Document:

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                                                                   Exhibit 10.17

                                LICENSE AGREEMENT

                                 by and between

                             BioTie Therapies Corp.

                                       and

                          Somaxon Pharmaceuticals, Inc.

                                12 November 2004

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                          <C>
1.     DEFINITIONS............................................................................                2
2.     LICENSE................................................................................                6

       2.1    License Grant...................................................................                6
       2.2    After-Acquired Patents and Know-How.............................................                6
       2.3    University of Minnesota; Ivax Corporation.......................................                7
       2.4    Reservation of Rights...........................................................                7
       2.5    Sublicense......................................................................                7

3.     TRADE MARKS............................................................................                8

4.     PAYMENTS...............................................................................                8

       4.1    Milestone Payments..............................................................                8
       4.2    Royalties.......................................................................                8

              4.2.1      Royalty for Products within the Scope of the Patents.................                8
              4.2.2      Royalty in Case of Combination Products and Required Licenses........                9
              4.2.3      Other Indications....................................................               10
              4.2.4      Escrow in Case of Challenge..........................................               10
              4.2.5      Potential Offset for Clinical Trial Expenses.........................               10

       4.3    Sublicensing Fees...............................................................               10
       4.4    Calculations, Payment and Tax Withholding.......................................               12

5.     SUPPLY OF MATERIAL.....................................................................               13

6.     WARRANTIES.............................................................................               13

       6.1    General.........................................................................               13
       6.2    Corporate Existence and Power...................................................               13
       6.3    Authority.......................................................................               14
       6.4    Grant of Rights.................................................................               14
       6.5    Intellectual Property...........................................................               14

7.     DEVELOPMENT OF THE PRODUCTS AND REGULATORY MATTERS.....................................               15

       7.1    Development Plan................................................................               15
       7.2    Steering Committee..............................................................               15
       7.3    Diligence.......................................................................               16
       7.4    Clinical Trials and Regulatory Matters..........................................               15
       7.5    Pharmacovigilance...............................................................               16

8.     SALES AND MARKETING EXPENDITURE PLAN; MINIMUM ROYALTIES................................               17

       8.1    Sales and Marketing Expenditure Plan............................................               17
       8.2    Minimum Royalties...............................................................               17

9.     PATENT MAINTENANCE.....................................................................               18

       9.1    IPR Defence.....................................................................               19
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                          <C>
       9.2    Patent Infringements............................................................               19

10.    IMPROVEMENTS AND JOINT INVENTIONS......................................................               20

       10.1   Improvements....................................................................               20
       10.2   Joint Inventions................................................................               21

11.    TERMINATION............................................................................               21

12.    COMPETITION............................................................................               23

13.    RECORD KEEPING AND AUDITING............................................................               23

14.    LIABILITy AND INDEMNIFICATION..........................................................               24

15.    CONFIDENTIALITY........................................................................               26

16.    FORCE MAJEURE..........................................................................               27

17.    NOTICES................................................................................               28

18.    ASSIGNMENT.............................................................................               29

19.    RELATIONSHIP OF PARTIES................................................................               29

20.    NO WAIVER..............................................................................               29

21.    COMPLIANCE WITH LAWS...................................................................               29

22.    SEVERABILITY OF CLAUSES................................................................               29

23.    AMENDMENTS.............................................................................               30

24.    ENTIRE AGREEMENT.......................................................................               30

25.    GOVERNING LAW..........................................................................               30

26.    DISPUTE RESOLUTION.....................................................................               30

27.    SPECIFIC PERFORMANCE...................................................................               30

28.    EXPENSES...............................................................................               31

29.    APPENDICES AND HEADINGS................................................................               31

30.    COUNTERPARTS OF THIS LICENSE AGREEMENT.................................................               31
</TABLE>

<PAGE>

LIST OF APPENDICES

       APPENDIX 1.27    List of Patents

       APPENDIX 2-A     Minnesota Agreement

       APPENDIX 2-B     Ivax Agreement

       APPENDIX 2-C     Minnesota Tri-Party Agreement

       APPENDIX 2-D     Ivax Tri-Party Agreement

       APPENDIX 4.2.3   Restrictions on Use of Know-How

       APPENDIX 7.1     Responsibilities of the Parties

       APPENDIX 7.5     Joint Operating Procedure on ADR reporting for Nalmefene

       APPENDIX 15      Initial Press Release

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LICENSE AGREEMENT

            THIS  LICENSE AGREEMENT is entered into on this the 12th day of
            November 2004, by and between

      1.    BIOTIE THERAPIES CORP., a corporation incorporated and existing
            under the laws of Finland, having its registered domicile in Turku,
            Finland and with business identity code 1475830-6 ("BTT")

            and

      2.    SOMAXON PHARMACEUTICALS, INC., a corporation incorporated and
            existing under the laws of the state of Delaware in the United
            States of America and having its principal place of business in San
            Diego, California ("Somaxon").

            Each  also referred to as "PARTY" or together as "PARTIES".

      RECITALS

      A.    BTT is, amongst others, active in the research and development of
            nalmefene for dependence disorders, such as alcohol dependence and
            impulse control disorders (including pathological gambling,
            kleptomania, pyromania, intermittent explosive disorders) for which
            BTT has obtained certain patents.

      B.    BTT has obtained the patents referred to above through its own
            development and in-licensing. In addition, BTT has licensed certain
            rights from Ivax Corporation ("IVAX") to use certain preclinical
            documentation and data relating to nalmefene for certain dependence
            disorders. BTT has further developed and, by its own studies,
            complemented the preclinical data as well as conducted clinical
            studies with nalmefene. Through studies conducted or arranged by
            BTT, BTT has obtained additional preclinical and clinical data and
            know-how relating to nalmefene.

      C.    Somaxon has experience and know-how in the clinical development of
            drug substances affecting the central nervous system.

      D.    Somaxon has expressed its interest in developing clinically,
            obtaining a regulatory marketing approval for and commercialising
            the IPR in the Territory.

      E.    The Parties have entered into a Co-operation and Option Agreement in
            order to assess the feasibility of a license arrangement for the
            purpose of commercialising the IPR in the Territory and with the aim
            to fulfill the Goal within the Term and, upon fulfillment, to enter
            into the License Agreement.

      F.    The Goal set forth in the Co-operation and Option Agreement has been
            fulfilled and the Parties hereby enter into the License Agreement on
            the terms and conditions as stipulated hereinbelow. A.

<PAGE>

               NOW THEREFORE, the Parties hereby agree as follows:

1.    DEFINITIONS

            As used in this License Agreement, unless expressly otherwise
            stated or evident in the context, the following terms shall
            have the meanings defined below. The singular (where
            appropriate) shall include the plural and vice versa and
            references to Appendices and Sections shall mean appendices
            and sections of this License Agreement.

1.1  "AFFILIATE"            shall mean any company or other entity which
                            directly or indirectly controls or is controlled by
                            or is under common control with a Party hereto by
                            means of ownership of at least fifty (50) percent of
                            the voting stock or similar interest in said company
                            or other entity.

1.2  "BTT INDEMNITEE"       shall have the meaning as set forth in Section 14.

1.3  "BTT"                  shall mean BioTie Therapies Corp.

1.4  "BUDGET"               shall have the meaning as set forth in Section 8.1

1.5  "DAMAGES"              shall mean any liabilities, damages, losses, costs,
                            claims or expenditures as set forth in Section 14.

1.6  "EFFECTIVE DATE"       shall mean the date of the License Agreement.

1.7  "FDA"                  shall mean the United States Food and Drug
                            Administration of the United States Department of
                            Health and Human Services.

1.8  "FIELD"                shall mean the treatment of impulse control
                            disorders, (including pathological gambling,
                            kleptomania, pyromania and intermittent explosive
                            disorders), alcohol dependence, obsessive compulsive
                            disorders, eating disorders and nicotine dependence.

1.9  "COMPETITIVE PRODUCT"  shall mean any product that (i) contains nalmefene
                            as an active ingredient and/or (ii) is labeled for
                            the treatment of an indication within the Field.

1.10 "CONFIDENTIAL          shall mean all information, Know-How, data,
      INFORMATION"          memoranda, reports, interpretations, forecasts and
                            records (whether written or in any other form)
                            containing or otherwise reflecting information
                            relating to BTT's as well as BTT's licensors'
                            business activity and Somaxon's business or any
                            other matter or thing which is not available to the
                            general public and which has been disclosed by or on
                            behalf of BTT and/or Somaxon, whether before or
                            after the date of this License Agreement.

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1.11 "[***] YEAR DATE"      shall mean the [***].

1.12 "FORCE MAJEURE EVENT"  shall have the meaning as set forth in Section 16.

1.13 "GENERIC APPROVAL      shall mean the date of first regulatory or marketing
      DATE"                 approval in the Territory of a product containing
                            nalmefene and which is frequently and customarily
                            prescribed or used for treatment of one or more of
                            the approved indications set forth in the Initial
                            NDA or subsequent regulatory approvals in the U.S.
                            (or any equivalent regulatory approval or
                            marketing authorization filed with any equivalent
                            agency or governmental authority in any other
                            country in the Territory), including, but not
                            limited to, (i) a product covered by an Abbreviated
                            New Drug Application (ANDA) in the U.S. by the FDA
                            (or equivalent regulatory approval or marketing
                            authorisation filed with any equivalent agency or
                            governmental authority in any other country in the
                            Territory) which references the Initial NDA or (ii)
                            a product with frequent and customary "off label"
                            use for one or more of such approved indications.

1.14 "IMPROVEMENTS"         shall mean any uses, inventions, discoveries,
                            modifications, reformulations or results, whether
                            patentable or not, developed by either or both of
                            the Parties relating to nalmefene or a chemical
                            entity within the scope of a valid claim under the
                            Patents, including, but not limited to:

                              -    any new use of nalmefene;

                              -    any new combination product that contains
                                   nalmefene; and

                              -    any derivative, prodrug, hydrate, salt,
                                   ester, isomer, polymorph or analogue of
                                   nalmefene.

                            For the avoidance of doubt, the term "Improvements"
                            shall exclude any product that does not contain
                            nalmefene or a chemical entity within the scope of a
                            valid claim under the Patents.

1.15 "INITIAL NDA"          shall mean the New Drug Application and all
                            amendments and supplements thereto filed with the
                            FDA relating to the Patents or for which the
                            Know-How is being used.

1.16 "IPR"                  shall mean the Patents and Know-How.

1.17 "IVAX"                 shall mean Ivax Corporation.

1.18 "IVAX AGREEMENT"       shall mean the Exclusive License Agreement attached
                            hereto as Appendix 2-B.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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1.19 "KNOW-HOW"             shall mean information and know-how needed for
                            obtaining a regulatory approval for any medicinal or
                            pharmaceutical product in the Field generated by BTT
                            or licensed in by BTT before or during the term of
                            this License Agreement from third parties of
                            whatever nature, whether or not patentable,
                            including ideas, discoveries, documentation,
                            invention, data, formulae, techniques, methods,
                            procedures for experiments and tests, protocols,
                            technical information, specifications, formulas,
                            results of experiments and tests (including, but not
                            limited to preclinical and clinical data), designs,
                            sketches, records, drugs and analyses. Any
                            information and know-how licensed in by BTT after
                            the date of this License Agreement shall be included
                            into this definition subject to that BTT has the
                            right, based on the agreement with the third party,
                            to license out such information and know how in the
                            Territory.

1.20 "LICENSE AGREEMENT"    shall mean this License Agreement and the Appendices
                            hereto.

1.21 "MARKET EXCLUSIVITY    shall mean the termination of regulatory market
      TERMINATION DATE"     exclusivity period provided by the FDA and its
                            applicable data protection rules and regulations
                            for the Product in the Territory.

1.22 "MINIMUM ROYALTY"      shall have the meaning as defined in Section 8.2.

1.23 "MINIMUM ROYALTY       shall have the meaning as defined in Section 8.2.
      DEADLINE"

1.24 "MINNESOTA AGREEMENT"  shall mean License Agreement attached hereto as
                            Appendix 2-A.

1.25 "NDA"                  shall mean a New Drug Application and all amendments
                            and supplements thereto filed with the FDA (as more
                            fully defined in 21 C.F.R. 314.5 et seq.).

1.26 "NET SALES"            shall mean the total gross amount invoiced by
                            Somaxon or its Affiliates from the sale of any
                            Product to third parties less the sum of (a) [***],
                            (b) [***], (c) [***], (d) [***], and (e) [***].

1.27 "NEW PRODUCT"          shall have the meaning as set forth in Section 10.1.

1.28 "PARTY"                shall mean BTT or Somaxon and "Parties" both BTT and
                            Somaxon.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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1.29 "PATENTS"              shall mean impulse control disorder related patent
                            granted in the United States and identified with No.
                            5,780,479 and alcoholism related patents No.
                            4,882,335, No. 5,086,058, No. 5,096,715 as well as
                            any patent application or patent relating to the
                            Field to which BTT has or acquires any right, title
                            or interest during the term of the License
                            Agreement, and all possible divisions, renewals,
                            continuations, continuations-in-part, reissues,
                            extensions and substitutions thereof and all foreign
                            counterparts in countries within the Territory. The
                            Patents as of the Effective Date of this License
                            Agreement, including the current applications are
                            identified in Appendix 1.27 to this License
                            Agreement.

1.30 "PATENT EXPIRATION     shall mean the earlier of (i) the expiration of the
     DATE"                  last to expire of the patents covering the Product
                            (including Patents, if applicable) or (ii) the date
                            that all remaining unexpired patent(s) covering the
                            Product (including Patents, if applicable) have been
                            invalidated in a decision by a court of competent
                            jurisdiction for which no appeal has been sought.

1.31 "PATHEON"              shall mean Patheon Inc.

1.32 "PRODUCT"              shall mean a pharmaceutical product which consists
                            of nalmefene hydrochloride and the manufacture, use,
                            sale or importation of which would infringe a valid
                            claim under the Patents but for the licenses
                            contemplated hereby or for which Know-How is
                            required.

1.33 "SALES AND MARKETING   shall mean the sales and marketing plan for the
     PLAN"                  Products in the Territory prepared and confirmed in
                            accordance with Section 8 of this License Agreement.

1.34 "SOMAXON"              shall mean Somaxon Pharmaceuticals, Inc.

1.35 "SOMAXON ANALOGUE/     shall mean any product containing any analogue,
     DERIVATIVE"            derivative prodrug, hydrate, salt, ester, isomer or
                            polymorph of nalmefene as an active ingredient, in
                            any formulation and through any mode of
                            administration, developed or in-licensed by Somaxon.

1.36 "SOMAXON INDEMNITEE"   shall have the meaning as set forth in Section 14.

1.37 "STEERING COMMITTEE"   shall mean a committee consisting of two (2)
                            representatives of each Party.

1.38 "SUBLICENSEE"          shall have the meaning as set forth in Section 4.3.

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1.39 "SUBLICENSING          shall have the meaning as set forth in Section 4.3.
     REVENUES"

1.40 "TARGET SALES CALLS"   shall have the meaning as set forth in Section 8.1

1.41 "TERRITORY"            shall mean North America comprised of the United
                            States, Canada, Mexico and their territories and
                            possessions (including but not limited to, the
                            Commonwealth of Puerto Rico).

1.42 "TRADE MARKS"          shall mean BTT's trademarks "Soberal" and "Cessal"
                            registered in the United States and any other
                            countries within the Territory.

2.   LICENSE

2.1  LICENSE GRANT

                     In partial consideration of the payments referred to in
                     Section 4 below and subject to the terms and conditions of
                     this License Agreement, BTT hereby grants to Somaxon an
                     exclusive (even as to BTT), royalty-bearing license, with
                     the right to sublicense, under the Patents and Know-How as
                     well as Improvements developed or acquired by BTT during
                     the term of the License Agreement, which are necessary or
                     useful to develop, make, have made, use, sell, have sold,
                     offer for sale, import, or otherwise commercialise Products
                     in the Territory. Subject to earlier termination under
                     Section 11 below, the license set forth herein shall expire
                     as to the Patents upon the expiration of the last to expire
                     patent within the Patents. The royalties payable during the
                     validity of the Patents and after the expiration of the
                     Patents are set forth in Section 4 below. After the
                     termination of all relevant royalty periods set forth in
                     Section 4 below, Somaxon shall have a fully paid-up and
                     exclusive license under the Know-How for the Field in the
                     Territory.

2.2  AFTER-ACQUIRED PATENTS AND KNOW-HOW

                     Any Patents and Know-How acquired by BTT during the term of
                     this License Agreement shall be automatically included in
                     the license set forth above, provided that BTT has the
                     right based on the applicable agreement ("Third Party
                     Agreement") with the third party(ies) from whom such rights
                     have been acquired, to grant a sublicense in the Territory
                     to such rights. If and to the extent BTT is required to pay
                     to such third party(ies) any payments, and Somaxon wants to
                     exploit such rights acquired by BTT after the signing of
                     this License Agreement, the remuneration payable by Somaxon
                     to BTT under Section 4 below shall be adjusted in good
                     faith negotiations by the Parties so that BTT is able to
                     make such payments to the third party(ies) and receive
                     reasonable compensation for such sublicensing. If and when
                     any Third Party Agreement is executed under which Somaxon
                     receives a sublicense from BTT, BTT agrees that it shall
                     not do anything to terminate nor make any amendment,
                     supplement or other modification to the applicable Third
                     Party Agreement which

<PAGE>

                     would adversely affect the rights of BTT and/or Somaxon,
                     except with the prior written consent of Somaxon (not to be
                     unreasonably withheld).

2.3  UNIVERSITY OF MINNESOTA; IVAX CORPORATION

                     The license set forth above shall include the sublicense of
                     all of BTT's rights with respect to the Territory under (i)
                     its License Agreement with the University of Minnesota
                     dated April 17, 2000, a correct and complete copy of which
                     is attached hereto as Appendix 2-A (the "MINNESOTA
                     AGREEMENT"), and (ii) its Exclusive License Agreement with
                     Ivax Corporation ("Ivax") dated April 28, 1998, as amended
                     by the First Amendment thereto dated February 1, 1999 and
                     the Second Amendment thereto dated ______, 2004, a correct
                     and complete copy of which is attached hereto as Appendix
                     2-B (as amended, the "IVAX AGREEMENT"). BTT agrees that it
                     shall not do anything to terminate nor make any amendment,
                     supplement or other modification to the Minnesota Agreement
                     or the Ivax Agreement which would adversely affect the
                     rights of BTT and/or Somaxon under such agreements as of
                     the date hereof, except with the prior written consent of
                     Somaxon (not to be unreasonably withheld).

                     In connection with this License Agreement, the parties have
                     entered into Tri-Party Agreements related to the sublicense
                     of rights under the Minnesota Agreement and the Ivax
                     Agreement. A copy of the Tri-Party Agreement with the
                     University of Minnesota is attached hereto as Appendix 2-C,
                     and a copy of the Tri-Party Agreement with Ivax is attached
                     hereto as Appendix 2-D.

2.4  RESERVATION OF RIGHTS

                     Each Party expressly acknowledges and agrees that other
                     than (i) the license granted by BTT to Somaxon in this
                     License Agreement, including the Improvements of BTT
                     contemplated above, (ii) the sale and transfer of the
                     Trademarks in the Territory set forth in Section 3 below
                     and (iii) the rights with respect to Improvements and
                     inventions set forth in Section 10 below, neither Party
                     will acquire or will have a right to claim any other rights
                     in, or to the use of other patents, know-how or
                     intellectual property rights owned, controlled, adopted or
                     used by the other Party. Subject to the non-competition
                     covenant set forth in Section 12, it is also agreed and
                     understood that nothing in this License Agreement shall
                     restrict BTT from developing the IPR or entering into
                     license negotiations or license agreement(s) with third
                     parties concerning IPR and/or Improvements in territories
                     other than the Territory.

2.5  SUBLICENSE

                     Somaxon may grant sublicenses hereunder to any third party,
                     which (i) is independent from and not an Affiliate of
                     Somaxon, and (ii) would in Somaxon's good faith judgment
                     serve to increase the commercial potential of the IPR
                     and/or Products. However, such sublicenses shall not
                     relieve Somaxon of its obligations to BTT under this
                     License Agreement. Until the expiration of the Minnesota
                     Agreement, Somaxon shall give BTT at least fifteen (15)
                     days advance notice of the major terms of any sublicense
                     agreement, with sufficient

<PAGE>

                     detail to support BTT's required notice to the University
                     of Minnesota under Section 4.4 of the Minnesota Agreement.
                     Although Somaxon shall retain sole discretion over the
                     terms of any such sublicense agreement, Somaxon shall
                     consider in good faith any reasonable comments made by BTT
                     (including comments from the University of Minnesota which
                     maybe relayed by BTT to Somaxon) prior to entering into the
                     sublicense agreement.

3.   TRADE MARKS

                     In partial consideration of the payments referred to in
                     Section 4 below, BTT hereby transfers all rights, title,
                     and interest in the Trade Marks, and all goodwill
                     associated therewith, in the Territory to Somaxon. In
                     furtherance of such transfer, BTT shall execute and deliver
                     to Somaxon appropriate instruments of assignment of trade
                     marks to facilitate the recording of the transfer of the
                     Trade Marks in the Territory.

4.   PAYMENTS

                     In consideration of entering into this License Agreement,
                     Somaxon agrees to pay BTT the milestone payments and
                     royalties based on the Net Sales of the Products, as set
                     out below.

4.1  MILESTONE PAYMENTS

                     Somaxon shall make the following non-refundable fixed
                     payments to BTT upon the occurrence of the indicated
                     milestones:

                     (a)    U.S. $3,000,000 (three million) as a signing fee for
                            this License Agreement;

                     (b)    [***] upon [***];

                     (c)    [***]upon [***]; and

                     (d)    [***] upon [***] and a [***] upon [***].

                     Such milestone payments shall, unless otherwise mutually
                     and explicitly agreed in writing, be paid within fifteen
                     (15) days after the occurrence of the milestones set forth
                     above. Notwithstanding the foregoing, the above milestone
                     payments are subject to reduction under the limited
                     circumstances described in Section 7.4 below.

4.2  ROYALTIES

     4.2.1  ROYALTY FOR PRODUCTS WITHIN THE SCOPE OF THE PATENTS

                     Subject to the remainder of this Section 4.2, Somaxon will
                     pay to BTT the following royalty amounts on Net Sales
                     within the Territory on the indicated

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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                     Product type on a country-by-country basis for the
                     applicable period set forth below:

<TABLE>
<CAPTION>
                                          ROYALTY
             PRODUCT TYPE*                 RATE             START DATE                         END DATE
--------------------------------------    ------    ----------------------------   -------------------------------
<S>                                       <C>       <C>                            <C>
Product covered by a Patent within the    [***]     Effective Date                 Later of (i) Patent Expiration
IPR; and any Improvements to such                                                  Date or  (ii) Market Exclusivity
Patent                                                                             Termination Date

                                          [***]     Later of (i) Patent            Generic Approval Date or until
                                                    Expiration Date or (ii)        May 2011, whichever is later
                                                    Market Exclusivity
                                                    Termination Date

Product not covered by a Patent within    [***]     Effective Date                 Patent Expiration Date
the IPR, but covered by another valid,
issued patent and dependent upon the
Know-How; and any Improvements thereto

                                          [***]     Patent Expiration Date         Generic Approval Date or
                                                                                   until May 2011, whichever is later

Product not covered by a Patent within    [***]     Effective Date                 Generic Approval Date or until
the IPR or any other valid, issued                                                 May 2011, whichever is later
patent but dependent upon the
Know-How; and any Improvements thereto
</TABLE>

*      The Parties agree that any determination of the type of Product for
       purposes of the foregoing table and the quantity or percentage of Net
       Sales of the Product related to one or more indications, including, but
       not limited to off-label indications or uses, shall be determined by one
       of the following methods, at Somaxon's election: (i) marketing and sale
       under a distinct brand or tradename or (ii) review of IMS Health sales
       data (or similar third party prescription market research data).

       4.2.2  ROYALTY IN CASE OF COMBINATION PRODUCTS AND REQUIRED LICENSES

                     The foregoing royalty for Products for which the [***]
                     royalty is being applied may be reduced by any amounts
                     actually paid by Somaxon to a third party in the form of a
                     royalty or other additional cost of goods, up to a maximum
                     of [***] of the royalty otherwise due, if, and only if,
                     Somaxon is required to pay such amounts to the third party
                     due to (i) any license of intellectual property rights due
                     to the potential or alleged infringement by the Product or
                     any Improvements of such third-party intellectual property
                     rights, or (ii) the presence in the Product or any
                     Improvements of a proprietary dosage delivery system and/or
                     active ingredient which alone would be outside the scope of
                     a valid claim under the Patents. In connection with any
                     such reduced royalty, Somaxon shall raise at the next
                     regularly scheduled meeting of the Steering Committee any
                     potential or alleged infringement or alternate delivery
                     system or active ingredient giving rise to the reduced
                     royalty and the Parties shall cooperate with one another in
                     good faith in connection with the negotiation and
                     implementation of any related license(s) from one or more
                     third party(ies); provided, however, that the Parties
                     understand and agree that Somaxon shall have sole
                     discretion over the ultimate determination of whether any
                     license(s) and the amounts payable to a third party
                     thereunder are "required" for purposes of

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                     this Section 4.2.2; provided, further, however, that the
                     maximum cumulative reduction of the royalties under (i) and
                     (ii) above shall not exceed [***].

       4.2.3  OTHER INDICATIONS

                     BTT acknowledges and agrees that Somaxon shall have the
                     right to negotiate directly with Ivax with respect to a
                     license to the clinical data for additional indications for
                     the Product. BTT shall provide reasonable cooperation to
                     Somaxon in any effort to license or otherwise acquire
                     rights to clinical data for additional indications for the
                     Product from Ivax.

                     BTT has set forth on Appendix 4.2.3 to this License
                     Agreement a complete and accurate description of any
                     restrictions as to the use of such Know-How for indications
                     outside the Field. Somaxon acknowledges that a portion of
                     the Know-How is licensed in by BTT and confirms that it
                     will comply with restrictions described on Appendix 4.2.3.

       4.2.4  ESCROW IN CASE OF CHALLENGE

                     BTT shall notify Somaxon in writing of any challenges to
                     the validity or enforceability of any Patent, whether in an
                     administrative or judicial forum, within five (5) business
                     days of BTT's first receipt of notice of such challenge. In
                     case the validity or enforceability of a Patent is
                     challenged by a third party, Somaxon shall deposit
                     royalties which may otherwise be due to BTT hereunder which
                     are in excess of [***] of Net Sales, or in case BTT is
                     liable to pay royalty amounts based on sales of products in
                     excess of this amount under the Minnesota Agreement or the
                     Ivax Agreement, such amount, of applicable Net Sales in an
                     interest bearing escrow account until the final
                     determination of the validity or enforceability of such
                     Patent. If the challenge to the validity or enforceability
                     of any Patent is successful, Somaxon shall cancel the
                     escrow and retain all funds, royalties and accrued interest
                     deposited in such escrow, and the royalty percentage shall
                     be adjusted to take into account the new categorization of
                     the Product type set forth in Section 4.2.1 above. If the
                     challenge to the validity or enforceability of such Patent
                     is unsuccessful, Somaxon shall release the escrowed funds,
                     including the interest accrued, to BTT, and thereafter,
                     continue paying the royalties directly to BTT as
                     contemplated in Section 4.2.1 above.

       4.2.5  POTENTIAL OFFSET FOR CLINICAL TRIAL EXPENSES

                     Notwithstanding the foregoing, the above royalty payments
                     are subject to reduction under the limited circumstances
                     described in Section 7.4 below.

       4.3    SUBLICENSING FEES

                     If Somaxon sublicenses its rights hereunder to a third
                     party (a "SUBLICENSEE"), Somaxon shall pay to BTT within
                     thirty (30) days of receipt, the following portion of the
                     Sublicensing Revenues (defined below) actually received by
                     Somaxon from the Sublicensee:

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              (a)    With respect to Sublicensing Revenues composed of up-front
                     or milestone fees not characterized as a royalty or
                     primarily derived from net sales: [***] of the Sublicensing
                     Revenues.

                     Notwithstanding the foregoing, in connection with Somaxon's
                     receipt of any Sublicensing Revenue composed of a milestone
                     payment from the Sublicensee that is triggered by an event
                     comparable to any event set forth in Section 4.1 above,
                     Somaxon shall pay to BTT only the greater of (i) the amount
                     due as a result of the applicable milestone under this
                     Section 4.3 [***] or (ii) the amount due as a result of the
                     applicable milestone under Section 4.3 [***], but not both.

              (b)    With respect to Sublicensing Revenues composed of royalties
                     or similar payments derived from net sales:

                     (i)    If Somaxon receives [***] or less of the
                            Sublicensee's net sales revenues from the sales of
                            the Product, Somaxon shall pay to BTT an amount
                            equal to [***] of the Sublicensing Revenues.

                     (ii)   If Somaxon receives more than [***] of the
                            Sublicensee's net sales revenues from the sales of
                            the Product, Somaxon shall pay to BTT an amount
                            equal to (i) [***] of the first [***] of the
                            Sublicensing Revenues, and (ii) an additional [***]
                            of the portion in excess of [***] of the
                            Sublicensing Revenues.

                            For purposes of illustration only, if Somaxon
                            receives [***] of the Sublicensee's net revenues
                            from the sale of Products, BTT shall be entitled to
                            receive an amount equal to [***] of the Sublicensing
                            Revenues received by Somaxon.

              It is, however, agreed and understood that the royalty payable by
              Somaxon to BTT based on Somaxon sublicensing any rights hereunder
              shall be at least an amount which BTT is liable to pay under the
              Minnesota Agreement and/or the Ivax Agreement for the licenses BTT
              has obtained and further licensed to Somaxon in this License
              Agreement plus a [***] share of the sales of the Products by the
              Sublicensee net of the deductions set forth in clauses (a) through
              (e) of the definition of Net Sales in Section 1 above.

              As used herein, "SUBLICENSING REVENUES" shall mean any up-front,
              milestone, royalty or other amounts received by Somaxon from a
              Sublicensee with respect to the sublicense of this License
              Agreement multiplied by a fraction where (i) the numerator is the
              applicable royalty rate set forth in Section 4.2.1 above based on
              the applicable Product type and (ii) the denominator is [***];
              provided however that "Sublicensing Revenues" shall not include
              any amounts

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              provided by a Sublicensee to Somaxon (a) primarily for research,
              development, sales and/or marketing support or (b) in the form of
              debt financing or bona fide equity investments in Somaxon made in
              connection with a corporate partnership, collaboration,
              co-promotion or similar arrangement; provided that (i) such debt
              financing or equity investments are on terms that are consistent
              with independent third party valuation of such debt or equity
              securities, or (ii) the proceeds of such debt financing or equity
              investment are substantially used for the commercialization of the
              IPR.

              For purposes of illustration only, if the applicable royalty rate
              under Section 4.2.1 for the Products sold by the Sublicensee is
              [***], the Sublicensing Revenues shall be equal to [***] of the
              amount received by Somaxon based on a fraction the numerator of
              which is [***] and the denominator of which is [***].

              All payments of amounts under this Section 4.3 shall be paid by
              Somaxon to BTT within thirty (30) days of Somaxon's receipt of the
              applicable Sublicensing Revenues from the Sublicensee and Somaxon
              shall provide a calculation of the milestone or royalties due
              under this Section 4.3 contemporaneously with the related payment
              to BTT.

4.4    CALCULATIONS, PAYMENT AND TAX WITHHOLDING

              Somaxon shall provide calculations of Net Sales in the Territory
              and related royalty due on a quarterly basis within sixty (60)
              days after the end of every calendar quarter.

              Somaxon shall pay royalties based on the calculations referred to
              above contemporaneously with the delivery of the required
              calculation (i.e., within sixty (60) days of the end of each
              calendar quarter) to a bank account designated by BTT.

              Any and all payments payable under this License Agreement shall be
              payable in U.S. dollars.

              Somaxon has the right to withhold any tax which according to the
              applicable tax treaty between the U.S. and Finland shall be
              withheld from royalties and Somaxon shall pay the amounts so
              withheld to the proper tax authorities as required by applicable
              laws. In case of such withholding, Somaxon shall inform BTT in due
              course, maintain official receipts of such payments and, upon
              BTT's reasonable request, execute any customary documents which
              are necessary for BTT to receive proper reimbursement or reduction
              under the applicable regulations. At BTT's written request,
              Somaxon shall make the milestone payments and/or royalty payments
              based on sales of products, which BTT is obliged to make under the
              Ivax Agreement and Minnesota Agreement directly to such parties
              and deduct such payments from the royalty or other reimbursements
              payable to BTT.

              Interest on arrears on any late payments shall, after notice to
              Somaxon from BTT, be assessed at the rate of [***] per month.

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5.     SUPPLY OF MATERIAL

              BTT shall supply one hundred percent (100%) of Somaxon's
              requirements of the Product for clinical trial purposes. The price
              for such supply of Products shall equal the direct costs from
              third parties charged to BTT, including, but not limited to, the
              costs charged by Patheon Inc. ("Patheon") and the manufacturer of
              the active product ingredient, and shipping charges, without
              mark-up in all cases.

              BTT shall cooperate in good faith with Somaxon in its efforts to
              negotiate and establish a direct supply agreement with Patheon and
              any alternative supplier requested by Somaxon, in each case, for
              the supply of commercial quantities of Products.

6.     WARRANTIES

              Somaxon has reviewed the Minnesota Agreement and the Ivax
              Agreement attached hereto as Appendices 2-A and 2-B, respectively,
              in the course of its due diligence investigation. The below
              representations and warranties are qualified by the substance of
              such agreements and Somaxon shall not be entitled to claim
              indemnification for any breach of the representations and
              warranties set forth below if a fact or event causing the breach
              is set forth in text of such agreements.

6.1    GENERAL

              Other than for a breach of the representations, warranties and
              covenants of BTT herein and for the indemnification obligations
              set forth in Section 14 below, BTT shall not be liable to Somaxon
              in any respect or in any manner whatsoever for any damages or
              losses which may be incurred by Somaxon in using the Patents or
              the Know-How licensed to Somaxon hereunder, or in failing to
              obtain results anticipated by Somaxon.

              Except as expressly set forth below, BTT does not make, and hereby
              excludes, any and all express or implied representations and
              warranties against patent infringement with respect to the
              Patents, the Know-How or Products manufactured, marketed and sold
              under this License Agreement.

6.2    CORPORATE EXISTENCE AND POWER

              Each Party represents and warrants to the other that it (i) is a
              corporation duly organized, validly existing and in good standing
              under the laws of the jurisdiction in which it is incorporated,
              and (ii) has full corporate power and authority and the legal
              right to own and operate its property and assets and to carry on
              its business as it is now being conducted and is contemplated in
              this License Agreement, including, without limitation, the right
              to grant the licenses granted hereunder.

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6.3    AUTHORITY

                     Each Party represents and warrants to the other that it (i)
                     has the corporate power and authority and the legal right
                     to enter into this License Agreement and perform its
                     obligations hereunder; (ii) has taken all necessary
                     corporate action on its part required to authorize the
                     execution and delivery of this License Agreement and the
                     performance of its obligations hereunder; (iii) this
                     License Agreement has been duly executed and delivered on
                     behalf of such Party, and constitutes a legal, valid and
                     binding obligation of such Party and is enforceable against
                     it in accordance with its terms; and (iv) all necessary
                     consents, approvals and authorizations of all governmental
                     authorities and other persons or entities required to be
                     obtained by such party in connection with entry into this
                     License Agreement have been obtained.

6.4    GRANT OF RIGHTS

                     Each Party represents and warrants to the other that it has
                     not, and will not during the term of this License
                     Agreement, grant any right to any third party that would
                     conflict with the rights granted to the other Party
                     hereunder, and that it has (or will have at the time
                     performance is due) maintained and will maintain and keep
                     in full force and effect all agreements (including license
                     agreements) and filings (including patent filings)
                     necessary to perform its obligations hereunder, including,
                     in the case of BTT, the applicable license agreements with
                     the University of Minnesota and Ivax.

6.5    INTELLECTUAL PROPERTY

                     BTT represents and warrants to Somaxon that:

                     (a)    it is not aware of any pending or threatened
                            litigation (and has not received any communication
                            relating thereto) which alleges that the practice of
                            a method claimed in any of the Patents or the use of
                            any Trade Mark infringes or misappropriates the
                            intellectual property rights of any third party;

                     (b)    to the best of BTT's knowledge, there is no
                            unauthorized use, infringement or misappropriation
                            of any of the IPR or Trade Marks by any third party;

                     (c)    no present or former collaborator, partner, employee
                            or consultant of BTT, or inventor under any of the
                            Patents, owns or has any proprietary, financial or
                            other interest, direct or indirect, in the IPR
                            (other than the monetary rights of Ivax, the
                            University of Minnesota and Alko Corporation) or any
                            Trade Mark, and no third party's confidential
                            information is included in the IPR; and

                     (d)    to the best of BTT's knowledge, neither the practice
                            of the IPR, the use of any Trade Mark, nor the
                            development, manufacture or commercialization of the
                            Product, infringes any intellectual prop-

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                            erty rights of any third party; and BTT has not
                            received notice or communication alleging that the
                            practice of the IPR infringes or may infringe the
                            rights of any third party, nor is BTT aware of any
                            reasonable basis for any such allegation.

7.     DEVELOPMENT of the products AND REGULATORY MATTERS

7.1    DEVELOPMENT PLAN

                     The development of the Products will be undertaken at the
                     cost, expense and risk of Somaxon substantially in
                     accordance with the agreed development plan. However, BTT
                     shall cooperate with Somaxon in connection with the
                     research and development efforts for the Products. The
                     Parties' duties are listed in more detail in Appendix 7.1
                     hereto.

7.2    STEERING COMMITTEE

                     The Parties shall nominate two (2) persons to a steering
                     committee ("Steering Committee") which shall oversee and
                     co-ordinate the Product development work under Section 7.1
                     and, after regulatory approval, the sales and marketing
                     efforts described in Section 8.1 below . The Steering
                     Committee shall hold meetings when appropriate on one
                     Party's written request to the other Party and generally
                     once each calendar quarter. Unless the members of the
                     Steering Committee otherwise consent, a meeting of the
                     Steering Committee shall not be held sooner than within two
                     (2) weeks from the Party's notice to the other Party. The
                     Steering Committee may, in its discretion take action by
                     physical meeting, video-conference, tele-conference or
                     written consent. All decisions by the Steering Committee
                     shall be made by unanimous vote or written consent signed
                     by each member of the Steering Committee, with BTT and
                     Somaxon each having, collectively, one vote in all
                     decisions.

7.3    DILIGENCE

                     Subject to Somaxon's right to terminate this License
                     Agreement, Somaxon shall use commercially reasonable
                     efforts to develop a Product and to commercialise such
                     Product in the Territory, consistent with accepted business
                     practices and legal requirements, and not less than the
                     efforts typically used in the pharmaceutical industry to
                     develop products at comparable stages of development with
                     similar market potential. Notwithstanding the foregoing,
                     however, should it, based on objective data, be
                     commercially unreasonable to commercialise the Product in
                     countries within the Territory other than the United
                     States, the Steering Committee shall discuss the issue in
                     good faith and it shall release Somaxon from the foregoing
                     requirement to commercialise the Product in such other
                     countries outside the United States.

7.4    CLINICAL TRIALS AND REGULATORY MATTERS

                     With respect to the Product in Territory, Somaxon will be
                     responsible for conducting all future clinical trials and
                     for all regulatory filings and interactions

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                     with necessary authorities in accordance with all
                     applicable laws and regulatory requirements in the
                     Territory and payment of filing fees and all other
                     associated costs for regulatory prosecution in any country
                     of the Territory, including without limitation the Phase 3
                     clinical program, application for a marketing authorisation
                     and all pharmacovigilance.

                     BTT shall be responsible for the pre-clinical studies
                     required by the FDA, and the payment of all other
                     associated costs for such pre-clinical studies; except
                     that, in the event (i) the FDA requires a patient
                     population in the pivotal Phase 3 studies for the Product
                     which exceeds 1,000 patients or (ii) the FDA requires the
                     use of an end point in addition to, or other than, the
                     Yale-Brown Obsessive Compulsive Scale modified for
                     pathological gambling in connection with the pivotal phase
                     3 studies for the Product, BioTie shall bear [***] of all
                     incremental costs and expenses associated with such
                     additional non-budgeted clinical and development activities
                     up to a maximum of U.S. [***], which incremental costs and
                     expenses [***] shall be deducted from and offset against,
                     on a pro rata basis, any milestone payments otherwise due
                     to BioTie from Somaxon under Section 4.1 above and the
                     other [***] from the future royalties for the Products due
                     to BioTie from Somaxon under Section 4.2 above. In
                     connection with the deduction of any such incremental costs
                     and expenses, Somaxon shall submit to BioTie a calculation
                     and written summary of the costs and expenses in reasonable
                     detail for BioTie to verify the accuracy of the milestone
                     and royalty deduction.

                     BTT shall actively consult with Somaxon on the design and
                     implementation of any such clinical trials as may be
                     reasonably requested by Somaxon. Any related NDA and other
                     foreign regulatory filings in the Territory shall be
                     submitted solely in the name of Somaxon.

                     Somaxon is aware that BTT has entered or shall enter into
                     agreement negotiations with third party(ies), under which
                     BTT entitles such third party/parties to conduct
                     development on and/or to commercialise the IPR outside of
                     the Territory. Somaxon agrees that it shall make available
                     and entitle such third party and/or parties to use the
                     pre-clinical and clinical studies conducted by Somaxon on
                     reasonable commercial terms to enable efficient development
                     and rapid market launch of the Products outside the
                     Territory; provided that Somaxon shall have no such
                     obligation with respect to clinical data or other
                     information or know-how related to (i) any Improvement of
                     Somaxon unless the Parties agree to a license for the
                     Improvement under the right of first refusal and
                     negotiation provisions of Section 10.1 or (ii) any Somaxon
                     Analogue/Derivative. The terms of such license agreement
                     with the third party and Somaxon shall include customary
                     provisions of agreements of such type and be on terms
                     reasonable for both parties.

7.5    PHARMACOVIGILANCE

                     The parties' respective obligations concerning
                     pharmacovigilance, adverse event reporting and related
                     matters are set forth in the "Joint Operating Pro-

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                     cedure on ADR reporting for Nalmefene" in the form attached
                     hereto as Appendix 7.5.

8.     SALES AND MARKETING EXPENDITURE PLAN; MINIMUM ROYALTIES

8.1    SALES AND MARKETING EXPENDITURE PLAN

                     Somaxon shall draft a Sales and Marketing Expenditure Plan
                     to be submitted to BTT for its review and comment not later
                     than three (3) months prior to the planned commercial
                     launch of the Product in the Territory. Thereafter, Somaxon
                     shall prepare annual updates to the Sales and Marketing
                     Expenditure Plan for each calendar year before September 15
                     of the prior year. Each draft of the Sales and Marketing
                     Expenditure Plans shall be reviewed by the Steering
                     Committee, and Somaxon shall in good faith take into
                     account any comments from the Steering Committee in
                     connection with the finalization of each Sales and
                     Marketing Expenditure Plan. Following the receipt of
                     comments, if any, from the Steering Committee, Somaxon
                     shall finalize the Sales and Marketing Expenditure Plan
                     with the terms and expenditures, including (i) a budget for
                     aggregate annual sales and marketing expenditures (the
                     "BUDGET") and (ii) the targeted number of sales calls to
                     physicians ("TARGET SALES CALLS"), determined appropriate
                     by Somaxon in its sole discretion. Somaxon shall submit
                     each such final Sales and Marketing Expenditure Plan to the
                     Committee for its official records retention (which, in the
                     case of annual updates, shall be submitted not later than
                     November 15 of the prior year); provided, however that
                     Somaxon may amend and revise any such final Sales and
                     Marketing Expenditure Plan to reflect any material change
                     in condition not reasonably within the control of Somaxon
                     (including, but not limited to, Product safety issues,
                     recalls, changes in regulatory requirements, interruption
                     of supply and backorders).

                     With respect to each final or amended Sales and Marketing
                     Plan submitted hereunder, Somaxon, itself or through its
                     Affiliates, Sublicensees or contract sales force, if
                     applicable, shall spend not less than [***] and conduct not
                     less than [***]. Upon written request from BTT, Somaxon
                     shall affirm to BTT its compliance with the foregoing
                     minimum marketing expenditures and sales calls. If,
                     however, Somaxon fails to spend the minimum Budget amount
                     or conduct such minimum Target Sales Calls, and Somaxon
                     further fails to cure such deficiencies within the first
                     six (6) months of the following period, BTT may elect to
                     convert the license granted under Section 2 of this License
                     Agreement to non-exclusive in the Territory by providing
                     written notice to Somaxon within thirty (30) days' of BTT's
                     discovery of Somaxon's non-compliance with this Section 8.

8.2    MINIMUM ROYALTIES

                     In order to maintain the exclusivity of the license granted
                     under Section 2 above, Somaxon may, at its option, make the
                     following minimum royalty payments to BTT with respect to
                     each year specified below (the "MINIMUM ROYALTY"):

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                  (a)   Year 2009: [***];

                  (b)   Year 2010: [***];

                  (c)   Year 2011: [***];

                  (d)   Year 2012: [***]; and

                  (e)   Year 2013: [***].

                  Unless an extension is required to be granted pursuant to the
                  following paragraph, there shall be [***].

                  Notwithstanding the foregoing, in the event of an unexpected
                  or extraordinary delay in the clinical development program as
                  a result of the FDA's review of the NDA or related clinical
                  activities, Somaxon may request an extension to the start date
                  of its obligation to pay the Minimum Royalty and BTT may not
                  unreasonably withhold its consent to such extension. If such
                  an extension is required, Somaxon's obligation to pay Minimum
                  Royalties shall begin instead upon the conclusion of such
                  unexpected or extraordinary delay and the annual schedule of
                  Minimum Royalties set forth above shall be correspondingly
                  delayed.

                  Any royalty payments made by Somaxon in accordance with
                  Sections 4.2 and 4.3 above shall be credited toward the
                  Minimum Royalty for the applicable year and, in the event the
                  royalty payment otherwise required with respect to such period
                  is less than Minimum Royalty for the applicable year, Somaxon
                  may, at its option, pay the remaining amount to BTT within
                  sixty (60) days after the conclusion of the applicable year
                  (the "MINIMUM ROYALTY DEADLINE").

                  If Somaxon fails to pay to BTT the Minimum Royalty for any
                  year specified above, BTT may elect to convert the license
                  granted under Section 2 of this License Agreement to
                  non-exclusive in the Territory by providing written notice to
                  Somaxon within sixty (60) days after the Minimum Royalty
                  Deadline subject to Somaxon's right to cure by paying the
                  Minimum Royalty to BTT within five (5) business days of BTT's
                  notice.

9.    PATENT MAINTENANCE

                  Subject to the licensed rights granted to Somaxon under this
                  License Agreement, BTT retains ownership of all IPR.

                  Subject to the rights and obligations set forth in the
                  Minnesota Agreement, each Party shall maintain, at its own
                  expense, any patents and patent applications held in its name
                  and shall have the primary right and obligation to control the
                  prosecution, maintenance and defend against infringement with
                  respect to such patents and patent applications. BTT shall
                  provide written notice to Somaxon from time to time as BTT
                  and/or the University of Minnesota makes

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                  any required maintenance payments with respect to the Patents
                  and as any new material information relating to the
                  preparation, filing, prosecution or maintenance of the IPR
                  comes to its attention, including, but not limited to, similar
                  notifications received by BTT from the University of Minnesota
                  or Ivax.

                  In the event the responsible party fails to make any required
                  payments or take any action required for the proper
                  preparation, filing, prosecution or maintenance of the
                  applicable patents and patent applications, the other Party
                  shall have the right to make any such required payments or
                  take any such required action. The Parties shall provide
                  reasonable assistance to one another in any such activities.

9.1   IPR DEFENCE

                  In the event of a material infringement or misappropriation in
                  the Territory by a third party of any IPR, Somaxon shall have
                  the sole and exclusive right (but not the obligation) to
                  pursue any and all injunctive, compensatory and other remedies
                  and relief against such third party unless the license under
                  this License Agreement has become non-exclusive. In the event
                  that Somaxon chooses to pursue its rights hereunder, BTT shall
                  use all reasonable efforts to assist and co-operate with
                  Somaxon, and Somaxon shall reimburse BTT for its out-of-pocket
                  expenses resulting from such assistance. Somaxon shall bear
                  the costs and expenses relating to such pursuit. In the event
                  Somaxon recovers any damages or other amounts, after deducting
                  for BTT's out-of-pocket expenses and Somaxon's costs and
                  expenses relating to such pursuit, Somaxon shall pay to BTT an
                  amount equal to applicable royalty under Section 4.2 applied
                  to the remaining recovery.

                  In the event that Somaxon takes no action within six (6)
                  months of notice of any such infringement or misappropriation,
                  BTT shall have the right, but not the obligation, to take
                  action in its own name and its own expense to secure the
                  cessation of any such infringement or misappropriation or to
                  institute, prosecute and control legal proceedings to prevent
                  or restrain such infringement or misappropriation concerning
                  the IPR in the Territory. If requested by BTT, Somaxon agrees
                  to join any action or legal proceeding to enforce the IPR
                  against any third party. If BTT takes action or prosecutes
                  legal proceedings relating to the infringement or
                  misappropriation of the IPR in the Territory, after payment of
                  Somaxon's out-of-pocket costs, all other damages and costs
                  recovered in any action or proceedings or by way of settlement
                  shall belong to BTT.

9.2   PATENT INFRINGEMENTS

                  Upon knowledge of the commencement of any suit against BTT or
                  Somaxon which is based in whole or in part on a claim that the
                  IPR or any Products marketed, sold or distributed by Somaxon
                  under this License Agreement constitute an infringement of any
                  third party's patent, BTT or Somaxon, as the case may be,
                  shall promptly notify the other in writing.

<PAGE>

                  With respect to any such suit outside the Territory, BTT or
                  its licensee in territories outside the Territory shall, at
                  its cost and with counsel reasonably acceptable to Somaxon,
                  assume and conduct the defence of any suit or claims brought
                  or asserted, or demand made, against BTT or Somaxon insofar as
                  it is based on and would affect the IPR in the Territory.
                  Somaxon shall be entitled to participate in any such
                  proceeding with separate counsel at Somaxon's own expense.
                  With respect to any such suit within the Territory, Somaxon
                  shall, at its cost and with counsel reasonable acceptable to
                  BTT, assume and conduct the defence of any suit or claims
                  brought or asserted, or demand made, against BTT or Somaxon
                  insofar as it is based on the IPR.

10.   IMPROVEMENTS AND JOINT INVENTIONS

10.1  IMPROVEMENTS

                  During the life of the proprietary nature of the IPR, each
                  Party shall disclose any Improvements (but excluding any
                  Somaxon Analogue/Derivative) to the other Party, whether
                  patentable or not, without delay in accordance with this
                  Section 10.1.

                  Any Improvement of BTT shall be deemed to be automatically
                  included in the IPR and the license set forth in Section 2
                  above with respect to the Territory. BTT shall take measures
                  within its discretion to seek patent or to otherwise protect
                  such Improvement(s) and should BTT not be willing to protect
                  the Improvements within the Territory it shall forthwith
                  inform Somaxon thereof and Somaxon shall then have the right
                  to seek patents or to otherwise protect the improvement in its
                  own name.

                  Somaxon hereby agrees to grant BTT an exclusive right of first
                  refusal and negotiation (with the right to sublicense) on
                  reasonable commercial terms to utilize outside the Territory
                  any Improvement of Somaxon other than a Somaxon
                  Analog/Derivative (each such Improvement, a "NEW PRODUCT") as
                  follows:

                        If during the term of this License Agreement, Somaxon
                        makes or acquires rights to a New Product, Somaxon shall
                        notify BTT of such New Product. Somaxon shall, during
                        the following ninety (90) days, if requested by BTT,
                        make appropriate representatives available to meet with
                        BTT's representatives to provide a fuller description of
                        the data and information then available to Somaxon with
                        respect to such New Product, and to answer the Receiving
                        Party's questions in that regard. In addition, Somaxon
                        shall engage in good faith negotiations with BTT over a
                        period of at least one hundred twenty (120) days
                        following the end of such ninety (90)-day evaluation
                        period, in an attempt to reach agreement with BTT with
                        respect to the exclusive development and
                        commercialization by BTT of such New Product outside the
                        Territory. If no such agreement is reached during that
                        period, thereafter, Somaxon shall give BTT at least
                        sixty (60) days' written notice prior to signing any
                        agreement with any third party

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                        (either as a definitive agreement or a mutually signed
                        term sheet) with respect to such New Product, and during
                        such sixty (60) day period, BTT may accept and agree to
                        such agreement on such terms offered to the third party
                        in lieu of such third party.

                  The right of first refusal and first negotiation set forth in
                  this Section 10.1 shall include rights for any joint invention
                  under Section 10.2 below but shall not apply to any Somaxon
                  Analogues/Derivatives. Somaxon shall retain all worldwide
                  right, title and interest to any Somaxon Analogue/Derivative
                  and have no obligation to disclose the same to BTT. However,
                  Somaxon acknowledges that, in order to commercialize any
                  Somaxon Analogue/Derivative that would infringe a valid claim
                  under the Patents in any territory outside the Territory,
                  Somaxon would be required to obtain a license under the
                  applicable Patents.

10.2  JOINT INVENTIONS

                  For all inventions, if any, made jointly by the Parties or in
                  which IPR and Somaxon's proprietary rights and/or technologies
                  are combined and which are patentable only on the basis of
                  such combination, the Parties shall apply for the patent
                  protection thereto upon the written request of either Party.
                  Patent protection for such invention(s) shall be applied for
                  in the name of the Parties as co-assignees and co-owners of
                  such invention(s). Somaxon shall take lead responsibility for
                  patent protection on such joint inventions in the Territory
                  and BTT outside the Territory.

                  If either Party does not wish to join in such patent
                  application (the wish to be expressed in writing), then the
                  other Party may seek, obtain and maintain such patent(s) in
                  its own name and at its sole expense and shall have sole and
                  exclusive rights to control and use the inventions covered by
                  such patents(s) without any compensation to the other Party.

11.   TERMINATION

                  Somaxon will have the right to terminate the License upon not
                  less than thirty (30) days' written notice to BTT if continued
                  product development poses an unacceptable safety risk to
                  patients or if the product fails to achieve a satisfactory
                  level of efficacy. For the period before the applicable
                  marketing authorisation (i.e., NDA) has been granted,
                  Somaxon's right to terminate based on the aforesaid must be
                  evidenced by objective data. For the period after the
                  applicable marketing authorisation (i.e., NDA) has been
                  granted, Somaxon's right to terminate based on the aforesaid
                  must be evidenced by objective FDA concerns concerning Product
                  safety or efficacy.

                  BTT may terminate the License Agreement upon not less than
                  thirty (30) days' written notice to Somaxon if Somaxon, either
                  directly or through its Affiliate, contractor or agent,
                  challenges the validity of any Patents or Patent Rights or
                  contests the secrecy of the know how licensed to Somaxon under
                  the License

<PAGE>

                  Agreement and does not cease such challenge within thirty (30)
                  days of the receipt of written notice from BTT.

                  Either Party shall have the right, without prejudice to any
                  other rights or remedies available to it, to terminate the
                  License Agreement by a written notice to the other Party in
                  the event that:

                  (a)   The other Party becomes insolvent, is adjudged bankrupt,
                        applies for settlement with its creditors, makes an
                        assignment for the benefit of its creditors, voluntarily
                        files for bankruptcy or has a receiver or a trustee (or
                        equivalent) in bankruptcy appointed by reason of its
                        insolvency, or in the event an involuntarily bankruptcy
                        action is commenced against the other Party and it is
                        not dismissed within (90) days, or if the other Party
                        becomes the subject of liquidation or dissolution
                        proceedings or otherwise discontinues its business; or

                  (b)   The other Party commits a material breach of the License
                        Agreement and within sixty (60) days after receipt of
                        written notice thereof fails to either cure the breach,
                        or with respect to any breach that has not been cured by
                        such time, if the breaching Party has proposed a course
                        of action to cure the breach and is acting in good faith
                        to cure same but has not cured the breach by the
                        sixtieth (60th) day, such period shall be extended to
                        such period of time as is reasonably necessary to permit
                        the breach to be cured.

                  The provisions of the following Sections shall survive the
                  termination or expiration of this License Agreement: 1, 11,
                  13, 14, 15, 16 and 17. In addition, except in the case of the
                  termination of this License Agreement for Somaxon's breach in
                  accordance with Section 11(b) above, the fully paid-up license
                  to Know How set forth in Section 2 shall survive the
                  termination or expiration of this License Agreement.

                  In the event of BTT's termination of this License Agreement
                  for Somaxon's breach under subsection (b) above and Somaxon's
                  determination not to continue to promote and market the
                  Product, Somaxon shall promptly (and in no event later than
                  thirty (30) days from the termination) do all acts and execute
                  all documents reasonably requested by BTT in order to provide
                  for the transfer to BTT of the Trade Marks, any product
                  registration and/or any preclinical or clinical data with
                  respect to the Product in the Field (e.g., NDA). BTT shall
                  bear all costs and expenses of the Parties related to the
                  reversion of the Trade Marks, any product registration and/or
                  any preclinical or clinical data.

                  Notwithstanding the termination, Somaxon and its Sublicensees
                  will be entitled to continue selling any Product produced
                  prior to such termination but subject to the continuing
                  obligation to pay royalties on such sales.

<PAGE>

12.   COMPETITION

                  For the period commencing at the signing of this License
                  Agreement through the [***] (the "[***] YEAR DATE"), or such
                  earlier period of time as the Parties may consent to in
                  writing, except for the Product, Somaxon shall not directly or
                  indirectly, market, distribute, sell or have sold any
                  Competitive Product. The Parties acknowledge that any Product
                  or Improvement for which Somaxon pays royalties on Net Sales
                  hereunder shall not be deemed to be a prohibited hereby.

                  Notwithstanding the foregoing, the Parties have explicitly
                  agreed that Somaxon may introduce a Competitive Product in the
                  Territory after the [***] provided that Somaxon pays for each
                  year after the introduction of the Competitive Product and
                  until the [***] Year Date not less than the Minimum Royalty
                  set forth in the table in Section 8.2 for the Year 2013,
                  subject to the other terms of such section.

                  Similarly, until the [***] Year Date, or such earlier period
                  of time as the Parties may consent to in writing, BTT shall
                  not directly or indirectly, market, distribute, sell or have
                  sold in the Territory any Competitive Product, unless the
                  license granted in this License Agreement has been converted
                  into a non-exclusive license in connection with an uncured
                  breach by Somaxon.

                  The non-competition restriction of this Section 12 shall not
                  apply, on a country-by-country and Product-by-Product basis,
                  in the event that for scientific or technical reasons it is
                  not possible using commercially reasonable efforts to develop
                  a Product or for scientific reasons Somaxon cannot obtain a
                  regulatory approval for the Product. Furthermore, upon the
                  termination of this License Agreement whereby the Trade Marks
                  and any applicable product registration reverts to BTT under
                  Section 11 above, this Section 12 shall terminate.

                  Any failure by either Party to comply with the provisions of
                  this Section 12 shall be a material breach of this License
                  Agreement and entitle the other Party to terminate this
                  License Agreement subject to the relevant competition
                  (anti-trust) regulations and the cure periods specified in
                  Section 11. Should such termination not be allowed with
                  respect to Somaxon under the applicable competition
                  regulations, the license granted to Somaxon in this License
                  Agreement shall become non-exclusive. The termination and/or
                  the change into non-exclusive shall be without prejudice to
                  any other remedy to which BTT may be entitled for such breach.

13.   RECORD KEEPING AND AUDITING

                  Somaxon shall keep or cause to be kept in sufficient detail
                  accurate books and records relating to the Net Sales of the
                  Product and improvements thereto as well as relating to any
                  sublicense granted in order to enable the amount of payable
                  royalties to be determined and verified.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                  Upon the written request of BTT an independent certified
                  public accountant may be retained to review such books and
                  records to verify the accuracy of the payments made or payable
                  hereunder not more than four (4) times per calendar year.
                  Somaxon shall provide such information and explanations, as
                  the accountant performing the audit shall require to verify
                  the accuracy of the payments made or payable hereunder and to
                  satisfy BTT that the terms and conditions of the License
                  Agreement are being complied with. If the verification
                  discloses an underpayment to BTT of more than five percent
                  (5%) of the amount due, Somaxon shall immediately and without
                  demand pay to BTT the difference between an amount already
                  paid and the correct amount shown to be due and payable as a
                  result of audit and promptly on demand reimburse to BTT the
                  fees and costs of the accountant, and the reasonable costs
                  incurred by BTT in respect of the audit. Any possible
                  overpayment shall be deducted from the royalties owed by
                  Somaxon to BTT.

                  Somaxon agrees that any complimentary physician samples of
                  Product distributed by it hereunder shall be labeled "not for
                  resale" or similarly marked as sample products consistent with
                  prevailing pharmaceutical industry practices.

14.   LIABILITY AND INDEMNIFICATION

                  Subject to BTT's indemnification obligations below, Somaxon
                  shall have the full responsibility for pre-clinical and
                  clinical trials conducted by it as well as for the Products
                  marketed, distributed, manufactured, have manufactured or sold
                  by it under the license granted by BTT under this License
                  Agreement and shall bear any and all liability resulting
                  thereof.

                  Somaxon shall indemnify, defend and hold BTT and its
                  directors, officers, agents and other Affiliates (each, a "BTT
                  INDEMNITEE") harmless from any liabilities, damages, losses,
                  costs, claims or expenditures ("DAMAGES") incurred by a BTT
                  Indemnitee as a result of the pre-clinical or clinical trials
                  conducted by or on behalf of Somaxon after the Effective Date
                  or of the Products manufactured, have manufactured,
                  distributed, marketed or sold by Somaxon, including, but not
                  limited to, damage to or loss of property or injury to persons
                  caused by the pre-clinical or clinical trials of the Products;
                  except for Damages which arise from (i) a failure by a BTT
                  Indemnitee to adhere to the terms of this License Agreement;
                  (ii) any negligence, breach of warranty (express or implied)
                  or recklessness or willful misconduct on the part of a BTT
                  Indemnitee; (iii) a breach of any applicable federal, state or
                  local law by a BTT Indemnitee or (iv) those Damages for which
                  BTT has an obligation to indemnify Somaxon pursuant to the
                  indemnification set forth below, as to which Damages each
                  Party shall indemnify the other to the extent of its
                  respective liability for the Damages.

                  BTT shall indemnify, defend and hold Somaxon and its
                  directors, officers, agents and other Affiliates (each, a
                  "SOMAXON INDEMNITEE") harmless from any Damages incurred by a
                  Somaxon Indemnitee as a result of the pre-clinical or clinical
                  trials conducted by or on behalf of BTT before the Effective
                  Date or the breach of any representations, warranties
                  covenants or other agreements

<PAGE>

                  of BTT set forth in this License Agreement; except for Damages
                  which arise from (i) a failure by a Somaxon Indemnitee to
                  adhere to the terms of this License Agreement; (ii) any
                  negligence, breach of warranty (express or implied) or
                  recklessness or willful misconduct on the part of a Somaxon
                  Indemnitee; (iii) a breach of any applicable federal, state or
                  local law by a Somaxon Indemnitee or (iv) those Damages for
                  which Somaxon has an obligation to indemnify BTT pursuant to
                  the indemnification set forth above, as to which Damages each
                  Party shall indemnify the other to the extent of its
                  respective liability for the Damages.

                  Somaxon shall acquire and maintain in force as long as
                  Products using the IPR are being sold with a reputable
                  insurance company a policy of general liability insurance,
                  including the clinical development of the Product and, at such
                  time as commercial sales of the Product commence, the sale of
                  the Product. The insurance shall be in amounts reasonable when
                  compared with insurance obtained by companies engaged in
                  similar businesses. Somaxon shall provide evidence of the
                  insurance to BTT on request.

                  Likewise, BTT shall acquire and maintain in force for the term
                  of this License Agreement and for a period of five (5) years
                  thereafter with a reputable insurance company a policy of
                  general liability insurance sufficient to satisfy the
                  indemnification obligations of BTT hereunder. The insurance
                  shall be in amounts reasonable when compared with insurance
                  obtained by companies engaged in similar businesses. BTT shall
                  provide evidence of the insurance to Somaxon on request.

<PAGE>

15.   CONFIDENTIALITY

                  The Parties agree that during the term of this License
                  Agreement and for a period of seven (7) years after the
                  termination or expiration of this License Agreement, neither
                  Party shall use or disclose to any third party, without the
                  prior written consent of the other Party any Confidential
                  Information regarding that other Party. The non-disclosure
                  extends also to the research and development work performed by
                  the Parties under this License Agreement and the results of
                  such work. Nothing herein shall, however, limit (i) the
                  Parties' right to disclose information to their Affiliates
                  subject to their Affiliates' agreement to be bound the terms
                  of this Section 15, or (ii) either Party seeking regulatory
                  clearance from the FDA (or any other authorities). In
                  addition, from and after the expiration of all licenses
                  contained in this License Agreement, nothing herein shall
                  limit BTT from commercializing the IPR on a stand alone basis
                  or in co-operation with third parties after the term of this
                  License Agreement by using the IPR. In addition, nothing
                  herein shall prohibit the use or disclosure of Know How or
                  Improvements where this is permitted by the other terms of
                  this License Agreement.

                  It is, however, acknowledged and understood by the Parties
                  that

                  (a)   the Parties may have a duty, as publicly listed
                        companies, to disclose the key contents of this License
                        Agreement and the status of the co-operation. Nothing in
                        this License Agreement may limit the Parties' right to
                        follow and act on the basis of the applicable statutory
                        disclosure requirements; provided, however, that if a
                        protective order or similar confidential treatment is
                        available with respect to such proposed disclosure under
                        applicable rules or regulations, the party proposing to
                        make the disclosure, shall promptly give notice to the
                        other Party in order to provide the other Party with the
                        opportunity to seek such protective order or similar
                        confidential treatment to limit the scope of the
                        disclosure; and

                  (b)   the obligations in this Section 15 shall not apply to
                        information that:

                        (i)   is known by the receiving Party, as evidenced by
                              its records, at the time of receipt and not
                              through a prior disclosure by the disclosing
                              Party;

                        (ii)  is at the time of disclosure or thereafter becomes
                              published or otherwise part of the public domain
                              through no breach of this License Agreement by the
                              receiving Party;

                        (iii) is subsequently disclosed to the receiving Party
                              as evidenced by its records, by a third party
                              having the right to make such a disclosure;

<PAGE>

                        (iv)  is developed by the receiving Party as evidenced
                              by its records independently of information
                              received by it from the disclosing Party; and

                        (v)   is required by law, regulation, rule, act or order
                              of any governmental authority or agency to be
                              disclosed by a Party; provided, however, that if a
                              protective order or similar confidential treatment
                              is available with respect to such proposed
                              disclosure under applicable rules or regulations,
                              the party proposing to make the disclosure, shall
                              promptly give notice to the other Party in order
                              to provide the other Party with the opportunity to
                              seek such protective order or similar confidential
                              treatment to limit the scope of the disclosure.

                  The content of the initial press release to be issued by the
                  Parties relating to this License Agreement and the transaction
                  contemplated hereunder is attached hereto as Appendix 15. The
                  form and content of any subsequent public announcement to be
                  made by either Party regarding this License Agreement, or the
                  subject matter contained herein, shall be delivered to the
                  other Party at least two (2) business days prior to
                  publication and shall be subject to the prior written consent
                  of the other Party (which consent may not be unreasonably
                  withheld or delayed), except as may be required by applicable
                  law (including disclosure requirements for publicly listed
                  companies) in which event each Party shall use commercially
                  reasonable efforts to give the other Party reasonable advance
                  notice and reasonable opportunity to review any such
                  disclosure.

16.   FORCE MAJEURE

                  In the event of force majeure, i.e., in the event that further
                  performance of this License Agreement or any part hereof by
                  either Party shall be rendered impossible by or as a
                  consequence of any Acts of God, labour disputes, delays in
                  commercial carriers, strikes, boycotts, war, terrorism, riot
                  or as a result of any law, regulation, order, rule, direction,
                  priority, seizure, allocation, requisition, or any further
                  official action by any department, bureau, board,
                  administration, or other instrumentality or agency, or any
                  other cause beyond the reasonable control of such Party (a
                  "FORCE MAJEURE EVENT"), such Party shall not be considered in
                  default hereunder by reason of any failure to perform
                  occasioned thereby.

                  In the event that failure or delay arises out of or results
                  from any such Force Majeure Event, both Parties shall
                  co-operate in an effort to agree upon the establishment of
                  such alternative arrangements not subject to such failure or
                  delay as will confer upon them benefits comparable in
                  character and substantially equivalent in amount to those
                  intended to be conferred by this License Agreement, or terms
                  and conditions not materially more burdensome to either Party
                  than those herein provided.

<PAGE>

                  However, in the event any individual Force Majeure Event
                  results in a failure or delay of a Party to perform its
                  obligations hereunder for a period in excess of ten (10)
                  months, the other Party may terminate this License Agreement
                  by giving written notice to the other party.

17.   NOTICES

                  All notices to be given by each Party to the other shall be
                  made in writing by (a) an internationally recognized courier
                  service guaranteeing next-day or two-day delivery, charges
                  prepaid; (b) facsimile (with original promptly sent in the
                  manner set forth in clause (a)); or (c) email (with original
                  promptly sent in the manner set forth in clause (a)), and
                  addressed respectively to the Parties.

                  Notices to BTT shall be sent to:

                  Name:       BioTie Therapies Corp.
                  Attn:       Vice President Kai Lahdesmaki
                  Address:    Tykistokatu 6, FIN-20520 Turku, Finland
                  Fax:        + 358 2 274 8910
                  Email:      kai.lahdesmaki@biotie.com

                  With a copy to:

                  Hannes Snellman Attorneys at Law Ltd., Attn: Mr. Mikko
                  Heinonen, Esq., P.O. Box 8, FIN-20521 Turku, Finland, Fax +358
                  2 2130 630, Email: mikko.heinonen@hannnessnellman.fi

                  Notices to Somaxon shall be sent to:

                  Name:       Somaxon Pharmaceuticals, Inc.
                  Attn:       Kenneth Cohen, President and CEO
                  Address:    12750 High Bluff Drive, Suite 310
                              San Diego, CA 92130 USA
                  Fax:        + 1 (858) 509-1589
                  Email:      kcohen@somaxon.com

                  With a copy to:

                  Latham & Watkins LLP, Attn: Scott N. Wolfe, Esq., 12636 High
                  Bluff Drive, Suite 300, San Diego, CA 92130, Fax +1 (858)
                  523-5450; Email: scott.wolfe@lw.com.

                  Each Party may by written notice to the other Party change the
                  address to which any such communication shall be sent, and,
                  after notice of such change has been received, any
                  communication shall be sent to such Party at such changed
                  address.

<PAGE>

18.   ASSIGNMENT

                  Neither Party is allowed to assign any rights, benefits or
                  obligations under this License Agreement to any third parties
                  without the other Party's prior written consent thereto;
                  provided, however, that a Party may assign its rights and
                  obligations to (i) any Affiliate or (ii) the successor in
                  interest to its business or a purchaser of all or
                  substantially all of its assets relating to the Product;
                  provided further that such assignee assumes in writing the
                  obligations and duties of the Party under this License
                  Agreement, including, but not limited to, the minimum Budget
                  and Target Sales Calls and the Minimum Royalty. In the event
                  of any failure of any assignee to comply with the minimum
                  Budget and Target Sales Calls, BTT shall have the right to
                  elect to convert the license granted under Section 2 of this
                  License Agreement to non-exclusive by providing the notice
                  specified in Section 8 above. For the avoidance of doubt it is
                  agreed and understood that this License Agreement shall remain
                  valid and binding towards any and all legal successors of the
                  Parties.

19.   RELATIONSHIP OF PARTIES

                  Nothing in this License 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.

20.   NO WAIVER

                  Failure by any Party at any time or times to require
                  performance of any provisions of this License Agreement shall
                  in no manner affect its right to enforce the same, and the
                  waiver by any Party of any breach of any provision of this
                  License Agreement shall not be construed to be a waiver by
                  such Party of any succeeding breach of such provision or
                  waiver by such Party of any breach of any other provision
                  hereof.

21.   COMPLIANCE WITH LAWS

                  Each Party shall comply with all laws, rules, regulations and
                  policies applicable to the conduct of its duties and
                  obligations under this License Agreement.

22.   SEVERABILITY OF CLAUSES

                  In case of one (1) or more of the provisions contained in this
                  License Agreement shall, for any reason, be held invalid,
                  illegal or unenforceable in any respect, such invalidity,
                  illegality or unenforceability shall not affect any other
                  provisions of this License Agreement, but this License
                  Agreement shall be construed by limiting such invalid, illegal
                  or unenforceable provision or, so that the invalid, illegal or
                  unenforceable provision is substituted by a valid, legal and
                  enforceable provision which as nearly as possible gives effect
                  to the Parties' intention expressed in this License Agreement.

<PAGE>

23.   AMENDMENTS

                  No amendment, modification or supplement of any provisions of
                  this License Agreement shall be valid or effective unless made
                  in writing and signed by a duly authorized representative of
                  each Party. By an instrument in writing, any Party may waive
                  compliance by the other Party with any term or provision of
                  this License Agreement that such other Party was or is
                  obligated to comply with or perform.

24.   ENTIRE AGREEMENT

                  This License Agreement constitutes the entire agreement
                  between the Parties regarding the subject matter hereof and
                  supersedes all written or oral prior agreements or
                  understandings.

                  The Appendices to this License Agreement are an integral part
                  hereof.

25.   GOVERNING LAW

                  This License Agreement is acknowledged to have been made and
                  shall be construed, governed, interpreted and applied in
                  accordance with the laws of England without giving effect to
                  its choice of law provisions.

26.   DISPUTE RESOLUTION

                  In the event of any controversy, claim or dispute arising out
                  of or relating to any provisions of this License Agreement,
                  the Parties shall try to settle those conflicts amicably
                  between themselves within thirty (30) days as of either
                  Party's written request for amicable settlement negotiations.
                  Should the Parties fail to settle, the matter in dispute shall
                  be finally and exclusively settled by binding arbitration in
                  accordance with Rules of the International Chamber of
                  Commerce. The arbitration shall be held in the English
                  language in London, England. In any such arbitration, Somaxon
                  shall select one (1) arbitrator and BTT shall select one (1)
                  arbitrator, who, in each case, shall be an experienced lawyer
                  or judge (or retired lawyer or judge) and fluent in English.
                  The arbitrators selected by the Parties shall select a third
                  arbitrator to act as Chairman. Judgment upon the award may be
                  entered in any Court having jurisdiction.

27.   SPECIFIC PERFORMANCE

                  The Parties agree that if any of the provisions of this
                  License Agreement were not performed in accordance with their
                  specific terms or were otherwise breached, irreparable damage
                  would occur, no adequate remedy at law would exist and damages
                  would be difficult to determine, and that the Parties shall be
                  entitled to specific performance of the terms hereof, in
                  addition to any other remedy at law or equity. Notwithstanding
                  Section 26 above, either Party may apply to any court having
                  jurisdiction over such dispute or controversy to seek interim
                  injunctive relief hereunder until the arbitration award is
                  rendered or the controversy is otherwise resolved. EACH OF THE
                  PARTIES HERETO

<PAGE>

                  HEREBY IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE ENGLISH
                  COURTS FOR SUCH PURPOSE.

28.   EXPENSES

                  Each Party shall bear its own direct and indirect expenses
                  incurred in connection with the negotiation and preparation of
                  this License Agreement and, except as specifically set forth
                  herein, the performance of the obligations contemplated hereby
                  and thereby. If any action at law or in equity is necessary to
                  enforce or interpret the terms of this License Agreement, the
                  prevailing Party shall be entitled to reasonable attorneys'
                  fees, costs and necessary disbursements in addition to any
                  other relief to which such Party may be entitled.

29.   APPENDICES AND HEADINGS

                  Each Appendix to which reference is made in this License
                  Agreement and which is attached hereto shall be incorporated
                  in this License Agreement by such reference.

                  The headings and sub-headings of this License Agreement are
                  for convenience only and do not in any way limit or affect the
                  meaning or interpretation of the provisions of this License
                  Agreement.

30.   COUNTERPARTS OF THIS LICENSE AGREEMENT

                  This License Agreement has been executed in two (2) identical
                  counterparts, one (1) for BTT and one (1) for Somaxon.

                  IN WITNESS WHEREOF, the Parties hereto have duly executed this
                  License Agreement in Helsinki, Finland as of the day and year
                  first above written.

                  BioTie Therapies Corp.          Somaxon Pharmaceuticals, Inc.

                  /s/ Jari Saarinen               /s/ Kenneth Cohen
                  ---------------------           -----------------------
                  Name: Jari Saarinen             Name: Kenneth Cohen
                  Title: President and Chief      Title: President and Chief
                  Executive Officer               Executive Officer<PAGE>
                                                                   Exhibit 10.18

                               LICENSE AGREEMENT
                               -----------------

      This License Agreement ("Agreement") is effective as of the Effective Date
(hereinafter defined), and is by and between Somaxon Pharmaceuticals, Inc., a
Delaware corporation having its principal place of business at 12750 High Bluff
Drive, Suite 310, San Diego, CA 92130 ("Somaxon"), Synchroneuron, LLC, a
Delaware limited liability company having its principal place of business at 69
Fifer Street, Lexington, MA 02420 ("Synchroneuron") and, solely for purposes of
Sections 2.1 and 2.4 below, Barry S. Fogel, M.D. ("Advisor").

                                    RECITALS

      WHEREAS, Synchroneuron is the owner of all right, title and interest in
certain Initial Patents and Initial Know-How (both as hereinafter defined), and
Synchroneuron and, to the extent applicable, Advisor, will be the owners of all
right, title and interest in certain Applicable Patent Rights and Applicable
Know-How (both as hereinafter defined); and

      WHEREAS, Synchroneuron and, to the extent applicable, Advisor, desire to
grant, and Somaxon desires to accept, an exclusive, worldwide, royalty-bearing
license to the Initial Patents, the Initial Know-How, the Applicable Patent
Rights and the Applicable Know-How to develop and commercialize the Licensed
Product(s) (hereinafter defined); and

      WHEREAS, Synchroneuron and Advisor desire to grant, and Somaxon desires to
accept, a right of first offer/right of first refusal with respect to Derivative
IP Rights (hereinafter defined).

                                   AGREEMENT

      NOW, THEREFORE, for and in consideration of the above-described recitals,
the mutual covenants of the parties hereinafter contained and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the parties, the parties hereto, intending to be legally bound,
enter into the agreements contained herein.

1.    DEFINITIONS

      For purposes of this Agreement, the following terms shall have the
meanings set forth below:

   1.1. "Applicable Patent Rights" shall mean all Directly Applicable patents
and patent applications, in each case, which are owned or controlled by
Synchroneuron (or Advisor) as of the Effective Date or acquired by Synchroneuron
(or Advisor) during the Term, other than the Initial Patents.

   1.2. "Applicable Know-How" shall mean all Directly Applicable Know-How, in
each case, which are owned or controlled by Synchroneuron (or Advisor) as of the
Effective Date or acquired by Synchroneuron (or Advisor) during the Term, other
than the Initial Know-How.

   1.3. "Calendar Year" shall mean each twelve (12) month period ending on
December 31.

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS
DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                       1
<PAGE>

   1.4. "Combination Product" shall mean any product that would be deemed to be
a Licensed Product(s) AND either: (a) incorporates one or more active
ingredients which alone would be outside the scope of a Valid Claim under the
Initial Patents or the Applicable Patent Rights, or (b) incorporates a
proprietary dosage delivery system or (c) is sold together with one or more
products for a single invoiced price. For the avoidance of doubt, the scope of
the License shall extend to Combination Products.

   1.5. "Commercially Reasonable Efforts" shall mean efforts and resources
consistent with accepted business practices and legal requirements, and not less
than the efforts typically used in the pharmaceutical industry in respect of
products at comparable stages of development with similar market potential.

   1.6. "Directly Applicable" shall mean, with respect to patents, patent
applications and Know-How, (i) new uses of any of the compounds that are
specifically covered in the Initial Patents; (ii) new Combination Products that
contain one or more of the compounds that are specifically covered in the
Initial Patents; or (iii) new formulations, derivatives or improvements to the
compounds that are specifically covered in the Initial Patents, including
hydrates, salts, esters, isomers or polymorphs thereof, provided that such
formulations, derivatives or improvements are covered by the Initial Patents.

   1.7. "Effective Date" shall mean September 1, 2004.

   1.8. "End-of-Phase 2 Meeting" shall mean the receipt by Somaxon of the FDA's
minutes from the meeting to be held between Somaxon and the FDA to discuss the
results of the Phase 2 Clinical Trials.

   1.9. "FDA" shall mean U.S. Food and Drug Administration of the United States
Department of Health and Human Services and its successor agencies.

   1.10. "IND" shall mean an Investigational New Drug Application as defined
under the United States Food, Drug and Cosmetic Act and applicable regulations
promulgated thereunder, as they are amended or supplemented from time to time,
or an equivalent application under any successor law or regulations.

   1.11. "Initial Know-How" shall mean all Know-How which is owned or controlled
by Synchroneuron at the Effective Date and is necessary or useful for the
commercial exploitation of the Initial Patents.

   1.12. "Initial Patents" shall mean those United States patents set forth on
attached Exhibit 1.12, and all divisions, provisionals, renewals, continuations,
continuations-in-part, reissues, and substitutions thereof, any patent term
extensions thereof under 35 U.S.C. section 156, and any corresponding foreign
patent applications and patent.

   1.13. "Know-How" shall mean trade secrets, inventions, data, processes,
procedures, devices, methods, formulas, protocols, information and other
know-how, whether or not patentable.

   1.14. "Licensed IP" shall mean the Initial Patents, the Initial Know-How, the
Applicable Patent Rights and the Applicable Know-How.

                                       2
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   1.15. "Licensed Products" shall mean (i) any pharmaceutical product that
would, but for the License (defined below) contemplated hereby, infringe any
Valid Claim under, or require use of any of, the Licensed IP, including
acamprosate, memantine and any combination of acamprosate or memantine with
magnesium, and (ii) any modification to such a pharmaceutical product, including
(A) any modification in use, manufacture, preparation, means of delivery or
dosage, and (B) reformulations (including, without limitation, extended release
formulations and flash dose formulations).

   1.16. "Major Markets" shall mean (i) the United States of America, [***].

   1.17. "NDA" shall mean a New Drug Application as defined under the United
States Food, Drug, and Cosmetic Act and applicable regulations promulgated
thereunder, as they are amended or supplemented from time to time, or an
equivalent application under any successor law or regulations.

   1.18. "Net Sales" shall mean the gross amount billed by Somaxon for Licensed
Products, less the following:

              (i) [***];

              (ii) [***];

              (iii) [***];

              (iv) [***];

              (v) [***].

Such amounts shall be determined from the books and records of Somaxon,
maintained in accordance with U.S. generally accepted accounting principles
("GAAP"), consistently applied. Somaxon further agrees in determining such
amounts it will use Somaxon's then current standard procedures and methodology,
to the extent not inconsistent with GAAP.

   1.19. "Phase 2 Clinical Trials" shall mean human clinical trials conducted in
subjects to collect preliminary data regarding efficacy of a Licensed Product in
the particular medical condition for which it is being studied, as well as to
obtain some indication of the dosage regimen required.

   1.20. "Phase 3 Clinical Trials" shall mean pivotal human clinical trials
conducted in subjects and intended to generate data concerning the safety and
efficacy of a Licensed Product in the particular medical condition for which it
is being studied sufficient to support registration of the Licensed Product with
FDA.

   1.21. "Positive Data" shall mean data from a clinical study pursuant to an
IND first showing statistically significant efficacy between a Licensed Product
in an active patient group compared to a placebo patient group based upon either
(i) statistically significant achievement of the primary endpoint of the study
or (ii) Somaxon's determination to proceed with clinical development based on
any secondary analysis of the clinical study data.

   1.22. "Product/Data Access Date" shall mean the earlier of the date of
Somaxon's receipt of access to: (i) clinical quantities of supply of the
finished form of a Licensed Product (i.e., from [***] or any other supplier) and
preclinical data with respect to a Licensed Product that are sufficient in
Somaxon's reasonable judgment to proceed with the preparation and filing of a
Somaxon-sponsored IND application; or (ii) clinical quantities of supply and
preclinical data that are sufficient in Somaxon's reasonable judgment to proceed
with the development of a Licensed Product.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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   1.23. "Sublicense Fees" shall mean any and all license fees, milestone
payments, royalties or any other payments or consideration received by Somaxon
as a result of any sublicense of its rights under this Agreement. Sublicense
Fees shall not include any amounts received (a) solely for ongoing research,
development, sales or marketing support to the extent that (i) such amounts are
paid prior to or at the same time as the performance of the activities to which
they relate and (ii) such amounts represent no more than the actual amounts
expended on such activities or (b) in the form of debt financing or bona fide
equity investments in Somaxon made in connection with a corporate partnership,
collaboration, co-promotion or similar arrangement, provided (i) such debt
financing or equity investments are on terms that are consistent with
independent third party valuation of such debt or equity securities, or (ii) the
funds provided as part of such debt financing or equity investment are
substantially used for the commercialization of the Licensed IP.

   1.24. "Term" shall mean such period of time from the Effective Date through
the expiration of the last to expire patent within the Initial Patents and any
Applicable Patent Rights.

   1.25. "Valid Claim" shall mean an issued claim of an unexpired patent, or a
claim of a pending patent application, which shall not have been withdrawn,
canceled or disclaimed, or held invalid or unenforceable by a court of competent
jurisdiction in an unappealed or unappealable decision.

      Unless the context of this Agreement otherwise requires: (a) words of any
gender include each other gender; (b) words using the singular or plural number
also include the plural or singular number, respectively; (c) the terms
"hereof," "herein," "hereby," and derivative or similar towards refer to this
entire Agreement; (d) the terms "Article," "Section" or "Exhibit" refer to the
specified Article, Section or Exhibit of this Agreement; (e) the term "or" has,
except where otherwise indicated, the inclusive meaning represented by the
phrase, "and/or"; and (f) the term "including" means "including without
limitation." All accounting terms used but not otherwise defined herein shall
have the meanings ascribed to such terms under GAAP, consistently applied.

2. GRANT OF RIGHTS

   2.1. License. Subject to the terms and conditions of this Agreement and
compliance therewith, Synchroneuron and, to the extent applicable, Advisor,
hereby grant to Somaxon an exclusive (even as to Synchroneuron), royalty
bearing, non-transferable (except as expressly provided herein), world-wide
license under the Licensed IP to develop, make, have made, use, sell, offer to
sell, import and export (or otherwise commercialize) Licensed Products (the
"License").

   2.2. Right to Sublicense. Subject to the terms and conditions of this
Agreement and compliance therewith, Somaxon shall have the right to grant
sublicenses under the License to third parties for (i) the marketing, sale or
distribution of approved Licensed Products, or (ii) the clinical development of
unapproved Licensed Products (individually, a "Sublicense"). Somaxon shall
promptly provide Synchroneuron with a copy of any agreement relating to any
Sublicense granted by Somaxon, which agreement shall include the name of the
sublicensee and the royalty rate and other applicable economic terms of such
Sublicense. Any Sublicense granted

                                       4
<PAGE>

by Somaxon shall be consistent with Somaxon's obligations under this
Agreement. If a sublicensee materially breaches the Sublicense agreement,
Somaxon shall take reasonable steps to enforce the terms of such Sublicense
against the sublicensee, including termination if such breach is not cured and
pursuit of any fees or other consideration payable to Somaxon pursuant to such
Sublicense. Any Sublicense (a) shall not relieve Somaxon of its payment
obligations to Synchroneuron under this Agreement and (b) shall be co-terminus
with this Agreement. In connection with any Sublicense, Somaxon shall be
required to make the payments to Synchroneuron consisting of those percentages
of the Sublicense Fees set forth in Section 4.12 below.

   2.3. Disclosure of Licensed IP. Prior to the Effective Date, Synchroneuron
has delivered to Somaxon or provided Somaxon with copies, and Somaxon
acknowledges receipt, of (1) all documents, drawings, specifications, programs,
devices and equipment relating to, and all other tangible manifestations of, the
Initial Know-How; and (2) all patent applications (for which US patents have not
issued) included in the Initial Patents. In addition, following the Effective
Date, Synchroneuron shall promptly deliver to Somaxon or provide Somaxon with
copies of (1) all documents, drawings, specifications, programs, devices and
equipment relating to, and all other tangible manifestations of, the Applicable
Know-How; and (2) all patent applications (for which US patents have not issued)
included in the Applicable Patent Rights.

   2.4. Right of First Offer/Right of First Refusal.

      2.4.1 In the event that either of Synchroneuron or Advisor develops or
acquires any patents, patent applications, know-how or other proprietary rights
that do not constitute Applicable Patent Rights or Applicable Know-How but
nevertheless would be useful to develop, make, have made, use, sell, offer to
sell, import or export (or otherwise commercialize) a Licensed Product,
including prodrugs and analogues (collectively, "Derivative IP Rights"),
Synchroneuron or Advisor, as applicable, agrees to offer such Derivative IP
Rights to Somaxon upon terms and conditions developed by Synchroneuron or
Advisor, as applicable. Such offer shall be made in writing, describing the
Derivative IP Rights in reasonable detail and specifying the terms on which the
Derivative IP Rights are available to Somaxon (the "Offer"). Within ten (10)
days following receipt of the Offer, Somaxon may elect to negotiate in good
faith the licensing of such Derivative IP Rights by giving Synchroneuron or
Advisor, as applicable, written notice of such election. Upon receipt of such
notice, the parties agree to negotiate in good faith toward a definitive
agreement in respect of such Derivative IP Rights for a period of sixty (60)
days or such longer period as the parties may mutually agree.

      2.4.2 In the event Somaxon does not exercise its right to negotiate with
Synchroneuron or Advisor, as applicable, within such ten (10)-day period, or the
parties otherwise fail to come to terms within the applicable period of
negotiation, Synchroneuron or Advisor, as applicable, shall then have the right
to offer the same Derivative IP Rights to any other third party; provided,
however, that prior to entering into any binding agreement with any third party
concerning the Derivative IP Rights, Somaxon shall have the right of first
refusal to in-license or otherwise acquire the Derivative IP Rights from
Synchroneuron or Advisor, as applicable, on the same terms available to the
prospective third party by providing notice to Synchroneuron or Advisor, as
applicable, within thirty (30) days of Somaxon's receipt of notice from
Synchroneuron or Advisor, as applicable, of its proposed transaction with the
prospective third party.

                                       5
<PAGE>

3. DEVELOPMENT AND COMMERCIALIZATION; DILIGENCE

   3.1. Development and Regulatory Matters.

      A. Somaxon shall be solely responsible for conducting and paying for all
clinical trials and for all regulatory filings/interactions, including
pharmacovigilance related to the Licensed Product(s).

      B. Synchroneuron shall provide reasonable and appropriate assistance to
Somaxon on the design and implementation of the clinical trials and such other
matters relating to the Licensed IP as may be mutually agreeable to the parties.
Somaxon shall promptly reimburse Synchroneuron, Advisor and Dr. Steven K. Gold
for all expenses reasonably incurred by them during performance of such
assistance or for other services approved by Somaxon in advance of performance
upon presentation of receipts.

      C. Somaxon shall file for and hold any related NDA and other similar
foreign regulatory filings related to the Licensed Product(s) in its name.
Synchroneuron shall be entitled to have a representative attend and participate
in (i) each meeting during which Somaxon's strategy with respect to meetings
with the FDA or other like foreign government body is discussed and (ii) each
meeting with the FDA or other like foreign government body during the conduct of
Phase 2 Clinical Trials and Phase 3 Clinical Trials.

   3.2. Commercial Matters. Somaxon shall be solely responsible for conducting
and paying for all commercialization matters relating to the Licensed Products,
including any activities relating to sublicense of the Licensed Products, as
well as the commercial development, marketing, promotion, manufacture, sale and
distribution of the Licensed Products.

   3.3. Diligence. Subject to Somaxon's right to terminate, Somaxon shall use
Commercially Reasonable Efforts to develop a commercial Licensed Product and to
commercialize such Licensed Product in a timely manner. Any failure to include
in an operating plan a reasonable budget for development of a commercial
Licensed Product and commercialization of such Licensed Product shall be
conclusive evidence of a failure to use Commercially Reasonable Efforts.

4. PAYMENTS

   4.1. Initial Payment. The parties acknowledge that, upon execution of the
summary of terms which served as the basis for the negotiation and execution of
this Agreement, Somaxon made to Synchroneuron an initial, non-refundable payment
of One Hundred Thousand Dollars ($100,000), creditable as set forth in Section
4.3.

   4.2. Quarterly Payments. In consideration of the License granted hereunder
and subject to the terms and conditions stated herein, Somaxon shall make the
following payments to Synchroneuron, creditable as set forth in Section 4.3:

      4.2.1 Seventy Five Thousand Dollars ($75,000), on each October 9, January
9, April 9 and July 9 until the earlier of (i) receipt of Positive Data or (ii)
January 8, 2006; and

      4.2.2 [***], on each October 9, January 9, April 9 and July 9 thereafter
until [***]; and

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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      4.2.3 Two Hundred Fifty Thousand Dollars ($250,000), on each October 9,
January 9, April 9 and July 9 thereafter until the end of the Term.

      Provided, however, that in the event of (i) the sale of all or
substantially all of Somaxon's assets, including the rights under the License,
or (ii) consolidation or merger with or into another entity if, as a result of
such consolidation or merger, the holders of Somaxon's capital stock prior to
such consolidation or merger do not hold at least a majority of the combined
voting power of the surviving entity (collectively, a "Sale Transaction"), if
Somaxon is not already required to make quarterly payments under Section 4.2.3
above, the quarterly payments shall automatically increase to $250,000 for any
applicable periods after the closing of the Sale Transaction;

      Provided, further, that in the event Somaxon sublicenses its U.S. rights
under the License at a time when Somaxon is not already required to make
quarterly payments under Section 4.2.3 above, then, upon the earlier of (i) July
9, 2008 or (ii) the date the sublicensee determines not to pursue the continued
clinical development of at least one Licensed Product in the U.S., the quarterly
payments shall automatically increase to Two Hundred Fifty Thousand Dollars
($250,000) for any applicable periods thereafter.

   4.3. Credits Against Royalty. Somaxon shall have the right to credit one
hundred percent (100%) of the initial payment under Section 4.1 and any
quarterly payments received by Synchroneuron under Section 4.2 against Royalties
and Sublicense Fees due to Synchroneuron.

   4.4. Royalty.

      4.4.1 During the Term, Somaxon shall pay to Synchroneuron a [***] royalty
("Royalty") on Net Sales. No Royalty shall be due with respect to sales of
Licensed Products pursuant to any Sublicense, subject to payment of the
applicable percentage of Sublicense Fees as specified in Section 4.12 below. The
parties allocate any Royalty to (i) Initial Patents and any Applicable Patent
Rights [***] and (ii) Initial Know-How and any Applicable Know-How [***].

      4.4.2 Royalties payable under this Section 4.4 will be payable only once
with respect to a particular Licensed Product and will be paid only once
regardless of the number of patents or patent applications in Licensed IP with
claims covering a Licensed Product.

   4.5. Permitted Reductions in Royalty. Subject to the last sentence of this
Section 4.5, the Royalty may be reduced up to a maximum of [***] of the Royalty
otherwise due to account for (i) any and all royalties or other additional costs
of goods paid by Somaxon to any third party (up to the actual extent of the
royalties or other additional costs of goods paid to any third party) due to (a)
any required license of proprietary rights (i.e., patents or Know-How) due to
the probable infringement or misappropriation by a Licensed Product of such
third-party rights (should such rights not have been secured by Synchroneuron)
as determined by Somaxon in good faith and disclosed to Synchroneuron under the
parties' covenants of confidentiality, or (b) any Combination Product, or (ii)
any final, unappealable judgment awarded against Somaxon for damages for
infringement of third party proprietary rights related to a Licensed Product. In
connection with any such reduced Royalty, the parties shall cooperate with one
another in good faith in connection with the negotiation and implementation of
any related license(s) from one or more third parties; provided, however, that
the parties understand and agree that Somaxon shall have sole discretion over
the ultimate determination to enter into any such license(s) and the terms of
any such license(s). In no event shall the Royalty payable to Synchroneuron
hereunder be reduced pursuant to this Section 4.5 to less than [***] royalty on
Net Sales.

*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect to
the omitted portions.

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<PAGE>

   4.6. Payment and Reports. Within sixty (60) days after the end of each
calendar quarter in which Net Sales have occurred or Sublicense Fees are paid or
are payable, Somaxon shall submit to Synchroneuron a written report setting
forth for such preceding calendar quarter, the Net Sales, Sublicense Fees
received or payable and the calculation of the Royalty and other amounts payable
to Synchroneuron pursuant to this Article 4. Such report shall be accompanied by
the total Royalty due, if any, to Synchroneuron pursuant to this Article 4, and
any portions of Sublicense Fees shall be payable as set forth in Section 4.12.
All payments shall be made in U.S. Dollars.

   4.7. Record Keeping by Somaxon. Somaxon shall keep, and shall cause its
sublicensees to keep, complete and accurate books of accounts of record in
connection with the manufacture, use, sublicensing and sale of Licensed Products
to permit verification of Royalty and other payments due hereunder. Such records
shall be maintained for a period of at least five (5) years from the date on
which they were generated.

   4.8. Audit by Synchroneuron. Synchroneuron shall have the right to access
books and records of Somaxon as may be reasonably necessary to verify the
accuracy of the reports and payments made hereunder. Such access shall be
conducted upon reasonable written notice to Somaxon and during normal business
hours. Such access shall not be more frequent than twice per calendar year and
may only occur with respect to a calendar quarter in the immediately preceding
twenty-four (24) months. Notwithstanding the foregoing, in the event that
Somaxon recovers any amounts from a sublicensee under a Sublicense following an
audit by Somaxon pursuant to the terms of the Sublicense, regardless of the time
such audit is performed by Somaxon, such amounts recovered by Somaxon shall be
considered Sublicense Fees hereunder. Upon Somaxon's written request,
Synchroneuron shall require the auditing party to sign a confidentiality
agreement for the benefit of Somaxon. The results of such audit shall upon
request be made available to Somaxon. If any audit discloses that the payments
by Somaxon to Synchroneuron are incorrect in Somaxon's favor, then Somaxon shall
pay any amount due to Synchroneuron within ten (10) days after receipt of the
necessary documentation of the amount owed. If any audit discloses that the
payments by Somaxon to Synchroneuron are incorrect in Synchroneuron's favor,
then Somaxon shall have the right to credit any amount due to Somaxon against
any quarterly payments and Royalties or Sublicense Fees due to Synchroneuron
under Article 4 after receipt of the necessary documentation of the amount owed.
If Synchroneuron's audit demonstrates an underpayment of more than five percent
(5%) for the payment due to Synchroneuron during the audited period, Somaxon
shall be liable for Synchroneuron's cost of the audit that discovered such
underpayment. Otherwise, the parties shall bear their own costs of such audits.

   4.9. Withholding Taxes. Where required to do so by applicable law, rule or
order of a governmental body, Somaxon shall withhold taxes required to be paid
to a taxing authority in connection with any payments to Synchroneuron
hereunder, and, upon request of Synchroneuron, Somaxon shall furnish
Synchroneuron with satisfactory evidence of such withholding and payment.
Somaxon shall cooperate with Synchroneuron in obtaining exemption from
withholding taxes where available under applicable law. In addition, to the
extent permitted by applicable law, upon the request of Synchroneuron, the
parties will discuss in good faith the transfer of any applicable tax credits to
Somaxon and payment to Synchroneuron in consideration of such transfer.

                                       8
<PAGE>

   4.10. Interest on Late Payments. Somaxon shall pay interest to Synchroneuron
at the "Prime Rate" published in the "Money Rates" section or other comparable
section of The Wall Street Journal on the date (or next to occur business day,
if such date is not a business day) on which payment should have been made
pursuant to the applicable provisions of this Agreement plus [***] on all late
payments applicable from the date on which payment should have been made
pursuant to the applicable provisions of this Agreement until the date of
payment. If The Wall Street Journal publishes a prime rate range, then the
average of that range will be the Prime Rate.

   4.11. Equity.

      4.11.1 Subject to Section 7.4 below, in further consideration for the
grant of the License hereunder and subject to the terms and conditions of this
Agreement, Somaxon shall issue to Synchroneuron up to five hundred thousand
(500,000) shares of common stock, par value $0.0001 per share, of Somaxon (the
"Shares") upon the occurrence of the following events during the Term:

      A. [***] of the Shares upon the earlier of: (i) [***]; or (ii) [***]; and

      B. [***] of the Shares upon the earlier of: (i) [***]; or (ii) [***].

      The share amounts set forth in this Section 4.11.1 shall be appropriately
adjusted for all stock splits, stock dividends, consolidations,
recapitalizations and reorganizations.

      4.11.2 The share certificate evidencing the Shares shall be endorsed with
legends in substantially the form set forth on Exhibit 4.11.2 and the issuance
of the Shares shall be subject to applicable federal and state securities laws
and the Company's bylaws and other organizational documents. In addition to the
matters set forth in Section 7.4, Synchroneuron shall make such additional
representations and warranties at the time of the issuance of the Shares as may
be reasonably requested by Somaxon solely to ensure compliance with applicable
federal and state securities laws.

      4.11.3 Somaxon's obligation pursuant to this Section 4.11 to issue the
Shares to Synchroneuron shall survive any Sale Transaction which closes during
the Term based on the applicable conversion ratio for common stock in such Sale
Transaction.

   4.12. Sublicense Payments. In connection with the receipt of any Sublicense
Fees during the Term, Somaxon shall be required to make the payments to
Synchroneuron set forth below within thirty (30) days of the receipt of such
Sublicense Fees from the sublicensee:

      4.12.1 [***] of the Sublicense Fees received, if the Sublicense is
executed after the Effective Date and before the End-of-Phase 2 Meeting; or

      4.12.2 [***] of the Sublicense Fees received, if the Sublicense is
executed from and after the End-of-Phase 2 Meeting and before the completion of
Phase 3 Clinical Trials; or

      4.12.3 [***] of the Sublicense Fees received, if the Sublicense is
executed from and after the completion of Phase 3 Clinical Trials.

*** Certain information on this page has been omitted and filed separately
with the Commission. Confidential treatment has been requested with respect to
the omitted portions.

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5. PATENT RIGHTS

   5.1. Patent Prosecution and Maintenance. Except to the extent otherwise
agreed by the parties in writing, Somaxon shall have the primary right and
obligation to control prosecution, maintenance and defense against infringement,
and assume all associated costs, with respect to the Licensed IP in the name of
Synchroneuron. From and after the Effective Date, Somaxon shall be responsible
for the preparation, filing, prosecution and maintenance of the Initial Patents
and the Applicable Patent Rights, including all payment obligations accruing
after the Effective Date. Synchroneuron and Advisor will assist Somaxon, at
Somaxon's expense, in any such activities. Prior to the Effective Date,
Synchroneuron has provided to Somaxon, and Somaxon acknowledges receipt of, a
schedule setting forth the timing of all maintenance fees and other material
prosecution and maintenance activities scheduled with respect to the Initial
Patents and the Applicable Patent Rights Somaxon shall keep Synchroneuron
reasonably informed as to the status of any of the Licensed IP, and shall allow
Synchroneuron reasonable input into the prosecution, maintenance and defense of
the Licensed IP. In the event Somaxon fails to make any required payments or
take any action required for the preparation, filing, prosecution, maintenance
or defense of the Initial Patents or the Applicable Patent Rights with respect
to any of the Major Markets, Somaxon shall provide Synchroneuron with sufficient
written notice and Synchroneuron shall have the right to make any such required
payments or take any such required action and thereafter may terminate certain
Somaxon rights on a country-by-country basis as applicable under the License
pursuant to Section 9.4.1 hereof.

   5.2. Patent Enforcement.

      5.2.1 If either party should become aware of any infringement or
misappropriation or threatened infringement or misappropriation of the Licensed
IP by a third party, it shall promptly notify the other party in writing and
provide any information available to that party relating to such alleged
infringement or misappropriation.

      5.2.2 Somaxon shall have the first right, but not the obligation, to take
action in Synchroneuron's name and Somaxon's own expense to secure the cessation
of any infringement or misappropriation or to institute, prosecute and control
legal proceedings to prevent or restrain such infringement or misappropriation
concerning the Licensed IP. Synchroneuron agrees to assist Somaxon, at Somaxon's
expense, in the prosecution of any action or legal proceedings related to
infringement or misappropriation of the Licensed IP. If requested by Somaxon,
Synchroneuron agrees to join any action or legal proceeding to enforce the
Licensed IP against any third party. If Somaxon takes action or prosecutes legal
proceedings relating to the infringement or misappropriation of the Licensed IP,
Somaxon shall (a) reimburse Synchroneuron for its reasonable out-of-pocket costs
associated with its assistance under this Section 5.2.2; and (b) within thirty
(30) days of receipt of any damages or costs in any such action or proceeding,
pay to Synchroneuron five percent (5%) of any such damages or costs, after
deduction of Somaxon's applicable legal fees and related costs directly
attributable to the action for infringement of misappropriation. All other
damages and costs recovered in any action or proceedings or by way of settlement
shall belong to Somaxon. For the avoidance of doubt, (i) to the extent that
Somaxon enters into a sublicense agreement with a formerly infringing party to
permit such party to continue to sell Licensed Products, any amounts paid
thereafter by such party to Somaxon pursuant to the sublicense agreement shall
be considered "Sublicense Fees" for purposes of Section 4.12 and (ii) to the
extent that Somaxon receives any amounts from a sublicensee representing damages
recovered by the sublicense attributable to an action for infringement of
misappropriation of the Licensed IP, such amounts shall be considered
"Sublicense Fees" for purposes of Section 4.12.

                                       10
<PAGE>

      5.2.3 In the event that Somaxon does not pursue any such infringement or
misappropriation within six (6) months of notice of any such infringement or
misappropriation, Synchroneuron shall have the right, but not the obligation, to
take action in its own name and its expense to secure the cessation of any such
infringement or misappropriation or to institute, prosecute and control legal
proceedings to prevent or restrain such infringement or misappropriation
concerning the Licensed IP. If requested by Synchroneuron, Somaxon agrees to
join any action or legal proceeding to enforce the Licensed IP against any third
party. If Synchroneuron takes action or prosecutes legal proceedings relating to
the infringement or misappropriation of the Licensed IP, after payment of
Somaxon's reasonable out-of-pocket costs, all other damages and costs recovered
in any action or proceedings or by way of settlement shall belong to
Synchroneuron. If Synchroneuron assumes control of any infringement or
misappropriation action hereunder, Synchroneuron may terminate certain Somaxon
rights under the License pursuant to Section 9.4.2 hereof.

   5.3. Infringement Action by a Third Party. In the event of the institution of
any suit by a third party against Somaxon for patent infringement arising from
the manufacture, use, sale, distribution or marketing of any Licensed Product,
Somaxon shall promptly notify Synchroneuron in writing of such suit. Somaxon
shall have the sole right to defend such suit at its own cost and expense, and
Synchroneuron shall, at Somaxon's expense, assist and cooperate with Somaxon in
the defense of such suit. Synchroneuron shall have the right to approve any
settlement that would adversely affect the Licensed IP, Synchroneuron's rights
hereunder or result in any liability or admission on behalf of Synchroneuron. In
the event Somaxon does not respond to such third-party suit within a reasonable
period of time following institution of such suit, whether by settling the case,
pursuing a defense or otherwise, the portion of Licensed IP at issue in such
suit shall revert back to Synchroneuron without effect on the License covering
the remaining portion of the Licensed IP.

   5.4. Diligence Obligations Related to Licensed IP. During the Term, Somaxon
shall use Commercially Reasonable Efforts to prosecute, maintain and defend
against infringement with respect to the Licensed IP in the Major Markets.

6. CONFIDENTIAL INFORMATION

   6.1. Non-use and Non-disclosure Obligations. Each of Synchroneuron and
Somaxon shall use any information received by it from the other party solely in
connection with performance of their respective obligations under this Agreement
and shall not disclose such information to any third party, without the prior
written consent of the other party. These obligations shall survive the
expiration or termination of this Agreement for a period of ten (10) years.
These obligations shall not apply to information that:

      6.1.1 is known by the receiving party, as evidenced by its records, at the
time of receipt and not through a prior disclosure by the disclosing party;

      6.1.2 is at the time of disclosure or thereafter becomes published or
otherwise part of the public domain through no breach of this Agreement by the
receiving party;

      6.1.3 is subsequently disclosed to the receiving party without
restriction, as evidenced by its records, by a third party having the right to
make such a disclosure;

                                       11
<PAGE>

      6.1.4 is developed by the receiving party, as evidenced by its records,
independently of information received by it from the disclosing party hereunder;
or

      6.1.5 is disclosed to any governmental authority in order to prosecute or
maintain any Licensed IP or any regulatory authority to obtain approval to
market a Licensed Product, but such disclosure may be made only to the extent
necessary to pursue such prosecution or maintenance or to obtain such approval.

   6.2. Required Disclosure. The receiving party may disclose information to the
extent that it is required by law, regulation, rule, act or order of any
governmental authority or agency to be disclosed by a party, provided that only
such portion of the information which is legally required to be disclosed is so
disclosed and notice is promptly given to the other party in order to provide it
an opportunity to seek a protective order or the like with respect to such
information.

   6.3. Permitted Disclosure. Information provided under this Agreement may be
disclosed to employees, agents, consultants, or suppliers of the receiving
party, but only to the extent required to accomplish the purposes of this
Agreement; provided that such employees, agents, consultants or suppliers shall
also agree to appropriate and comparable confidentiality and non-use provisions.
The receiving party shall be responsible for any breaches of this Agreement by
its employees, agents, consultants, or suppliers.

   6.4. Return. Upon the termination of this Agreement, all material information
of the disclosing party will be returned to the disclosing party (or destroyed
by the receiving party, with written confirmation of such destruction), and the
receiving party will make no further use thereof. Notwithstanding the foregoing,
the receiving party may retain one copy of the information of the disclosing
party solely for archival purposes to ensure compliance with the provisions of
this Section 6.

   6.5. Relief. Money damages will not be an adequate remedy if this Section 6
is breached and therefore, either party may, in addition to any other legal or
equitable remedies, seek and injunction or other equitable relief against such
breach or threatened breach, without the necessity of posting any bond or
surety.

   6.6. Publicity. Except as required by law, regulation or court order, all
publicity, press releases and other announcements relating to the terms of this
Agreement or the transactions contemplated hereby shall be reviewed in advance
by, and shall be subject to the written approval of, both parties.
Notwithstanding the foregoing, (a) Somaxon may issue a press release or public
announcement concerning any aspect of Somaxon's development or commercialization
of a Licensed Product and (b) either party may disclose the existence of this
Agreement and the terms and conditions hereof, without the prior written consent
of the other party, as reasonably necessary in connection with the due diligence
process associated with future capital investment or the negotiation or
exploration of a possible strategic transaction.

7. REPRESENTATIONS AND WARRANTIES AND COVENANTS

   7.1. Corporate Existence and Power. As of the Effective Date, each party
represents and warrants to the other that: (1) with respect to Somaxon, it is a
corporation duly organized, validly existing and in good standing under the laws
of the state in which it is incorporated, and with respect to Synchroneuron, it
is a limited liability company duly organized, validly existing and in

                                       12
<PAGE>

good standing under the laws of the state in which it is organized; and (2) it
has full power and authority and the legal right to own and operate its property
and assets and to carry on its business as it is now being conducted and as
contemplated in this Agreement, including the right to grant the License and
perform its obligations hereunder.

   7.2. Authority. As of the Effective Date, each party represents and warrants
to the other that: (1) it has the power and authority and the legal right to
enter into this Agreement and perform its obligations hereunder; (2) it has
taken all necessary action on its part required to authorize the execution and
delivery of this Agreement and the performance of its obligations hereunder; (3)
this Agreement has been duly executed and delivered on behalf of such party, and
constitutes a legal, valid and binding obligation of such party and is
enforceable against it in accordance with its terms; (4) all necessary consents,
approvals and authorizations of all governmental authorities and other persons
or entities required to be obtained by such party in connection with entry into
this Agreement have been obtained; and (5) the execution and delivery of this
Agreement and the performance of such party's obligations hereunder (A) do not
conflict with or violate any requirement of applicable law or regulation or any
provisions of such party's charter documents in any material way, and (B) do not
conflict with, violate or breach or constitute a default or require any consent
under, any contractual obligation or court or administrative order by which such
party is bound.

   7.3. Intellectual Property.

      7.3.1 As of the Effective Date, Synchroneuron represents and warrants to
Somaxon that it is not aware of any pending or threatened litigation (and has
not received any communication relating thereto) which alleges that the Licensed
IP infringes the intellectual property rights of any third party.

      7.3.2 Synchroneuron represents and warrants that to Synchroneuron's
knowledge, there is no material unauthorized use, infringement or
misappropriation of any of the Licensed IP by any third party.

      7.3.3 Synchroneuron represents and warrants that no present or former
collaborator, partner, employee or consultant of Synchroneuron or Advisor owns
or has any proprietary, financial or other interest, direct or indirect, in the
Licensed IP (excluding any financial interest in Synchroneuron in the form of
equity, debt or compensation for services) that would have an adverse affect on
the rights granted pursuant to this Agreement, and, to Synchroneuron's
knowledge, no third party's confidential information is included in the Licensed
IP.

      7.3.4 Synchroneuron agrees not to knowingly disclose to Somaxon, or use in
connection with Synchroneuron's efforts for Somaxon, any confidential
information belonging to any third party.

   7.4. Shares. In connection with the issuance of the Shares, Synchroneuron
agrees, represents and warrants to Somaxon the following:

      7.4.1 The Shares to be received by Synchroneuron will be acquired for
investment for Synchroneuron's own account and not with a view to the public
resale or distribution thereof within the meaning of the Securities Act of 1933,
as amended (the "Securities Act").

      7.4.2 Synchroneuron has received or has had full access to all the
information Synchroneuron considers necessary or appropriate to make an informed
investment decision with respect to the Shares.

                                       13
<PAGE>

      7.4.3 Synchroneuron understands that the ownership of the Shares involves
substantial risk. Synchroneuron: (i) has experience as an investor in securities
of companies in the development stage and acknowledges that Synchroneuron is
able to fend for itself, can bear the economic risk of Synchroneuron's
investment in the Shares and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of its
investment in the Shares and protecting its investment; or (ii) has a
preexisting business relationship with Somaxon and certain of its officers,
directors or controlling persons of a nature and duration that enables
Synchroneuron to be aware of the character, business acumen and financial
circumstances of such persons.

      7.4.4 Synchroneuron is an "accredited investor" within the meaning of
Regulation D promulgated under the Securities Act. Information with respect to
qualifying as an "accredited investor" is set forth in Annex I hereto.

      7.4.5 Synchroneuron understands that the Shares are characterized as
"restricted securities" under the Securities Act, and will be issued by Somaxon
in a transaction not involving a public offering and that under the Securities
Act and applicable regulations thereunder such securities may be resold without
registration under the Securities Act only in certain limited circumstances.
Synchroneuron represents that it is familiar with Rule 144 of the Securities and
Exchange Commission and understands the resale limitations imposed thereby and
by the Securities Act. Synchroneuron understands that Somaxon is under no
obligation to register any of the securities sold hereunder.

      7.4.6 Synchroneuron hereby agrees, if so requested by the managing
underwriters in connection with a public offering of Somaxon's common stock,
that Synchroneuron will enter into a "lock-up" agreement providing that
Synchroneuron will not offer, sell, contract to sell, grant any option to
purchase, make any short sale or otherwise dispose of, assign any legal or
beneficial interest in or make a distribution of the Shares (including any other
shares of capital stock of Somaxon which may issued as a dividend or
distribution with respect to, or in exchange for, the Shares) in accordance with
the rules and regulations of the Securities and Exchange Commission for a period
of up to one hundred eighty (180) days after the date of the final prospectus
relating to Somaxon's initial public offering. The foregoing provisions of this
Section 7.4.6 shall apply only to Somaxon's initial offering of equity
securities, shall not apply to the sale of any shares by Synchroneuron to an
underwriter pursuant to an underwriting agreement, and shall only be applicable
to Synchroneuron if all officers, directors and greater than one percent (1%)
stockholders of Somaxon are required to enter into similar agreements. In order
to enforce the foregoing covenant, Somaxon may impose stop transfer instructions
with respect to the Shares until the end of such period. Any discretionary
waiver or termination of the restrictions in the "lock-up" agreements with
respect to any officer, director or greater than one percent (1%) stockholder by
Somaxon or the underwriters shall also be granted to Synchroneuron pro rata
based on the number of shares subject to such restrictions.

   7.5. Information Rights. Somaxon shall deliver to Synchroneuron:

      7.5.1 as soon as practicable following the completion of a fiscal year, an
income statement for such fiscal year, a balance sheet and statement of
stockholder's equity as of the end of such year, and a schedule as to the
sources and applications of funds for such year,

                                       14
<PAGE>

such year-end financial reports to be in reasonable detail, prepared in
accordance with generally accepted accounting principles ("GAAP"), and audited
and certified by independent public accountants of nationally recognized
standing selected by Somaxon;

      7.5.2 as soon as practicable following the completion of the first three
(3) fiscal quarters of each fiscal year, an unaudited profit or loss statement,
schedule as to the sources and application of funds for such fiscal quarter and
an unaudited balance sheet as of the end of such fiscal quarter; and

      7.5.3 at the same time as it may be provided to Somaxon's investors, such
other information relating to the financial condition, business, prospects or
corporate affairs of Somaxon as is provided generally to Somaxon's investors.

   7.6. No Other Representations or Warranties. EXCEPT AS SPECIFICALLY STATED IN
THIS AGREEMENT, THE LICENSED IP IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY
KIND. SYNCHRONEURON EXPRESSLY DISCLAIMS ANY WARRANTY THAT THE LICENSED IP OR
LICENSED PRODUCTS WILL MEET SOMAXON'S REQUIREMENTS (OR THOSE OF ITS CUSTOMERS)
OR RESULT IN ANY OUTCOME. SYNCHRONEURON HEREBY DISCLAIMS ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, ORAL OR WRITTEN, WITH RESPECT TO THE LICENSED IP AND
LICENSED PRODUCTS INCLUDING, WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF
TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
AND ALL WARRANTIES ARISING FROM ANY COURSE OF DEALING, COURSE OF PERFORMANCE OR
USAGE OF TRADE.

8. INDEMNIFICATION

   8.1. Indemnification by Synchroneuron. Synchroneuron shall indemnify, defend
and hold harmless Somaxon and its affiliates and each of their respective
employees, officers, directors and agents from and against any and all third
party claims, allegations, liability, loss, damage, cost and expense (including
reasonable attorneys' fees) resulting from or in connection with (i) the breach
by Synchroneuron of any representation or warranty; (ii) violation of the trade
secrets of any third party by Synchroneuron; or (iii) any third party claim that
Synchroneuron willfully disclosed or made available to Somaxon any Licensed IP
in violation of an obligation of Synchroneuron to such third party; provided,
however, that such indemnification right shall not apply to any liability,
damage, loss, or expense to the extent directly attributable to the negligence,
reckless misconduct, or intentional misconduct of a party seeking
indemnification under this Section 8.1.

   8.2. Indemnification by Somaxon. Somaxon shall indemnify, defend and hold
harmless Synchroneuron and Advisor and each of their respective employees,
officers, directors and agents from and against any and all third party claims,
allegations, liability, loss, damage, cost and expense (including reasonable
attorney's fees) resulting from or in connection with (i) the breach by Somaxon
of any representation or warranty; or (ii) claims, settlements, suits, actions,
demands, or judgments arising out of any theory of product liability, personal
injury, property damages, death (including actions in the form of tort, warranty
or strict liability) by any third party concerning any product that is made,
used, marketed or sold by Somaxon or its affiliates or sublicensees, including
Licensed Products; provided, however, that such indemnification right shall not
apply to any liability, damage, loss, or expense to the extent directly
attributable to the negligence, reckless misconduct, or intentional misconduct
of a party seeking indemnification under this Section 8.2.

                                       15
<PAGE>

   8.3. Indemnification Procedures. Promptly after receipt by a party seeking
indemnification under this Section 8 (an "Indemnitee") of notice of any pending
or threatened claim against it (an "Action"), such Indemnitee shall give written
notice to the party to whom the Indemnitee is entitled to look for
indemnification pursuant to this Section 8 (the "Indemnifying Party") of the
commencement thereof, provided that the failure so to notify the Indemnifying
Party shall not relieve it of any liability that it may have to any Indemnitee
hereunder, except to the extent the Indemnifying Party demonstrates that it is
materially prejudiced thereby. In case any Action that is subject to
indemnification under this section shall be brought against an Indemnitee and it
shall give written notice to the Indemnifying Party of the commencement thereof,
the Indemnifying Party shall assume the defense thereof with counsel reasonably
satisfactory to such Indemnitee and, the Indemnifying Party shall not be liable
to such Indemnitee under this Section 8 for any fees of other counsel or any
other expenses, in each case subsequently incurred by such Indemnitee in
connection with the defense thereof, other than reasonable costs of
investigation. The Indemnitee shall have the right to employ separate counsel
and to participate in the defense of such Action, and the Indemnifying Party
shall bear the reasonable fees, costs and expenses of such separate counsel if:
(i) the use of counsel chosen by the Indemnifying Party to represent the
Indemnitee would present such counsel with a conflict of interest; (ii) the
actual or potential defendants in, or targets of, any such Action include both
the Indemnifying Party and the Indemnitee, and the Indemnitee shall have
reasonably concluded that there may be legal defenses available to it which are
different from or additional to those available to the Indemnifying Party (in
which case the Indemnifying Party shall not have the right to assume the defense
of such Action on the Indemnitee's behalf); (iii) the Indemnifying Party shall
not have employed counsel satisfactory to the Indemnitee to represent the
Indemnitee within a reasonable time after notice of the institution of such
Action; or (iv) the Indemnifying Party shall authorize the Indemnitee to employ
separate counsel at the Indemnifying Party's expense. No compromise or
settlement of any Action may be effected by the Indemnifying Party without the
Indemnitee's written consent, which consent shall not be unreasonably withheld
or delayed, unless (A) there is no finding or admission of any violation of law
or any violation of the rights of any person and no effect on any other claims
that may be made against the Indemnitee and (B) the sole relief provided is
monetary damages that are paid in full by the Indemnifying Party.

   8.4. Insurance. Somaxon shall have and maintain such type and amounts of
liability insurance covering its activities under this Agreement as is normal
and customary in the pharmaceutical industry generally for parties similarly
situated. Somaxon shall, upon request, provide Synchroneuron with a copy of its
policies of insurance in that regard, along with any amendments and revisions
thereto. Synchroneuron shall be named as an additional insured on any policies
maintained hereunder by Somaxon.

9. TERM AND TERMINATION

   9.1. Term. The term of this Agreement shall begin upon the Effective Date,
and unless sooner terminated as hereinafter provided, shall continue in full
force and effect throughout the Term, in which event the Term shall end upon
such earlier termination.

   9.2. Termination of Agreement by Somaxon. Somaxon may terminate this
Agreement upon not less than thirty (30) days' written notice to Synchroneuron
for any reason or no reason.

                                       16
<PAGE>

   9.3. Termination of Agreement by Synchroneuron. Synchroneuron may terminate
this Agreement and the License upon the occurrence of one or more of the
following:

      9.3.1 upon thirty (30) days written notice to Somaxon if Somaxon
materially breaches the terms of this Agreement and does not cure such breach
within a sixty (60)-day period following receipt of such notice (except in the
case of Somaxon's failure to pay a quarterly payment to Synchroneuron in which
case the period of cure is thirty (30) days). In the case of any breach of the
terms of the License, a decision not to terminate does not reduce or eliminate
any recourse otherwise available to either party;

      9.3.2 immediately upon written notice to Somaxon in the event Somaxon
becomes insolvent or initiates a voluntary proceeding under the U.S. Bankruptcy
Code; or

      9.3.3 immediately upon written notice to Somaxon in the event Somaxon
becomes the subject of an involuntary proceeding under the U.S. Bankruptcy Code
and such proceeding is not dismissed or stayed within ninety (90) days of its
commencement.

   9.4. Termination of License for Portion of Licensed IP by Synchroneuron.
Synchroneuron may terminate the License as to specified portions of the Licensed
IP, as to such portion and upon the occurrence of the following events:

      9.4.1 In the event that Somaxon fails to make any required payments or
take any action required for the preparation, filing, prosecution, maintenance
or defense of the Initial Patents or the Applicable Patent Rights with respect
to any of the Major Markets, as set forth in Section 5.1, upon sixty (60) days
written notice to Somaxon, Synchroneuron may terminate the License as to the
applicable Initial Patent or Applicable Patent Right on a county-by-country
basis for which Somaxon has so failed to make payments or to take action;
provided that following receipt of such notice Somaxon shall have a sixty
(60)-day period in which to cure such failure; and

      9.4.2 In the event that Synchroneuron assumes control of any infringement
or misappropriation action with respect to the Licensed IP, as set forth in
Section 5.2.3, upon sixty (60) days written notice to Somaxon, Synchroneuron may
terminate the License as to the applicable Licensed IP on a county-by-country
basis in the territory in which Synchroneuron has assumed control of such
infringement or misappropriation action; provided that following receipt of such
notice Somaxon shall have a sixty (60)-day period in which to cure such failure.

      9.4.3 Upon any termination in accordance with Sections 9.4.1 or 9.4.2
above, Somaxon shall promptly assign to Synchroneuron the applicable regulatory
approval or marketing authorization and any regulatory file with respect to the
country(ies) for which the License has been terminated.

   9.5. Procedure upon Termination or Expiration of Agreement. Upon the
termination of the Agreement by Somaxon pursuant to Section 9.2 or by
Synchroneuron pursuant to Section 9.3 or 9.4, all applicable Licensed Product(s)
and Licensed IP shall immediately revert back to Synchroneuron, free and clear
of all claims, costs and expenses, and Somaxon shall promptly assign to
Synchroneuron all clinical data, research data and other information developed
or acquired by or on behalf of Somaxon relating to the Licensed Product or
Licensed Product clinical trials. Furthermore, such termination shall not
relieve either party of any obligations (including payment obligations) which
have accrued prior to the effective date of such

                                       17
<PAGE>

termination. Upon the natural expiration of this Agreement at the end of the
Term, Somaxon shall have a paid-up, perpetual, exclusive license to use the
Initial Know-How and the Applicable Know-How with regard to the Licensed
Products with no obligation of accounting or otherwise to Synchroneuron and
Synchroneuron shall have no right to receive or use any information developed or
acquired by Somaxon, including all data and other information from clinical
trials, relating to the Licensed Products, and Synchroneuron shall have no
obligation to make any further disclosures to Somaxon hereunder.

   9.6. Survival. Except as expressly provided herein, Sections 6, 8, 9.5, 9.6,
10, 11, 12 and any accrued rights to payment shall survive any expiration or
early termination of this Agreement, as well as any other provisions which by
their nature are intended to survive expiration or early termination.

10. LIMITATION OF LIABILITY. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY
UNDER ANY CIRCUMSTANCES OR ANY LEGAL OR EQUITABLE THEORY, WHETHER IN CONTRACT,
TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE FOR ANY (A) INDIRECT,
INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, RELIANCE, PUNITIVE OR SPECIAL DAMAGES
INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY OR LOST PROFITS, (B) COST OF
PROCURING SUBSTITUTE products, SERVICES OR TECHNOLOGY OR (C) AMOUNTS IN EXCESS
OF THE AMOUNTS PAID OR PAYABLE HEREUNDER, ARISING OUT OF OR RELATED TO THE
LICENSED IP OR TO THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. THE FOREGOING LIMITATIONS SHALL NOT APPLY TO BREACHES OF THE LICENSES
GRANTED HEREIN, BREACHES OF SECTION 6 OR THE INDEMNIFICATION OBLIGATIONS UNDER
SECTION 8. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF
ESSENTIAL PURPOSE OR ANY LIMITED REMEDY.

11. DISPUTE RESOLUTION

   11.1. Informal Resolution. In the event of any controversy, dispute or claim
arising out of, in connection with, or in relation to the interpretation,
performance, or alleged breach of this Agreement (the "Dispute"), prior to
instituting any arbitration on account of such Dispute, the parties shall
attempt in good faith to settle such Dispute first by negotiation and
consultation between themselves, including referral of such Dispute to the Chief
Executive Officer of Somaxon and the Chief Executive Officer of Synchroneuron.
In the event said executives are unable to resolve such Dispute or agree upon a
mechanism to resolve such Dispute within thirty (30) days of the first written
request for dispute resolution under this Section 11.1, then the parties shall
resolve all such Disputes in accordance with Section 11.2.

   11.2. Arbitration. Any Dispute which has not been resolved by good faith
negotiations between the parties shall be submitted by the parties to
arbitration by the American Arbitration Association ("AAA") in the county and
state in which the principal executive offices of the party not initiating the
arbitration exist. Such arbitration shall be conducted under the commercial
rules then in effect for the AAA except as provided herein. All proceedings
shall be held in English and a transcribed record prepared in English. Each
party shall choose one (1) arbitrator within thirty (30) days of receipt of
notice of the intent to arbitrate. Such arbitrators shall thereafter choose a
third arbitrator within thirty (30) days of their appointment. If no arbitrator
is appointed within the times herein provided or any extension of time which is
mutually agreed upon, the AAA shall make such appointment of the first two (2)
arbitrators within thirty (30) days

                                       18
<PAGE>

of such failure who shall thereafter pick the third as set forth herein. The
award rendered by the arbitrator shall include costs of arbitration, reasonable
attorneys' fees and reasonable costs for expert and other witnesses, and
judgment on such award may be entered in any court having jurisdiction thereof.
The parties shall be entitled to discovery as provided in NY CPLR Section
7558(a), whether or not the New York Arbitration Act is deemed to apply to said
arbitration. Nothing in this Agreement shall be deemed as preventing either
party from seeking injunctive relief (or any other provisional remedy) from any
court having jurisdiction over the parties and the subject matter of the Dispute
as necessary to protect either party's name, proprietary information, trade
secrets, know-how or any other proprietary right. If the Dispute involves
scientific or technical matters, any arbitrator chosen hereunder shall have
educational training and/or experience sufficient to demonstrate a reasonable
level of knowledge in the field of movement disorders. Judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.

   11.3. Governing Law. This Agreement shall be governed by the laws of the
State of New York, excluding that body of law known as conflicts of law.

12. MISCELLANEOUS

   12.1. Unenforceability. Both parties hereby expressly state that it is the
intention of neither party to violate any rule, law or regulation. If any of the
provisions of this Agreement are held to be void or unenforceable, then such
void or unenforceable provisions shall be replaced by valid and enforceable
provisions which will achieve as far as possible the economic business
intentions of the parties.

   12.2. No Waiver. The failure by either party to take any action or assert any
right hereunder shall in no way be construed to be a waiver of such right, nor
in any way be deemed to affect the validity of this Agreement or any part
hereof, or the right of a party to thereafter enforce each and every provision
of this Agreement.

   12.3. Drafting. This Agreement shall not be construed more strictly against
one party than the other because it may have been drafted by one of the parties
or its counsel, each party having contributed through its counsel substantially
and materially to the negotiation and drafting thereof.

   12.4. Assignment. This Agreement and the parties' rights and obligations
hereunder shall not be assignable except with the prior written consent of the
other party, not to be unreasonably withheld, conditioned or delayed.
Notwithstanding the foregoing, Somaxon shall have the right to assign this
Agreement or its rights or obligations hereunder to any of its affiliates,
successors in interest or acquirors of all or substantially all of its assets
provided such affiliate, successor in interest or acquiror assumes all of
Somaxon's obligations under this Agreement. Furthermore, without consent,
Synchroneuron shall have the right to assign Synchroneuron's right to all or any
portion of consideration payable to Synchroneuron hereunder to any third party
other than a competitor of Somaxon (as determined in the reasonable judgment of
Somaxon), upon prior written notice to Somaxon.

   12.5. Notices. Every notice, demand, consent, request, approval, report,
offer, acceptance, certificate, or other communication which may be, or is
required to be, given or delivered under or with respect to this Agreement or by
applicable law or statute shall be in writing and shall be deemed to have been
sufficiently given for all purposes hereof upon receipt, if sent by overnight

                                       19
<PAGE>

delivery (receipt verified) to the address below, or given personally to the
address below, or at such other address within the continental United States as
any party may hereafter designate by similar notice to the other.

         For Synchroneuron:
         ------------------

         President and Chief Executive Officer
         Synchroneuron, LLC
         69 Fifer Street
         Lexington, Massachusetts 02420
         Telephone: (617) 640-2559

         For Somaxon:
         ------------

         President and Chief Executive Officer
         Somaxon Pharmaceuticals, Inc.
         12750 High Bluff Drive, Suite 310
         San Diego, California 92130-2071
         Telephone: (858) 509-3670

   12.6. Entire Agreement. This Agreement contains the entire understanding
between the parties relating to the subject matter hereof and supersedes any and
all prior agreements, understandings and arrangements, whether written or oral,
between the parties. No amendments, changes, modifications, waivers or
alterations of the terms and conditions of this Agreement shall be binding upon
either party hereto unless in writing and signed by both parties.

   12.7. Counterparts. This Agreement may be executed in counterparts and each
such counterpart shall be deemed an original hereof.

                  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

                                       20
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the Effective Date.

                                  Synchroneuron, LLC

                                  By: /s/ Steven K. Gold
                                     -----------------------------------------
                                     Name:    Steven K. Gold, M.D.
                                     Title:   Chief Executive Officer

                                  Somaxon Pharmaceuticals, Inc.

                                  By: /s/ Kenneth Cohen
                                     -----------------------------------------
                                     Name:    Kenneth Cohen
                                     Title:   President and Chief Executive
                                              Officer

                                  Solely for purposes of Sections 2.1 and 2.4:

                                  /s/ Barry S. Fogel
                                  --------------------------------------------
                                  Barry S. Fogel, M.D.

                                       21
<PAGE>

                                     Annex I

           INFORMATION REGARDING QUALIFYING AS AN ACCREDITED INVESTOR

      The issuance of the Shares will be structured as a private placement in
accordance with Regulation D promulgated under the Securities Act. To comply
with the requirements of Regulation D, Somaxon must be an "accredited investor"
(as defined in Rule 501(a) promulgated under the Securities Act).

      An "accredited investor" is defined in Rule 501(a) as, among other things:

      (1)   Any organization described in Section 501(c)(3) of the Internal
            Revenue Code, corporation, Massachusetts or similar business trust,
            or partnership, not formed for the specific purpose of acquiring the
            Shares, with total assets in excess of $5,000,000;

      (2)   Any director or executive officer of Somaxon (or any subsidiary of
            Somaxon);

      (3)   Any natural person whose individual net worth, or joint net worth
            with that person's spouse, at the time of his or her purchase
            exceeds $1,000,000;

      (4)   Any natural person who had an individual income in excess of
            $200,000 in each of the two most recent years or joint income with
            that person's spouse in excess of $300,000 in each of those years
            and has a reasonable expectation of reaching the same income level
            in the current year;

      (5)   Any trust with total assets in excess of $5,000,000, not formed for
            the specific purpose of acquiring the Shares, whose purchase is
            directed by a person with such knowledge and experience in financial
            and business matters that he or she is capable of evaluating the
            merits and risks of the prospective investment; or

      (6)   Any entity in which all of the equity owners are accredited
            investors.

<PAGE>

                           Exhibit 1.12
                           ------------
<TABLE>
<CAPTION>
U.S. PATENT NOS.            TITLE                    FILING DATE    ISSUE DATE
----------------   ------------------------------    -----------    ----------
<S>                <C>                               <C>            <C>
5,866,585          Methods of treating tardive        5/22/1997       2/2/1999
                   dyskinesia using NMDA receptor
                   antagonists
5,952,389          Methods of treating tardive        1/13/1998      9/14/1999
                   dyskinesia and other movement
                   disorders
6,057,373          Methods of treating tardive         1/4/1999       5/2/2000
                   dyskinesia and other movement
                   disorders using NMDA receptor
                   antagonists
6,294,583          Methods of treating tardive       11/18/1998      9/25/2001
                   dyskinesia and other movement
                   disorders
6,391,922          Treatment of posttraumatic         3/19/1999      5/21/2002
                   stress disorder,
                   obsessive-compulsive disorder
                   and related neuropsychiatric
                   disorders
6,689,816          Treatment of posttraumatic          3/1/2002      2/10/2004
                   stress disorder,
                   obsessive-compulsive disorder
                   and related neuropsychiatric
                   disorders
</TABLE>

<PAGE>

                                 Exhibit 4.11.2

THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF
COUNSEL, SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION
IS NOT REQUIRED.

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A RIGHT OF FIRST REFUSAL OPTION IN
FAVOR OF THE CORPORATION AND/OR ITS ASSIGNEE(S), AS PROVIDED IN THE BYLAWS OF
THE CORPORATION.

THE CORPORATION IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OF STOCK. THE
CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS A
COPY OF THE POWERS, DESIGNATIONS, PREFERENCES, AND RELATIVE RIGHTS AND
LIMITATIONS OF EACH OUTSTANDING CLASS OF STOCK OF THE CORPORATION.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]