Document:

Exhibit
10.11

SIDE AGREEMENT

REFERENCE IS MADE to (i) the License Agreement
effective as of September 26, 2003, by and between RUSH-PRESBYTERIAN-ST. LUKE’S
MEDICAL CENTER, an Illinois not-for-profit corporation  and having its principal office at 1725 W. Harrison
St. Chicago, Ill. 60612 (“Rush”), and ACORDA THERAPEUTICS, INC., a corporation
organized and existing under the laws of the State of Delaware and having its
principal office at 15 Skyline Drive, Hawthorne, New York 10532 (“Acorda”) (the
“Rush/Acorda License”), and (ii) the Amended and Restated License and Supply
Agreement effective as of September 26, 2003 by and between Acorda and ELAN
CORPORATION, PLC., a public limited company incorporated under the laws of
Ireland and having its registered office at Lincoln House, Lincoln Place,
Dublin 2, Ireland (“Elan”) (the “Elan/Acorda License”). The Rush/Acorda License
and the Elan/Acorda License are sometimes collectively referred to herein as
the “Novation Agreements”.

REFERENCE IS FURTHER MADE to (i) the option agreement,
dated September 7, 1990 (the “Option Agreement”), between RUSH and ELAN
PHARMACEUTICAL RESEARCH CORPORATION (“EPRC”), a predecessor of Elan Drug
Delivery Inc., a wholly-owned subsidiary of Elan, and (ii) the license
agreement dated November 13, 1990 (the “Rush/Elan License”), between RUSH and
EPRC.  The Option Agreement and the
Rush/Elan License are sometimes collectively referred to as the “Rush/Elan
Agreements”.

WHEREAS, in connection with the respective parties
desire to enter into and in consideration of the Novation Agreements, Rush,
Acorda and Elan have agreed to enter into this Side Agreement with the
intention to set forth (i) the termination of the Rush/Elan Agreements; and
(ii) the relative rights of the parties hereto related to certain matters under
the Novation Agreements.

NOW THEREFORE, in consideration of the premises and
the mutual covenants hereinafter recited and set forth in the Novation
Agreements and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally
bound, the Parties agree as follows:

1.             Effective on the Effective Date, the Rush/Elan
Agreements are hereby cancelled and terminated in their entirety.  Notwithstanding any provision contained in
the Rush/Elan Agreements, neither Rush nor Elan shall have any obligation or
liability to the other Party under the Rush/Elan Agreements or in connection
with the termination thereof except as set forth in this Side Agreement.

2.             In the event that Acorda has breached any financial or
other curable obligation under the Rush/Acorda License which breach would give
Rush the right, pursuant to the Section 8.3.1 of the Rush/Acorda License, to
terminate the Rush/Acorda License, Rush shall send Elan a copy of any notice
sent to Acorda of such breach, including a description of such breached
obligation, and of any failure to remedy such breach within the specified time
period.  If Acorda fails to remedy such
breach within the specified period, Elan shall have the right, but not the
obligation, after consultation with Acorda, to remedy such breach on Acorda’s
behalf within sixty (60) days after receiving notice of Acorda’s failure to
remedy such breach provided, 

 

however, that Elan shall not have the right to cure
such breach in the event that such breach is due to the fault of Elan.  In the event Elan remedies such breach, Rush
shall not have the right to terminate the Rush/Acorda License and Acorda shall
cooperate with Elan to the extent necessary and reasonable for Elan to enforce
its rights with respect to Rush under this Side Agreement.

3.             In the event that Acorda has committed a non-curable
breach of the Rush/Acorda License which breach would give Rush the right,
pursuant to Section 8.3.1 of the Rush/Acorda License, to terminate the
Rush/Acorda License, then Rush shall copy Elan on its written notice to Acorda
of and describing such breach and describing any Acorda obligations under the
Rush/Acorda License, and Elan shall have the right, but not the obligation,
after consultation with Acorda, to assume all of Acorda’s obligations under the
Rush/Acorda License, provided, , that Elan shall have a good faith expectation
that it has the intention and capability to perform such obligations and,
provided further that Elan shall not have the right to assume all of Acorda’s
rights and obligations under the Rush/Acorda License in the event that such
breach is due to the fault of Elan.  In
the event Elan assumes all of Acorda’s obligations under the Rush/Acorda
License pursuant to this Paragraph 3, Acorda shall assign to Elan all of
Acorda’s rights and remedies under the Rush/Acorda License and shall cooperate
with Elan to the extent necessary and reasonable for Elan to enforce Elan’s
rights and remedies vis a vis Rush under the Rush/Acorda License and this Side
Agreement. In the event that Elan does not assume Acorda’s obligations under
the Rush/Acorda License under this Paragraph 3, Rush shall have the right to
terminate the Rush/Acorda License.

4.             Rush agrees that in the event that Rush terminates the
Rush/Acorda License pursuant to Section 8.3.1 thereof, Rush shall promptly
provide Elan with written notice of such termination, together with a
description of the basis for such termination, and Rush shall offer to Elan the
right to assume all rights and obligations of Acorda under the Rush/Acorda
License. Should Elan within thirty (30) days following receipt of such notice
from Rush, provide to Rush written notice of its desire to assume such rights,
remedies and obligations of Acorda and accept the grant of such rights from
Rush, then Rush shall not terminate the Rush/Acorda License until expiration of
such thirty (30) day period and, thereafter, all rights of Acorda under the
Rush/Acorda License shall be immediately granted to Elan, such licenses from
Rush shall be immediately granted, and Elan shall concurrently assume all
obligations of Acorda under the Rush/Acorda License provided that Elan shall
have a good faith expectation that it has the intention and capability to perform
such obligations.  In the event that Elan
shall assume and perform Acorda’s rights and obligations under the Rush/Acorda
License, Acorda shall have no further obligations to Rush with respect to the
Rush/Acorda License. In the event that Elan does not assume Acorda’s
obligations under the Rush/Acorda License under this Paragraph 4, Rush shall
have the right to terminate the Rush/Acorda License.

5.             In the event that the Elan/Acorda Agreement is
terminated by Elan in accordance with the terms thereof, Elan shall promptly
provide Rush with written notice of such termination, together with a
description of the basis for such termination, and Rush shall offer to Elan the
right to assume all rights and obligations of Acorda under the Rush/Acorda
License.  Should Elan within thirty (30)
days following receipt of such notice from Rush, provide to Rush written notice
of its desire to assume such rights and obligations of Acorda and accept the
grant of such rights from Rush, then all rights of Acorda under the Rush/Acorda
License shall be granted to 

 

2

 

Elan and Elan shall concurrently assume all
obligations of Acorda under the Rush/Acorda License, provided that Elan shall
have a good faith expectation that it has the intention and capability to
perform such obligations.  In the event
that Elan shall assume and perform Acorda’s rights and obligations under the
Rush/ Acorda License, Acorda shall have no further obligations to Rush with
respect to the Rush/Acorda License.

6.             Rush, on behalf of itself and its respective heirs,
executors, successors and assigns hereby fully and forever releases and
discharges Elan, Acorda, EPRC, and their respective affiliates, heirs,
executors, successors, agents, licensees, officers and directors, from and
agrees not to sue any of such released parties concerning, any and all claims,
actions, obligations, duties, causes of action, whether now known or unknown,
suspected or unsuspected, that either of them may possess based upon or arising
out of any matter, cause, fact, thing, act, or omission whatsoever occurring or
existing at any time prior to and including the Effective Date (collectively,
the “Released Matters”), including without limitation, any and all claims
relating to 4-aminopyridine. For the avoidance of this doubt, this release does
not extend to matters that may arise after the Effective Date under this Side
Agreement or under the Rush/Acorda License. Each of Elan, EPRC, and Acorda on
behalf of itself and its respective heirs, executors, successors and assigns
hereby fully and forever releases and discharges Rush and its affiliates,
heirs, executors, successors, agents, licensees, officers and directors, from
and agrees not to sue any of such released parties concerning, any Released
Matters, including without limitation, any and all claims relating to
4-aminopyridine. For the avoidance of this doubt, this release does not extend
to matters that may arise after the Effective Date under this Side Agreement or
under the Rush/Acorda License.

7.             Each party to this release acknowledges that they have
been advised by legal counsel and are familiar with Section 1542 of the Civil
Code of the State of California, which states:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.

The parties each expressly waive any right or benefit
which they have or may have under Section 1542 of the California Civil Code or
any similar provision of the statutory or non-statutory law of any other
jurisdiction, including Delaware.  The
parties acknowledge that in the future they may discover claims or facts in
addition to or different from those that they now know or believe to exist with
respect to the subject matter of this Release, and that each of Rush, Acorda,
and Elan, as applicable, intends to fully, finally, and forever settle all of
the Released Matters in exchange for good and valuable consideration.  This release will remain in effect as a full
and complete release notwithstanding the discovery or existence of any
additional claims or facts.

The release provided for by this Paragraph 7 is
executed voluntarily and without any duress or undue influence on the part or
behalf of the parties hereto, with the full intent of releasing all claims. The
parties represent and warrant that:

 

3

 

(a)           they have read the release provided
for herein;

(b)           they have been represented in the
preparation, negotiation, and execution of the release by legal counsel of
their own choice; and

(c)           that, other than claims asserted by
Rush (which claims are expressly included in the Released Matters), it has no
knowledge of any claims asserted or assertable by any person or entity relating
to the subject matter of this Agreement, which are not released by this release
provided for by this Paragraph.

8.             All notices or other communications which are required
or permitted hereunder shall be in writing and sufficient if delivered
personally, sent by facsimile (and promptly confirmed by personal delivery,
registered or certified mail or overnight courier), sent by
nationally-recognized overnight courier or sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

 

	
  if to Acorda to:

  	
  ACORDA THERAPEUTICS,
  INC..

  
	
   

  	
  15 Skyline Drive

  
	
   

  	
  Hawthorne, New York
  10532

  
	
   

  	
  United States of
  America

  
	
   

  	
  Attention:  President

  
	
   

  	
  Fax No.: 914.347.4560

  
	
   

  	
   

  
	
  if to Elan to:

  	
  ELAN CORPORATION, PLC.

  
	
   

  	
  c/o Elan International
  Services Ltd.

  
	
   

  	
  102 St. James Court

  
	
   

  	
  Flatts,

  
	
   

  	
  Smiths FL04

  
	
   

  	
  Bermuda

  
	
   

  	
  Attention: Secretary

  
	
   

  	
  Fax:    +1
  441 292 2224

  
	
   

  	
   

  
	
  if to EPRC to:

  	
  Elan Drug Delivery Inc

  
	
   

  	
  c/o Elan Pharmaceuticals
  Inc

  
	
   

  	
  South San Francisco,

  
	
   

  	
  800 Gateway Boulevard,

  
	
   

  	
  South San Francisco,

  
	
   

  	
  CA 94080, U.S.A.

  
	
   

  	
  Fax 650 553 7165

  

 

4

 

	
  if to Rush to:

  	
  RUSH-PRESBYTERIAN-ST.
  LUKE’S MEDICAL

  CENTER

  
	
   

  	
  1725 W. Harrison St.

  
	
   

  	
  Chicago, Ill. 60612

  
	
   

  	
  United States of
  America

  
	
   

  	
  Attention: Intellectual
  Property Office/General

  
	
   

  	
        Counsel’s Office

  
	
   

  	
  Fax No.: 312. 942. 2055

  

9.             This Side Agreement shall be effective as of
September  26, 2003 (“Effective Date”),
and shall be governed by the laws of the State of New York without reference to
any rules of conflict of laws.

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

IN WITNESS WHEREOF, the Parties have executed this
Side Agreement as of the Effective Date.

 

	
  ACORDA THERAPEUTICS,
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ron Cohen

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Ron Cohen

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  	
   

  
	
   

  	
   

  
	
  ELAN CORPORATION, PLC.

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Kevin Insley

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Kevin Insley

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
  ELAN DRUG DELIVERY INC.

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Jean M. Duvall

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jean M. Duvall

  	
   

  
	
   

  	
  Title:

  	
  Vice President and
  Secretary

  	
   

  
	
   

  	
   

  
	
  RUSH-PRESBYTERIAN-ST.
  LUKE’S MEDICAL CENTER

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ James T. Frankenbach

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James T. Frankenbach

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
					

 

5Exhibit 10.12

 

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.

RUSH PAYMENTS AGREEMENT

REFERENCE IS MADE to (i) the License Agreement
effective  as of September 26, 2003, by
and between RUSH-PRESBYTERIAN-ST. LUKE’S MEDICAL CENTER,
an Illinois not-for-profit corporation and having its principal office at 1725
W. Harrison St. Chicago, Ill. 60612 (“Rush”), and ACORDA
THERAPEUTICS, INC., a corporation organized and existing under the
laws of the State of Delaware and having its principal office at 15 Skyline
Drive, Hawthorne, New York 10532 (“Acorda”), including the Side Agreement
attached thereto as Exhibit 1.31 by and among Rush, Acorda and Elan (as
defined below) (the “Side Agreement”), a copy of which is attached as Exhibit A hereto (the “Rush/Acorda License”); and
(ii) the Amended and Restated License Agreement effective as of September 26,
2003 by and between Acorda and ELAN CORPORATION, PLC.,
a public limited company incorporated under the laws of Ireland and having its
registered office at Lincoln House, Lincoln Place, Dublin 2, Ireland (“Elan”)
(the “Elan/Acorda License”). The Rush/Acorda License and the Elan/Acorda
License are sometimes collectively referred to herein as the “Novation
Agreements” and Elan and Acorda are sometimes referred to herein as the
“Parties”.

WHEREAS, in connection with and in consideration of
the Novation Agreements, Acorda and Elan have agreed to enter into this Rush
Payments Agreement with the intention to set forth the respective allocation
between the Parties of certain amounts payable under the Rush/Acorda License
and certain other rights and obligations of the Parties.

NOW THEREFORE, in consideration of the premises and
the mutual covenants hereinafter recited and set forth in the Novation
Agreements and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally
bound, the Parties agree as follows:

1.             With respect to the US $[**] license fee set forth in
Section 5.1 of the Rush/Acorda License, each of Acorda and Elan shall be
responsible for [**] of such license fee. Accordingly, on the Effective Date,
Elan shall pay Acorda US$[**] as Elan’s [**] share of such payment.

2.             With respect to milestone payments that become payable
under Section 5.2 of the Rush/Acorda License, the following shall be
applicable:

(a)           Each of Acorda and Elan shall be
responsible for [**] of any milestone payments payable to Rush under Section
5.2 (a) or 5.2 (b) of the Rush/Acorda License. Accordingly, if the milestone
events set forth in either Section 5.2 (a) or Section 5.2 (b) of the
Rush/Acorda License are achieved, (x) Acorda shall so advise Elan in writing
upon achievement of the applicable milestone event, and (y) Elan shall pay
Acorda an amount equal to [**] of the applicable milestone payment upon receipt
of such notice as Elan’s share of such payment; and

(b)           Elan shall be responsible for [**] of
any milestone payments payable to Rush under Section 5.2 (c) of the Rush/Acorda
License. Accordingly, if the milestone event set forth in Section 5.2 (c) of
the Rush/Acorda License is achieved, Acorda shall so advise Elan in writing
upon achievement of the applicable milestone event and Elan shall pay Acorda an
amount equal to [**] of the applicable milestone payment upon receipt of such
notice.

 

1

 

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.             In addition, Acorda shall pay to Elan an additional
royalty of:

(i)                                     [**] of NSP of the Product sold outside
the US during the Base Royalty Term (as such term is defined in the Rush/Acorda
License);

(ii)                                  [**] of NSP of the Product sold outside
the US during the Reduced Royalty Term (as such term is defined in the
Rush/Acorda License);

(iii)                               during the Reduced Royalty Term, [**] of
the difference between (a) the royalty that would have been payable by Acorda
to Rush during the Base Royalty Term and (b) the royalty payable by Acorda to
Rush during the Reduced Royalty Term under Section 5.3.1 of the Rush/Acorda
License on such sales of Product in the applicable country; and/or

(iv)                              after termination or expiration of
Acorda’s royalty obligations to Rush under the Rush/Acorda License in any
country, [**] of NSP of the Product in such country; (with the amounts payable
under the foregoing subparagraphs (i), (ii) (iii) and/or (iv), as applicable,
referred to as  the “Additional
Royalty”);

provided, however, that  in the event the provisions of Clause 5.6.2
or Clause 5.6.3 of the Elan/Acorda License are applicable, any Additional
Royalty payable shall be limited to [**] of NSP of Product. All payments of the
Additional Royalty shall be made in accordance with the provisions of Clauses
5.6.4, 5.6.5 and 5.6.6 of the Elan/Acorda License, and Article 5.9 of the
Elan/Acorda License, to the extent applicable.

4.             In the event that Elan breaches any of its financial
obligations and undertakings under Paragraph 2 of this Rush Payments Agreement,
Acorda may offset and credit the amount of the unpaid financial obligation,
together with accrued interest thereon, against any amounts payable from Acorda
to Elan under the Elan/Acorda License including, without limitation, amounts
payable under Section 3.4 of the Elan/Acorda License. In the event that it is
determined that Acorda has incorrectly offset or credited any amounts pursuant
to this Paragraph 4, Acorda shall promptly pay the incorrectly offset or
credited amount, together with accrued interest thereon, to Elan.

5.             In the event that Acorda has breached any financial or
other curable obligation under the Rush/Acorda License which breach would give
Rush the right, pursuant to the Section 8.2.1 of the Rush/Acorda License, to
terminate the Rush/Acorda License and, pursuant to the terms of the Side
Agreement, Elan has the right to and remedies such breach (provided, however,
that Elan shall not have the right to remedy such breach if such breach has
been consented to by Elan or is primarily due to the fault of Elan or if Elan
is in breach of the terms of this Rush Payments Agreement or the Elan/Acorda
License), Elan may charge Acorda an amount equal to the amount so paid by Elan
to Rush to remedy such breach on behalf of Acorda. In the event that it is
determined that Elan has incorrectly charged any amounts to Acorda pursuant to
this

 

2

 

Paragraph 5 and Acorda has paid such amounts, Elan
shall promptly repay to Acorda the incorrectly charged and paid amount,
together with accrued interest thereon.

6.             In the event that Rush terminates the Rush/Acorda
License pursuant to Section 8.2.1 thereof as a result of a breach by Acorda
and, pursuant to the terms of the Side Agreement, Elan has the right to and
elects to assume the rights and obligations of Acorda under the Rush/Acorda
License (provided, however, that Elan shall not have the right to assume such
rights and obligations if such breach has been consented to by Elan, is
primarily due to the fault of Elan or if Elan is in breach of the terms of this
Rush Payments Agreement or the Elan/Acorda License), Elan may charge Acorda an
amount equal to any amounts or financial obligations so paid or incurred by
Elan to Rush pursuant to Elan’s assumption of Acorda’s obligations under the
Rush/Acorda License.

7.             Acorda agrees to indemnify Elan from and against any
losses and liability arising from any claims made by Rush against Elan after
the Effective Date resulting primarily from any acts or omissions of Acorda
under the Rush/Acorda License.  Elan shall
give Acorda prompt notice of any such loss or liability, shall cooperate in its
defense, and shall give Acorda full authority to defend and settle such claim
on Elan’s behalf. This indemnity obligation shall not apply in the case of
losses primarily caused by or based on (i) Elan’s acts or omissions; or (ii)
any breach of this Rush Payments Agreement, the Side Agreement or the
Elan/Acorda License by Elan.

In the event Elan has the right to and elects to cure
any Acorda breach of, or assumes the rights and obligations of Acorda under
the, Rush/Acorda License in accordance with the terms of the Side Agreement and
this Rush Payments Agreement, Elan agrees to indemnify Acorda from and against
any losses and liability arising from any claims made by Rush against Acorda
resulting from any acts of Elan after the date that Elan cures  such breach or assumes Acorda’s obligations
under the Rush/Acorda License.  Acorda
shall give Elan prompt notice of any such loss or liability, shall cooperate in
its defense, and shall give Elan full authority to defend and settle such claim
on Acorda’s behalf. This indemnity obligation shall not apply in the case of
losses primarily caused by or based on (i) Acorda’s acts or omissions; or (ii)
any breach of this Rush Payments Agreement, the Side Agreement or the
Elan/Acorda License by Acorda.

8.             All notices or other communications
which are required or permitted hereunder shall be in writing and sufficient if
delivered personally, sent by facsimile (and promptly confirmed by personal
delivery, registered or certified mail or overnight courier), sent by
nationally-recognized overnight courier or sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

	
  if to Acorda to:

  	
  ACORDA THERAPEUTICS, INC..

  
	
   

  	
  15 Skyline Drive 

  
	
   

  	
  Hawthorne, New York
  10532

  
	
   

  	
  Attention:  President

  
	
   

  	
  Fax No.: 914.347.4560

  

 

3

 

	
   

  	
   

  
	
  if to Elan to:

  	
  ELAN CORPORATION, PLC.

  
	
   

  	
  c/o Elan
  International Services Ltd.

  
	
   

  	
  102 St. James
  Court

  
	
   

  	
  Flatts,

  
	
   

  	
  Smiths FL04
  Bermuda

  
	
   

  	
  Attention:
  Secretary

  
	
   

  	
  Fax No: +1 441
  292 2224

  

9.             This Rush Payments Agreement shall be effective as
of  the date set forth below  (“Effective Date”), and shall be governed by
the laws of the State of New York without reference to any rules of conflict of
laws.  Any disputes under this Agreement
shall be governed by the dispute resolution provisions of Article 12.14 of the
Elan/Acorda License.

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

IN WITNESS WHEREOF, the
Parties have executed this Rush Payments Agreement as of September____, 2003.

	
  ACORDA THERAPEUTICS, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  
	
  ELAN CORPORATION, PLC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  
								

 

4

 

EXHIBIT A

RUSH/ACORDA LICENSE

 

5

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