Document:

Exhibit
      10.2

     

    Portions
      herein identified by [***] have been omitted pursuant to a request for
      confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934.
      A complete copy of this document has been filed separately with the Securities
      and Exchange Commission.

     

     

    LICENSE
      AGREEMENT

    

    

    This
      License Agreement is entered into as of the 3rd day of November, 2006
      (“Effective Date”), by and among Baxter Healthcare S.A. a Swiss corporation
      having offices at Hertistrasse
      2, CH-8304, Wallisellen
      Switzerland and Baxter International, Inc. a Delaware Corporation, having
      offices at One Baxter Parkway, Deerfield, IL 60015 (collectively, “Baxter”) on
      the one hand, and Ziopharm Oncology, Inc. a Delaware
      corporation having offices at 197
      Eighth Street, Suite 300, Charlestown, MA 02129
      (“Licensee”) on the other hand.

    

    WHEREAS,
      Baxter possesses certain intellectual property rights related to the
      use
      of nanosuspension technology in the manufacture of a suspension formulation
      of
      Indibulin and compositions thereof (“Licensed
      Patents,” as further defined below);

     

    WHEREAS,
      Licensee is engaged in the pharmaceutical business and, more particularly,
      in
      oncology;

     

    WHEREAS,
      Baxter and Licensee are, concurrently with this Agreement, entering into a
      separate Asset Purchase Agreement providing
      for, among other things,
      the
      transfer of certain assets
      relative
      to the Indibulin molecule and associated intellectual property (the “Asset
      Purchase Agreement”);

     

    WHEREAS,
      Licensee desires to obtain certain rights in and to the Licensed
      Patents;

     

    WHEREAS,
      Baxter has agreed to license to Licensee certain rights in and to the Licensed
      Patents;

    

    NOW,
      THEREFORE, in consideration of the promises
      and the
      mutual covenants contained
      in this Agreement, and for other good and valuable consideration, the receipt
      and sufficiency of which are hereby acknowledged, the Parties
      agree as
      follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      1

    DEFINITIONS

    

    
      
        	1.1	
                Defined
                  Terms.
                  As used in this Agreement, the following terms shall have the following
                  meanings:

              

      

    

    

    An
      “Affiliate”
of
      a
      subject person or entity shall mean any corporation, firm, business organization
      or legal entity that directly
      or indirectly through one or more intermediaries controls,
      is controlled by, or is under common control with the subject person or entity.
      As used in this definition, “control” (including, with its correlative meanings,
“controlled by” and “under common control with”) means possession, directly or
      indirectly, of power to direct or cause the direction of management and policies
      (whether through ownership of securities, partnership or other ownership
      interests, by contract or otherwise).

    

    “Asset
      Purchase Agreement”
shall
      have the meaning ascribed in preamble of this Agreement.

    

    “Assumed
      Patent”
shall
      have the meaning set forth in Section
      5.1(a)(ii).

    

    “Commercialize”
shall
      mean the sale of a Licensed Product which has received Marketing
      Approval.

    

    “Composite
      Product”
shall
      mean a product combination encompassing one or more Licensed Products and one
      or
      more separate products, wherein the Composite Product is sold as a complete
      package for purposes of selling the one or more Licensed Products. 

    

    “CTA”
shall
      mean the European
      EMEA
      equivalent of IND.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “EMEA”
means
      European Agency for the Evaluation of Medicinal Products, or any successor
      agency thereto.

    

    “FDA”
shall
      mean the United States Food
      and
      Drug Administration.

     

    “Governmental Authority”
means
      any United States federal, state or local or any foreign government,
      governmental, regulatory or administrative authority, agency or commission
      or
      any court, tribunal or arbitral body. 

    

    “IND”
shall
      mean an investigational new drug application submitted to the FDA.

    “Indibulin-related Nanosuspension”
shall
      mean a compound as claimed in claim 1 of U.S. Patent Application No. 11/266,518,
      filed on November 3, 2005, formulated as particles and, optionally, suspended
      in
      a composition.

    

    “Intangible
      Property Rights”
shall
      mean intangible property rights (other than the Licensed Patents) to the extent
      that such intangible property rights relate to Indibulin-related Nanosuspension,
      whether or not patentable including, but not limited to, inventions,
      discoveries, trade secrets, technical information, know-how, copyrights and
      other confidential business information.

    

    “Licensed
      Patents” shall
      mean all shall mean all U.S. and foreign patents, provisional and
      non-provisional patent applications and invention records listed on Exhibit
      A
      and (i)
      any continuations,
      continuations-in-part, divisionals and
      reissue patent applications and resulting patents, derived from such prior
      filed
      patents and patent applications, and any foreign counterparts and any issued
      patents thereof and (ii) any patent applications, filed patents and any
continuations,
      continuations-in-part, divisionals
      and
      reissue patent applications and resulting patents and any foreign counterparts
      and any issued patents thereof embraced by the disclosures in such invention
      records. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Licensed
      Product”
shall
      mean an
      Indibulin-related Nanosuspension,
      the
      use, manufacture, sale, offer for sale or importation of which falls within
      the
      scope of a Valid Claim.

    

    “Management”
shall
      have the meaning set forth in Section
      5.1(a)(i).

    

    “Marketing
      Approval”
shall
      mean regulatory
      approval
      of the
      marketing of a Licensed Product by the FDA or the EMEA.

    

    “Net
      Sales”
shall
      mean the total amount invoiced in
      U.S.
      dollars (or, if in another currency, as converted by Licensee
      in
      accordance with Section 3.7 by
      Licensee or its subsidiaries, Affiliates or Sublicensees for
      the
      sale of any Licensed Product after
      deducting the following costs, provided and to the extent such costs are
      attributable to such sale of the Licensed Product in accordance with U.S.
      generally accepted accounting principles as consistently applied by Licensee
      and
      are actually borne by or on behalf of Licensee or its subsidiaries, Affiliates
      or Sublicensees: (i) invoiced freight, shipping and shipping insurance charges,
      (ii) discounts allowed and taken, in amounts customary in the trade, (iii)
      taxes, including sales, use, turnover, excise, import and other taxes or duties,
      separately billed or invoiced and borne by or on behalf of Licensee or its
      subsidiaries, Affiliates or Sublicensees, imposed by a Governmental Authority
      on
      the production, sale, use or transfer of the Licensed Product, (iv) amounts
      repaid or credited by reason of rejection or return of any previously sold
      Licensed Products and uncollectible portions of invoiced amounts with respect
      to
      any previously sold Licensed Products, and (v) rebates, chargebacks, retroactive
      price reductions, allowances and fees paid or credited to customers,
      wholesalers, distributors, third party payors, governmental agencies,
      administrators and contractees with respect to Licensed Products
      sold.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      a
      Licensed Product is
      sold
      as
      part of
      a Composite Product, then Net Sales for such Composite Product will be adjusted
      by
      multiplying (x)
      actual
      Net Sales of the Composite Product for
      the
      calendar quarter in the country in which the Composite Product is being sold
      by
      (y) the
      fraction A/(A+B) where A is the average
      invoice
      price of
      the Licensed Product
      in such
      country during such period,
      if sold
      separately (i.e., without one or more products), and B is the average
      invoice
      price of the other products in the Composite Product
      in such
      country during such period,
      if sold
      separately.
      If in a
      given country
      A and/or
      B are not sold separately, the
      related value of the Licensed Product and the other products in the Composite
      Product shall be determined based on
      a good
      faith estimate by Licensee
      based
      upon
      the respective fair
      market
      values
      of the Licensed Product as if it were sold separately and the other product(s)
      as if they were sold separately, which good faith estimate shall be subject
      to
      approval by Baxter, which approval shall not be unreasonably withheld. In the
      event the Parties cannot agree on a fair market value of the Licensed Product
      relative to Composite Product sales, upon the request of any one of the Parties,
      the Parties shall submit the valuation matter to a mutually, agreed to
      independent consultant. The Parties shall accept the fair market value as
      determined by the independent consultant. 

    

    No
      sales
      shall result from any transfer between Licensee or any of its subsidiaries,
      Affiliates or Sublicensees for resale, but shall result from the resale by
      the
      subsidiary, Affiliate or Sublicensee.

    

    “Party”
shall
      mean either Baxter or Licensee, or both, as the context dictates.

    

     “Sublicensee”
shall
      mean a third party other than an Affiliate who has received a sublicense from
      Licensee or Licensee’s sublicensees pursuant to Section
      2.3.

    

    “Term”
shall
      have the meaning set forth in Section
      10.1.

    

    “Territory”
shall
      mean the entire world.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Valid
      Claim”
means
      a
      claim of an issued and unexpired patent within the Licensed Patents that has
      not
      been (i) held permanently revoked, unenforceable, unpatentable or invalid by
      a
      decision of a court or governmental body of competent jurisdiction, unappealable
      or unappealed within the time allowed for appeal, (ii) rendered
      unenforceable through written disclaimer (iii) lapsed or abandoned for
      failure to pay maintenance fees with no further remedy available to reinstate,
      or (iv) lost through an interference proceeding.

    

    ARTICLE
      2

    LICENSE

    

    
      
        	2.1	
                Grant.
                  Subject to the conditions hereunder,

              

      

    

     

    
      	 	
              (a)

            	
              Baxter
                hereby grants to Licensee a world-wide, royalty bearing (pursuant
                to
                Article
                3)
                exclusive right and license, with the right to grant sublicenses,
                under
                Licensed Patents to use, market, sell,
                offer to sell and
                import (except
                where a product is manufactured in a country where a Valid Claim
                relative
                to such manufacture does not exist, and such product is imported
                in a
                country where a Valid Claim relative to the manufacture does exist)
                Licensed
                Products
                in
                the Territory; and

            

    

     

    
      	 	
              (b)

            	
              Baxter
                hereby grants to Licensee a world-wide, non-royalty bearing exclusive
                right and license, with the right to grant sublicenses, under the
                Intangible Property Rights to use, market, sell, offer to sell and
                import
                Licensed Products in the Territory.

            

    

     

    Notwithstanding
      this Section
      2.1,
      Baxter
      does not and shall not license to Licensee hereunder the right and license
      under
      the Licensed Patents or the Intangible Property Rights to make or have made
      Licensed Products or Indibulin-related Nanosuspension in the
      Territory.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	2.2	
                Limitation
                  on License Grants.
                  Except for the license expressly granted pursuant to Section
                  2.1,
                  all right, title and interest in all Licensed Patents, and other
                  rights
                  owned by Baxter or in which Baxter has an interest shall remain
                  the sole
                  property of Baxter, and nothing herein shall be construed to grant
                  or
                  establish any other rights to the contrary.

              

      

    

     

    
      
        	2.3	
                Sublicenses
                  by Licensee.
                  Licensee shall notify
                  Baxter of any sublicense hereunder
                  and
                  the identity of each Sublicensee,
                  and provide Baxter with a copy of the executed agreement involving
                  such
                  sublicense
                  with such redactions of confidential terms as Licensee shall determine
                  to
                  be appropriate,
                  all within thirty (30) days of execution of the Agreement.
                  Sublicenses shall not contain any provision contrary to, or inconsistent
                  with, this Agreement and shall provide that all obligations of
                  Licensee
                  hereunder shall be binding upon each Sublicensee
                  as
                  if the Sublicensee
                  were a party to this Agreement. Additionally, Licensee shall be
                  responsible for and liable to Baxter for
                  Sublicensee’s
                  compliance with the provisions hereof.
                  

              

      

    

     

    
      	2.4	
              Rights
                in Bankruptcy.
                All rights and licenses granted under or pursuant to this Agreement
                by
                Baxter are, and will otherwise be deemed to be, for purposes of Section
                365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual
                property” as defined under Section 101 of the U.S. Bankruptcy
                Code.

            

    

     

    ARTICLE
      3

     

    PAYMENTS

     

    
      	
              3.1

            	
              Milestone
                Fees.
                As part of the consideration for the rights granted by Baxter to
                Licensee hereunder,
                Licensee shall pay to Baxter five hundred thousand United States
                dollars
                ($500,000) within thirty (30) days of the first effectiveness of
                an IND
                submitted to the FDA or a CTA submitted to the EMEA permitting Licensee
                to
                initiate human clinical trials of an Indibulin-related Nanosuspension
                in
                the United States or Europe, whichever comes
                first.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.2

            	
              License
                Royalties.
                As part of the consideration for the rights granted by Baxter to
                Licensee,
                Licensee shall pay,
                or cause to be paid to Baxter,
                the following royalties
                based on Net Sales of Licensed Products:

            

    

     

    
      	a)  	
              [****]
                percent ([****]%) of worldwide calendar year annual Net Sales of
                less than
                [**********] Dollars
                ($[**********]);

            

    

     

    
      	b)  	
              [****]
                percent ([****]%) of worldwide calendar year annual Net Sales from
                [**********] Dollars ($[**********]) up to [**********] Dollars
                ($[**********]); and

            

    

     

    
      	c)  	
              [****]
                percent ([****]%) of worldwide calendar year annual Net Sales in
                excess of
                [**********] U.S. Dollars
                ($[**********]).

            

    

     

    With
      respect to each Licensed Product, royalties will be payable on a
      country-by-country basis, so long as the importing, using or selling of the
      Licensed Product was covered by a Valid Claim in the country in which such
      Licensed Product was imported, used or sold.

    

    
      	
              3.3

            	
              Reports,
                Audit and Payment Schedule. Licensee
                shall keep and maintain detailed records of all sales of Licensed
                Product
                worldwide; and 

            

    

     

    
      	a)  	
              Licensee
                shall make quarterly payments to Baxter within forty-five
                (45)
                days of the close of each calendar quarter (March 31, June 30, September
                30 and December 31) based
                on Net
                Sales in
                such quarter, and shall additionally provide,
                together with such payment,
                a
                sales report detailing Net
                Sales of
                Licensed Products sold per country and the royalty calculation, pursuant
                to Section
                3.2;
                and

            

    

    

    
      	b)  	
              Baxter
                shall have the right annually, at Baxter’s expense, to audit
                Licensee’s
                records, or Licensee’s subsidiaries, Affiliates or Sublicensees in order
                to verify the calculation of Net Sales of Licensed Products. Licensee
                shall reasonably cooperate with Baxter to provide Licensee access
                to such
                records; provided that:

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (i)

            	
              Such
                audit shall be conducted by Baxter’s independent
                auditors;

            

    

    

    
      	 	
              (ii)

            	
              Such
                audit shall be conducted during normal business hours, upon reasonable
                advance notice and in a manner that does not cause unreasonable disruption
                to the conduct of the business of Licensee, its subsidiaries, Affiliates
                or Sublicensees;

            

    

    

    
      	
            	(iii)	
              Baxter
                shall treat all information reviewed or learned of in the course
                of such
                audit in accordance with Section
                11.13;
                and

            

    

     

    
      	 	
              (iv)

            	
              prior
                to such audit, Baxter shall cause its auditors to enter into a reasonably
                acceptable confidentiality agreement with Licensee obligating such
                auditors to maintain confidentiality of all financial
                statements.

            

    

    

    
      	
              3.4

            	
              No
                Multiple Payments.
                For payments pursuant to Section
                3.2,
                only one payment shall be paid for each Licensed Product sold, regardless
                of the number of Licensed Patents or claims thereof that cover such
                Licensed Product. Additionally, in the event Licensee has paid Baxter
                a
                sales-based
                contingent payment
                on
                the Net Sales of a unit of Licensed Product pursuant to Section
                2.4
                of
                the Asset Purchase Agreement, Licensee shall not pay Baxter a royalty,
                pursuant to Section
                3.2
                of
                this Agreement, on the Net Sales of that unit of Licensed Product.
                

            

    

     

    
      	
              3.5

            	
              Royalty
                Reduction.
                In the event Licensee or its subsidiaries, Affiliates or Sublicensees
                licenses third party patent rights in order to have freedom to make,
                have
                made or sell Licensed Product without infringing such patent rights,
                Licensee shall be allowed to deduct from the royalties due pursuant
                to
                Section
                3.2,
                fifty percent (50%) of any royalties or any other license fees paid
                or
                incurred in connection with such license up to a maximum of fifty
                percent
                (50%) of the royalties due pursuant to Section 3.2 (with any amount
                not
                deducted due to such deduction limitation carried forward to subsequent
                calendar quarters for deduction, but subject to the fifty percent
                (50%)
                maximum deduction limitation provided by this Section
                3.5
                for such subsequent calendar quarters).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.6

            	
              Royalty
                Credits.
                Licensee shall be allowed to deduct from the royalty payments due
                to
                Baxter under Section
                3.2
                any payments made by it to Baxter pursuant to Section 2.3
                of
                the Asset Purchase Agreement.

            

    

     

    
      	
              3.7

            	
              Currency
                Exchange.
                In the event sales are invoiced in a currency other than United States
                dollars, Net Sales shall be calculated in the following manner: cumulative
                non-United States dollars sales invoiced by month shall be converted
                to
                United States dollars by multiplying or dividing, whichever is applicable,
                this amount by the simple average of the daily NY close rates for
                each day
                in the month as published by Bloomberg, Reuters or some other generally
                accepted source for publishing NY close foreign currency rates. The
                rate
                source shall be reviewed with Baxter prior to commencing payment
                of
                royalty payments to Baxter.

            

    

     

    
      	
              3.8

            	
              Withholding
                Taxes.
                Licensee may withhold taxes in the event that revenue authorities
                in any
                country require the withholding of taxes on amounts paid hereunder
                to
                Baxter. Licensee will deduct such taxes from such payment and such
                taxes
                will be paid by Licensee to the proper taxing authority on behalf
                of
                Baxter. In the event such taxing authority routinely provides a tax
                receipt upon payment, Licensee will procure such tax receipt and
                forward
                it to Baxter. Licensee agrees to assist Baxter in claiming exemption
                from
                such deductions or withholdings under any applicable double taxation
                or
                similar agreement or treaty. 

            

    

     

    
      	
              3.9

            	
              Late
                Penalty.
                Milestone fees and royalties not received within the required timeframe
                shall bear interest at the lesser of (a) the maximum rate permitted
                by
                law, and (b) 1.0%
                per month on the outstanding balance compounded monthly. All applicable
                sums due herein shall be paid in U.S. Dollars. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      4

    SUPPLY
      OF LICENSED PRODUCT

    

    
      	4.1	
              Baxter
                to Supply.
                In the event that Licensee desires the supply of Licensed Products
                or
                Indibulin-related Nanosuspension, Baxter and Licensee shall negotiate
                and
                enter into a separate supply agreement governing the developmental
                and
                commercial supply by Baxter of Licensed Product or Indibulin-related
                Nanosuspension to Licensee. 

            

    

    

    ARTICLE
      5

    PATENT
      PROSECUTION, ENFORCEMENT AND INFRINGEMENT

    

    
      	5.1	
              Prosecution
                and Maintenance of Patents.
                

            

    

     

     

    
      	
            	a)	
              Patents.
                

            

    

     

    (i) Baxter
      to Manage Patents.
      Baxter
      shall be
      responsible for,
      and use
      reasonable discretion in,
      the
      filing, prosecution and maintenance (“Management”) of Licensed Patents.
At
      a
      minimum, Baxter shall file,
      prosecute and maintain Licensed Patents
      in the
      U.S., Germany, France, United Kingdom, Belgium, Netherlands, Spain, Italy,
      Australia, China, Mexico, Korea, Canada, Brazil and Japan. Each
      Party agrees to cooperate with the other with respect to the preparation,
      filing, prosecution and maintenance of patents and patent applications pursuant
      to this Section
      5.1.

     

    (ii) Step-In
      Rights by Licensee.
      In the
      event Baxter determines to abandon or not to continue with any Management of
      a
      Licensed Patent, it shall provide Licensee with at least sixty (60) days prior
      written notice of such determination. Licensee, in its discretion, may elect
      to
      assume the Management of such Licensed Patent (an “Assumed Patent”), at
      Licensee’s sole expense; provided, however, Assumed Patents shall remain the
      sole property of Baxter, subject to the license of Section 2.1; and provided
      further that Licensee shall be entitled to deduct 50% of the direct costs of
      the
      Management of the Assumed Patents from any amounts due under
      Section 5.1(b).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    b) Costs.
      The
      Parties have agreed to estimate the annual cost of filing,
      prosecuting
      and maintaining the Licensed Patents at thirty thousand dollars
      ($30,000)
      and, as
      a result, have agreed that for so long as Baxter is filing, prosecuting and
      maintaining the Licensed Patents, with the exception of the Assumed Patents
      or
      Licensed Patents not elected pursuant to Section
      5.1(a)(ii),
      the
      Licensee shall pay
      to
      Baxter fifteen thousand dollars ($15,000) on the Effective Date and every
      anniversary thereafter during the Term.  

    

    
      	5.2	
              Enforcement
                of Intellectual Property Rights. 

            

    

     

    
      	
            	a)	
              Each
                Party shall promptly, but in no event later than thirty (30) days
                after
                receipt of notice thereof, notify the other Party (i) of any nullity
                actions, oppositions, reexaminations, declaratory judgment actions
                or any
                alleged or threatened infringement affecting any Licensed Patent
                or the
                misappropriation or violation of any intellectual property rights
                relating
                to any Licensed Product or any Licensed Patent; or (ii) if it reasonably
                believes that any Licensed Patent is being infringed, misappropriated
                or
                violated by a third party. 

            

    

    

    
      	
            	b)	
              Litigation.

            

    

    

    
      	 	
              (i)
                

            	
              Except
                as provided in Section 5.2(b)(ii), Baxter, in its discretion and
                at its
                expense, shall pursue all necessary actions,
                including initiating a suit, against
                any third party that Baxter reasonably believes is infringing,
                misappropriating or violating a Licensed
                Patent.

            

    

    

    
      	 	
              (ii)

            	
              Notwithstanding
                Section
                5.2(b)(i), Licensee,
                in its discretion and its expense, shall have the first right and
                option
                to pursue all necessary actions, including initiating a suit, against
                any
                third party that Licensee reasonably believes is infringing,
                misappropriating or violating or Licensed Patent, if such infringement,
                misappropriation or violation relates to the development or
                commercialization of a product or product candidate that is competitive
                (i.e., the product or product candidate is a tubulin inhibitor particle
                suspension) with a Licensed Product being developed or commercialized
                by
                Licensee. If Licensee fails to take any of the foregoing actions
                within a
                reasonable period of time after becoming aware of the claimed
                infringement, misappropriation or violation (but in no event more
                than
                ninety (90) days), or otherwise notifies Baxter within such time
                period
                that it elects to not pursue any such action, then Baxter shall have
                the
                right to take any such action in accordance with Section
                5.2(c).
                The ninety (90) day time period in this sub-section shall be shortened
                as
                reasonably necessary to enable Baxter to initiate a suit or take
                other
                appropriate action if, in the absence of such shortening, a loss
                of rights
                with respect to such suit or other action would occur (e.g., if a
                generic
                pharmaceutical maker files an abbreviated new drug application for
                which
                the reference listed drug is a Licensed Product and, in order to
                obtain an
                automatic stay from the FDA with respect to the approval of such
                abbreviated new drug application, a patent infringement suit must
                be
                brought within a shorter period of time). The Party filing any suit
                or
                taking any such action hereunder shall be responsible for all costs
                in
                connection therewith.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	c)	
              The
                Party initiating suit or action under Section 5.2(b)(ii)
                shall have the sole and exclusive right to select counsel for any
                suit
                initiated by it. If required under applicable law in order for the
                initiating Party to initiate and/or maintain such suit or action,
                the
                other Party shall join as a party to the suit or action. Such other
                Party
                shall offer reasonable assistance to the initiating Party in connection
                therewith at no charge to the initiating Party except for reimbursement
                of
                reasonable out-of-pocket expenses incurred in rendering such assistance.
                The Party filing any such suit or taking any such action shall provide
                the
                other Party with an opportunity to make suggestions and comments
                regarding
                such suit or action. Thereafter, the Party filing any such suit or
                taking
                any such action shall, to the extent permitted by applicable law,
                keep the
                other Party promptly informed, and shall from time to time consult
                with
                such other Party regarding the status of any such suit or action
                and shall
                provide such other Party with copies of all material documents including
                complaints, answers, counterclaims, material motions, orders of the
                court,
                memoranda of law and legal briefs, interrogatory responses, depositions,
                material pre-trial filings, expert reports, affidavits filed in court,
                transcripts of hearings and trial testimony, trial exhibits and notices
                of
                appeal filed in, or otherwise relating to, such suit or action. The
                Party
                not initiating such suit or action shall have the right to participate
                and
                be represented in any such suit by its own counsel at its own expense.
                The
                Parties shall not conduct or settle any such suit or action in a
                manner
                that deprives the non-initiating Party of material consideration
                under
                this Agreement or materially places at risk the scope or validity
                of any
                Licensed Patent without the prior written approval of the non-initiating
                Party, which approval shall not be unreasonably withheld or
                delayed.

            

    

     

    
      	
            	d)	
              With
                respect to any suit or action referred to in Section
                5.2(b)(ii),
                any recovery obtained as a result of any such proceeding, by settlement
                or
                otherwise, shall be applied in the following order of
                priority: 

            

    

     

    (i) first,
      the Party initiating
      the
      suit or action shall be reimbursed for all costs in connection with such
      proceeding paid by such Party and not otherwise recovered; and

     

    (ii) second,
      any remainder shall be paid seventy-five percent (75%) to the Party initiating
      such suit or action and twenty-five (25%) to the other Party.

     

    
      	
              5.3

            	
              Defense
                of Infringement Action.
                With respect to any and all claims instituted by third parties for
                patent
                infringement involving the manufacture, use, offer for sale or sale
                of a
                Licensed Product during the Term (“Third Party Suit”), Licensee shall have
                the right, at its sole discretion, to defend and control any action
                or
                proceeding with respect to such claim. Baxter agrees to be joined
                as a
                party if necessary to defend the action or proceeding and shall provide
                all reasonable cooperation, including any necessary use of its name,
                required to defend such litigation. In the event Baxter is joined
                as a
                party to any Third Party Suit, Baxter shall have the right to be
                represented by its own counsel, at its own selection and expense.
                Licensee
                shall have sole control of any such suit and all negotiations for
                its
                settlement or compromise, provided that Licensee shall not conduct
                or
                settle any such suit in a manner that deprives Baxter of material
                consideration under this Agreement or materially places at risk the
                scope
                or validity of any Licensed Patent without the prior written approval
                of
                Baxter, which approval shall not be unreasonably withheld or
                delayed.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      6

     

    [Intentionally
      Omitted]

     

    ARTICLE
      7

    REPRESENTATIONS
      AND WARRANTIES

    

    
      	
              7.1

            	
              Licensee’s
                Representations And Warranties. Licensee
                hereby represents and warrants to Baxter as of the Effective Date
                that:
                

            

    

     

    
      	 	
              (a)

            	
              Licensee
                is duly authorized to enter into this Agreement;
                

            

    

     

    
      	 	
              (b)

            	
              no
                consents or approvals which Licensee has not previously obtained
                are
                necessary for Licensee to enter into this Agreement and perform all
                of
                Licensee's obligations hereunder; and

            

    

     

    
      	 	
              (c)

            	
              this
                Agreement does not conflict with any other Licensee contractual,
                statutory
                or regulatory obligation.

            

    

     

    
      	
              7.2

            	
              Licensee’s
                Covenant.
                Licensee hereby covenants during the Term that Licensee shall perform
                its
                obligations hereunder in accordance with all relevant material applicable
                state and federal laws, rules and regulations as they apply.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.3

            	
              Baxter’s
                Representations and Warranties.
                Baxter hereby represents and warrants to Licensee, as of the Effective
                Date that:

            

    

     

    
      	 	
              (a)

            	
              Baxter
                is duly authorized to enter into this
                Agreement;

            

    

     

    
      	 	
              (b)

            	
              no
                consents or approvals which Baxter has not previously obtained are
                

            

    

     

    necessary
      for Baxter to enter into this Agreement and perform all of Baxter's obligations
      hereunder; 

     

    
      	
            	(c)	
              this
                Agreement does not conflict with any other Baxter contractual, statutory
                or regulatory obligation;

            

    

     

    
      	
            	(d)	
              Baxter
                is the owner of the Licensed Patents and it is free and clear of
                any
                encumbrances, and that Baxter has the right to grant the license
                hereunder, and such grant does not conflict with any other agreements,
                documents or other materials; 

            

    

     

    
      	
            	(e)	
              to
                Baxter’s knowledge,
                the manufacture, sale, offer for sale, importation or use of a Licensed
                Product would not infringe any existing, valid intellectual property
                right
                of any third party throughout the world. Baxter represents that it
                has not
                received any notice of any claimed infringement (including without
                limitation patent infringement) in connection with the manufacture,
                sale,
                offer for sale, importation or use of a Licensed Product as of the
                Effective Date; 

            

    

     

    
      	
            	(f)	
              Baxter
                has not received and
                does not have knowledge of any
                information that would suggest the invalidity or unenforceability
                of all
                of the claims of the Licensed
                Patents.

            

    

     

    
      	
              7.4

            	
              Baxter’s
                Covenant.
                Baxter hereby covenants during the Term that Baxter shall perform
                its
                obligations hereunder in accordance with all relevant material applicable
                state and federal laws, rules and regulations as they
                apply.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      8

    INDEMNIFICATION

    

    
      	
              8.1

            	
              Indemnification.
                Each Party’s rights to indemnification with respect to the provisions of
                this Agreement and the performance thereof shall be governed by and
                set
                forth in Section 6.2
                and 6.3
                of
                the Asset Purchase Agreement. 

            

    

    

    
      	
              8.2

            	
              Exclusive
                Remedy.
                Except with respect to claims for fraud or for equitable relief,
                and
                claims for specific performance of the covenants and obligations
                of the
                other Party under this Agreement, claims for indemnification pursuant
                to
                Article VI
                of
                the Asset Purchase Agreement shall be the sole and exclusive remedy
                for
                claims and damages available to Baxter and Licensee and their respective
                Affiliates arising out of or relating to this Agreement and the licenses
                contemplated hereby.

            

    

    

    
      	8.3	
              Limitation
                on Liability.
                Notwithstanding Article VI
                of
                the Asset Purchase Agreement, or any other provision of this Agreement,
                no
                Party shall be liable under this Agreement for any special, indirect,
                consequential or punitive damages except to the extent that the liability
                for such damages arises out of a Third Party Action (as defined in
                the
                Asset Purchase Agreement).

            

    

     

    ARTICLE
      9

    FORCE
      MAJEURE

    

    Neither
      of the Parties shall be liable for failure of performing its obligation
      hereunder to riot, act of God, war, fire, flood, invasion, earthquake,
      epidemics, interruption of transportation, embargo, strike, lockout or any
      other
      causes similar to the foregoing which are beyond the reasonable control of
      the
      Party (“Events of Force Majeure”) and the performance of obligation hereunder
      shall be suspended but not longer than the existence of such cause. The Party
      so
      affected shall: (a) give prompt written notice to the other Party of the nature
      and date of commencement of the force majeure event and its expected duration;
      and (b) use all reasonable commercial efforts to relieve the effect of such
      cause as rapidly as possible. If the Events of Force Majeure do not abate within
      ninety (90) days such that the Party claiming such Force Majeure is still unable
      to perform its obligations hereunder, the failure to perform shall be deemed
      a
      material breach and the other Party may terminate this Agreement pursuant to
      Section
      10.2.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      10

    TERM
      AND TERMINATION

    

    
      	
              10.1

            	
              Term.
                The licenses granted under this Agreement shall come into effect
                as of the
                Effective Date and, subject to the provisions of this Article
                10,
                shall expire on the expiration of last to expire of the Licensed
                Patents (the
                “Term”). Upon expiration of the Term, (i) the licenses granted herein
                shall terminate and (ii) no further obligation shall accrue under
                Article
                3.

            

    

    

    
      	
              10.2

            	
              Termination
                of Certain Rights for Material Breach.
                Either Party may terminate certain rights of the other Party under
                this
                Agreement, as more fully described in Section
                10.4,
                for any material breach by the other Party or if the other Party
                has
                failed to comply with all laws, regulations or treaties of the United
                States of America applicable to its activities under this Agreement,
                by
                giving sixty (60) days written notice to the other Party specifying
                the
                nature of such breach or failure. Termination shall become effective
                if
                such breach or failure remains uncured at the end of such sixty (60)
                day
                period, provided, however, if such breach or failure is incapable
                of cure
                within a sixty (60) day period but is otherwise capable of cure,
                and the
                terminating Party will not be materially prejudiced if the cure is
                effected in a reasonable time, and the curing Party is proceeding
                to
                effect the cure in good faith and with reasonable diligence, then
                the
                termination shall not become effective until the curing Party has
                had a
                reasonable time to effect the cure. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	10.3	
              Licensee
                Termination.
                Licensee may terminate this Agreement at any time upon sixty (60)
                days
                prior written notice, at which time (i) the licenses granted herein
                shall terminate and (ii) no further obligation shall accrue under
                Article III.

            

    

    

    
      	
              10.4
                

            	
              Effect
                of Termination Under Section 10.2.
                In
                the event Baxter exercises its right of termination pursuant to
                Section
                10.2,
                the license pursuant to Section
                2.1
                shall, at Baxter’s option, either (i) become non-exclusive, without the
                right to sublicense; provided, however, that sublicenses granted
                prior to
                termination of the other Party’s licenses under this Agreement shall
                continue unaffected by termination, except for the substitution of
                Baxter
                for Licensee as party to such sublicense or (ii) terminate.
                

            

    

    

    ARTICLE
      11

    NOTICES
      AND MISCELLANEOUS

    

    
      
        
          	11.	
                  1Notices.
                    All notices, requests, consents and other communications hereunder
                    shall
                    be in writing, shall be addressed to the receiving party’s address set
                    forth below or to such other address as a party may designate
                    by notice
                    hereunder, and shall be either (i) delivered by hand, (ii) made
                    by
                    telecopy or facsimile transmission, (iii) sent by recognized
                    overnight
                    courier, or (iv) sent by registered or certified mail, return
                    receipt
                    requested, postage
                    prepaid:

                

        

      

    

     

    
      	
              If
                to the Sellers:

            	
              Baxter
                Healthcare S.A.

              Hertistrasse
                2, CH-8304

              Wallisen,
                Switzerland

              Attn: General
                Manager 

              Fax: 
                +41 44 878 64 77

            
	 	 
	 	
              Baxter
                International Inc.

              One
                Baxter Parkway

              Deerfield,
                IL 60015

              Attn: Corporate
                Vice President & General Counsel 

              Fax: 847.948.2450

            
	 	 
	
              If
                to the Buyer:

            	
              ZIOPHARM
                Oncology, Inc

              1180
                Avenue of the Americas

              New
                York, NY 10036

              Attn:  Jonathan
                Lewis, MD, PhD 

              Chief
                Executive Officer and Executive  Chairman

              Fax: 203
                848 6007

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              With
                a copy to:

            	
              ZIOPHARM
                Oncology, Inc

              197
                Eighth Street, Suite 300

              Charlestown,
                MA 02129

              Attn: Bob
                Newman, Senior Vice
                President, 

              Business
                and Development Operations

              Fax: 617
                241 2855

            

    

    

    All
      notices, requests, consents and other communications hereunder shall be deemed
      to have been received (i) if by hand, at the time of the delivery thereof to
      the
      receiving party at the address of such party set forth above or as so
      designated, (ii) if made by telecopy or facsimile transmission, at the time
      that
      receipt thereof has been acknowledged by electronic confirmation or otherwise,
      (iii) if sent by overnight courier, on the next business day following the
      day
      such notice is delivered to the courier service, or (iv) if sent by registered
      or certified mail, on the fifth business day following the day such mailing
      is
      made.

     

    
      	11.2  	
              Entire
                Agreement.
                This Agreement, together with the Asset Purchase Agreement, collectively
                embodies
                the entire agreement and understanding among the Parties with respect
                to
                the subject matter hereof and supersedes
                all prior oral or written agreements and understandings relating
                to the
                subject matter hereof. No statement, representation, warranty, covenant
                or
                agreement of any kind not expressly set forth in the Agreement shall
                affect, or be used to interpret, change or restrict, the express
                terms and
                provisions of this Agreement.

            

    

    

    
      	11.3  	
              Modifications
                and Amendments.
                The terms and provisions of this Agreement may be amended, modified,
                supplemented or waived only by written agreement executed by all
                Parties.

            

    

    

    
      	11.4  	
              No
                Waiver of Rights, Powers and Remedies.
                No failure or delay by a Party in exercising any right, power or
                remedy
                under this Agreement, and no course of dealing between the Parties,
                shall
                operate as a waiver of any such right, power or remedy of the Party.
                No
                single or partial exercise of any right, power or remedy under this
                Agreement by a Party, nor any abandonment or discontinuance of steps
                to
                enforce any such right, power or remedy, shall preclude such Party
                from
                any other or further exercise thereof or the exercise of any other
                right,
                power or remedy hereunder. The election of any remedy by a Party
                shall not
                constitute a waiver of the right of such Party to pursue other available
                remedies. No notice to or demand on a Party not expressly required
                under
                this Agreement shall entitle the Party receiving such notice or demand
                to
                any other or further notice or demand in similar or other circumstances
                or
                constitute a wavier of the rights of the Party giving such notice
                or
                demand to any other or further action in any circumstances without
                such
                notice or demand. The terms and provisions of this Agreement may
                be
                waived, or consent for the departure therefrom granted, only by written
                document executed by the Party entitled to the benefits of such terms
                or
                provisions. No such waiver or consent shall be deemed to be or shall
                constitute a waiver or consent with respect to any other terms or
                provisions of this Agreement, whether or not similar. Each such waiver
                or
                consent shall be effective only in the specific instance and for
                the
                purpose for which it was given, and shall not constitute a continuing
                waiver or consent.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	11.5  	
              Assignment.
                Neither Party may assign or transfer this Agreement or any rights
                or
                obligations hereunder without the prior written consent of the other,
                except that a Party may make such an assignment without the other
                Party’s
                consent to one or more of its Affiliates
                or
                in connection with a sale or transfer of all or substantially all
                of the
                stock or assets of the Party or any merger, consolidation or similar
                transaction involving the Party.
                Any permitted successor or assignee of rights and/or obligations
                hereunder
                shall, in a writing to the other Party, expressly assume performance
                of
                such rights and/or obligations. Any permitted assignment shall be
                binding
                on the successors of the assigning Party. Any assignment or attempted
                assignment by either Party in violation of the terms of this Section
                shall
                be null and void and of no legal
                effect.

            

    

    

    
      	11.6  	
              Parties
                in Interest.
                This Agreement shall be binding upon and inure solely to the benefit
                of
                each Party and their permitted
                successors and
                assigns, and nothing in this Agreement, express or implied, (i) is
                intended to confer upon any other person or entity any rights or
                remedies
                of any nature whatsoever under or by reason of this Agreement, or
                (ii)
                shall be construed to create any rights or obligations except among
                the
                Parties, and no person or entity shall be regarded as a third-party
                beneficiary of this Agreement.

            

    

    

    
      	11.7  	
              Governing
                Law.
                This Agreement and the rights and obligations of the Parties hereunder
                shall be construed in accordance with and governed by the internal
                law of
                the State of Illinois, without giving effect to the conflicts of
                law
                principles thereof.

            

    

    

    
      	11.8  	
              Severability.
                In the event that any court of competent jurisdiction shall finally
                determine that any provision, or any portion thereof, contained in
                this
                Agreement shall be void or unenforceable in any respect, then such
                provision shall be deemed limited to the extent that such court determines
                it enforceable, and as so limited shall remain in full force and
                effect.
                In the event that such court shall determine that any such provision,
                or
                potion thereof, is wholly unenforceable, the remaining provisions
                of this
                Agreement shall nevertheless remain in full force and
                effect.

            

    

    

    
      	11.9  	
              Interpretation.
                The Parties acknowledge and agree that: (i) each Party and its counsel
                reviewed and negotiated the terms and provisions of this Agreement
                and
                have contributed to its revision; (ii) the rule of construction to
                the
                effect that any ambiguities are resolved against the drafting Party
                shall
                not be employed in the interpretation of this Agreement; and (iii)
                the
                terms and provisions of this Agreement shall be construed fairly
                as to all
                Parties and not in favor of or against any Party, regardless of which
                Party was generally responsible for the preparation of this
                Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	11.10  	
              Headings
                and Captions.
                The headings and captions of the various subdivisions of this Agreement
                are for convenience of reference only and shall in no way modify,
                or
                affect, or be considered in construing or interpreting the meaning
                or
                construction of any of the terms or provisions
                hereof.

            

    

    

    
      	11.11  	
              Enforcement.
                Each of the Parties acknowledges and agrees that the rights acquired
                by
                each Party hereunder are unique and that irreparable damage would
                occur in
                the event that any of the provisions of this Agreement to be performed
                by
                the other Party were not performed in accordance with their specific
                terms
                or were otherwise breached. Accordingly, in addition to any other
                remedy
                to which the Parties are entitled at law or in equity, each Party
                shall be
                entitled to an injunction or injunctions to prevent breaches of this
                Agreement by the other Party and to enforce specifically the terms
                and
                provisions hereof in any federal or state court of competent
                jurisdiction.

            

    

    

    
      	11.12  	
              Publicity.
                Neither Party shall make any public announcement concerning this
                Agreement
                without the prior written consent of the other Party, unless counsel
                to
                such Party advises that such announcement or statement is
                required by law (including applicable stock exchange rule). In the
                case of
                an announcement required by law, the other Party shall be advised
                in
                advance and both Parties shall use good faith efforts to cause a
                mutually
                agreeable announcement to be issued in a timely basis,
                subject to the disclosing party’s legal requirements.

            

    

    

    
      	11.13  	
              Confidentiality.
                The Parties acknowledge and agree that any information or data it
                has
                acquired from the other Parties, not otherwise properly in the public
                domain, shall
                be subject, in all respects, to Section
                7.14
                of
                the Asset Purchase Agreement.

            

    

    

    
      	11.14  	
              Confidentiality
                of This Agreement.
                Neither Party nor their representatives, will, without the prior
                written
                consent of the other Party, other than to its employees, their officers,
                its Affiliates and/or its agents, disclose to any person any of the
                terms
                or conditions of this Agreement; provided, however, that notwithstanding
                the foregoing, a Party may disclose the terms or conditions of this
                Agreement to the extent such disclosure is reasonably necessary to
                (a) comply with or enforce any of the provisions of this Agreement,
                (b) comply with applicable laws, or (c) comply with applicable stock
                exchange regulation, New York Stock Exchange regulation, Nasdaq regulation
                or Securities and Exchange Commission rule or regulation. To the
                extent
                that either Party determines that it is required to file this Agreement
                to
                comply with the requirements of an applicable stock exchange regulation,
                New York Stock Exchange regulation, Nasdaq regulation or SEC rule
                or
                regulation, such Party shall give at least three (3) days advance
                written
                notice of any such required disclosure to the other party, and to
                the
                extent the other party so requests it within such three (3) day period,
                prior to making any such filing shall consult with the other Party
                with
                respect thereto regarding
                confidentiality.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	11.15  	
              Interpretation.
                Unless the context otherwise requires, words defined herein in the
                singular include the plural and words defined herein in the plural
                include
                the singular. “Include,” “includes” or “including” shall in all places
                mean including, but not limited to. The use of the masculine or any
                other
                pronoun herein when referring to any person or entity is for convenience
                only and shall be deemed to refer to the particular person or entity
                intended regardless of the actual gender of such person or whether
                such
                person is a corporation or other
                entity.

            

    

    

    
      	11.16  	
              Counterparts.
                This Agreement may be executed in one or more counterparts, each
                of which
                deemed an original, but all of which together shall constitute one
                and the
                same instrument.

            

    

    

    
      	11.17  	
              Facsimile/Scanned
                Signatures.
                For purposes of this Agreement and any other Transaction Documents
                required to be delivered pursuant to this Agreement, facsimiles of,
                or
                scanned, signatures shall be deemed to be original signatures. In
                addition, if any of the parties sign facsimile or scanned copies
                of this
                Agreement or any of the other Transaction Documents, such copies
                shall be
                deemed originals.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof, the Parties have executed this Agreement as of the day and
      year
      first above written.

     

    
      	 	BAXTER
              HEALTHCARE S.A.
	 	 	 
	 	 	 
	 	By: 	
              /s/
                Robert J. Hombach

            
	 	Name: 	
              
                

              

              Robert J. Hombach

            
	 	Title:	VP Finance
              Europe

    

     

      	 	 	 
	 	
              BAXTER
                INTERNATIONAL INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Rob
              Davis
	 	Name: 	
              
                
Rob
                Davis

            
	 	Title:	CVP, CFO

    

     

    
      	 	 	 
	 	 
	 	 
	 	
              
                ZIOPHARM
                  ONCOLOGY, INC.

              

            
	 
 	 
 	 
 
	 	By:  	/s/ Jonathan
              Lewis
	 	Name: 	
              
                
Jonathan
                Lewis

            
	 	Title:	Chief Executive OfficerExhibit
      10.01

    

    CONSULTING
      AGREEMENT

    

    Agreement
      made this 1st
      day of
      December 2005 by and between FRMO CORP., a Delaware corporation, having an
      office at 320 Manville Road, Pleasantville, N.Y. 10570 (“FRMO”) and FROMEX
      EQUITY CORP., a Delaware corporation, having an office at 271 North Avenue,
      Room
      520, New Rochelle, N. Y. 10801 (“FROMEX’).

     

    WHEREAS

     

    A. FROMEX
      was incorporated in the State of Delaware on August 31, 2005 by FRMO for the
      purpose of reaching a contractual arrangement between parent and subsidiary
      corporations, which is now to be specified in this Agreement in place of any
      agreement or understanding previously discussed or reached, which are superseded
      by this Agreement;

     

    B. FROMEX
      agrees to perform consulting and management services to FRMO and FRMO agrees
      to
      pay FROMEX 10% of its cash receipts in consideration thereof, as hereinafter
      set
      forth;

     

    NOW
      THEREFORE,
      in
      consideration of the mutual covenants herein contained, it is hereby agreed
      as
      follows:

     

    l. Term.
      This
      Agreement shall commence on December 1, 2005 and continue in effect until
      February 28, 2007 and for each twelve (12) month period thereafter unless
      terminated or amended by an instrument in writing signed by both parties hereto
      on or before January 15th
      preceding the end of a respective term.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2. Services.
      FROMEX
      agrees to provide such management services, as requested by FRMO, for the
      administrative aspects of FRMO’s business activities, based on its current
      operations. This, however this shall not include the services rendered by FRMO
      itself to its customers which produce the cash receipts it receives from its
      customers nor shall it include the research or business development activities
      of FRMO’s officers. FROMEX’s services shall include operating, bookkeeping and
      personnel responsibilities and periodic consulting with the chief financial
      officer of FRMO on matters within the responsibility of said CFO.

     

    3. Compensation.
      FRMO
      shall pay to FROMEX as its compensation an amount equal to ten (10%) percent
      of
      total cash receipts that FRMO receives from its customers during the term of
      this Agreement. Said compensation shall only include the money received by
      FRMO
      in each three (3) month period beginning December 1, 2005 and shall not include
      any receivable or accrual until the amount is actually received. The payment
      of
      such compensation shall be made at the close of the month following the end
      of
      said three month period less any advances which FRMO shall have made to FROMEX
      on account of said compensation. The first period is the three months from
      December 1, 2005 to February 28, 2006 and payment therefor shall be made on
      or
      before March 31, 2006.

     

    4.  Arbitration
      and Choice of Laws.
      The
      laws of the State of New York shall govern this Agreement, without regard to
      the
      conflict of laws principles thereof. The parties irrevocably agree that all
      disagreements or controversies in any way, manner or respect, arising out of
      or
      related to this Agreement shall be resolved by binding arbitration in New York
      City in accordance with the Rules of the American Arbitration Association.
      Each
      party hereby consents and submits to the jurisdiction of the American
      Arbitration Association and hereby waives any rights the party may have to
      transfer or change the venue of any such dispute. The prevailing party in any
      arbitration in connection with this Agreement shall be entitled to recover
      from
      the other party all costs and expenses, including without limitation reasonable
      fees of attorneys and paralegals, incurred by such party in connection with
      any
      such arbitration or court proceeding to enforce the award made in the
      arbitration proceeding. Each party consents to the jurisdiction of the Supreme
      Court of the State of New York, County of New York to enforce any such
      arbitration result. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.  Further
      Assurances.
      The
      parties shall execute and deliver such further instruments and do such further
      acts and things as may be required in good faith to carry out the intent and
      purpose of this Agreement.

     

    6.
       Binding
      on Successors.
      This
      Agreement shall be binding on, and inure to the benefit of, the parties hereto,
      their successors and assigns.

     

    7. Severability.
      If any
      provision of this Agreement or its application to any circumstance shall be
      finally determined by any court of competent jurisdiction to be invalid or
      unenforceable then the same is hereby declared to be severable and the remainder
      of this Agreement and the application of such provisions or circumstances other
      than so determined to be invalid or unenforceable shall not be affected
      hereby.

     

    8. Effect
      of Waiver or Consent.
      A
      waiver or consent, express or implied, to or of any breach or default by any
      party in the performance by that party of its obligations hereunder is not
      a
      consent or waiver to or of any other breach or default in the performance by
      that party of the same or any other obligations of that party. Failure on the
      part of a party to complain of any act or omission or to declare any party
      in
      default hereunder, irrespective of how long that failure continues, does not
      constitute a waiver by that party of its rights with respect to that
      default.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9. Supersedes
      Prior Agreement.
      This
      Agreement shall supersede any prior agreement or understanding made by the
      parties prior to the date hereof and constitutes the entire agreement between
      the parties with respect to the subject matter. This Agreement is not intended
      to confer upon any person other than the parties hereto any rights or remedies
      hereunder.

    

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

     

    
      	 	 	 
	 	
              FRMO
                CORP.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Murray Stahl
	 	
              

              Murray
                Stahl, CEO

            

       

      
        	 	 	 
	 	
                
                  FROMEX
                    EQUITY CORP.

                

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Steven Bregman
	 	
                

                Steven
                  Bregman, President

              

      

    

    

    Fromex
      Dir: Consulting
      Agreement FRMO-Fromex 2-06

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