Document:

Exhibit 10.19

 

Certain portions of this
Exhibit have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets [   ] and an asterisk*, have been separately filed with the Commission.

 

WORKPLAN FOR DETAILING SERVICES

 

This
Workplan for Detailing Services (“Workplan”) is dated as of September 19, 2003
(“Effective Date”) by and between Cardinal Health PTS, Inc. (“Cardinal Health”)
with a place of business at 7000 Cardinal Place, Dublin, Ohio, and Acorda Therapeutics,
Inc. (“Acorda”), having a principal place of business at 15 Skyline Drive,
Hawthorne, New York 10532.

 

Background
Information

 

Cardinal
Health and Acorda are parties to the RxPedite Acorda Marketing Services
Agreement dated September 19, 2003 (“RxPedite Agreement”).  Cardinal Health provides a number of
marketing related services to Acorda pursuant to the terms of the RxPedite
Agreement as set forth in specific Workplans agreed to by the parties.  The parties desire to set forth the terms
and conditions upon which Cardinal Health will provide Representatives to
Detail certain products for Acorda as provided herein and in the RxPedite
Agreement.  This Workplan is subject to
the terms and conditions of the RxPedite Agreement and is incorporated by reference
therein.  In the event of a conflict
between the terms of the RxPedite Agreement and this Workplan, the RxPedite
Agreement shall control.

 

ARTICLE I

DEFINITIONS

 

1.1.                              Definitions. 
Initially capitalized terms used in this Workplan that are not otherwise
defined in this Article 1 or elsewhere in this Workplan shall have the meanings
as such terms are defined in the RxPedite Agreement.

 

(a)                                  “Act” means the Federal Food, Drug and
Cosmetic Act, as amended, and the regulations promulgated thereunder from time
to time.

 

(b)                                 “Agency” means any governmental regulatory
authority in the Territory responsible for granting approvals for the sale or
maintaining regulatory oversight of the Products, including, without
limitation, the FDA.

 

(c)                                  “Cardinal Health Employee” means
individually, any Representative, Manager, National Account Manager, National
Sales Director, or Medical Science Liaison, and “Cardinal Health Employees”
means, collectively, all of the foregoing.

 

(d)                                 “FDA” means the United States Food and Drug
Administration and any successor agency having substantially the same
functions.

 

(e)                                  “Detail” means an interactive, face-to-face
visit by a Representative with a Target Customer or his or her legally
empowered designee in the Territory, during which the FDA-approved indicated
uses, safety, effectiveness, contraindications, side effects, warnings and
other relevant characteristics of one of the Products are described by the
Representative in a fair and balanced manner consistent with the requirements
of the Act, and using, as necessary or

 

1

 

desirable, the Product Labeling and the
Product Promotional Materials.   When
used as a verb, “Detail” or “Detailing” shall mean to engage in a Detail as
defined in this Section 1.1(e).

 

(f)                                    “Manager” means an individual hired by and
retained as an employee of Cardinal Health to supervise activities of
Representatives under this Workplan, including district sales managers,
regional sales directors, a National Sales Director, and a Project Manager.

 

(g)                                 “Medical Science Liaison” means an individual
hired by Cardinal Health to educate target physicians on current trends
relating to the Product, its approved indications, and other functions agreed
to by the parties.

 

(h)                                 “MSL Commencement Date” means the date upon
which Acorda delivers a written request to Cardinal Health for the recruitment
and hiring of the Medical Science Liaisons as provided in Section 2.4.

 

(i)                                     “NAM Commencement Date” means the date upon
which Acorda delivers a written request to Cardinal Health for the recruitment
and hiring of the National Account Managers as provided in Section 2.3.

 

(j)                                     “National Account Manager” means an
individual hired by Cardinal Health to manage national sales accounts for Products,
including without limitation, accounts with wholesalers, managed care
institutions, etc.

 

(k)                                  “National Sales Director” means an individual
hired by Cardinal Health to supervise activities of Representatives, National
Account Managers and Medical Science Liaisons under this Workplan and other
functions agreed to by the parties.

 

(l)                                     “PDMA” means the Prescription Drug Marketing
Act of 1987, as amended, and the regulations promulgated thereunder from time
to time.

 

(m)                               “Product Labeling” means all labels and other
written, printed, or graphic matter provided by the Acorda relating directly to
Product labeling, including (i) any container or wrapper utilized with a
Product, or (ii) any written material accompanying a Product, including,
without limitation, Product package inserts.

 

(n)                                 “Product Promotional Materials” means all
written, printed or graphic material provided by Acorda to Cardinal Health,
including Product Labeling, intended for use by Representatives during a
Detail, including visual aids, file cards, premium items, clinical studies,
reprints, drug information updates and any other promotional support items that
Acorda deems necessary or appropriate to conduct the Program.  Product Promotional Materials shall include
FDA approved material provided by Acorda relating to indicated uses, safety,
effectiveness, contraindications, side effects, warnings and other relevant
characteristics of each of the Products.

 

(o)                                 “Products” means the pharmaceutical products
to be detailed by Representatives and marketed by Acorda as set forth on
attached Schedule 1.1(o), as such

 

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Certain portions of this Exhibit have been omitted pursuant to a
request for confidentiality. Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

schedule may be amended to include other
Acorda products by mutual agreement between the parties.

 

(p)                                 “Program” means the program of Detailing the
Products in the Territory  to be
conducted by the Representatives pursuant to this Workplan and the RxPedite
Agreement during the Term of this Workplan, as defined in  Section 10.1.

 

(q)                                 “Program Launch” means the first Monday
following the completion of the Training Program (as defined in Section 3.1) by
at least [***] of the
Representatives.

 

(r)                                    “Representative” means an individual hired by
and retained as an employee of Cardinal Health to conduct Detailing of Products
in connection with the Program.  As
sometimes used in this Workplan, “Representatives” shall also include
“Managers.”

 

(s)                                  “Representative Commencement Date” shall mean
the date upon which Acorda delivers a written request to Cardinal Health for
the recruitment and hiring of the Representatives as provided in Section 2.1.

 

(t)                                    “Target” or “Target Customer” means a
physician or other specialist identified by Acorda.

 

(u)                                 “Territory” means the geographical area
specified in the attached Schedule 
1.1(t).

 

 

ARTICLE II

GENERAL SCOPE OF ACTIVITIES

 

2.1                                 Furnishing Representatives.  Upon
receipt of a written request from Acorda, Cardinal Health shall commence the
recruitment and hiring of at least [***] Representatives within a timeframe to be mutually agreed upon by the
parties.  Cardinal Health shall assign
Representatives for such Target Customers, in such numbers, and in such
Territories as shall be designated by Acorda during the Term of this
Workplan.  Each Representative shall
Detail his or her assigned Target Customers based on the general direction
given by Acorda’s designated management team and as mutually agreed to by
Cardinal Health, such agreement not to be unreasonably withheld.  Except as otherwise provided in Section 2.5,
the duties of such Representatives shall be exclusively to Detail the Products
and perform other related activities deemed necessary for the establishment and
maintenance of new and existing customers of the Products in the Territory.

 

2.2                                 Furnishing Managers and National Sales
Director.  Upon receipt of a written request from
Acorda authorizing the recruitment of the Representatives, Cardinal Health
shall commence the recruitment and hiring of [***] Managers and [***] National Sales Director to supervise the
activities of Representatives, National Account Managers and Medical Science
Liaisons and to perform this Workplan.

 

3

 

Certain portions of this Exhibit have been omitted pursuant to a
request for confidentiality. Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

2.3                                 Furnishing National Account Managers. 
Upon receipt of a written request from Acorda, Cardinal Health shall
commence the recruitment and hiring of [***] National Account Managers within a timeframe to be mutually agreed
upon by the parties and to perform the functions described on Schedule 2.3.

 

2.4                                 Furnishing Medical Science Liaisons. 
Upon receipt of a written request from Acorda, Cardinal Health shall
commence the recruitment and hiring of [***] Medical Science Liaisons within a timeframe to be mutually agreed upon
by the parties and to perform the functions described on Schedule 2.4.

 

2.5.                              Sales Force Syndication. 
During the Term, the primary activity of the Cardinal Health Employees
will be the marketing and promotion of the Product in the Territory, provided,
however, that Cardinal Health will have the right to propose to Acorda
syndication of any additional capacity of the Representatives to other products
from third party healthcare companies. 
Upon Acorda’s acceptance of such proposal, the parties will negotiate in
good faith a decrease in the Service Fees to reflect such syndication by
Cardinal Health.  Cardinal Health may
not syndicate such additional sales force capacity absent written approval of
the proposal by Acorda, including approval of the negotiated adjustment in the
Service Fees.  Acorda will consider any
such proposed syndication in good faith, taking into account the type of
product, target audience and level of sales effort for such product.

 

2.6                                 Scope of Activities.  The
parties shall perform the following activities as applicable to each in
connection with the Program:

 

(a)                                  Cardinal Health will recruit, interview and
hire as its employees the Cardinal Health Employees.  Cardinal Health will use its best efforts to ensure that Cardinal
Health Employees have prior experience and training in the pharmaceutical
industry or other health care-related fields or such other experience deemed
mutually acceptable by Acorda and Cardinal Health.  Cardinal Health shall use its best efforts to ensure that the
Cardinal Health Employees have satisfactory references from prior employers.
Cardinal Health shall have the sole authority to reject any applicant for
employment as a Cardinal Health Employee. Acorda may, at its sole cost and
expense, participate with Cardinal Health in the interviewing of Cardinal
Health Employees.  If Cardinal Health
rejects an applicant and thereafter hires such applicant at the request of
Acorda, Acorda shall indemnify and hold Cardinal Health harmless from any Claim
(as defined in the RxPedite Agreement) arising as a result of such Cardinal
Health Employee’s wrongful or negligent acts or omissions.

 

(b)                                 Cardinal Health shall have sole and exclusive
authority to discipline or terminate the employment of the Cardinal Health
Employees.  Acorda may reasonably
request that a Cardinal Health Employee be terminated or reassigned if such
Cardinal Health Employee’s activities or conduct are not adequately (i)
achieving the performance goals of the Product, or (ii) complying with Acorda
requirements for Detailing the Product. 
Cardinal Health shall use its best efforts to comply with such request;
provided that such action complies with applicable laws and is in accordance
with Cardinal Health’s policies and procedures, as determined by Cardinal
Health’s human resources manager.  In
the event Cardinal Health determines that its policies and procedures or
applicable laws prohibit the termination or reassignment of any Cardinal Health

 

4

 

Employee so requested by Acorda, it shall
notify Acorda of such determination and submit a corrective action plan for
Acorda’s approval.  In any event, if a
Cardinal Health Employee fails to comply with all applicable laws and
regulations, or breaches Cardinal Health’s obligations under the RxPedite
Agreement or this Workplan, then the parties shall take the actions set forth
in Section 2.8..

 

(c)                                  Cardinal Health shall cause each Cardinal
Health Employee to attend and successfully complete the Training Program (as
defined in Section 3.1) conducted by Acorda for each of the Products prior to
participating in the Program.  Any
Cardinal Health Employee who does not successfully complete all requirements of
the Training Program shall be removed and replaced by another Cardinal Health
Employee who shall comply with such requirements.

 

(d)                                 Cardinal Health’s Managers shall periodically
accompany Representatives on Details, conduct field evaluations of the Representatives
and the Program, including time supervision, territory management, and
reporting, and be available to review such evaluations with the Acorda’s
coordinator of the Program.  At Acorda’s
request, Cardinal Health shall permit Acorda or its designated representative
to review Cardinal Health’s evaluations relating to the foregoing and to
accompany the Representatives on such Details.

 

(e)                                  Acorda shall provide Cardinal Health without
cost with sufficient quantities of the Product Promotional Materials and
Product Labeling for the performance and supervision of Detailing.  Acorda shall be solely responsible for the
preparation, content, and method of distribution of the Product Promotional
Materials and the Product Labeling.  In
connection with the Detailing of the Products, the Cardinal Health Employees
shall use only the Product Labeling and the Product Promotional Materials
provided by Acorda; and under no circumstances shall Cardinal Health or the
Cardinal Health Employees develop, create, or use any other promotional
material or literature for the Detailing of the Products.  Representatives and National Account
Managers shall limit their verbal statements and claims regarding the Products,
including efficacy and safety, to those that are consistent with the Product
Labeling and the Product Promotional Materials, and Cardinal Health shall
require that Representatives and National Account Managers so limit their
statements and claims.  Acorda shall
advise Cardinal Health immediately of any inaccuracy or incompleteness of the
Product Promotional Materials or the Product Labeling, and upon such notice
Cardinal Health and the Cardinal Health Employees shall immediately cease the
use of any portion or all of the Product Promotional Materials or Product
Labeling so identified by Acorda.

 

(f)                                    The Representatives and National Account
Managers shall not add, delete, or modify claims of efficacy or safety in the
Detailing of the Products, nor make any changes (including underlining or
otherwise highlighting any language or adding any notes thereto) in the Product
Promotional Materials.

 

(g)                                 The Cardinal Health Employees shall not make
any disparaging, untrue, or misleading statements about any of Acorda or its
Affiliates, employees, competitors, or competing products.

 

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(h)                                 Representatives and National Account Managers
shall Detail the Products in strict adherence to all applicable laws,
regulations, and professional requirements, including, but not limited to, the
Act, the Medicare and Medicaid Anti-Kickback Statute, and the American Medical
Association Gifts to Physicians from Industry Guidelines.

 

(i)                                     The Cardinal Health Employees shall remain
under the direct authority and control of Cardinal Health, but shall cooperate
with the members of Acorda and shall receive advice and direction related to
Detail activities on the Products from Acorda and Cardinal Health
mutually.  Acorda shall make all
decisions with respect to the overall strategy in connection with the Detailing
of the Products in accordance with applicable laws and Cardinal Health
Employees shall comply with such decisions.  
Any Acorda personnel interacting with Cardinal Health Employees shall
not discipline the Cardinal Health Employees or implement terms or conditions
of employment or personnel policies and/or practices with respect to the
Cardinal Health Employees or otherwise control the daily activities of the
Cardinal Health Employees.  Acorda shall
provide Cardinal Health with copies of all reports, memoranda, audits and other
data it develops pertaining to (i) the Cardinal Health Employees, Detailing,
and the Program within fifteen (15) days of the preparation of such documents,
and (ii) any negligent or wrongful acts or omissions of the Cardinal Health
Employees as promptly as practicable.

 

(j)                                     Cardinal Health shall supply Representatives,
National Account Managers and Medical Science Liaisons with fleet vehicles for
their use in performing and supervising the Detailing.  Acorda shall reimburse Cardinal Health for
all reasonable out-of-pocket costs and expenses (i.e., airline tickets and other travel expenses, hotel,
rent-a-car, fuel, business meals, travel meals, etc.) of the Cardinal Health
Employees to the extent directly incurred in connection with performing
services pursuant to this Workplan and subject to compliance with a budget to
be mutually agreed upon by Acorda and Cardinal Health for the costs and
expenses referenced in this subparagraph for each Territory.  Cardinal Health shall obtain prior approval
for any such costs or expenses that exceed the budget.

 

(k)                                  Acorda shall provide Cardinal Health with a
list of Target Customers in the Territory and with data on prescriptions and
sales in the Territory for Cardinal Health’s use in performing this
Workplan.  Acorda shall also provide
Cardinal Health with such other sales and marketing information concerning the
Products that is obtained or prepared during the Term of this Workplan.

 

2.7.                              Orders for Products. 
Acorda shall be solely responsible for establishing the terms and
conditions of the sale of the Products, including without limitation, the price
at which the Products will be sold, whether sales of the Products will be
subject to any discounts, the method of distribution of the Products, and
whether any credit will be granted or refused in connection with the sale or
return of any Product.  Acorda shall be
exclusively responsible for accepting and filling all purchase orders for the
Products, billing and returns for the Products, and all other activities in
connection with the sale and delivery of the Products, other than
Detailing.  If any Cardinal Health
Employee receives an order for the Products, he/she shall immediately transmit
such order to Acorda for further handling and communications with the submitter
of the order, including acceptance or rejection, which shall be in Acorda’s
sole discretion.

 

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2.8                                 Wrongful Acts and Omissions. 
Each party shall notify the other 
in writing as promptly as practicable of any such material alleged
negligent or wrongful acts or omissions on the part of any Cardinal Health
Employee of which it becomes aware along with a plan to remedy such acts or
omissions, and Acorda shall provide Cardinal Health with a reasonable
opportunity to remedy such acts or omissions, and if indicated, to replace the
involved Cardinal Health Employee(s). 
Cardinal Health shall be responsible for all such acts or omissions
except that Acorda shall be responsible for any such acts undertaken by any
Cardinal Health Employee pursuant to the express direction, and under the
direct control or supervision, of Acorda or its employees.

 

2.9.                              Vacancies/Turnover.  In
the event of a vacancy in any Cardinal Health Employee position due to resignation,
reassignment or termination of a Representative, Cardinal Health shall use its
best efforts to fill any such vacancy within a nine (9) week period.  Acorda shall be responsible for paying the
Service Fee (as defined in Section 6.1 below) during such vacancy, unless such
vacancy exceeds the nine (9) week period, in which event, the associated
Service Fee for vacancy of such Representative, National Account Manager, or
Medical Science Liaison shall be suspended after the nine (9) week period and shall
resume once the vacancy is filled by Cardinal Health.  All recruiting and other related expenses for filling a vacancy
shall be borne by Cardinal Health; provided, however, that Acorda shall be
responsible for all recruiting and other related expenses for filling any
vacancy occurring pursuant to Acorda’s request for reassignment or termination
other than a request pursuant to Section 2.8, or resulting from a Cardinal
Health Employee’s failure to comply with any one or more of the provisions of
Section 2.6.  In addition, if Acorda
desires to interview any candidates, Acorda shall bear its own cost of
attending any final interview conducted by Cardinal Health or the costs of any
separate interview arranged for by Acorda.

 

2.10.                        Management Reports. 
Cardinal Health shall provide Acorda with monthly reports in the form
set forth in Schedule 2.10 within fifteen (15) days after the end of each
month.  At the request of Acorda,
Cardinal Health shall furnish Acorda at reasonable times such documentation as
Acorda reasonably requests for purposes of verifying the accuracy of any
monthly report.

 

2.11.                        Project Manager. 
Cardinal Health shall appoint a Project Manager to serve as a liaison
between Cardinal Health, Representatives and Acorda regarding the performance by
Cardinal Health and Acorda of their respective obligations under this Workplan.

 

ARTICLE
III

TRAINING

 

3.1.                              Training Programs.

 

(a)                                  Acorda shall conduct a training program (of
approximately five (5) days duration) for the Cardinal Health Employees prior
to the  commencement of the Program,
which shall include such medical and technical information about the Products
and such sales training as Acorda, along with Cardinal Health, deems necessary
and appropriate (the “Training

 

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Program”). 
The Training Program shall also include instruction on compliance with
applicable laws.  Cardinal Health shall
assist Acorda with the Training Program only to the extent requested by Acorda.

 

(b)                                 In order to qualify for assignment in a
Territory, a Representative must demonstrate thorough knowledge of the Products
by passing Acorda approved Product tests at a level of proficiency agreed upon
by Acorda and Cardinal Health.

 

3.2.                              Training Materials.    With the advice and assistance
of Acorda, Cardinal Health shall prepare written training materials for the
Training Program and an up-to-date programmed learning unit for the Products,
to be sent to each Cardinal Health Employee for “at home” study a minimum of
five (5) days prior to the commencement of the Training Program.  Acorda shall provide Cardinal Health with
clinical and other information about the Products in order to prepare such
written training materials and programmed learning unit.

 

3.3.                              Acorda Assistance.   During the Term of this
Workplan, Acorda shall make available to Cardinal Health, free of charge, a
reasonable number of, and for a reasonable amount of time, Acorda’s sales
training and marketing personnel to assist Cardinal Health with respect to the
Training Program and additional orientation and ongoing training for the
Cardinal Health Employees.

 

ARTICLE IV

SAMPLES

 

4.1.                              Provision of Samples. 
Acorda shall provide samples of the Products to the Cardinal Health
Employees at Acorda’s option and at its expense.  Acorda shall determine the quantity and types of samples to be
provided to the Cardinal Health Employees and the method of distribution of the
samples.   In the event Acorda elects to
have Cardinal Health manage the storage and distribution of samples, Cardinal
Health shall pass on to Acorda the actual invoice costs for storage,
distribution and other related costs 
and use prudent business sense in costs incurred.  All samples shall be stored and handled by
Acorda and Cardinal Health in compliance with the PDMA and applicable law.

 

4.2                                 Sample Accountability. 
Cardinal Health shall prepare and provide to Acorda for approval a
sample accountability program applicable to the samples provided by Acorda.

 

4.3.                              Return of Samples. 
Within thirty (30) days following the termination or expiration of this
Workplan or within thirty (30) days from the termination or removal from the
Program of a Cardinal Health Employee (unless such Cardinal Health Employee has
been hired or retained by Acorda), Cardinal Health shall cause the Cardinal
Health Employee to return to Acorda all unused Product samples provided to
Cardinal Health or the Cardinal Health Employee by Acorda.  Acorda shall pay or reimburse Cardinal
Health for all costs and expenses in connection with the storage and shipment
of returned samples.

 

8

 

ARTICLE V

COMMUNICATIONS; MONITORING THE PROGRAM

 

5.1.                              Communications from Third Parties. 
Cardinal Health and the Cardinal Health Employees shall use their best
efforts to advise Acorda of all comments, statements, requests and inquiries of
the medical profession or any other third parties relating to the Products that
are not addressed by either Product Labeling or the Product Promotional
Materials, of which Cardinal Health becomes aware.  All responses to such communications to the medical profession or
such other third parties shall be handled solely by Acorda.  Cardinal Health shall provide reasonable
assistance to Acorda to the extent requested by Acorda, and at Acorda’s cost
and expense, to fully respond to such communications.

 

5.2.                              Government Agencies.  All
communications with government agencies, including the FDA, concerning the
Products shall be the sole right and responsibility of Acorda.  Cardinal Health shall assist Acorda with
respect to such communications with government agencies to the extent requested
by Acorda, and at Acorda’s cost and expense, and shall not independently
communicate with government agencies except to the extent required by applicable
laws.  Cardinal Health shall use its
best efforts to provide Acorda with any documents or information reasonably
requested by Acorda for purposes of responding to any communications with
government agencies within seventy-two (72) hours of Acorda’s request.

 

5.3.                              Customer Communications.  In
addition to Detailing, Cardinal Health shall assist Acorda with respect to
customer communications (as reasonably requested by Acorda and at Acorda’s cost
and expense) within the Territory and shall regularly advise Acorda of market,
economic, regulatory and other developments of which Cardinal Health may become
aware which may affect the sale of the Products in the Territory.

 

5.4.                              Appointment of Coordinators.  The
parties shall each appoint an authorized coordinator of the Program
(“Coordinators”) between whom all communications required or desired to be
given will be sent and between whom Detailing activities will be
coordinated.  Within thirty (30) days of
signing this Workplan, each party will notify the other as to the name of its
Coordinator.  Each party may replace its
Coordinator at any time, upon notice to the other party.

 

5.5.                              Review of Results.  The
parties shall meet periodically, but at least once per calendar quarter, to
review and discuss the actual results compared to the marketing plans for
Detailing of the Products.  Acorda shall
regularly and promptly share with Cardinal Health all reports, audits and other
data it develops relative to the Program.

 

ARTICLE
VI

COMPENSATION

 

6.1.                              Amount and Time of Payment.  For
services hereunder, Acorda shall pay to Cardinal Health Fees set forth in
Schedule 6.1 of this Workplan and incorporated by reference (the “Services
Fee”), which shall be payable as set forth in the payment schedule set forth
therein.

 

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6.2.                              Early Termination Fee.  In
the event Cardinal Health terminates this Workplan pursuant to Section 14(b) or
14(c) of the RxPedite Agreement, or either party terminates this Workplan
pursuant to Section 14(d) of the RxPedite Agreement, Acorda shall pay to
Cardinal Health an early termination fee as set forth on Schedule 6.2 (the
“Early Termination Fee”).  The Early
Termination Fee has been agreed to as a reasonable estimation of reimbursement
of Cardinal Health’s expenses in preparing to perform under this Workplan and
its expectancy interest, and shall not be construed or deemed to be a penalty.

 

6.3.                              Acorda’s Termination, Removal, or Hiring of
Representatives or Managers.

 

(a)                                  Acorda acknowledges that Cardinal Health has
or will incur costs and expenses in connection with recruiting and hiring
Cardinal Health Employees.  If during
the Term of this Workplan, Acorda (i) hires or retains as its own employee or
as an independent contractor or agent any one or more of the Cardinal Health
Employees, such employment to begin after the first twelve (12) months of the
Program Launch, but prior to the end of the Initial Term, or (ii) requests
termination or removal from the Program of any Cardinal Health Employee, other
than pursuant to Section 2.8, or due to a failure of any Cardinal Health
Employee to comply with the obligations under Section 2.6,  and such Cardinal Health Employee is in
fact so terminated or removed by Cardinal Health, Acorda shall pay Cardinal
Health a fee in connection with such Cardinal Health Employee in the amounts
set forth in the attached Schedule 6.3, for each such Cardinal Health Employee
so hired, retained, terminated, or removed. Cardinal Health shall fill any
vacancy created by Acorda’s hiring of Cardinal Health Employee pursuant to this
Section as provided in Section 2.9. 
Acorda shall not have the right to hire or retain any Cardinal Health
Employee until after the first twelve (12) months of the Initial Term.

 

(b)                                 Notwithstanding Section 6.3(a) above, during
the six (6) month period immediately prior to the end of the later of the
Initial Term (if no Renewal Term is exercised) or the last exercised Renewal
Term, as applicable, Acorda shall have the right to identify those
Representatives, National Account Managers, and/or Medical Science Liaisons
Acorda desires to hire upon expiration of this Workplan (collectively, the
“Targeted Employees”) and to negotiate with any Targeted Employee concerning
the terms on which Acorda might hire that Targeted Employee. Acorda shall have
a period of thirty (30) days (the “Employee Selection Period”) following the
expiration of this Workplan to hire such Targeted Employees.  Cardinal Health agrees not to interfere with
the Acorda’s solicitation and hiring of the Targeted Employees prior to or
during the Employee Selection Period, and Cardinal Health will assist Acorda in
the transition of Targeted Employees from Cardinal Health to Acorda.  For a period of twelve (12) months after the
expiration of the Employee Selection Period: (a) the Acorda shall not hire or
retain as an employee or as agent or independent contractor any Cardinal Health
Employees that are not Targeted Employees or are not actually hired by Acorda
during the Employee Selection Period, and (b) Cardinal Health agrees not to
solicit for hire as an employee, agent or independent contractor any Targeted
Employee hired by Acorda during the Employee Selection Period.

 

10

 

6.4.                              Reimbursement of Expenses.  In
addition to any expenses set forth in Section 5 of the RxPedite Agreement,
Acorda shall reimburse Cardinal Health for those expenses set forth in Schedule
6.1, including but not limited to travel expenses under Section 2.6(j).

 

6.5                                 Cardinal Health Record Keeping: Inspection by
Acorda.  Cardinal Health shall keep accurate records
in sufficient detail as to costs and expenses for which Acorda must reimburse
Cardinal Health under this Workplan. 
Upon Acorda’s reasonable request made during or within one (1) year
after the Term of this Workplan, and at Acorda’s expense, Cardinal Health shall
permit Acorda’s  designated employees or
agents to have access during ordinary business hours to records of such costs
and expenses in order to verify the accuracy of amounts reimbursed by Acorda to
Cardinal Health.  Acorda and its
designated employees or agents shall maintain in confidence all such cost and
expense records of Cardinal Health.

 

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS 

 

7.1.                              By Cardinal Health.   Cardinal Health represents,
warrants, and covenants to Acorda, as of execution of this Workplan and during
the Term of this Workplan, as follows:

 

(a)                                  that Cardinal Health and the Cardinal Health
Employees shall perform the Detailing in a professional and timely manner; and

 

(b)                                 that Cardinal Health and the Cardinal Health
Employees shall comply with all laws, rules and regulations that apply to the
performance of services under this Workplan, including but not limited to the
PDMA, the Medicare and Medicaid Anti-Kickback Act (42 U.S.C. § 1320a-7b(a)),
the Civil False Claims Act (31 U.S.C. § 3729(a)), Sections 1128A, 1128B, and
1877 of the Social Security Act (42 U.S.C. §§ 1320a-7a, -7b, and 1395nn), the
Health Care Fraud Act (18 U.S.C. § 1347), and the Criminal False Claims Act (18
U.S.C. § 287), as amended from time to time, as well as similar applicable
state laws.

 

7.2.                              By Acorda.   Acorda represents, warrants, and covenants to
Cardinal Health, as of execution of this Workplan and during the Term of this
Workplan,  as follows:

 

(a)                                  that Acorda is under no obligation to any
third party that would prevent the execution of this Workplan or interfere with
its performance under this Workplan;

 

(b)                                 that Acorda shall comply with all laws, rules
and regulations that apply to the Products and their sale, the Program, and
this Workplan, including but not limited to the Act, the PDMA, the Medicare and
Medicaid Anti-Kickback Act (42 U.S.C. § 1320a-7b(a)), the Civil False Claims
Act (31 U.S.C. § 3729(a)), Sections 1128A, 1128B, and 1877 of the Social
Security Act (42 U.S.C. §§ 1320a-7a, -7b, and 1395nn), the Health Care Fraud
Act (18 U.S.C. § 1347), and the Criminal False Claims Act (18 U.S.C. § 287), as
amended from time to time, as well as similar applicable state laws, all to the
extent that such laws, rules and regulations apply to Acorda;

 

11

 

(c)                                  that the Product Labeling and Product
Promotional Materials are accurate, complete, and in compliance with the Act
and all rules and regulations of the United States, including without
limitation, any rules, regulations or guidelines issued by the FDA; and

 

(d)                                 that, as of the Effective Date and to
Acorda’s knowledge, the manufacture, sale, and distribution of the products do
not infringe any patent or other proprietary rights of third parties, and the
Products have all necessary governmental approvals and may be lawfully Detailed
and sold by Acorda and the Representatives in the Territory.

 

ARTICLE VIII

ADVERSE REACTION REPORTING AND REGULATORY MATTERS

 

8.1.                              Immediate Notification.  Each
of Cardinal Health and Acorda agrees to notify the other party as soon as
reasonably practicable of any information that each may obtain or learn
concerning any Product or package complaint or any serious unexpected side
effect, injury, toxicity, or sensitivity reaction or any unexpected incidence
of severity thereof associated with the clinical uses, studies, investigations,
tests and marketing of the Products, whether or not determined to be
attributable to the Products (each, an “Event”).  “Serious” as used in this 
Section 8.1 refers to an experience which results in death, permanent or
substantial disability, in-patient hospitalization, prolongation of existing
in-patient hospitalization, a congenital anomaly or cancer, or a result of an
overdose or life threatening condition. 
“Unexpected” as used in this 
Section 8.1 refers to (a) conditions or developments not previously
submitted to governmental Agencies or encountered during clinical studies of
the Products and not reflected in the Product Promotional Materials or the
Product Labeling, or (b) conditions or developments occurring with greater
frequency, severity, or specificity than shown by information previously
submitted to governmental Agencies or encountered during clinical studies of
the Products and not reflected in the Product Promotional Materials or the
Product Labeling.  Each party shall also
notify the other in a timely manner of any other adverse experience, i.e., any
unfavorable and unintended change in the structure (signs), function (symptoms)
or chemistry (laboratory data) of the body temporally associated with the use
of the Products, whether or not considered related thereto.  Acorda has sole and exclusive right and authority
to report any such Event to government authorities.

 

8.2.                              Threatened Agency Action. 
Cardinal Health and Acorda shall each immediately notify the other party
of any information that each may obtain or learn regarding any threatened or
pending action by an Agency which may affect the Products.  Cardinal Health shall, at the request of
Acorda and at the cost and expense of Acorda, cooperate with Acorda in
formulating a procedure for taking appropriate action in response to such
information.  Unless compelled by law,
Cardinal Health shall not respond to an Agency without the prior written
consent of Acorda.

 

8.3.                              Training.                                                Cardinal Health and Acorda shall develop
appropriate instructions in the Training Program for the Cardinal Health
Employees as to handling of information received or obtained in accordance with
Sections 8.1 and 8.2.

 

12

 

ARTICLE IX

RETURN/RECALL

 

9.1.                              Returned Products.

 

(a)                                  Acorda shall be responsible for handling all
returned Products, including shipment and compensation or credit for the
returned Products.  Any Products
inadvertently returned to Cardinal Health shall be shipped to Acorda or another
destination at Acorda’s direction, in compliance with Acorda’s returned goods
policy, and Cardinal Health shall advise the customer who made the return that
the Products have been returned to Acorda. 
Acorda shall reimburse Cardinal Health’s shipping and other costs in
connection with the handling of such returned Products within thirty (30) days
of delivery to Acorda of Cardinal Health’s statement for such costs.  Upon request Cardinal Health shall provide
Acorda with documentation relating to such costs.

 

(b)                                 At Acorda’s request, Cardinal Health shall
assist Acorda in obtaining and receiving any Products that have been recalled,
and any costs incurred by Cardinal Health with respect to participating in any
such recall shall be reimbursed by Acorda within thirty (30) days of delivery
to Acorda of Cardinal Health’s statement for such costs.

 

ARTICLE X

TERM AND TERMINATION

 

10.1.                        Term.  This Workplan shall take
effect on the date on which both parties execute this Workplan and shall
continue for a period of twenty-four (24) months after the Program Launch (the
“Initial Term”), unless terminated earlier as set forth herein.  Notwithstanding the foregoing, Acorda may,
at its option upon written notice to Cardinal Health at least one hundred
twenty (120) days prior to the expiration of the Initial Term, and with the
written consent of Cardinal Health, extend the Initial Term for one additional
year (the “Renewal Term”).  If Acorda
desires to extend the Initial Term, the parties shall negotiate in good faith
the provisions of Section 6.1 regarding Service Fees.  For purposes of this Workplan, “Term” shall include both the
Initial Term and the Renewal Term, if applicable.

 

10.2                           Termination Due To Delay in Product Launch.  If
the Product is not approved by the FDA by October 31, 2006, either party may
terminate this Workplan upon sixty (60) days written notice to the other.

 

10.3                           Termination Due To Regulatory And Other
Problems.  If the Product is not being marketed due to
regulatory problems, court or administrative proceedings, product liability
claims, recalls, raw materials shortages, or similar factors beyond the control
of Acorda, then, either party may terminate this Workplan upon thirty (30) days
written notice to the other.

 

13

 

ARTICLE XI

INDEMNIFICATION

 

11.1                           Additional Indemnification Obligations.  In
addition to those indemnification obligations set forth in Section 11 of the
RxPedite Agreement, the parties agree, that solely with respect to the services
provided under this Workplan, the parties shall each have additional
indemnification obligations as set forth in this Article XI.  For purposes of this Article 12, the terms
“Claim”, “Client Group”, and “Cardinal Health Group” shall have the meanings
set forth in the RxPedite Agreement.

 

11.2.                        Indemnification by Cardinal Health.  In
addition to those Claims for which Cardinal Health is obligated to indemnify,
defend and hold the Client Group harmless under the RxPedite Agreement,
Cardinal Health shall also be obligated to indemnify, defend and hold the
Client Group from Claims made, brought or threatened by third parties and based
upon or resulting from (a) Cardinal Health’s or Cardinal Health Employee’s
violation of or failure to comply with all applicable laws relating to the
promotion, distribution and sale of the Products, including but not limited to
the Act, the PDMA, the Medicare and Medicaid Anti-Kickback Act (42 U.S.C. §
1320a-7b(a)), the Civil False Claims Act (31 U.S.C. § 3729(a)), Sections 1128A,
1128B, and 1877 of the Social Security Act (42 U.S.C. §§ 1320a-7a, -7b, and
1395nn), the Health Care Fraud Act (18 U.S.C. § 1347), and the Criminal False
Claims Act (18 U.S.C. § 287), as amended from time to time, as well as similar
applicable state laws, and (b) a breach of this Workplan.

 

11.3.                        Indemnification by Acorda.  In
addition to those Claims for which Acorda is obligated to indemnify, defend and
hold the Cardinal Health Group harmless under the RxPedite Agreement, Acorda
shall also be obligated to indemnify, defend and hold the Cardinal Health Group
from Claims made, brought or threatened by third parties and based upon or
resulting from (a) Acorda’s violation of or failure to comply with all
applicable laws relating to the manufacture, sale, distribution, possession and
use of the Product, the Program and this Workplan, including but not limited to
the Act, the PDMA, the Medicare and Medicaid Anti-Kickback Act (42 U.S.C. §
1320a-7b(a)), the Civil False Claims Act (31 U.S.C. § 3729(a)), Sections 1128A,
1128B, and 1877 of the Social Security Act (42 U.S.C. §§ 1320a-7a, -7b, and
1395nn), the Health Care Fraud Act (18 U.S.C. § 1347), and the Criminal False
Claims Act (18 U.S.C. § 287), as amended from time to time, as well as similar
applicable state laws; (b) Detailing of the Products, except to the extent such
Damages arise from a negligent or wrongful act or omission of Cardinal Health;
(c) the accuracy or completeness of the Product Labels, Product Promotional
Materials, or the Training Program; and (d) a breach of this Workplan.

 

11.4.                        Other Obligations.  All
other obligations of the parties with respect to indemnification shall be as
set forth in the RxPedite Agreement.

 

ARTICLE XII

MISCELLANEOUS

 

12.1.                        Independent Contractor. 
Cardinal Health is being retained and shall perform hereunder strictly
as an independent contractor. The Cardinal Health Employees shall not be, and

 

14

 

shall not be considered to be, employees of
Acorda for any purpose, and shall at all times remain employees of Cardinal
Health, subject to Section 6.3.  Neither
party shall have any responsibility for the hiring, termination, compensation,
benefits or other conditions of employment of the other party’s employees,
except as otherwise provided in this Workplan.

 

12.2.                        Entire Workplan: Modification.  This
Workplan, together with the RxPedite Agreement, contains the entire and
exclusive agreement between the parties in respect of the subject matter hereof
and supersedes and cancels all previous agreements, negotiations, commitments
and writings between the parties hereto in respect of the subject matter
hereof.  Except as provided herein, this
Workplan may not be changed or modified in any manner or released, discharged,
abandoned or otherwise terminated unless in writing and signed by the duly
authorized officers or representatives of the parties.  If and to the extent there are
inconsistencies between the RxPedite Agreement and this Workplan, the terms of
the RxPedite Agreement shall govern.

 

12.3.                        Execution in Counterparts.  This
Workplan may be executed in counterparts, each of which, when executed and
delivered, shall be deemed to be an original and all of which together shall
constitute one and the same document.

 

12.4.                        Maintenance of Records. 
Cardinal Health and Acorda each agree that throughout the Term of this
Workplan and for a period of six (6) years after the termination of this
Workplan, each will maintain records and otherwise establish procedures to
assure compliance with all regulatory, professional, and other applicable legal
requirements which relate to the Detailing and marketing of the Products and if
applicable, with the other services and activities to be performed hereunder.

 

IN
WITNESS WHEREOF, the parties have caused this Workplan to be executed by their
duly authorized officers.

 

	
  CARDINAL HEALTH PTS, INC.

  	
  ACORDA THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Anthony Cherichella

  	
   

  	
  By:

  	
  /s/ Mary Fisher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Anthony Cherichella

  	
   

  	
  Name:

  	
  Mary Fisher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Title:

  	
  Vice President of
  Commercial Operations

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  September 22, 2003

  	
   

  	
  Date:

  	
  September 22, 2003

  	
   

  

 

15

 

Schedule 1.1(o)

 

List of Products

 

Fampridine
SR

 

16

 

Schedule 1.1(t)

 

Definition of Territory

 

 

The Territories shall be within the continental United States
and shall be agreed to by the parties prior to the Representative Commencement
Date.

 

17

 

Schedule 2.3

 

National Account Manager Responsibilities

 

•                  The National Account Managers will
participate in development of managed care and government contracting and
reimbursement strategies as well as value add programs for select managed care
and government accounts. The National Account Managers will also work with the
Representatives to create provider demand for Fampridine-SR and to coordinate
provider pull-through activities with the sales force once the product is under
contract or has achieved favorable reimbursement status with an account, as
described in more detail below.

 

•                  Generally, the National Account Managers
will:

 

•                  Identify key players in the category and
develop an understanding their needs.

 

•                  Position the benefits of Fampridine-SR in a
way that is relevant and appealing to those providers.

 

•                  Develop an understanding of the key
reimbursement issues, such as Formulary, CMS or other.

 

•                  Develop an understanding of employer needs
and the role of quality initiatives such as HEDIS.

 

•                  Develop an understanding of how to impact
Formulary pull-through.

 

•                  Develop an understanding of the role of
specialty carve-outs and carve-ins.

 

•                  Develop an understanding of the product
information needs of providers.

 

•                  Seek out viable disease management initiative
opportunities.

 

•                  Find maximum price points.

 

•                  Develop an understanding of trends that may
affect the use and/or reimbursement on the product in the future.

 

•                  The National Account Managers will also work
closely with the Acorda management team, Cardinal Health Managers and
Representatives to:

 

•                  Identify accounts in each sales region

 

•                  Identify model types/membership bases

 

•                  Determine who provides health care for major
employers in each sales region

 

18

 

•                  Once accounts are identified, the National
Account Managers will work closely with Cardinal Health Managers and
Representatives to:

 

1)              Contact appropriate decision-makers in order
to determine:

 

(a)                Formulary policies

(b)               Bids and contracts policies

(c)                Rebate and charge-back policies

(d)               Representative policies (promotion and
sampling policies)

 

•                  Provider lists

 

(e)                P&T Committee members

 

•                  The National Account Managers will also work
closely with the Acorda management team, Cardinal Health Managers and
Representatives to ensure company approved marketing messages are communicated
for Fampridine-SR  to key
decision-makers within each account in an effort to gain formulary acceptance.

 

•                  The National Account Managers will also work
closely with the Acorda management team, Cardinal Health Managers and
Representatives to develop strategies and tactics to gain formulary approval
within select accounts.

 

1)              Identify champion physicians

2)              Encourage champion physicians to write
Director of Pharmacy requesting product addition to formulary

3)              With numerous requests, product may be reviewed
by the P&T Committee

4)              P&T Committee meeting (product may be
reviewed a few times before approval)

5)              Formulary approval

 

•                  The National Account Managers will coordinate
the capture of information for each account and ensure effective communication
throughout the organization.

 

1)              What type of formulary is in place with each
account (none, open, closed, etc.)

2)              Who provides the pharmacy benefit (in-house,
contracted pharmacies, or both)

3)              Is PBM involved? (information about their
formulary, contracts)

4)              What type of pharmacy intervention is used,
if any?

 

(a)                Counter detailing

(b)               Differential co-pays (e.g. $5.00 = generic;
$10.00 = brand)

(c)                Utilization Review (e.g. cost vs. efficacy)

(d)               Financial incentives

(e)                Online adjudication at the pharmacy level
(non-payment for items that are not on the formulary)

 

•                  The National Account Managers will lead and
coordinate the investigation of identified accounts to assess priority within
the sales regions.  Typical
investigation would include inquiry into the following:

 

19

 

1)              How many MDs are affiliated with the account?

 

(a)                Is it a significant number?

(b)               Are there key groups or individuals involved?

(c)                Are any of them high volume prescribers?

 

2)              Geography covered

 

(a)                What sales territories are impacted the most?

(b)               Does it impact other sales regions?

 

3)              Who owns the plan?

 

(a)                Acorda/Cardinal may have contracts with that
organization

(b)               History of parent organizations’ ability to
impact business

 

4)              Names of key contacts

 

(a)                Pharmacy director

(b)               Clinical pharmacists

(c)                Purchasing director

(d)               Medical director

 

5)              Is there a P&T Committee?

 

(a)                Who are the members?

(b)               How do we support this group?

(c)                Are these individuals accessible to call on?

 

6)              Is there a formulary?

 

(a)                What type of formulary?

(b)               Goal: obtain formulary status for
Fampridine-SR

 

7)              How do members fill their prescriptions?

 

(a)                In-house pharmacies will have more control
over prescriptions than retail pharmacies

(b)               Which PBM processes the claims? Different
PBMs have varying levels of control over prescription benefits

 

8)              Resources available to help in this process
include:

 

(a)                Local media

(b)               Physician offices

(c)                Scott Levin databases

(d)               Acorda Management

(e)                Cardinal Management

 

20

 

•                  At the direction of the Acorda management
team, the National Account Managers will work with each sales territory to
develop specific action plans or pull-through programs for select accounts.
(Utilizing all available information)

 

1)              The overall impact that managed care has in
each sales territory will be assessed by compiling the following information:

 

(a)                List all managed care plans which do business
in the sales region

(b)               How many target physicians are affiliated
with these plans?

(c)                Determine which plans have restrictive
formularies

 

2)              For target physicians that are not affiliated
with any managed care plans; direct sales management and Representatives to:

 

(a)                Follow regular promotional strategies

(b)               Monitor for changes

(c)                Determine whether mail-service organizations
or PBMs are impacting physician prescribing habits

 

•                  Ask nurse or receptionist if they receive any
phone calls from pharmacists asking for permission to change prescriptions

•                  What types of changes? (Generic substitution
or brand interchange?)

•                  Which products/companies are involved?

•                  Collaborate with managed care personnel to
determine our relationship with them

 

(d)               For target physicians that are affiliated
with accounts that do not have restrictive formularies:

 

•                  Follow regular promotional strategy

 

•                  Ensure that physicians are aware that
prescriptions for Acorda’s Fampridine-SR will be reimbursed by the account plan
with which they are affiliated

•                  Take advantage of any favorable formulary
listing Acorda has by incorporating this into the promotional message

•                  Determine whether mail-service or PBMs are
impacting prescribing (not likely)

 

•                  Monitor for change

 

•                  For target physicians that are affiliated
with account plans that have restrictive formularies

 

•                  Be aware of how Fampridine-SR is impacted

•                  Promote product if available on formulary

 

21

 

Schedule 2.4

 

Medical Science Liaison Responsibilities

 

•                  Acorda and Cardinal Health will work on a
program designed to achieve the following objectives:

 

•                  educate target physicians and their
professional staffs on current trends in SCI and MS management

 

•                  increase the flow of SCI and MS patients to
Fampridine-SR

 

•                  facilitate Phase IV and V clinical studies
for Fampridine-SR

 

•                  support hospital, P&T committee, and  managed care formulary activities for
Fampridine-SR

 

•                  position Acorda and its neurology product
portfolio with key opinion & thought leaders (OTLs)

 

•                  The Acorda MSL function may have other
responsibilities within the organization, and interact with other functioning
teams. However, the top priority of the Acorda MSL function shall be to
actively engage in activities that support the strategic direction of Fampridine-SR.

 

•                  The Acorda MSL function will be focused on
Centers of Influence (COI) within select sales regions. The MSL for this
program shall be a therapeutic specialist with advanced scientific training and
a degree in life sciences (doctorates, advanced professional healthcare
degrees, or masters in science). The majority of MSLs currently in industry are
Doctors of Pharmacy (Pharm.D.), with a smaller percentage holding Ph.D. or M.D.
degrees. Excellent scientific aptitude is critical to productive interactions
between MSLs and OTLs who are research pioneers and authorities in a
therapeutic field.

 

•                  The rationale for creating the MSL function
is as follows:

 

•                  Provides feedback from key OTLs on how the
company could best position Fampridine-SR and future products by conducting
Regional Advisory Panels to glean opinions on research direction and other
healthcare issues

 

•                  Produces and performs product presentations
for OTLs

 

•                  Serves as the primary company contact with
current and future OTLs by establishing peer relationships based on high levels
of education and understanding of the clinical issues facing practitioners

 

•                  Provides clinical trial and off-label
information to early adopters

 

•                  Collaborates on clinical research protocols
for Phase IIIb and IV trials

 

•                  Manages budgets for clinical grants and
medical education activities

 

22

 

•                  Serves as the “face” of the company’s
pipeline

 

•                  Assists Medical Education department in
setting up guest lectures, symposia and workshops

 

23

 

Schedule
2.10

 

Form of Management Report

 

 

	
  Report Name

  	
   

  	
  Description

  	
   

  	
  Frequency

  
	
  Territory Assignment
  Report

  	
   

  	
  Lists the individuals
  covering each region and territory. 
  If a territory is vacant, the report will indicate the date when the
  territory became vacant and what alternate coverage is being applied (i.e.
  District Manager, Adjacent Rep, etc.)

  In addition, the report
  will indicate the current turnover rate.

  	
   

  	
  Monthly

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Territory Coverage Report

  	
   

  	
  For each territory, the
  report provides the call statistics:

  •      Percentage of call to target audience

  •                       Percentage of samples delivered to target
  audience

  •      Average number of calls/day (calculated on a six month moving
  average).

  The
  report is summarized at the Regional and National levels.

  	
   

  	
  Monthly

  Quarterly

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Statistics Report

  	
   

  	
  For each territory, based
  on NDC Health Information Services data, the report will show:

  •      New Rx

  •      Total Rx

  •      Percent Change for New Rx

  •      Percent Change for Total Rx

  •      New Market Share Percent Change

  •                       Total Market Change Percent Change

  The
  report is summarized at the Regional and National levels.

  	
   

  	
  Monthly

  Quarterly

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory Report

  	
   

  	
  For each Territory, the
  report will document all the sample distribution activities.  The report will reflect the following:

  For each SKU:

  •      Period beginning balance

  •      Total shipments received

  •      Total samples dropped

  •      Total samples returned to distributor

  •      Total adjustments

  •      Period ending balance

  •      Total variance (units / percent)

  The
  report is summarized at the Regional and National levels.

  	
   

  	
  Monthly

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory Exception Report

  	
   

  	
  The report will provide
  details on variances and adjustments related to the distribution of samples
  if any has occurred.

  	
   

  	
  Monthly

  

 

24

 

Certain portions of this
Exhibit have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets [   ] and an asterisk*, have been separately filed with the Commission.

 

Schedule 6.1

 

Service Fees and Payment Schedule

 

REPRESENTATIVES:

 

	
  Number of
  Representatives

  	
   

  	
  [***]

  
	
  Annual
  Representative Fee

  	
   

  	
  [***] per Representative,
  plus expenses

  
	
  Total
  Fees

  	
   

  	
  [***] per year,  plus
  expenses

  

 

•                  The Annual Representative Fee identified
above includes sales force recruitment, salaries, payroll taxes and benefits,
sales force training, administrative and operational support, electronic
territory management systems and sample accountability processes, procedures
and systems, fleet cars, & performance bonuses.

 

•                  The Annual Representative Fee identified
above does not include expenses of regular territory business travel and
promotional budgets.

 

NATIONAL ACCOUNT MANAGERS:

 

	
  Number of
  Representatives

  	
   

  	
  [***]

  
	
  Annual
  Manager Fee

  	
   

  	
  [***] per Manager

  
	
  Total
  Fees

  	
   

  	
  [***] per year

  

 

•                  The Annual Manager Fee identified above
includes Manager salaries, benefits, bonuses, & taxes, fleet cars, project
manager salary, benefits, bonuses, & taxes, recruitment costs (including
travel and turnover), supplies, printing, postage, and miscellaneous items, and
laptops, software and printers

 

•                  The Annual Manager Fee identified above does
not include actual business and promotional expenses as defined and approved by
Acorda, and actual travel and lodging expenses for all training programs and
POA meetings.

 

25

 

Certain portions of this
Exhibit have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets [   ] and an asterisk*, have been separately filed with the
Commission.

 

MEDICAL SCIENCE LIAISONS (“MSL”):

 

	
  Number of
  MSLs

  	
   

  	
  [***]

  
	
  Annual
  MSL Fee

  	
   

  	
  [***] per MSL

  
	
  Total
  Fees

  	
   

  	
  [***] per year

  

 

•                  The Annual MSL Fee identified above includes
MSL compensation during 2 week training period; MSL salary, payroll taxes,
benefits, fleet car, and bonus during program; a project management team that
includes a dedicated account executive and the following shared services:
project manager, HR coordinator, finance coordinator, IT coordinator, and help
desk; recruitment costs, including any turnover and travel during project;
training and development services; territory management and CRM system; support
services (operations and administration); and management fees.

 

•                  The Annual MSL Fee identified above does not
include MSL actual in territory business expenses; and MSL actual travel
expenses for all required participation at corporate training programs and POA
meetings.

 

PRICE CHANGES

 

In
the event of a change in salaries and benefits required to recruit and hire the
Cardinal Health Employees between the Effective Date of this Workplan and the
applicable MSL Commencement Date, NAM Commencement Date or Representative
Commencement Date, the parties shall negotiate in good faith a change to the
Service Fees to account for such change in salaries and benefits.

 

PAYMENT SCHEDULE

 

•                  Acorda shall pay [***] of the total amount of the first year’s fees
for the Medical Science Liaisons on the MSL Commencement Date.

•                  Acorda shall pay [***] of the total amount of the first year’s fees
for the National Account Managers on the NAM Commencement Date.

•                  Acorda shall pay [***] of the total amount of the first year’s fees
for the Representatives on the Representative Commencement Date.

•                  The remainder of the fees for the first year
shall be invoiced in equal pro-rated payments on the 1st day of each month
beginning with the commencement of promotional activity.

 

26

 

Certain portions of this Exhibit
have been omitted pursuant to a request for confidentiality. Such omitted
portions, which are marked with brackets [  
] and an asterisk*, have been separately filed with the Commission.

 

Schedule 6.2

 

Early Termination Fee

 

The
Early Termination Fee under Section 6.2 shall be calculated as follows:

 

(i)                                     If termination occurs prior to Program
Launch, Acorda shall pay to Cardinal Health an amount equal to [***] of the
annual base salaries of all Cardinal Health Employees hired as of such date of
termination.

 

(ii)                                  If termination occurs during the first six
(6) months after Program Launch, Acorda shall pay to Cardinal Health an amount
equal to [***] of the annual
base salaries of all of the Cardinal Health Employees.

 

(iii)                               If termination occurs during the months seven
(7) through eighteen (18) after Program Launch, Acorda shall pay to Cardinal
Health an amount equal to [***]
of the annual base salaries of all of the Cardinal Health Employees.

 

(iv)                              If termination occurs after completion of the
eighteenth (18) month after Program Launch, but prior to the end of the Initial
Term, Acorda shall pay to Cardinal Health an amount equal to [***] of the annual base salaries of all of the
Cardinal Health Employees.

 

In
the event of any such termination and upon the request of Acorda, Cardinal
Health shall provide reasonable documentation evidencing the base salaries of
each of the Cardinal Health Employees.

 

For
purposes of this Schedule 6.2, “annual base salaries of all of the Cardinal
Health Employees” means the actual, annualized base salaries, on an aggregate
basis, of Cardinal Health Employees employed by Cardinal Health at the time
that Cardinal Health receives notice of an early termination.

 

For
example, if the Early Termination Fee in Section 6.2 is triggered in month nine
(9) of the Initial Term, and at such time Cardinal Health employs twenty (20)
Cardinal Health Employees of which there are eighteen (18) Representatives, one
(1) National Account Manager and one (1) Medical Science Liaison, and the
actual annual base salaries for each is $[**], $[**] and $[***],
respectively, then the Early Termination Fee shall be calculated as follows:

 

Early
Termination Fee = [**]% x
[(18 x [***]) + (1 x [**]) + (1 x [**])] = $[**]

 

27

 

Certain portions of this
Exhibit have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets [   ] and an asterisk*, have been separately filed with the Commission.

 

Schedule
6.3

 

Acorda’s
Hiring of Cardinal Health Employees

 

(a)                                  As to each Cardinal Health Employee hired or
retained by Acorda pursuant to Section 6.3 or terminated or removed pursuant to
Acorda’s request in accordance with Section 6.3 (either, a “Cardinal
Termination Event”), the amount to be paid by Acorda shall be as follows:

 

(i)                                     If a Cardinal Health Employee is hired or
retained by Acorda pursuant to Section 6.3 during months thirteen (13) through
eighteen (18) after Program Launch or if Acorda requests termination or removal
of a Cardinal Health Employee pursuant to Section 6.3 during any of the first
eighteen (18) months of the Initial Term, Acorda shall pay to Cardinal Health [***] of such Cardinal Health Employee’s scheduled
aggregate annual base salary.

 

(ii)                                  If a Cardinal Termination Event occurs with
respect to a Cardinal Health Employee during months nineteen (19) through
twenty-four (24) after Program Launch, Acorda shall pay Cardinal Health [***] of such Cardinal Health Employee’s scheduled
aggregate annual base salary.

 

(iii)                               If a Cardinal Health Employee is hired or
retained by Acorda upon completion of the Initial Term, Acorda shall have no
further obligation to pay any fee under this Schedule 6.3 or any other Service
Fees with respect to such Cardinal Health Employee so retained or hired by
Acorda.

 

(b)                                 All such amounts shall be due and payable
within thirty (30) days after the effective date of the applicable Cardinal
Termination Event, and Acorda’s receipt of Cardinal Health’s invoice for
amounts due and appropriate supporting documentation.

 

(c)                                  For purposes of this Schedule 6.3, “scheduled
aggregate annual base salary” means the actual, annualized base salary, on an
aggregate basis, of the Cardinal Health Employee who is the subject of a
Cardinal Termination Event at the time of such event.  For example, if Acorda hires a Cardinal Health Employee in month
fifteen (15) of the Initial Term and such employee’s actual annual base salary
is [***] at such time, then
Acorda shall pay to Cardinal Health the amount of [***], which represents [***] of such employee’s actual annual base
salary.

 

28Exhibit
10.20

 

Certain portions of this Exhibit have been omitted pursuant to a
request for confidentiality. Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

LICENSE AGREEMENT

 

BETWEEN

 

ACORDA THERAPEUTICS, INC.

 

AND

 

THE MAYO FOUNDATION FOR

EDUCATION AND RESEARCH

 

Dated: 
September 8, 2000

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS.

  
	
   

  	
  1.1

  	
  “Affiliate”

  
	
   

  	
  1.2

  	
  “FDA”

  
	
   

  	
  1.3

  	
  “Field”

  
	
   

  	
  1.4

  	
  “First Commercial Sale”

  
	
   

  	
  1.5

  	
  “Key Claims”

  
	
   

  	
  1.6

  	
  “Know-How”

  
	
   

  	
  1.7

  	
  “Invention”

  
	
   

  	
  1.8

  	
  “Licensed Patents”

  
	
   

  	
  1.9

  	
  “Licensed Product”

  
	
   

  	
  1.10

  	
  “Licensed Technology”

  
	
   

  	
  1.11

  	
  “Marketing Exclusivity
  Rights”

  
	
   

  	
  1.12

  	
  “Material Breach”

  
	
   

  	
  1.13

  	
  “Net Sales”

  
	
   

  	
  1.14

  	
  “Patent Term Extensions”

  
	
   

  	
  1.15

  	
  “Patent Term
  Extensions Information”

  
	
   

  	
  1.16

  	
  “Party”

  
	
   

  	
  1.17

  	
  “PLA”

  
	
   

  	
  1.18

  	
  “Regulatory Review Period”

  
	
   

  	
  1.19

  	
  “Royalty Term”

  
	
   

  	
  1.20

  	
  “Sublicensee”

  
	
   

  	
  1.21

  	
  “Termination”

  
	
   

  	
  1.22

  	
  “Territory”

  
	
   

  	
  1.23

  	
  “Valid Claim”

  
	
   

  	
   

  	
   

  
	
  2.

  	
  GRANT OF
  LICENSE.

  
	
   

  	
  2.1

  	
  License Grant

  
	
   

  	
  2.2

  	
  Reserved Rights

  
	
   

  	
  2.3

  	
  Representations and Warranties.

  
	
   

  	
  2.4

  	
  Right of First Offer

  
	
   

  	
  2.5

  	
  Opportunity to
  Conduct Clinical Studies

  
	
   

  	
   

  	
   

  
	
  3.

  	
  PAYMENTS;
  ROYALTIES.

  
	
   

  	
  3.1

  	
  Upfront Consideration Royalty.

  
	
   

  	
  3.2

  	
  Milestone
  Royalties for Licensed Products

  
	
   

  	
  3.3

  	
  Running
  Royalties for Sales of Licensed Products.

  
	
   

  	
  3.4

  	
  Third Party Royalties

  
	
   

  	
  3.5

  	
  Certain
  Affiliate and Sublicensee Royalties

  
	
   

  	
  3.6

  	
  Obligation to Pay Royalties

  
	
   

  	
  3.7

  	
  Royalties on Combined
  Products

  

 

i

 

	
  4.

  	
  PAYMENTS
  AND RECORDS.

  
	
   

  	
  4.1

  	
  Payment

  
	
   

  	
  4.2

  	
  Mode of Payment

  
	
   

  	
  4.3

  	
  Taxes

  
	
   

  	
  4.4

  	
  Records Retention

  
	
   

  	
  4.5

  	
  Audit Request

  
	
   

  	
   

  	
   

  
	
  5.

  	
  DUE DILIGENCE.

  
	
   

  	
  5.1

  	
  Diligence

  
	
   

  	
  5.2

  	
  Reports

  
	
   

  	
  5.3

  	
  Short-Form Arbitration

  
	
   

  	
   

  	
   

  
	
  6.

  	
  “OWNERSHIP;
  PATENTS; MARKETING EXCLUSIVITY; PATENT TERM EXTENSIONS”

  
	
   

  	
  6.1

  	
  Ownership.

  
	
   

  	
  6.2

  	
  Patent Prosecution
  and Maintenance.

  
	
   

  	
  6.3

  	
  Patent Enforcement.

  
	
   

  	
  6.4

  	
  Infringement
  Action by Third Parties.

  
	
   

  	
  6.5

  	
  Marketing
  Exclusivity/Patent Term Extensions

  
	
   

  	
   

  	
   

  
	
  7.

  	
  PUBLICATION;
  CONFIDENTIALITY.

  
	
   

  	
  7.1

  	
  Publication

  
	
   

  	
  7.2

  	
  Confidentiality;
  Exceptions.

  
	
   

  	
  7.3

  	
  Exceptions to Obligation

  
	
   

  	
  7.4

  	
  Confidentiality
  regarding Patient Information

  
	
   

  	
   

  	
   

  
	
  8.

  	
  INDEMNIFICATION.

  
	
   

  	
  8.1

  	
  Products Liability

  
	
   

  	
  8.2

  	
  MAYO Indemnification.

  
	
   

  	
  8.4

  	
  Notice; Waiver of
  Subrogation.

  
	
   

  	
   

  	
   

  
	
  9.

  	
  TERM
  AND TERMINATION.

  
	
   

  	
  9.1

  	
  Term

  
	
   

  	
  9.2

  	
  Breach

  
	
   

  	
  9.3

  	
  Insolvency or Bankruptcy

  
	
   

  	
  9.4

  	
  Termination by ACORDA

  
	
   

  	
  9.5

  	
  Right to Sell Stock on Hand

  
	
   

  	
  9.6

  	
  Effect of Termination.

  
	
   

  	
  9.7

  	
  Accrued and
  Surviving Rights and Obligations

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS PROVISIONS.

  
	
   

  	
  10.1

  	
  Relationship of Parties

  
	
   

  	
  10.2

  	
  Assignment

  
	
   

  	
  10.3

  	
  Further Actions

  

 

ii

 

	
   

  	
  10.4

  	
  Force Majeure

  
	
   

  	
  10.5

  	
  No Trademark Rights

  
	
   

  	
  10.6

  	
  Public Announcements

  
	
   

  	
  10.7

  	
  Notices

  
	
   

  	
  10.8

  	
  Amendment

  
	
   

  	
  10.9

  	
  Waiver

  
	
   

  	
  10.10

  	
  Severability

  
	
   

  	
  10.11

  	
  Compliance with Law

  
	
   

  	
  10.12

  	
  Governing Law and
  Jurisdiction

  
	
   

  	
  10.13

  	
  Entire Agreement of the
  Parties

  
	
   

  	
  10.14

  	
  Descriptive Headings

  
	
   

  	
  10.15

  	
  Nondisclosure

  
	
   

  	
  10.16

  	
  Counterparts

  

 

iii

 

LIST
OF EXHIBITS

 

	
   

  	
  EXHIBIT A

  
	
   

  	
   

  
	
   

  	
  EXHIBIT B

  
	
   

  	
   

  
	
   

  	
  EXHIBIT C

  
	
   

  	
   

  
	
   

  	
  EXHIBIT D

  
	
   

  	
   

  
	
   

  	
  EXHIBIT E

  

 

iv

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT (this “Agreement”) is entered
into as of September 8, 2000 (the “Effective Date”), by and between Acorda
Therapeutics, Inc., a Delaware corporation, having offices at 15 Skyline Drive,
Hawthorne, New York 10532, (“ACORDA”) and The Mayo Foundation for Medical
Education and Research, a Minnesota charitable corporation located at 200 First
Street SW, Rochester, Minnesota 55905 (“MAYO”).

 

PRELIMINARY STATEMENTS

 

A.                                   ACORDA
has sponsored two research programs under the direction of Dr.  Moses Rodriguez and Dr.  Larry Pease, entitled (1) Preclinical
Studies of a Monoclonal Antibody Designed to Promote Central Nervous Repair,
and (2) Molecular Characterization of Antibody-Induced Remyelination and
Isolation of Human Counterparts, (each a “Program” and collectively, the
“Programs”), pursuant to two Sponsored Research Agreements between MAYO and
ACORDA, dated as of October 1, 1995 and March 15, 1998, respectively,
(the “Sponsored Research Agreements”) which are attached hereto as Exhibit A.  These Programs have related to, among other
things, the therapeutic use of humanized and non-humanized antibodies for
treatment of central nervous system conditions and disorders, including
myelination or remyelination in conditions such as spinal cord injuries and
multiple sclerosis.

 

B.                                     MAYO
is the owner of certain right, title and interest to technology made or
otherwise developed in performance of the Programs including certain
inventions, discoveries and patents described in the Sponsored Research
Agreements.

 

C.                                     MAYO
has the right to grant licenses to this technology so that such technology may
be utilized in the public interest, and is willing to grant a license
thereunder to ACORDA.

 

D.                                    ACORDA
has options, pursuant to ACORDA\MAYO Option Agreements dated as of
October 1, 1995 and March 15, 1998 (the “Option Agreements”), which
are attached hereto as Exhibit B, to acquire an exclusive, worldwide
license to such technology and is desirous of obtaining certain rights and
licenses from MAYO relating to the aforementioned technology.

 

E.                                      ACORDA
wishes to exercise the options under both Option Agreements and ACORDA and MAYO
now desire to provide for the license of all technology in all fields
contemplated by the exercise of the options granted under both of the Option
Agreements under one unified set of terms conditions, and for revised
consideration, as provided under this Agreement, which shall be deemed to amend
and supercede the provisions of the Option Agreements.

 

NOW THEREFORE, in consideration of the foregoing and
of the mutual covenants contained in this Agreement, the Parties hereto agree
to the provisions of the Preliminary Statements and as follows:

 

 

1.                                      DEFINITIONS.

 

As used in this
Agreement, the following terms will have the meanings set forth in this
Section 1 unless the context dictates otherwise.

 

1.1                                 “Affiliate” shall mean, with respect to either
person, any corporation or other business entity which controls, is controlled
by or is under common control with such person.  For this purpose, control means the possession of the power to
direct or cause the direction of the management and the policies of an entity
whether through ownership directly or indirectly of fifty percent (50%) or more
of the stock entitled to vote, and for non-stock organizations, the right to
receive over fifty percent (50%) of the profits by contract or otherwise, or if
not meeting the preceding requirement, any company owned or controlled by or
owning or controlling such person at the maximum control or ownership right
permitted in the country where such entity exists.

 

1.2                                 “FDA” shall mean the U.S. 
Food and Drug Administration, or the successor thereto.

 

1.3                                 “Field” shall mean the prevention, mitigation or
treatment of nervous system disorders, diseases or injuries including, without
limitation, pain, and any and all other diagnostic, therapeutic,
pharmaceutical, cosmetic, medical or health care related applications.

 

1.4                                 “First Commercial Sale” shall mean, with
respect to any Licensed Product, the first sale for use or consumption by the
general public of such Licensed Product in any country in the Territory after
all required marketing approvals have been granted, or, if such sale is
otherwise permitted, by the governing health regulatory authority of such
country.

 

1.5                                 “Key Claims” shall have the meaning assigned to such
term in Section 3.2(a).

 

1.6                                 “Know-How” shall mean any and all technical data,
information, inventions, biological materials, trade secrets, and other
intellectual property, whether patentable or unpatentable, conceived or
otherwise developed in the course of and in connection with the Programs, and
all subsequent modifications, enhancements and improvements hereto, excluding
the patent applications and patents within the Licensed Patents.

 

1.7                                 “Invention” shall mean any new and useful invention,
discovery„ process, improvement or other intellectual property conceived of,
first reduced to practice, made or otherwise developed by MAYO, its employees
or agents including Dr.  Moses Rodriguez
and Dr.  Larry Pease, in connection with
and during the term of either of the Programs and this Agreement, and during the
two year period thereafter.

 

1.8                                 “Licensed Patents” shall mean, collectively:

 

(a)                                  United
States Patent No.  5,591,629, (formerly
Application S.N.  08/236,520, filed
April 29, 1994), entitled “Monoclonal Antibodies Which Promote Central
Nervous System Remyelination,” the inventions described and claimed therein,
and any substitutions, extensions, renewals, divisions, patents-of-addition,
continuations, continuations-in-part to the extent the claims are directed to
subject matter specifically described in such patent

 

2

 

(including, but not
limited to, all of those continuations-in-part specifically listed on Exhibit
C), patents issuing thereon or reissues, extensions or supplementary protection
certificates thereof, and any and all patents and patent applications
throughout the Territory corresponding thereto; and

 

(b)                                 All
patents and patent applications, and any substitutions, extensions, renewals,
divisions, patents-of-addition, continuations, continuations-in-part to the
extent the claims are directed to subject matter specifically described in such
patent or patent application, patents issuing thereon or reissues,
re-examinations, extensions or supplementary protection certificates thereof,
and any and all foreign counterparts thereto concerning any invention,
technology or other intellectual property owned in whole or in part by MAYO and
made, first reduced to practice or otherwise developed in connection with the
Programs, whether before or after the date of this Agreement, or derivatives or
analogs thereof, including any and all technology which may be subject to
either of the Option Agreements.

 

1.9                                 “Licensed Product” shall mean any product or
part thereof which is covered, in whole or in part, by a Valid Claim of a
Licensed Patent in the country in which such product is made, used or sold, or
which incorporates or utilizes Know-How.

 

1.10                           “Licensed Technology” shall mean the
Licensed Patents and the Know-How, collectively.

 

1.11                           “Marketing Exclusivity Rights”
shall mean any rights to which a Licensed Product may be eligible in addition
to or in lieu of rights under the Licensed Patents including rights to
exclusivity provided in 21 USC §505, 21 USC §360aa-ee, the Orphan Drug Act, the
marketing exclusivity provisions of Article 8(a) of Directive 65/65/EEC
Relating to Medicinal Products and any other legislation on regulations as
amended from time to time in the Territory applicable to this Agreement
providing for non-patent marketing exclusivity for any Licensed Product whether
such legislation or regulation is operative on the Effective Date of this
Agreement or becomes operative thereafter;

 

1.12                           “Material Breach” shall mean a breach of this
Agreement which is specified in this Agreement as being a material breach, and
in addition, any breach of this Agreement which is so injurious to the
relationship between the Parties that this Agreement should reasonably be
subject to immediate Termination by the non-breaching Party.

 

1.13                           “Net Sales” shall mean, with respect to any Licensed
Product, the gross amount invoiced for such Product by ACORDA, its Affiliates
and Sublicensees, to third parties, less deductions for: (i) trade, quantity
and/or cash discounts, allowances and rebates (including, without limitation,
promotional allowances or discounts or similar allowances) actually allowed or
given; (ii) freight, postage, shipping, insurance and transportation expenses
and similar charges (in each instance, if separately identified in such
invoice); (iii) credits or refunds actually allowed for rejections, defects or
recalls of such Licensed Product, outdated or returned Licensed Product, or
because of rebates or retroactive price reductions; and (iv) sales, value-added
and excise taxes, tariffs and duties, and other taxes directly related to the
sale, to the extent that such items are included in the gross invoice price
(but not including taxes assessed against the income derived from such
sale).  Such amounts shall be determined
from the books and records of

 

3

 

ACORDA, its Affiliates or
its Sublicensees, maintained in accordance with the reasonable accounting
principles used by such entity, consistently applied.

 

1.14                           “Patent Term Extensions” shall mean the
interim or permanent extension ofthe term of any Licensed Patents or claims
covered by any Licensed Patents for any Licensed Product for which MAYO may be
eligible under 35 U.S.C.  § 156 or any
otherU.S.  or non-U.S.  statute providing for extensions of patent
terms;

 

1.15                           “Patent Term Extensions Information”
shall mean information within a non-filing Party’s possession or control which
may be requested by the Party responsible for filing and prosecuting an
application or petition for a Patent Term Extension, such information as may be
requested by the Patent and Trademark Office and execution of all necessary
documentation in connection therewith for the filing Party to make a timely and
complete filing and prosecution of an application for a Patent Term Extension;

 

1.16                           “Party” shall mean ACORDA or MAYO and, when used in the
plural, shall mean ACORDA and MAYO.

 

1.17                           “PLA” shall mean a product license application, or with
respect to any product license application already filed as of the Effective
Date a supplemental product license application thereto, filed with the United
States FDA, or the equivalent regulatory filing required to be filed with the
regulatory authorities in any other jurisdiction outside the United States.

 

1.18                           “Regulatory Review Period” shall mean
the period of time defined in 35 U.S.C. 
§ 156(g) and applicable to any Licensed Product;

 

1.19                           “Royalty Term” shall mean, with respect to each
Product in each country in the Territory, the period commencing on the date of
the First Commercial Sale of such Product and expiring on the earlier of: (a)
the later of (i) the expiration of the last Key Claim covering such Product in
such country, or (ii) the expiration of any exclusive approval period granted
with respect to such Product under the Orphan Drug Act, 21 U.S.C.  § 360aa et.  seq., as amended from time to
time, or (iii) ten years from the First Commercial Sale, or (iv) fifteen years
from the Effective Date; or (b) the Termination of this Agreement.

 

1.20                           “Sublicensee” shall mean any non-Affiliate third
party sublicensed by ACORDA to make, have made, import, use or sell any
Licensed Product.

 

1.21                           “Termination” of this Agreement shall mean the
ending, expiration, rescission, or any other discontinuation of this contract
for any reason whatsoever.

 

1.22                           “Territory” shall mean the entire world.

 

1.23                           “Valid Claim” shall mean either: (i) a claim of an
issued and unexpired patent included in the Licensed Patents, which has not
been held permanently revoked, unenforceable or invalid by a decision of a
court or other governmental agency of competent jurisdiction, which decision is
unappealable or unappealed within the time allowed for appeal, and which claim
has not been admitted to be invalid or unenforceable through reissue or
disclaimer or otherwise, or (ii) a pending claim of a pending patent
application that is classified under Section 1.7 as

 

4

 

Licensed Patents, which
claim (a) was filed in good faith, (b) is reasonably likely to issue, (c) has
not been abandoned or finally disallowed without the possibility of appeal or
refining of said application, and (d) has not been pending for a period in
excess of seven (7) years from the earliest date from which the patent
application was filed or claims priority in such country.

 

2.                                      GRANT OF LICENSE.

 

2.1                                 License Grant. 
Subject to the terms and conditions of this Agreement, MAYO hereby
grants to ACORDA, subject to any rights of the U.  S.  Government under 35
U.S.C.  § 200 etseq.  and all
regulations promulgated pursuant thereto, the exclusive (even as to MAYO),
worldwide right and license under the Licensed Technology to develop, make,
have made, use, import, export, lease, offer to sell, sell, have sold and
otherwise exploit Licensed Products for use in the Field in the Territory, and
to grant, offer for sale and authorize sublicenses with respect to the right
and license granted under this Section 2.1 to other third parties.

 

2.2                                 Reserved Rights.  Notwithstanding the right and license granted in
Section 2.1, MAYO reserves the right to use the Licensed Technology solely
for purposes of education, internal research and verification of adherence to
MAYO’s policies regarding the responsible conduct of research, and for MAYO’s•patient
care, at the discretion of MAYO’s physicians, conducted within MAYO’s
facilities located in Rochester, Minnesota, Scottsdale, Arizona and
Jacksonville, Florida.  MAYO may also
share aliquots of antibody related to Licensed Technology with other academic
institutions solely for non-commercial research purposes as ACORDA may approve
in advance, provided that no antibody shall be shared which is not already
subject to an issued U.S.  Patent or
pending U.S.  patent application, and
provided further, that any such other academic institution must sign a material
transfer agreement in form acceptable to ACORDA, whereby such institution
confirms (a) that the antibody provided is the subject of an issued or pending
Patent, (b) the proprietary rights of ACORDA under this Agreement, and (c) that
all rights to all commercial applications resulting from such institution’s
research making use of such transferred material shall belong exclusively to
MAYO and be considered part of the license granted to ACORDA under this
Agreement.  The Parties agree that the
form of material transfer agreement attached to this Agreement as Exhibit E may
be used for such purpose, provided that MAYO must still obtain ACORDA’s prior
approval for any specific agreement and transfer in each instance.  Nothing in this Section 2.2 shall
permit MAYO to use the Licensed Technology to develop any product for
commercial use, or give any third party such right.

 

2.3                                 Representations and Warranties.

 

(a)                                  MAYO
hereby represents and warrants that:

 

(i)                                     It
has the right to grant the right and license granted to ACORDA under this
Section 2 and that (except as may be provided in that certain agreement
dated January 9, 1997 between MAYO and TEVA Pharmaceutical Industries,
Ltd.  (the “TEVA Agreement”) which
purports to grant certain rights to TEVA with respect to certain research
results which may or may not be considered part of the Licensed Technology
licensed hereunder and is the subject of the special indemnification provided
under Section 8.2 (b) of this Agreement) MAYO

 

5

 

has not
entered into any agreement with any third party which is in conflict with the
rights granted to ACORDA pursuant to this Agreement; and

 

(ii)                                  It
has fully disclosed to ACORDA all information in MAYO’s possession or control
relating to the Licensed Technology, including, without limitation, any
communications with any third parties relating to any of the foregoing.

 

(b)                                 NO OTHER WARRANTIES.

 

(i)                                     Except
as expressly provided in this Agreement, nothing in this Agreement shall be
construed as a warranty or representation by MAYO as to: the validity or scope
of any patents contained in the Licensed Technology; an obligation to bring or
to prosecute actions against third parties for infringement of patent; or
conferring by implication, estoppel, or otherwise any patents of MAYO.

 

(ii)                                  MAYO
HAS NOT MADE AND PRESENTLY MAKES NO PROMISES, GUARANTEES, REPRESENTATIONS OR
WARRANTIES OF ANY NATURE, DIRECTLY OR INDIRECTLY, EXPRESS OR IMPLIED, REGARDING
THE MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SUITABILITY, DURABILITY,
CONDITION, QUALITY, OR ANY OTHER CHARACTERISTIC OF THE LICENSED
TECHNOLOGY.  THE COMPANY TAKES THE
LICENSED TECHNOLOGY “AS IS,” “WITH ALL FAULTS,” AND “WITH ALL DEFECTS,” AND
EXPRESSLY WAIVES ALL RIGHTS TO MAKE ANY CLAIM WHATSOEVER AGAINST MAYO FOR
MISREPRESENTATION OR FOR BREACH OF PROMISE, GUARANTEE, OR WARRANTY OF ANY KIND
RELATING TO THE LICENSED TECHNOLOGY.

 

2.4                                 Right of First Offer.  The Parties recognize that MAYO may continue
to conduct internal research using the Licensed Technology, as it determines in
its discretion.  In the event that MAYO
develops any other application related to the Licensed Technology but outside
the scope of the license granted under this Agreement (a “New Product”), MAYO
hereby grants to ACORDA a right of first offer with respect to rights for any
such New Product in the Field, as follows:

 

(a)                                  In
the event that, at any time during the term of this Agreement, MAYO intends to
offer to a third party any rights to any New Product or receives an offer from
a third party to acquire any rights to any New Product, MAYO shall first offer
such rights to ACORDA, in writing, on terms no less favorable to ACORDA than
those to be offered to, or offered by, such third party

 

(b)                                 Within
30 days after receipt of any such offer, ACORDA shall notify MAYO in writing as
to whether it wishes to obtain such rights on such terms.  If ACORDA provides timely notice that ACORDA
wishes to obtain such rights, then the Parties shall conduct exclusive
negotiations in good faith and conclude an agreement incorporating such terms
within 120 days thereafter.

 

(c)                                  In
the event that (i) ACORDA gives MAYO notice that ACORDA does not wish to obtain
such rights, or (ii) ACORDA does not respond to MAYO’s notice within 30 days
after receipt thereof, then MAYO shall have the unrestricted right to enter
into an agreement with a third party for such rights.

 

6

 

Certain portions of this Exhibit have been omitted pursuant to a request
for confidentiality. Such omitted portions, which are marked with brackets
[   ] and an asterisk*, have been
separately filed with the Commission.

 

(d)                                 In
the event that the parties enter into negotiations pursuant to
Section 2.4(b), but are unable to agree upon the terms of such rights,
despite the use of good faith efforts, during the 120-day period set forth in
Section 2.4(b), then MAYO shall have the right, for a period of six months
thereafter, to enter into an agreement with a third party for such rights on
terms no more favorable to such third party than those last offered to ACORDA
pursuant to this Section 2.4.  In
the event that MAYO wishes to enter into such an agreement on terms more
favorable to such third party, MAYO shall reoffer such terms to ACORDA in
accordance with this Section 2.4. 
MAYO’s obligation to reoffer to ACORDA any particular New Product it has
not licensed to a third party during the six month period contemplated in the
first sentence of this Section 2.4(d) shall continue for the term of this
Agreement, and if MAYO continues its internal research related to such New
Product, it will disclose to ACORDA any material new information, technology,
or data developed by MAYO related to the New Product to permit ACORDA to
evaluate MAYO’s reoffer.

 

2.5                                 Opportunity to Conduct Clinical
Studies.  In the event that
ACORDA determines that it is desirable to conduct clinical studies in
connection with development of Licensed Products using the Licensed Technology,
ACORDA shall provide MAYO with the opportunity to be included as a study site
for such clinical studies, provided that MAYO has the necessary expertise, and
can perform such clinical study in a timely and cost efficient manner when
compared to the use of a third party. 
MAYO acknowledges that MAYO may not serve as a major clinical trial
site, when MAYO has a conflict of interest, whether actual or perceived, such
as in a registrational study.

 

3.                                      PAYMENTS; ROYALTIES.

 

3.1                                 Upfront Consideration Royalty.

 

(a)                                  In
partial consideration of the right and license granted to ACORDA hereunder,
ACORDA shall pay MAYO a fee of [**], due within thirty (30) days after the
Effective Date.  Such fee shall be
non-refundable, and non-creditable against any other royalty or fee payable
under this Agreement.

 

(b)                                 In
further consideration of the right and license granted to ACORDA hereunder,
ACORDA acknowledges that this Agreement permits MAYO to exercise the warrants
previously granted to MAYO in connection with the Option Agreement to purchase
60,000 shares of ACORDA common stock at the price of founders stock.  In the event MAYO elects to exercise such
warrants, ACORDA shall reimburse to MAYO the price paid by MAYO in order to
exercise such warrants.

 

3.2                                 Milestone Royalties for Licensed
Products.  In further
consideration of the right and license granted to ACORDA hereunder, ACORDA
shall pay to MAYO the following milestone payments upon the first occurrence of
each event set forth below:

 

(a)                                  In
as much as United States Patent No. 
5,591,629, as described in Section 1.8(a) has issued and contains
one or more of the key claims as contemplated by a prior Option Agreement among
the Parties (“Key Claims”), [**], within 30 days following the Effective Date.

 

7

 

Certain portions of this Exhibit have been omitted pursuant to a
request for confidentiality. Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

(b)                                 [**]
within thirty days following the issuance of the first U.S.  composition of matter Licensed Patent for a
human antibody.

 

(c)                                  [**]
within 30 days after the initiation of the first U.S.  Phase II clinical trial for the first Licensed Product chosen for
development (“First Licensed Product”) by ACORDA or its Affiliates or
Sublicensees.

 

(d)                                 [**]
upon the approval to market for therapeutic use given by the FDA to ACORDA or
its Affiliates or Sublicensees (“FDA Approval”) of the First Licensed Product,
which amount shall be paid in four equal installments, the first of which shall
be paid within 30 days following the date of such FDA Approval and the balance
of which shall be paid within 30 days after the end of the three-, six- and
nine-month periods following such date.

 

(e)                                  [**]
within 30 days after the earlier of (1) initiation of the second U.S.  Phase III clinical trial for the second
Licensed Product chosen for development, if any, (“Second Licensed Product”) by
ACORDA or its Affiliates or Sublicensees or (2) submission of a New Drug
Application (“NDA”) by ACORDA or its Affiliates or Sublicensees to the FDA for
such Second Licensed Product.

 

(f)                                    [**]
upon FDA Approval of the Second Licensed Product, which amount shall be paid in
four equal installments, the first of which shall be paid within 30 days
following the date of such FDA Approval and the balance of which shall be paid
within 30 days after the end of the three-, six- and nine-month periods
following such date.

 

(g)                                 [**]
within 30 days after the earlier of (1) initiation of the second U.S.  Phase III clinical trial for the third
Licensed Product chosen for development, if any, (“Third Licensed Product”) by
ACORDA or its Affiliates or Sublicensees or (2) submission of an NDA by ACORDA
or its Affiliates or Sublicensees to the FDA for such Third Licensed Product.

 

(h)                                 [**]
upon FDA Approval of the Third Licensed Product, which amount shall be paid in
four equal installments, the first of which shall be paid within 30 days
following the date of such FDA Approval and the balance of which shall be paid
within 30 days after the end of the three-, six- and nine-month periods
following such date.

 

3.3                                 Running Royalties for Sales of
Licensed Products.

 

(a)                                  In
further consideration of the right and license granted to ACORDA hereunder,
ACORDA shall pay to MAYO, in connection with the sale of Licensed Products by
ACORDA or its Affiliates or Sublicensees, in accordance with the following
schedule and rates:

 

(i)                                     With
respect to the First Licensed Product, provided that such First Licensed Product
is covered by a Valid Claim which contains a valid composition of matter claim
in the country where it is sold the applicable royalty rates shall be

 

[**] of the first [**] of
annual Net Sales; and

 

[**] of all annual Net
Sales in excess of [**].

 

8

 

Certain portions of this
Exhibit have been omitted pursuant to a request for confidentiality. Such
omitted portions, which are marked with brackets [   ] and an asterisk*, have been separately filed with the Commission.

 

(ii)                                  With
respect to the Second Licensed Product, the Third Licensed Product, and each
subsequent Licensed Product, provided that each such Licensed Product is
covered by a Valid Claim which contains a valid composition of matter claim in
the country where it is sold, and taking each Licensed Product into account
separately and not aggregating Net Sales of separate Licensed Products, the
applicable royalty rates shall be:

 

[**] of the first [**] of
annual Net Sales;

 

[**] of annual Net Sales
between [**] and [**];

 

[**] of annual Net Sales
between [**] and [**]; and

 

[**] of annual Net Sales
in excess of [**].

 

(iii)                               With
respect to any Licensed Product which is not covered by a Valid Claim which
contains a composition of matter claim in the country where it is sold, but is
covered by a pending patent within the Licensed Patents containing a valid
composition of matter claim in the country where such Licensed Product is sold,
the applicable royalty rate shall be, in lieu of the foregoing rates, [**] on
all annual Net Sales

 

(b)                                 In
the event that any of the issued patents contemplated in Section 3.3(a)
contain only awarded valid utility claims, the Parties shall negotiate in good
faith lesser royalty rates for the sale of Licensed Products.  Such royalty rates shall reflect customary
royalties for intellectual property of the type, degree of proprietary
protection and value mutually agreed to by MAYO and ACORDA.

 

(c)                                  Beginning
on the first anniversary of the first commercial sale of the First Licensed
Product, ACORDA shall pay MAYO the following minimum annual royalties equal to
the difference between the actual annual amounts paid to MAYO pursuant to
Section 3.3(a) and (b) and the following:

 

(i)                                     [**]
on the first anniversary;

 

(ii)                                  [**]
on the second anniversary;

 

(iii)                               [**]
on the third anniversary; and

 

(iv)                              [**]
on the fourth anniversary and on each anniversary thereafter.

 

3.4                                 Third Party Royalties.  In the event that ACORDA, its Affiliates or
Sublicensees, as the case may be, pays royalties or other amounts to any third
party to make, use or sell a Licensed Product or to avoid or settle a claim of
infringement of the intellectual property rights of such third party, ACORDA
may offset such amounts paid against up to [**] of the amount of royalties due
from ACORDA to MAYO, provided however, that
in no event shall MAYO receive less that [**] of the Net Sales of the Licensed
Product sold by ACORDA, its Affiliates or Sublicensees, as the case may be.

 

9

 

Certain portions of this Exhibit have been omitted pursuant to a
request for confidentiality. Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

3.5                                 Certain Affiliate and Sublicensee
Royalties.  In the event
that ACORDA receives any royalties from Affiliates or Sublicensees with respect
to the sale of Licensed Products for use in applications that ACORDA has
decided, in its business judgment, not to commercialize, ACORDA shall pay MAYO
[**] of such amounts received, provided
however, that MAYO shall not be entitled to any share of amounts
received by ACORDA from its Affiliates or Sublicensees for:

 

(a)                                  equity;

 

(b)                                 debt;

 

(c)                                  research
and development;

 

(d)                                 any
payments attributable to performance based milestones;

 

(e)                                  the
license or sublicense of,

 

(i)                                     any
intellectual property other than the Licensed Patents,

 

(ii)                                  any
products other than the Licensed Products; or

 

(f)                                    reimbursement
for patent or other expenses.

 

3.6                                 Obligation to Pay Royalties.  In no event shall more than one.  royalty be due hereunder with respect to any
unit of Licensed Product even if covered by more than one patent or Valid Claim
of any patent included in the Licensed Patents.  Except as provided in Section 3.5, there shall be no
obligation to pay royalties to MAYO under this Section 3 on sales of
Licensed Products between ACORDA and its Affiliates and Sublicensees, but in
such instances the obligation to pay royalties shall arise upon the sale by
ACORDA or its Affiliates or Sublicensees. 
Failure to make such royalty payments shall be deemed a Material Breach
of this Agreement.  Payments due under
this Section 3 shall be deemed to accrue when payment is received by
ACORDA for Licensed Products.

 

3.7                                 Royalties on Combined Products.  Where a Licensed Product is sold in
combination with one or more other products that are not Licensed Products (the
“Combined Product”), ACORDA shall pay royalties to MAYO based upon the value of
the Combined Product attributable to the Licensed Patents.  The Parties agree to negotiate in good faith
to reach a mutual agreement concerning the value of Combined Product
attributable to such Licensed Patents, provided
however, that ACORDA shall pay MAYO no less than [**] of the Net
Sales of such Combined Product.

 

4.                                      PAYMENTS AND RECORDS.

 

4.1                                 Payment. 
Except as otherwise provided herein, all royalties and other.payments
due hereunder shall be paid quarterly within 45 days after the end of each
calendar quarter in which such payments or royalties accrue.  Each such payment shall be accompanied by a
statement identifying the payments made, including a Licensed
Product-by-Licensed Product and

 

10

 

country-by-country statement of the amount of Net
Sales during such quarter, the amount of royalties due on such Net Sales and
the amount of any credits being applied to such royalties.  Failure to make such payments on time shall
be deemed a Material Breach of this Agreement.

 

4.2                                 Mode of Payment.  ACORDA shall make all payments required under this Agreement in
U.S.  Dollars.  The payments due shall be translated at the rate of exchange at
which United States Dollars for the currency of the country in which the
payment accrued, as listed in The Wall Street
Journal on the last business day of the calendar quarter in which
such sales, if any, were made.

 

4.3                                 Taxes.  Royalties
shall be paid to MAYO free and clear of all foreign taxes, including
withholding and turnover taxes, except such taxes which ACORDA may be required
to withhold by a foreign country.  Any
tax required to be withheld by ACORDA or its Affiliates or Sublicensees under
the laws of any foreign country for the account of MAYO shall be promptly paid
by ACORDA or its Affiliate or Sublicensee for and on behalf of MAYO, with proof
of payment of such tax together with official or other appropriate evidence
issued by the appropriate governmental authority sufficient to enable MAYO to
support a claim for income tax credit in’ respect to any sum so withheld.  Any such tax required to be withheld shall
be an expense of and borne solely by MAYO.

 

4.4                                 Records Retention.  ACORDA shall keep complete and accurate records pertaining to the
manufacture, use and sale of Licensed Products and in sufficient detail to
permit MAYO to confirm the accuracy of royalty calculations under this
Agreement.

 

4.5                                 Audit Request. 
At the request and expense of MAYO, ACORDA shall permit an independent,
certified public accountant appointed by MAYO and acceptable to ACORDA, at reasonable
times and upon reasonable notice, to examine those records as may be necessary
to: (i) determine, with respect to any calendar year ending not more than three
years prior to MAYO’s request, the correctness of any report or payment made
under this Agreement; or (ii) obtain information as to the royalty payable for
any calendar year in the case of ACORDA’S failure to report or pay pursuant to
this Agreement.  Results of any such
examination shall be made available to both Parties.  MAYO shall bear the full cost of the performance of any such
audit; provided however, that in
the event such audit reveals an underpayment by ACORDA in excess of five
percent of the total amount of payment due by ACORDA to MAYO for any calendar
year subject to such audit, ACORDA shall reimburse MAYO for the cost of such
audit.

 

5.                                      DUE DILIGENCE.

 

5.1                                 Diligence. 
ACORDA, directly or through its Affiliates or Sublicensees, shall use
reasonable commercial efforts, consistent with its business judgment, to
develop and commercialize Licensed Products during the term of this Agreement
and obtain and maintain such approvals as may be necessary for the sale of
Licensed Products in the United States and in such other worldwide markets as
ACORDA selects to commercialize such Licensed Products.

 

5.2                                 Reports. 
During the term of this Agreement and until the First Commercial Sale of
the first Licensed Product, ACORDA shall deliver to MAYO semi-annual reports,
due within

 

11

 

45 days after the end of each June and December,
summarizing the efforts of ACORDA, its Affiliates and its Sublicensees to
develop and commercialize Licensed Products.

 

(a)                                  If
MAYO reasonably believes that ACORDA is not satisfying ACORDA’s diligence
obligations set forth in Section 5.1 (or does not have sufficient
information to make such determination), it may request ACORDA to inform MAYO
of such efforts as ACORDA, its Affiliates or Sublicensees are undertaking to
comply with its obligations thereunder. 
Within 60 days from receipt of such request, ACORDA shall then report
its efforts to develop and commercialize Licensed Products and, if either Party
requests, the Parties shall meet to discuss the situation.

 

(b)                                 At
any time during such 60-day period, either Party may request the use of a
mediator to assist in the resolution of such dispute.  In such event, both Parties shall try in good faith to resolve
such dispute by mediation administered by the American Arbitration Association
under its Commercial Mediation Rules by a single mediator, who shall have
experience and be knowledgeable in the pharmaceutical industry, appointed in
accordance with such rules.  The Parties
agree to submit to one day of mediation to take place within 30 days after the
selection of such mediator, unless the Parties otherwise agree.  The costs of any such mediation, including
administrative fees and fees of the mediator, shall be shared equally by the
Parties, and each Party shall bear its own expenses in such mediation.

 

(c)                                  If,
at the end of the later of the 60 day period referred to in Section 5.3(a)
or the unsuccessful conclusion of the mediation, if any, commenced pursuant to
Section 5.3(b), MAYO still believes that ACORDA is not exercising
sufficient efforts to satisfy the diligence obligations set forth in
Section 5.1, MAYO shall initiate a Short-Form Arbitration proceeding
pursuant to Section 5.4 within 30 days thereafter.  The sole question before the arbitrator
shall be whether ACORDA is exercising sufficient efforts to satisfy the diligence
obligations set forth in Section 5.1. 
If MAYO fails to initiate such arbitration within such 30 day period,
MAYO shall have no further right to dispute ACORDA’s efforts to satisfy its
diligence obligations with respect to the period in question.

 

(d)                                 The
foregoing is intended to provide MAYO the means to reasonably exercise its
rights hereunder, and shall not be used to place unreasonable reporting burdens
on ACORDA.  MAYO may not commence a
request for the foregoing information from ACORDA for at least one year after
MAYO last commenced a request therefor.

 

5.3                                 Short-Form Arbitration.  Any dispute subject to short-form
arbitration as provided in Section 5.3 shall be finally settled by binding
arbitration in New York City, New York (at a specific location to be agreed
upon by the Parties) under the Licensing Rules of the American Arbitration
Association by a panel of one or more arbitrators, who shall have experience
and be knowledgeable in the pharmaceutical industry, appointed in accordance
with such rules.(Such arbitrators shall make their determination on the basis
of “baseball arbitration” principles. 
THE FOREGOING REMEDY SHALL BE EACH PARTY’S SOLE AND EXCLUSIVE REMEDY
WITH RESPECT TO ANY SUCH DISPUTE. 
Except as specifically otherwise set forth in Section 5.3 and this
Section 5.4 such arbitration shall be conducted in accordance with the
provisions of Exhibit D.

 

12

 

6.                                      “OWNERSHIP; PATENTS; MARKETING
EXCLUSIVITY; PATENT TERM EXTENSIONS”

 

6.1                                 Ownership.

 

(a)                                  Except
as otherwise provided in Section 6.1(b) through (e), MAYO shall retain all
right, title and interest in and to the Licensed Technology, regardless of
which Party prepares and prosecutes the patent applications associated
therewith, or maintains the patents or other intellectual property rights
related, subject to the right and license granted to ACORDA pursuant to
Section 2.

 

(b)                                 Rights
to Inventions for which employees or agents of MAYO are the sole inventor(s) as
determined in accordance with U.S. 
patent laws shall belong to MAYO.

 

(c)                                  Rights
to Inventions for which employees or agents of ACORDA are the sole inventor(s)
as determined in accordance with U.S. 
patent laws shall belong to ACORDA.

 

(d)                                 Rights
to Inventions made jointly by employees and agents of MAYO and by employees and
agents of ACORDA as determined in accordance with U.S.  patent laws shall belong jointly to MAYO and
to ACORDA.

 

(e)                                  Rights
held by MAYO in any Inventions, including without limitation, rights in and to
patent applications and patents which may be obtained thereon, shall be within
the terms Licensed Patents and shall be subject to the license granted to
ACORDA herein.

 

(f)                                    In
the event as to any Invention either Party determines that it may be advisable
to consider special ownership or license arrangements among them in order to
maximize the commercial protection or utility afforded under any applicable
patent law, the Parties shall discuss and consider in good faith the
implementation of such special arrangements as a means of maximizing the value
of such Invention for their mutual benefit.

 

6.2                                 Patent Prosecution and Maintenance.

 

(a)                                  ACORDA,
at its sole cost and expense (including, without limitation, legal fees, filing
and maintenance fees or other governmental charges), shall (i) commencing on
the Effective Date, have full responsibility for and shall control the
preparation and prosecution of all patent applications, and the maintenance of
all patents, related to the Licensed Technology, and (ii) reimburse the
reasonable expenses in connection with such activities prior to the Effective
Date.  actually incurred by MAYO, in
connection with the filing, prosecution and maintenance of the Patent Rights,
as shown by MAYO’s books and records.

 

(b)                                 ACORDA
shall select qualified patent counsel to file and prosecute all such patent
applications.  ACORDA shall provide
copies to MAYO of any proposed filings to made to any patent office relating to
the Patent Rights in advance, shall consult with MAYO, and shall in good faith
consider and give due respect to MAYO’s position with respect thereto.  In addition, ACORDA shall provide copies to
MAYO of any written communications received from any patent office relating to
the Patent Rights.

 

13

 

(c)                                  MAYO
shall provide ACORDA with a credit against earned royalties due MAYO in the
amount of fifty percent (50%) of all expenses, costs and fees (including
attorney’s fee’s) paid by ACORDA in pursuant to this Section 6.2.  At MAYO’s request, ACORDA shall provide MAYO
with reasonable documentation of such costs.

 

(d)                                 Each
Party agrees to cooperate with the other Party to execute all lawful papers and
instruments, to make all rightful oaths and declarations and to provide
consultation and assistance as may be necessary in the preparation,
prosecution, maintenance, and enforcement of all Patent Rights.

 

6.3                                 Patent Enforcement.

 

(a)                                  If
either Party learns of an infringement or other use, rights or ownership claim
or threatened infringement or other such claim by a third party with respect to
any Licensed Technology within the Territory, such Party shall promptly notify
the other Party and shall provide such other Party with available evidence of
such infringement, whereupon the parties shall consult to determine if they
will jointly bring action to terminate such infringement or
misappropriation.  The costs and
expenses of any such action (including fees of attorneys and other
professionals) shall be borne by the Parties in such proportions as they may
agree in writing.  Any recovery obtained
by the Parties in such action shall be used to reimburse the cost of such
action to the Parties in proportion to their respective contributions to the
costs and expenses incurred in such action, and the remainder shall be divided
equally between the Parties.

 

(b)                                 In
the event that the Parties fail to initiate an action to terminate such
infringement or misappropriation within ninety (90) days after the last party
receives notice of such infringement or misappropriation, MAYO shall have the
first right, but not the duty, to institute at its sole cost and expense,
actions against third parties based on any Licensed Technology under this
Agreement.  Any recovery obtained by MAYO
in such action shall be used to reimburse the cost of such action and the
remainder shall be retained by MAYO.

 

(c)                                  In
the event that the Parties fail to initiate an action to terminate such
infringement or misappropriation within ninety (90) days after the last party
receives notice of such infringement or misappropriation, and in the event MAYO
does not institute an infringement proceeding against an offending third party
within 180 days after the last party receives such notice, ACORDA shall have
the right, but not the duty, to institute at its sole cost and expense, such an
action with respect to any infringement or misappropriation by a third
party.  Any recovery obtained by ACORDA
shall be used to reimburse the cost of such action and the remainder shall be
retained by ACORDA, provided however, that
such amount shall be deemed to constitute Net Sales for purposes of this
Agreement.

 

(d)                                 Unless
the Parties otherwise agree in writing, each Party shall execute all necessary
and proper documents and provide reasonable, but not financial, cooperation as
shall be appropriate, to allow the other Party to institute and prosecute such
infringement actions.

 

6.4                                 Infringement Action by Third Parties.

 

(a)                                  In
the event of the institution of any suit by a third party against ACORDA for
patent infringement involving the manufacture, sale, offer for sale,
distribution or marketing

 

14

 

of any Product in the Territory, ACORDA shall have the
right to defend such suit at its own expense, and MAYO hereby agrees to assist
and cooperate with ACORDA, at ACORDA’s expense, to the extent necessary in the
defense of such suit.  During the
pendency of any such action, ACORDA shall continue to make all payments due
under this Agreement, provided however, that
ACORDA shall be entitled to a credit against such payments of an amount equal
to one-half of the reasonable costs actually incurred in such action.

 

(b)                                 If
ACORDA finally prevails and receives an award from such third party as a result
of such action (whether by way of judgment, award, decree, settlement or
otherwise), such award shall be allocated, first, to ACORDA and MAYO to
reimburse each Party for its pro rata share of costs and expenses incurred in
such action, and the remaining amount shall be retained by ACORDA, provided however, that such amount shall
be deemed to constitute Net Sales for purposes of this Agreement.

 

(c)                                  If
ACORDA finally loses, whether by judgment, award, decree or settlement, and is
required to pay a royalty or damages to such third party, ACORDA shall continue
to pay the royalties for such Licensed Product in the country(ies) which is the
subject of such action, but shall be entitled to a credit against such payments
in an amount-equal to the royalty or damages paid to such third party, but in
no event shall such credit be more than 50% of the royalties due hereunder for
such Licensed Product in such country(ies).

 

(d)                                 If
ACORDA is required to pay a royalty or damages to a third party pursuant to
Section 6.4(c) and the amount of such royalty or damages exceeds 50% of
the royalties due hereunder for such Licensed Product in such country(ies),
ACORDA shall have the right to terminate this Agreement solely with respect to
such Licensed Product in such country(ies). 
The effect of any such termination shall be the same as any termination
by ACORDA pursuant to Section 9.4.

 

6.5                                 Marketing Exclusivity/Patent
Term Extensions

 

(a)                                  ACORDA
shall be responsible for taking all necessary steps to prosecute, perfect and
maintain such applicable Marketing Exclusivity Rights as it deems appropriate.

 

(b)                                 ACORDA
grants to MAYO the exclusive right to rely on any Regulatory Review Period for
any Licensed Product and agrees to be MAYO’s agent for such purposes.  In the event of any request from the Patent
and Trademark Office for assurances that MAYO has the right to rely on the
Regulatory Review Period, including assurances that ACORDA is MAYO’s agent for
such purposes, this Section 6.5 shall be conclusive evidence ofACORDA’s
agreement that MAYO has such right.  Except
as may otherwise be contemplated under this Agreement with respect to the
transfer of rights or obligations to Affiliates, Sublicensees and permitted
assignees, ACORDA may not transfer, assign, license, mortgage or hypothecate in
whole or in part to any person, whether voluntarily or involuntarily, its right
to a Regulatory Review Period for any Licensed Product without the prior
written consent of MAYO, which consent shall not be unreasonably withheld or
delayed.

 

(c)                                  Subject
to the provisions of Section 6.5 (e), MAYO reserves the right to determine
that ACORDA should file and prosecute any application for a Patent Term
Extension;

 

15

 

(d)                                 ACORDA
agrees to take all reasonable actions which MAYO determines to be necessary to
ensure the complete and timely filing and prosecution of any application for a
Patent Term Extension, including but not limited to providing MAYO with
relevant Patent Term Extension Information.

 

(e)                                  In
the event that more than one Licensed Patent could be the subject of an
application for a Patent Term Extension, ACORDA shall have the right, after
consultation with MAYO, to select the Licensed Patent.

 

7.                                      PUBLICATION; CONFIDENTIALITY.

 

7.1                                 Publication. 
ACORDA acknowledges that MAYO is dedicated to free scholarly exchange
and to public dissemination of the results of its scholarly activities.  In the event MAYO, or any employee, student
or other agent of MAYO who is performing any work with respect to the Program,
wishes to make any publication or otherwise disseminate information concerning
or obtained through the Program, MAYO will deliver to ACORDA copies of such
scientific articles, papers and abstracts for review and comment at least 60
days prior to the date of submission for publication or presentation.  ACORDA’s permission to publish shall not be
unduly withheld, and ACORDA’s permission or withholding of such permission will
be submitted to MAYO in writing not later than 30 days following’ ACORDA’s
receipt of the material for review.  If
ACORDA determines that such proposed publication or presentation contains
patentable subject matter that requires protection, ACORDA may require the
delay of publication or presentation for a period not to exceed 90 days for the
purpose of allowing the filing of patent applications.  If ACORDA identifies any of ACORDA’s
Confidential Information (as defined herein) in such proposed publication or
presentation, MAYO will delete such information from same, or modify the
disclosure of such information from same in a manner reasonably acceptable to
ACORDA.

 

7.2                                 Confidentiality; Exceptions.

 

(a)                                  “Confidential
Information of a party shall mean all reports, data and information disclosed
by such party to another party, which is (i) in writing and marked “CONFIDENTIAL”
or “PROPRIETARY or marked with words of similar import, or (ii) disclosed
through oral, visual, or other non-written means, identified as confidential or
proprietary at the time of initial disclosure, and summarized and confirmed as
confidential or proprietary in writing to the receiving party within thirty
(30) days of such disclosure.  Any
markings, stamps, or legends identifying confidential information shall not
impose any obligations on either party inconsistent with this agreement.  Any copies of the information made by the
receiving party shall reproduce the confidential markings and any other legends
contained on such information.

 

(b)                                 Except
to the extent expressly authorized by this Agreement or otherwise agreed in
writing, the Parties agree that, during the term of this Agreement and for five
years thereafter, the receiving Party, its Affiliates, its licensees and its
Sublicensees shall keep, and shall ensure that their respective employees,
officers, directors and trustees shall keep, completely confidential and shall
not publish or otherwise disclose and shall not use any

 

16

 

Confidential Information for any purpose other than
carrying out the obligations of the receiving Party under this Agreement except
to the extent that it can be established by the receiving Party by competent
proof in the form of written records maintained by the receiving Party that
such information: (i) was already known to the receiving Party, other than
under an obligation of confidentiality, at the time of disclosure by the
disclosing Party; (ii) was generally available to the public or otherwise part
of the public domain at the time of its disclosure to the receiving Party;
(iii) became generally available to the public or otherwise part of the public
domain after its disclosure and other than through any act or omission of the
receiving Party in breach of this Agreement; or (iv) was disclosed to the
receiving Party, other than under an obligation of confidentiality, by a third
party who had no obligation to the disclosing Party not to disclose such
information to others.

 

7.3                                 Exceptions to Obligation.  The restrictions contained in
Section 7.2 shall not apply to Confidential Information that: (i) is
submitted by the recipient to governmental authorities to facilitate the
issuance of marketing approvals for Licensed Products, provided that reasonable
measures shall be taken to assure confidential treatment of such information;
(ii) is provided by the receiving Party to third parties under appropriate
terms and conditions, including confidentiality provisions substantially
equivalent to those in this Agreement, for consulting, manufacturing
development, manufacturing, external testing and marketing trials; or (iii) is
otherwise required to be disclosed in compliance with applicable laws or
regulations or order by a court or other regulatory body having competent
jurisdiction, provided that if a Party is required to make any such disclosure
of the other Party’s Confidential Information it will, except where
impracticable for necessary disclosures, for example to physicians conducting
studies or to health authorities, give reasonable advance notice to the other
Party of such disclosure requirement and, except to the extent inappropriate in
the case of patent applications, will use its best efforts to secure
confidential treatment of the Confidential Information required to be
disclosed, and shall cooperate with efforts of the disclosing Party to limit
disclosure, as appropriate.

 

7.4                                 Confidentiality regarding
Patient Information. 
Notwithstanding anything in this Section 7 to the contrary,
identifiable patient information obtained in the performance of the Program
shall be deemed Confidential Information and shall be kept confidential by both
Parties permanently except: (i) when that information is required to be
disclosed by regulatory authorities; or (ii) with the patient’s consent.

 

8.                                      INDEMNIFICATION.

 

8.1                                 Products Liability.  ACORDA shall defend, indemnify and hold MAYO
and MAYO’s Affilitates, and their respective trustees, officers and employees,
harmless from and against any and all claims, suits or demands for liability,
damages, losses, costs and expenses (including the costs and expenses of
attorneys and other professionals) (collectively, a “Claim”) arising out of or
resulting from third party claims or suits resulting from: (i) the use by
ACORDA or its Affiliates or Sublicensees of any of the Licensed Technology,
(ii) the use by ACORDA or its Affiliates or Sublicensees of information
concerning or obtained through the Program, or (iii) the manufacture, use, sale
or offer for sale of a Licensed Product by ACORDA or its Affiliates or
Sublicensees pursuant to this Agreement; provided that such Claim does not
arise out of or result from a breach of any of MAYO’s representations or
warranties made under

 

17

 

this Agreement, and provided further that such Claim
is not covered by MAYO’s indemnification provided in Section 8.2.

 

ACORDA shall, during the
term of this Agreement, carry occurrence-based liability insurance with policy
limits of at least THREE MILLION DOLLARS ($3,000,000).  In addition, such policy shall name MAYO as
an additional-named insured.

 

8.2                                 MAYO Indemnification.

 

(a)                                  MAYO
shall defend, indemnify and hold ACORDA and its Affiliates and Sublicensees and
their respective directors, officers and employees, harmless from and against
any and all Claims arising out of or resulting from third party claims or suits
resulting from (a) any negligence, recklessness or wrongful intentional acts or
omissions of MAYO and its trustees, officers, employees and agents, including
Dr.  Moses Rodriguez and Dr.  Larry Pease in connection with (i) the work
performed by MAYO, Dr.  Moses Rodriguez
or Dr.  Larry Pease under the Program,
and (ii) any other development and/or commercialization work relating to any
Licensed Products or Licensed Technology before the Effective Date, or
thereafter in connection with MAYO’s, Dr. 
Rodriguez’ or Dr.  Pease’s
development of Licensed Products or Licensed Technology; excepting in any case
to the extent any such Claims result from the negligence, recklessness or
wrongful intentional acts or omissions of ACORDA or its Affiliates or
Sublicensees, or their respective directors, officers, employees or agents.

 

(b)                                 Notwithstanding
any other provision of this Agreement, including those which may impose any
obligation or cost on ACORDA in ‘connection with patent prosecution,
enforcement and infringement actions from third parties under Section .6,
MAYO shall defend, indemnify and hold ACORDA and its Affiliates and
Sublicensees and their respective directors, officers and employees, harmless
from and against any and all Claims arising out of or resulting from third
party claims or suits resulting from or in any way related to the TEVA
Agreement and MAYO shall, at its sole expense, take all reasonable actions and
adopt all reasonable positions with third parties in order to permit ACORDA
full enjoyment of the exclusive license granted under this Agreement and to
avoid or mitigate any conflicts between with the license hereunder and any
rights which MAYO may have granted under the TEVA Agreement in ACORDA’s favor.

 

8.4                                 Notice; Waiver of Subrogation.

 

(a)                                  In
the event that any person entitled to indemnification (an “Indemnitee”) seeks
indemnification under this Section 8, the Indemnitee agrees to: (i)
promptly inform the indemnifying Party (the “Indemnitor”) of any claim, suit or
demand threatened or filed, (ii) permit the Indemnitor to assume direction and
control of the defense or Claims resulting therefrom (provided that Indemnitor
may not settle any Claim against an Indemnitee without the consent of the
Indemnitee, which consent shall not be unreasonably withheld), and (iii)
cooperate as requested (at the expense of the Indemnitor) in the defense of the
Claim.

 

(b)                                 Except
as otherwise expressly provide in this Agreement, each Indemnitor waives any
right of subrogation that it may have against an Indemnitee resulting from any
Claim for which an Indemnitor has agreed to indemnify an Indemnitee under
Section 8 of this

 

18

 

Agreement. 
Such waiver shall not, however, be deemed a waiver of any subrogation
rights an Indemnitor may have against third parties.

 

9.                                      TERM AND TERMINATION.

 

9.1                                 Term.  This
Agreement shall commence as of the Effective Date and, unless sooner terminated
as provided hereunder, shall expire as follows:

 

(a)                                  As
to each Licensed Product and as to each country in the Territory, on a
country-by-country and Licensed Product-by-Licensed Product basis upon the
expiration of the last to expire Licensed Patent in such Licensed Product or in
such country, as the case may be.

 

(b)                                 This
Agreement shall terminate in its entirety upon its termination as to all
Licensed Patents in all countries.

 

9.2                                 Breach.  A
Material Breach by either Party of any of the obligations contained in this
Agreement shall entitle the other Party to give to the Party in default notice
specifying the nature of the Material Breach and requiring it to cure such
Material Breach.  If such Material
Breach is not cured within 90 days after the receipt of such notice (or, if
such Material Breach reasonably cannot be cured within such 90-day period, if
the Party in default does not commence and diligently continue actions to cure
such default during such 90-day period), the notifying Party shall be entitled,
without prejudice to any of the other rights conferred on it by this Agreement,
and in addition to any other remedies available to it at law or in equity, to
terminate this Agreement by giving written notice to take effect on the date of
such notice.  The right of either Party
to terminate this Agreement, as provided in this Section 9.2, shall not be
affected in any way by its waiver or failure to take action with respect to any
previous Material Breach.

 

9.3                                 Insolvency or Bankruptcy.  In the event that either Party shall become
insolvent, shall make an assignment to the benefit of creditors, or shall have
a petition in bankruptcy filed for or against it (which, in the case of an
involuntary petition, is not dismissed or stayed within sixty (60) days after
such petition is.filed) (a “Bankrupt Party”), the other Party shall have the
right to terminate this Agreement in its entirety immediately upon written
notice of such Termination.  All rights
and licenses granted by the Bankrupt Party under this Agreement are, and shall
otherwise be deemed to be; for purposes of Section 365(n) of Title 11, US
Code (the “Bankruptcy Code”), licenses of rights to “intellectual property” as
defined under Section 101(60) of the Bankruptcy Code.  Unless the other Party elects to terminate
this Agreement under this Section, the Parties agree that the other Party, as a
licensee of such rights under this Agreement, shall retain and may fully
exercise all of its rights and elections under the Bankruptcy Code, subject to
the continued fulfillment of its obligations under this Agreement.

 

9.4                                 Termination by ACORDA.  ACORDA shall have the right to terminate the
right and license granted herein, in whole or as to any Licensed Product in any
country in the Territory, at any time, and from time to time, by giving written
notice to MAYO.  Such termination shall
be effective 90 days from the date such notice is given, and all of ACORDA’s
rights associated with such Licensed Product(s) and such country(ies) shall
cease as of that date, subject to Sections 9.5 through 9.7.

 

19

 

9.5                                 Right to Sell Stock on Hand.  Upon the termination of any right and
license granted herein, in whole or as to any Licensed Product, for any reason
other than ACORDA’s failure to cure a Material Breach of this Agreement, ACORDA
shall have the right for one year or such longer period as the Parties may
reasonably agree in writing to dispose of all Licensed Products or
substantially completed Licensed Products then on hand to which such
termination applies, and royalties shall be paid to MAYO with respect to such Licensed
Products as though this Agreement had not terminated.

 

9.6                                 Effect of Termination.

 

(a)                                  Following
the expiration of any right and license granted under this Agreement in whole
or in part as to any Licensed Product in any country in the Territory pursuant
to Section 9.1, ACORDA shall have the royalty-free, non-exclusive right to
continue to use the Licensed Technology for the manufacture, use and sale of
Licensed Products as theretofore licensed under this Agreement.

 

(b)                                 Upon
Termination of this Agreement by ACORDA pursuant to Section 9.2 or 9.3:
(i) MAYO shall promptly transfer to ACORDA copies of all data, reports, records
and materials in MAYO’s possession or control that relate to the Licensed
Products and return to ACORDA all relevant records and materials in MAYO’s
possession or control containing Confidential Information ofACORDA, including
all information concerning or obtained through the Program; (ii) ownership of
all INDs, PLAs and other regulatory filings made or filed for any Product shall
be transferred solely to ACORDA, and (iii) at ACORDA’s election, any
sublicenses granted by ACORDA under the Licensed Technology shall be deemed
terminated or automatically assigned to MAYO.

 

(c)                                  Upon
Termination of this Agreement by MAYO pursuant to Section 9.2 or 9.3: (i)
ACORDA shall promptly transfer to MAYO copies of all data, reports, records and
materials in ACORDA’s possession or control that relate to the Licensed
Products and return to MAYO all relevant records and materials in ACORDA’s possession
or control containing Confidential Information of MAYO; (ii) all licenses
granted for Licensed Technology by MAYO to ACORDA under Section 2 shall
terminate; (iii) all sublicenses granted by ACORDA under the Licensed
Technology shall be deemed automatically assigned to MAYO.  Thereafter, MAYO shall have the right to
develop, make, have made, use, sell or have sold any Licensed Product.

 

(d)                                 Upon
Termination of this Agreement by ACORDA pursuant to Section 9.4: (i) each
Party shall promptly transfer to the other Party copies of all data, reports,
records and materials of the other Party in the possession or control of such
Party that relate to the Licensed Products; (ii) each Party shall promptly
return to the other Party all relevant records and materials in such Party’s
possession or control containing Confidential Information of the other Party;
and (ii) all licenses granted by either Party to the other Party under
Section 2 shall terminate. 
Thereafter, each Party shall have the right to develop, make, have made,
use, sell or have sold any Licensed Product, to the extent legally permissible.

 

9.7                                 Accrued and Surviving Rights and
Obligations. 
Termination, relinquishment or expiration of this Agreement for any
reason shall be without prejudice to any rights, obligations or liabilities
which shall have accrued to the benefit of either Party prior to such
Termination, relinquishment or expiration (including, without limitation,
ACORDA’s obligation to pay all

 

20

 

royalties which shall have accrued hereunder as of the
effective date of such Termination). 
The Parties’ rights and obligations under Sections 4, 6, 7, 8, 9.5, 9.6,
9.7, 10.5, and 10.12 shall survive Termination.

 

10.                               MISCELLANEOUS PROVISIONS.

 

10.1                           Relationship of Parties.  Nothing in this Agreement is intended or
shall be deemed to constitute• a partnership, agency,
employer-employee or joint venture relationship between the Parties.  No Party shall incur any debts or make any
commitments for the other, except to the extent, if at all, specifically
provided herein.

 

10.2                           Assignment. 
Except as otherwise provided herein, neither this Agreement nor any
interest hereunder shall be assignable by any Party without the prior written
consent of the other, which consent shall not be unreasonably withheld; provided, however, that either Party may
assign this Agreement to any wholly-owned subsidiary or to any successor by
merger or sale of substantially all of those of its assets to which this
Agreement relates in a manner such that the assignor shall remain liable and
responsible for the performance and observance of all its duties and
obligations hereunder.  This Agreement
shall be binding upon the successors and permitted assigns of the Parties, and
the name of a Party appearing herein shall be deemed to include the names of
such Party’s successors and permitted assigns to the extent necessary to carry
out the intent of this Agreement.  Any
assignment not in accordance with this Section 10.2 shall be void.

 

10.3                           Further Actions.  Each Party agrees to execute, acknowledge and deliver such
further instruments, and to do all such other acts, as may be necessary or
appropriate in order to carry out the purposes and intent of this Agreement..

 

10.4                           Force Majeure. 
Neither Party shall be liable to the other for loss or damages or shall
have any right to terminate this Agreement for any default or delay
attributable to any act of God, flood, fire, explosion, strike, lockout, labor
dispute, shortage of raw materials, casualty or accident, war, revolution,
civil commotion, act of public enemies, blockage or embargo, injunction, law,
order, proclamation, regulation, ordinance, demand or requirement of any
government or subdivision, authority or representative of any such government,
or any other.  cause beyond the
reasonable control of such Party, if the Party affected shall give prompt
notice of any such cause to the other Party. 
The Party giving such notice shall thereupon be excused from such of its
obligations hereunder as it is thereby disabled from performing for so long as
it is so disabled and for 30 days thereafter.

 

10.5                           No Trademark Rights.  Except as otherwise provided herein, neither
Party shall have any right, express or implied, to use in any manner, in
connection with the performance of this Agreement, the name or other
designation of the other Party or any other logo, name, tradename, service mark
or trademark of the other Party, or the name of any employee or agent of the
other Party, without that Party’s prior, written, express consent.  Either Party may withhold such consent in
either Party’s absolute discretion.  For
MAYO or its Affiliates, such names and marks include, but are not limited to,
the terms “Mayo®,” “Mayo Clinic®,” or any simulation, abbreviation, or
adaptation of the same.  Violation of
this Section 10.5 by either

 

21

 

Party shall be deemed a Material Breach of this
Agreement, entitling the other Party to appropriate equitable or legal relief.

 

10.6                           Public Announcements.  Except as required by law, including but not
limited to, disclosures to prospective investors as required under applicable
state and federal securities laws or as. 
required for documents or other communications to be filed or distributed
pursuant to requirements of the Securities and Exchange Commission, any stock
exchange or NASDAQ, (“Permitted Public Announcement”) neither party shall make
any public announcement concerning this Agreement or the subject matter hereof
without the prior written consent of the other to the text of such public
announcement.  In the event of a
Permitted Public Announcement, the Party making such announcement shall provide
the other with a copy of the proposed text prior to such announcement.  In the event that a party has obtained
consent to the text of such other public announcement, such party shall be
entitled to use and reuse, without limitation and in any form, such text in one
or more public announcements.

 

10.7                           Notices.  All
notices and other communications required or permitted to be given under or in
connection with this Agreement shall be in writing, and shall be deemed given
if delivered personally or by facsimile transmission (receipt verified),
express courier service (signature required), or mailed by registered or
certified mail (return receipt requested), postage prepaid, to the Parties at
the following addresses (or at such other address for a Party as shall be
specified by like notice; provided, that notices of a change or address shall be
effective only upon receipt thereof):

 

	
  (a)

  	
  If to ACORDA, to:

  
	
   

  	
   

  
	
   

  	
  ACORDA THERAPEUTICS,
  INC.

  
	
   

  	
  15 Skyline Drive

  
	
   

  	
  Hawthorne, New York
  10532

  
	
   

  	
  Attention: President

  
	
   

  	
  Facsimile No.:
  (914)347-4560

  
	
   

  	
   

  
	
  (b)

  	
  If to MAYO, to:

  
	
   

  	
   

  
	
   

  	
  MAYO FOUNDATION FOR
  MEDICAL EDUCATION AND RESEARCH

  
	
   

  	
  200 First Street, SW

  
	
   

  	
  Rochester, Minnesota
  55905

  
	
   

  	
  Attention: Office of
  Technology Commercialization, Mayo Medical Ventures

  
	
   

  	
  Facsimile No.:
  507-284-5410

  

 

If delivered personally
or by facsimile transmission, the date of delivery shall be deemed to be the
date on which such notice or request was given.  If sent by overnight express courier service, the date of
delivery shall be deemed to be the next business day after such notice or
request was deposited with such service. 
If sent by registered or certified mail, the date of delivery shall be
deemed to be the third business day after such notice or request was deposited
with the U.S.  Postal Service.

 

10.8                           Amendment. 
No amendment, modification or supplement of any provision of this Agreement
shall be valid or effective unless made in writing and signed by a duly
authorized officer of each Party, and specifically referencing this Agreement.

 

22

 

10.9                           Waiver.  No
provision of this Agreement shall be waived by any act, omission or knowledge
of a Party or its agents or employees except by an instrument in writing
expressly waiving such provision and signed by the waiving Party.

 

10.10                     Severability. 
Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be prohibited by or invalid under
applicable law, such provision will be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this
Agreement.

 

10.11                     Compliance with Law.  Nothing in this Agreement shall be deemed to
permit a Party to export, reexport or otherwise transfer any Know-How
transferred hereunder or Licensed Products manufactured therefrom without
compliance with applicable laws.

 

10.12                     Governing Law and Jurisdiction.  This Agreement shall be governed by
Minnesota law, but specifically not including Article 2 of the Uniform
Commercial Code as enacted in Minnesota. 
This is not a contract for the sale of goods.  In addition, no Minnesota conflicts-of-law or choice-of-laws
provisions apply to this Agreement.  To
the extent the substantive and procedural law of the United States would apply
to this Agreement, it supersedes the application of Minnesota law.  The parties agree that all disputes between
them concerning this contract, other than as
provided for in Section 5.4 hereto, whether arising before or after
Termination, will be settled only according to the arbitration process
described in Exhibit D, attached to and incorporated into this Agreement, and
not through any action at law or in equity, except as otherwise permitted under
Exhibit D.

 

10.13                     Entire Agreement of the Parties.  This Agreement, including the exhibits
attached, constitutes and contains the entire understanding and agreement of
the Parties and cancels and supersedes any and all prior negotiations,
correspondence, understandings and agreements, whether oral or written, between
the Parties respecting the subject matter hereof.

 

10.14                     Descriptive Headings.  The descriptive headings of this Agreement
are for convenience only, and shall be of no force or effect in construing or
interpreting any of the provisions of this Agreement.

 

10.15                     Nondisclosure. 
Neither Party shall disclose any of the terms of this Agreement without
the express, prior, written consent of the other Party, or unless required by
law.

 

10.16                     Counterparts. 
This Agreement maybe executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
agreement.

 

* * *

 

23

 

IN WITNESS WHEREOF, each
of the Parties has caused this License Agreement to be signed by its duly authorized
representative as of the date first written above.

 

 

	
   

  	
  ACORDA THERAPEUTICS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ron Cohen

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Ron Cohen

  
	
   

  	
   

  
	
   

  	
  Title: President and
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAYO FOUNDATION FOR
  MEDICAL

  EDUCATION AND RESEARCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rick F. Colvin

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Rick F.  Colvin

  
	
   

  	
   

  
	
   

  	
  Title:  Assistant
  Treasurer

  
						

 

24

 

Certain portions of this Exhibit have been omitted pursuant to a
request for confidentiality.  Such
omitted portions, which are marked with brackets [  ] and an asterisk*, have been separately filed with the
Commission.

 

Exhibit C

 

Remvelination Monoclonal
Antibody Cases

 

	
  PCT/U.S. Serial No.

  	
   

  	
  Title of Application

  	
   

  	
  Date of Filing

  
	
  US#5,591,629

  	
   

  	
  Monoclonal
  Antibodies Which Promote Central Nervous System Remyelination

  	
   

  	
  4/29/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  4/27/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  8/8/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  1/7/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  5/28/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  5/30/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  5/10/00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  	
  5/30/00

  

 

 

 

EXHIBIT D

 

MANDATORY
MEDIATION AND BINDING ARBITRATION

 

1.             NOTICE OF
DISPUTE. Except to the extent otherwise expressly provided in
Sections 5.3 and 5.4 of this Agreement, any dispute related to this Agreement
between the Parties, including its formation, performance, or Termination,
which cannot be resolved by the Parties themselves within thirty (30) clays of
written notice by one Party to the other of the existence of a dispute, may be
referred by either of the parties to mandatory mediation and binding
arbitration under the terms of this Exhibit. The Parties intend the
mediation/arbitration procedure described in this Exhibit to substitute in all
cases for litigation related to any such dispute, subject only to part 7,
below, and this agreement to submit all such disputes to mandatory mediation
and binding arbitration is irrevocable.

 

2.             LIMITATION
PERIOD. No demand for mediation/arbitration may be made regarding
any claim more than one hundred eighty (180) days after written notice by one
Party to the other of the existence of a dispute, regardless of any otherwise
applicable statute of limitations.

 

3.             MEDIATOR/ARBITRATOR.
If the Parties cannot agree upon a single mediator/arbitrator within fourteen
(14) days after written demand by either of them for mediation/arbitration,
then a single mediator/arbitrator shall be chosen by the American Arbitration
Association office in New York City, New York, within thirty (30) additional
days after the fourteen (14) day period. The mediator/arbitrator shall be
generally experienced in the legal and technical matters related to the
dispute.

 

4.             MEDIATION.
Within thirty (30) days of the appointment of the mediator/arbitrator, the
Parties must attend a mediation session at which the mediator/arbitrator
personally shall attempt to guide the Parties to a settlement. Each Party may
be represented by counsel at the mediation, but each Party must attend through
an officer having authority to agree to a settlement at the mediation. The
mediation session shall occur in New York City, New York, and shall extend no
longer than a single day. Statements or offers made at the mediation session
shall not be admissible in any later arbitration hearing.

 

5.             ARBITRATION.
If such mediation has not resulted in a mutually-executed settlement agreement
(or withdrawal of claim) within five (5) business days after the date of
mediation, then the Parties shall proceed to arbitration as described below.
Such arbitration, which the Parties intend to be final and to substitute for
litigation, shall occur in New York City, New York, and the arbitration results
maybe entered as a final judgment in any court with jurisdiction. The decision
of the arbitrator shall be final and binding upon the Parties both as to law
and fact.

 

(a)           Initial Disclosures. Within
twenty-one (21) days after the date of mediation, the Parties shall exchange
written disclosures listing with reasonable specificity: (i) all exhibits
expected to be used by the Party at arbitration, and complete copies of such
exhibits, (ii) all witnesses expected to be called by the Party at arbitration,
and (iii) the substance of the testimony of each witness. Copies of such
disclosures shall be sent to the arbitrator. No exhibit or witness may be
called if the same does not appear on such disclosure, and 

 

 

 

 

no witness may testify as to matters not described in
such disclosure, except for rebuttal testimony as may be permitted by the
arbitrator.

 

(b)           Discovery Period. Within fourteen
(14) days after exchange of the disclosure notices, the Parties shall make
specific discovery requests to the arbitrator, and within an additional
fourteen (14) days the arbitrator shall issue to both parties a joint discovery
order. The discovery period preceding the arbitration hearing shall not exceed
sixty (60) days from the issuance of the discovery order by the arbitrator.

 

(c)           Scope of Discovery. Discovery shall
be limited to that ordered by the arbitrator as being reasonable and necessary,
and in no case shall exceed the deposition of two (2) witnesses for each Party,
and/or the exchange of more than a total of twenty-five (25) specific and
non-compound interrogatories by each party, and/or two specific requests by
each Party for the production of documents considered by the arbitrator to be
reasonably relevant and not unduly burdensome.

 

(d)           Hearing. The arbitration hearing,
which shall be confidential to the parties and not open to the public, shall
not exceed two (2) separate days, and shall be completed within thirty (30)
days of the close of discovery. The arbitrator may admit any testimony or other
evidence which the arbitrator decides is reasonably relevant to the issues of
the arbitration, but excluding statements or offers made by either Party at the
mediation session.

 

(e)           Final Decision. The arbitrator shall
issue a final written decision no later than sixty (60) days following the end
of the arbitration hearing, stating findings as to law and fact. The decision
shall be confidential to the Parties. The arbitrator shall be limited to
determining and ordering the payment of actual and direct damages if any, and
may order the payment of indirect, special, incidental, or consequential
damages only where bad faith has been shown and/or to the extent required to
fulfill any obligations under Article 8 of the Agreement. The arbitrator shall
not order the payment of punitive or exemplary damages in any case.

 

6.             COSTS AND
FEES. Both Parties shall be responsible for their own costs and fees
(including attorney’s fees), and shall divide common costs and fees equally;
however, if the arbitrator specifically finds bad faith on the Part of either
Party, then the arbitrator may order a different division of costs and fees.

 

7.             EQUITABLE
RELIEF. Nothing in this Exhibit prohibits either Party from seeking
equitable relief to protect its rights to the extent that irreparable harm may
occur and damages would not be a sufficient remedy, except that neither Party
shall seek to enjoin mediation/arbitration as described in this Exhibit.

 

(a)           Specific Performance. Among the
equitable remedies that a Party may seek under this part 7, either Party may
petition a court for specific performance of the terms of this Exhibit,
including following the failure of either Party without good cause to adhere to
the time limits set out in this Exhibit. A Party securing an order for specific
performance 

 

 

2

 

 

under this part 7(a) is entitled to recover costs and
reasonable attorneys’ fees in connection with such petition for specific
performance and any related hearings.

8.             SURVIVAL.
The rights and obligations of the Parties described in this Exhibit survive the
Termination, expiration, non-renewal, or rescission of this Agreement.

9.             GOVERNING
RULES AND LAW. To the extent not inconsistent with the terms of this
Exhibit, the mediation and arbitration are governed by the rules of the
American Arbitration Association, the Minnesota Arbitration Act, and the
Federal Arbitration Act (9 U.S.C s. 1 et seq.).

 

3

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