Document:

Lease And Service Agreement

 EXHIBIT 10.9 
  
 [AMERICAN EXECUTIVE CENTERS LETTERHEAD] 
  
 LEASE AND SERVICE AGREEMENT 
  
 This Lease is made on November 27, 2001, between American Executive Centers, Inc. (“AEC”) a Pennsylvania
corporation, and Duska Scientific Co., a corporation (corporation/partnership/sole proprietorship) (“Tenant”) in consideration of the performance of the covenants contained herein and intending to be legally bound, the parties hereto agree
as follows: 
  
 1. Leased Premises: A floor plan of
AEC’s leased premises at Two Bala Plaza is attached as Exhibit A. Subject to the terms and conditions set forth in this Agreement, AEC agrees to Lease and Tenant agrees to rent: 
  
 (a) On an exclusive basis, office number 71. 
  
 (b) On a non-exclusive (shared) basis, all other common areas designated on the floor plan. 
  
 (c) On a non-exclusive basis, the services described in
Exhibits B-1 and B-2. 
  
 2. Use: The leased premises may
be used by the Tenant as an officer for general business use and no other purpose. Tenant acknowledges that AEC leases the premises pursuant to a lease with its landlord and that this lease is subject and subordinate thereto. Tenant will be provided
with sixty days’ written notice regarding any changes in AEC’s lease status with its landlord. A copy of said lease is available at landlord’s office for inspection and copying by Tenant. Tenant agrees to comply with all rules and
regulations established for the building from time to time and to observe all terms and conditions of said Lease applicable to the premises. The Tenant will not offer any service to other Tenants of AEC which AEC offers. AEC reserves the right by
written notice to the Tenant to add or change any rule or regulation at any time when in AEC’s judgment it is necessary for the best interests of its Tenants or to comply with AEC’s lease in the building. AEC has the right to modify the
non-exclusive areas of the leased premises. The Tenant will not alter any lock on any door, nor make any alterations to the leased premises without the written consent of AEC. 
  
 3. Term: 
  
 (a) The term of this Lease will be 12 months beginning on December 1, 2001 (commencement date) and ending on November 30, 2002
(termination date). Rent will be prorated for early occupancy. 
  
 (b) If AEC cannot deliver possession of the leased premises to the Tenant on the commencement date, this contract will not be void or voidable nor will AEC be liable for any losses resulting, but rent will be abated
until possession is delivered. 

 (c) Either party may terminate this Lease at the expiration of the stated term with sixty
days prior written notice (termination notice period commences on the first day of the following month after termination notice is received), otherwise this Lease renews for the same period of time as the original term under the then current terms
and conditions and the rental rate shall be the current rate being charged for like space. 
  
 4. Rent and Additional Rent: In consideration of the facilities and services described in Exhibit B-1, 
  
 (a) The Tenant agrees to pay AEC an amount due for base rent for the leased premises of $1,000.00 per month payable in advance and without
demand plus the annual due for the fractional month, if any. 
  
 (b) The Tenant agrees to pay as additional rent the amount due for Exhibit B-2 services utilized. 
  
 (c) The Tenant agrees to pay all rents on or before the first day of the month. 
  
 (d) Time is of the essence in the payment of all rents. In
the event that the Tenant fails to pay any rent within five days of the due date, AEC may: 
  
 (1) charge the Tenant a late fee of $75.00 per office for each and every month in which Tenant is delinquent until the balance is paid and

  
 (2) issue a written notice to the Tenant
stating Tenant is in default of this lease; 
  
 (3) terminate all Exhibit B-1, B-2 services upon twenty-four hours prior notice to the Tenant. 
  
 (e) AEC may exercise its rights under all sections of this Lease as many times as necessary, and the exercise of one right shall not
prevent AEC from exercising the same right again, nor any other right, as AEC shall choose. 
  
 (f) Tenant agrees to compensate AEC $75.00 for each occasion that a check is returned by the Tenant’s bank for insufficient funds.

  
 (g) Rents and bills for services shall be paid
to American Executive Centers, Inc., 900 East Eighth Avenue, Suite 300, King of Prussia, PA 19406 or other address that AEC designates in writing. 
  
 5. Services Retainer: Concurrent with the execution of this Lease, the Tenant agrees to pay $1,500.00 as an Exhibit B-2 services retainer
(secretarial, copier, fax, postage, phone usage, etc.) which enables the Tenant to utilize B-2 services on account with only periodic billing. The services retainer is computed at 1-1/2 times the base rent amount and approximates the average amount
of B-2 services incurred on account by a customer over a 60 day period before they are tabulated, billed and due. Further, Tenant agrees that AEC is not obligated to furnish B-2 services in excess of the services retainer amount deposited and that
the Tenant 
  

 2 

 agrees to increase the services retainer if the base rent changes due to e.g. increased office size, increased number of
offices, etc. The services retainer amount will be returned approximately 60 days after the Tenant has moved out, net of any amount due under the lease. 
  
 6. Hold Harmless: AEC is not obligated to carry insurance on the Tenant’s personal or business property. AEC will not be liable to the Tenant
or any other person for any damages on account of loss, damage or theft to any personal or business property of Tenant, its employees, agents or invitees. 
  
 7. Hiring of Employees: The Tenant will not hire an AEC employee, met on the premises during the Lease term or extension or renewal hereof and 90
days thereafter. The Tenant agrees to pay AEC $10,000 for each breach of this provision. 
  
 8. Default and Landlord’s Remedies: Any of the following shall constitute an event of default by the Tenant: 
  
 (a) Failure to perform any requirement of this lease when such performance is due or to pay any sum of money when due and such failure
shall continue for ten (10) days after the date of written notice from AEC to Tenant specifying the nature of said default. 
  
 (b) Any removal or attempt to remove any of the Tenant property from the leased premises, other than in the ordinary course of business,
without having first paid all amounts due, or amounts that will become due under this Lease. 
  
 (c) A declaration of bankruptcy, insolvency, or other organization or filing for protection from creditors. 
  
 9. If Tenant shall default on this lease, AEC may, without further
notice: 
  
 (a) Terminate this lease
effective immediately, by written notice to the Tenant. Upon such termination (i) Tenant shall have no further right to avoid the termination by payment of any sum due or by performance of any condition, term or covenant broken and (ii) the rent for
the entire unexpired term of this lease, together with all other charges, payments, costs and expenses incurred including collection expenses of up to 15% of the amount due shall be immediately due and payable by the Tenant. 
  
 (b) Re-enter and take possession of the leased premises,
remove all persons and property therefrom, all without being liable to prosecution or for damages. 
  
 (c) Re-let the leased premises to prospective Tenants that AEC deems fit. 
  
 (d) Impound the Tenant’s property and sell it, applying the proceeds to any rent due or to become due
by the expiration of the term of this lease, and any other charges, including the costs of collection. 
  
 10. Prohibition against assignment or sublease: Tenant may not assign its interest in this lease or sublet the leased premises without the express
written consent of AEC, which will no t be unreasonably withheld. 
  

 3 

 11. Guarantee: 
  
 (The Provisions of this paragraph are only in force if the Tenant has been in existence for less than 5 years). For good and
valuable consideration, and to induce AEC to lease certain office space to Tenant, the undersigned, jointly and severally, guarantee unconditionally two months rent and additional rent of all sums now and hereafter owed to AEC by Tenant, and for the
full and prompt performance by Tenant of all other requirements of the lease. The undersigned promise to remain bound by this guaranty, notwithstanding any waiver, release, discharge, or extension by AEC. In the event of default, AEC shall not be
required to proceed first against the Tenant but may seek payment directly from the undersigned. 
  
 12. Miscellaneous: 
  
 (a) If either party has given notice to the other to terminate this Lease or if the Tenant is in default under this Lease, AEC will have
the right to show the leased premises to prospective Tenants. AEC will have the right to inspect the leased premises, at reasonable times. 
  
 (b) This Lease contains the entire Agreement between AEC and Tenant. 
  
 (c) Any provision of this Lease which proves to be invalid or illegal will in no way affect any other
provisions of this Lease which will remain in full force. 
  
 (d) Tenant agrees not to use the services retainer to pay the last months rent. 
  
 (e) AEC will have the right at any time during the lease term, upon giving the Tenant 30 days written notice, to relocate the Tenant at
AEC’s expense, to space of comparable square footage within the suite. Should the Tenant refuse to relocate at the end of the 30 day period, AEC will have the right to terminate this Lease effective immediately, without further notice to the
Tenant. If the Lease is canceled, there will be no further obligation on the part of either party, except the Tenant will pay all rents and charges when due as set forth in Lease Exhibit B-2. 
  
 (f) On month-to-month leases, AEC has the right to show the
leased premises during all normal business hours on any day. 
  
 (g) Tenant agrees that repeated events of unprofessional behavior to AEC employees or Tenants, its employees, agents or invitees is unacceptable. AEC will provide Tenant with written notice if such events occur. In
the event of a third event, AEC may terminate this agreement with thirty days written notice, and the payment of one month’s rent by AEC to Tenant, provided that the third event occurred more than thirty days after the initial notice.

  
 (h) The Tenant agrees to only use the local
and long distance telephone services provided by AEC, when making telephone calls within the leased premises. The rates are comparable to the local Bell and AT&T direct distance dialing rates plus applicable federal and state taxes. All
fractional charges are rounded up to the nearest cent. The Tenant agrees to pay AEC the monthly charges attributed to their local and long distance usage upon presentation of a standard detailed statement of usage. 
  

 4 

 (i) Any holdover tenancy period which exists after receipt of a valid termination notice
will be billed on a month-to-month basis. 
  
 (j)
Tenant is responsible for all damages to AEC premises, normal wear and tear excepted. 
  
 (k) For the benefit of all Tenants, smoking in not permitted with the leased premises. 
  
 (l) If Tenant has power requirements in addition to a
standard office provision, AEC reserves the right to separately meter and charge for electrical installation and consumption. 
  
 (m) Tenant acknowledges that AEC, as part of maintaining a high quality professional business environment, provides a standard furniture
package in each office. Any additional requirements excluding electronic equipment must be pre-approved by AEC, to maintain the integrity of the décor of our suite and business environment. 
  
 (n) Tenant acknowledges that AEC’s High Speed Internet
Access is not included in this lease. High Speed Internet Access, when available, requires a separate legal agreement which explains its terms and conditions. It is designed for casual use and not to be relied on to support a critical element of the
Tenant’s business. 
  
 In witness whereof, the parties,
intending to be legally bound and having authority to do so have caused this Lease to be duly executed on the year and day first written above. 
  

									
	 Lessor:
	 	 	 	 Lessee:

			
	 AMERICAN EXECUTIVE CENTERS, INC.
	 	 	 	 Duska Scientific Co.

	 	 	 	 	 	 	 Print Tenant Name

					
	By:	 	 /s/    ILLEGIBLE
	 	 	 	By:	 	 /s/    MARIE SCIOCCHETTI

	 	 	 Signature
	 	 	 	 	 	 Signature

					
	By:	 	 	 	 	 	By:	 	 Marie Sciocchetti

	 	 	 Print Signature
	 	 	 	 	 	 Print Signature

			
	 	 	 	 	 ADMIN OFFICER

	 Title
	 	 	 	 Title

  

 5 

 [AMERICAN EXECUTIVE CENTERS LETTERHEAD] 
  
 EXHIBIT B-1 
  

	1.	Private, Carpeted Office. 

  

	2.	Common Use of Reception Area, Copier Work Room, Kitchen, and Hallways. 

  

	3.	Mail and Package Receipt in your absence. 

  

	4.	Personalized Telephone Answering During Standard Business Hours: (including Answering 150 Calls Per Month, Monday through Friday Except for AEC Holidays). 

 

	5.	Complimentary Coffee and Tea throughout the Business Day. 

  

	6.	Daily Janitorial Services. 

  

	7.	24-Hour Access to Facilities and Your Office. 

  

	8.	Access to all Six (6) AEC Locations. 

  

	9.	Access to Services Listed in Exhibit B-2. 

  

	10.	Office Furniture: one executive set per office. 

 EXHIBIT B-2(1)(2) 
  
 Also available to Tenant at Reasonable Charges are the Following Services: 
  

	1.	Private Secretarial Services: 

  

			
	 •      Word Processing
	  	 •      Complete Travel Services

		
	 •      Database Management
	  	 •      Creation of Color Slides

		
	 •      Desktop Publishing
	  	 •      Telex Service

		
	 •      Spreadsheets
	  	 •      Laser Printing

		
	 •      Administrative Assistance
	  	 •      Telemarketing

  

	2.	Photocopy Facilities. 

  

	3.	Fax Transmission and Receipt. 

  

	4.	Telephone Services: 

  

			
	 •      Standard Telephone Package
	  	 •      Voicemail Box

		
	 •      Other Advanced Features
	  	 •      800 Numbers

		
	 •      Telephone Sets
	  	 •      Answering in Excess of 150 calls per Month per Office

		
	 •      Telephone Lines (Speech Paths)
	  	 •      Manual Message Taking

		
	 •      Fax or Modem Line
	  	 •      Local and Long Distance Usage

		
	 •      Directory Assistance
	  	 •      Yellow Page Advertising

		
	 •      Call Forwarding
	  	 •      Initial Installation of Telephone Services

		
	 •      Beeper Paging
	  	 •      Telephone Service Adds, Moves, Changes

  

	5.	Postage Metering. 

	

	6.	Concierge Service (Florist, Limousine Arrangements, etc.) 

	

	7.	Office Supplies. 

	

	8.	Audio-Visual Conference Room Equipment. 

	

	9.	Initial Set Up Services (Listing in Building Directory, Office Name Plate, Initial Staff Orientation Meeting, Office Preparation). 

	

	10.	UPS and Overnight Shipping Services. 

	

	11.	Repairs to Return Leased Premises to Original Condition at Move Out. 

	

	12.	Electricity for Additional Office Equipment. 

	

	13.	Conference Room Usage. 

	

	14.	Additional Furniture. 

  
  

	(1)	Complete List of B-2 Services and Prices Available Upon Request. 

	(2)	AEC may at anytime and from time to time add, delete, or make substitutions for the services described herein. 

 [AMERICAN EXECUTIVE CENTERS LETTERHEAD] 
  
 1st Addendum to Lease and Service Agreement 
 Dated November 27, 2001 
 Between American Executive Centers, Inc. 
 and Duska Scientific Co. 
  
 Current Active
Lease Components 
  

															
	 Center

	 	 Lease #

	 	 Office #

	 	 Lease Term

	 	 Lease Start

	 	 Lease Stop

	 	 Rent Start Date

	 	 Rent Amount

	 Two Bala Plaza
	 	 	 	71	 	12 months	 	12/01/2002	 	11/30/2003	 	12/01/2002	 	$1,000.00

  
 Amended Lease
Components 
  

															
	 Center

	 	 Lease #

	 	 Office #

	 	 Lease Term

	 	 Lease Start

	 	 Lease Stop

	 	 Rent Start Date

	 	 Rent Amount

	 Two Bala Plaza
	 	 	 	71	 	Month to month	 	12/01/2003	 	12/31/2003	 	12/01/2003	 	$1,100.00

  
 Other Changes: 
  

 All other terms and
conditions of the attached referenced lease apply. In witness thereof, the parties intending to be legally bound and having authority to do so have caused this Lease addendum to be duly executed on the year and day first written above. 

 

									
	 Lessee:
  

Duska Scientific Co.
	 	 	 	 Lessor:
  

American Executive Centers, Inc.

					
	By:	 	/s/    MARIE SCIOCCHETTI	 	 	 	By:	 	/s/    ILLEGIBLE
	 	 	Signature	 	 	 	 	 	Signature
					
	By:	 	MARIE SCIOCCHETTI	 	 	 	By:	 	 
	 	 	Print Signature	 	 	 	 	 	Print Signature
			
	VICE PRESIDENT 	 	 	 	 
	 	 	Title	 	 	 	 	 	Title

 [AMERICAN EXECUTIVE CENTERS LETTERHEAD] 
  
 2nd Addendum to Lease and Service Agreement 
 Dated November 27, 2001 
 Between American Executive Centers, Inc.

 and Duska Scientific Co. 
  
 Current Active Lease Components 
  

															
	 Center

	 	 Lease #

	 	 Office #

	 	 Lease Term

	 	 Lease Start

	 	 Lease Stop

	 	 Rent Start Date

	 	 Rent Amount

	 Bala Cynwyd
	 	 	 	71	 	month to month	 	12/01/2003	 	12/31/2003	 	12/01/2003	 	$1,100.00

  
 Amended Lease
Components 
  

															
	 Center

	 	 Lease #

	 	 Office #

	 	 Lease Term

	 	 Lease Start

	 	 Lease Stop

	 	 Rent Start Date

	 	 Rent Amount

	 Bala Cynwyd
	 	 	 	17	 	12 month	 	11/01/2004	 	10/31/2005	 	11/01/2004	 	$1,100.00
	 Bala Cynwyd
	 	 	 	43	 	12 month	 	11/01/2004	 	10/31/2005	 	10/12/2004	 	$1,100.00

  
 Other Changes: 
  

 All other terms and
conditions of the attached referenced lease apply. In witness thereof, the parties intending to be legally bound and having authority to do so have caused this Lease addendum to be duly executed on the year and day first written above. 

 

									
	 Lessee:
  

Duska Scientific Co.
	 	 	 	 Lessor:
  

American Executive Centers, Inc.

					
	By:	 	/s/    A. PELLEG	 	 	 	By:	 	 
	 	 	Signature	 	 	 	 	 	Signature
					
	By:	 	/s/    AMIR PELLEG	 	 	 	By:	 	 
	 	 	Print Signature	 	 	 	 	 	Print Signature
			
	PRESIDENT 	 	 	 	 
	 	 	Title	 	 	 	 	 	Title

 [AMERICAN EXECUTIVE CENTERS LETTERHEAD] 
 OPENING CHARGES 
  

			
		
	Center:	 	Bala Cynwyd
		
	Client Name:	 	Duska Scientific Co.
		
	Billing Address:	 	Two Bala Plaza
		
	 	 	Suite 300
		
	 	 	Bala Cynwyd, PA 19004

  

  

								
	 	  	 	  	 	  	AMOUNT

	 MONTHLY CHARGES
	  	 	  	 	  	 	 
	 Office Rent
	  	 	  	 	  	$	1,100.00
	 	  	
	  	 	  	
	

	 Additional Furniture
	  	 	  	 	  	$	 —  
	 	  	
	  	 	  	
	

	 Communication Package
	  	1 dual line phone set	  	 	  	$	95.00
	 	  	
	  	 	  	
	

	 Data Lines
	  	1 fax and 1 T-1	  	 	  	$	40.00
	 	  	
	  	 	  	
	

	 Sales Tax
	  	 	  	        6%        	  	$	5.70
	 	  	 	  	
	  	
	

	 Total Monthly Charges
	  	 	  	 	  	$	1,240.70
	 	  	 	  	 	  	
	

  

  

								
	 	  	 	  	 	  	AMOUNT

	 ONE TIME CHARGES
	  	 	  	 	  	 	 
	 Set Up Fee (Directory listing, office nameplate, initial staff orientation meeting, office preparation)
	  	 	  	 	  	$	150.00
	 	  	 	  	 	  	
	

	 Refundable security and services deposit (1.5 x office rent)
	  	 	  	 	  	$	1,650.00
	 	  	 	  	 	  	
	

	 Telephone Installation
	  	 	  	 	  	$	160.00
	 	  	 	  	 	  	
	

	 Data Line Installation
	  	 	  	 	  	$	160.00
	 	  	 	  	 	  	
	

	 Other
	  	 	  	 	  	$	 —  
	 	  	
	  	 	  	
	

	 Sales Tax
	  	 	  	        6%        	  	 	 
	 	  	 	  	
	  	
	

	 Total of One Time Charges
	  	 	  	 	  	$	2,139.20
	 	  	 	  	 	  	
	

	 GRAND TOTAL (Check Amount)
	  	 	  	 	  	$	3,379.90
	 	  	 	  	 	  	
	

  

 FOR AMERICAN EXECUTIVE CENTERS USE ONLY 
  

							
	 Billing Start Date (MMDDYY):
	  	11/01/2004	  	Lease Start Month/Stop Month:	  	11/04-10/05
				
	 Salesperson:
	  	Sally Conchewski	  	Office Number	  	43
		
	 Referral Source:License and Assignment Agreement

 EXHIBIT 10.10 
  
 LICENSE AND ASSIGNMENT AGREEMENT 
  
 This License and Assignment Agreement (this “Agreement”) is made as of November 15, 1999, by and between Dr. Amir
Pelleg and Dr. Edward S. Schulman (the “Inventors”) and Duska Scientific Co., a Delaware corporation (“Duska”), with its principal offices at 24 Dartmouth Lane, Haverford, PA 19041-1020. 
  
 BACKGROUND 
  
 A. Inventors are the sole owners of certain intellectual property developed
by Dr. Amir Pelleg and Dr. Edward Schulman relating to diagnostic and therapeutic uses of adenosine 5’-triphosphate (ATP), as described more fully in Attachment 1 to this Agreement. 
  
 B. Inventors are the sole owners of the United States letters patent and/or applications therefor listed in Attachment 1 to
this Agreement and foreign counterparts relating to the intellectual property developed by the Inventors as described above. 
  
 C. Duska is a start-up company that desires to obtain an assignment of all right, title and interest in and to the invention of Dr. Pelleg entitled
“A process for regulating vagal tone” (the “Pelleg Invention”) and the worldwide, exclusive right and license to use, market and exploit the invention of the Inventors entitled “Modulation of human mast cell activation”
(the “Pelleg & Schulman Invention”). 
  
 NOW,
THEREFORE, in consideration of the promises and covenants contained in this Agreement and intending to be legally bound, the parties agree as follows: 
  
 ARTICLE 1 
  
 ASSIGNMENT AND LICENSE GRANT 
  
 1.1 Assignment and License Grant. The Inventors hereby assign, transfer and convey to Duska, and its successors and assigns, all of their right, title and interest in and to the Pelleg Invention and any related
intellectual property owned by them, including without limitation, U.S. Patent No. 5,874,420 and filed as patent application PCT/US96/20255 and any other related patents and patent applications or subsequent improvements thereto, whether United
States or foreign, which at any time may be granted, including any and all renewals, reissues, divisionals and prolongations thereof or based thereon, including the right to sue for and recover all damages for past infringements (collectively, the
“Pelleg Invention Assigned Property”). The Pelleg Invention Assigned Property is assigned by the Inventors to Duska (the “Assignment”) free and clear of all liens, claims and encumbrances. The Inventors hereby grant to Duska for
the term of this Agreement an exclusive, world-wide license (the “License”) to the 

  

 -1- 

 
Pelleg & Schulman Invention and any related intellectual property owned by them, including without limitation, U.S. Patent Application 60/041,461 and
patent application PCT/US98/05922 and any patents issued based on the foregoing applications and any subsequent improvements thereto (collectively, the “Pelleg & Schulman Invention Licensed Property”). The License includes the right to
develop, make, have made, use, import, sell and offer for sale products based on the Pelleg & Schulman Invention Property and to sublicense third parties with respect to the foregoing. 
  
 ARTICLE 2 
  
 FEES AND ROYALTIES 
  
 2.1 Assignment License Initiation Fee and Royalties. 
  
 2.1.1 In consideration of the Assignment and License, Duska (promptly after the execution of this Agreement) shall issue to Dr. Pelleg and
Dr. Schulman such number of shares (the “Purchased Shares”) of Duska Common Stock, no par value per share, (“Common Stock”) as will cause each of them to individually own (irrespective of shares previously issued to Dr. Pelleg,
Dr. Manfred Mosk or Sanford Hillsberg) shares of Common Stock representing 2% of the outstanding shares of the capital stock of Duska on a fully diluted basis immediately following such issuance, assuming the exercise, conversion and/or exchange of
all outstanding securities of Duska for or into shares of capital stock, all on the terms and conditions as set forth in the stock purchase agreements between Duska and each of the Inventors (“Stock Purchase Agreements”), a copy of which
is attached as Attachment 2. 
  
 2.1.2 In further
consideration of the Assignment and License, Duska shall pay to each individual Inventor a royalty equal to 2% of the Net Sales (as hereinafter defined) of products sold by Duska based on the Pelleg Invention Assigned Property or the Pelleg &
Schulman Invention Licensed Property. 
  
 2.1.3
Duska shall pay to each individual Inventor 2% of any sublicense initiation fee or other similar payment paid by each sublicensee of Duska under this Agreement. Any non-cash consideration received by the Duska from such sublicensees shall be valued
at its fair market value as of the date of receipt. 
  
 2.1.4 “Net Sales” means the consideration or fair market value attributable to the sale of any product, less qualifying costs directly attributable to such sale and actually identified on the invoice and borne by Duska or its
sublicensee. Such qualifying costs shall include without limitation the following: 
  
 (i) discounts, in amounts customary in the trade, for quantity purchases, for prompt payments and for wholesalers and distributors;

  

 -2- 

 (ii) credits or refunds, not exceeding the original invoice amount, for claims or
returns; 
  
 (iii) prepaid outbound
transportation expenses and transportation insurance premiums; and 
  
 (iv) sales and use taxes and other fees imposed by a governmental agency. 
  
 2.2 Diligence. 
  
 2.2.1 Duska shall use its commercially reasonable efforts to develop for commercial use and to market products based on the Pelleg
Invention Assigned Property and the Pelleg & Schulman Invention Licensed Property. 
  
 2.2.2 Duska shall provide to the Inventors under a confidentiality agreement on each anniversary of the effective date of this Agreement,
written progress reports, setting forth: (a) the progress of the development, evaluation, testing and commercialization of each product based on the Pelleg Invention Assigned Property or the Pelleg & Schulman Invention Property; and (b)
Duska’s strategic alliances with industry counterparts. 
  
 2.3 Royalty Reports and Records. 
  
 2.3.1 Duska shall deliver to the Inventors within forty-five (45) days (or 60 days if Duska has entered into a sublicense) after the end of each semi-annual calendar period a written report, certified by the President or Chief Financial
Officer of Duska, setting forth the calculation of the royalties due to the Inventors for such calendar quarter. 
  
 2.3.2 Duska shall pay the royalties due under Section 3.1 to the Inventors within forty-five (45) days (or 60 days if Duska has entered
into a sublicense) following the last day of the semi-annual calendar period in which the royalties accrue. 
  
 ARTICLE 3 
  
 TERM AND TERMINATION 
  
 3.1 Term. This
Agreement, unless sooner terminated as provided in this Agreement, terminates upon the expiration of the last to expire or become abandoned of the patents included in either the Pelleg Invention Assigned Property or the Pelleg & Schulman
Invention Licensed Property. Notwithstanding any provision in this Agreement to the contrary, Duska (and any sublicensee) shall have no obligation to pay any royalties to the Inventors with respect to Net Sales of products made in any country in
which there are no patents or patent applications covering such products comprising part 

  

 -3- 

 
of the Pelleg Invention Assigned Property or the Pelleg & Schulman Invention Licensed Property currently in effect at the time of such sales. 

 
 3.2 Termination by Duska. Duska may, upon sixty (60) days written
notice to the Inventors, terminate this Agreement without any liability to the Inventors except as provided for elsewhere in this Agreement. 
  
 3.3 Termination by Inventors. The Inventors may terminate this Agreement upon written notice to Duska signed by both Inventors if any of the
following events of default (“Default”) occur: 
  
 3.3.1 Duska or any sublicensee is more than sixty (60) days late in paying to the Inventors any royalties due under this Agreement and Duska thereafter does not within five business days pay the Inventors in full upon
written demand; or 
  
 3.3.2 Duska breaches a
material provision of this Agreement (other than a breach solely under Section 3.3.1) and does not cure the breach within 60 days after written notice of the breach. 
  
 ARTICLE 4 
  
 PATENT MAINTENANCE 
  
 Duska will retain control over, and will diligently prosecute and maintain at its sole expense the patents and patent applications included in the Pelleg Invention
Assigned Property and the Pelleg & Schulman Invention Licensed Property. Duska will consult with the Inventors prior to the filing of any patent application in any jurisdiction, but decisions as to the filing of patent applications or
maintenance of patents in any jurisdiction will be made by Duska at its sole discretion. Duska will furnish to the Inventors copies of all documents relevant to any such prosecution and maintenance. Duska will have the right at its sole discretion
to transfer the prosecution and maintenance of patents and patent applications to any experienced patent attorney of Duska’s choosing. 
  
 ARTICLE 5 
  
 INFRINGEMENT AND LITIGATION 
  
 5.1 Notification of Infringement. Duska and the Inventors will promptly notify each other promptly of any infringement of any patents and patent applications included in the Pelleg Invention Assigned Property
and the Pelleg & Schulman Invention Licensed Property which may come to their attention. Duska and the Inventors will consult one another in a timely manner concerning any appropriate response to the infringement. 
  

 -4- 

 5.2 Prosecution by Duska. Duska may prosecute any infringement described in Section 5.1 at its own
expense. Duska shall not settle or compromise any such suit in a manner that imposes any obligations on the Inventors, without their prior written permission, which will not be unreasonably withheld. Financial recoveries from any such litigation
will first be applied to reimburse Duska for its litigation expenditures, with additional recoveries being paid to Duska, subject to any royalty due the Inventors based on the provisions of Article 2. 
  
 5.3 Prosecution by Inventors. If Duska fails to prosecute any
infringement, then the Inventors may prosecute such infringement at their own expense. In such event, financial recoveries will first go to reimburse the Inventors for their litigation expense and then to Duska, subject to any royalties due to the
Inventors pursuant to Article 2. 
  
 5.4 Cooperation. In
any action to enforce any of the patent rights, either party, at the request and expense of the other party shall cooperate promptly and to the fullest extent reasonably possible. 
  
 ARTICLE 6 
  
 REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION 
  
 6.1 Representations and Warranties. The Inventors represent and warrant that they are the sole owners of the Pelleg Invention Assigned Property and
the Pelleg & Schulman Invention Licensed Property and that they have the authority to enter into and perform this Agreement. To the best knowledge of the Inventors, none of the Pelleg Invention Assigned Property or the Pelleg & Schulman
Invention Licensed Property infringes any patent, trade secret or other property or proprietary rights of any third party. The Inventors hereby acknowledge that (i) Duska and its officers and directors have made no representations to them concerning
the timing or probabilities of obtaining any governmental marketing approvals for any products covered by this Agreement or the potential markets for these products; (ii) there is no assurance that any products will be successfully developed by
Duska or governmental marketing approvals will be obtained or that commercially viable markets for such products will exist, either with respect to the products covered by this Agreement or any other products as to which Duska may now or in the
future have developmental rights; and (iii) development of the products covered by this agreement will require expenditures substantially in excess of Duska’s current financial resources and that there is no assurance that Duska will be able to
generate sufficient capital to fund development of any of the products covered by the agreement. The Inventors also represent that they have been advised by their own counsel (which is independent of Troy & Gould or any other counsel
representing Duska) in connection with this agreement. 
  
 6.2
Indemnification. The Inventors will indemnify, defend and hold Duska and Duska’s officers, directors, shareholders, agents and employees harmless from and 

  

 -5- 

 
against any and all liability, loss, damage, action, claim or expense incurred by any of the foregoing parties excluding any consequential damages or lost
opportunity profits or costs) resulting from any breach of the Inventors’ representations, warranties or covenants under this Agreement, including without limitation any claims asserted by MCP Hahnemann University relating in any manner to the
Pelleg Invention Assigned Property or the Pelleg & Schulman Invention Licensed Property. Duska will indemnify, defend and hold harmless to the extent of Duska’s assets (including any insurance policies) the Inventors, from and against any
and all liability, loss, damage, action, claim or expense suffered or incurred by them (including reasonable attorneys’ fees and expenses but excluding any consequential damages or lost opportunity profits or costs) that results from any breach
by Duska of its covenants under this Agreement. 
  
 ARTICLE 7

  
 ADDITIONAL PROVISIONS 
  
 7.1 No Agency. Nothing in this Agreement shall be deemed to establish
a relationship of principal and agent between the Inventors and Duska or its sublicensees, nor any of their agents or employees for any purpose whatsoever, nor shall this Agreement be construed as creating any other form of legal association or
arrangement which would impose liability upon one party for the act or failure to act of the other party. 
  
 7.2 Assignment. Duska and any sublicensees are permitted to assign this Agreement or any part of it, either directly or by merger or other
operation of law. 
  
 7.3 No Waiver. No waiver of any
breach or condition of this Agreement shall be deemed to be a waiver of any other subsequent breach or condition, whether of like or different nature. 
  
 7.4 Notices. All notices, requests, consents and other communications hereunder shall be in writing and shall be delivered in person or sent
overnight delivery by Federal Express or by certified or registered mail, return receipt requested, or telexed in the case of non-U.S. residents, and shall be deemed to have been given when hand delivered, one (1) day after mailing when mailed by
overnight courier (e.g. Federal Express or Express Mail) or five (5) days after mailing by registered or certified mail, as follows (provided that notice of change of address shall be deemed given only when received): 
  
 If to the Inventors: 
  

			
	 Dr. Amir Pelleg
	  	 Dr. Edward S. Schulman

	 24 Dartmouth Lane
	  	 911 Bonapart Court

	 Haverford, PA 19041-1020
	  	 Philadelphia, PA 19107

  

 -6- 

 If to Duska: 
  
 Duska Scientific Co. 
 c/o Amir Pelleg

 24 Dartmouth Lane 
 Haverford,
PA 19041-1021 
  
 With a required copy to: 
  
 Dale Short, Esq. 
 Troy & Gould 
 Suite 1600 
 1801 Century Park East 
 Los Angeles, CA 90067

  
 or to such other names or addresses as Duska or the
Inventors, as the case may be, shall designate by notice to each other person entitled to receive notices in the manner specified in this Section 7.4. 
  
 7.5 Governing Law and Jurisdiction. This Agreement shall be construed and governed in accordance with the laws of the Commonwealth of Pennsylvania,
without giving effect to conflict of law provisions of any jurisdiction. 
  
 7.6 Binding Nature of Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns. 
  
 7.7 Integration and Amendment. This Agreement and the Stock Purchase
Agreements embody the entire agreement and understanding among the parties hereto and thereto and supersede all prior agreements and understandings relating to the subject matter hereof or thereof. This Agreement may not be changed, modified,
extended or terminated except by written amendment executed by an authorized representative of each party. 
  
 7.8 Severability. If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, then such illegality, invalidity or
unenforceability shall attach only to such provision and shall not in any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or
unenforceable provision were not contained herein. 
  
 7.9
Force Majeure. Any delay or failure to perform any part of this Agreement arising from causes beyond the reasonable control of the party concerned shall not be deemed to be a default under this Agreement. Causes beyond the reasonable control
of a party shall include, without limitation, acts of God, Labor disturbances or 

  

 -7- 

 
labor disputes of any kind, civil disorders or commotions, accidents, failure of any governmental approval required for full performance, acts of aggression,
energy or other conservation measures imposed by law or regulation, explosions, failure of utilities, mechanical breakdowns, material shortages, disease, year 2000 computer-related disruptions or other such occurrences. 
  
 IN WITNESS WHEREOF, the parties, intending to be legally bound, have caused
this Agreement to be executed by their duly authorized representatives. 
  

									
	 /s/ A. Pelleg
	 	 	 	 DUSKA SCIENTIFIC CO.

	 DR. AMIR PELLEG
	 	 	 	 	 	 
					
	 	 	 	 	 	 	 By:
	 	 /s/ M. Mosk

	 /s/ Edward S. Schulman
	 	 	 	Name:	 	 Manfred Mosk

	 DR. EDWARD S. SCHULMAN
	 	 	 	 Title:
	 	 Interim President

	 	 	 	 	 	 	 Date:
	 	 11/15/1999

  

 -8- 

  
 Attachment 1 
  
 U.S. patent #5,874,420. “A Process for regulating vagal tone” and corresponding
international patent application #PCT/US96/20255. 
  
 International Patent
Application PCT/US98/05922, filed on March 24, 1998. “Modulation of Human Mast Cell Activation. 
  

 -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]