Document:

Exhibit-10.70

 

 

DATED                                 2003

 

 

SYRATECH (HK) LIMITED

 

HLW 179 LIMITED

 

SYRATECH CORPORATION

 

 

SHARE SALE

AGREEMENT

relating
to the sale and

purchase of the whole of the

issued share capital of C J

Vander Limited

 

 

Hartley Linfoot
& Whitlam

Solicitors

Princess House

122 Queen
Street

Sheffield

S1 2DW

 

Execution Copy

20 March 2003

 

 

CONTENTS

 

	
  Description

  
	
   

  
	
  1

  	
  INTERPRETATION

  
	
   

  	
   

  
	
  2

  	
  AGREEMENT FOR SALE

  
	
   

  	
   

  
	
  3

  	
  PURCHASE CONSIDERATION

  
	
   

  	
   

  
	
  4

  	
  COMPLETION

  
	
   

  	
   

  
	
  5

  	
  WARRANTIES BY THE VENDOR

  
	
   

  	
   

  
	
  6

  	
  LIMITATIONS ON CLAIMS

  
	
   

  	
   

  
	
  7

  	
  NOTICE AND CONDUCT OF
  CLAIMS

  
	
   

  	
   

  
	
  8

  	
  PURCHASER WARRANTIES

  
	
   

  	
   

  
	
  9

  	
  RESTRICTIVE AGREEMENT

  
	
   

  	
   

  
	
  10

  	
  GUARANTEE

  
	
   

  	
   

  
	
  11

  	
  SET OFF

  
	
   

  	
   

  
	
  12

  	
  ACKNOWLEDGEMENT

  
	
   

  	
   

  
	
  13

  	
  COMMUNICATIONS

  
	
   

  	
   

  
	
  14

  	
  GENERAL

  
	
   

  	
   

  
	
  15

  	
  ENTIRE AGREEMENT

  
	
   

  	
   

  
	
  16

  	
  GOVERNING LAW AND
  JURISDICTION

  
	
   

  	
   

  
	
  SCHEDULE 1

  	
   

  
	
   

  	
   

  
	
  DETAILS OF
  THE COMPANY AND ITS SUBSIDIARIES

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  
	
   

  	
   

  
	
  WARRANTIES

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 3

  	
   

  
	
   

  	
   

  
	
  Deed of Covenant

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 4

  	
   

  
	
   

  	
   

  
	
  PART 1

  	
   

  
			

 

 

	
  PART 2

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5

  	
   

  
	
   

  	
   

  
	
  LIST OF TOOLING

  	
   

  

 

 

THIS AGREEMENT is
made
the                                           day
of                                  
2003

 

BETWEEN:

 

(1)                                  SYRATECH
HONG KONG LIMITED a company incorporated in Hong
Kong whose principal office is at Room 507, World Finance Centre, North Tower,
17 Canton Road, Tsimshatsui, Kowloon, Hong Kong (the “Vendor”);

 

(2)                                  HLW
179 LIMITED a company incorporated in England and
Wales (registered number 4605613) whose registered office is at Princess House,
122 Queen Street, Sheffield, S1 2DW (the “Purchaser”); and

 

(3)                                  SYRATECH
CORPORATION a Delaware corporation whose principal
office is at 175 McClellan Highway, East Boston, MA 02128-9114, USA (the
“Guarantor”).

 

INTRODUCTION

 

(A)                              The Vendor is the legal and beneficial owner of the whole of the
issued share capital of the Company;

 

(B)                                The Vendor has agreed to sell and the Purchaser has agreed to buy
the whole of the issued share capital of the Company on the terms and subject
to the conditions of this Agreement;

 

(C)                                The Guarantor has agreed in consideration for the Purchaser entering
into this Agreement, to guarantee the obligations of the Vendor to the
Purchaser under this Agreement in accordance with the terms set out in Clause
10.

 

WHEREBY IT IS AGREED as
follows:

 

1                                          INTERPRETATION

 

1.1                                 In
this Agreement the following words and expressions have the following meanings:

 

1

 

	
  “Business Day”

  	
   

  	
  means any day other than a Saturday or
  Sunday on which banks are normally open for business in London and New York;

  
	
   

  	
   

  	
   

  
	
  “CA”

  	
   

  	
  means the Companies Act 1985;

  
	
   

  	
   

  	
   

  
	
  “C J Vander Trade Mark Licence”

  	
   

  	
  means the licence to be dated the date of
  this Agreement in the agreed form to use the trading name and trademark “C J
  Vander” to be entered into by the Guarantor and the Purchaser at Completion;

  
	
   

  	
   

  	
   

  
	
  “Claim”

  	
   

  	
  means a claim by the Purchaser for a
  breach of Warranty or a claim by the Purchaser pursuant to the Deed of
  Covenant;

  
	
   

  	
   

  	
   

  
	
  “Companies Acts”

  	
   

  	
  means the CA, the former Companies Acts
  (within the meaning of CA s 735(1)) and the Companies Act 1989;

  
	
   

  	
   

  	
   

  
	
  “Company”

  	
   

  	
  means C J Vander Limited (company number:
  000763852), further details of which are set out in Schedule 1;

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  means completion of the sale and purchase
  of the Shares in accordance with Clause 4;

  
	
   

  	
   

  	
   

  
	
  “Completion Payment”

  	
   

  	
  means the repayment of US$3,000,000 of
  Inter Company Debt by the Company in accordance with Clause 4.6.2;

  
	
   

  	
   

  	
   

  
	
  “Deed of Covenant”

  	
   

  	
  means a deed to be dated the date of this
  Agreement in the form set out in Schedule 3 and to be entered into by the
  Vendor and the Purchaser in respect of Taxation;

  

 

2

 

	
  “Deferred Payment”

  	
   

  	
  means the payment of US$250,000 of Inter
  Company Debt by the Company in accordance with Clause 4.6.2;

  
	
   

  	
   

  	
   

  
	
  “Deferred Payment Date”

  	
   

  	
  means the date being the fifth
  anniversary of the date of this Agreement;

  
	
   

  	
   

  	
   

  
	
  “Group”

  	
   

  	
  means the Company and each Subsidiary;

  
	
   

  	
   

  	
   

  
	
  “GBP”

  	
   

  	
  means the lawful currency of the United
  Kingdom;

  
	
   

  	
   

  	
   

  
	
  “holding company” and “subsidiary”

  	
   

  	
  means holding company and subsidiary
  respectively as defined in sections 736 and 736A of the CA;

  
	
   

  	
   

  	
   

  
	
  “Hong Kong Trading Agreement”

  	
   

  	
  means the agreement to be dated the date
  of this Agreement in the agreed form to be entered into by the Vendor and
  ISCL in respect of the sourcing of goods to the Company from Hong Kong;

  
	
   

  	
   

  	
   

  
	
  “ICTA”

  	
   

  	
  means the Income and Corporation Taxes
  Act 1988;

  
	
   

  	
   

  	
   

  
	
  “International Silver Company Trade Mark
  Licence”

  	
   

  	
  means the licence to be dated the date of
  this Agreement in the agreed form to use the trading name and trade mark
  “International Silver Company” to be entered into by the Guarantor and the
  Purchaser at Completion;

  
	
   

  	
   

  	
   

  
	
  “ISCL”

  	
   

  	
  means International Silver Company
  Limited (CRN: 03768277) being a wholly owned subsidiary of the Company;

  
	
   

  	
   

  	
   

  
	
  “Inter-Company Debt”

  	
   

  	
  means without limitation any and all
  debts, liabilities (whether actual, contingent or prospective), and obligations
  howsoever arising owed by the Company or any Subsidiary to the Vendor or any
  member of the Vendor’s Group;

  

 

3

 

	
  “Last Accounts”

  	
   

  	
  means the audited balance sheet and
  audited profit and loss account of the Company for the 12 month period ended
  on the Last Accounts Date, including the auditors, and directors’ report and
  notes thereon;

  
	
   

  	
   

  	
   

  
	
  “Last Accounts Date”

  	
   

  	
  means 31 December 2002 (being the date to
  which the Last Accounts have been prepared);

  
	
   

  	
   

  	
   

  
	
  “Properties”

  	
   

  	
  means each of the properties listed in
  Schedule 4 and “Property” means any one of them;

  
	
   

  	
   

  	
   

  
	
  “Puerto Rico Trading Agreement”

  	
   

  	
  means the supply agreement to be dated
  the date of this Agreement in the agreed form to be entered into by the
  Company and Wallace International de Puerto Rico in respect of the supply of
  goods to the Company from Puerto Rico;

  
	
   

  	
   

  	
   

  
	
  “Purchaser’s Group”

  	
   

  	
  means the Purchaser, any subsidiary of
  the Purchaser, any holding company of the Purchaser, and any subsidiary of
  the holding company of the Purchaser from time to time (and for the avoidance
  of doubt, includes the Company and all the Subsidiaries after Completion);

  
	
   

  	
   

  	
   

  
	
  “Purchaser’s Solicitors”

  	
   

  	
  means Hartley Linfoot & Whitlam of
  Princess House, 122 Queen Street, Sheffield S1 2DW;

  
	
   

  	
   

  	
   

  
	
  “Security Interest”

  	
   

  	
  means any mortgage, charge, assignment or
  assignation by way of security, guarantee, indemnity, debenture,
  hypothecation, pledge, declaration of trust, lien, right of set off or
  combination of accounts, or any encumbrance or other security interest
  whatsoever, howsoever created or arising and whether monetary or not;

  

 

4

 

	
  “Set-Off Claim”

  	
   

  	
  means a Claim which may be set off in
  accordance with Clause 11 by the Purchaser against its liability to pay the
  Deferred Payment.

  
	
   

  	
   

  	
   

  
	
  “Shares”

  	
   

  	
  means the 172,489 fully paid and issued
  Ordinary Shares of £1 each of the Company, comprising the whole of the
  allotted and issued share capital of the Company;

  
	
   

  	
   

  	
   

  
	
  “Subsidiary”

  	
   

  	
  means a subsidiary of the Company listed
  in Schedule 1 and “Subsidiaries” means all such subsidiaries;

  
	
   

  	
   

  	
   

  
	
  “Taxation”

  	
   

  	
  means all forms of taxation, duties,
  imposts and levies, whatsoever or wherever or whenever imposed;

  
	
   

  	
   

  	
   

  
	
  “Trade Name Assignment”

  	
   

  	
  means an assignment to be entered into on
  Completion in the agreed form between (1) the Vendor and the Guarantor and
  (2) the Purchaser under which the Vendor and the Guarantor will assign to the
  Purchaser all such rights which the Vendor and/or the Guarantor and/or any
  member of the Vendor’s Group may have to use the name “Roberts & Belk”
  whether or not such rights are registered or registerable;

  
	
   

  	
   

  	
   

  
	
  “US$”

  	
   

  	
  means the lawful currency of the United
  States of America;

  
	
   

  	
   

  	
   

  
	
  “Vendor’s Group”

  	
   

  	
  means the Vendor, any subsidiary of the
  Vendor, any holding company of the Vendor, and any subsidiary of the holding
  company of the Vendor from time to time (but for the avoidance of doubt shall
  not include the Company or any Subsidiary);

  

 

5

 

	
  “Warranties”

  	
   

  	
  means the warranties given by the Vendor
  pursuant to Clause 5 and Schedule 2.

  

 

1.2                                 All
references in this Agreement to a statutory provision shall be construed as
including references to:

 

1.2.1                                  any
statutory modification, consolidation re-enactment (whether before or after the
date of this Agreement) for the time being in force;

 

1.2.2                                  all
statutory instruments or orders made pursuant to a statutory provision; and

 

1.2.3                                  any
statutory provisions of which a statutory provision is a consolidation, re-enactment
or modification.

 

1.3                                 A
reference in this Agreement to FRS shall be a reference to a statement of
standard accounting practice issued or adopted by the Accounting Standards
Board Limited.

 

1.4                                 Clause
headings in this Agreement are for ease of reference only and do not affect the
construction of any provision.

 

1.5                                 A
reference to a “person” includes an individual, body corporate (wherever
incorporated), unincorporated association, trust or partnership (whether or not
having separate legal personality), government, state or agency of a state, or
two or more of the foregoing.

 

1.6                                 A
reference to a document in the “agreed form” is to that document in the form
agreed and initialled for the purposes of identification by or on behalf of the
parties.

 

1.7                                 A
reference to a Clause or Schedule is to a Clause or Schedule of this Agreement,
and references to this Agreement include the Schedules.

 

1.8                                 A
reference to a document is a reference to that document as amended or modified
from time to time in writing by the mutual consent of the parties.

 

6

 

2                                          AGREEMENT FOR SALE

 

2.1                                 Subject
to the terms and conditions of this Agreement, the Vendor shall sell with full
title guarantee and free from all Security Interests and the Purchaser shall
purchase the Shares, with all rights attaching to them as at the date of this
Agreement and with effect from the date of this Agreement.

 

2.2                                 The
Vendor waives any restrictions on transfer (including pre-emption rights) which
may exist on Completion in relation to the Shares under the articles of
association of the Company or otherwise.

 

3                                          PURCHASE
CONSIDERATION

 

The
purchase consideration for the Shares shall be the sum of US $1.00.

 

4                                          COMPLETION

 

4.1                                 Completion
of the purchase of the Shares shall take place at the offices of the
Purchaser’s Solicitors or such other place as the parties may agree immediately
after the execution and delivery of this Agreement.

 

4.2                                 At
Completion, the Vendor shall deliver to the Purchaser:

 

4.2.1                                  transfers
duly completed and signed by the Vendor and all nominee Shareholders in favour
of the Purchaser or as it may direct of the Shares together with the relative
share certificates;

 

4.2.2                                  the
Deed of Covenant duly executed by the Vendor;

 

4.2.3                                  resignation
letters in the agreed form signed by each director and the secretary of the
Company and each Subsidiary acknowledging that each has no claim against the
Company or the relevant Subsidiary on any grounds whatsoever;

 

4.2.4                                  a
copy of a letter of resignation in the agreed form of the existing auditors of
the Company and each of the Subsidiaries confirming that they have no
outstanding claims of any kind and containing a

 

7

 

statement
under CA s 394(1) that there are no such circumstances as are mentioned in that
section;

 

4.2.5                                  the
Trade Name Assignment duly executed by the Vendor and the Guarantor;

 

4.2.6                                  a
counterpart of the Hong Kong Trading Agreement duly executed by the Vendor;

 

4.2.7                                  a
counterpart of the Puerto Rico Trading Agreement duly executed by Wallace
International de Puerto Rico;

 

4.2.8                                  a
counterpart of the C J Vander Trade Mark Licence duly executed by the
Guarantor;

 

4.2.9                                  a
counterpart of the ISCL Trade Mark Licence duly executed by the Guarantor.

 

4.3                                 At
Completion, to the extent that they are not already in the possession of the
Company, there shall be delivered or made available to the Purchaser:

 

4.3.1                                  the
seal and certificate of incorporation of the Company and each of the
Subsidiaries;

 

4.3.2                                  the
statutory books of the Company and each of the Subsidiaries, complete and
up-to-date;

 

4.3.3                                  the
title deeds relating to each of the Properties;

 

4.3.4                                  the
appropriate forms to amend the mandates given by the Company and each
Subsidiary to its bankers;

 

4.3.5                                  evidence
of the release and discharge of any Security Interest affecting the Company or
any Subsidiary (including without limitation the charges referred to in
Schedule 1)

 

4.4                                 At
Completion, the Vendor shall procure that the directors of the Company shall
hold a board meeting at which:

 

8

 

4.4.1                                  such
persons as the Purchaser may nominate shall be appointed as directors;

 

4.4.2                                  such
persons as the Purchaser may nominate shall be appointed as the secretary and
auditors of the Company with effect from the close of the meeting;

 

4.4.3                                  the
transfers of the Shares referred to in Clause 4.2.1 shall be approved for
registration in the Company’s books (subject to stamping);

 

4.4.4                                  the
resignations referred to in Clauses 4.2.3 and 4.2.4 shall be tendered and
accepted so as to take effect from the close of the meeting;

 

4.4.5                                  the
Puerto Rico Trading Agreement and the Trade Mark Licence, both in the agreed
form, be approved and entered into by the Company; and

 

4.4.6                                  all
other documents and matters required to be entered into or approved by the
Company in connection with Completion are so approved.

 

4.5                                 At
Completion, the Vendor shall procure that the directors of each of the
Subsidiaries shall hold a board meeting at which:

 

4.5.1                                  such
persons as the Purchaser nominates be appointed as directors, secretary and
auditors of the Subsidiary with effect from Completion;

 

4.5.2                                  the
resignations of the directors, the secretary and the auditors of each
Subsidiary be tendered and accepted so as to take effect from Completion; and

 

4.5.3                                  in
the case of ISCL only, the Hong Kong Trading Agreement in the agreed form be
approved and entered into by ISCL.

 

4.6                                 At
Completion and following completion of the matters referred to in Clauses 4.2
to 4.5 the Purchaser shall:

 

9

 

4.6.1                                  pay
to the Vendor the purchase consideration for the Shares as set out in Clause 3;
and

 

4.6.2                                  procure
the payment by the Company of the Completion Payment by reference to the
invoices listed in Part 1 of Schedule 4, issued by the relevant members of the
Vendor’s Group.

 

4.7                                 The
Purchaser covenants with the Vendor that on the Deferred Payment Date it will
procure the payment by the Company of the Deferred Payment by reference to the
invoices listed in Part 2 of Schedule 4, issued by the relevant members of the
Vendor’s Group, subject to any deductions lawfully made in accordance with
Clause 11, together with simple interest calculated thereon at a rate equal to
the base lending rate from time to time of The Royal Bank of Scotland plc to be
calculated from the date of this Agreement to the date of payment of the
Deferred Payment.

 

5                                          WARRANTIES BY THE VENDOR

 

5.1                                 The
Vendor warrants to the Purchaser that the Warranties are true and accurate at
the date of this Agreement.

 

5.2                                 The
Purchaser acknowledges that, save for the Warranties, it has not relied on any
other warranty or representation of the Vendor in entering into this Agreement.

 

5.3                                 The
Warranties are qualified by the actual knowledge of the Purchaser (which shall
be deemed to include the actual knowledge of Jim Porteous and Stephen Wilfin)
of any matter or thing which constitutes a breach of any Warranty, so that
Claims shall be limited and prevented to the extent of such actual knowledge.

 

5.4                                 Where
a Warranty is qualified by the expression “to the best of the knowledge,
information and belief of the Vendor” or “so far as the Vendor is aware”, or
any similar expression that reference shall be limited to the actual
knowledge   (without the need for any
independent investigation or verification by the Vendor) of the Vendor and the
Guarantor.

 

10

 

5.5                                 Each
of the Warranties is without prejudice to any other warranty or undertaking
and, except where expressly stated, no Clause contained in this Agreement
governs or limits the extent or application of any other Clause.

 

5.6                                 In
relation to each of the Warranties (save Warranty numbers 1.1, 1.2, 1.3, 2.1
and 2.2) any reference to “the Company” shall be deemed to be a reference to
the Company and ISCL.   Accordingly,
each of the Warranties shall be given in respect of the Company and ISCL.

 

5.7                                 The
rights and remedies of the Purchaser in respect of any breach of the Warranties
shall not be affected by completion of the purchase of the Shares by any
failure to exercise or delay in exercising any right or remedy or by any other
event or matter whatsoever, except a specific and duly authorised written
waiver or release and as specifically provided for in this Agreement.

 

5.8                                 In
the event that any Claim is brought by the Purchaser, the Vendor agrees that,
notwithstanding any other right of the Purchaser to claim damages on any basis,
the calculation of damages shall be on the basis that the aggregate of the
Completion Payment and the Deferred Payment shall be deemed for these purposes
to be the consideration paid by the Purchaser to the Vendor for the Shares.

 

6                                          LIMITATIONS ON
CLAIMS

 

6.1                                 Notwithstanding
anything in this Agreement to the contrary but subject always to Clause 6.4,
the provisions of this Clause 6 shall operate to limit the liability of the
Vendor in respect of any Claim.

 

6.2                                 Subject
to clause 6.4 the Vendor’s liability for all Claims brought for

 

6.2.1                                  a
breach of the Warranties set out at paragraphs 3, 4 and 6 of Schedule 2 of this
Agreement shall be limited to an amount equal to the Deferred Payment; and

 

6.2.2                                  a
breach of the Deed of Covenant or a breach of the Warranties set out at
paragraphs 1, 2, and 5 of Schedule 2 of this Agreement shall be 

 

11

 

limited
to an amount equal to the aggregate of the Completion Payment and the Deferred
Payment.

 

Provided
that the Vendor’s total liability for all Claims shall not exceed an amount
equal to the aggregate of the Completion Payment and the Deferred Payment.

 

6.3                                 The
Vendor shall not be liable in respect of any Claim:

 

6.3.1                                  unless
the aggregate amount of the Claim and any other Claims exceeds US$10,000 (in
which event the Vendor will be liable for the whole amount of such claims and
not only the excess over US$10,000);

 

6.3.2                                  unless
it shall have received from the Purchaser written notice containing reasonable
details of the relevant Claim on or before

 

6.3.2.1                                           the expiry of one year from Completion in respect of Claims under
the Warranties; and

 

6.3.2.2                                           the expiry of 6 years from Completion in respect of Claims under the
Deed of Covenant.

 

6.3.3                                  which
is not satisfied, settled or withdrawn within six months of the date of
notification of such Claim under Clause 6.3.2 unless proceedings in respect of
it have been commenced by being both issued and served on the Purchaser.

 

6.4                                 None
of the limitations on liability contained in Clauses 6.1 to 6.3 above shall
apply where:

 

6.4.1                                  the
fact, matter or circumstance giving rise to the Claim arises as a result of
fraud, wilful concealment or deliberate non-disclosure on the part of the
Vendor; and

 

12

 

7                                          NOTICE AND CONDUCT
OF CLAIMS

 

7.1                                 If
the Purchaser becomes aware of a matter which may give rise to a Claim or any
proceedings shall be instituted against the Purchaser which may give rise to a
Claim, the Purchaser shall as soon as reasonably practicable thereafter given
notice thereof in writing to the Vendor, stating in reasonable detail the
nature of the matter on a without prejudice basis, if practicable, and the
amount claimed.

 

7.2                                 In
the event of a Claim, the Purchaser shall, subject to being indemnified by the
Vendor against all costs and liabilities incurred in so doing:

 

7.2.1                                  take
or procure such action to be taken as the Vendor shall reasonably request to
deal with a Claim;

 

7.2.2                                  if
so required by the Vendor, maintain consultation with the Vendor on all aspects
of any proceedings in defence of a Claim; and

 

7.2.3                                  provide
the Vendor with all information reasonably requested by it in relation to such
proceedings.

 

7.3                                 In
any event, the Purchaser shall not admit liability in respect of a Claim, nor
compromise, nor settle any proceedings in defence of a Claim, without the
written consent of the Vendor (such consent not to be unreasonably withheld or
delayed).

 

7.4                                 Nothing
in this Clause 7 shall restrict or limit the Purchaser’s general obligation at
law to mitigate a loss which it may incur as a result of a matter giving rise
to a Claim.

 

8                                          PURCHASER
WARRANTIES

 

8.1                                 The
Purchaser warrants to the Seller that:

 

8.1.1                                  the
Purchaser has full power and authority without requiring the consent of any
other person, and has taken all necessary corporate or other actions, to enter
into and exercise its rights and perform its 

 

13

 

obligations under this Agreement and all other
documents to be executed by it at Completion;

 

8.1.2                                  this
Agreement and all other documents to be executed by the Purchaser will, when
executed and delivered by it, constitute lawful, valid and binding obligations
of the Purchaser in accordance with their respective terms except insofar as
enforceability may be limited by:

 

(a)                        any bankruptcy
or insolvency law or any other similar law relating to or affecting a
creditor’s rights; and

 

(b)                       any law
relating to the availability of specific performance, injunctive relief or
other equitable remedies (regardless of whether such enforceability is sought
in equity or at law);

 

8.1.3                                  in
acquiring the Shares the Purchaser is acting as principal and not as agent or
broker for any other person; and

 

8.1.4                                  the
Purchaser is not aware that it has any Claim for which, taking into account
limitations in Clause 6, the Vendor could have a liability to pay.

 

9                                          RESTRICTIVE
AGREEMENT

 

9.1                                 For
the purpose of assuring to the Purchaser the full benefit of the business and
goodwill of the Company, the Vendor undertakes, by way of further consideration
for the obligations of the Purchaser under this Agreement as separate and
independent agreements that it will, and undertakes to procure that each member
of the Vendor’s Group will:

 

9.1.1                                  not
at any time following Completion use or disclose to any person and shall use
its best endeavours to prevent the publication or disclosure of, any
confidential information concerning the business, accounts or finances of the
Company or the Subsidiaries or any of the Group’s clients’ or customers’
transactions or affairs of which it has knowledge, save as required pursuant to
any contract between the 

 

14

 

Vendor, and any of its bankers or their
affiliates or as required by applicable law or regulation;

 

9.1.2                                  not
at anytime for the period of one (1) year following Completion solicit or
endeavour to entice away from the Company any person who to the Vendor’s
knowledge is, or has during the past year been, an employee of the Group
provided that any general advertisement or solicitation which is not directed
at any one individual shall not be deemed to give rise to a breach of the
foregoing restrictions.

 

9.1.3                                  not
at anytime during the period ending five (5) years after Completion, either
alone or jointly with or as manager, agent for or employee of any person,
directly or indirectly carry on or be engaged concerned or interested in the
sale of silverware products marketed, distributed or sold under the C.J. Vander
trademark in the United Kingdom and Oman, Kuwait, Bahrain, Qatar, United Arab
Emirates, Saudi Arabia, Egypt or Lebanon. 
Notwithstanding the foregoing, Vendor and Vendor’s Group shall not be
precluded from the sale of silverware products in the territories stated herein
provided such products are marketed and sold under another trademark..

 

9.1.4                                  Not
at any time during the period of 5 years after Completion in the United
Kingdom, and 2 years after Completion in any member state of the European
Union either alone or jointly with, or as manager, agent for, or employee of
any person directly or indirectly carry on or be engaged concerned or
interested in the sale of any products under the trade mark “Elements”.  Notwithstanding the foregoing, Purchaser
acknowledges that it has been made aware that unrelated third parties may have
used, or may currently be using the trademark “Elements” in the United Kingdom
and the European Union and may have rights superior to those of Vendor or
Vendor’s affiliates.

 

10                                    GUARANTEE

 

10.1                           In
consideration for the Purchaser entering into this Agreement, the Guarantor as
principal obligor and not merely as surety, irrevocably and unconditionally

 

15

 

undertakes
and guarantees to the Purchaser the due and punctual performance by the Vendor
of all the obligations and liabilities of the Vendor set out in this Agreement
and in the Deed of Covenant (the “Guaranteed Obligations”) and further
undertakes that if default should be made in the performance of the same, the
Guarantor shall, subject to the limitation in Clause 10.4, forthwith on demand
pay to the Purchaser in cash an amount equal to, or procure the discharge of,
such of the Guaranteed Obligations as shall not have been paid or discharged
when due by the Vendor as if the Guarantor was the principal obligor in respect
thereof, and further or in the alternative pay on demand such sum as shall be
sufficient to indemnify the Purchaser in respect of such default and all losses
incurred by or claimed against the Purchaser or which the Purchaser may suffer
directly or indirectly by reason of such default.

 

10.2                           This
guarantee shall be a continuing guarantee and accordingly shall remain in
operation until all the Guaranteed Obligations have been paid or discharged in
full.

 

10.3                           Any of the
Guaranteed Obligations which may not be recoverable from the Vendor whether by
reason of any legal limitations or any other fact or circumstance whatsoever,
and whether known to the Purchaser or not, shall nevertheless be recoverable
from the Guarantor as sole debtor.

 

10.4                           Notwithstanding
any other provisions of this Clause 10, the Guarantor’s liability under this
Clause 10 for any Guaranteed Obligations shall not exceed the liability of the
Vendor for its breach of the Guaranteed Obligation.

 

11                                    SET OFF

 

11.1                           The aggregate amount of the Set-Off Claims shall not exceed the
amount of the Deferred Payment.

 

11.2                           Subsequent to the notification provisions in Clause 6.3.2, if the
Purchaser shall notify the Vendor in writing of any Set-Off Claim or Set-Off
Claims, then the amount of the Deferred Payment shall be reduced by the amount
of such Set-Off Claim, or if the Set Off Claim
has been settled or resolved prior to the 

 

16

 

Deferred Payment Date by the amount
determined to be payable upon the settlement or resolution of such Set-Off
Claim, and

 

11.2.1                            for the
avoidance of doubt, once the aggregate amount of the Set-Off Claims reaches
US$250,000 there will be no more Set-Off Claims.

 

11.3                           For the purposes of clause 11.2:

 

11.3.1                            a Set-Off Claim shall be deemed to be settled upon the Vendor and
the Purchaser agreeing a final settlement thereof and a Set-Off Claim shall be
deemed to be resolved upon an order or decree of a Court of competent
jurisdiction being given in proceedings in respect of the Set-Off Claim and
such order or decree being final and not or no longer appealable; and

 

11.3.2                            the amount determined to be payable upon the settlement or
resolution of the Set-Off Claim shall be the amount agreed by the Vendor and the
Purchaser under any such settlement or determined by any such order or decree
(as the case may be) to be payable by the Vendor or the relevant member of the
Vendor’s Group in respect thereof.

 

11.4

 

11.4.1                            On the Deferred Payment Date, a sum equal to the amount of any such
claim which shall not by that date have been settled or resolved but in respect
of which a reduction in the Deferred Payment shall have been made shall be
placed by the Purchaser in a separate deposit account with HSBC Bank plc in the
joint names of the Vendor and the Purchaser until such time as that Set-Off
Claim shall have been settled or resolved when the sum so deposited shall to
the extent of the amount (if any) determined to be payable upon the settlement
or resolution of the Set-Off Claim be released to the Purchaser in or towards
satisfaction of the liability of the Vendor or the relevant member of the
Vendor’s Group in respect of the Set-Off Claim and to the extent of the balance
(if any) be released to the Vendor and the 

 

17

 

amount
of any interest earned on such sum shall likewise be released to the Purchaser
or the Vendor or apportioned between them in the same proportions as the
capital sum.

 

11.5                           The Vendor and the Purchaser shall use their best endeavours to
ensure that all such Set-Off Claims are settled or resolved with all reasonable
speed and diligence.

 

11.6                           On the Deferred Payment Date, a sum equal to the amount of the
Deferred Payment, less any amounts deducted in accordance with Clause 11.2,
shall be paid to the Vendor by the Purchaser.

 

11.7                           The
satisfaction of any Set-Off Claim by reduction of the amount of the Deferred
Payment pursuant to this Clause shall in no way prejudice or affect any other
rights or remedies of the Purchaser or the Company for the purpose of
recovering any amount due to the Purchaser or the Company which is not
satisfied by such means.

 

12                                    ACKNOWLEDGEMENT

 

The Vendor acknowledges that neither the
Vendor nor any member of the Vendor’s Group holds any legal or beneficial title
to or interest in those items of plant, equipment and tooling (“the Tooling”)
listed in Schedule 5 and that neither the Vendor, nor any member of the
Vendor’s Group has any claim whatsoever over the Tooling, and to the extent
that any such interest or claim be found to exist the Vendor hereby waives, and
undertakes to procure the waiver by any member of the Vendor’s Group, of any
such interest or claim.

 

13                                    COMMUNICATIONS

 

13.1                           Any notice
to be given under this Agreement shall be in writing and delivered by hand or
by first class recorded delivery post or by facsimile letter addressed and sent
to the party to be served as follows:-

 

13.1.1                            In the
case of the Vendor and the Guarantor at the following:

 

US address:                                                                      Syratech Corporation

 

18

 

175
McClellan Highway

East Boston, MA  02128

facsimile
number:                                          617-568-8178

for the attention of:                               Gregory W. Hunt

Vice President and Chief Financial Officer

with a copy to:                                                       Faye A. Florence

Vice President and General Counsel

Syratech Corporation

175 McClellan Highway

East Boston, MA  02128

facsimile number:                                          617-568-1361

 

13.1.2                            In the
case of the Purchaser at the following:

 

address:                                                                                         Vander House, Starnhill Close, Ecclesfield

Sheffield S35 9TG

facsimile number:                                          0114 257 7662

for the
attention of:                               Stephen Wilfin or such other address or in the United Kingdom or fax
number as the relevant party notifies to the other party, which change of
address shall only take effect if delivered and received in accordance with
this Clause.

 

13.2                           Notice
delivered by hand shall be deemed to have been served at the time of actual
delivery.  Notice sent by first class
recorded delivery post shall be deemed to have been served at the expiry of two
Business Days after posting.  Notices
sent by facsimile shall be deemed to have been served on production of a
transmission report from the machine which sent the facsimile indicating that
the facsimile was sent in its entirety to the facsimile number of the
recipient, save that if such notice of communication is received at the end of
normal working hours (and “normal working hours” shall be deemed to be
8.30 am to 5.30 pm on any Business Day in the country of the
recipient), such notice or communication shall be deemed to have been received
on the next Business Day.

 

14                                    GENERAL

 

14.1                           If any
provision of this Agreement is or becomes illegal, invalid or unenforceable
under the law of any jurisdiction, that shall not affect or impair:

 

19

 

14.1.1                            the
legality, validity or enforceability in that jurisdiction of any other
provision of this Agreement; or

 

14.1.2                            the
legality, validity or enforceability under the law of any other jurisdiction of
that or any other provision of this Agreement.

 

14.2                           If any
party defaults in the payment when due of any sum payable under this Agreement
or any agreement or document entered into pursuant to this Agreement (whether
determined by agreement or pursuant to an order of a court or otherwise) its
liability shall be increased to include interest on such sum from the date when
such payment is due up to and including the date of actual payment (after as
well as before judgment) at an annual rate of 4 per cent above the base rate
from time to time of HSBC Bank Plc. 
Such interest shall accrue from day to day.

 

14.3                           Save as
expressly provided for in the provisions of Clause 14.3, a person who is not a
party to this Agreement shall have no right to enforce this Agreement or any
agreement or document entered into pursuant to this Agreement pursuant to the
Contracts (Rights of Third Parties) Act 1999 but this does not affect any right
or remedy of a third party which exists or is available apart from pursuant to
such Act.

 

14.4                           No party
may assign any of its rights under it or purport to do any of the same nor
sub-contract any or all of its obligations under this Agreement without the
prior written consent of all of the other parties, such consent not to be
unreasonably withheld or delayed, except that the Purchaser and the Vendor
shall each be entitled to assign its respective rights under this Agreement
and/or any agreement or document entered into pursuant to this Agreement to any
member of the Purchaser’s Group or the Vendor’s Group respectively provided that
the Purchaser and the Vendor shall procure that any such company to whom it
assigns any of its rights under this Clause shall re-assign all such rights to
the Purchaser or the Vendor immediately prior to its ceasing to be a member of
the Purchaser’s Group or the Vendor’s Group respectively.

 

14.5                           This
Agreement may be executed in any number of counterparts and by the different
parties on separate counterparts (which may be facsimile copies) but 

 

20

 

shall not
take effect until each party has executed at least one counterpart.  Each counterpart shall constitute an
original but all the counterparts together shall constitute a single agreement.

 

14.6                           Any
variation of this Agreement must be in writing and signed by each party or, in
the case of a body corporate, a duly authorised officer or representative of
such party.

 

14.7                           Save as
otherwise expressly stated in this Agreement, each party shall pay its own
costs in connection with the negotiation, preparation and implementation of
this Agreement and all agreements ancillary to it.

 

14.8                           A delay in
exercising, or failure to exercise, any right or remedy under this Agreement
does not constitute a waiver of such right or remedy or other rights or
remedies nor shall either operate so as to bar the exercise or enforcement
thereof.

 

14.9                           Except
where this Agreement expressly provides otherwise, the rights, powers and
remedies provided in this Agreement are accumulative and not exclusive of any
rights and remedies provided by law and no single or partial exercise of any
right or remedy under this Agreement or provided by law shall hinder or prevent
further exercise of such or other rights or remedies.

 

14.10                     No announcement
or public statement concerning the existence, subject matter or any term of
this Agreement shall be made by or on behalf of any party without the prior
written approval of the other parties, such approval not to be unreasonably
withheld or delayed, provided that this Clause 14.9 shall not apply to any announcement
or public statement by any party required by law, or the rules of any
regulatory or governmental body to which such party is subject, including the
rules of any stock exchange on which any securities of the relevant party are
listed, in which case the party concerned shall make all reasonable attempts to
agree the contents of such announcement or statement with the other parties
before it is made.

 

21

 

15                                    ENTIRE AGREEMENT

 

15.1                           This
Agreement and all other agreements referred to herein constitute the entire
agreement of the parties and supersede all prior arrangements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof.

 

15.2                           Each of the
parties acknowledges and agrees that:

 

15.2.1                            it does
not enter into this Agreement and any other document referred to herein on the
basis of and does not rely, and has not relied, upon (nor shall it make any
claim in respect of), any statement or representation (whether negligent or
innocent) or warranty or other provision (in any case whether oral, written,
express or implied) made, given or agreed to by any person (whether a party to
this Agreement or any other document referred to herein or not) except those expressly
set out or referred to in this Agreement and any other document referred to
herein or entered into in connection herewith, and each of the parties waives
all rights and remedies which, but for this Clause, might otherwise be
available to it in respect of any such statement or representation or warranty
or other provision; and

 

15.2.2                            this
Clause 15.2 shall not apply to any statement, representation or warranty made
fraudulently or to any provision of this Agreement or any other document
referred to herein which was induced by, or otherwise entered into as a result
of, fraud, for which the remedies shall be all those available under the law
governing this Agreement.

 

16                                    GOVERNING LAW AND JURISDICTION

 

This
Agreement shall be governed by and construed in accordance with the laws of
England, and the parties agree to submit to the non-exclusive jurisdiction of
the English courts.

 

IN WITNESS whereof the
parties have executed this deed the day and year first before written.

 

22

 

SCHEDULE 1

 

DETAILS OF THE COMPANY AND ITS SUBSIDIARIES

 

C J Vander Limited

 

	
  Company
  Number:

  	
   

  	
  00763852

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  11 June 1963

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £175,000
  divided into 175,000 Ordinary Shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  £172,489

  
	
   

  	
   

  	
   

  
	
  Registered
  office:

  	
   

  	
  Dunstan
  House, 14A St Cross Street, London, EC1N 8XD

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  Robert Meers

  Gregory W. Hunt

  
	
   

  	
   

  	
   

  
	
  Secretary:

  	
   

  	
  Clifford
  Chance Secretaries Limited

  
	
   

  	
   

  	
   

  
	
  Charges:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Trading

  

 

International Silver Company Limited

 

	
  Company
  Number:

  	
   

  	
  03768277

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  11 May 1999

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £1,000
  divided into 1,000 Ordinary Shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  £1,000

  
	
   

  	
   

  	
   

  
	
  Registered
  office:   

  	
   

  	
  Vander
  House, Starnhill Close, Ecclesfield, Sheffield, S35 9TG

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  
	
   

  	
   

  	
   

  
	
  Secretary:

  	
   

  	
  Roger Dyson

  

 

23

 

	
  Charges:                                                 

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Trading

  

 

C J Vander (Antiques) Limited

 

	
  Company
  Number:

  	
   

  	
  00369064

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  1 September
  1941

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £1,000
  divided into 1,000 Shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  £1,000

  
	
   

  	
   

  	
   

  
	
  Registered
  office:   

  	
   

  	
  Dunstan
  House, 14A St Cross Street, London, EC1N 8XD

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  
	
   

  	
   

  	
   

  
	
  Secretary:

  	
   

  	
  Clifford
  Chance Secretaries Limited

  
	
   

  	
   

  	
   

  
	
  Charges:                                                 

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Active

  

 

Modern Silverware Products Limited

 

	
  Company
  Number:

  	
   

  	
  00446346

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  9 December
  1947

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £2,000
  divided into 2,000 Ordinary Shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  £2,000

  
	
   

  	
   

  	
   

  
	
  Registered
  office:   

  	
   

  	
  Dunstan
  House, 14A St Cross Street, London, EC1N 8XD

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  

 

24

 

	
  Secretary:

  	
   

  	
  Clifford
  Chance Secretaries Limited

  
	
   

  	
   

  	
   

  
	
  Charges:                                                 

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Active

  

 

Vander Properties Limited

 

	
  Company
  Number:

  	
   

  	
  00821994

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  6 October
  1964

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £100 divided
  into 100 Shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  £100

  
	
   

  	
   

  	
   

  
	
  Registered
  office:   

  	
   

  	
  Dunstan
  House, 14A St Cross Street, London, EC1N 8XD

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  
	
   

  	
   

  	
   

  
	
  Secretary:

  	
   

  	
  Clifford
  Chance Secretaries Limited

  
	
   

  	
   

  	
   

  
	
  Charges:                                                 

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Active

  

 

John Biggin Limited

 

	
  Company
  Number:

  	
   

  	
  00355275

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  22 July 1939

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £20,000
  divided into 80,000 ordinary shares of 1p each and 19,200 2.0% preference
  shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  19,200
  ordinary shares of 1p each

  19,200 2.0% preference shares of £1 each

  

 

25

 

	
  Registered
  office:   

  	
   

  	
  Dunstan
  House, 14A St Cross Street, London, EC1N 8XD

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  
	
   

  	
   

  	
   

  
	
  Secretary:

  	
   

  	
  Clifford
  Chance Secretaries Limited

  
	
   

  	
   

  	
   

  
	
  Charges:                                                 

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Active

  

 

Roberts and Belk Limited

 

	
  Company
  Number:

  	
   

  	
  00071758

  
	
   

  	
   

  	
   

  
	
  Date of
  incorporation:

  	
   

  	
  31 October
  1901

  
	
   

  	
   

  	
   

  
	
  Share
  Capital:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorised

  	
   

  	
  £4,000
  divided into Ordinary Shares of £10 each

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issued

  	
   

  	
  £23,440

  
	
   

  	
   

  	
   

  
	
  Registered
  office:   

  	
   

  	
  Dunstan
  House, 14A St Cross Street, London, EC1N 8XD

  
	
   

  	
   

  	
   

  
	
  Directors:

  	
   

  	
  Leonard
  Florence

  
	
   

  	
   

  	
   

  
	
  Secretary:

  	
   

  	
  Clifford
  Chance Secretaries Limited

  
	
   

  	
   

  	
   

  
	
  Charges:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Status:

  	
   

  	
  Active

  

 

26

 

SCHEDULE 2

 

WARRANTIES

 

1                                          Shares
and Share Capital

 

1.1                                 The
Vendor is the sole legal and beneficial owner of the Shares and such Shares
constitute all of the issued or allotted shares in the capital of the Company.

 

1.2                                 All
of the Shares have been validly issued and allotted and are fully paid or
credited as fully paid.

 

1.3                                 The
Shares are free from any Security Interest and there is no agreement or
commitment outstanding to create a Security Interest in relation to the Shares
or any unissued shares in the Company in favour of any other person, and no
claim has been made by any person to be entitled to any.

 

1.4                                 Save
as provided for in this Agreement, there is no agreement or arrangement in
force (whether conditional or not) which requires the present or future
creation, allotment, issue, sale, transfer, redemption or repayment of any
share capital or any instrument convertible or exchangeable into share capital
of a Group Company, or grants or requires the grant to any person of the right
to call for the creation, allotment, issue, sale, transfer, redemption or
repayment of any share capital or any instrument convertible into or
exchangeable for any share capital of a Group Company.

 

2                                          Capacity
and Authority of the Sellers

 

2.1                                 The
Vendor has full power and authority without requiring the consent of any other
person, and has taken all necessary corporate or other actions, to enter into
and exercise its rights and perform its obligations under this Agreement and
all other documents to be executed by it at Completion.

 

27

 

This
Agreement and all other documents to be executed by the Vendor will, when
executed and delivered by it, constitute lawful, valid and binding obligations
of the Vendor in accordance with their respective terms.

 

3.                                       Financial
matters

 

3.1                                     Neither the Vendor nor any member of the Vendor’s Group, has entered
into any material capital commitments on behalf of the Company which were
outstanding at the Last Accounts Date and neither the Vendor, nor any member of
the Vendor’s Group, has on behalf of the Company, since then, incurred or
agreed to incur any material capital expenditure or commitments or disposed of
any material capital assets.

 

3.2                                     Since the Last Accounts Date the Company has not paid or declared
any dividend or made any other payment which is, or is treated as, a
distribution for the purposes of ICTA Part VI Chapter II.

 

3.3                                     So far as the Vendor is aware the Company has not, since the Last
Accounts Date, repaid, or become liable to repay, any indebtedness in advance
of its stated maturity.

 

3.4                                     So far as the Vendor is aware the Company has no liabilities
(including contingent liabilities) which are outstanding other than those
liabilities disclosed in the Last Accounts or incurred, in the ordinary and
normal course of trading, since the Last Accounts Date.

 

4.                                       Trading matters

 

4.1                                 So far as the Vendor is aware, since the Last Accounts Date the
business of the

 

Company has been continued in the ordinary and normal
course.

 

4.2                                 So far as the Vendor is aware, the Company is not engaged in any
litigation or arbitration proceedings, as plaintiff or defendant and there are
no proceedings pending or threatened, either by or against the Company.

 

28

 

4.3                                 So far as the Vendor is aware, there is no dispute with any revenue
or other official department in the United Kingdom or elsewhere, in relation to
the affairs of the Company.

 

4.4                                 So far as the Vendor is aware, the Company has conducted and is
conducting its business in all respects in accordance with all applicable laws
and regulations, whether of the United Kingdom or elsewhere.

 

4.5                                 So far as the Vendor is aware there are no claims pending or
threatened or arising against the Company by an employee, consultant or other
third party.

 

5                                          Insolvency

 

5.1                                 The
Company is not unable to pay its debts within the meaning of section 123
Insolvency Act 1986.

 

5.2                                 So
far as the Vendor is aware, no order has been made or petition presented or
meeting convened for the purpose of considering a resolution for the winding up
of the Company nor has any such resolution been passed and no petition has been
presented for an administration order to be made in relation to the Company and
no receiver (including any administrative receiver) has been appointed in
respect of the whole or any part of any of the property, assets or undertaking
of the Company.

 

5.3                                 So
far as the Vendor is aware, no composition in satisfaction of the debts of the
Company or scheme of arrangement of its affairs or compromise or arrangement
between it and its creditors and/or members or any class of its creditors
and/or members has been proposed, sanctioned or approved.

 

5.4                                 So
far as the Vendor is aware, no distress, execution or other process been levied
or applied for in respect of the whole or any part of any of the property,
assets or undertaking of the Company.

 

29

 

6.                                       Insurance

 

So far
as the Vendor is aware, the Company has maintained insurance in respect of all
identified material insurable interests in respect of all assets and business
including without limitation against accident, damage, injury and third party
loss, (including product liability), and has paid all premiums on such
insurance.

 

30

 

SCHEDULE 3

 

Deed of
Covenant

 

THIS AGREEMENT is
made the
              day
of
                            2003

 

BETWEEN:

 

(1)                                  SYRATECH HONG KONG LIMITED whose
principal office is at Room 507, World Finance Centre, North Tower, 17 Canton
Road, Tsimshatsui, Kowloon, Hong Kong (the “Covenantor”); and

 

(2)                                  HLW 179 LIMITED (registered no: 4605613) whose registered office is at Princess
House, 122 Queen Street, Sheffield, S1 2DW (the “Purchaser”).

 

WHEREAS:

 

This deed is
entered into pursuant to an agreement (the “Agreement”) made between the
Covenantor (1) and the Purchaser (2) relating to the sale of all the share
capital of C J Vander Limited (CRN: 000763852) (the “Company”).

 

WHEREBY IT IS AGREED as follows:

 

1                                          Definitions

 

Words and expressions defined in the Agreement shall,
except where otherwise provided have the same meanings in this deed.

 

2                                          Covenant

 

2.1                                 Subject
as provided below, the Covenantor covenants to pay to the Purchaser an amount
equal to:

 

2.1.1                                  any
liability for Taxation which arises wholly or partly in respect of, or in
consequence of, any acts, omissions or transactions occurring or entered into
before, the date of this deed or which results from, or is calculated by reference
to, any income, profits or gains earned, received or accrued, or deemed to have
been earned, received or 

 

31

 

accrued,
before that date but so that this Deed shall not apply to any Taxation arising
as a result of the entering into of the Agreement;

 

2.1.2                                  any
resultants costs; and

 

2.1.3                                  any
Taxation payable by the Company or any of its subsidiaries on or in respect of
any payment made under this deed (which payment shall for the avoidance of
doubt, not include any payment in respect of Taxation arising as a result of
the entering into of the Agreement);

 

2.1.4                                  the
Covenantor covenants to pay to the Purchaser an amount equal to the PAYE and
National Insurance Contributions payable by the Company in respect of the
employment or directorships of any US domiciled directors of the Company.

 

3                                          Exclusions

 

3.1                                 The
covenant in clause 2.1 shall not apply to any liability:

 

3.1.1                                  to
the extent that either an appropriate provision or reserve in respect of the
liability was made in the Last Accounts or the liability was specifically
referred to and quantified in the notes to those Accounts;

 

3.1.2                                  for
which the Company or any of its subsidiaries is, or may become, liable wholly,
or primarily, as a result of transactions in the normal course of its business
after the Last Accounts Date;

 

3.1.3                                  to
the extent that the liability arises as a result only of the appropriate
provision or reserve in the Last Accounts being insufficient by reason of any
increase in rates of Taxation made after the date of the Agreement.

 

3.1.4                                  To
the extent that the Taxation in question arose in a financial period of the
Company in respect of which Mr. Stephen Wilfin signed the corporation tax
computations [(including but not limited to fiscal years 2000, 2001 and 2002)]
which were [or are to be] submitted to HM Inland Revenue on behalf of the
Company.

 

32

 

4                                          Conduct of Claims

 

4.1                                 The
Company shall notify the Covenantor in writing as soon as reasonably
practicable of any information which comes to its notice, whereby it appears
that the Covenantor is, or may become, liable under this deed.

 

4.2                                 Subject
to clause 4.3, the Company shall, at the expense of the Covenantor, take such
action to contest any claim which could give rise to a liability under this
deed, as the Covenantor, may reasonably require.

 

4.3                                 The
Covenantor shall, at the request of the Company, provide, to the reasonable
satisfaction of the Company, security or indemnities, or both, in respect of
all the costs and expenses of any action taken pursuant to clause 4.2.

 

5                                          General

 

The
provisions of the Agreement relating to communications shall apply to any
communication to be given under, or in connection with, this deed.

 

33

 

SCHEDULE 4

 

PART 1

 

Details of
invoices to be paid by way of Completion Payment

 

PART 2

 

Details of
invoices to be paid by way of Deferred Payment

 

34

 

SCHEDULE 5

 

LIST OF
TOOLING

 

	
   

  	
   

  	
  No
  of Models

  	
   

  	
  Model
  Reference No

  
	
  6” Snipe

  	
   

  	
  1 complete

  	
   

  	
  CMB-1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8” Snipe

  	
   

  	
  1 complete

  	
   

  	
  CMB-2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Red Grouse
  Male

  	
   

  	
  1 complete

  	
   

  	
  CMB-3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Red Grouse
  Female

  	
   

  	
  1 complete

  	
   

  	
  CMB-4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Large Swan

  	
   

  	
  1 complete

  	
   

  	
  CMB-5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Medium Swan

  	
   

  	
  1 complete

  	
   

  	
  CMB-6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Small Swan

  	
   

  	
  1 complete

  	
   

  	
  CMB-7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12” Pheasant
  Male

  	
   

  	
  1 complete

  	
   

  	
  CMB-8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12” Pheasant
  Female

  	
   

  	
  1 complete

  	
   

  	
  CMB-9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10” Pheasant
  Male

  	
   

  	
  1 complete

  	
   

  	
  CMB-10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10” Pheasant
  Female

  	
   

  	
  1 complete

  	
   

  	
  CMB-11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6” Pheasant Male

  	
   

  	
  1 complete

  	
   

  	
  CMB-12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6” Pheasant
  Female

  	
   

  	
  1 complete

  	
   

  	
  CMB-13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Galloping
  Horse

  	
   

  	
  1 complete

  	
   

  	
  CMB-14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Running
  Horse

  	
   

  	
  1 complete

  	
   

  	
  CMB-15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kingfisher

  	
   

  	
  1 complete

  	
   

  	
  CMB-16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Running Fox

  	
   

  	
  1 complete

  	
   

  	
  CMB-17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stalking Fox

  	
   

  	
  1 complete

  	
   

  	
  CMB-18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Highland
  Stag

  	
   

  	
  1 complete

  	
   

  	
  CMB-19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  19 sectional models

  	
   

  	
   

  

 

35

 

	
  EXECUTED AS A DEED by

  	
  )

  	
   

  
	
  SYRATECH HONG KONG LIMITED

  	
  )

  	
   

  
	
  by the signatures of:

  	
  )

  	
  /s/Melvin L. Levine

  	
   

  
	
   

  	
  )

  	
  Director 
  

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
  /s/Leonard Florence  

  	
   

  
	
   

  	
  )

  	
  Director / Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED by
  the above

  	
  )

  	
   

  
	
  named HLW 179 LIMITED by the

  	
  )

  	
   

  
	
  signatures of:

  	
  )

  	
  /s/ 
  Anthony James Porteous  

  	
   

  
	
   

  	
  )

  	
  Director 
  

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
  /s/Stephen Wilfin  

  	
   

  
	
   

  	
  )

  	
  Director / Secretary

  
	
   

  	
   

  	
   

  
	
  EXECUTED AS A DEED by
  the above 

  	
  )

  	
   

  
	
  named SYRATECH CORPORATION 

  	
  )

  	
   

  
	
  by the signatures of:

  	
  )

  	
  /s/ 
  Gregory W. Hunt

  	
   

  
	
   

  	
  )

  	
  Director

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
  /s/ 
  Faye A. Florence

  	
   

  
	
   

  	
  )

  	
  Director / Secretary

  

 

36Exhibit 10.27

 

CONFIDENTIAL COMMERCIAL
AGREEMENT

 

CLINICAL TRIAL SERVICES MASTER AGREEMENT

 

THIS CLINICAL TRIAL SERVICES MASTER AGREEMENT
(the “Agreement”) is entered into as of March 21,2003 (the “Effective Date”),
by and between (i) JSW Research, whose offices are located at
Rankengasse 28, Graz A-8020 Austria (together with its agents and/or
affiliates, “JSW”), and (ii) Axonyx, whose offices are located at
Bilderdijkstraat 9, 2311 XD Leiden, The Netherlands

 

WHEREAS, Axonyx is engaged in research,
development and commercialization of human pharmaceutical products;

 

WHEREAS, JSW is a contract clinical research
organization with experience and expertise in planning, overseeing, managing
and monitoring human clinical trials as well as other related services;

 

WHEREAS, Axonyx desires to engage JSW to
provide certain clinical trial management and other services, and JSW desires
to provide such services to Axonyx, subject to the terms and conditions of this
Agreement.

 

NOW THEREFORE, in consideration of the foregoing
and the mutual representations, warranties and covenants contained in this
Agreement and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

1.
SERVICES TO BE RENDERED

 

Axonyx hereby engages JSW to provide, and JSW
hereby agrees to provide, the clinical trial management and other services
known as ‘Scope of Work’ and described in Appendix I, in accordance with the
terms and conditions set forth in this Agreement for the clinical trial (the
“Clinical Trial”) entitled ‘A Randomized, double-blind, placebo-controlled
trial to evaluate the safety and efficacy of Phenserine-tartrate in patients
with mild to moderate probably Alzheimer’s disease — Phenserine/APP and Aß’. In
summary, the Clinical Trial is designed to enroll at least 75 patients in an
effort to obtain 65 who are evaluable, i.e. have completed the Clinical Trial
in its entirety.

 

2.
CLINICAL TRIAL DEVELOPMENT ACTIVITIES

 

The parties shall follow the procedures and
have responsibility for performing their respective obligations set forth below
with respect to the Clinical Trial.

 

 

2.1
Protocol

 

The protocol associated with the clinical
research activities for the product, Axonyx (the “Product”) involved in the
Clinical Program is attached hereto in Appendix II. The Protocol describes the
plans for conducting the Clinical Trial. The Clinical Trial will be conducted
per the attached protocol document.

 

2.2
Regulatory Matters

 

Axonyx shall be the regulatory sponsor of the
Clinical Trial under the U.S. Code of Federal Regulations and will hold any
IND. Axonyx shall, in consultation with the FDA, determine whether the
development of any Product will be made under an existing IND or a new IND.
Axonyx shall prepare and file any new IND or IND amendment with the FDA. Axonyx
shall prepare any subsequent amendments to the IND. Axonyx will be responsible
for all written and oral contact with the FDA with respect to the IND and any
other information required under FDA regulations, including without limitation
21 CFR § 312, including, but not limited to IND safety reports and annual
reports required to be submitted by Axonyx to the FDA. JSW shall provide to
Axonyx all information, and execute all documents, requested by Axonyx that
are necessary for the transfer by Axonyx, the regulatory sponsor, to JSW of
certain obligations, defined in Appendix 2, under FDA regulations, including
without limitation 21 CFR § 312.52 “Transfer of Obligations to a Contract
Research Organization.”

 

Notwithstanding anything
contained in this Agreement to the contrary, JSW shall not initiate or
participate in any communications with the FDA concerning the subject matter
hereof unless required by law or requested to do so by Axonyx and then only
after prior consultation with Axonyx.

 

2.3
Clinical Sites; Investigators

 

Prior to the commencement of the Clinical
Trial, JSW shall provide to Axonyx for its review a list of proposed clinical
sites and investigators to perform the Clinical Trial, selected by JSW based on
the expertise of the investigators in the therapeutic area covered by the
Clinical Trial and the ability of the clinical sites and investigators to
recruit the required patient population for rapid enrollment in the Clinical
Trial. JSW shall review FDA’s listings of debarred, disqualified and restricted
investigators and clinical sites, and shall not propose any clinical sites or
investigators appearing in such listings. At Axonyx’s request, JSW shall
provide additional information and documentation on the clinical sites and
investigators proposed by JSW, and Axonyx may identify additional clinical
sites and investigators for inclusion in the Clinical Trial. JSW shall not
propose any investigators or clinical sites that have been listed by FDA as
debarred, disqualified, restricted, or required to make assurances concerning
their use of investigational products. Axonyx may also make visits to any
clinical site for purposes of independently evaluating the acceptability of
such clinical site.

 

2

 

2.4
Clinical Trial Drug Supply and Shipment

 

JSW shall handle Clinical Trial Product
distribution to the clinical sites. No Clinical Trial Product shall be shipped
to any clinical site without appropriate IRB approval for study conduct and
other documentation required under applicable regulatory requirements. JSW
shall also assure the return of all unused supplies of the Product from each
individual investigator whose participation in the investigation is
discontinued or terminated, or assure compliance with an alternative
disposition of unused supplies of the Product approved by Axonyx. JSW shall
maintain adequate records showing the receipt, shipment, return or other
disposition of the Product.

 

2.5 Clinical Safety Reports

 

Within twenty-four (24) hours of the
notification of occurrence of a serious adverse experience, as defined under
FDA regulations, including without limitation 21 CFR § 312.32 (“Serious Adverse
Experience”), relating to the Clinical Trial, JSW shall inform Axonyx of such
occurrence. At a minimum, serious adverse event reports shall include the
patient’s initials/study identifier, the reporter’s name, and a description of
the event. Axonyx shall prepare and provide to the FDA all written IND safety
reports and telephone reports within the timeframes and containing the
information required under FDA regulations, including without limitation 21 CFR
§ 312.32. For all adverse events relating to the Clinical Trial other than any
Serious Adverse Experiences, JSW shall provide Axonyx in a timely manner all
information relating to such adverse events. Axonyx shall prepare and submit to
the FDA all annual reports containing the description of such adverse
experiences as required under FDA regulations, including without limitation 21
CFR § 312.33. Axonyx will provide JSW with a copy of each such report submitted
to the FDA. Axonyx may, at its option, communicate directly with any clinical
site and investigator about any Serious Adverse Experience or other adverse
event.

 

2.6
Changes or Modifications

 

(a) Axonyx will have the right to review or
request changes to the following guidelines and plans that relate to the
conduct of the Clinical Trial.

 

•                  Monitoring
guidelines

•                  Quality
assurance guidelines

•                  Data validation
guidelines

•                  Statistical
analysis plan

•                  Final study
report format

 

If any alteration, modification, amendment to
the Clinical Trial is required, the requesting party shall provide written
notice to the other party in accordance with the following procedures: A change
proposed by either party shall be initiated by a written notice (“Change
Order”) to the other party. Each Change Order shall explain in reasonable

 

3

 

detail the specific changes to the Clinical
Trial, task, responsibility, duty, timeline, applicable budget, requested by
the initiating party.

 

(b) Upon receiving a Change Order initiated
by Axonyx, JSW shall furnish Axonyx with an estimate of the effect, if any,
upon the applicable budget (whether an increase or decrease) within ten (10)
days of JSW’s receipt of said Change Order, or other period of time as mutually
agreed upon in writing by the parties. Upon Axonyx’s written approval of JSW’s
estimate (such approval shall not be unreasonably withheld) and the parties’
execution of the Change Order, said Change Order will be effective and its
terms shall be incorporated herein.

 

(c) Likewise, for example, if the Clinical
Trial is delayed by more than thirty (30) days at the request of Axonyx or
delayed due to material reasons beyond JSW’s control (a “Trial Delay”),
additional (out of scope) charges may be incurred. JSW will immediately notify
Axonyx of a Trial Delay and its proposed changes in budget due to increased
personnel costs, additional time or material that may be required by JSW to
deal with the change in the study timeline. JSW will use its best efforts to
mitigate such costs. Upon Axonyx’s written approval and the parties’ execution
of Health Decision’s Change Order, said Change Order will be effective and the
terms of the Change Order shall be incorporated herein.

 

2.7
Records; Axonyx’s Right to Audit

 

(a) As part of its services hereunder, JSW
shall maintain complete and accurate records, accounts, notes, reports and data
pertaining to the Clinical Trial and JSW’s activities hereunder in accordance
with Applicable Standards (as defined herein). Axonyx may at its option upon
reasonable advance notice and during normal business hours audit all
information, databases and records, accounts, notes, reports, and data
pertaining to the Clinical Trial and JSW’s performance under this Agreement.
During the term of this Agreement, JSW shall maintain all materials,
information, databases and records, accounts, notes, reports, and data obtained
or generated by JSW in the course of providing services under this Agreement,
including all computerized records and files, in a non-public and secure area.
Axonyx may at any time have access to any and all clinical data for the
Clinical Trial and clinical sites.

 

(b) At Axonyx’s request, JSW shall cooperate
with any regulatory authorities and allow them access to applicable records and
data. JSW shall inform Axonyx of any request or effort by any regulatory
authority to review records and data, or to contact, visit, or inspect JSW’s
records and data, relating to the Clinical Trial or JSW’s performance of
services under this Agreement, and shall notify Axonyx within two (2) business
days if any regulatory authority issues or gives to JSW any notice of intent to
inspect, notice of inspection, notice of inspectional observations, warning
letter, or other written communication concerning the Clinical Trial.

 

4

 

2.8
Periodic Reports; Return of Materials

 

(a) JSW shall, within the first seven days of
each month, provide to Axonyx a written report on the status of its activities
under this Agreement and the Clinical Trial. JSW will use its best efforts to
provide information in such reports of a nature and in a format as may be
reasonably requested by Axonyx. In addition, JSW will use its best efforts to:
(i) make a complete backup of such reports on a reasonably frequent basis, (ii)
prevent unauthorized access to and use of such reports, and (iii) maintain the
security and confidentiality of such reports.

 

(b) At the expiration or termination of this
Agreement, all materials, information, databases and records, accounts, notes,
reports and data obtained or generated by JSW in the course of providing services
under this Agreement shall, at Axonyx’s option and at its direction and written
request, be (i) delivered to Axonyx at its offices as Axonyx shall request or
(ii) retained by JSW under a mutually agreeable arrangement and at a cost to be
negotiated at that time. In no event will JSW dispose of materials,
information, databases and records, accounts, notes, reports or data obtained
or generated by JSW in the course of providing services under this Agreement
without first giving Axonyx sixty (60) days prior written notice of its intent
to do so and complying with any directions or written requests provided by
Axonyx during such sixty (60) day period. For avoidance of doubt, the
obligations of JSW under this Section 2.8 shall remain in effect notwithstanding
any dispute between the parties.

 

3. COMPENSATION; PAYMENTS

 

3.1
Compensation

 

As payment to JSW for services provided by
JSW under this Agreement, Axonyx shall compensate JSW in accordance with the
budget (the “Direct Cost Budget”) consisting of the milestone payment schedule
set forth in Appendix 3 attached hereto, as the same may be amended from time
to time by mutual consent of the parties hereto. In the event that the Clinical
Trial or part thereof is terminated before completion, Appendix 3 shall be
amended as Axonyx reasonably directs to reflect the impact of such termination
and JSW will be compensated for all work actually completed to date including
all reasonable costs associated with termination of the trial. Additionally,
JSW shall be reimbursed within fifteen (15) days of invoice of any and all
uncancellable obligations with regard to third parties who are providing goods
and/or services that appropriately and reasonably fall within the work outlined
in this agreement. Any funds held by JSW that shall be shown by Axonyx to be
unearned at the conclusion of the termination process shall be returned to
Axonyx within forty-five (45) days of termination of this Agreement.

 

3.2 Pass Through Costs

 

JSW will pass through certain costs (“Pass
Through Costs”) of the Clinical Trial to Axonyx. These Pass Through Costs
include expenses incurred [details], and reasonable travel expenses incurred by
JSW as required to monitor the progress and regulatory

 

5

 

compliance of the Clinical Trial.
Reimbursement by Axonyx for all other travel expenses is subject to Axonyx’s
prior approval of such travel. Axonyx, as described in the Coverage Agreement
attached as Appendix 4, bears sole responsibility for these expenses but JSW
will, as Axonyx’s agent and with Axonyx’s written approval of each contract,
enter into agreements with [subcontractors] and other entities that Axonyx
identifies and to which JSW agrees (“Contractors”) and will pay expenses
incurred by the Contractors from an account (“Pass Through Account”) that has
been funded in advance by Axonyx and that is under the control of JSW. JSW will
not enter into agreements with a Contractor until it has received both written
authorization from Axonyx and funding from Axonyx for any up-front costs
required by a Contractor. As Pass Through Costs are received or accrued by HDL,
they will be reported and tracked for Axonyx and invoiced to be paid by Axonyx.

 

3.3
Payments; Taxes

 

All payments provided for under the terms of
this Agreement shall be invoiced by email to Axonyx and payments will be
transferred by wire to JSW’s account within fifteen (15) calendar days of the
invoice. Payments not received within fifteen (15) days of invoice will be
subject to an interest rate of 12% per annum. Payments not received within
thirty (30)days following receipt by Axonyx of written notice given by JSW of
non-payment will be regarded as a breach of contract on behalf of Axonyx and
grounds for termination of this Agreement. Taxes (including any penalties
thereon) imposed on any payment made to JSW pursuant to this Agreement shall be
the sole responsibility of JSW.

 

3.4
Audit

 

During the term of this Agreement and for a
period of one year thereafter, Axonyx shall have the right to engage a
recognized accounting firm and any other consultants that Axonyx deems
necessary or desirable to audit JSW’s records, agreements and other documents
relating solely to Pass-Through Costs; provided, however, that Axonyx shall exercise
such audit rights no more than once during any consecutive twelve (12) month
period. Any such audit shall take place at a time and place agreed to by the
parties no later than thirty (30) days following Axonyx’s notice of exercise of
its audit rights hereunder. JSW shall cooperate fully in any audit conducted
hereunder and shall provide reasonable access to relevant employees, agents,
and other representatives of JSW and to HDL’ books, records, agreements, and
other documents pertinent to Pass-Through Costs. Axonyx shall be responsible
for its own expenses for these audits, including the costs of its accountants
and consultants; provided, however, that in the event that audit results
determine that the Pass Through Costs have been overstated, or payments have
been made by Axonyx by more than ten (10%) percent for the period examined, JSW
shall pay all reasonable costs and expenses incurred by Axonyx in the course of
making such determination, including the fees and expenses of such accountants.

 

6

 

4.
CONFIDENTIALITY AND PROPRIETARY RIGHTS

 

4.1
Confidentiality

 

JSW agrees to maintain as confidential any
and all information relating to the Clinical Trial JSW has received or receives
from Axonyx or obtains as a result of the performance by JSW of services under
this Agreement, including any reports posted to the study website
(“Confidential Information”), and further agrees to disclose the Confidential
Information only to those persons under JSW’s direct control who have a need to
know the Confidential Information for purposes of performing JSW’s obligations
under this Agreement and who have agreed in advance in writing to comply with
and be bound by the terms of this Article 4. At no time shall JSW use, or allow
others to use, the Confidential Information for any purpose other than
performance of JSW’s obligation under and in accordance with this Agreement or
disclose the Confidential Information to any third party without the prior
written consent of Axonyx and then only after the party to whom such disclosure
will be made has agreed in writing to comply with and be bound by the terms of
this Article 4. The foregoing confidentiality obligations shall not apply to
Confidential Information to the extent JSW can establish by competent documentary
proof that:

 

(a) such Confidential Information was already
properly known to JSW at the time of disclosure to JSW, provided that JSW
advises Axonyx promptly upon discovering that such Confidential Information was
already known to JSW;

 

(b) such Confidential Information was
generally available to the public or otherwise part of the public domain at the
time of disclosure to JSW;

 

(c) such Confidential Information became
generally available to the public or otherwise part of the public domain after
its disclosure or development, as the case may be, and other than through an
act or omission of JSW(or its employees, agents, advisors or other personnel
under JSW’s control;

 

(d) such Confidential Information was
properly disclosed to JSW, other than under an

obligation of confidentiality, by a third
party who had no obligation to Axonyx not to disclose such information to
others; or

 

(e) JSW was required to disclose such
information pursuant to applicable laws, rules, regulations, court or
administrative proceedings or the like, provided that JSW notified Axonyx in
writing at least ten (10) days in advance and provided Axonyx with the
opportunity to seek an appropriate protective order prevent to such disclosure.

 

4.2
Publication

 

JSW shall not publish any articles or papers
or make any presentations, nor assist any other person in publishing any
articles or papers or making any presentations, relating or referring to the
Clinical Trial, the services performed by JSW hereunder, Clinical Trial

 

7

 

results, or data, information, materials
obtained or generated in the performance of JSW’s obligations hereunder, in
whole or in part, without the prior written consent of Axonyx in its sole
discretion.

 

4.3
Proprietary Rights

 

(a) Neither anything contained in this
Agreement nor the disclosure or provision to JSW of any Confidential
Information or other information or items shall be deemed to transfer or grant
to JSW, or any other person or entity any right, title, interest, or license
in, to or under any patent or patent application of Axonyx or other
intellectual property or other right of Axonyx or in or to any information,
discoveries, knowledge, experience, processes, procedures, devices,
compositions of matter, skills, know-how, samples, trade secrets, designs,
formulae, specifications, methods, techniques, compilations, programs, devices,
technical information, concepts, developments, inventions or improvements,
whether patentable or not, or other technology, inventions or property of
Axonyx.

 

(b) JSW agrees, and shall instruct all
investigators and clinical sites to agree, that all information, discoveries,
knowledge, experience, processes, procedures, devices, compositions of matter,
skills, know-how, samples, trade secrets, designs, formulae, specifications,
methods, techniques, compilations, programs, devices, technical information,
concepts, developments, inventions or improvements, whether patentable or not
(“Inventions”) (except for JSW-developed computer software programs,
statistical methodologies, technical processes, methods, formulae or analyses,
each as developed by JSW’ prior to the date of this Agreement (the “JSW
Property”) and which shall remain the sole and separate property of JSW)
arising from JSW’s performance of its obligations under this Agreement shall
promptly be made known to Axonyx in writing and Axonyx shall have sole and
exclusive rights to all such Inventions, which shall be the sole and exclusive
property of Axonyx. JSW hereby agrees to assign, and hereby assigns to Axonyx,
without additional compensation, its entire right, title and interest in and to
all Inventions. To the extent, if any, that any Inventions are not assignable
or that JSW retains any right, title or interest in and to any Invention, JSW
(i) unconditionally and irrevocably waives the enforcement of such rights, and
all claims and causes of action of any kind against Axonyx with respect to such
rights; (ii) agrees, at Axonyx’s request and expense, to consent to undertake or
join in any action to enforce such rights; and (iii) hereby grants to Axonyx a
perpetual, irrevocable, fully paid-up, royalty-free, transferable,
sub-licensable (through multiple levels of sublicenses), exclusive, worldwide
right and license to use, reproduce, distribute, display and perform (whether
publicly or otherwise), prepare derivative works of and otherwise modify, make,
sell, offer to sell, import and otherwise use and exploit (and have others
exercise such rights on behalf of Axonyx) all or any portion of such Invention,
in any form or media (now known or later developed).

 

(c) Whenever requested to do so by Axonyx,
JSW will execute any and all applications, assignments, or other instruments
and give testimony, which Axonyx shall deem necessary to apply for and obtain
Letters of Patent in the U.S. or other country; or to otherwise protect the
interests of Axonyx therein. Axonyx shall compensate JSW, subcontractors and
agents for the time devoted to said activities and reimburse JSW for

 

8

 

reasonable expenses actually incurred. These
obligations shall continue beyond the termination of this Agreement with
respect to Inventions, and shall be binding upon assignees, administrators and
other legal representatives of JSW.

 

4.4
Rights in Materials, Data and Reports

 

JSW hereby agrees to assign, and hereby
assigns, and shall instruct all investigators and clinical sites to assign, to
Axonyx all right, title and interest, including copyrights and other intellectual
property rights, in and to all works of authorship, data, reports and other
materials, including without limitation protocols, investigators’ brochures,
case report forms and summary statistical reports, which shall be developed in
performance of the Clinical Trial or by JSW in the course of performing its
obligations under this Agreement. For avoidance of doubt, the obligations of
JSW to assign and deliver to Axonyx the subject matter under this Section 4.4
shall remain in effect notwithstanding any dispute between the parties.
Furthermore, for the avoidance of doubt, this clause shall not apply to any JSW
Property or any direct developments of such JSW Property that may occur during
the term of this Agreement.

 

4.5
Survival

 

The terms of this Article 4, and the parties’
obligations hereunder, shall survive termination or expiration of this
Agreement for any reason whatsoever and the completion of all JSW’s performance
of all of its obligations under this Agreement.

 

5.
ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS

 

JSW represents, warrants and covenants that:

 

5.1
Conduct of Activities

 

It will perform, and cause all investigators
and clinical sites to perform, the services and obligations to be performed by
JSW or an investigator or clinical site pursuant to this Agreement (including
as set forth in Appendix 1) in a competent manner in conformance with the
standard of care usually and reasonably expected in the performance of such
activities,
and in each case in conformance with procedures approved by Axonyx
and to its reasonable satisfaction.

 

5.2
Compliance

 

It will perform, and cause all investigators
and clinical sites to perform, the services and obligations to be performed by
JSW or an investigator or clinical site pursuant to this Agreement in
compliance with all applicable laws, published guidelines, rules and
regulations, including but not limited to the ICH Consolidated Guidance for
Good Clinical Practice (April 1996), the United States Food, Drug and Cosmetic
Act and the

 

9

 

regulations promulgated by the FDA pertaining
to clinical investigations and the use of investigational drugs in humans, all
of such protocols, guidelines, standards, laws, rules and regulations to be
hereinafter and collectively referred to as “Applicable Standards”, and with
the standard of care customary in the industry. JSW will promptly notify Axonyx
of any observed or suspected violations of such Applicable Standards by
Investigators and Clinical Sites.

 

5.3
No Debarment

 

In accordance with the requirements of the
U.S. Food, Drug, and Cosmetic Act, JSW certifies that it is not and will not be
using the services of any person debarred under 21 U.S.C.§ 335a in any capacity
in connection with the performance of the services provided under this
Agreement. JSW also certifies that it is not and will not be using the services
of any person or affiliate person/firm for whom convictions subject to
debarment have occurred in the past five (5) years in any capacity in connection
with the performance of the services. If at any time after execution of this
Agreement, JSW becomes aware that it or any person employed by it or any
affiliate person/firm has been or is in the process of being debarred or is
convicted of an offense subjecting it or any person to debarment, JSW hereby
agrees that it will so notify Axonyx at once. JSW shall regularly, but no less
frequently than once per calendar quarter, review the names of (a) those
persons whose services it uses, whether or not employed by JSW, and (b) the
clinical sites and investigators retained for the Clinical Studies as
identified on the Form FDA-1572, against the list of debarred individuals.

 

5.4
Inspections

 

If any governmental or regulatory authority
conducts or gives notice to JSW or any investigator or clinical site of its
intent with respect to any activities under this Agreement to conduct an
inspection at facilities of JSW or any clinical site or take any other
regulatory action, or if JSW or any investigator or clinical site becomes aware
of any such governmental inspection or other regulatory activity at one of the
clinical Sites being monitored by JSW, JSW shall promptly give Axonyx notice
thereof, including all information pertaining to any such inspections or actions;

 

5.5
No Sanctions

 

Neither it nor any of its personnel have been
subjected to any restrictions or sanctions related to allegations of research
or professional misconduct.

 

10

 

6.
INDEMNIFICATION; INSURANCE

 

6.1
Indemnification by JSW

 

JSW agrees to defend, indemnify, and hold
harmless Axonyx and its respective affiliates, employees, officers, directors,
and consultants against and from any losses, claims, liabilities, damages,
proceedings, or investigations (including reasonable attorney fees and court
costs) arising out of or in connection with JSW’s negligence, intentional
misconduct, breach of any covenant or warranty, or the inaccuracy of any
representation of JSW in this Agreement, or JSW’s failure to comply with the
terms of the Clinical Trial (and related Protocol, as it may be amended from
time and time and as currently in effect), Applicable Standards, written
instructions by Axonyx, or the terms of this Agreement, in connection with
JSW’s performance of its obligations under this Agreement, provided that such
claim did not arise out of or in connection with Axonyx’s gross negligence,
intentional misconduct and willful malfeasance.

 

6.2
Indemnification by Axonyx

 

Axonyx agrees to defend, indemnify, and hold
harmless JSW and its respective affiliates, employees, officers, directors, and
consultants (the “JSW Indemnitees”) against and from any losses, claims,
liabilities, damages, proceedings, or investigations (including reasonable
attorney fees and court costs) brought against JSW Indemnitees, or any one of
them, by a third party arising out of or in connection with Health Decision’s
performance under this Agreement, provided that:

 

(a) such claim did not arise out of or in
connection with JSW’s negligence, intentional misconduct, breach of any
covenant or warranty, or the inaccuracy of any representation, of JSW in this
Agreement, or JSW’s failure to comply with the terms of any Clinical Trial, the
Applicable Standards, any written instructions by Axonyx, or the terms of this
Agreement;

 

(b) the JSW Indemnitees notify Axonyx within
a reasonable period after receipt of such claim and cooperate with Axonyx in
their defense; and

 

(c) Axonyx will have the right to select
defense counsel and to direct the defense or settlement of any such claim or
suit.

 

6.4
Limitation of Liability

 

Neither party shall be liable for any
indirect, incidental, special or consequential damages, including loss of
profits, revenue, goodwill, shareholder confidence and similar remote damages
incurred by the other party, whether in an action in contract or tort, even if
it has been advised of the possibility of such damages.

 

6.5
Insurance

 

JSW will during the term of this Agreement
carry employers liability, public liability and office insurance policies
conforming to usual standards operating in Europe and in such amounts and
providing such coverage as is reasonable and customary for commercial entities
providing services like those being rendered by JSW under this Agreement.

 

11

 

Axonyx will during the term of this Agreement
carry clinical trials indemnity insurance conforming to international standards
and valid in each country where Clinical Trial is conducted and in such amounts
and providing the coverage as is reasonable and customary for commercial
entities conducting research on pharmaceutical products. Axonyx will ensure
that JSW is listed as a named insured.

 

Upon request, Axonyx will provide written
evidence of such insurance to JSW and will provide JSW thirty (30) days prior
written notice of any cancellation in any of the above coverage. For the
avoidance of doubt, JSW will not instruct administration of a pharmaceutical
product to patient or healthy volunteer recipients without a copy of the valid
clinical trial indemnity insurance certificate being previously filed with JSW.

 

6.6.
Survival

 

The terms of this Article 6, and the parties’
obligations hereunder, shall survive termination or expiration of this
Agreement for any reason whatsoever and the completion of all JSW’s performance
of all of its obligations under this Agreement.

 

7.
TERM; TERMINATION; POSTPONEMENT

 

7.1
Term

 

This Agreement shall be effective beginning
on the Effective Date and shall remain in full force and effect until the Scope
of Work provided by JSW for the Clinical Trial is complete or until terminated
in accordance with the terms of this Agreement. The anticipated schedule of
this project is provided in Appendix 3.

 

7.2
Termination by JSW or Axonyx for Patient Safety

 

In the event JSW or Axonyx believes that
patient safety considerations may indicate that the Clinical Trial or part
thereof should cease, JSW or Axonyx shall promptly consult with the other
regarding such belief and the reasons therefore, and JSW shall cooperate with
Axonyx in making any changes necessary to address and cure such safety
considerations. Axonyx shall terminate the Clinical Trial only if Axonyx
determines that patient safety considerations require such termination. In the
event that Axonyx determines not to so terminate the Clinical Trial or part
thereof, subject to this Section 7.2, JSW shall have the right to terminate
this Agreement effective immediately upon the giving of written notice of
termination to Axonyx.

 

7.3
Termination

 

This Agreement may be terminated (i)
immediately by Axonyx or JSW, as the case may be, upon the material breach of
this Agreement by the other party and the failure of such other party to cure
such breach within thirty (30) days of receipt of the non-breaching

 

12

 

party’s written notice of such breach and
(ii) by Axonyx or JSW without cause upon thirty (30) days prior written notice
to the other of its intent to terminate.

 

7.4
Effect of Termination

 

Upon termination of this Agreement, JSW shall
cooperate with Axonyx to provide for an orderly wind down of the services
provided by JSW hereunder and, if Axonyx elects to continue the Clinical Trial
or part thereof in the event of a termination of this Agreement, an orderly
transfer of JSW’s responsibilities with respect to the Clinical Trial or part
thereof to Axonyx or its designee, including without limitation JSW’s
assignment at Axonyx’s request of one or more Clinical Trial Agreements to
Axonyx. Termination of this Agreement shall not relieve Axonyx from any accrued
but unpaid obligations for services actually performed by JSW prior to such
termination and for any reasonable wind down expenses or for reasonable
expenses properly incurred by JSW under this Agreement prior to the date of
notice of termination (including any expenses so incurred but payable after the
effective date of termination) which would otherwise have been payable by
Axonyx under the terms of this Agreement, unless Axonyx objects to any such
amount, in which case the parties shall use best efforts to resolve
expeditiously any disagreement. JSW shall use its best efforts to minimize the
amount of obligations which could be payable by Axonyx following termination.

 

7.5
Postponement of Clinical Trial

 

Axonyx may, in its sole discretion, suspend
or delay the Clinical Trial or any part thereof. In the event of suspension or
delay of the Clinical Trial or any part thereof, Axonyx may, by giving written
notice to JSW, suspend or delay JSW’s performance of services under this
Agreement with respect to the Clinical Trial or any part thereof. In the event
of suspension or delay of the Clinical Trial or any part thereof under this
Section 7.5, Axonyx shall remain obligated to pay to JSW in accordance with
Appendix 3 all accrued but unpaid amounts for services satisfactorily rendered
by JSW through the date of such suspension or delay and caused by any
suspension or delay. Upon receipt of written notice of suspension or delay of
the Clinical Trial or any part thereof under this Agreement, JSW shall use its
best efforts to immediately suspend its and each affected clinical site’s
performance of services, shall make no further expenditures nor incur further
expenses, (and shall attempt to mitigate any expenses or costs already incurred
in connection with the suspension or delay of services), except those directly
caused by the suspension or delay, under this Agreement with respect to the
Clinical Trial until such time as Axonyx notifies JSW of the resumption of the
Clinical Trial or any part thereof. In the event of resumption of the Clinical
Trial or any part thereof, Axonyx shall notify JSW in writing, at which time
JSW will resume, and instruct each clinical site to resume, their respective
activities with respect to the Clinical Trial in accordance with the terms of
this Agreement. If the period of the suspension or delay is more than 30 days,
JSW will have the right to renegotiate the financial terms of the project to
the extent that it anticipates additional costs will be incurred relating
directly to the reinstatement of the Clinical Trial.

 

13

 

8.
ARBITRATION

 

If a dispute arises between the parties in
connection with this Agreement, or a disagreement arises regarding the
interpretation of any provision hereof (a “Dispute”), the parties shall use the
following procedure in good faith prior to either party pursuing other
available judicial or non-judicial remedies:

 

(a) A party raising a Dispute shall provide
written notice of such Dispute to the other party identifying such Dispute in
reasonable detail and proposing a reasonable solution to such Dispute. A
meeting shall be held between the parties within ten (10) days after a party
receives such written notice of a Dispute. The meeting shall be attended by a
representative of each party having decision-making authority regarding the
Dispute, to attempt in good faith to negotiate a reasonable resolution of the
Dispute;

 

(b) If within thirty (30) days after receipt
of notification of the Dispute by either party, the parties have not succeeded
in negotiating a resolution to the Dispute, the Dispute shall be determined and
settled exclusively by a panel of three (3) neutral arbitrators (“the
Arbitration Panel”) selected in accordance with this Section 8 and the rules of
the Arbitration Act 1996. Each party shall select one (1) neutral arbitrator (a
“Party Appointed Arbitrator”) and the Party Appointed Arbitrators shall select
the third neutral arbitrator (together an “Arbitration Panel”) in accordance
with such Rules as may apply to such arbitration. A majority of the Arbitration
Panel is required for all Arbitration Panel decisions or recommendations. The
place of arbitration shall be a mutually agreed venue within the Europe. The
Arbitration Panel shall recommend a resolution of the Dispute in writing to
each party. The recommendation provided by the Arbitration Panel shall be final
and binding and judgment may be entered on the Arbitration Panel’s award in any
court having jurisdiction of the Dispute. In the event of arbitration, the
costs related to such proceedings, including legal and travel costs will be
included in the award to the prevailing party. The Arbitration Panel may only
award actual damages, and shall not have the right to award any other damages,
including, without limitation, punitive, incidental or consequential damages.
Notwithstanding the foregoing, nothing in this Section shall preclude either
party from seeking interim or provisional relief, in the form of a temporary
restraining order, preliminary injunction, or other interim equitable relief
concerning a dispute, either prior to or during the Dispute resolution process,
if necessary to protect the interests of such party.

 

9.
MISCELLANEOUS

 

9.1
Independent Contractors

 

For purposes of this Agreement, except as
expressly provided in Section3.2, the parties agree that they are and will be
acting solely as independent contractors and nothing contained in this
Agreement is intended or shall be construed to place them in the relationship
of partners, principal and agent, employer/employee or joint ventures, nor to
give either party the authority to legally bind the other party, and neither
party shall hold itself out as having such authority.

 

14

 

9.2
Amendments

 

This Agreement may not be amended or modified
in any manner except by an instrument in writing signed by both of the parties
hereto.

 

9.3
Entire Agreement

 

This Agreement (including the Appendices
hereto) constitutes the entire agreement of the parties with respect to the
subject matter hereof, and it supercedes all prior oral and written agreements,
commitments or understandings with respect to the matters provided for herein,
including without limitation any memorandum of understanding, letter of intent
or letter of agreement. In the event of any conflict between the terms of this
Agreement and any Appendix hereto, the terms of this Agreement shall govern.

 

9.4
Governing Law

 

This Agreement and the performance hereof
shall be governed, interpreted, construed and regulated by the laws of The
Netherlands.

 

9.5
Notices

 

All notices, demands, requests, or other
communications that may be or are required to be given, served, or sent by any
party to any other party pursuant to this Agreement shall be in writing and
shall be mailed by first-class, registered or certified mail, return receipt
requested, postage prepaid, or transmitted by hand delivery (including delivery
by courier) or by facsimile transmission, addressed as follows:

 

	
  If to Axonyx:

  	
   

  	
  If to JSW:

  
	
   

  	
   

  	
   

  
	
  Bilderdijkstraat 9

  	
   

  	
  JSW Research

  
	
  2311 XD Leiden

  	
   

  	
  Rankengasse 28

  
	
  Netherlands

  	
   

  	
  Graz A-8020

  
	
  Telephone: 
  +31 (0)71 589 3463

  	
   

  	
  Austria

  
	
  Facsimile: 
  +31 (0)71 589 3161

  	
   

  	
  Telephone: +43 (0) 316 76511411 

  
	
  Attn: G. B. Bruinsma MD

  	
   

  	
  Facsimile: +43 (0) 316 7675 1144

  
	
  With a copy to: M S Hausman MD

  	
   

  	
  Attn: Dr. Manfred Windisch

  
	
   

  	
   

  	
  With a copy to: Dr Robert Wronski

  

 

Each party may designate by notice in writing
a new address to which any notice, demand, request or communication may
thereafter be so given, served or sent. Each notice, demand, request, or
communication which shall be mailed, delivered or transmitted in the manner
described above shall be deemed sufficiently given, served, sent and received for
all purposes at such time as it is delivered to the addressee (with the return
receipt, the delivery receipt, the affidavit of messenger or (with respect to a

 

15

 

facsimile transmission) the electronic receipt
being deemed conclusive (but not exclusive) evidence of such delivery) or at
such time as delivery is refused by the addressee upon presentation. In the
case of notices sent by facsimile transmission, which notice shall be deemed
duly given if made pursuant to the provisions of this Section 8.7 above, the
notifying party shall also send a confirmation copy of any such notice to the
other party by first class-mail.

 

9.6
Severability

 

In the event that any term of this Agreement
is held to be invalid, illegal, or unenforceable, such invalidity, illegality,
or unenforceability shall not affect any other portion of this Agreement, and
there shall be deemed substituted therefore such term as will most fully
realize the intent of the parties as expressed in this Agreement to the fullest
extent permitted by applicable law, the parties hereby declaring their intent
that this Agreement be construed in such fashion as to maintain its existence,
validity, and enforceability to the greatest extent possible.

 

9.7 Survival

 

Neither expiration nor termination of this
Agreement shall terminate those obligations and rights of the parties pursuant
to this Agreement which by their terms are intended to survive and such
provisions shall survive the expiration or termination of this Agreement.
Without limiting the generality of the foregoing, the following provisions of
this Agreement shall survive any expiration or termination hereof: Articles 4,
6, 7, 8 and 9 and all definitional provisions of this Agreement corresponding to
the foregoing.

 

9.8
Waiver

 

Neither the waiver by any of the parties
hereto of a breach of or a default under any of the provisions of this
Agreement, nor the failure of any of the parties, on one or more occasions, to
enforce any of the provisions of this Agreement or to exercise any right or
privilege hereunder shall thereafter be construed as a waiver of any subsequent
breach or default of a similar nature, or as a waiver of any of such
provisions, rights or privileges hereunder. No waiver by the a party hereto of,
or consent by a party hereto to, a variation from any provision of this
Agreement shall be effective unless made in a written instrument duly executed
on behalf of such party.

 

9.9
Assignment

 

This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their successors and assigns.
Neither party may transfer or assign this Agreement or its obligations
thereunder to a third party other than an affiliate or subsidiary or such party
without the other party’s prior written consent. Notwithstanding the foregoing,
Axonyx will transfer or assign its rights and obligations under this Agreement,
without consent, to a successor to all or substantially all of its business or
assets relating to this Agreement

 

16

 

whether by sale, merger, operation of law or
otherwise. Any assignment not in conformance with this Section 9.9 shall be
null, void and of no legal effect.

 

9.10
Additional Actions and Documents

 

Each of the parties hereto hereby agree to
take or cause to be taken such further actions, to execute, deliver and file or
cause to be executed, delivered and filed such further documents and
instruments, and to obtain such consents, as may be necessary or as may be
reasonably requested in order to fully effectuate the purposes, terms and
conditions of this Agreement.

 

9.11 Publicity

 

Neither party shall use the name of the other
party, its affiliates or subsidiaries, or any of their products, promotions,
public statements or public disclosures, with the exception of legally required
reporting requirements, without the prior express written consent of an
authorized representative of the other party.

 

9.12
Counterparts

 

To facilitate execution, this Agreement may
be executed in as many counterparts as may be required. It shall not be
necessary that the signature of or on behalf of each party appears on each
counterpart, but it shall be sufficient that the signature of or on behalf of
each party appears on one or more of the counterparts. All counterparts shall
collectively constitute a single agreement. It shall not be necessary in any
proof of this Agreement to produce or account for more than a number of
counterparts containing the respective signatures of or on behalf of all of the
parties.

 

9.13
Headings

 

The headings of this Agreement are for ease
of reference only and shall not limit or otherwise affect the meaning of the
terms and conditions of this Agreement.

 

9.14 It is understood that all materials and
information provided hereunder are experimental in nature. Axonyx makes no
warranties, express or implied, including without limitation any of the implied
warranties of merchantability, fitness for a particular purpose and
non-infringement regarding any materials and/or any information provided
hereunder. Additionally, Axonyx makes no representations of any kind, express
or implied, regarding the safety or efficacy with respect to such materials
and/or information.

 

17

 

IN
WITNESS WHEREOF, the parties hereto have duly executed
this Agreement, or have caused this Agreement to be duly executed on their
behalf, as of the Effective Date.

 

 

	
  AXONYX, INC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Gosse B. Bruinsma, M.D.

  	
   

  	
   

  
	
  By: Gosse B Bruinsma MD

  	
   

  
	
   

  	
   

  
	
  Title: Chief Operating Officer

  	
   

  
	
   

  	
   

  
	
  Date:  March 21

  	
   

  
	
   

  	
   

  
	
  JSW Research

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Manfred
  Windisch, Ph.D.

  	
   

  	
   

  
	
  By: Manfred
  Windisch, Ph.D.

  	
   

  
	
   

  	
   

  
	
  Title: CEO
  and President

  	
   

  
	
   

  	
   

  
	
  Date: March
  21, 2003

  	
   

  

 

18

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