  
 may, to the extent permitted by law, elect to join as a party in that action. Regardless of whether TJU elects to join as a party, TJU shall cooperate
fully with LICENSEE in connection with any such action. 
  
 (b)
If TJU elects to join as a party pursuant to Subsection (a), TJU shall jointly control the action with LICENSEE. 
  
 (c) LICENSEE shall reimburse TJU for any reasonable costs TJU incurs, including reasonable attorneys’ fees, as part of an action brought by LICENSEE,
irrespective of whether TJU becomes a co-plaintiff. 
  

	8.3	If LICENSEE elects to commence an action as described above, LICENSEE may deduct from its royalty payments to TJU with respect to the patent(s) subject to suit an amount not
exceeding fifty percent (50%) of LICENSEE’s expenses and costs of such action, including reasonable attorneys’ fees; provided, however, that such reduction shall not exceed fifty percent (50%) of the total royalty due to TJU with respect
to the patent(s) subject to suit for each calendar year. If such fifty percent (50%) of LICENSEE’s expenses and costs exceeds the amount of royalties deducted by LICENSEE for any calendar year, LICENSEE may to that extent reduce the royalties
due to TJU from LICENSEE in succeeding calendar years, but never by more than fifty percent (50%) of the total royalty due in any one year with respect to the patent(s) subject to suit. 

  

	8.4	No settlement, consent judgment or other voluntary final disposition of the suit may be entered into without the prior written consent of TJU, which consent shall not be
unreasonably withheld. 

  

	8.5	Recoveries or reimbursements from actions commenced pursuant to this Article shall first be applied to reimburse LICENSEE and TJU for litigation costs not paid from royalties and
then to reimburse TJU for royalties deducted by LICENSEE pursuant to Section 8.3. Any remaining recoveries or reimbursements shall be shared equally by LICENSEE and TJU. 

  

	8.6	If LICENSEE elects not to exercise its right to prosecute an infringement of the PATENT RIGHTS pursuant to this Article, TJU may do so at its own expense, controlling such action
and retaining all recoveries therefrom. LICENSEE shall cooperate fully with TJU in connection with any such action. 

  

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	8.7	Without limiting the generality of Section 8.6, TJU may, at its election and by notice to LICENSEE, establish a time limit of ninety (90) days for LICENSEE to decide whether to
prosecute any infringement of which TJU is or becomes aware. If, by the end of such ninety (90) day period, LICENSEE has not commenced such an action, TJU may prosecute such an infringement action at its own expense, controlling such action and
retaining all recoveries therefrom. With respect to any such infringement action prosecuted by TJU in good faith, LICENSEE shall pay over to TJU any payments (whether or not designated as “royalties”) made by the alleged infringer to
LICENSEE under any existing or future sublicense authorizing LICENSED PRODUCTS, up to the amount of TJU’s unreimbursed litigation expenses (including, but not limited to, reasonable attorneys’ fees). 

  

	8.8	If a declaratory judgment action is brought naming LICENSEE as a defendant and alleging invalidity of any of the PATENT RIGHTS, TJU may elect to take over the sole defense of the
action at its own expense. LICENSEE shall cooperate fully with TJU in connection with any such action. 

  
 ARTICLE IX 
 TERMINATION OF AGREEMENT 
  

	9.1	This Agreement, unless terminated as provided herein, shall remain in effect until the last patent or patent application in PATENT RIGHTS has expired or been abandoned.

  

	9.2	TJU may terminate this Agreement as follows: 

  

	 	(a)	If LICENSEE does not make a payment due hereunder and fails to cure such non-payment (including the payment of interest in accordance with Section 5.4(e)) within thirty (30) days
after the date of receipts by LICENSEE of notice in writing of such non-payment by TJU. 

  

	 	(b)	If LICENSEE defaults in its obligations under Sections 10.4 to procure and maintain insurance. 

  

	 	(c)	If, at any time after five years from the date of this Agreement, TJU determines that the Agreement should be terminated pursuant to and in accordance with Section 3.3(d).

  

	 	(d)	If LICENSEE shall become insolvent, shall make an assignment for the benefit of creditors, shall have been declared bankrupt by a court of competent jurisdiction, makes use of any
law or regulation for relief from creditors, or reorganizations or restructures in order to avoid creditors. Such termination shall be effective immediately upon TJU giving written notice to LICENSEE. 

  

	 	(e)	If an examination by TJU’s accountant pursuant to Article VI shows an underreporting or underpayment by LICENSEE in excess of twenty (20%) for any twelve (12) month period or
in excess of fifty thousand dollars ($50,000). 

  

	 	(f)	If LICENSEE is convicted of a felony relating to the manufacture, use, or sale of LICENSED PRODUCTS. 

  

	 	(g)	 Except as provided in Subsections (a), (b), (c), (d), (e) and (f) above, if LICENSEE defaults in the performance of any material obligations under this Agreement

  

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and the default has not been remedied within sixty (60) days after the date of notice in writing of such default by TJU. 

  

	9.3	LICENSEE shall provide, in all sublicenses granted by it under this Agreement, that LICENSEE’s interest in such sublicenses shall at TJU’s option terminate or be assigned
to TJU upon termination of this Agreement. 

  

	9.4	LICENSEE may terminate this Agreement by giving ninety (90) days advance written notice of termination to TJU. Upon termination, LICENSEE shall submit a final Royalty Report to TJU
and any royalty payments and unreimbursed patent expenses due to TJU shall become immediately payable. Upon termination by LICENSEE, all obligations and duties under this LICENSEE shall cease and terminate and LICENSEE agrees to execute all
reasonable documentations requested evidencing such termination. 

  

	9.5	Sections 6.1, 6.2, 6.3, 7.1, 8.5, 9.4, 9.5, 10.2, 10.4, 10.5, 10.8 and 10.9 of this Agreement shall survive termination. 

  
 ARTICLE X 
 GENERAL 
  

	10.1	TJU does not warrant the validity of the PATENT RIGHTS licensed hereunder and makes no representations whatsoever with regard to the scope of the licensed PATENT RIGHTS or that such
PATENT RIGHTS may be exploited by LICENSEE, an AFFILIATE, or sublicensee without infringing other patents. 

  

	10.2	TJU EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE PATENT
RIGHTS OR INFORMATION SUPPLIED BY TJU, LICENSED PROCESSES OR LICENSED PRODUCTS CONTEMPLATED BY THIS AGREEMENT 

  

	10.4	(a) LICENSEE shall indemnify, defend and hold harmless TJU and its current or former directors, governing board members, trustees, officers, faculty, medical and professional staff,
employees, students, and agents and their respective successors, heirs and assigns (collectively, the “INDEMNITEES”), from and against any claim, liability, cost, expense, damage, deficiency, loss or obligation of any kind or nature
(including, without limitation, reasonable attorney’s fees and other costs and expenses of litigation) (collectively, “Claims”), asserted against them by third parties, resulting from or arising out of, the exercise of the rights
granted under this Agreement or any sublicense by or on behalf of LICENSEE or its sublicensees, including without limitation any cause of action relating to product liability concerning any product, process, or service made, used or sold pursuant to
any right or license granted under this Agreement. 

  

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

  

	 	(c)	 Beginning at the time any such product, process or service is being commercially distributed or sold (other than for the purpose of obtaining regulatory approvals)
by LICENSEE or by a sublicensee, AFFILIATE or agent of LICENSEE, LICENSEE shall, at its sole cost and expense, procure and maintain commercial general liability insurance in amounts not less than 

  

 11 

	 	 
$2,000,000 per incident and $2,000,000 annual aggregate and naming the Indemnitees as additional insureds. During clinical trials of any such product,
process or service, LICENSEE shall, at its sole cost and expense, procure and maintain commercial general liability insurance in such equal or lesser amount as TJU shall require, naming TJU as additional insureds. Such commercial general liability
insurance shall provide: (i) product liability coverage; and (ii) broad form contractual liability coverage for LICENSEE’s indemnification under this Agreement. If LICENSEE elects to self-insure all or part of the limits described above
(including deductibles or retentions which are in excess of $250,000 annual aggregate) such self-insurance program must be acceptable to TJU. The minimum amounts of insurance coverage required shall not be construed to create a limit of
LICENSEE’s liability with respect to its indemnification under this Agreement. 

  

	 	(d)	LICENSEE shall provide TJU with written evidence of such insurance upon request of TJU. LICENSEE shall provide TJU with written notice at least fifteen (15) days prior to the
cancellation, non-renewal or material change in such insurance; if LICENSEE does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, TJU shall have the right to terminate this Agreement effective at
the end of such fifteen (15) day period without notice or any additional waiting periods. 

  

	 	(e)	LICENSEE shall maintain such commercial general liability insurance beyond the expiration or termination of this Agreement during: (i) the period that any product, process, or
service, relating to, or developed pursuant to, this Agreement is being commercially distributed or sold by LICENSEE or by a sublicensee, AFFILIATE or agent of LICENSEE; and (ii) a reasonable period after the period referred to in Subsection (e)(i)
above which in no event shall be less than fifteen (15) years. 

  

	10.5	LICENSEE shall not use TJU’s name or insignia, or any adaptation of them, or the name of any of TJU’s inventors, excluding any inventor who is employed by or affiliated
with LICENSEE, in any advertising, promotional or sales literature without the prior written approval of TJU. 

  

	10.6	This Agreement and the rights and duties hereunder may not be assigned by either party without first obtaining the written consent of the other, which consent will not be
unreasonably withheld. Any such purported assignment, without the written consent of the other party, will be null and of no effect. Notwithstanding the foregoing, LICENSEE may assign this License Agreement without the consent of TJU to a purchaser,
or successor-in-interest in the event of a merger, consolidation, or sale of substantially all of LICENSEE’s stock or assets or business and/or pursuant to any reorganization qualifying under section 368 of the Internal Revenue Code of 1986 as
amended, as may be in effect at such time, provided that such successor-in-interest or purchaser is financially solvent, validly existing and in good standing under the laws of its state of organization, and agrees to assume all of LICENSEE’s
obligations under this Agreement 

  

	10.7	The interpretation and application of the provisions of this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania. 

  

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

  

 12 

	 	 
such by LICENSEE or its AFFILIATES or sublicensees, and that it will defend and hold TJU harmless in the event of any legal action of any nature occasioned
by such violation. 

  

	10.9	LICENSEE agrees: (i) to obtain all regulatory approvals required for the manufacture and sale of LICENSED PRODUCTS and LICENSED PROCESSES; and (ii) to utilize appropriate patent
marking on such LICENSED PRODUCTS. LICENSEE also agrees to register or record this Agreement as is required by law or regulation in any country where the license is in effect. 

  

	10.10	Any notices to be given hereunder shall be sufficient if signed by the party (or party’s attorney) giving same and either: (i) delivered in person; (ii) mailed certified mail
return receipt requested; or (iii) faxed to other party if the sender has evidence of successful transmission and if the sender promptly sends the original by ordinary mail, in any event to the following addresses: 

  
 If to LICENSEE: 
 Neurologix, Inc. 
 c/o Palisade Capital
Management, L.L.C. 
 One Bridge Plaza 
 Fort Lee, New Jersey 07024 
 Attention: Mr. Mark S. Hoffman 
 Fax Number: (718) 747-0569 
  
 With a copy to: 
 Neurologix, Inc. 

271-32 E. Grand Central Parkway 
 Floral
Park, NY 11005 
 Attention: Dr. Martin J. Kaplitt, President 
 Fax Number: (718) 229-3804 
  
 If
to TJU: 
 University Office for Technology Transfer 
 Thomas Jefferson University 
 1020 Locust Street 
 Philadelphia, PA 19107 
 Attention: Director,
University Office of Technology Transfer 
 Fax: (215) 923-5835 
  
 With copy to University Counsel at 
 University Counsel 
 1020 Walnut Street 
 Philadelphia, PA 19107 
  
 By such notice either party may change their address for future notices. 
  
 Notices delivered in person shall be deemed given on the date delivered. Notices sent by fax shall be deemed given on the
date faxed. Notices mailed shall be deemed given three (3) days following the date postmarked on the envelope. 
  

	10.11	 Should a court of competent jurisdiction later hold any provision of this Agreement to be invalid, illegal, or unenforceable, and such holding is not reversed on
appeal, it shall be considered severed 

  

 13 

	 	 
from this Agreement. All other provisions, rights and obligations shall continue without regard to the severed provision, provided that the remaining
provisions of this Agreement are in accordance with the intention of the parties. 

  

	10.12	In the event of any controversy or claim arising out of or relating to any provision of this Agreement or the breach thereof, the parties shall try to settle such conflict amicably
between themselves. Subject to the limitation stated in the final sentence of this section, any such conflict which the parties are unable to resolve promptly shall be settled through arbitration conducted in accordance with the rules of the
American Arbitration Association. The demand for arbitration shall be filed within a reasonable time after the controversy or claim has arisen, and in no event after the date upon which institution of legal proceedings based on such controversy or
claim would be barred by the applicable statute of limitation. Such arbitration shall be held in Philadelphia, Pennsylvania. The award through arbitration shall be final and binding. Either party may enter any such award in a court having
jurisdiction or may make application to such court for judicial acceptance of the award and an order of enforcement, as the case may be. Notwithstanding the foregoing, either party may, without recourse to arbitration, assert against the other party
a third-party claim or cross-claim in any action brought by a third party, to which the subject matter of this Agreement may be relevant. The prevailing party in any arbitration shall be afforded reasonable costs and attorney fees.

  

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

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

							
	 Thomas Jefferson University
	 	 	 	 	 	 Neurologix, Inc.

				
	 /s/    Jussi J. Saukkonen
M.D.        

	 	 	 	 	 	 /s/    Martin J. Kaplitt        

	 Jussi J. Saukkonen M.D.
 Vice President for Science
Policy, Technology Development, and International Affairs
	 	 	 	 	 	Dr. Martin J. Kaplitt, President
				
	 Date: 8/13/2002

	 	 	 	 	 	 Date: 8/12/2002

  

 14Non-Exclusive License Agreement dated 8/28/2002

 EXHIBIT 10.33 
  
 NON-EXCLUSIVE LICENSE 
  
 This AGREEMENT by and between YALE UNIVERSITY, a corporation organized and existing under and by virtue of a charter granted by the general assembly of the Colony and
State of Connecticut and located in New Haven, Connecticut (“YALE”), THE ROCKEFELLER UNIVERSITY, a non-profit education corporation organized and exiting under the laws of the State of New York (“ROCKEFELLER”), and NEUROLOGIX,
INC., a corporation organized and existing under the laws of the State of Delaware, and with principal offices located at 271-32 E. Grand Central Parkway, Floral Park, NY 11005, (“LICENSEE”) shall be effective the date of final execution
below (“EFFECTIVE DATE”). 
  
 WITNESSETH: 
  
 WHEREAS, in the course of research conducted under YALE auspices, Matthew During, a former
faculty member and employee of YALE, and Michael Kaplitt, a former employee of ROCKEFELLER (the “INVENTORS”), have produced an invention entitled “Adeno-Associated Virus Vectors for Gene Therapy of Neurological Disorders” (the
“INVENTION”); and 
  
 WHEREAS, pursuant to an assignment by the
INVENTORS to YALE and ROCKEFELLER of all their rights, title and interest in and to the INVENTION and any patents resulting therefrom, YALE and ROCKEFELLER are the co-owners of the INVENTION, subject to rights reserved by the U.S. government; and

  
 WHEREAS, LICENSEE wishes to obtain a license to the INVENTION and any patents
resulting therefrom, and YALE and ROCKEFELLER are willing to grant such a license to LICENSEE subject to the terms and conditions hereof; 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained the parties agree as follows: 
  
 ARTICLE 1 DEFINITIONS 
  
 1.1 “LICENSED INTELLECTUAL PROPERTY” shall mean any United States or foreign patent
application(s) and patents(s) listed in Appendix “A” and owned, in whole or in part, by YALE and ROCKEFELLER during the term of this AGREEMENT together with any continuations, continuations-in-part, (but not improvements), any divisional
or substitute patents, any reissues or re-examinations of any such applications or patents, and any extension of the term of any such patent. 
  
 1.2 “LICENSED METHODS” shall mean any method, procedure, process or other subject matter, the manufacture, use or sale of which, without a license from YALE and
ROCKEFELLER, would infringe any VALID CLAIM of the LICENSED INTELLECTUAL PROPERTY. 
  

 1 

 1.3 “LICENSED PRODUCTS” shall mean any products, apparatus, kit, or component part thereof the manufacture, use
or sale of which, without a license from YALE and ROCKEFELLER, would infringe any VALID CLAIM of the LICENSED INTELLECTUAL PROPERTY. 
  
 1.4 “FIELD” shall mean gene therapy of diseases of the central nervous system in humans. 
  
 1.5 “CONFIDENTIAL INFORMATION” shall mean any and all information and data, technical or non-technical, which relates to LICENSED
INTELLECTUAL PROPERTY or to the terms of this Agreement and which is not publicly known and is disclosed to one party by the other during the negotiation of or under this Agreement. 
  
 1.6 “LICENSED TERRITORY” shall mean the entire world. 
  
 1.7 “NET SALES” means, for any period, the gross amount received by LICENSEE and its AFFILIATES, from the sale to third parties of
LICENSED PRODUCTS or LICENSED METHODS, less the following deductions (provided that any item treated as a deduction hereunder shall be properly allocable as a charge against sales rather than as a marketing, cost of goods, or other expenses, as
determined consistent with industry practice and United States generally accepted accounting principles): 
  
 a) normal and customary quantity and/or cash discounts and sales returns and allowances, including, without limitation, those granted on account of price
adjustments, rejected goods, damaged goods, returns, rebates actually allowed and taken, fees paid to distributors and chargebacks; 
  
 b) freight, postage, shipping, and insurance expenses (if separately identified in such invoice); 
  
 c) customs or excise duties or other duties directly imposed and related to
the sales making up the gross invoice amount; 
  
 d) any rebates
or similar payments made with respect to sales paid for by any governmental or regulatory authority such as, by way of illustration and not in limitation of the parties’ rights hereunder, Federal or state Medicaid, Medicare or similar state
program or equivalent foreign governmental program; or 
  
 e)
sales and other taxes, including without limitation value-added taxes, and duties directly related to the sale, to the extent that such items are included in the gross invoice price (but not including taxes assessed against the income derived from
such sale). Notwithstanding the foregoing, in all cases Net Sales shall be determined in accordance with United States generally accepted accounting practices. 
  

NET SALES shall not include gross sales for LICENSED PRODUCTS sold or services performed by LICENSEE to or for any AFFILIATE unless such AFFILIATE is an end-user of
any LICENSED PRODUCT or service performed using a LICENSED PRODUCT or METHOD and then such gross sales shall be included at the average selling price charged to a third party during the same quarter. 
  
 1.8 “AFFILIATE” means any entity or person that directly or indirectly controls, is
controlled by or is under common control with LICENSEE. For purposes of this definition, “control” means possession of the power to direct the management of such entity or person, whether through ownership of 50% or more voting securities,
by contract or otherwise. 
  

 2 

 1.9 “VALID CLAIM” means an unexpired claim included among the LICENSED INTELLECTUAL PROPERTY so long as such
claim shall not have been irrevocably abandoned or held to be invalid in an unappealable decision of a court or other authority of competent jurisdiction. 
  
 1.10 “PHASE I” means a human clinical trial in the United States of America, or its foreign equivalent, that is designed to establish that a pharmaceutical
product is safe for its intended use, and designed to support its continued testing in Phase II Clinical Trials. 
  
 1.11 “PHASE III” means a human clinical trial in the United States of America, or its foreign equivalent, that is designed to establish that a drug is safe and
efficacious for its intended use, and to define warnings, precautions and adverse reactions that are associated with the drug in the dosage range to be prescribed, and designed to support Regulatory Approval of such drug or label expansion of such
drug. 
  
 1.12 “BLA OR NDA APPROVAL” shall mean approval of either a
Biologics License Application or New Drug Application filed with the U.S. Food and Drug Administration to obtain marketing approval for a LICENSED PRODUCT in the United States, or approval of any comparable application filed with regulatory
authorities in or for a country or group of countries other than the United States. 
  
 1.13 “BLA OR NDA FILING” shall mean the filing of either a Biologics License Application or New Drug Application with the U.S. Food and Drug Administration to obtain marketing approval for a LICENSED PRODUCT in the United States,
or the filing of any comparable application with regulatory authorities in or for a country or group of countries other than the United States. 
  
 1.14 “IND” means an investigational new drug application filed with the U.S. Food and Drug Administration prior to beginning clinical trials in humans in the
United States or any comparable application filed with regulatory authorities in or for a country or group of countries other than the United States. 
  
 ARTICLE 2 LICENSE GRANT AND TERM 
  
 2.1 Subject to all the terms and conditions of this Agreement, YALE and ROCKEFELLER hereby grant to LICENSEE a non-exclusive license, within the FIELD under the LICENSED
INTELLECTUAL PROPERTY, to make, have made, use, sell, have sold, import and export, or have imported or exported, LICENSED PRODUCTS and to practice or have practiced any LICENSED METHOD (the “LICENSE”). This LICENSE does not include the
right to grant sublicenses. The parties acknowledge and agree, however, that no sublicense is necessary for LICENSEE to exercise its “have made,” “have sold,” “have imported and exported,” or “have practiced”
rights through the use of a third party acting on behalf of and/or in conjunction with LICENSEE or an AFFILIATE. 
  

 3 

 2.2 Unless terminated earlier as provided below, this Agreement shall commence on the EFFECTIVE DATE of full execution of
this Agreement. This Agreement shall automatically end on the date of the last to expire of the patents described in the LICENSED INTELLECTUAL PROPERTY. 
  
 ARTICLE 3 MILESTONES 
  
 3.1 LICENSEE shall pay to YALE and ROCKEFELLER, within fifteen (15) days of the EFFECTIVE DATE of this Agreement, a non-refundable license issue fee of Forty Thousand
Dollars ($40,000.00). 
  
 3.2 LICENSEE shall pay the following milestone payments
to YALE and ROCKEFELLER for each LICENSED PRODUCT developed by LICENSEE: 
  

	a)	a non-refundable milestone payment of Forty Thousand Dollars ($40,000) upon the filing of an IND. 

  

	b)	a non-refundable milestone payment of Sixty Thousand Dollars ($60,000) upon the treatment of the first patient in a PHASE I clinical trial. 

  

	c)	a non-refundable milestone payment of Two Hundred Fifty Thousand Dollars ($250,000) upon BLA OR NDA FILING. 

  

	d)	a non-refundable milestone payment of Two Hundred Fifty Thousand Dollars ($250,000) upon BLA OR NDA APPROVAL. 

  
 Each milestone payment shall be payable only once per development program, where a
development program comprises the clinical studies required for regulatory approval for a given indication. 
  
 3.3 Neither the license issue fee set forth in Article 3.1 nor the milestone payments set forth in Article 3.2 shall be credited against EARNED ROYALTIES payable under Article 4. 
  
 ARTICLE 4 ROYALTIES 
  
 4.1 As consideration for the license granted under this Agreement, LICENSEE shall pay to YALE
and ROCKEFELLER a cumulative earned royalty of xx Percent (xx%) of NET SALES of LICENSED PRODUCTS or LICENSED METHODS (“EARNED ROYALTIES”). EARNED ROYALTIES shall accrue in each country for the duration of the LICENSED PATENTS in that
country. LICENSEE shall pay all royalties accruing to YALE and ROCKEFELLER within sixty (60) days after the end of each calendar quarter (March 31, June 30, September 30 and December 31) in which NET SALES occur, along with a written report (as
described in Section 8) setting forth the NET SALES and the earned royalties payable thereon. 
  
 4.2 In the event that at any time during the TERM, LICENSEE or its AFFILIATES, in order to exploit the license granted to it under Section 2.1 of this AGREEMENT in any country, are required to make royalty payments to
one or more third parties or to YALE or ROCKEFELLER pursuant to another license agreement (“THIRD PARTY PAYMENTS”) to obtain a license to an issued patent or patents in the absence of which a LICENSED PRODUCT could not legally be
manufactured or sold in such country, then royalties due to YALE and ROCKEFELLER pursuant to Section 4.1 
  

 4 

 above for a given LICENSED PRODUCT may be reduced by fifty percent (50%) of such THIRD PARTY PAYMENTS. Notwithstanding
the foregoing, such reductions shall in no event reduce the royalty for such LICENSED PRODUCT payable pursuant to such subsection by more than fifty percent (50%). 
  
 4.3 During the term of this Agreement, EARNED ROYALTIES shall be payable by LICENSEE during the period that any LICENSED INTELLECTUAL
PROPERTY is effective in any country, or, in the case of patent applications, during the period such applications remains pending for less than 7 years from the EFFECTIVE DATE. In the event that a LICENSED INTELLECTUAL PROPERTY lapses, is abandoned,
is admitted to be invalid or unenforceable through reissue or disclaimer, or if all of its claims are declared invalid by a court of competent jurisdiction from which no appeal may be taken, or, in the case of patent applications, is pending for
more than 7 years from the EFFECTIVE DATE, the obligation to pay royalties for that patent or patent application shall terminate as of the date of that decision, but this Agreement shall remain in effect as to the remaining LICENSED INTELLECTUAL
PROPERTY, or claims thereunder. 
  
 4.4 During the term of this Agreement,
LICENSEE agrees to pay YALE and ROCKEFELLER an annual License Maintenance Fee (“LMF”) of Ten Thousand Dollars ($10,000.00) commencing on the first January 1 after the EFFECTIVE DATE of this Agreement and every January 1 thereafter.
LICENSEE shall continue to pay the LMF until the end of the term of the last to expire of the LICENSED INTELLECTUAL PROPERTY. YALE and ROCKEFELLER shall fully credit the LMF against any earned royalties payable by LICENSEE in the same year. All
royalties and other payments due under this Agreement shall be paid to YALE and ROCKEFELLER in U.S. Dollars. LICENSEE shall send fifty percent (50%) of any such payment to YALE and fifty percent (50%) to ROCKEFELLER, together with any necessary
reports, to the addresses included in Article 11 below. In the event that conversion from foreign currency is required in calculating a payment hereunder, the exchange rate used shall be the Interbank rate quoted by Citibank at the end of the last
business day of the quarter in which the royalty was earned. If overdue, the royalties and any other payments due under this Agreement, shall bear interest until payment at a per annum rate two percent (2%) above the prime rate in effect at Citibank
on the due date. The payment of such principal and interest shall not preclude YALE and ROCKEFELLER from exercising its rights under Section 10.3 it may have as a consequence of the lateness of any payment. 
  
 ARTICLE 5 CONFIDENTIALITY AND PUBLICITY 
  
 5.1 Confidentiality. YALE, ROCKEFELLER, and LICENSEE each recognize that the
other’s CONFIDENTIAL INFORMATION constitutes highly valuable information. Subject to the parties’ rights and obligations pursuant to this Agreement, YALE, ROCKEFELLER, and LICENSEE agree that during the term of this Agreement and for five
(5) years thereafter, they: 
  
 a) subject to LICENSEE’s
rights granted herein to use CONFIDENTIAL INFORMATION to develop a LICENSED PRODUCT or LICENSED METHOD, the parties will not make any commercial use of the other’s CONFIDENTIAL INFORMATION, without the prior written consent of the owner of the
CONFIDENTIAL INFORMATION; and 
  
 b) will keep confidential and
will cause their Affiliates to keep confidential, the other’s CONFIDENTIAL INFORMATION by taking whatever action it would take to preserve the confidentiality of its own CONFIDENTIAL INFORMATION; and 
  

 5 

 c) in the absence of prior written consent of the other party, will only disclose that part of the
other’s CONFIDENTIAL INFORMATION that is necessary for those officers, employees, consultants or Affiliates who need to know to carry out their responsibilities under this Agreement and then only under similar conditions of confidentiality; and

  
 d) will not disclose the other’s CONFIDENTIAL INFORMATION
to any other third party under any circumstance without written permission from the other party; and 
  
 e) will, within sixty (60) days of the request of the other party upon termination of this Agreement, return all the CONFIDENTIAL INFORMATION disclosed to
the other party pursuant to this Agreement except that one copy of such CONFIDENTIAL INFORMATION may be kept by each party’s Attorney for archival purposes. 
  
 5.2 The obligations of confidentiality described above shall not pertain to that part of the CONFIDENTIAL INFORMATION which: 
  
 a) was known to the RECIPIENT prior to the disclosure by the DISCLOSING
PARTY; or 
  
 b) is or becomes publicly known through no fault or
omission attributable to the RECIPIENT; or 
  
 c) is rightfully
given to the RECIPIENT from sources independent of the DISCLOSING PARTY; or 
  
 d) is required to be disclosed by law, but only after prompt written notice to the owner of the CONFIDENTIAL INFORMATION and opportunity to seek a protective order or to agree to such disclosure. In the event that
such protective order or other remedy is not obtained, RECIPIENT shall disclose only that portion of the CONFIDENTIAL INFORMATION that is legally required to be disclosed in the opinion of RECIPIENT’s legal counsel. 
  
 5.3 Publicity. Except as required by law, neither party may disclose the terms of this
Agreement without the written consent of the other party, which consent shall not be unreasonably withheld. 
  
 ARTICLE 6 REPORTS, RECORDS AND INSPECTIONS 
  
 6.1 LICENSEE shall provide status reports to YALE and ROCKEFELLER, annually on each anniversary of EFFECTIVE DATE of this Agreement, indicating progress and problems to date in commercialization, and a forecast and
schedule of major events required to market the LICENSED PRODUCTS. 
  
 6.2
LICENSEE shall, within sixty (60) days after the calendar year in which NET SALES first occur, and within (30) days after each calendar quarter (March 31, June 30, September 30 and December 31) thereafter provide YALE and ROCKEFELLER with a written
report detailing all sales and uses, if any, made of LICENSED PRODUCTS and LICENSED METHODS by LICENSEE or its AFFILIATES during the preceding calendar quarter and calculating the royalties due pursuant to that Section. Each such report shall be
signed by an officer of LICENSEE (or the officer’s designee), and 
  

 6 

 must include the number of LICENSED PRODUCTS manufactured and sold by LICENSEE and the prices thereof, any deductions
made, and total royalties due. 
  
 6.3 LICENSEE shall keep and maintain, and
require its AFFILIATES to keep and maintain, complete and accurate records and books containing an accurate accounting of all data in sufficient detail to enable verification of earned royalties and other payments hereunder. LICENSEE shall preserve
such books and record for three (3) years after the sales recorded were actually made. Such books and records shall be open to inspection by YALE and/or ROCKEFELLER or an independent certified public accountant, at YALE’s and/or
ROCKEFELLER’s expense, during normal business hours upon ten (10) days prior written notice, for the purpose of verifying the accuracy of the reports and computations rendered by LICENSEE. 
  
 ARTICLE 7 PATENT PROTECTION, INFRINGEMENT AND LITIGATION 
  
 7.1 YALE, ROCKEFELLER, and LICENSEE each agree to notify the other Parties promptly in
writing of each infringement or possible infringement of the LICENSED INTELLECTUAL PROPERTY by any third party of which any Party becomes aware. LICENSEE shall provide YALE and ROCKEFELLER with any evidence of such possible infringement in
LICENSEE’s possession or readily available to LICENSEE. 
  
 7.2 In the event
LICENSEE shall bring to the attention of YALE and ROCKEFELLER any evidence of unlicensed infringement of the LICENSED INTELLECTUAL PROPERTY by a third party, and YALE and/ROCKEFELLER do not, within six months from receipt of such evidence, (i)
secure cessation of the infringement in that country or (ii) enter suit against the infringing third party, then LICENSEE may suspend all payments under this Agreement with respect to the country in which the infringement is occurring. 

 
 7.3 YALE and ROCKEFELLER shall prepare, file, prosecute and maintain all patent
applications and patents included in the LICENSED INTELLECTUAL PROPERTY. LICENSEE shall reimburse YALE AND ROCKEFELLER for a pro rata share of the expenses incurred by the preparation, filing, prosecution and maintenance of all patent applications
and patents included in the LICENSED INTELLECTUAL PROPERTY. The amount of such reimbursement shall be determined by the formula 1/N, where N = the total number of licensees to the LICENSED INTELLECTUAL PROPERTY. LICENSEE shall be provided with the
opportunity to review, comment and consult on such papers relating to the LICENSED INTELLECTUAL PROPERTY before filing with any patent office through patent counsel. LICENSEE shall be provided copies, in a timely manner, of all correspondence sent
to and received from any patent office. 
  
 ARTICLE 8 USE OF
YALE’s AND ROCKEFELLER’S NAME 
  
 LICENSEE shall not use the name
“YALE” or “Yale University”, “ROCKEFELLER”, “The Rockefeller University”, nor any adaptation thereof, nor the names of any of their trustees, directors, officers, employees, or agents, for any purpose without
prior written consent obtained from either YALE, ROCKEFELLER, or said individual in each instance, except that LICENSEE may state that it is licensed by YALE and ROCKEFELLER under one or more of the patents and/or applications comprising the
LICENSED INTELLECTUAL PROPERTY and/or may use the names “YALE”, 
  

 7 

 “Yale University”, “ROCKEFELLER”, or “The Rockefeller University” as LICENSEE reasonably
believes to be required by law or regulation. 
  
 ARTICLE 9
TERMINATION 
  
 9.1 Upon termination of this Agreement for any reason, all
rights granted to LICENSEE under the terms of this Agreement are terminated. 
  
 9
..2 Termination of this Agreement shall not affect any rights or obligations accrued prior to the effective date of such termination and specifically LICENSEE’s obligation to pay all EARNED ROYALTIES specified by Article 4. Articles 1, 7, the
preservation obligations and inspection rights of Article 6, and the indemnification obligations of Article 10 all survive any termination of this Agreement. 
  
 9.3 YALE and ROCKEFLLER may terminate this Agreement upon written notice to LICENSEE as specified below: 
  
 a) in the event LICENSEE fails to make any payment whatsoever due and payable pursuant to this Agreement unless LICENSEE
shall make all such payments within sixty (60) days written notice from YALE or ROCKEFELLER; or 
  
 b) in the event LICENSEE commits a material breach of any other obligation of this Agreement which is not cured (if capable of being cured) within sixty
(60) days written notice by YALE and ROCKEFELLER, or, if such breach or default is not capable of remedy within such sixty (60) day period, in the event that LICENSEE fails, within sixty (60) days of YALE’s or ROCKEFELLER’s written notice,
to present YALE and ROCKEFELLER with a mutually agreeable plan to cure such default. Under no circumstances shall YALE or ROCKEFELLER be obligated to approve of such a plan, but such approval shall not be unreasonably withheld; or 
  
 c) in the event that LICENSEE shall declare bankruptcy, then this Agreement
shall terminate upon notice by YALE or ROCKEFELLER 
  
 9.4 LICENSEE shall have the
right to terminate this Agreement: 
  
 a) at any time on three (3)
months notice to YALE and ROCKEFELLER provided LICENSEE is not in breach and upon payment of all amounts due YALE and ROCKEFELLER throughout the effective date of termination; or 
  
 b) in the event of YALE’s or ROCKEFELLER’s material breach of any of the provisions of this Agreement, upon sixty
(60) days advance written notice to YALE and ROCKEFELLER, if said breach is not cured. 
  
 9.5 The rights provided in this Article 9 shall be in addition and without prejudice to any other rights that the parties may have with respect to any breach or violations of the provision of this Agreement. 
  
 9.6 Waiver by either party of one or more defaults or breaches shall not deprive such party
of any right to terminate on occasion of any subsequent default or breach. 
  

 8 

 ARTICLE 10 INDEMNIFICATION; INSURANCE; NO WARRANTIES 
  
 10.1 Except as provided by Article 9, LICENSEE shall defend, indemnify and hold harmless YALE
and ROCKEFELLER, their trustees, directors, officers, employees, and agents against any and all claims, demands, damages, losses and expenses of any nature, including legal expenses and attorney’s fees to arising out of: 
  
 a) the death, personal injury, or illness of any person or out of damage to
any property resulting from the production, manufacture, sale, use, lease, or other disposition or consumption or advertisement of the LICENSED PRODUCTS by LICENSEE, its AFFILIATES or their transferees; or 
  
 b) in connection with any statement, representation or warranty of LICENSEE,
its AFFILIATES, or their transferees with respect to the LICENSED PRODUCTS. 
  
 10.2 LICENSEE shall purchase, and maintain in effect during any period in which it is selling LICENSED PRODUCTS or LICENSED METHODS or using same in human clinical trials, a policy of commercial, general liability insurance to protect
LICENSEE, YALE, and ROCKEFELLER with respect to events described in Article 10.1. LICENSEE agrees that such insurance shall: 
  
 a) list YALE and ROCKEFELLER, their directors, officers and employees as additional named insured’s thereunder, 
  
 b) provide that such policy is primary and not excess or contributory with regard to other
insurance YALE and/or ROCKEFELLER may have, and 
  
 c) be endorsed to include
product liability coverage in amounts no less than $2 Million Dollars per incident and $5 Million Dollars annual aggregate; and 
  
 d) be endorsed to include contractual liability coverage for LICENSEE’s indemnification under Article 10; and 
  
 e) the minimum amount of insurance coverage requires under this Article 10.2 shall not be
construed to create a limit of LICENSEE’s liability with respect to its indemnification under Article 10. 
  
 LICENSEE shall furnish a copy of such insurance policy to YALE and ROCKEFELLER upon request. LICENSEE shall provide sixty (60) days written notice to YALE and ROCKEFELLER prior to any cancellation or material change
of the above-described policy. 
  
 10.3 a) YALE and ROCKEFELLER make NO
REPRESENTATIONS or WARRANTIES that any LICENSED INTELLECTUAL PROPERTY claims, issued or pending are valid, or that the manufacture, use, sale or other disposal of the LICENSED PRODUCTS does NOT infringe upon any patent or other rights NOT vested in
YALE and ROCKEFELLER. 
  
 b) YALE and ROCKEFELLER DISCLAIM ALL
WARRANTIES WHATSOEVER WITH RESPECT TO THE LICENSED INTELLECTUAL PROPERTY AND THE LICENSED PRODUCTS EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. LICENSEE shall make no
statements, representation or warranties whatsoever to any third parties which are inconsistent with such disclaimer by YALE and ROCKEFELLER. 
  

 9 

 10.3 Nothing in this Agreement shall be construed as granting by implication, estoppel or otherwise any licenses under
patents of YALE and ROCKEFELLER other than LICENSED INTELLECTUAL PROPERTY, regardless of whether such patents are dominant or subordinate to any of the LICENSED INTELLECTUAL PROPERTY. 
  
 ARTICLE 11 NOTICES, PAYMENTS 
  

Any payment, notice or other communication required by this Agreement shall be deemed properly given and effective if signed by the party (or
party’s attorney) giving same and either: (i) delivered in person; (ii) mailed certified mail return receipt requested; (iii) on the third day after mailing if sent by Registered or Certified first class U.S. Mail, postage prepaid or (iv) faxed
to other party if the sender has evidence of successful transmission and if the sender promptly sends the original by ordinary mail to the following addresses or to such other address as such party shall designate by written notice to the other
party: 
  
 FOR YALE: 
  
 Managing Director 
 Yale University 
 Office of Cooperative Research 
 433 Temple St. 
 New Haven, CT 06520-8336 
  
 FOR ROCKEFELLER: 
  
 Associate Vice President 
 Technology Transfer 
 The Rockefeller University 
 1230 York Avenue—Box 81 
 New York, New York 10021 
  
 FOR LICENSEE: 
  
 Neurologix, Inc. 
 c/o Palisade Capital Management, L.L.C. 
 One Bridge Plaza 
 Fort Lee, New Jersey 07024 
 Attention: Mr. Mark S. Hoffman 
 Fax Number: (718) 747-0569 
  
 With a copy to: 
  
 Neurologix, Inc. 
 271-32 E. Grand Central Parkway 
 Floral Park, NY 11005 
 Attention: Dr. Martin J. Kaplitt, President 
 Fax Number: (718) 747-0569 
  

 10 

 ARTICLE 12 LAWS AND REGULATIONS 
  
 12.1 This Agreement shall be governed by and in accordance with the laws of the state of New York, without regard to its conflict of law
principles. 
  
 12.2 LICENSEE shall comply with all foreign and United States
federal, state, and local laws, regulations, rules and orders applicable to the testing, production, transportation, packaging, labeling, export, sale and use of the LICENSED PRODUCTS. In particular, LICENSEE shall be responsible for assuring
compliance with all U.S. export laws and regulations applicable to this license and LICENSEE’s activities under this Agreement. 
  
 ARTICLE 13 MISCELLANEOUS 
  
 13.1 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective legal representatives, successors and
permitted assigns. 
  
 13.2 Entire Agreement. This Agreement constitutes
the entire agreement of the parties relating to the LICENSED INTELLECTUAL PROPERTY, and all prior representations and understandings are superseded by this Agreement. 
  
 13.3 Severability. The provisions of this Agreement shall be deemed separable. If any part of this Agreement is rendered void,
invalid, or unenforceable, such shall not affect the validity or enforceability of the remainder of this Agreement unless the part or parts that are void, invalid or unenforceable shall substantially impair the value of the entire Agreement as to
either party. 
  
 13.4 Headings. Paragraph headings are inserted for
convenience of reference only and do not form a part of this Agreement. 
  
 13.5
No Third Party Beneficiaries. No person not a party to this Agreement, including any employee of any party to this Agreement, shall have or acquire any rights by reason of this Agreement. Nothing contained in this Agreement shall be deemed to
constitute the parties partners with each other or any third party. 
  
 13.6
Amendment; Assignment. This Agreement may not be amended except by written agreement executed by each of the parties, and shall not be assigned by LICENSEE except with the written consent of YALE and ROCKEFELLER, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing, LICENSEE may assign this License Agreement without the consent of YALE or ROCKEFELLER to a purchaser, or successor-in-interest in the event of a merger, consolidation, or sale of substantially
all of LICENSEE’s stock or assets or business and/or pursuant to any reorganization qualifying under section 368 of the Internal Revenue Code of 1986 as amended, as may be in effect at such time, provided that such successor-in-interest or
purchaser is financially solvent, validly existing and in good standing under the laws of its state of organization, and agrees to assume all of LICENSEE’s obligations under this Agreement. 
  

 11 

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

					
	 YALE UNIVERSITY
	 	 	 	 NEUROLOGIX, INC.

			
	 /s/    E. Jonathan Soderstrom        
	 	 	 	 /s/    Martin J. Kaplitt        

	
	 	 	 	

	 E. Jonathan Soderstrom, Ph.D.
 Managing Director, Office
of Cooperative Research
	 	 	 	 Dr. Martin J. Kaplitt
 President

			
	 Date: August 15, 2002
	 	 	 	 Date: August 28, 2002

  

	
	 THE ROCKEFELLER UNIVERSITY

	
	 /s/    Kathleen A. Denis, Ph.D.        

	

	 Kathleen A. Denis, Ph.D.
 Associate Vice President,
Technology Transfer

  
 Date: August 13, 2002 
  

 12

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