Document:

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                                                                    Exhibit 10.9

               CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED
  BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT. THE NON-PUBLIC INFORMATION
                       HAS BEEN FILED WITH THE COMMISSION.

                       COLLABORATION AND LICENSE AGREEMENT

         This AGREEMENT, having a date of July 29, 2002, is made by and among,
on the one hand, F.HOFFMANN-LA ROCHE LTD, a Swiss corporation having its
principal place of business at Grenzacherstrasse 124, CH-4070, Basel,
Switzerland and HOFFMANN-LA ROCHE INC., a New Jersey corporation, having its
principal place of business at 340 Kingsland Street, Nutley, New Jersey 07110
("Roche") and, on the other hand, MEMORY PHARMACEUTICALS CORP., a Delaware
corporation, having its principal place of business at 100 Philips Parkway,
Montvale, New Jersey 07645 ("Memory").

                                  INTRODUCTION

1.       Memory has discovered compounds active as PDE4 inhibitors, including a
         compound known as MEM1414, and owns related intellectual property
         rights.

2.       Roche has expertise in the research, development, manufacture and
         commercialization of pharmaceutical products.

3.       The parties wish to collaborate to develop MEM1414 for
         commercialization; develop potential back-up compounds and other PDE4
         inhibitors focused on central nervous system indications; and explore
         potential applications for other therapeutic areas such as respiratory
         disease.

4.       In consideration of the mutual covenants and promises contained in this
         Agreement and other good and valuable consideration, the receipt and
         sufficiency of which are hereby acknowledged, Memory and Roche agree as
         follows:

                             ARTICLE 1. DEFINITIONS

As used in this Agreement, the following terms, whether used in the singular or
plural, shall have the following meanings:

1.1      "Affiliate" means (a) a business entity which owns, directly or
         indirectly, at least fifty percent (50%) of the voting shares or other
         means of control of a Party; or (b) a business entity in which at least
         fifty percent (50%) of the voting shares or other means of control are
         owned by a Party, either directly or indirectly; or (c) a business
         entity, the majority ownership of which is directly or indirectly
         common to the majority ownership of a Party. Anything to the contrary
         in this paragraph notwithstanding, [*], a Delaware corporation, shall
         not be deemed an Affiliate of Roche unless Roche provides written
         notice to Memory of its desire to include [*] as an Affiliate of Roche.
         Notwithstanding the preceeding provisions, once an entity ceases to be
         an Affiliate, then such entity shall, without any further action, cease
         to have any rights, including license and sublicense rights, under this
         Agreement that it has by reason of being an Affiliate.

         In addition, Roche is presently seeking permission to acquire an
         interest in [*]. Nothing in this Agreement is to be construed as
         binding [*] to any of the terms and conditions contained in this
         Agreement. However, should [*] become a Roche Affiliate it shall be
         bound by the terms and

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         conditions of this Agreement. If [*] should become a Roche Affiliate
         but not agree to be bound by the terms and conditions of this
         Agreement, then [*] shall have none of the rights and obligations of an
         Affiliate of Roche under this Agreement, and Roche shall not grant a
         sublicense to [*] under this Agreement without prior written consent of
         Memory.

1.2      "Agreement Term" means the term of this Agreement, more fully described
         in Section 16.1.

1.3      "Bioequivalent Product" means, with respect to a given Product sold in
         a given country of the Territory by Roche, its Affiliate or
         sublicensee, a product sold by a Third Party in such country containing
         the same PDE4 inhibitor (or an acid, salt or ester thereof) as such
         Product.

1.4      "Clinical Candidate" shall be a PDE4 inhibitor that the JLT approves
         after consideration of the guidelines as provided in the Research
         Workplan.

1.5      "Collaboration Compound" means any PDE4 inhibitor that (i) either or
         both Parties or its Affiliates conceives in the conduct of the Research
         Collaboration, or (ii) the JLT otherwise agrees shall constitute a
         Collaboration Compound pursuant to the Research Workplan.

1.6      "Collaboration Patent Right" means a Patent Right Covering an
         Invention.

1.7      "Collaboration Technology" means all Know-How generated in the conduct
         of the Research Collaboration, other than Collaboration Compounds.
         Collaboration Technology includes all Inventions, other than
         Collaboration Compounds.

1.8      "Combination Product" means any product containing both a
         pharmaceutically active agent which causes it to be considered a
         Product and one or more other pharmaceutically active agents which are
         not Products.

1.9      "Composition of Matter Claim" means, for a given Product in a given
         country of the Territory, a Valid Claim of a Memory Patent Right or a
         Collaboration Patent Right that Covers the molecule per se of the PDE4
         inhibitor that is included in such Product, in whole or as a component
         thereof, as an active ingredient of such Product.

1.10     "Cover" (including the variations such as "Covered", "Coverage" or
         "Covering") shall mean that the making, using, offering for sale,
         selling or importing of a given product would infringe a claim of a
         Patent Right in the absence of a license under such Patent Right. The
         determination of whether a product is Covered by a particular Patent
         Right shall be made on a country-by-country basis.

1.11     "Effective Date" means the date that all conditions subsequent under
         Section 16.1(a) have occurred.

1.12     "Europe" means the United Kingdom, Germany, Italy, France and Spain.

1.13     "Field" shall mean prophylaxis and treatment of diseases, in all
         indications, for either human or veterinary use.

1.14     "IND" means an Investigational New Drug Application filed with the
         United States Food and Drug Administration ("FDA") for human clinical
         testing of a drug.

1.15     "Initiation of Phase II" means the date that a patient is first dosed
         by or on behalf of Roche, its Affiliate or sublicensee with a Product
         in a Phase II clinical trial.

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1.16     "Initiation of Phase III" means the date that a patient is first dosed
         by or on behalf of Roche, its Affiliate or sublicensee with a Product
         in a Phase III clinical trial.

1.17     "Invention" means an invention that is made in the conduct of the
         Research Collaboration.

1.18     "JLT" means that committee organized and operating as provided in
         Article 7.

1.19     "Joint Invention" means an Invention having at least one co-inventor
         who is an employee, consultant or agent of each of the Parties or its
         Affiliate.

1.20     "Know-How" means data, knowledge and information, including materials,
         samples, chemical manufacturing data, toxicological data,
         pharmacological data, preclinical data, assays, platforms,
         formulations, specifications, quality control testing data, that are
         necessary or useful for the discovery, manufacture, development or
         commercialization of Product in the Territory.

1.21     "Launch" means, with respect to a Product in a country of the
         Territory, the date of the first commercial sale by Roche, its
         Affiliate or its sublicensee of the given Product in the given country
         after Regulatory Approval in such country.

1.22     "Major Market Countries" means the US, Canada, Japan, Europe, China and
         Korea.

1.23     "Memory Compound" means any PDE4 inhibitor for which Memory either
         prior to the Effective Date or during the Agreement Term has rights,
         whether by reason of its own conception of such inhibitor, or under
         agreement with a Third Party.

1.24     "Memory Invention" means an Invention having as inventors only
         employees, consultants or agents of Memory or its Affiliate.

1.25     "Memory Know-How" means all Know-How that Memory owns, or otherwise has
         the right to grant the licenses herein, during the Agreement Term.

1.26     "Memory Patent Rights" means all Patent Rights that Memory owns, or
         otherwise has the right to grant the licenses herein, during the
         Agreement Term. Schedule A lists all Memory Patent Rights that Cover
         the Memory Compounds as of the date hereof ("Base Patents").

1.27     "NCE" means a PDE4 inhibitor that itself, or its ester, salt or other
         noncovalent derivative, has not been the subject of a Regulatory
         Approval.

1.28     "NDA" means a New Drug Application filed with the FDA, or its foreign
         equivalent, for a drug.

1.29     "NDA Filing" means for a given Product, the date that Roche, its
         Affiliate or sublicensee files an NDA for the Product.

1.30     "Net Sales" and the related term "Adjusted Gross Sales" mean:

         "Adjusted Gross Sales" means the amount of gross sales of the Product
         invoiced by Roche, its Affiliates and its sub-licensees to independent
         third parties less deductions of returns (including allowances actually
         given for spoiled, damaged, out-dated, rejected, returned Product sold,
         withdrawals and recalls), rebates to the extent consistently applied by
         Roche to its products (price reductions, rebates to social and welfare
         systems, charge backs, cash sales incentives (but only to the extent it
         is a sales related deduction which is accounted for within Roche on a
         product-by-product basis)), government mandated rebates and similar
         types of rebates (e.g.,

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         P.P.R.S, Medicaid, each as consistently applied by Roche to its
         products), volume (quantity) discounts, each as consistently applied by
         Roche to its products, taxes (value added or sales taxes, government
         mandated exceptional taxes and other taxes directly linked to the gross
         sales amount), it being understood that income and capital gains taxes
         are not the type of taxes contemplated as a deduction in this
         definition of Adjusted Gross Sales.

         "Net Sales" means, for the US, the amount calculated by subtracting
         from the amount of Adjusted Gross Sales a lump sum deduction of [*]
         percent ([*]%) of Adjusted Gross Sales in lieu of those sales related
         deductions which are not accounted for within Roche on a product by
         product basis (e.g. outward freights, postage charges, transportation
         insurance, packaging materials for dispatch of goods, custom duties,
         bad debt, discounts granted later than at the time of invoicing, and
         cash discounts).

         "Net Sales" means, for the ROW Territory, the amount calculated by
         subtracting from the amount of Adjusted Gross Sales a lump sum
         deduction of [*] percent ([*]%) of Adjusted Gross Sales in lieu of
         those sales related deductions which are not accounted for within Roche
         on a product by product basis (e.g. outward freights, postage charges,
         transportation insurance, packaging materials for dispatch of goods,
         custom duties, bad debt, discounts granted later than at the time of
         invoicing, and cash discounts).

         Notwithstanding the foregoing, amounts received by Roche, its
         Affiliates and sublicensees for the sale of Product among Roche, its
         Affiliates or sublicensees for resale shall not be included in the
         computation of Adjusted Gross Sales and Net Sales."

1.31     "Neurological Indication" means prophylaxis or treatment of Alzheimers'
         disease, prophylaxis or treatment of mild cognitive impairment ("MCI")
         or treatment of vascular dementia.

1.32     "Non-Memory Compound" means a PDE4 inhibitor, other than a Memory
         Compound or a Collaboration Compound, with respect to which the initial
         IND for the inhibitor is for a Neurological Indication or Psychiatric
         Indication, and which initial IND has been filed within five (5) years
         after the Effective Date by Roche or its Affiliate.

1.33     "Other Indication" means any indication other than a Neurological
         Indication or a Psychiatric Indication.

1.34     "Party" means Roche and/or Memory.

1.35     "Patent Right" means all rights under any patent or patent application
         in any country of the Territory, including any substitution, extension
         or supplementary protection certificate, reissue, reexamination,
         renewal, division, continuation or continuations-in-part thereof.

1.36     "Phase II" means the second phase of human clinical trials of a drug
         required by the US FDA to gain evidence of efficacy in the target
         population, determine optimal dosage, and obtain expanded evidence of
         safety for Product(s), as described in 21 CFR Part 312, as it may be
         amended.

1.37     "Phase III" means the third phase of human clinical trials of a drug
         required by the US FDA to gain evidence of efficacy in the target
         population, and obtain expanded evidence of safety for Product(s), as
         described in 21 CFR Part 312, as it may be amended.

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1.38     "Product" means any and all products that include, in whole or as a
         component thereof, a Memory Compound or a Collaboration Compound.

1.39     "Psychiatric Indication" means depression, anxiety or mixed
         anxiety/depression.

1.40     "Regulatory Approval" means any approvals (including pricing and
         reimbursement approvals), licenses, registrations or authorizations of
         any national or international or local regulatory agency, department,
         bureau or other governmental entity, necessary for the manufacture and
         sale of a Product in the Field in a regulatory jurisdiction in the
         Territory by Roche, its Affiliate or sublicensee.

1.41     "Research Collaboration" means the collaborative non-clinical research
         program between the Parties, more fully described in the Research
         Workplan.

1.42     "Research Workplan" means the plan of preclinical and non-clinical
         development activities attached as Schedule B, as it may be amended
         from time to time.

1.43     "Research Term" shall have the meaning provided in Section 7.1(b)(iii).

1.44     "Roche Invention" means an Invention having as inventors only
         employees, consultants or agents of Roche or its Affiliate.

1.45     "ROW Territory" means all countries and territories other than the US.

1.46     "Territory" means all countries and territories in the world.

1.47     "Third Party" means a person or entity other than (i) Memory or any of
         its Affiliates, or (ii) Roche or any of its Affiliates.

1.48     "US" means the United States of America and its possessions and
         territories, including Puerto Rico.

1.49     "Valid Claim" means a claim in any (i) unexpired and issued Memory
         Patent Right or Collaboration Patent Right that has not been
         disclaimed, revoked or held invalid by a final unappealable decision of
         a court of competent jurisdiction or government agency or (ii) pending
         patent application that is a Memory Patent Right or a Collaboration
         Patent Right which application has been on file with the applicable
         patent office for no more than ten (10) years and for which there has
         been reasonably consistent activity to advance to issuance of a patent.

                            ARTICLE 2. LICENSE GRANTS

2.1      License Grants. Subject to the terms and conditions of this Agreement,
         Memory grants to Roche the sole and exclusive license, including the
         right to grant sublicenses pursuant to Section 2.2, under the Memory
         Patents and to use the Memory Know-How, to make, use, offer for sale,
         sell and import Products in the Territory for use in the Field.

         The exclusivity of the above license is subject to the retained right
         of Memory and its respective Affiliates to conduct preclinical and
         non-clinical development activities related to Product, solely to the
         extent expressly contemplated by this Agreement. In addition, nothing
         in this Agreement grants to Roche any right or license to use Memory
         Know-How for any purpose other than to make, use, offer for sale, sell
         and import Products in the Territory for use in the Field. Further,
         nothing in this Agreement shall limit the right of Memory to use Memory
         Know-How for any

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         purpose not related to the making, using, offering for sale, selling or
         importing Products in the Territory for use in the Field.

2.2      Sublicense Rights. The rights and licenses granted to Roche under
         Section 2.1 shall include the right to grant sublicenses to its
         Affiliates and Third Parties under such rights and licenses, in whole
         or in part, solely to the extent necessary to make, use, offer for
         sale, sell or import Products in the Territory for use in the Field. If
         Roche grants such a sublicense, Roche shall ensure that all of the
         applicable terms and conditions of this Agreement shall apply to the
         Affiliate or Third Party sublicensee to the same extent as they apply
         to Roche for all purposes. Roche assumes full responsibility for the
         performance of all obligations and observance of all terms so imposed
         on such Affiliate or Third Party sublicensee and will itself account to
         Memory for all payments due under this Agreement by reason of such
         sublicense.

         Notwithstanding the above, Roche shall not have the right to sublicense
         the rights granted to Roche under Section 2.1 to any Third Party in a
         Major Market Country, except upon the prior written approval of Memory,
         which approval Memory shall not unreasonably withhold.

         Any sublicense may, at the written election of Memory, continue in full
         force and effect after the termination of any of the underlying
         licenses granted herein to Roche (the foregoing shall apply to a
         termination in whole or in part of such underlying licenses). Upon the
         licenses granted herein to Roche becoming fully paid up pursuant to
         Section 16.1(b), any and all sublicenses granted by Roche similarly
         shall become fully paid up as to Memory.

2.3      Memory Co-Promotion Right. If Roche wishes to offer a right to
         co-promote a Product to a Third Party for the United States of America,
         then Roche shall first present an offer to Memory for such rights.
         Memory shall have a right to enter into good faith negotiations with
         Roche for up to ninety (90) days from the date Memory receives the
         offer, provided Memory can provide a capable established sales force or
         equivalent alternative. If, at the end of the ninety (90) day period,
         the Parties have been unable to reach an agreement granting Memory
         co-promotion rights in the United States of America, then Roche shall
         be free to offer the rights to a Third Party, provided that Roche shall
         not make an offer more favorable to any such Third Party than the offer
         last made to Memory by Roche without first giving Memory at least
         thirty (30) days to accept such more favorable offer if Memory can
         provide an established sales force or alternative having at least
         equivalent capability to the Third Party.

2.4      Products Containing Non-Memory Compounds. Roche represents, and Memory
         acknowledges, that prior to the date hereof Roche has, or during the
         Agreement Term Roche may have rights in or to Non-Memory Compounds,
         whether by reason of its own conception, or acquired under agreement
         with a Third Party. Memory shall have the right from time to time to
         request an inventory of Non-Memory Compounds, and Roche shall promptly
         provide Memory with such inventory. With respect to each Non-Memory
         Compound, Memory shall be entitled to receive the financial
         consideration from Roche as provided in Schedule C.

         Memory covenants not to sue Roche relating to any Non-Memory Compound,
         so long as Memory shall be entitled to receive the financial
         consideration with respect thereto under Schedule C, unless Roche is in
         breach of its obligations relating to Non-Memory Compounds under this
         Agreement.

2.5      Requirement to Divest. If Roche is required by a relevant government
         authority in a given country of the Territory to divest rights to a
         Memory Compound, Collaboration Compound, and/or Product, not yet
         Launched in such country, then Roche shall use its reasonable best
         efforts

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         to obtain authority to fulfill such requirement by returning rights to
         Memory to the Memory Compound, Collaboration Compound and/or Product
         without consideration to Memory or Roche (except as provided in Section
         16.4(c)) under the conditions of Section 16.4.

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                              ARTICLE 3. DILIGENCE

3.1      Diligence. Roche shall use reasonable diligence in proceeding with the
         development, including obtaining required Regulatory Approvals,
         manufacturing, marketing and sale of Products in the Major Market
         Countries.

         Reasonable diligence as used in this Agreement shall mean the same
         standard of effort as used by Roche, or in any case not less than
         common in the industry taken as a whole, in the research, development,
         clinical testing, manufacturing, marketing and sale of a product which
         (i) must receive regulatory approval in Major Market Countries and (ii)
         has similar potential as the Product, taking into account scientific,
         business and marketing and return on investment considerations. It is
         understood that such Product potential may change from time to time
         based upon changing scientific, business and marketing and return on
         investment considerations. The Parties also acknowledge that, even
         within the Major Market Countries, Roche (and its Affiliates) does not
         always seek to market its own products in every such country or seek to
         obtain regulatory approval in every such country or for every potential
         indication. As a result, the exercise by Roche of reasonable diligence
         is to be determined by judging its efforts taken as a whole in the
         following regions on a region-by-region basis (the regions being North
         America (US and Canada), Europe and Asia (Japan, China and Korea)).

         If Memory believes in good faith that Roche has failed to utilize
         reasonable diligence as required in the above paragraph, then Memory
         may give Roche written notice of such alleged failure, identifying the
         Product and region at issue and giving specific detailed reasons of
         such allegation. Within sixty (60) days following Roche's receipt of
         any such notice from Memory ("Response Period"), Roche shall have the
         right to provide Memory with a written response specifying, in
         reasonable detail, how it has used reasonable diligence as required in
         the above paragraph.

         If Roche has failed to provide within the Response Period a written
         response, in reasonable detail, indicating the manner in which it is in
         compliance with its obligations under this Section 3.1 or in which it
         has remedied any breach thereof, or Roche has failed within the
         Response Period to remedy any breach of its obligations under this
         Section 3.1, then Memory shall have the right to terminate this
         Agreement, in whole or in part, as described below in this Section 3.1,
         upon written notice to Roche effective as of the end of the Response
         Period. Memory shall have the right to terminate this Agreement as to
         any region described above if Roche fails to comply with its
         obligations under this Section 3.1 with respect to the Products (taken
         as a whole) in such region. Memory shall have the right to terminate
         this Agreement in the Territory with respect to any Product if Roche
         fails to comply with its obligations under this Section 3.1 for such
         Product in at least two of the three regions described above. Memory
         shall have the right to terminate this Agreement in its entirety if
         Roche fails to comply with its obligations under this Section 3.1 for
         the Products (taken as a whole) in at least two of the three regions
         described above.

         In the event of a dispute between the Parties with respect to whether
         Roche has complied with its obligation under this Section 3.1, then
         such dispute shall be resolved in accordance with Article 17. The
         consequences of any termination under this Section shall be as set
         forth in Section 16.4 and Article 17.

3.2      Effect of Merger on Diligence. If (i) substantially all of the
         pharmaceutical business of Roche becomes merged or acquired or (ii)
         Roche acquires substantially all of the pharmaceutical business of an
         entity having an average annual pharmaceutical pre-clinical research
         expenditure in excess of [*] per year, then at any time during the
         period from a public announcement by

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         Roche of its intention to effect such merger or acquisition
         ("Transaction") through [*] after the closing of such Transaction,
         Memory shall have the right to request in writing to the Head of Global
         Pharmaceuticals of Roche a status of and future plans for the progress
         of development and commercialization of Products ("Status Request").
         This right may be exercised by Memory not more than [*].

         If, following a Status Request, Memory believes in good faith that
         Roche has failed to progress development and commercialization of
         Products solely because of the Transaction, then Memory may give Roche
         written notice of such alleged failure, identifying the Product and
         region at issue and giving specific detailed reasons of such
         allegation. Within [*] following Roche's receipt of any such notice
         from Memory ("Status Response Period"), Roche shall have the right to
         provide Memory with a written response specifying, in reasonable
         detail, how the Transaction per se has not had any negative impact on
         such development and commercialization progress.

         If Roche has failed to provide within the Status Response Period a
         written response, in reasonable detail, indicating the manner in which
         development and commercialization of Products has not failed to
         progress solely because of the Transaction or in which it has remedied
         any such failure, or Roche has failed within the Status Response Period
         to remedy any such failure to progress, then Memory shall have the
         right to terminate this Agreement, in whole or in part, as described
         below in this Section 3.2, upon written notice to Roche effective as of
         the end of the Status Response Period. Memory shall have the right to
         terminate this Agreement as to any region described in Section 3.1 if
         development and commercialization of the Products has failed to
         progress solely because of the Transaction with respect to the Products
         (taken as a whole) in such region. Memory shall have the right to
         terminate this Agreement in the Territory with respect to any Product
         if development and commercialization of such Product has failed to
         progress solely because of the Transaction in at least two of the three
         regions described in Section 3.1. Memory shall have the right to
         terminate this Agreement in its entirety if development and
         commercialization of the Products (taken as a whole) has failed to
         progress solely because of the Transaction in at least two of the three
         regions described in Section 3.1.

         The Parties confirm and agree that nothing in this Section 3.2 limits
         the obligations of Roche or the rights of Memory under Section 3.1.

                          ARTICLE 4. PAYMENTS TO MEMORY

4.1      Payment for Platform Technology. Roche shall pay Memory a total of
         thirteen million dollars ($13,000,000), which shall be non-refundable
         and non-creditable, and due and payable as follows:

         Event                                        Payment (mio US$)
         -----                                        -----------------

         The Effective Date                                   8

         JLT decides on MEM 1414                              2
         as a Clinical Candidate for
         Alzheimers' disease

         [*]                                                 [*]

         [*]                                                 [*]

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         Each payment in this Section 4.1 shall be due and payable by Roche
         within thirty (30) days after occurrence of the applicable Event
         (except that the payment of $8,000,000 payable on the Effective Date
         shall be paid within fifteen (15) calendar days of the occurrence of
         the Effective Date) Notwithstanding anything to the contrary, Roche
         will make each of such payments only once, for the first occurrence of
         a respective Event, regardless of how many times the Event may be
         achieved.

4.2      CRO Reimbursement. Roche shall promptly reimburse Memory the actual
         amount of payments by Memory to contract research organizations
         ("CROs") for MEM1414, not to exceed one million five hundred thousand
         dollars (US $1,500,000). Such reimbursement shall only apply to amounts
         previously paid in respect of the 10 kilogram GMP MEM1414 batch
         produced by MediChem Research Inc., or hereafter paid to any CRO for
         MEM1414. Such reimbursement shall not become due and payable from Roche
         to Memory in any amount until after the JLT analyzes the relevant study
         reports from the CROs.

4.3      Development Event Based Payments.

         (a)      Neurological Indications. Roche shall pay to Memory the
                  following non-refundable and non-creditable payments upon the
                  first occurrence of the following Events for a Product.

(i)      First Product

#        Event                                 Payment (mio US$)
         -----                                 -----------------

1.       [*]                                          [*]

2.       [*]                                          [*]

3.       [*]                                          [*]

4.       [*]                                          [*]

5.       [*]                                          [*]

6.       [*]                                          [*]

7.       [*]**                                        [*]

8.       [*]                                          [*]

**       For the US, the Product should not have a black box warning in its
         label at time of Launch and should not receive one during its first 6
         months on the market. During that period there should not be any "Dear
         Doctor" letters issued by the US FDA regarding this Product. In the US,
         the Product is the first or second non-achetylcholinesterase inhibitor
         (AChEI) having regulatory approval for the treatment of mild to
         moderate dementia of the Alzheimer's type or MCI, and a third non-AchEI
         having regulatory approval for the treatment of mild to moderate
         dementia of the Alzheimer's type or MCI does not launch in the US
         during the 6 month period following the Launch of the Product in the
         US.

(ii)     Second Product

         Roche shall pay to Memory the following non-refundable and
         non-creditable payments upon the first occurrence of the following
         Events for a Product having an NCE that is different from an NCE for
         which any payment occurred under Section 4.3(a)(i).

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         Event                                                Payment (mio US$)
         -----                                                -----------------

         [*] for a Neurological Indication                        [*]

         [*] for a Neurological Indication                        [*]

         [*] for a Neurological Indication                        [*]

         [*] for a Neurological Indication                        [*]

         [*] for a Neurological Indication                        [*]

         (b)      Psychiatric Indications. Roche shall pay to Memory the
                  following non-refundable and non-creditable payments upon the
                  first occurrence of the following Events for a Product having
                  an NCE that is different from an NCE for which any payment
                  occurred under Sections 4.3(a).

         Event                                                Payment (mio US$)
         -----                                                -----------------

         [*] for depression                                       [*]

         [*] for depression                                       [*]

         [*] for depression                                       [*]

         [*] for depression                                       [*]

         [*] for depression                                       [*]

         [*] for depression                                       [*]

         [*] for depression                                       [*]

         [*]**                                                    [*]

         [*] for anxiety                                          [*]

**       In the US, the Product does not have a black box warning in its label
         at time of Launch and does not receive one during its first 6 months on
         the market in the US. During that period there is not any "Dear Doctor"
         letters issued by the US FDA regarding this Product. The Product is the
         first PDE4 inhibitor having regulatory approval in the US for the
         treatment of depression, and a second PDE4 inhibitor having regulatory
         approval for the treatment of depression does not launch in the US
         during the 6 month period following the Launch of the Product in the
         US.

         (c)      Other Indications. Roche shall pay to Memory the following
                  non-refundable, non-creditable payments upon the first
                  occurrence of the following Events for a Product having an NCE
                  that is different from those NCE's for which any payment
                  occurred under Sections 4.3(a) and/or 4.3(b).

         Event                                                Payment (mio US$)
         -----                                                -----------------

         [*] for an Other Indication                              [*]

         [*] for an Other Indication                              [*]

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         [*] for an Other Indication                              [*]

         [*] for an Other Indication                              [*]

         [*] for an Other Indication                              [*]

         (d)      Each payment in Section 4.3(a)(i), 4.3(a)(ii), 4.3(b) and
                  4.3(c) shall be due and payable by Roche within thirty (30)
                  days after occurrence of the applicable Event. Roche will make
                  each of such payments only once, for the first occurrence of a
                  respective Event, regardless of how many times the Event may
                  be subsequently achieved with a Product. An Event shall be
                  deemed to have occurred regardless of whether a Product or a
                  Non-Memory Compound first achieved the Event.

         (e)      For the avoidance of doubt, the Parties confirm and agree that
                  no amount payable under this Article 4 shall reduce any
                  royalties payable under Article 5.

                              ARTICLE 5. ROYALTIES

5.1      Royalties.

         (a)      Roche shall pay to Memory the following payments for a given
                  Product having a Regulatory Approval in the US for a
                  Neurological Indication, based upon the Net Sales of such
                  Product in the US, which such Net Sales shall be subject to
                  adjustment as provided in this Article 5. Such royalty
                  payments shall be calculated by multiplying the following
                  percentages by the following annual Net Sales of such Product
                  in the US (all Net Sales amounts in $ US million):

--------------------------------------------------------------------------------
  ANNUAL US NET SALES                          PERCENT (%) OF NET SALES
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------

         By way of illustration, assume in calendar year 2012 that (i) Net Sales
         of the Product in the US total $950,000,000 and (ii) no adjustments or
         deductions to payments under this Article 5 apply. The royalties due
         and payable by Roche to Memory for such Net Sales would be $[*],
         calculated as follows:

--------------------------------------------------------------------------------
US NET SALES             APPLICABLE SALES-BASED          AMOUNT PAYABLE
  (IN MILLIONS)            PAYMENT PERCENTAGE             (IN MILLIONS)
--------------------------------------------------------------------------------
[*]                               [*]                           [*]
--------------------------------------------------------------------------------
[*]                               [*]                           [*]
--------------------------------------------------------------------------------
[*]                               [*]                           [*]
--------------------------------------------------------------------------------
[*]                               [*]                           [*]
--------------------------------------------------------------------------------
[*]                                                             [*]
--------------------------------------------------------------------------------

         Notwithstanding the foregoing, if for a given Product there is no
         Regulatory Approval in the US for a Neurological Indication, then,
         Roche shall pay to Memory the following payments for such Product,
         based upon the Net Sales of such Product in the US, which such Net
         Sales shall be subject to adjustment as provided in this Article 5.
         Such royalty

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         payments shall be calculated by multiplying the following percentages
         by the following annual Net Sales of such Product in the US (all Net
         Sales amounts in $ US million):

--------------------------------------------------------------------------------
  ANNUAL US NET SALES                          PERCENT (%) OF NET SALES
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------

(b)      Roche shall pay to Memory the following payments for a given Product
         having a Regulatory Approval in Europe for a Neurological Indication,
         based upon the Net Sales of such Product in all countries of the
         Territory other than the US ("ROW Territory"), which such Net Sales
         shall be subject to adjustment as provided in this Article 5. Such
         royalty payments shall be calculated by multiplying the following
         percentages by the following annual worldwide Net Sales of such Product
         in the ROW Territory (all Net Sales amounts in $ US million):

--------------------------------------------------------------------------------
 ANNUAL ROW TERRITORY NET SALES                 PERCENT (%) OF NET SALES
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------

         Notwithstanding the foregoing, if for a given Product there is no
         Regulatory Approval in Europe for a Neurological Indication, then,
         Roche shall pay to Memory the following payments for such Product,
         based upon the Net Sales of such Product in the ROW Territory, which
         such Net Sales shall be subject to adjustment as provided in this
         Article 5. Such royalty payments shall be calculated by multiplying the
         following percentages by the following annual worldwide Net Sales of
         such Product in the ROW Territory (all Net Sales amounts in $ US
         million):

--------------------------------------------------------------------------------
 ANNUAL ROW TERRITORY NET SALES                PERCENT (%) OF NET SALES
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------
[*]                                            [*]
--------------------------------------------------------------------------------

         Any reduction in royalty rates provided for in this Section 5.1 by
         reason of not having a Regulatory Approval for a Neurological
         Indication shall cease after the relevant Regulatory Approval for a
         Neurological Indication is obtained and for so long as it is
         maintained.

5.2      Term of Royalty Payments. Roche shall calculate and make royalty
         payments to Memory under this Article 5 commencing on Launch in any
         country. The Net Sales of a given country shall be included for
         purposes of calculating royalties under this Section until the later of
         (a) expiration of the last to expire of Composition of Matter Claim in
         such country and (b) ten (10) years from the Launch of such Product in
         such country. With respect to the ten (10) year period, the EU will be
         considered as one country.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

5.3      Adjustments Related to Valid Claims. For a given Product, if in, or
         with respect to, a country of the Territory no Valid Claim Covers such
         Product, then Roche may calculate royalties for such Product using only
         [*] percent ([*]%) of the amount Roche would have used for such country
         to calculate royalties for such Product if a Valid Claim Covered such
         Product in such country unless prior to ten years from the Launch of
         such Product in, or with respect to, such country (EU considered as one
         country) a Valid Claim Covering such Product exists in, or with respect
         to, such country in which case Roche shall resume calculating royalties
         using [*] percent ([*]%) of such amount.

5.4      Adjustments Related to Third Party Competition. For a given Product in
         a given calendar quarter, if in a country of the Territory (a) a Third
         Party is selling Bioequivalent Product, and (b) Roche has an obligation
         to make payments under this Agreement with respect to Net Sales of the
         given Product in such country, and (c) a Valid Claim Covers the given
         Product in such country and (d) in such country, sales of units of
         Bioequivalent Products in aggregate total at least [*] percent ([*]%)
         of the aggregate sales of units of Bioequivalent Products and Products
         as measured at the end of such calendar quarter, and (e) Roche has, if
         it is reasonable under the circumstances, brought in the country and
         continued to diligently prosecute a patent infringement suit under any
         relevant Composition of Matter Claims against the Third Party or
         another in privity, then Roche shall have the right to calculate
         royalties with respect to such calendar quarter by including only [*]
         percent ([*]%) of the amount Roche would have otherwise included for
         such country to calculate sales-based payments if no Bioequivalent
         Product existed in such country.

5.5      Adjustments Related to Third Party Payments. Roche or its Affiliate
         shall pay and be responsible for the entire consideration owed to any
         Third Party pursuant to the terms of any existing or future patent
         licensing agreement relating to Product. Roche shall have the right to
         deduct a maximum of [*] percent ([*]%) of the consideration actually
         paid by Roche or its Affiliate to a Third Party (other than [*] or [*]
         with respect to license under a patent which Covers the molecule per se
         of the PDE4 inhibitor that is included in a given Product, from
         payments otherwise due and payable by Roche to Memory under this
         Agreement. In no event as a result of this Section 5.5 shall Roche
         reduce the royalties owed to Memory under this Article 5 by greater
         than [*] percent ([*]%) of Net Sales in the Territory for a given
         calendar quarter (and Roche shall be entitled to accumulate amounts not
         permitted to be deducted in a prior period and deduct such amounts in a
         future period).

         Notwithstanding the above, (i) any payment owed under an agreement
         between Memory and The Trustees of Columbia University dated July 22,
         1998, as it may be amended, shall be the sole responsibility of Memory,
         and (ii) any payment owed under any agreement between Roche or its
         Affiliate and any Third Party entered into prior to the Effective Date
         shall be the sole responsibility of Roche, for which Roche shall not be
         entitled to any deduction from payments due and payable to Memory under
         this Agreement.

5.6      Bonus Royalty. Roche shall pay to Memory a one-time, non-refundable and
         non-creditable amount after the first occurrence of the following event
         with respect to Product having Regulatory Approval in the US for a
         Neurological Indication:

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         Event                                            Payment (US$)
         -----                                            -------------

         Net Sales in the US                              [*]
         exceeds [*] dollars ($[*])
         for a full calendar year
           (Jan 1 - Dec. 31)
         during the Agreement Term.

         Roche shall pay to Memory a one-time, non-refundable and non-creditable
         amount after the first occurrence of the following event with respect
         to a Product:

         Event                                            Payment (US$)
         -----                                            -------------

         Net Sales in the US                              [*]
         exceeds [*] dollars ($[*])
           for a full calendar
         year (Jan 1 - Dec. 31)
         during the Agreement Term.

         Each payment in this Section 5.6 shall be due and payable by Roche
         within thirty (30) days after occurrence of the applicable Event.
         Notwithstanding anything to the contrary, Roche will make each of such
         payments only once, for the first occurrence of a respective Event with
         a Product, regardless of how many times the Event may be achieved.

5.7      Combination Products. In the event Roche or its Affiliates intend to
         sell a Combination Product, the Parties shall meet approximately one
         (1) year prior to the anticipated commercial launch of such Combination
         Product to negotiate in good faith and agree to an appropriate
         adjustment to Net Sales to reflect the relative significance and value
         of the Product and the other pharmaceutically active agent(s) contained
         in the Combination Product. If, after good faith negotiations (not to
         exceed ninety (90) days), the Parties cannot agree to an appropriate
         adjustment, Net Sales shall equal Net Sales of the Combination Product
         multiplied by a fraction, the numerator of which is the reasonable fair
         market value of the Product and the denominator of which is the
         reasonable fair market value in the aggregate, of all pharmaceutically
         active agents contained in the Combination Product.

5.8      Mechanisms for Adjustments. In no event shall any adjustments pursuant
         to Sections 5.3, 5.4 and/or 5.5 result in Memory receiving royalties
         for a given calendar quarter pursuant to Section 5.1 in amount less
         than [*]% of the amounts set forth therein as if no adjustment (s) had
         been made. If Roche obtains a license to a PDE4 inhibitor from a Third
         Party and includes such PDE4 inhibitor in a Product, as a result of
         which the Product becomes a Combination Product, Roche shall not be
         entitled to an adjustment pursuant to Section 5.5 as a result of such
         license.

                     ARTICLE 6. PAYMENT, REPORTING, AUDITING

6.1      Currency and Conversion.

         (a)      All payments under this Agreement shall be in U.S. Dollars by
                  wire transfer of immediately available funds in accordance
                  with instruction or instructions from the Party being paid.

         (b)      Whenever calculation of Net Sales requires conversion from any
                  foreign currency, Roche shall convert the amount of Net Sales
                  in foreign currencies as computed in Roche's central Swiss
                  Francs Sales Statistics for the countries concerned, using for
                  internal foreign currency translation Roche's then current
                  standard practices actually used on a consistent basis in
                  preparing its audited financial statements.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         (c)      For sublicensees in a country, when calculating the Net Sales,
                  the sublicensee shall report to Roche the amount of such sales
                  within thirty (30) days from the end of the reporting period,
                  after having converted each applicable monthly sales in
                  foreign currency into Swiss Francs using the average rate of
                  exchange published in the Wall Street Journal (or some other
                  source agreed upon by the Parties for any particular country)
                  for each respective month of the reporting period.

6.2      Payments. After the Launch of the Product in any country of the
         Territory, Roche shall calculate royalty payments set forth in Article
         5 quarterly as of March 31, June 30, September 30 and December 31 (each
         being the last day of a reporting period). Roche shall pay such
         payments quarterly within sixty (60) days after the end of each
         reporting period in which Net Sales occur during the Agreement Term.

         With each such payment, Roche shall deliver to Memory the following
         information split among U.S., Europe and rest of world:

         (a)      Adjusted Gross Sales for each Product;

         (b)      Net Sales for each Product;

         (c)      the royalty payments due to Memory for the reporting period;

         If Memory reasonably requests additional information relating to gross
         sales of the Products in the Major Market Countries (excluding China
         and Korea), deductions therefrom to calculate Adjusted Gross Sales or
         Net Sales and/or adjustments thereto, Roche agrees to provide such
         information to Memory within a reasonable time, provided, that Memory
         shall have the rights to exercise such requests not more than once
         during any period of twelve (12) consecutive months.

         In the event Roche does not pay Memory any amounts due under this
         Agreement, including pursuant to Articles 4 and 5, within the
         applicable time period set forth herein, without limiting Memory's
         rights under Article 16, such payment shall bear interest, to the
         extent permitted by applicable law, at the rate of interest (prime
         rate) as published in the weekly Federal Reserve H.15 bulletin plus
         [*]% (or a successor or similar publication) from time to time, for the
         applicable period calculated on the number of days such a payment is
         overdue.

6.3      Taxes.

         (a)      Memory shall pay all applicable taxes levied on Memory under
                  this Agreement.

         (b)      If provision is made in law or regulation of any country for
                  withholding of taxes of any type, levies on Memory or other
                  charges against Memory with respect to any amounts payable
                  under this Agreement to Memory, Roche shall promptly pay such
                  tax, levy or charge for and on behalf of Memory to the proper
                  governmental authority, and shall promptly furnish Memory with
                  receipt of such payment. Roche shall have the right to deduct
                  any such tax, levy or charge actually paid from payment due
                  Memory or be promptly reimbursed by Memory if no further
                  payments are due Memory. Each Party agrees to assist the other
                  Party in claiming exemption from such deductions or
                  withholdings under double taxation or similar agreement or
                  treaty from time to time in force and in minimizing the amount
                  required to be so withheld or deducted.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

6.4      Blocked Countries. If by reason of law Roche is unable to convert to
         U.S. Dollars a portion of the amount due by Roche under this Agreement,
         then Roche shall notify Memory in writing and, upon written request
         from Memory, Roche shall pay to Memory such portion, in the currency of
         any other country designated by Memory and legally available to Roche.

6.5      Accounting.

         (a)      Roche shall maintain and cause its Affiliates and sublicensees
                  to maintain books of account containing all particulars that
                  may be necessary for the purpose of calculating all payments
                  under this Agreement. Such books of account shall be kept at
                  their principal place of business. Memory shall have the right
                  to engage Roche's independent, certified public accountant to
                  perform, on behalf of Memory, an audit of such books and
                  records of Roche and its Affiliates and sublicensees as is
                  necessary to confirm any amounts payable to Memory under this
                  Agreement for the period or periods requested by Memory and
                  the correctness of any report or payments made under this
                  Agreement.

         (b)      Such audits shall be conducted during normal business hours
                  upon reasonable prior written notice from Memory (minimum of
                  thirty (30) days) in such a manner as to not unnecessarily
                  interfere with Roche's normal business activities, and shall
                  include results of no more than three (3) preceding calendar
                  years prior to audit notification.

         (c)      Such audit shall not occur more frequently than once per
                  calendar year nor more frequently than once with respect to
                  records covering any specific period of time. Notwithstanding
                  the preceding, if Memory reasonably believes, after reviewing
                  information received from Roche's independent public
                  accountant, that an additional audit is appropriate to address
                  an apparent discrepancy between Roche's returns and other
                  information as is necessary for reporting hereunder, Memory
                  shall have the right, by an audit specialty firm reasonably
                  acceptable to Roche, employed by Memory and at Memory's own
                  expense, to perform such appropriate audit procedures.

         (d)      The use of all information, data, documents and abstracts
                  referred above shall be for the sole purpose of verifying
                  statements or compliance with this Agreement, shall be treated
                  as Roche Confidential Information subject to Article 15 of
                  this Agreement and, except in the event of a dispute between
                  the Parties regarding amounts payable hereunder or the results
                  of any audit, need not be retained more than three (3) years
                  from the end of the calendar year to which each shall pertain.
                  Audit results shall be shared by Roche and Memory.

         (e)      If any audit hereunder reveals an underpayment, Roche shall
                  promptly make up such underpayment. If any audit hereunder
                  reveals an overpayment, Memory shall promptly reimburse such
                  overpayment. Memory shall bear the full cost of any audit
                  under this Section 6.5, unless such audit discloses an
                  underpayment by Roche of more than [*] percent ([*]%) of the
                  amount owed hereunder if Net Sales exceeds [*] dollars ($[*])
                  in the Territory for the calendar year, or [*] percent ([*]%)
                  of the amount owed hereunder if Net Sales are equal to or less
                  than [*] dollars ($[*]) in the Territory for the calendar
                  year, in which case Roche shall bear the full cost of such
                  audit as performed by Roche's independent, certified public
                  accountant and any audit specialty firm employed by Memory,
                  together with interest on any such underpayment from the date
                  otherwise due through the date of payment at the rate set
                  forth in Section 6.2.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         (f)      The failure of Memory to request verification of any payment
                  calculation during which corresponding records are required to
                  be retained under this Section 6.5 shall be considered
                  acceptance of such reporting by Memory.

                      ARTICLE 7. THE RESEARCH COLLABORATION

7.1      The Research Collaboration

         (a)      The Parties agree to conduct a Research Collaboration in
                  accordance with the Research Workplan. The goal of the
                  Research Collaboration shall be to (1) deliver to Roche an IND
                  package for the lead Memory Compound MEM1414 and (2) identify
                  back-up and follow-up Memory Compounds and Collaboration
                  Compounds for MEM1414, and identify a lead compound for
                  depression, as well as back-up compounds.

         (b)               (i) The original term of the Research Collaboration
                           shall be for a period of two (2) years from the
                           Effective Date of this Agreement ("Original Term"),
                           unless this Agreement is terminated sooner in
                           accordance with Article 16. Except as provided in
                           Article 16, neither Party may terminate the Research
                           Collaboration.

                           (ii) The Original Term of the Research Collaboration
                           may be extended by mutual written agreement prior to
                           the expiration of the Original Term. During such
                           extension, the Research Collaboration will explore
                           potential applications of Products for other
                           therapeutic areas such as respiratory disease, in
                           addition to those goals of the Original Term.

                           (iii) The total time period during which the Research
                           collaboration is ongoing, including any extensions of
                           the Original Term, is the "Research Term."

7.2      Joint Liaison Team. A Joint Liaison Team ("JLT") shall govern the
         Research Collaboration by overseeing two subteams: (1) a subteam for
         developing an IND package for the lead compound MEM1414 and (2) a
         subteam for developing back-up and follow-up compounds for Neurological
         Indications; developing lead compounds for Psychiatric Indications as
         well as back-up compounds for Psychiatric Indications; and commencing
         to explore potential applications of Memory Compounds and Collaboration
         Compounds for other therapeutic areas such as respiratory disease.

         (a)      Organization. The JLT shall consist of six (6) members, three
                  (3) members to be designated by Roche and three (3) members to
                  be designated by Memory. Each Party shall notify the other
                  Party of the member(s) designated by such Party, in writing,
                  within thirty (30) days after the Effective Date. The
                  Committee shall function only during the Research Term unless
                  otherwise agreed by the Parties. Any Party may withdraw the
                  designation of any of its members of the JLT and designate a
                  replacement at any time by giving prior written notice of the
                  withdrawal and identifying the replacement to the other Party.
                  The chairperson of the JLT shall be from Roche.

         (b)      Meetings. The JLT shall hold quarterly meetings on mutually
                  agreeable dates during the Research Term, with the location of
                  the meetings to alternate between Memory and Roche, or their
                  Affiliate's, facilities. The frequency and location of such
                  meetings may be modified by mutual agreement of the Parties.
                  Notwithstanding the foregoing, two of the quarterly meetings
                  per year may be held by videoconference. Each Party shall pay
                  its

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  own expenses associated with the meeting. Each Party may, in
                  its discretion, invite non-member employees ("invitee") to
                  attend meetings of the JLT.

                  The JLT shall meet in January, 2003 to analyze relevant study
                  reports from the CROs, as contemplated by Section 4.2.

                  The JLT shall meet in January, 2003 to decide if MEM1414 is a
                  Clinical Candidate.

         (c)      Decision-Making. Decisions of the JLT shall be by consensus,
                  with each Party having one collective vote. If the JLT is
                  unable to decide a matter by consensus, the Parties shall
                  refer such matter for resolution to the Head of Global
                  Research on behalf of Roche and the Chief Scientific Officer
                  of Memory ("Research Collaboration Executives"). If the
                  Research Collaboration Executives are unable to resolve any
                  such matter after good faith discussions, then the final
                  decision shall rest with Roche, provided that no such decision
                  on any matter may have the effect of increasing the economic
                  burdens, including FTE burdens of Memory (except for any
                  increases which in the aggregate are immaterial).

7.3      Research Support. For the Original Term, Roche shall pay to Memory a
         total of seven million dollars (US $7,000,000), which amount shall be
         non-refundable and non-creditable, and which will be due and payable in
         eight (8) equal installments of eight hundred and seventy five thousand
         dollars (US $875,000) per installment, each installment due and payable
         within thirty (30) days after (1) the first day of each calendar
         quarter during the Original Term and (2) receipt by Roche of an invoice
         for such sums. If the Effective Date of this Agreement is July 31,
         2002, the first payment and the last payment under this Section shall
         be due and payable respectively within thirty (30) days after (1)
         October 1, 2002/July 1, 2004 and (2) receipt by Roche of an invoice for
         such sum.

7.4      Research Collaboration Activities. Subject to the oversight of the JLT,
         during the Research Term each Party shall diligently conduct, at its
         cost except as provided in Section 7.3, those research activities that
         are assigned in the Research Workplan. At no cost to Roche, except as
         provided for in Sections 4.2 and 7.3, Memory shall use all reasonable
         best efforts to maintain in full force and effect all agreements and
         relationships with Third Parties in effect as of the Effective Date so
         that there is no interruption in the development of an IND package for
         MEM1414 during any transition from Memory to the JLT.

7.5      Progress Reports. At least fifteen (15) days prior to each quarterly
         meeting of the JLT, each subteam shall prepare written progress reports
         for the JLT summarizing progress to date in achieving the primary goals
         for the Research Collaboration, including an inventory of Collaboration
         Compounds, Collaboration Technology and Memory Compounds. Following
         each such meeting, the JLT shall prepare a report summarizing the
         discussions held and conclusions reached and setting forth plans for
         the Research Collaboration for the next three (3) months.

7.6      Acknowledgement of Obligations. Each Party will cause each of its and
         its Affiliates FTEs, as specified in the Research Workplan, prior to
         and as a condition of becoming a member of the Research Collaboration,
         to review and acknowledge in writing that they understand and agree to
         abide by the terms and conditions of this Agreement related to the
         Research Collaboration (Article 7), Intellectual Property (Article 13),
         Confidential Information (Article 15, specifically as related to
         non-disclosure and non-use restrictions).

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

7.7      Screening. During the Agreement Term Roche shall have the right to use
         Memory Compounds and Collaboration Compounds in Roche screening assays.

                         ARTICLE 8. CLINICAL DEVELOPMENT

8.1      Development. Roche, at its sole cost, shall (1) pursue clinical
         development of Products and (2) obtain all government and health
         authority approvals which are required for Products to be manufactured
         and offered for sale in the Territory, including authorizations as may
         be required for the production, importation, pricing, reimbursement,
         and sale of Products in the Territory.

8.2      Development Review Team.

         (a)      Development Review Team Membership. For given Product, no
                  later than thirty (30) days after development of an IND filing
                  package for the Product, the Parties shall establish a
                  Development Review Team consisting of up to three (3)
                  representatives from Roche and one (1) representative of
                  Memory. Each Party may select alternative representatives to
                  replace its Development Review Team members selected by such
                  Party as necessary, and may have other representatives attend
                  meetings of the Development Review Team in addition to the
                  representatives of the Team. All guidance provided by the
                  Development Review Team shall be based upon the majority
                  opinion of the Development Review Team.

         (b)      Development Review Team Meetings and Responsibilities. No less
                  than two times per year for so long as the Development Review
                  Team contemplates clinical development of a Memory Compound or
                  Collaboration Compound in the Territory for the purpose of
                  obtaining Regulatory Approval in a country of the Territory,
                  Roche shall organize meetings of the Development Review Team.

                  At its meetings, the Development Review Team shall conduct a
                  peer review of Roche's development of Products in the
                  Territory and shall provide Roche with strategic guidance with
                  respect to Roche's development of Products in the Territory.

                  Roche shall report to the Development Review Team on all
                  significant clinical and regulatory issues relating to
                  Products, and the Development Review Team shall make
                  recommendations and provide strategic guidance with respect to
                  such issues.

         (c)      Costs. Each party shall be responsible for bearing its own
                  costs related to the Development Review Team.

                          ARTICLE 9. REGULATORY AFFAIRS

Roche, at its sole cost, shall pursue all regulatory affairs in the Territory
related to Product, including the preparation and filing of applications for
Regulatory Approval, as well as any or all governmental approvals required to
manufacture, or have manufactured, and sell Products. Roche shall be responsible
for pursuing, compiling and submitting all regulatory filing documentation, and
for interacting with regulatory agencies, for all Products in all countries in
the Territory. Roche or its Affiliates shall own and file all regulatory filings
and Regulatory Approvals for all Products in all countries of the Territory.

Roche shall supply Memory with a copy of all material communications related to
Product to or from the regulatory agencies for all Major Market Countries (other
than China and Korea). Upon request of Memory, Roche shall supply Memory with a
copy of all such communications in all countries.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

Roche, at its sole cost, shall report to appropriate authorities in accordance
with local requirements all adverse events related to use of Products worldwide.
Adverse events related to the use of Product worldwide shall be in a single
database, centralized, held and owned by Roche. Roche shall notify Memory of
material adverse events related to Products.

                       ARTICLE 10. MANUFACTURE AND SUPPLY

10.1     Clinical Supplies of Product. Roche understands and acknowledges that
         as of the Effective Date, pursuant to an agreement with Memory,
         Medichem Research Inc. is providing Phase I clinical supply of MEM1414.
         Beyond the clinical supply provided by Memory through Medichem, Roche
         shall supply at its own cost all clinical supply of Product and placebo
         to be used in the Territory during the Agreement Term, either by
         itself, or through a Third Party. Memory shall use all reasonable best
         efforts to maintain in full force and effect all agreements and
         relationships with Third Parties in effect as of the Effective Date so
         Roche has uninterrupted access to non-clinical and Phase I clinical
         supply prior to and during any manufacturing transition from Memory to
         Roche during the Agreement Term, at no cost to Roche. In addition,
         Memory shall use its reasonable best efforts to cause transfer of a
         manufacturing transfer package to Roche to enable to Roche commence
         manufacture of MEM1414 in a timely manner.

10.2     Commercial Supply. Roche shall be solely and exclusively responsible at
         its own expense for the manufacture and supply of Product for sale in
         the Territory, either by itself or through Third Parties.

                          ARTICLE 11. COMMERCIALIZATION

11.1     Responsibilities of Roche. Except as expressly set forth in Section 2.3
         and Section 3.1, Roche, at its own expense, shall have sole
         responsibility and decision making authority for the marketing,
         promotion, sale and distribution of Product in the Territory. During
         the Agreement Term, upon written request of Memory not to exceed once
         per year, Roche will fully inform Memory regarding the
         commercialization of Products in the Territory by Roche, its Affiliates
         and sublicensees.

                             ARTICLE 12. TRADEMARKS

Roche shall own worldwide all trademarks on and in connection with Products, and
shall, at its cost, be responsible for procurement, maintenance and enforcement
of all worldwide trademarks registration on and in connection with Products.

        ARTICLE 13. OWNERSHIP OF INTELLECTUAL PROPERTY AND PATENT RIGHTS

13.1     Ownership of Intellectual Property.

         As between the Parties, Memory shall own all Memory Inventions, Roche
         shall own all Roche Inventions, and Memory and Roche shall jointly own
         all Joint Inventions. Except to the extent any Collaboration Technology
         is exclusively licensed by one Party to the other Party hereunder, each
         Party shall have the right to practice Collaboration Technology,
         including Inventions, and to grant licenses to Affiliates and Third
         Parties to such Collaboration Technology, without the other party's
         consent and without any duty to account to the other Party with respect
         thereto. Each Party shall require all of its employees to assign all
         inventions related to Products made by them to such Party.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

13.2     Patent Prosecution and Maintenance.

         (a)      Base Patents. Memory shall have the right, but not the
                  obligation, to prepare, file, prosecute (including
                  interference and opposition proceedings) and maintain
                  (including interferences, re-examination and opposition
                  proceedings) (collectively, "Handle") the Base Patents.

                  Memory shall use reasonable efforts to consult with Roche as
                  to the Handling of the Base Patents in sufficient time (for
                  example 30 days for instances where actions are due within 3
                  months of a communication from a Patent Office) before any
                  action is due to allow Roche to provide comments thereon,
                  which comments Memory must reasonably consider if provided to
                  Memory at least thirty (30) days before such action is due.

                  Should Memory decide that it does not desire to Handle a Base
                  Patent in a given country, it shall provide written notice to
                  Roche thereof no less than sixty (60) days prior to the date
                  when the Base Patent would become abandoned in such country.
                  After receiving such notice, Roche may, but is not obligated,
                  to Handle the Base Patent in such country.

                  (i)      Except as provided in Section 13.2 (a)(ii) and (iii)
                           below, Memory shall be responsible for payment of the
                           reasonable costs to Handle the Base Patents.

                  (ii)     Roche will assume and pay for the reasonable costs to
                           Handle any given Base Patents as described in
                           Schedule A as Memory 1, 2 and 3 in Europe from and
                           after national phase entry in Europe. For a given
                           Base Patent as described in Schedule A as Memory 1, 2
                           and 3 no less than three (3) months before PCT
                           national phase entry, Roche shall provide to Memory
                           in writing a list of countries, other than the US and
                           Europe, for which Roche requests that a national
                           phase entry be filed ("Other Countries"). Unless the
                           Parties otherwise agree after discussion in good
                           faith, such list shall include Japan and additional
                           countries, consistent with Roche's practices for
                           Roche's other potential products. Roche shall be
                           responsible for the payment of the reasonable costs
                           to Handle the Base Patents as described in Schedule A
                           as Memory 1, 2 and 3 in the Other Countries.

                  (iii)    For a given Base Patent in a given country for which
                           Roche shall be responsible under Section 13.2(a)(ii)
                           for the payment of the reasonable costs to Handle
                           such Base Patent, Roche may elect, at its option, to
                           discontinue the payment of such costs, upon giving at
                           least ninety (90) day's prior written notice to
                           Memory. At Memory's request, Roche shall advise to
                           the specific reasons for such decision. Memory may,
                           in its sole discretion, continue to Handle such Base
                           Patent in such country, at its own expense. If,
                           however, a Valid Claim of such Base Patent Covers a
                           Product in such country in which Roche Launches the
                           Product, Roche shall reimburse Memory for all
                           reasonable costs to Handle such Base Patent with
                           respect to such country.

         (b)      Inventions.

                  (i)      Priority Applications. Each Party promptly will
                           notify the other Party in writing ("Patent Notice")
                           of any Inventions on which it intends to file a
                           patent application.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                           Within sixty (60) days after receipt of the Patent
                           Notice, the Parties shall agree upon which Party
                           shall prepare and file a priority application
                           ("Invention Priority Application") Covering such
                           Invention. As a general rule, Memory shall prepare
                           and file an Invention Priority Application Covering
                           Memory Inventions and Roche shall prepare and file an
                           Invention Priority Application Covering Roche
                           Inventions. For a Joint Invention, if both Parties
                           wish to have an Invention Priority Application filed,
                           then the Parties shall agree upon a mutually
                           acceptable external patent counsel for such activity.

                           For purposes of this Article, the Party preparing and
                           filing an Invention Priority Application is a "Filing
                           Party" and the other Party is a "Non-Filing Party".
                           For a Joint Invention, the Parties shall agree which
                           shall be the Filing Party and which shall be the
                           Non-Filing Party on a case-by-case basis.

                           (A)      Subject to Subsection 13.2(b)(iii), and any
                                    other provision in this Article 13, the
                                    Non-Filing Party will reimburse the Filing
                                    Party for fifty percent (50%) of the
                                    reasonable and documented external costs for
                                    preparing, filing and prosecuting the
                                    Invention Priority Application and
                                    maintaining any resulting Patent Rights
                                    within forty-five (45) days of invoice by
                                    the Filing Party;

                           (B)      The Filing Party promptly will prepare and
                                    send to the Non-Filing Party a draft of the
                                    Invention Priority Application for the
                                    Non-Filing Party's comment and approval; and

                           (C)      The Non-Filing Party shall confirm receipt
                                    of the draft Invention Priority Application
                                    and provide its comments on the draft to the
                                    Filing Party within thirty (30) days after
                                    receipt thereof ("Comment Period").

                           After reasonably considering the Non-Filing Party's
                           comments, the Filing Party shall file the Invention
                           Priority Application. If the Non-Filing Party fails
                           to provide comments on a draft within the Comment
                           Period, the Filing Party shall be free to file the
                           Application at the end of the Comment Period or
                           later.

                           If Non-Filing Party does not timely notify the Filing
                           Party in writing of interest in a Invention Priority
                           Application, the Filing Party shall be free to file
                           the application at its sole expense and discretion.

                  (ii)     Corresponding Application in Foreign Countries.
                           Within nine (9) months after the filing of an
                           Invention Priority Application, the Filing Party
                           shall provide the Non-Filing Party a written list of
                           countries ("Country List") in which the Filing Party
                           intends to file patent applications that claim
                           priority from the given Invention Priority
                           Application. The Non-Filing Party, as promptly as
                           practicable, shall notify the Filing Party in writing
                           of those countries on the Country List and any
                           additional countries ("Additional Countries") where
                           the Non-Filing Party requests that patent
                           applications be filed. In turn, the Filing Party
                           promptly shall notify the Non-Filing Party if it
                           agrees with the filing of applications in such
                           Additional Countries selected by the Non-Filing
                           Party.

                           The Filing Party shall file patent applications at
                           least in those countries where the Non-Filing Party
                           and the Filing Party agree to the filing of patent

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                           applications ("Mutually Agreed to Countries") as well
                           as in Additional Countries selected by the Non-Filing
                           Party that are not within the Mutually Agreed to
                           Countries. The Filing Party shall have the option of
                           filing an international application designating at
                           least the Mutually Agreed to Countries, to be
                           followed by national filings in the desired
                           countries.

                           The Filing Party shall be responsible for the filing
                           and prosecution of the patent applications and the
                           maintenance of the granted patents as to the Mutually
                           Agreed to Countries. Subject to the provisions of
                           Section 13.2(b)(iii) as to the Mutually Agreed to
                           Countries, the Filing Party and the Non-Filing Party
                           each will pay fifty percent (50%) of the reasonable
                           external costs relating to the preparation, filing
                           and prosecution of the patent applications and the
                           maintenance of the granted patents.

                           As to those countries where the Non-Filing Party and
                           the Filing Party do not agree to the filing of patent
                           applications, the Party requesting the filing in said
                           country shall be responsible for all costs relating
                           to the filing and prosecution of the patent
                           applications and the maintenance of the granted
                           patents in said countries.

                           Should the Non-Filing Party not respond to the Filing
                           Party within thirty (30) days after the date the
                           Filing Party provides the Country List, then the
                           Filing Party shall be free to initiate patent
                           filings, at the Filing Party's sole expense and
                           discretion, in the countries the Filing Party has
                           selected or still selects.

                           The Filing Party's failure to notify the Non-Filing
                           Party to the contrary within thirty (30) days after
                           the date upon which the Non-Filing Party notifies the
                           Filing Party of the Additional Countries will be
                           deemed an agreement on the part of the Filing Party
                           to file patent applications in all such Additional
                           Countries and to pay fifty percent (50%) of the
                           reasonable external costs associated with such
                           filings.

                  (iii)    Withdrawal of Funding/Lack of Further Interest. If,
                           in a country, at any time, the Non-Filing Party
                           decides not to continue funding the prosecution of a
                           patent application or maintenance of a patent under
                           this Section 13.2, the Non-Filing Party shall notify
                           the Filing Party in writing ("Withdrawal Notice"),
                           and the Non-Filing Party shall be relieved from
                           paying any further expenses with regard to the patent
                           filing in the country. After receiving the Withdrawal
                           Notice, the Filing Party may but is not obligated, at
                           its sole expense and discretion, to continue to
                           prosecute and maintain the patent filing in the
                           country.

                           If, in a country, at any time, the Filing Party
                           decides not to continue the prosecution of a patent
                           application or maintenance of a patent under this
                           Section 13.2, and such patent application or patent
                           is not one as to which the Non-Filing Party has
                           already sent a Withdrawal Notice, then the Filing
                           Party shall notify the Non-Filing Party in writing no
                           less than sixty (60) days prior to the date when the
                           patent application or patent would become abandoned
                           in such country. At the Non-Filing Party's written
                           request and no cost to the Filing Party, the Filing
                           Party shall then assign to the non-Filing Party such
                           patent application or patent in such country, and the
                           Non-Filing Party may thereafter continue to prosecute
                           and maintain the patent filing in the country, at the
                           Non-Filing Party's own cost

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                           and in the Non-Filing Party's name, to the extent the
                           Non-Filing Party desires to do so

                           To the extent the provisions of this Section
                           13.2(b)(iii) conflict with any other provision of
                           this Section 13.2, this Section 13.2(b)(iii) shall
                           control.

                  (iv)     Copies of Communications with Patent Offices. For the
                           Mutually Agreed to Countries and Additional
                           Countries, the Filing Party shall consult with the
                           Non-Filing Party as to the prosecution and
                           maintenance of all patent applications and patents
                           claiming Inventions in sufficient time (for example
                           30 days for instances where actions are due within 3
                           months of a communication from a Patent Office)
                           before any action is due to allow the Non-Filing
                           Party to provide comments thereon, which comments the
                           Filing Party must reasonably consider.

13.3     Cooperation. The Parties agree to cooperate in the preparation,
         prosecution and maintenance of all patent applications filed under
         Article 13, including obtaining and executing necessary powers of
         attorney and assignments by the named inventors, providing relevant
         technical reports to the filing Party concerning the invention
         disclosed in such patent application, obtaining execution of such other
         documents which shall be needed in the filing and prosecution of such
         patent applications, discussing in good faith foreign filing strategy,
         and, as requested, updating each other regarding the status of such
         patent applications.

13.4     Infringement. Each Party shall promptly provide written notice to the
         other Party during the Agreement Term of any known infringement or
         suspected infringement of any Memory Patent Right or Collaboration
         Patent Right by a Third Party making, using, offering for sale,
         selling, or importing a PDE4 inhibitor or a product containing a PDE4
         inhibitor (collectively "PDE4 Infringement").

         Roche shall have the first right to bring and control any action or
         proceeding with respect to such PDE4 Infringement at its own expense
         and by counsel of its own choice, and Memory shall have the right, at
         its own expense, to be represented in any such action by counsel of its
         own choice. If Roche fails to bring any such action or proceeding with
         respect to PDE4 Infringement within (a) [*] days following the notice
         of alleged infringement or (b) [*] days before the time limit, if any,
         set forth in the appropriate laws and regulations for the filing of
         such actions, whichever comes first, Memory shall have the right to
         bring and control any such action at its own expense and by counsel of
         its own choice, and Roche shall have the right, at its own expense, to
         be represented in any such action by counsel of its own choice.

         A Party that elects to bring and control an infringement action
         pursuant to this Section 13.4 shall provide prompt written notice to
         the other Party of any such suit commenced or action taken by such
         Party.

         Upon written request, the Party bringing suit or taking action
         ("Initiating Party") shall keep the other Party informed of the status
         of any such suit or action and shall provide the other Party with
         copies of all substantive documents and communications filed in such
         suit or action. The Initiating Party shall have the sole and exclusive
         right to select counsel for any such suit or action.

         The Initiating Party shall, except as provided below, pay all expenses
         of the suit or action, including, without limitation, the Initiating
         Party's attorneys' fees and court costs. After deducting the Parties'
         attorneys fees and court costs in connection with any such suit or
         action,

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         any damages, settlement fees or other consideration received as a
         result of such suit or action shall belong to the Initiating Party,
         except to the extent such damages, settlement fees or other
         consideration are attributable to lost profits with respect to Products
         in the Territory, which shall form part of the Net Sales for
         determining amounts due to Memory in any calendar year.

         If the Initiating Party believes it reasonably necessary, upon written
         request to the other Party, the other Party shall join as a party to
         the suit or action but shall be under no obligation to participate
         except to the extent that such participation is required as the result
         of its being a named party to the suit or action. At the Initiating
         Party's written request, the other Party shall offer reasonable
         assistance to the Initiating Party at no charge to the Initiating Party
         except for reimbursement of reasonable out-of-pocket expenses incurred
         by the other Party in rendering such assistance. The other Party shall
         have the right to participate and have its own representation in any
         such suit or action at its own expense.

         The Initiating Party shall have the right to control settlement;
         provided, however, that no settlement shall be entered into without the
         written consent of the other Party, not to be unreasonably withheld.

         For the avoidance of doubt, Memory shall have the right, but not the
         obligation, to bring and control and action or proceeding with respect
         to any Memory Patent Right relating to infringement other than PDE4
         Infringement, at its own expense, without obligation or notice to
         Roche.

13.5     Hatch-Waxman. Notwithstanding anything to the contrary, should a Party
         receive a certification for a Product pursuant to the Drug Price
         Competition and Patent Term Restoration Act of 1984 (Public Law
         98-417), as amended, or its equivalent in a country other than the
         United States of America, then such Party shall immediately provide the
         other Party with a copy of such certification. Roche shall have [*]
         days from the date on which it receives or provides a copy of such
         certification to provide written notice to Memory ("H-W Suit Notice")
         whether Roche will bring suit, at its expense, within a [*] day period
         from the date of such certification. Should such [*] day period expire
         without Roche bringing suit or providing such H-W Suit Notice, then
         Memory shall be free to immediately bring suit in its name. If Roche
         brings suit, at Roche's written request, Memory agrees to be named as a
         party to such suit.

13.6     Patent Notices. All notices provided under this Article 13 to Roche
         shall be given to:

                  F.Hoffmann-La Roche Ltd
                  Grenzacherstrasse 124
                  CH-4070 Basel, Switzerland
                  Attn:    Head, Patent Law

         with copies of all notices relating to U.S. cases to:

                  Hoffmann-La Roche Inc.
                  340 Kingsland Street
                  Nutley, New Jersey 07110
                  Attn:    Chief Patent Counsel.

         All notices provided under this Article 13 to Memory shall be given to:

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  Memory Pharmaceutical Corp.
                  100 Philips Parkway
                  Montvale, New Jersey 07645
                  Attn: Head of Business Development

         With copies of all notices to:

                  Millen, White, Zelano and Branigan, P.C.
                  Arlington Courthouse, Plaza I
                  2200 Clarendon Blvd, Suite 1400
                  Arlington, Virginia 22201
                  Attn: Anthony Zelano, Esq.

                   ARTICLE 14. REPRESENTATIONS AND WARRANTIES

14.1     Representations and Warranties of Both Parties.

         (a)      Each Party warrants and represents to the other Party that it
                  has the full right and authority to enter into this Agreement
                  and that it is not aware of any impediment which would inhibit
                  its ability to perform the terms and conditions imposed on it
                  by this Agreement.

         (b)      Each Party represents and warrants that all of its FTEs, as
                  specified in the Research Workplan, and its Affiliates FTEs,
                  as specified in the Research Workplan, have entered into an
                  agreement with it or its Affiliate assigning to it or its
                  Affiliate all their rights to Inventions.

14.2     Representations and Warranties of Memory.

         (a)      Corporate Action. Memory represents and warrants to Roche that
                  all corporate action on the part of Memory, its officers,
                  directors and stockholders necessary for (i) the
                  authorization, execution and delivery of this Agreement and
                  (ii) the performance of all obligations of Memory hereunder
                  has been taken and this Agreement constitutes the legal and
                  binding obligation of Memory, enforceable against Memory in
                  accordance with its terms.

         (b)      No Conflict. Memory represents and warrants to Roche that the
                  execution of this Agreement and the performance of the
                  transactions contemplated by this Agreement by Memory will not
                  conflict with or result in a breach of any of the terms,
                  conditions or provisions of, or constitute a default under any
                  agreement or other instrument to which Memory is a party or by
                  which it or any of its property is bound.

         (c)      Right to Grant Licenses. Memory represents and warrants to
                  Roche that it has the right to grant Roche the licenses and
                  sublicenses that Memory hereby grants to Roche under this
                  Agreement.

         (d)      Third Party Patent Infringement. Memory represents and
                  warrants that as of the Effective Date, to its actual
                  knowledge of its senior executives, after consultation with
                  patent counsel, there is no issued patent right owned or
                  controlled by any Third Party which Covers the lead compound
                  identified by Memory to Roche (MEM1414) and would prevent
                  Roche from selling such Memory Compound in any country of the
                  Territory. As of the date hereof, the Base Patents are owned
                  exclusively by Memory and

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  Memory's senior executives, after consultation with patent
                  counsel, have no actual knowledge of any information that
                  would, in their opinion, render invalid and/or unenforceable
                  Composition of Matter Claims for MEM1414 in such Base Patents.

         (e)      No Material Mistatements. Memory warrants and represents to
                  Roche that (i) its senior executives have not intentionally
                  failed to disclose any information actually known to them
                  which in their reasonable opinion, would be material to Roche
                  entering into this Agreement, and to the actual knowledge of
                  such senior executives such information does not contain any
                  untrue statement of material fact or omit to state a material
                  fact; (ii) it has provided correct and complete copies of all
                  documents furnished to Roche.

14.3     Representations and Warranties of Roche. Roche represents and warrants
         to Memory that all corporate action on the part of Roche, its officers,
         directors and stockholders necessary for (i) the authorization,
         execution and delivery of this Agreement and (ii) the performance of
         all obligations of Roche hereunder has been taken and this Agreement
         constitutes the legal and binding obligation of Roche, enforceable
         against Roche in accordance with its terms. The execution of this
         Agreement and the performance of the transactions contemplated by this
         Agreement by Roche will not conflict with or result in a breach of any
         of the terms, conditions or provisions of, or constitute a default
         under any agreement or other instrument to which Roche is a party or by
         which it or any of its property is bound.

14.4     Disclaimer. THE FOREGOING REPRESENTATIONS AND WARRANTIES ARE IN LIEU OF
         ALL OTHER REPRESENTATIONS AND WARRANTIES NOT EXPRESSLY SET FORTH
         HEREIN. MEMORY AND ROCHE DISCLAIM ALL OTHER REPRESENTATIONS AND
         WARRANTIES, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO EACH OF THEIR
         RESEARCH, DEVELOPMENT AND COMMERCIALIZATION EFFORTS HEREUNDER,
         INCLUDING, WITHOUT LIMITATION, WHETHER THE PRODUCTS CAN BE SUCCESSFULLY
         DEVELOPED OR MARKETED, THE ACCURACY, PERFORMANCE, UTILITY, RELIABILITY,
         TECHNOLOGICAL OR COMMERCIAL VALUE, COMPREHENSIVENESS, MERCHANTABILITY
         OR FITNESS FOR ANY PARTICULAR PURPOSE WHATSOEVER OF THE PRODUCTS. IN NO
         EVENT SHALL EITHER MEMORY OR ROCHE BE LIABLE FOR SPECIAL, INDIRECT,
         INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT BASED
         ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY.

                      ARTICLE 15. CONFIDENTIAL INFORMATION

15.1     Treatment of Confidential Information. In carrying out rights and
         obligations under this Agreement, the Parties will be sharing
         proprietary information ("Confidential Information") with each other.
         Except as permitted by this Agreement, each Party shall and shall cause
         its Affiliates to treat Confidential Information received from the
         other Party as it treats its own proprietary information. In
         particular, it shall not disclose, divulge or otherwise communicate
         such Confidential Information to Third Parties, or use it for any
         purpose except pursuant to and in order to carry out its obligations
         under this Agreement during the Agreement Term and for a period of [*]
         years thereafter; provided that, each Party (i) may disclose the
         Confidential Information to such of its directors, officers, employees,
         Affiliates, consultants, subcontractors, sublicensees or agents to the
         extent reasonably necessary to carry out its obligations under this
         Agreement, and (ii) hereby agrees to exercise every reasonable
         precaution to prevent and restrain the unauthorized disclosure or use
         of Confidential Information.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

15.2     Release from Restrictions. The provisions of Section 15.1 shall not
         apply to any Confidential Information which:

         (a)      was known or used by the Receiving Party or its Affiliates
                  prior to its date of disclosure to the Receiving Party or its
                  Affiliates by the Disclosing Party or its Affiliates, as
                  evidenced by the prior written records of the Receiving Party
                  or its Affiliates; or

         (b)      either before or after the date of the disclosure to the
                  Receiving Party or its Affiliates, is lawfully disclosed to
                  the Receiving Party or its Affiliates by a Third Party
                  rightfully in possession of the Confidential Information; or

         (c)      either before or after the date of the disclosure to the
                  Receiving Party or its Affiliates, becomes published or
                  generally known to the public through no fault or omission on
                  the part of the Receiving Party or its Affiliates, but such
                  inapplicability applies only after such information is
                  published or becomes generally known; or

         (d)      is independently developed by the Receiving Party or its
                  Affiliates without reference to or reliance upon any
                  Confidential Information of the Disclosing Party or its
                  Affiliates; or

         (e)      is reasonably determined to be required to be disclosed by the
                  Receiving Party or its Affiliates to comply with applicable
                  securities of other laws, to defend or prosecute litigation or
                  to comply with governmental regulations, provided that, the
                  Receiving Party or its Affiliates uses all reasonable efforts
                  to provide prior written notice of such disclosure to the
                  Disclosing Party or its Affiliates and to take reasonable and
                  lawful actions to not be required to disclose and/or minimize
                  the degree of such disclosure.

         (f)      is disclosed to a Party's financial sources or potential
                  acquirors of its stock or assets (directly or indirectly) so
                  long as, with respect to a potential purchase the potential
                  acquirer or financial source executes a confidentiality
                  agreement which is at least as restrictive as the provisions
                  of this Article 15.

15.3     Exceptions. The restrictions set forth in this Article 15 shall not
         prevent either Party from (i) preparing, filing, prosecuting or
         maintaining a patent application or its resulting patents related to a
         Product in accordance with the terms of this Agreement or (ii)
         disclosing Confidential Information to governmental agencies to the
         extent required or desirable to secure government approval for the
         development or marketing of a Product.

15.4     Publications. During the Agreement Term, the following provisions shall
         apply with respect to the disclosure in scientific journals,
         publications or scientific presentations by any Party relating to any
         scientific work performed as part of the Research Collaboration:

         (a)      A Party (the "Publishing Party") shall provide the other Party
                  with a copy of any proposed publication relating to the work
                  performed and/or the results achieved in the conduct of the
                  Collaboration at least forty-five (45) days prior to
                  submission for publication so as to provide such other Party
                  an opportunity to recommend any changes it reasonably believes
                  are necessary to preserve the Confidential Information
                  belonging in whole or in part to such other Party, and the
                  incorporation of such recommended changes shall not be
                  unreasonably refused;

         (b)      If such other Party in writing notifies ("Notice") the
                  Publishing Party, within forty-five (45) days of receipt of
                  the copy of the proposed publication, that such publication in

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  its reasonable judgment (i) contains an Invention for which
                  the other Party reasonably desires patent protection or (ii)
                  disclosure to competitors could be expected to have a material
                  adverse effect on the commercial value of any Confidential
                  Information, the Publishing Party shall prevent such
                  publication or delay such publication for a mutually agreeable
                  period of time. In the case of Inventions, a delay shall be
                  for a period reasonably sufficient to permit the timely
                  preparation and filing of a patent application(s) or
                  application(s) on the Invention, and in no event less than
                  ninety (90) days from the date of Notice.

                        ARTICLE 16. TERM AND TERMINATION

16.1              (a) Conditions Subsequent. The effectiveness of this Agreement
                  and the transaction contemplated hereunder shall be subject to
                  and shall be contingent upon the satisfaction under the
                  following condition subsequent to the execution of this
                  Agreement by February 28, 2003. The condition subsequent shall
                  be the earlier to occur of (i) approval of the transaction by
                  the Federal Trade Commission or the appropriate US anti-trust
                  authorities or (ii) the expiration or termination of all
                  applicable waiting periods, requests for information ( and any
                  extensions thereof) under the Hart-Scott-Rodino Antitrust
                  Improvements Act of 1976.

                  Subject to the terms and conditions of this Agreement, each
                  Party shall use all reasonable efforts to take, or cause to be
                  taken, all reasonable actions and to do, or cause to be done,
                  all things necessary and appropriate to satisfy the condition
                  subsequent and to consummate the transactions contemplated by
                  this Agreement in accordance with the terms hereof.

                  Each Party shall cooperate with the other Party in the
                  preparation, execution and filing of all documents that are
                  required or permitted to be filed on or before the Effective
                  Date for the purpose of consummating this transaction,
                  including, filings pursuant to the Hart-Scott-Rodino Antitrust
                  Improvements Act of 1976. Each Party shall bear its own costs
                  with respect to preparing, executing and filing such
                  documents.

         (b)      Agreement Term. The Agreement Term shall commence on the
                  Effective Date and end, unless earlier terminated upon the
                  mutual agreement of the Parties or in accordance with the
                  provisions of this Article 16, on the date of expiration of
                  all royalty and other payment obligations (the "Expiration
                  Date") under this Agreement. Upon the occurrence of the
                  Expiration Date, if any, the licenses granted to Roche by
                  Memory under this Agreement to make, have made, use, offer for
                  sale, sell and import Products shall be fully paid-up.

16.2     Termination for Breach. (a) Each Party ("non-breaching Party") shall be
         entitled to terminate this Agreement by written notice to the other
         Party ("breaching Party") in the event that the breaching Party is in
         default of any of its material obligations hereunder and fails to
         remedy such default within sixty (60) days (thirty (30) days for
         payment defaults) after provision of written notice thereof by the
         non-breaching Party. Any such notice shall specifically state that the
         non-breaching Party intends to or reserves the right to terminate this
         Agreement in the event that the breaching Party shall fail to timely
         remedy the default.

         The effective date of termination under this Section for breach of a
         material obligation shall be the date sixty (60) days after provision
         of written notice thereof by the non-breaching Party.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         In the event Roche does not pay any full payment by reason of a good
         faith dispute as to whether such payment is due pursuant to the terms
         of this Agreement, Memory shall not have the right to terminate this
         Agreement as a result of such nonpayment until resolution of the
         dispute.

16.3     Roche's Right to Terminate. Beginning on the second anniversary of the
         Effective Date, Roche shall have the unilateral right to terminate this
         Agreement on a region-by-region basis (the regions being North America
         (US and Canada), Europe and Japan) or Product-by-Product, either on a
         worldwide basis or as to North America (US and Canada) only or ex-North
         America only, at any time by providing six (6) months prior written
         notice to Memory; provided, however, that if the Parties do not agree
         as to a proposed sublicense for which Memory has withheld consent,
         Roche shall, after the second anniversary, have a unilateral right to
         terminate this Agreement for the territory to which such proposed
         sublicense relates. Notwithstanding the preceding sentence, if there
         has been a launch of a Product in a Major Market Country, then such
         prior notice must be for twelve (12) months. The effective date of
         termination under this Section shall be the date six (6) months (or
         twelve (12) months as the case may be) after Roche provides such
         written notice to Memory. The first date that Roche shall have a right
         to provide written notice to Memory of intention to terminate this
         Agreement, in whole or in part, shall be the date that is eighteen (18)
         months after the Effective Date.

         Notwithstanding the above, Roche shall have the unilateral right to
         terminate this Agreement in its entirety prior to the second
         anniversary of the Effective Date only in the event that for each of
         the three different Memory PDE4 inhibitor chemical series, Memory 1, 2
         and 3 as seen in Schedule A, a lead compound from each series, selected
         by the JLT, fails to progress due to failure of each compound to pass
         GLP safety and toxicity studies, defined as those GLP safety and
         toxicity studies generally required by the FDA for entry into man.

16.4      Consequences of Termination.

         Upon (a) any termination of this Agreement in its entirety pursuant to
         Section 16.2, (b) termination of this Agreement by Roche of this
         Agreement in its entirety or in a region or country or in respect of a
         Product pursuant to Section 16.3, or (c) termination of this Agreement
         by Memory in its entirety or in a region pursuant to Article 3, and
         rights and licenses of any kind or nature granted by Memory to Roche
         under this Agreement (or, as applicable, with respect to termination of
         this Agreement as to a country, region or Product, respectively) shall
         terminate on the effective date of termination, provided Roche shall
         maintain a non-exclusive license to practice Collaboration Technology
         to make, use and sell products other than PDE4 inhibitors. In the event
         of any such termination, the following shall apply.

         (a)      Roche shall, upon Memory's written request, assign and
                  transfer to Memory, or its Affiliates as requested by Memory,
                  at no expense to Memory, or its Affiliates, and free of any
                  liens, pledges or security interests other than those incurred
                  in the commercialization of the Product, all of Roche's right,
                  title and interest in and to (i) all trademarks and trademark
                  applications used or intended for use specifically for the
                  relevant Product(s), (ii) all regulatory filings (such as INDs
                  and drug master files), Regulatory Approvals, and clinical
                  trial agreements (to the extent assignable and not cancelled)
                  for the relevant Product(s), and (iii) all data, including
                  clinical data, materials and information of any kind or nature
                  whatsoever, in Roche's possession or in the possession of its
                  Affiliates or its or their respective agents related to the
                  relevant Product(s) and (iv) all rights relating to the
                  infringement of Memory Patent Rights and Collaboration Patent
                  Rights, related to the relevant Product(s). Without limiting
                  the generality of the preceding sentence, Memory shall, upon
                  such transfer, have the right to

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  disclose such filings, approvals and data to (i) governmental
                  agencies of the country or region to the extent required or
                  desirable to secure government approval for the development,
                  manufacturing or sale of Product in the country or region,
                  (ii) Third Parties acting on behalf of Memory, its Affiliates
                  or sublicensees, to the extent reasonably necessary or
                  desirable for the development, manufacture, or sale of Product
                  in the country or region, and (iii) Third Parties to the
                  extent reasonably necessary or desirable to market Product in
                  the country or region. All such filings, approvals and data
                  transferred to Memory pursuant to this Section 16.4 shall be
                  deemed to be Memory Confidential Information.

         (b)      In addition, for a given Product and country or region so
                  terminated, or for the Territory in the case of termination of
                  this Agreement in its entirety, Roche hereby grants to Memory
                  a sole and exclusive, non-royalty bearing fully paid-up
                  license, under Roche intellectual property (including
                  Collaboration Technology and Patent Rights Covering
                  Collaboration Technology and Collaboration Compounds, and
                  including any trademarks used or intended for use in
                  connection with the sale of Product), to make, have made, use,
                  offer for sale, sell and import such Product(s) in such
                  country, region or the Territory, as applicable.

         (c)      Roche shall supply, or cause to be supplied, to Memory, upon
                  Memory's written request, Memory or its licensee's clinical
                  and/or commercial requirements of Product(s), pursuant to a
                  supply agreement to be negotiated in good faith by the
                  parties, provided that (i) such requirements shall be supplied
                  to Memory or its licensee at Roche's direct manufacturing
                  costs and allocation of manufacturing overhead, and (ii)
                  Roche's supply obligation shall not continue for more than [*]
                  years after such termination, and (iii) Roche shall maintain
                  the same Product(s) quality and specifications as immediately
                  prior to notice of termination, and (iv) as to other terms,
                  such agreement shall be reasonably consistent with Roche's
                  other arm's length supply agreements, and (v) Memory shall use
                  reasonable best efforts to effect a transfer as soon as
                  practicable of Product(s) manufacturing activities from Roche
                  to another supplier. In addition, Roche shall also transfer to
                  Memory and its designated supplier a manufacturing transfer
                  package that will enable Memory or such designated supplier to
                  manufacture the Product(s) in a timely manner.

         Roche shall take prompt actions, including the execution of such
         instruments, agreements and documents, as are necessary or desirable to
         effect the foregoing. It is agreed such transfers and actions shall be
         completed in a manner that will permit Memory to continue without
         interruption the business of developing, manufacturing, marketing and
         selling the Product(s).

16.5     Royalty and Payment Obligations. Termination of this Agreement by
         either Party for any reason will not release Roche from any obligation
         to pay royalties or make any payments to Memory which were accrued
         prior to the effective date of termination (including for sales made
         and Events achieved under Article 4, prior to the date of termination).
         However, termination of this Agreement by either Party for any reason
         will release Roche from any obligation to pay royalties or make any
         payments to Memory which would have otherwise become accrued after the
         effective date of termination.

16.6     Termination for failure to satisfy the condition subsequent. Either
         Party may terminate this Agreement in its entirety, upon ten (10) days
         prior written notice to the other Party if the condition subsequent
         under Section 16.1a has not been fulfilled by February 28, 2003, in
         which

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         case, upon termination there shall be no liabilities for obligations on
         the part of either party except that Article 15 shall survive such
         termination and except for any breach of section 16.1(a).

16.7     Survival of Obligations. Section 2.2 (the last sentence only), Section
         2.4 and Schedule C, Article 6 (except for Section 6.2), Section 7.6,
         Section 13.1, Article 15, Section 16.4, Section 16.5, Section 16.7,
         Article 17, Article 18, and any definitions used in such Section of
         Article, shall survive the termination of this Agreement in its
         entirety. Except for obligation which clearly are not intended to
         continue in respect of a partial termination (including the diligence
         obligation, and except as provided in Section 16.5, royalty
         obligations), with respect to the region, country or Product
         terminated, all obligations in this Agreement shall survive a partial
         termination.

                             ARTICLE 17. ARBITRATION

         Any dispute, controversy or claim ("Dispute") arising out of or in
relation to this Agreement, or the breach, termination or invalidity thereof,
that cannot be settled amicably by the Parties after a good faith discussion to
resolve the Dispute by the appropriate officers of the Parties, shall be
submitted by either Party to arbitration conducted in accordance with the rules
then in effect of the American Arbitration Association ("AAA"). Arbitration
shall take place in Newark, New Jersey and shall be conducted by three (3)
arbitrators, one of whom shall be designated by each Party, and the third
selected by the other two (2) arbitrators, all within the time limits
established by the then existing rules of the AAA. If the two (2) designated
arbitrators are unable to agree upon a third arbitrator by two (2) months after
submission of the matter to arbitration, the AAA shall select such third
arbitrator within three (3) months of such original submission. The written
decision of the arbitrators shall be final and binding on the parties and may be
enforced in any court having jurisdiction over the Parties or their current
assets. The award rendered by the arbitrators shall include the cost of
arbitration, reasonable attorneys' fees and reasonable costs for expert and
other witnesses, and in the event of a termination, in whole or in part, a
transition procedure, including the performance of transition services by Roche,
so as to maintain the value of the assets being transferred to Memory and, to
the extent contemplated by Section 16.4, permit Memory to conduct the business
being transferred to it. The parties shall be entitled to discovery as provided
in the Federal Rules of Civil Procedure. If the issues in dispute involve
scientific or technical matters, at least one of the arbitrators chosen
hereunder shall have educational training and/or experience sufficient to
demonstrate a reasonable level of knowledge in the Field and pharmaceutical drug
development. Notwithstanding the preceeding provisions of this Article 17, with
respect to any breach or threatened breach of this Agreement of Section 15.1,
16.4 or any other provision where a Party would not be appropriately compensated
by the payment of money, a party has a right to seek injunctive relief from any
court of competent jurisdiction to enjoin such breach or threatened breach
and/or to seek specific performance.

In the event of a Dispute, a Party shall have no right to toll or delay any
obligation in this Agreement unrelated to the Dispute as a result of the
Dispute. By way of example, if Roche owes Memory $5,000,000 and claims a
$2,000,000 payment is not due by reason of breach of Memory, then Roche shall
pay the $5,000,000, and the parties will resolve such $2,000,000 Dispute
pursuant to Article 17.

                            ARTICLE 18. MISCELLANEOUS

18.1     Indemnification.

         (a)      Roche agrees to defend Memory and the other Memory Indemnified
                  Parties at Roche's cost and expense, and will indemnify and
                  hold Memory and its directors, officers, employees and agents
                  (the "Memory Indemnified Parties") harmless from and against
                  any claims, losses, costs, damages, fees or expenses arising
                  out of or otherwise relating

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  to (i) activities of Roche and its Affiliates in the conduct
                  of the Collaboration, (ii) the development, manufacture, use,
                  offer for sale, sale or other disposition of any Product or
                  Non-Memory Compound by Roche, its Affiliates or sublicensees,
                  and each of their distributors, representatives or anyone in
                  privity therewith, or (iii) the gross negligence or willful
                  misconduct of Roche, its Affiliates or sublicensees. In the
                  event of any such claim against the Memory Indemnified Parties
                  by a Third Party, Memory shall promptly notify Roche in
                  writing of the claim (provided that any failure or delay to
                  notify shall not excuse any obligations of Roche except to the
                  extent Roche is actually prejudiced thereby) and Roche shall
                  solely manage and control, at its sole expense, the defense of
                  the claim and its settlement provided further that Roche shall
                  not settle any such claim, if such settlement may have an
                  adverse effect on Memory, without the prior written consent of
                  Memory, which consent shall not be unreasonably withheld. The
                  Memory Indemnified Parties shall cooperate with Roche and may,
                  at their option and expense, be represented in any such action
                  or proceeding. Roche shall not be liable for any litigation
                  costs or expenses incurred by the Memory Indemnified Parties
                  without Roche's written authorization.

         (b)      Memory agrees to defend Roche and the other Roche Indemnified
                  Parties at Memory's cost and expense, and will indemnify and
                  hold Roche and its directors, officers, employees and agents
                  (the "Roche Indemnified Parties") harmless from and against
                  any claims, losses, costs, damages, fees and expenses arising
                  out of any claim, arising out of or otherwise relating to (i)
                  activities of Memory in the conduct of the Collaboration, (ii)
                  the development, manufacture, use, offer for sale, sale or
                  other disposition of any Product by Memory, its Affiliates,
                  licensees other than Roche, sublicensees and each of their
                  distributors, representatives or anyone in privity therewith
                  (but only to the extent same is a consequence of Section 2.5,
                  Article 3 and/or 16), and (iii) the gross negligence or
                  willful misconduct of Memory, its Affiliates, licensees,
                  distributors, representatives or anyone in privity therewith.
                  In the event of any such claim against the Roche Indemnified
                  Parties by an Independent Third Party, Roche shall promptly
                  notify Memory in writing of the claim (provided that any
                  failure or delay to notify shall not excuse any obligation of
                  Memory except to the extent Memory is actually prejudiced
                  thereby) and Memory shall solely manage and control, at its
                  sole expense, the defense of the claim and its settlement
                  provided further that Memory shall not settle any such claim
                  if such settlement may have an adverse effect on Roche without
                  the prior written consent of Roche, which consent shall not be
                  unreasonably withheld. The Roche Indemnified Parties shall
                  cooperate with Memory and may, at their option and expense, be
                  represented in any such action or proceeding. Memory shall not
                  be liable for any litigation costs or expenses incurred by the
                  Roche Indemnified Parties without Memory's written
                  authorization.

18.2     Publicity. Neither Party shall originate any publicity, news release or
         other public announcement, written or oral, relating to this Agreement,
         including its terms, without the prior approval of the other Party
         except solely to the extent a Party reasonably believes same is
         otherwise required by law. Such approval shall not be unreasonably
         withheld. Each Party shall to the extent consistent with applicable
         laws and regulations limit the disclosure of the financial terms set
         forth in this Agreement (such as by requesting confidential treatment
         of such terms in documents required to be filed with the US Securities
         and Exchange Commission).

18.3     Force Majeure. Neither Party to this Agreement shall be responsible to
         the other Party for nonperformance or delay in performance of the terms
         or conditions of this Agreement due to acts of God, acts of
         governments, war, riots, strikes, accidents in transportation, or other
         causes

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         beyond the reasonable control of such Party, but such force majeure
         shall toll any and all obligations and time periods for so long as such
         force majeure continues.

18.4     Bankruptcy. All licenses (and to the extent applicable rights) granted
         under or pursuant to this Agreement by Memory to Roche are, and shall
         otherwise be deemed to be, for purposes of Section 365(n) of Title 11,
         US Code (the "Bankruptcy Code"), licenses of rights to "intellectual
         property" as defined under Section 101(60) of the Bankruptcy Code.
         Unless Roche elects to terminate this Agreement under Article 16, the
         Parties agree that Roche, as a licensee or sublicensee of such rights
         under this Agreement, shall retain and may fully exercise all of its
         rights and elections under the Bankruptcy Code, subject to the
         continued performance of its obligations under this Agreement.

18.5     Governing Law . This Agreement shall be governed by and interpreted in
         accordance with the laws of New Jersey without giving effect to
         principles of conflicts of law.

18.6     Waiver. The waiver by a Party of a breach or a default of any provision
         of this Agreement by the other Party shall not be construed as a waiver
         of any succeeding breach of the same or any other provision, nor shall
         any delay or omission on the part of a Party to exercise or avail
         itself of any right, power or privilege that it has or may have
         hereunder operate as a waiver of any right, power or privilege by such
         Party.

18.7     Notices. Any notice or other communication in connection with this
         Agreement must be in writing and may be given by any of the following
         methods: (i) personal delivery against a signed receipt; (ii)
         registered or certified mail, postage prepaid, return receipt
         requested; or (iii) by overnight delivery service which obtains a
         signed receipt. Notice shall be effective when delivered to the
         addressee at the address listed below or such other address as the
         addressee shall have specified in a written notice actually received by
         the addresser.

         If to Memory:

                  Memory Pharmaceuticals Corp.
                  100 Philips Parkway
                  Montvale, New Jersey 07645
                  Attn: Head of Business Development

         and

                  Sills Cummis Radin Tischman Epstein & Gross, P.A.
                  One Riverfront Plaza
                  Newark, New Jersey 07102
                  Attn: Ira A. Rosenberg, Esq.

         If to Roche:

                  F.Hoffmann-La Roche Ltd
                  Grenzacherstrasse 124

                  CH-4070

                  Basel, Switzerland
                  Attn: Legal Department

         and

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  Hoffmann La-Roche Inc.
                  340 Kingsland Street
                  Nutley, NJ  07110
                  Attn.: Corporate Secretary

18.8     No Agency. Nothing herein shall be deemed to constitute either Party as
         the agent or representative of the other Party. Each Party shall be an
         independent contractor, not an employee or partner of the other Party.
         Each Party shall be responsible for the conduct of activities at its
         own facilities and for any liabilities resulting therefrom. Neither
         Party shall be responsible for the acts or omissions of the other
         Party, and neither Party will have authority to speak for, represent or
         obligate the other Party in any way without prior written authority
         from the other Party.

18.9     Entire Agreement. This Agreement and the Schedules hereto (which
         Schedules are deemed to be a part of this Agreement for all purposes)
         contain the full understanding of the Parties with respect to the
         subject matter hereof and supersede all prior understandings and
         writings relating thereto. No waiver, alteration or modification of any
         of the provisions hereof shall be binding unless made in writing and
         signed by the Parties.

18.10    Headings. The headings contained in this Agreement are for convenience
         of reference only and shall not be considered in construing this
         Agreement.

18.11    Severability. In the event that any provision of this Agreement is held
         by a court of competent jurisdiction to be unenforceable because it is
         invalid or in conflict with any law of any relevant jurisdiction, the
         validity of the remaining provisions shall not be affected, and the
         Parties shall negotiate a substitute provision that, to the extent
         possible, accomplishes the original business purpose. During the period
         of such negotiation, and thereafter if no substituted provision is
         agreed upon, any such provision which is enforceable in part but not in
         whole shall be enforced to the maximum extent permitted by law.

18.12    Assignment. Neither this Agreement nor any of the rights or obligations
         hereunder may be assigned by either Party without the prior written
         consent of the other Party, except to an Affiliate of the assigning
         Party or to any other party who acquires all or substantially all of
         the pharmaceutical business of the assigning Party by merger, sale of
         assets or otherwise, so long as such Affiliate or other party agrees in
         writing to be bound by the terms of this Agreement. Notwithstanding the
         preceding, if Memory assigns its rights and/or obligations under this
         Agreement to a party who acquires all or substantially all of the
         pharmaceutical business of Memory by merger, sale of assets or
         otherwise, then Memory's rights under Section 2.3 shall become null and
         void.

18.13    Successors and Assigns. Except as otherwise provided herein, this
         Agreement shall be binding upon and inure to the benefit of the Parties
         hereto and their successors and permitted assigns under Section 18.12.

18.14    Interpretation. The words "include," "includes" and "including" shall
         be deemed to be followed by the phrase "without limitation." All
         references herein to Articles, Sections, and Schedules shall be deemed
         references to Articles and Sections of, and Schedules to, this
         Agreement unless the context shall otherwise require. Except as
         otherwise expressly provided herein, all terms of an accounting or
         financial nature shall be construed in accordance with international
         accounting standards ("IAS"), as in effect from time to time. Unless
         the context otherwise requires, countries shall include territories.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

18.15    Counterparts. This Agreement may be executed in any number of
         counterparts, each of which shall be deemed an original but all of such
         together shall constitute one and the same instrument.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed in their names by their properly and duly authorized officers or
representatives as of the dates below written.

MEMORY PHARMACEUTICALS CORP.      HOFFMANN-LA ROCHE INC.

By: /s/ Tony Scullion             By: /s/ Dennis E. Burns
    --------------------------        ------------------------------------------

Title: Chief Executive Officer    Title: VP, Global Head of Business Development
      ------------------------           ---------------------------------------

                                  F.HOFFMANN-LA ROCHE LTD

                                  By: /s/ Brad Bolzon
                                      -----------------------------------------

                                  Title: EVP, PL
                                         --------------------------------------

                                  By: Melanie Frey
                                      -----------------------------------------

                                  Title: Authorized Signatory
                                         --------------------------------------

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                                                                    Exhibit 10.9

                                   SCHEDULE A

                              MEMORY PATENT RIGHTS

I.       MEMORY 1

         A.       U.S.

                  (a)      First US provisional filed January 22, 2001
                           (60/262,651).

                  (b)      Second US provisional filed February 8, 2001
                           (60/267,196).

                  (c)      Third US provisional filed July 19, 2001 (60/306,140)

                  (d)      A regular US patent application (10/051,309) was
                           filed on January 22, 2002, claiming priority to the
                           above-mentioned three US provisional applications.

         B.       PCT

                  An International PCT application (PCT/US02/01508) was also
                  filed on January 22, 2002, claiming priority to the
                  above-mentioned three US provisional applications.

         C.       Additional

                  (a)      An application filed July 19, 2002

                  (b)      A second application filed July 19, 2002

II.      MEMORY 2

         A.       U.S.

                  (a)      First US provisional filed February 8, 2001
                           (60/267,195)

                  (b)      Second US provisional filed January 7, 2002
                           (60/344,824).

                  (c)      A regular US patent application (10/067,996) was
                           filed on February 8, 2002, claiming priority to the
                           above-mentioned two US provisional applications.

                  (d)      Possible Second US family to be filed; awaiting
                           analysis from MPC.

         B.       PCT

                  An International PCT application (no serial no issued yet) was
                  also filed on February 8, 2002, claiming priority to the
                  above-mentioned two US provisional applications.

III.     MEMORY 3

         A.       U.S.

                  A first US provisional application (Memory 3 V1) was filed
                  October 16, 2001 (60/329,314).

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

IV.      MEMORY 4 (CYCLIC AMP PHOSPHODIESTERASE ISOFORM 4D7 AND METHODS OF USE)

         A.       U.S.

                  (a)      First US provisional filed November 15, 2001
                           (60/331,422)

                  (b)      Second US provisional filed January 23, 2002
                           (60/349,985).

V.       MEMORY 5 (CYCLIC AMP PHOSPHODIESTERASE ISOFORMS AND METHODS OF USE)

         A.       U.S.

                  (a)      U.S. provisional application filed June 25, 1999
                           (60/141,196

                  (b)      A regular U.S. Patent Application was filed June 23,
                           2000 (09/602,735), claiming priority to the
                           above-mentioned provisional application.

         B.       PCT

                  An International Patent Application was filed June 23, 2000,
                  and was published January 4, 2001 (WO 01/00851). This
                  application claims priority the above-mentioned provisional
                  application.

         C.       EP

                  A European Patent Application was filed December 21, 2001
                  claiming priority to the above-mentioned provisional
                  application and International application (application EP
                  00944829.1; publication EP 1190070).

         D.       JP

                  A Japanese Patent Application was filed December 25, 2001
                  claiming priority to the above-mentioned provisional
                  application and International application (JP 2001-506843).

         E.       AU

                  An Australian Patent Application was filed December 20, 2001
                  claiming priority to the above-mentioned provisional
                  application and International application (AU 58864/00).

         F.       CA

                  A Canadian Patent Application was filed December 20, 2001
                  claiming priority to the above-mentioned provisional
                  application and International application (serial no. not yet
                  issued).

         G.       MX

                  A Mexican Patent Application was filed December 25, 2001
                  claiming priority to the above-mentioned provisional
                  application and International application (serial no. not yet
                  issued).

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                                   SCHEDULE B

                                RESEARCH WORKPLAN

[*]

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                                   SCHEDULE C

                           USE OF NON-MEMORY COMPOUNDS

1        Development Event Based Payments. If Roche (alone or with its
         Affiliates) develops a Non-Memory Compound for a Neurological
         Indication or a Psychiatric Indication, then Roche shall pay Memory for
         such Non-Memory Compound achieving the Events of Sections 4.3(a) and
         4.3(b) as if such Non-Memory Compound were a Product except (i) Roche
         shall pay [*] percent ([*]%) of such payments related to IND, Phase II
         and Phase III Events, and (ii) [*] percent ([*]%) of all other payments
         provided under Section 4.3(a) and 4.3(b).

         If Roche (alone or with its Affiliates) develops a Non-Memory Compound
         for an Other Indication, then Roche shall pay Memory for such
         Non-Memory Compound achieving the Events of Sections 4.3(c) as if such
         Non-Memory Compound were a Product except (i) Roche shall pay [*]
         percent ([*]%) of such payments related to IND, Phase II and Phase III
         Events, and (ii) [*] percent ([*]%) of all other payments provided
         under Section 4.3(c).

         Each payment in this Schedule C shall be due and payable by Roche
         within thirty (30) days after occurrence of the applicable Event. Roche
         will make each of such payments only once, for the first occurrence of
         a respective Event, regardless of how many times the Event may be
         subsequently achieved with a Non-Memory Compound. An Event shall be
         deemed to have occurred regardless of whether a Product or a Non-Memory
         Compound first achieved the Event.

2.       ROYALTIES.

         (a)      Roche shall pay to Memory the following payments for a given
                  product containing a Non-Memory Compound having a Regulatory
                  Approval in the US for a Neurological Indication, based upon
                  the net sales (defined as in Section 1.30 but applied to the
                  given product) of such product in the US. Such royalty
                  payments shall be calculated by multiplying the following
                  percentages by the following annual net sales of such product
                  in the US (all Net Sales amounts in $ US million):

--------------------------------------------------------------------------------
  ANNUAL US NET SALES                           PERCENT (%) OF NET SALES
--------------------------------------------------------------------------------
[*]                                            [*]
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[*]                                            [*]
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[*]                                            [*]
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[*]                                            [*]
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                  Notwithstanding the foregoing, if for such product there is
                  Regulatory Approval in the United States of America for a
                  Psychiatric Indication, but no Regulatory Approval in the US
                  for a Neurological Indication, then Roche shall pay to Memory
                  the following payments for such product, based upon the net
                  sales of such product in the US. Such royalty payments shall
                  be calculated by multiplying the following percentages by the
                  following incremental annual net sales of such product in the
                  US (all Net Sales amounts in $ US million):

--------------------------------------------------------------------------------
  ANNUAL US NET SALES                            PERCENT (%) OF NET SALES
--------------------------------------------------------------------------------
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                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  Notwithstanding the foregoing, if for such product there is no
                  Regulatory Approval in the US for a Neurological Indication or
                  a Psychiatric Indication, then Roche shall pay to Memory the
                  following payments for such product, based upon the net sales
                  of such product in the US. Such royalty payments shall be
                  calculated by multiplying the following percentages by the
                  following incremental annual net sales of such product in the
                  US (all Net Sales amounts in $ US million):

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         (b)      Roche shall pay to Memory the following payments for a given
                  product containing a Non-Memory Compound having Regulatory
                  Approval in Europe for a Neurological Indication, based upon
                  the net sales (defined as in Section 1.30 but applied to the
                  given product) of such product in all countries in the ROW
                  Territory. Such royalty payments shall be calculated by
                  multiplying the following percentages by the following
                  incremental annual worldwide net sales of such product in the
                  ROW Territory (all net sales amounts in $ US million):

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                  Notwithstanding the foregoing, if for such product there is
                  Regulatory Approval in the Europe for a Psychiatric Indication
                  but no Regulatory Approval in Europe for a Neurological
                  Indication, then, Roche shall pay to Memory the following
                  payments for such product, based upon the net sales of such
                  product in the ROW Territory. Such royalty payments shall be
                  calculated by multiplying the following percentages by the
                  following annual worldwide net sales of such product in the
                  ROW Territory (all net sales amounts in $ US million):

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                  Notwithstanding the foregoing, if for such product there is no
                  Regulatory Approval in the Europe for a Neurological
                  Indication or a Psychiatric Indication, then Roche shall pay
                  to Memory the following payments for such product, based upon
                  the net sales of such product in the ROW Territory. Such
                  royalty payments shall be calculated by multiplying the
                  following percentages by the following incremental annual net
                  sales of such product in the ROW Territory (all Net Sales
                  amounts in $ US million):

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

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                  Roche shall calculate and pay royalty payments to Memory under
                  this Schedule C commencing on the launch of the product in any
                  country. The net sales of a given country shall be included
                  for purposes of calculating royalties under this Section until
                  the later of (i) ten (10) years from the launch of such
                  product in such country, or (ii) expiration of the last to
                  expire Memory Patent Right Covering the product in country,
                  after which time Roche's license from Memory for such product
                  shall be fully-paid up for such country.

                  All of the provisions of Article VI, including the timing of
                  payments and rights under Section 6.5, shall apply to the
                  payments required pursuant to this Schedule C.

                  There shall be no further adjustments to such royalty
                  payments.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED<PAGE>

                                                                   Exhibit 10.10

         CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A
               REQUEST FOR CONFIDENTIAL TREATMENT. THE NON-PUBLIC
                INFORMATION HAS BEEN FILED WITH THE COMMISSION.

                          STRATEGIC ALLIANCE AGREEMENT

         This AGREEMENT, having a date of August 19, 2003, is made by and among,
on the one hand, F.HOFFMANN-LA ROCHE LTD, a Swiss corporation having its
principal place of business at Grenzacherstrasse 124, CH-4070, Basel,
Switzerland and HOFFMANN-LA ROCHE INC., a New Jersey corporation, having its
principal place of business at 340 Kingsland Street, Nutley, New Jersey 07110
(collectively "Roche") and, on the other hand, MEMORY PHARMACEUTICALS CORP., a
Delaware corporation, having its principal place of business at 100 Philips
Parkway, Montvale, New Jersey 07645 ("Memory").

                                  INTRODUCTION

1.       Memory has a development program relating to the neuronal nicotinic
         alpha-7 receptor (the "Program"), and owns related intellectual
         property rights.

2.       Roche has expertise in the research, development, manufacture and
         commercialization of pharmaceutical products.

3.       Roche desires to secure rights to further develop and commercialize
         products developed and to be developed pursuant to the Program.

4.       In consideration of the mutual covenants and promises contained in this
         Agreement and other good and valuable consideration, the receipt and
         sufficiency of which are hereby acknowledged, Memory and Roche agree as
         follows:

                             ARTICLE 1. DEFINITIONS

As used in this Agreement, the following terms, whether used in the singular or
plural, shall have the following meanings:

1.1      "Affiliate" means (a) a business entity which owns, directly or
         indirectly, at least fifty percent (50%) of the voting shares or other
         means of control of a Party; or (b) a business entity in which at least
         fifty percent (50%) of the voting shares or other means of control are
         owned by a Party, either directly or indirectly; or (c) a business
         entity, the majority ownership of which is directly or indirectly
         common to the majority ownership of a Party. Anything to the contrary
         in this paragraph notwithstanding, [*], a Delaware corporation, shall
         not be deemed an Affiliate of Roche unless Roche provides written
         notice to Memory of its desire to include [*] as an Affiliate of Roche.
         Notwithstanding the preceding provisions, once an entity ceases to be
         an Affiliate, then such entity shall, without any further action, cease
         to have any rights, including license and sublicense rights, under this
         Agreement that it has by reason of being an Affiliate.

         If [*]does not agree to be bound by the terms and conditions of this
         Agreement, then [*] shall have none of the rights and obligations of an
         Affiliate of Roche under this Agreement, and [*]

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         shall be treated as a Third Party under this Agreement and,
         accordingly, Roche may not grant a sublicense to [*] except as provided
         in Section 2.4 hereof.

1.2      "Agreement Term" means the term of this Agreement, more fully described
         in Section 16.1.

1.3      "Bioequivalent Product" means, with respect to a given Product sold in
         a given country of the Territory by Roche, its Affiliate or
         sublicensee, a product sold by a Third Party in such country containing
         the same or similar compound (or an acid, salt or ester thereof) as
         such Product.

1.4      "Combination Product" means any product containing both a
         pharmaceutically active agent which causes it to be considered a
         Product and one or more other pharmaceutically active agents which are
         not Products.

1.5      "Composition of Matter Claim" means, for a given Product in a given
         country of the Territory, a Valid Claim of a Memory Patent Right that
         Covers the molecule per se of the compound that is included in such
         Product, in whole or as a component thereof, as an active ingredient of
         such Product.

1.6      "Cover" (including the variations such as "Covered", "Coverage" or
         "Covering") shall mean that the making, using, offering for sale,
         selling or importing of a given product would infringe a claim of a
         Patent Right in the absence of a license under such Patent Right. The
         determination of whether a product is Covered by a particular Patent
         Right shall be made on a country-by-country basis.

1.7      "Effective Date" means the date that all conditions subsequent under
         Section 16.1 have occurred.

1.8      "End of Phase I" means the date that all Phase I clinical trials have
         been completed.

1.9      "End of Phase IIa" means the date that all Phase IIa clinical trials
         have been completed.

1.10     "Europe" means the United Kingdom, Germany, Italy, France and Spain.

1.11     "Field" means prophylaxis and treatment of diseases, in all
         indications, for either human or veterinary use.

1.12     "FTE" means a full-time equivalent scientific person year, consisting
         of a total of 1840 hours per year of scientific work on an annualized
         basis, in the conduct of the Program.

1.13     "IND" means an Investigational New Drug Application filed with the US
         Food and Drug Administration ("FDA") for human clinical testing of a
         drug.

1.14     "Initiation of Phase I" means the date that a human is first dosed with
         a Product in a Phase I clinical trial.

1.15     "Initiation of Phase IIa" means the date that a patient is first dosed
         with a Product in a Phase IIa clinical trial.

1.16     "Initiation of Phase III" means the date that a patient is first dosed
         with a Product in a Phase III clinical trial.

1.17     "Invention" means an invention that is made in the conduct of the
         Strategic Alliance.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

1.18     "JLT" means the committee organized and operating as provided in
         Article 7.

1.19     "Joint Patent Rights" means all Patent Rights that Memory and Roche
         jointly own, or otherwise jointly have the right to grant the licenses
         herein, during the Agreement Term.

1.20     "Know-How" means data, knowledge and information, including materials,
         samples, chemical manufacturing data, toxicological data,
         pharmacological data, preclinical data, assays, platforms,
         formulations, specifications, quality control testing data, that are
         necessary or useful for the discovery, manufacture, development or
         commercialization of Product in the Territory.

1.21     "Launch" means, with respect to a Product in a country of the
         Territory, the date of the first commercial sale by Roche, its
         Affiliate or its sublicensee of the given Product in the given country
         after Regulatory Approval in such country.

1.22     "License Exercise Period" means, with respect to any Product, except as
         otherwise provided in Section 4.6, the sixty (60) day period
         immediately following the later of the End of Phase IIa or the date of
         delivery by Memory to Roche of the data and reports specified in
         Schedule 1 related to such Product.

1.23     "License Rights Maintenance Fees" means, with respect to any Product,
         the payments by Roche to Memory pursuant to Section 4.4 hereof.

1.24     "Major Market Countries" means the US, Canada, Japan and Europe.

1.25     "Memory Compound" means any compound which is a nicotinic alpha-7
         agonist with respect to which (i) Memory has commenced a Phase I human
         clinical trial within five (5) years after the Effective Date or (ii)
         Roche has designated pursuant to Section 2.2 or Section 4.6 hereof.

1.26     "Memory Know-How" means all Know-How that Memory owns, or otherwise has
         the right to grant the licenses herein, during the Agreement Term.

1.27     "Memory Patent Rights" means all Patent Rights that Memory owns, or
         otherwise has the right to grant the licenses herein, during the
         Agreement Term.

1.28     "NDA" means a New Drug Application filed with the FDA, or its foreign
         equivalent, for a drug.-

1.29     "NDA Filing" means for a given Product, the date that an NDA is filed
         for the Product.

1.30     "Net Sales" " and the related term "Adjusted Gross Sales" mean:

         "Adjusted Gross Sales" means the amount of gross sales of the Product
         invoiced by Roche, its Affiliates and its sub-licensees to independent
         third parties less deductions of returns and return reserves ( such
         reserves consistent with Generally Accepted Accounting Principles)
         (including allowances actually given for spoiled, damaged, out-dated,
         rejected, returned Product sold, withdrawals and recalls), rebates to
         the extent consistently applied by Roche to its products (price
         reductions, rebates to social and welfare systems, charge backs and
         charge back reserves ( such reserves consistent with Generally Accepted
         Accounting Principles), cash sales incentives (but only to the extent
         it is a sales related deduction which is accounted for within Roche on
         a product-by-product basis)), government mandated rebates and similar
         types of rebates (e.g., P.P.R.S, Medicaid, each as consistently applied
         by Roche to its products), volume (quantity) discounts, each as
         consistently applied by Roche to its products, taxes (value added or
         sales taxes,

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         government mandated exceptional taxes and other taxes directly linked
         to the gross sales amount), it being understood that income and capital
         gains taxes are not the type of taxes contemplated as a deduction in
         this definition of Adjusted Gross Sales.

         "Net Sales" means, for the US, the amount calculated by subtracting
         from the amount of Adjusted Gross Sales a lump sum deduction of [*]
         percent ([*]%) of Adjusted Gross Sales in lieu of those sales related
         deductions which are not accounted for within Roche on a product by
         product basis (e.g. outward freights, postage charges, transportation
         insurance, packaging materials for dispatch of goods, custom duties,
         bad debt, discounts granted later than at the time of invoicing, and
         cash discounts).

         "Net Sales" means, for the ROW Territory, the amount calculated by
         subtracting from the amount of Adjusted Gross Sales a lump sum
         deduction of [*] percent ([*]%) of Adjusted Gross Sales in lieu of
         those sales related deductions which are not accounted for within Roche
         on a product by product basis (e.g. outward freights, postage charges,
         transportation insurance, packaging materials for dispatch of goods,
         custom duties, bad debt, discounts granted later than at the time of
         invoicing, and cash discounts).

         Notwithstanding the foregoing, amounts received by Roche, its
         Affiliates and sublicensees for the sale of Product among Roche, its
         Affiliates or sublicensees for resale shall not be included in the
         computation of Adjusted Gross Sales and Net Sales."

1.31     "Neurological Indication" means prophylaxis or treatment of Alzheimer's
         disease (including management of psychotic symptoms of Alzheimer's
         disease), prophylaxis or treatment of mild cognitive impairment ("MCI")
         or treatment of vascular dementia.

1.32     "Other Indication" means any indication other than a Neurological
         Indication or a Psychiatric Indication.

1.33     "Party" means Roche and/or Memory.

1.34     "Patent Right" means all rights under any patent or patent application
         in any country of the Territory, including any substitution, extension
         or supplementary protection certificate, reissue, reexamination,
         renewal, division, continuation or continuations-in-part thereof,
         relating to the discovery, manufacture, development or
         commercialization of nicotinic alpha-7 agonist compounds in the
         Territory.

1.35     "Phase I" means the first phase of human clinical trials of a drug
         required by the US FDA to gain evidence of safety in volunteers, as
         described in 21 CFR Part 312, as it may be amended.

1.36     "Phase II" means the second phase of human clinical trials of a drug
         required by the US FDA to gain evidence of efficacy in the target
         population, determine optimal dosage, and obtain expanded evidence of
         safety for Product(s), as described in 21 CFR Part 312, as it may be
         amended.

1.37     "Phase IIa" means one or more Phase II trials (at least one of which
         trials was conducted in a Major Market Country) collectively designed
         to demonstrate (a) in the case of a Neurological Indication, safety and
         tolerability in the target population, and (b) in the case of a
         Psychiatric Indication, clinical proof of concept.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

1.38     "Phase III" means the third phase of human clinical trials of a drug
         required by the US FDA to gain evidence of efficacy in the target
         population, and obtain expanded evidence of safety for Product(s), as
         described in 21 CFR Part 312, as it may be amended.

1.39     "Product" means any and all products that include, in whole or as a
         component thereof, a Memory Compound.

1.40     "Psychiatric Indication" means schizophrenia (including management of
         the manifestations of symptoms of schizophrenia), depression, bipolar
         disorders, anxiety and ADHD.

1.41     "Regulatory Approval" means any approvals (including pricing and
         reimbursement approvals), licenses, registrations or authorizations of
         any national or international or local regulatory agency, department,
         bureau or other governmental entity, necessary for the manufacture and
         sale of a Product in the Field in a regulatory jurisdiction in the
         Territory.

1.42     "Roche Patent Rights" means all Patent Rights that Roche owns, or
         otherwise has the right to grant the licenses herein, during the
         Agreement Term.

1.43     "ROW Territory" means all countries and territories other than the US.

1.44     "Strategic Alliance" means discovery and development by Memory of
         pharmaceuticals acting against nicotinic alpha-7 receptor and
         development and commercialization of such pharmaceuticals by Roche and
         Memory, as contemplated by this Agreement.

1.45     "Territory" means all countries and territories in the world.

1.46     "Third Party" means a person or entity other than (i) Memory or any of
         its Affiliates, or (ii) Roche or any of its Affiliates.

1.47     "US" means the United States of America and its possessions and
         territories, including Puerto Rico.

1.48     "Valid Claim" means a claim in any (i) unexpired and issued Memory
         Patent Right that has not been disclaimed, revoked or held invalid by a
         final unappealable decision of a court of competent jurisdiction or
         government agency or (ii) pending patent application that is a Memory
         Patent Right which application has been on file with the applicable
         patent office for no more than ten (10) years and for which there has
         been reasonably consistent activity to advance to issuance of a patent.

                                ARTICLE 2. GRANTS

2.1      Grants. Subject to the terms and conditions of this Agreement, during
         the License Exercise Period, Roche shall have the right with respect to
         each Product to obtain a sole and exclusive license, including the
         right to grant sublicenses pursuant to Section 2.3, under the Memory
         Patent Rights and to use the Memory Know-How, to make, use, offer for
         sale, sell and import such Product in the Territory for use in the
         Field (each, a "License"). The right of Roche to obtain a License as
         provided in this Section 2.1 shall be exercisable by Roche giving
         written notice to Memory and making or having made payment to Memory of
         all License Rights Maintenance Fees for such Product under Section 4.4
         with respect to a License for a Product for a Neurological Indication
         or a Psychiatric Indication. If Roche exercises such right as provided
         herein, Memory

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         shall be deemed to have granted such License hereunder without any
         requirement for further action by or on behalf of either Party.

         Nothing in this Agreement grants to Roche any right or license to use
         Memory Know-How for any purpose other than to make, use, offer for
         sale, sell and import Products in the Territory for use in the Field.
         Further, nothing in this Agreement shall limit the right of Memory to
         use Memory Know-How for any purpose not related to the making, using,
         offering for sale, selling or importing Products in the Territory for
         use in the Field.

2.2      Designation of Additional Compounds. In the event that, as of the date
         that is [*] years after the Effective Date, there are fewer than [*]
         Memory Compounds for either a Neurological Indication or a Psychiatric
         Indication with respect to which Memory has commenced the Initiation of
         Phase I, then Roche shall have the right to designate as Memory
         Compounds additional compounds which are nicotinic alpha-7 agonists in
         preclinical development by Memory, up to the number of compounds fewer
         than [*] as to which Memory has then not commenced the Initiation of
         Phase I. For example, if Memory has commenced the Initiation of Phase I
         with respect to one (1) Product for a Neurological Indication and one
         (1) Product for a Psychiatric Indication at the end of such [*] year
         period, then Roche shall have the right to designate as Memory
         Compounds up to [*] additional compounds which are nicotinic alpha-7
         agonists in preclinical development by Memory. If Roche desires to
         exercise such right, Roche shall give written notice thereof to Memory
         and Memory shall provide to Roche, for evaluation purposes only, all
         test results, data (e.g., in vivo data, safety data and
         structure-activity relationship data) and applicable Memory Patent
         Rights relating to up to [*] compounds which are nicotinic alpha-7
         agonists in preclinical development by Memory as may be selected by
         Roche. Within the sixty (60) day period following receipt by Roche of
         such items, Roche may designate such additional compounds, up to the
         number of compounds it is permitted to designate pursuant to this
         Section 2.2.

         After Roche has designated one or more such compounds as Memory
         Compounds, Memory may elect either to (i) continue development of such
         Memory Compound through the End of Phase IIa and be entitled to receive
         all License Rights Maintenance Fees with respect thereto, as and when
         provided in Section 4.4 hereof, or (ii) have Roche assume all
         preclinical and clinical development of such Memory Compound(s) and pay
         all costs related thereto, in which case the License Rights Maintenance
         Fees otherwise payable by Roche with respect to such Memory Compound(s)
         shall be reduced by [*] percent ([*]), the events for payments by Roche
         specified in Section 4.4 shall not include the delivery of any data or
         reports and Roche shall have a License to such Memory Compound(s) as
         provided in Section 2.1 effective as of the date Roche assumes the
         preclinical and clinical development of such Memory Compound.

2.3      Restrictions on Third Party Rights. Memory shall not grant any license
         or rights to a Third Party with respect to any compound that is a
         nicotinic alpha-7 agonist unless and until Roche has declined or failed
         to exercise its right to obtain a License to such compound pursuant to
         Sections 2.1 and 16.4(a) hereof. In the event that Roche so declines or
         fails to exercise its right to obtain a License to such compound,
         Memory shall be free to license or grant any rights to a Third Party
         with respect to such compound.

2.4      Sublicense Rights. The rights and licenses granted to Roche under
         Section 2.1 shall include the right to grant sublicenses to its
         Affiliates and Third Parties under such rights and licenses, in whole
         or in part, solely to the extent necessary to make, use, offer for
         sale, sell or import Products in the Territory for use in the Field. If
         Roche grants such a sublicense, Roche shall ensure that all of the
         applicable terms and conditions of this Agreement shall apply to the
         Affiliate or Third Party sublicensee to the same extent as they apply
         to Roche for all purposes. Roche assumes full

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         responsibility for the performance of all obligations and observance of
         all terms so imposed on such Affiliate or Third Party sublicensee and
         will itself account to Memory for all payments due under this Agreement
         by reason of such sublicense.

         Notwithstanding the above, Roche shall not have the right to sublicense
         the rights granted to Roche under Section 2.1 to any Third Party with
         respect to any Product (i) in a Major Market Country, except upon the
         prior written approval of Memory, which approval Memory shall not
         unreasonably withhold and (ii) in the US, except upon the prior written
         approval of Memory so long as Memory has a co-promotion right for such
         Product, which approval may be granted or withheld by Memory in its
         sole discretion.

         Any sublicense may, at the written election of Memory, continue in full
         force and effect after the termination of any of the underlying
         licenses granted herein to Roche (the foregoing shall apply to a
         termination in whole or in part of such underlying licenses). Upon the
         licenses granted herein to Roche becoming fully paid up pursuant to
         Section 16.1(b), any and all sublicenses granted by Roche similarly
         shall become fully paid up as to Memory.

2.5      Memory Co-Promotion Right. Memory shall have the right to co-promote
         each Product in the US, on a Product-by-Product basis, in accordance
         with the provisions of Exhibit A hereto. Within forty-five (45) days
         after the end of Phase II with respect to each Product, Roche shall
         provide Memory with (i) the results and analysis of Phase II studies,
         and (ii) Roche's then final, approved Phase III development plan
         (including budget). Memory shall exercise its co-promotion right with
         respect to each Product by (a) giving written notice thereof to Roche
         within forty-five (45) days after receipt of the items described in the
         immediately preceding sentence, and (b) making a one-time payment to
         Roche in the amount of [*] percent ([*]%) of Roche's budgeted Phase III
         global development costs for such Product as set forth in Roche's then
         final, approved Phase III development plan (including budget). If
         Memory exercises its right to co-promote a Product in the US, the
         royalties otherwise payable by Roche to Memory hereunder with respect
         to the Net Sales of such Product in the US shall be reduced by [*]
         percent ([*]%). Upon Memory's exercise of its co-promotion right with
         respect to any Product, the Parties shall negotiate in good faith and
         enter into a Co-Promotion Agreement consistent with terms set forth in
         Exhibit A hereto.

2.6      Requirement to Divest. If Roche is required by a relevant government
         authority in a given country of the Territory to divest rights to a
         Memory Compound and/or Product with respect to which Roche has not
         commenced the Initiation of Phase III, then Roche shall use its
         reasonable best efforts to obtain authority to fulfill such requirement
         by returning rights to Memory to the Memory Compound and/or Product in
         accordance with Section 16.5.

                              ARTICLE 3. DILIGENCE

3.1      Diligence. Memory shall use reasonable diligence in proceeding with the
         development of Products through the End of Phase IIa, except for (i)
         compounds designated by Roche as Memory Compounds with respect to which
         Roche has assumed all preclinical and clinical development pursuant to
         Section 2.2 hereof and (ii) Products with respect to which Roche has
         exercised its rights pursuant to Section 4.6 hereof. Roche shall use
         reasonable diligence in proceeding with the development of each
         Product, including obtaining required Regulatory Approvals,
         manufacturing, marketing and sale of such Product in the Major Market
         Countries, from and after the date Roche obtains the License related
         thereto.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         Reasonable diligence as used in this Agreement shall mean the same
         standard of effort as used by the Parties, or in any case not less than
         common in the industry taken as a whole for similarly situated
         companies for the activities to be undertaken pursuant to this
         Agreement, including, in the case of Roche, the development, clinical
         testing, manufacturing, marketing and sale of a product which (i) must
         receive regulatory approval in Major Market Countries and (ii) has
         similar potential for a Neurological Indication or a Psychiatric
         Indication as the compounds for which Roche has obtained a License,
         taking into account scientific, business and marketing and return on
         investment considerations. It is understood that such compound
         potential may change from time to time based upon changing scientific,
         business and marketing and return on investment considerations. The
         Parties also acknowledge that, even within the Major Market Countries,
         Roche and its Affiliates do not always seek to market their own
         products in every such country or seek to obtain regulatory approval in
         every such country or for every potential indication or every compound
         that has potential for an indication. As a result, the exercise by
         Roche of reasonable diligence is to be determined by judging its
         efforts taken as a whole.

         During the [*] year period after the Effective Date, Memory agrees to
         devote at least [*] FTEs to the Strategic Alliance. During the [*] year
         period after the Effective Date, Memory shall use reasonable diligence
         to characterize and advance development of nicotinic alpha-7 agonist
         compounds for Alzheimer's disease and schizophrenia, but such diligence
         shall be not less than Memory's diligence to develop nicotinic alpha-7
         agonist compounds for other specific disease states.

         If either Party believes in good faith that the other Party has failed
         to utilize reasonable diligence as required by this Section 3.1, then
         such Party may give the other Party written notice of such alleged
         failure, identifying the Memory nicotinic alpha-7 agonist compound or
         Product (if known) and giving specific detailed reasons of such
         allegation. Within sixty (60) days following the other Party's receipt
         of any such notice ("Response Period"), the other Party shall have the
         right to provide such Party with a written response specifying, in
         reasonable detail, how it has used reasonable diligence as required
         hereby.

         If the other Party has failed to provide within the Response Period a
         written response, in reasonable detail, indicating the manner in which
         it is in compliance with its obligations under this Section 3.1 or in
         which it has remedied any breach thereof, or the other Party has failed
         within the Response Period to remedy any breach of its obligations
         under this Section 3.1, then the non-defaulting Party shall have the
         right to terminate this Agreement, in whole or in part, as described in
         this Section 3.1, upon written notice to such Party effective as of the
         end of the Response Period.

         In the event of a dispute between the Parties with respect to whether
         either Party has complied with its obligation under this Section 3.1,
         then such dispute shall be resolved in accordance with Article 17. The
         consequences of any termination under this Section 3.1 are set forth in
         Section 16.5 and Article 17.

3.2      3.2 Effect of Merger on Diligence. If (i) substantially all of the
         pharmaceutical business of Roche becomes merged or acquired or (ii)
         Roche acquires substantially all of the pharmaceutical business of an
         entity having an average annual pharmaceutical preclinical research
         expenditure in excess of [*] per year, then at any time during the
         period from a public announcement by Roche of its intention to effect
         such merger or acquisition (each such transaction described in clauses
         (i) and (ii) being hereinafter called a "Transaction") through [*]
         after the closing of such Transaction, Memory shall have the right to
         request in writing to the Head of Global Pharmaceuticals of Roche a
         status of and future plans for the progress of development and

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         commercialization of Products ("Status Request"). This right may be
         exercised by Memory not more than [*].

         If, following a Status Request, Memory believes in good faith that
         Roche has failed to progress development and commercialization of
         Products solely because of the Transaction, then Memory may give Roche
         written notice of such alleged failure, identifying the Product and
         region at issue and giving specific detailed reasons of such
         allegation. Within [*] following Roche's receipt of any such notice
         from Memory ("Status Response Period"), Roche shall have the right to
         provide Memory with a written response specifying, in reasonable
         detail, how the Transaction per se has not had any negative impact on
         such development and commercialization progress.

         If Roche has failed to provide within the Status Response Period a
         written response, in reasonable detail, indicating the manner in which
         development and commercialization of Products has not failed to
         progress solely because of the Transaction or in which it has remedied
         any such failure, or Roche has failed within the Status Response Period
         to remedy any such failure to progress, then Memory shall have the
         right to terminate this Agreement, in whole or in part, as described
         below in this Section 3.2, upon written notice to Roche effective as of
         the end of the Status Response Period. Memory shall have the right to
         terminate this Agreement as to any region described in Section 3.1 if
         development and commercialization of the Products has failed to
         progress solely because of the Transaction with respect to the Products
         (taken as a whole) in such region. Memory shall have the right to
         terminate this Agreement in the Territory with respect to any Product
         if development and commercialization of such Product has failed to
         progress solely because of the Transaction in at least two of the three
         regions described in Section 3.1. Memory shall have the right to
         terminate this Agreement in its entirety if development and
         commercialization of the Products (taken as a whole) has failed to
         progress solely because of the Transaction in at least two of the three
         regions described in Section 3.1.

         The Parties confirm and agree that nothing in this Section 3.2 limits
         the obligations of Roche or the rights of Memory under Section 3.1.

                          ARTICLE 4. PAYMENT TO MEMORY

4.1      Technology Access Fee. Roche shall pay Memory a technology access fee
         of ten million dollars ($10,000,000), which shall be non-refundable and
         non-creditable, and due and payable on or before the later of twenty
         (20) days after the Effective Date or five (5) days after the closing
         of the purchase by Roche of Memory's Series Roche Preferred Stock as
         provided in Section 4.2 hereof.

4.2      Purchase of Series Roche Preferred Stock. Contemporaneous with the
         execution of this Agreement, Roche shall execute a Securities Purchase
         Agreement to purchase from Memory shares of Memory's Series Roche
         Preferred Stock in the aggregate amount of ten million dollars
         ($10,000,000), based on a purchase price of $3.60 per share, upon the
         terms and conditions set forth in the Securities Purchase Agreement
         attached as Exhibit B hereto.

4.3      Research and Development Support. Roche shall pay to Memory a total of
         six million dollars (US $6,000,000) for research and development
         support, which amount shall be non-refundable and non-creditable, and
         which will be due and payable in eight (8) equal quarterly installments
         of seven hundred fifty thousand dollars (US $750,000) per installment,
         each installment due and payable within thirty (30) days after (i) the
         first day of each calendar quarter after the Effective Date and (ii)
         receipt by Roche of an invoice for such sums.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

4.4      Payments to Maintain Roche License Rights.
         -----------------------------------------

         (a)      Neurological Indications. Roche shall pay to Memory, in order
                  to maintain its license rights pursuant to Section 2.1 and the
                  other provisions of this Agreement with respect to such
                  Product, the following non-refundable and non-creditable
                  payments upon the first occurrence of the following events for
                  such Product if such Product contains a different Memory
                  Compound then any Memory Compound contained in the Product for
                  which any payment has been made under Section 4.4(b):

                  --------------------------------------------------------------
                           EVENT                              PAYMENT (MIO US$)
                  --------------------------------------------------------------
                  [*] (or foreign equivalent)] for a             [*] *
                  Neurological Indication and delivery
                  of the data and reports specified
                  in Schedule 1
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for a              [*]**
                  Neurological Indication and delivery
                  of the data and reports specified in
                  Schedule 1]
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for a              [*]***
                  Neurological Indication and delivery
                  of the data and reports specified in
                  Schedule 1
                  --------------------------------------------------------------

----------------

*     Based upon this event occurring on or before [*]. If this event occurs
      after such date, the payment shall be reduced to [*] dollars ($[*]).

**    Based upon this event occurring on or before [*]. If this event occurs
      after such date, the payment shall be reduced to [*] dollars ($[*]).

***   If any Product is for a Neurological Indication other than Alzheimer's
      disease, then the payment shall be reduced to [*] dollars ($[*]).

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         (b)     Psychiatric Indications. Roche shall pay to Memory, in order to
                 maintain its license rights pursuant to Section 2.1 and the
                 other provisions of this Agreement with respect to such
                 Product, the following non-refundable and non-creditable
                 payments upon the first occurrence of the following events for
                 such Product if such Product contains a different Memory
                 Compound than any Memory Compound contained in a Product for
                 which any payment has been made under Section 4.4(a):

                  --------------------------------------------------------------
                           EVENT                              PAYMENT (MIO US$)
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for                [*]*
                  Psychiatric Indication and delivery
                  of the data and reports specified in
                  Schedule 1
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for                [*]**
                  a Psychiatric Indication and delivery
                  of the data and reports specified in
                  Schedule 1
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for                [*]***
                  a Psychiatric Indication and delivery
                  of the data and reports specified in
                  Schedule 1
                  --------------------------------------------------------------

                  Each payment in Section 4.4 (a) and 4.4 (b) shall be due and
                  payable by Roche within sixty (60) days after occurrence of
                  the applicable event. Roche will make each of such payments
                  only once for each Product, for the first occurrence of a
                  respective event, regardless of how many times the event may
                  be subsequently achieved with such Product.

                  For the avoidance of doubt, the Parties confirm and agree that
                  no amount payable under this Article 4 shall reduce any
                  royalties payable under Article 5.

         (c)      Reduction of Milestone Payments. Notwithstanding anything to
                  the contrary contained in this Section 4.4, if within [*] of
                  Memory's receipt of a payment pursuant to Section (a) or (b)
                  with respect to the [*] for a Product for a Neurological
                  Indication or a Psychiatric Indication, Memory otherwise would
                  be entitled to receive a payment upon the occurrence of the
                  same or any other event set forth in Section (a) or (b) for
                  another Product for a Neurological Indication or a Psychiatric
                  Indication, respectively, the amount of such payment shall be
                  reduced by [*] percent ([*]%).

         (d)      Limitation on Payment Reductions. Notwithstanding anything to
                  the contrary contained in this Section 4.4, in no event shall
                  the payment by Roche to Memory with respect to the occurrence
                  of the [*] be less than [*] dollars ($[*]) for a Product for a
                  Neurological Indication or [*] dollars ($[*]) for a Product
                  for a Psychiatric Indication.

4.5      Development Event Based Payments.
         ---------------------------------

----------------
*     Based upon this event occurring on or before [*]. If this event occurs
      after such date, the payment shall be reduced to [*] dollars ($[*]).

**    Based upon this event occurring on or before [*]. If this event occurs
      after such date, the payment shall be reduced to [*] dollars ($[*]).

***   If any Product is for a Psychiatric Indication other than schizophrenia,
      then the payment shall be reduced to [*] dollars ($[*]).

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         (a)      Neurological Indications. Roche shall pay to Memory with
                  respect to such Product the following non-refundable and
                  non-creditable payments upon the first occurrence of the
                  following events for such Product if such Product contains a
                  different Memory Compound than any Memory Compound contained
                  in a Product for which any payment has been made under Section
                  4.4(b) or 4.4(c):

                  --------------------------------------------------------------
                           EVENT                              PAYMENT (MIO US$)
                  --------------------------------------------------------------
                  [*] (or a foreign equivalent)                  [*]
                  for a Neurological Indication
                  --------------------------------------------------------------
                  [*] for a Neurological Indication              [*]
                  --------------------------------------------------------------
                  [*] for a Neurological Indication              [*]
                  --------------------------------------------------------------

         (b)      Psychiatric Indications. Roche shall pay to Memory with
                  respect to such Product the following non-refundable and
                  non-creditable payments upon the first occurrence of the
                  following events for such Product if such Product contains a
                  different Memory Compound than any Memory Compound contained
                  in a Product for which any payment has been made under Section
                  4.4(a) or 4.4(c):

                  --------------------------------------------------------------
                           EVENT                              PAYMENT (MIO US$)
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for                [*]
                  a Psychiatric Indication
                  --------------------------------------------------------------
                  [*] for a Psychiatric Indication               [*]
                  --------------------------------------------------------------
                  [*] for a Psychiatric Indication               [*]
                  --------------------------------------------------------------

         (c)      Other Indications. Roche shall pay to Memory the following
                  non-refundable, non-creditable payments upon the first
                  occurrence of the following events for a Product if such
                  Product contains a different Memory Compound than any Memory
                  Compound contained in a Product for which any payment has been
                  made under Sections 4.4(a) or 4.4(b):

                  --------------------------------------------------------------
                           EVENT                              PAYMENT (MIO US$)
                  --------------------------------------------------------------
                  [*] (or foreign equivalent) for                [*]
                  an Other Indication
                  --------------------------------------------------------------
                  [*] for an Other Indication                    [*]
                  --------------------------------------------------------------
                  [*] for an Other Indication                    [*]
                  --------------------------------------------------------------

                  Each payment in Section 4.5(a) and 4.5(b) shall be due and
                  payable by Roche within sixty (60) days after occurrence of
                  the applicable event. Roche will make each of such payments
                  only once for each Product, for the first occurrence of a
                  respective event, regardless of how many times the event may
                  be subsequently achieved with such Product.

                  For the avoidance of doubt, the Parties confirm and agree that
                  no amount payable under this Article 4 shall reduce any
                  royalties payable under Article 5.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

4.6      Early Exercise of Rights. If, at any time after the Initiation of Phase
         I with respect to a Product for a Neurological Indication or a
         Psychiatric Indication and prior to the earlier of the [*] related
         thereto and the date that is five (5) years after the Effective Date,
         Roche desires to obtain the license rights as described in Section 2.1
         hereof with respect to a compound for a Neurological Indication or
         Psychiatric Indication, (i) Roche shall give written notice thereof to
         Memory and (ii) Memory shall provide to Roche, during any calendar
         year, for evaluation purposes only, all test results, data (e.g., in
         vivo data, safety data and structure-activity relationship data) and
         applicable Memory Patent Rights relating to up to [*] compounds which
         are nicotinic alpha-7 agonists in preclinical development by Memory as
         may be selected by Roche. Within the sixty (60) day period following
         receipt by Roche of such items with respect to each compound, Roche may
         designate such compound to obtain a License to such compound. Roche
         shall then pay to Memory a one-time payment of [*] percent ([*]%) all
         unpaid License Rights Maintenance Fees with respect to such Product;
         and thereupon Roche shall obtain a License with respect to such
         Product. Thereafter, Roche shall pay to Memory the remaining [*]
         percent ([*]%) of the License Rights Maintenance Fees with respect to
         such Product as and when provided in Section 4.4, except the events for
         payments by Roche specified in Section 4.4 shall not include the
         delivery of any data or reports. From and after the date of such
         notice, Roche shall be responsible for and pay all costs and expenses
         relating to the continued development of such Product, including
         obtaining all Regulatory Approvals with respect thereto.

         In the event that, within [*] years after the Effective Date, Memory
         has not [*] with respect to any Product, Roche shall thereafter have
         the right pursuant to this Section 4.6 to have Memory provide to Roche,
         during any calendar year, for evaluation purposes only, all test
         results, data (e.g., in vivo data, safety data and structure-activity
         relationship data) and applicable Memory Patent Rights relating to an
         unlimited number of compounds which are nicotinic alpha-7 agonists in
         preclinical development by Memory as may be selected by Roche. Within
         the sixty (60) day period following receipt by Roche of such items with
         respect to each compound, Roche may designate such compound to obtain a
         License to such compound. Roche shall then pay to Memory the License
         Rights Maintenance Fees with respect to such Product as and when
         provided in Section 4.4, except the events for payments by Roche
         specified in Section 4.4 shall not include the delivery of any data or
         reports. From and after the date of such notice, Roche shall be
         responsible for and pay all costs and expenses relating to the
         continued development of such Product, including obtaining all
         Regulatory Approvals with respect thereto.

                              ARTICLE 5. ROYALTIES

5.1      Royalties. Roche shall pay to Memory the following payments for a given
         Product having a Regulatory Approval for a Neurological Indication,
         based upon the Net Sales of such Product, which such Net Sales shall be
         subject to adjustment as provided in this Article 5. Such royalty
         payments shall be calculated by multiplying the following percentages
         by the following annual Net Sales of such Product (all Net Sales
         amounts in $ US million):

                  --------------------------------------------------------------
                      ANNUAL NET SALES                 PERCENT (%) OF NET SALES
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         By way of illustration, assume in calendar year 2012 that (i) Net Sales
         of the Product total $[*] and (ii) no adjustments or deductions to
         payments under this Article 5 apply. The royalties due and payable by
         Roche to Memory for such Net Sales would be $[*], calculated as
         follows:

                  --------------------------------------------------------------
                                        APPLICABLE SALES-
                    NET SALES             BASED PAYMENT          AMOUNT PAYABLE
                  (IN MILLIONS)            PERCENTAGE            (IN MILLIONS)
                  --------------------------------------------------------------
                      US$[*]                  [*]%                   US$[*]
                  --------------------------------------------------------------
                      US$[*]                  [*]%                   US$[*]
                  --------------------------------------------------------------
                      US$[*]                  [*]%                   US$[*]
                  --------------------------------------------------------------
                      US$[*]                                         US$[*]
                  --------------------------------------------------------------

5.2      Roche shall pay to Memory the following payments for a given Product
         having a Regulatory Approval for a Psychiatric Indication, based upon
         the Net Sales of such Product, which such Net Sales shall be subject to
         adjustment as provided in this Article 5. Such royalty payments shall
         be calculated by multiplying the following percentages by the following
         annual worldwide Net Sales of such Product (all Net Sales amounts in $
         US million):

                  --------------------------------------------------------------
                      ANNUAL NET SALES                 PERCENT (%) OF NET SALES
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------
                          [*]                                   [*]
                  --------------------------------------------------------------

5.3      Roche shall pay to Memory royalties for given Product having a
         Regulatory Approval for an Other Indication, in an amount equal to [*]
         of the royalties payable for a Product having a Regulatory Approval for
         a Neurological Indication based upon the Net Sales of such Product,
         which royalty rate shall be subject to adjustment as provided in this
         Article 5.

5.4      Adjustment Related to Multiple Indications. Notwithstanding anything to
         the contrary contained in Section 5.1 hereof, in the event that a
         Product has a Regulatory Approval for more than one indication, Roche
         shall pay royalties to Memory based upon the royalty schedule providing
         the highest applicable royalty rates for which a Regulatory Approval
         has been obtained in a Major Market Country. Specifically, if the
         Product is approved for (i) a Neurological Indication in a Major Market
         Country and for another indication other than a Psychiatric Indication,
         the royalties payable by Roche to Memory shall be based upon Net Sales
         of such Product in the Territory as if all of such Net Sales occurred
         for such Neurological Indication; (ii) a Psychiatric Indication in a
         Major Market Country and for another indication, the royalties payable
         by Roche shall be based upon Net Sales of such Product in the Territory
         as if all of such Net Sales occurred for the Psychiatric Indication;
         and (iii) multiple Other Indications, then the royalties payable by
         Roche to

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         Memory shall be equal to [*] of the royalties payable under the royalty
         schedule for a Product approved for a Neurological Indication.

5.5      Term of Royalty Payments. Roche shall calculate and make royalty
         payments to Memory under this Article 5 commencing on Launch in any
         country. The Net Sales of a given country shall be included for
         purposes of calculating royalties under this Section until the later of
         (a) expiration of the last to expire of Composition of Matter Claim in
         such country and (b) ten (10) years from the Launch of such Product in
         such country. With respect to the ten (10) year period, the EU will be
         considered as one country.

5.6      Adjustments Related to Valid Claims. For a given Product, if in, or
         with respect to, a country of the Territory no Valid Claim Covers such
         Product, then Roche may calculate royalties for such Product using only
         [*] percent ([*]%) of the amount Roche would have used for such country
         to calculate royalties for such Product if a Valid Claim Covered such
         Product in such country unless prior to ten years from the Launch of
         such Product in, or with respect to, such country (EU considered as one
         country) a Valid Claim Covering such Product exists in, or with respect
         to, such country in which case Roche shall resume calculating royalties
         using [*] percent ([*]%) of such amount.

5.7      Adjustments Related to Third Party Competition. For a given Product in
         a given calendar quarter, if in a country of the Territory (a) a Third
         Party is selling Bioequivalent Product, and (b) Roche has an obligation
         to make payments under this Agreement with respect to Net Sales of the
         given Product in such country, and (c) a Valid Claim Covers the given
         Product in such country and (d) in such country, sales of units of
         Bioequivalent Products in aggregate total at least [*] percent ([*]%)
         of the aggregate sales of units of Bioequivalent Products and Products
         as measured at the end of such calendar quarter, and (e) Roche has, if
         it is reasonable under the circumstances, brought in the country and
         continued to diligently prosecute a patent infringement suit under any
         relevant Composition of Matter Claims against the Third Party or
         another in privity, then Roche shall have the right to calculate
         royalties with respect to such calendar quarter by including only [*]
         percent ([*]%) of the amount Roche would have otherwise included for
         such country to calculate sales-based payments if no Bioequivalent
         Product existed in such country.

5.8      Adjustments Related to Third Party Payments. Roche or its Affiliate
         shall pay and be responsible for the entire consideration owed to any
         Third Party pursuant to the terms of any existing or future patent
         licensing agreement relating to a Product. Roche shall have the right
         to deduct a maximum of [*] percent ([*]%) of the consideration actually
         paid by Roche or its Affiliate to a Third Party (other than [*] or [*]
         with respect to any license under a patent which Covers the molecule
         per se of the compound which is the nicotinic alpha-7 agonist that is
         included in a given Product, from payments otherwise due and payable by
         Roche to Memory under this Agreement. In no event as a result of this
         Section 5.8 shall Roche reduce the royalties owed to Memory under this
         Article 5 by greater than [*] percent ([*]%) of Net Sales in the
         Territory for a given calendar quarter (and Roche shall be entitled to
         accumulate amounts not permitted to be deducted in a prior period and
         deduct such amounts in a future period).

         Notwithstanding the above, (i) any payment owed under an agreement
         between Memory and The Trustees of Columbia University dated July 22,
         1998, as it may be amended, shall be the sole responsibility of Memory,
         and (ii) any payment owed under any agreement between Roche or its
         Affiliate and any Third Party entered into prior to the Effective Date
         shall be the sole responsibility of Roche, for which Roche shall not be
         entitled to any deduction from payments due and payable to Memory under
         this Agreement.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

5.9      Bonus Payment. Roche shall pay to Memory a one-time, non-refundable and
         non-creditable amount after the first occurrence of the following event
         with respect to the first Product having Regulatory Approval for a
         Neurological Indication:

                  --------------------------------------------------------------
                                EVENT                             PAYMENT (US$)
                  --------------------------------------------------------------
                  Net Sales exceed [*] dollars ($[*]) for            [*]
                  a full calendar year (Jan. 1 - Dec. 31)
                  during the Agreement Term
                  --------------------------------------------------------------
                  Net Sales exceed [*] dollars ($[*]) for            [*]
                  a full calendar year (Jan 1 - Dec 31)
                  during the Agreement Term
                  --------------------------------------------------------------

         Roche shall pay to Memory a one-time, non-refundable and non-creditable
         amount after the first occurrence of the following event with respect
         to the first Product having a Regulatory Approval for a Psychiatric
         Indication:

                  --------------------------------------------------------------
                                EVENT                             PAYMENT (US$)
                  --------------------------------------------------------------
                  Net Sales exceed [*] dollars ($[*]) for            [*]
                  a full calendar year (Jan. 1 - Dec. 31)
                  during the Agreement Term
                  --------------------------------------------------------------
                  Net Sales exceed [*] dollars ($[*]) for            [*]
                  a full calendar year (Jan 1 - Dec 31)
                  during the Agreement Term
                  --------------------------------------------------------------

         Each payment in this Section 5.9 shall be due and payable by Roche
         within sixty (60) days after occurrence of the applicable event.
         Notwithstanding anything to the contrary, payment shall be made
         pursuant to this Section 5.9 with respect to a Product for a
         Neurological Indication or a Psychiatric Indication only if such
         Product contains a different Memory Compound than any Memory Compound
         contained in a Product for which payment previously has been made
         pursuant to this Section 5.9.

5.10     Combination Products. In the event Roche or its Affiliates intend to
         sell a Combination Product, the Parties shall meet approximately one
         (1) year prior to the anticipated commercial launch of such Combination
         Product to negotiate in good faith and agree to an appropriate
         adjustment to Net Sales to reflect the relative significance and value
         (including consideration of relative market share, sales potential and
         price potential) of the Product and the other pharmaceutically active
         agent(s) contained in the Combination Product. If, after good faith
         negotiations (not to exceed ninety (90) days), the Parties cannot agree
         to an appropriate adjustment, Net Sales shall equal Net Sales of the
         Combination Product multiplied by a fraction, the numerator of which is
         the reasonable fair market value of the Product and the denominator
         (including consideration of relative market share, sales potential and
         price potential) of which is the reasonable fair market value
         (including consideration of relative market share, sales potential and
         price potential) in the aggregate of all pharmaceutically active agents
         contained in the Combination Product.

5.11     Mechanisms for Adjustments. In no event shall any adjustments pursuant
         to Sections 5.6, 5.7 and 5.8 result in Memory receiving royalties for a
         given calendar quarter pursuant to Sections 5.1, 5.2 and 5.3 in an
         amount less than [*] percent ([*]%) of the amounts set forth therein as
         if no adjustment(s) had been made. If Roche obtains a license to a
         compound which is a nicotinic alpha-7 agonist from a Third Party and
         includes such compound in a Product, as a result of which

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         the Product becomes a Combination Product, Roche shall not be entitled
         to an adjustment pursuant to Section 5.8 as a result of such license.

                     ARTICLE 6. PAYMENT, REPORTING, AUDITING

6.1      Currency and Conversion.
         -----------------------

         (a)      All payments under this Agreement shall be in U.S. Dollars by
                  wire transfer of immediately available funds in accordance
                  with instruction or instructions from the Party being paid.

         (b)      Whenever calculation of Net Sales requires conversion from any
                  foreign currency, Roche shall convert the amount of Net Sales
                  in foreign currencies as computed in Roche's central Swiss
                  Francs Sales Statistics for the countries concerned, using for
                  internal foreign currency translation Roche's then current
                  standard practices actually used on a consistent basis in
                  preparing its audited financial statements.

         (c)      For sublicensees in a country, when calculating the Net Sales,
                  the sublicensee shall report to Roche the amount of such sales
                  within thirty (30) days from the end of the reporting period,
                  after having converted each applicable monthly sales in
                  foreign currency into Swiss Francs using the average rate of
                  exchange published in the Wall Street Journal (or some other
                  source agreed upon by the Parties for any particular country)
                  for each respective month of the reporting period.

6.2      Payments. After the Launch of the Product in any country of the
         Territory, Roche shall calculate royalty payments set forth in Article
         5 quarterly as of March 31, June 30, September 30 and December 31 (each
         being the last day of a reporting period). Roche shall pay such
         payments quarterly within sixty (60) days after the end of each
         reporting period in which Net Sales occur during the Agreement Term.

         With each such payment, Roche shall deliver to Memory the following
         information split between the US and the ROW Territory:

         (a)      Adjusted Gross Sales for each Product;

         (b)      Net Sales for each Product;

         (c)      the royalty payments due to Memory for the reporting period;

         If Memory reasonably requests additional information relating to gross
         sales of the Products in the Major Market Countries, deductions
         therefrom to calculate Adjusted Gross Sales or Net Sales and/or
         adjustments thereto, Roche agrees to provide such information to Memory
         within a reasonable time, provided, that Memory shall have the rights
         to exercise such requests not more than once during any period of
         twelve (12) consecutive months.

         In the event Roche does not pay Memory any amounts due under this
         Agreement, including pursuant to Articles 4 and 5, within the
         applicable time period set forth herein, without limiting Memory's
         rights under Article 16, such payment shall bear interest, to the
         extent permitted by applicable law, at the rate of interest (prime
         rate) as published from time to time in the weekly Federal Reserve H.15
         bulletin (or a successor or similar publication) plus [*]% for the
         applicable period calculated on the number of days such a payment is
         overdue.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

6.3      Taxes.
         -----

         (a)     Memory shall pay all applicable taxes levied on Memory under
                 this Agreement.

         (b)     If provision is made in law or regulation of any country for
                 withholding of taxes of any type, levies on Memory or other
                 charges against Memory with respect to any amounts payable
                 under this Agreement to Memory, Roche shall promptly pay such
                 tax, levy or charge for and on behalf of Memory to the proper
                 governmental authority, and shall promptly furnish Memory with
                 receipt of such payment. Roche shall have the right to deduct
                 any such tax, levy or charge actually paid from payment due
                 Memory or be promptly reimbursed by Memory if no further
                 payments are due Memory. Each Party agrees to assist the other
                 Party in claiming exemption from such deductions or
                 withholdings under double taxation or similar agreement or
                 treaty from time to time in force and in minimizing the amount
                 required to be so withheld or deducted.

6.4      Blocked Countries. If by reason of law Roche is unable to convert to
         U.S. Dollars a portion of the amount due by Roche under this Agreement,
         then Roche shall notify Memory in writing and, upon written request
         from Memory, Roche shall pay to Memory such portion, in the currency of
         any other country designated by Memory and legally available to Roche.

6.5      Accounting.
         ----------

         (a)     Roche shall maintain and cause its Affiliates and sublicensees
                 to maintain books of account containing all particulars that
                 may be necessary for the purpose of calculating all payments
                 under this Agreement. Such books of account shall be kept at
                 their principal place of business. Memory shall have the right
                 to engage Roche's independent, certified public accountant to
                 perform, on behalf of Memory, an audit of such books and
                 records of Roche and its Affiliates and sublicensees as is
                 necessary to confirm any amounts payable to Memory under this
                 Agreement for the period or periods requested by Memory and the
                 correctness of any report or payments made under this
                 Agreement.

         (b)     Such audits shall be conducted during normal business hours
                 upon reasonable prior written notice from Memory (minimum of
                 thirty (30) days) in such a manner as to not unnecessarily
                 interfere with Roche's normal business activities, and shall
                 include results of no more than three (3) preceding calendar
                 years prior to audit notification.

         (c)     Such audit shall not occur more frequently than once per
                 calendar year nor more frequently than once with respect to
                 records covering any specific period of time. Notwithstanding
                 the preceding, if Memory reasonably believes, after reviewing
                 information received from Roche's independent public
                 accountant, that an additional audit is appropriate to address
                 an apparent discrepancy between Roche's returns and other
                 information as is necessary for reporting hereunder, Memory
                 shall have the right, by an audit specialty firm reasonably
                 acceptable to Roche, employed by Memory and at Memory's own
                 expense, to perform such appropriate audit procedures.

         (d)     The use of all information, data, documents and abstracts
                 referred above shall be for the sole purpose of verifying
                 statements or compliance with this Agreement, shall be treated
                 as Roche Confidential Information subject to Article 15 of this
                 Agreement and, except in the event of a dispute between the
                 Parties regarding amounts payable hereunder or the results of
                 any audit, need not be retained more than three (3) years from
                 the end of the

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 calendar year to which each shall pertain. Audit results shall
                 be shared by Roche and Memory.

         (e)     If any audit hereunder reveals an underpayment, Roche shall
                 promptly make up such underpayment. If any audit hereunder
                 reveals an overpayment, Memory shall promptly reimburse such
                 overpayment. Memory shall bear the full cost of any audit under
                 this Section 6.5, unless such audit discloses an underpayment
                 by Roche of more than [*] percent ([*]%) of the amount owed
                 hereunder if Net Sales exceeds [*] dollars ($[*]) in the
                 Territory for the calendar year, or [*] percent ([*]%) of the
                 amount owed hereunder if Net Sales are equal to or less than
                 [*] dollars ($[*]) in the Territory for the calendar year, in
                 which case Roche shall bear the full cost of such audit as
                 performed by Roche's independent, certified public accountant
                 and any audit specialty firm employed by Memory, together with
                 interest on any such underpayment from the date otherwise due
                 through the date of payment at the rate set forth in Section
                 6.2.

         (f)     The failure of Memory to request verification of any payment
                 calculation during which corresponding records are required to
                 be retained under this Section 6.5 shall be considered
                 acceptance of such reporting by Memory.

                              ARTICLE 7. GOVERNANCE

7.1      The Strategic Alliance. The Parties hereby establish a Strategic
         Alliance with respect to the development of Products and the
         determination of licensing rights with respect thereto.

7.2      Joint Liaison Team. A Joint Liaison Team ("JLT") shall govern the
         research and development activities of the Strategic Alliance,
         including preparing development plans, supervising ongoing research and
         development activities, recommending actions in response to unforeseen
         events, supervising the transition of development and manufacturing
         activities from Memory to Roche and development of preclinical and
         clinical strategies (including clinical candidate selection, the
         commencement of the Initiation of Phase I and the Initiation of Phase
         IIa).

         (a)      Organization. The JLT shall consist of five (5) members, two
                  (2) members to be designated by Roche and three (3) members to
                  be designated by Memory. Each Party shall notify the other
                  Party of the member(s) designated by such Party, in writing,
                  within thirty (30) days after the Effective Date. Any Party
                  may withdraw the designation of any of its members of the JLT
                  and designate a replacement at any time by giving prior
                  written notice of the withdrawal and identifying the
                  replacement to the other Party. The chairperson of the JLT
                  shall be from Memory.

         (b)      Meetings. The JLT shall hold semi-annual meetings on mutually
                  agreeable dates, with the location of the meetings to
                  alternate between Memory and Roche, or their Affiliate's,
                  facilities. The frequency and location of such meetings may be
                  modified by mutual agreement of the Parties. Notwithstanding
                  the foregoing, one of the semi-annual meetings per year may be
                  held by videoconference. Each Party shall pay its own expenses
                  associated with the meeting. Each Party may, in its
                  discretion, invite non-member employees to attend meetings of
                  the JLT.

         (c)      Decision-Making. Decisions of the JLT shall be by consensus,
                  with each Party having one collective vote. If the JLT is
                  unable to decide a matter by consensus, the Parties shall
                  refer such matter for resolution to the Head of Global
                  Research or the Head of Global Development on behalf of Roche
                  and the Chief Scientific Officer of Memory ("Alliance

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<PAGE>

                  Executives"). If the Alliance Executives are unable to resolve
                  any such matter after good faith discussions, then the final
                  decision shall rest with Memory.

         (d)      Dissolution. The JLT automatically shall be dissolved upon the
                  end of the last to expire License Exercise Period, unless the
                  Parties otherwise agree in writing.

7.3      Research and Development Activities. Subject to the provisions of
         Section 3.1 and the oversight of the JLT, Memory shall conduct, at its
         cost except as provided in Section 4.3 those research and development
         activities through the End of Phase IIa with respect to the Products
         that Memory deems necessary or appropriate.

         During the five (5) year period after the Effective Date, Memory shall
         obtain the prior written consent of Roche (which consent shall not be
         unreasonably withheld) before Memory shall commence the Initiation of
         Phase I with respect to more than [*] nicotinic alpha-7 agonist
         compounds.

7.4      Progress Reports. Within fifteen (15) days after the end of each
         calendar quarter, Memory shall prepare and deliver to Roche a written
         progress report for the JLT summarizing in reasonable detail the
         results to date of the Strategic Alliance, although Memory shall have
         no obligation to disclose any compound structures until the Initiation
         of Phase I with respect to such compound, except for Memory's
         obligation to provide such information to Roche pursuant to Section 2.2
         or Section 4.6 hereof. In addition, upon request, Roche shall have the
         right to receive copies of the raw data from all test results of
         nicotinic alpha-7 agonist compounds. After each meeting, the JLT shall
         prepare a report summarizing the discussions held and conclusions
         reached and setting forth plans for the Strategic Alliance for the next
         six (6) months.

                         ARTICLE 8. CLINICAL DEVELOPMENT

8.1      Development. Memory, at its sole cost except as provided in Section
         2.5, shall pursue clinical development of each Product through the date
         that Roche obtains a License with respect to such Product and, subject
         to the provisions of Section 3.1 hereof and oversight of the JLT, shall
         have sole control of all such clinical development activities. Roche,
         at its sole cost except as provided in Section 2.5, shall (1) pursue
         clinical development of each Product from and after the date that Roche
         obtains a License with respect to such Product and, subject to the
         provisions of Section 3.1 hereof and oversight of the DRT, be
         responsible for all such clinical development activities, and (2)
         obtain all government and health authority approvals which are required
         for Products to be manufactured and offered for sale in the Territory,
         including authorizations as may be required for the production,
         importation, pricing, reimbursement, and sale of Products in the
         Territory.

8.2      Development Review Team.
         -----------------------

         (a)      Development Review Team Membership. For a given Product, no
                  later than sixty (60) days after the End of Phase IIa for a
                  Product, the Parties shall establish a Development Review Team
                  (the "DRT") consisting of up to three (3) representatives from
                  Roche and one (1) representative of Memory. Each Party may
                  select alternative representatives to replace its DRT members
                  selected by such Party as necessary, and may have other
                  representatives attend meetings of the DRT in addition to the
                  representatives of the Team. All guidance provided by the DRT
                  shall be based upon the majority opinion of the DRT.

         (b)      DRT Meetings and Responsibilities. No less than two times per
                  year for so long as the DRT contemplates clinical development
                  of a Memory Compound in the Territory for the

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<PAGE>

                 purpose of obtaining Regulatory Approval in a country of the
                 Territory. Roche shall organize meetings of the DRT.

                 At its meetings, the DRT shall conduct a peer review of Roche's
                 development of Products in the Territory and shall provide
                 Roche with strategic guidance with respect to Roche's
                 development of Products in the Territory.

                 Roche shall report to the DRT on all significant clinical and
                 regulatory issues relating to Products, and the DRT shall make
                 recommendations and provide strategic guidance with respect to
                 such issues.

         (c)     Costs. Each party shall be responsible for bearing its own
                 costs related to the DRT.

                         ARTICLE 9. REGULATORY APPROVALS

Memory, at its sole cost, except as provided in Section 4.3, shall pursue all
Regulatory Approvals in the Territory related to each Product through the date
that Roche obtains a License with respect to such Product. Roche, at its sole
cost, shall pursue all Regulatory Approvals in the Territory related to each
Product from and after the date that Roche obtains a License with respect to
such Product, including the preparation and filing of applications for
Regulatory Approvals, as well as any or all governmental approvals required to
manufacture, or have manufactured, and sell Products. Roche shall be responsible
for pursuing, compiling and submitting all regulatory filing documentation, and
for interacting with regulatory agencies, for all Products in all countries in
the Territory. Roche or its Affiliates shall own and file all regulatory filings
and Regulatory Approvals for all Products in all countries of the Territory.

Roche shall supply Memory with a copy of all material communications related to
Product to or from the regulatory agencies for all Major Market Countries. Upon
request of Memory, Roche shall supply Memory with a copy of all such
communications in all countries.

Roche, at its sole cost, shall report to appropriate authorities in accordance
with local requirements all adverse events related to use of Products worldwide.
Adverse events related to the use of Product worldwide shall be in a single
database, centralized, held and owned by Roche. Roche shall notify Memory of
material adverse events related to Products.

                       ARTICLE 10. MANUFACTURE AND SUPPLY

10.1     Clinical Supplies of Product. Memory shall supply at its own cost all
         clinical supply of each Product and placebo to be used in the Territory
         through the date that Roche obtains a License with respect to such
         Product, either by itself or through a Third Party. Roche shall supply
         at its own cost all clinical supply of each Product and placebo to be
         used in the Territory from and after the date that Roche obtains a
         License with respect to such Product and during the remainder of the
         Agreement Term, either by itself or through a Third Party. Roche's
         requirements for supplying Product necessary to fill orders for sales
         for any particular calendar quarter shall take precedence over
         providing clinical supplies of the Product to Memory for that calendar
         quarter. The Parties shall cooperate in all reasonable respects
         relating to the transition of manufacturing activities from Memory to
         Roche. (For example, Roche will need Memory to continue to provide
         clinical supplies of the Product during this transition period.)

10.2     Commercial Supply. Roche shall be solely and exclusively responsible at
         its own expense for the manufacture and supply of Product for sale in
         the Territory, either by itself or through Third Parties.

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<PAGE>

                          ARTICLE 11. COMMERCIALIZATION

Except as expressly set forth in Section 2.5, Roche, at its own expense, shall
have sole responsibility and decision making authority for the marketing,
promotion, sale and distribution of Product in the Territory. During the
Agreement Term, upon written request of Memory not to exceed once per year,
Roche will fully inform Memory regarding the commercialization of Products in
the Territory by Roche, its Affiliates and sublicensees.

                             ARTICLE 12. TRADEMARKS

Roche shall own worldwide all trademarks on and in connection with Products, and
shall, at its cost, be responsible for procurement, maintenance and enforcement
of all worldwide trademarks registration on and in connection with Products.

        ARTICLE 13. OWNERSHIP OF INTELLECTUAL PROPERTY AND PATENT RIGHTS

13.1     Ownership of Intellectual Property. Ownership of any Patent Rights
         developed in the course of the Strategic Alliance shall be determined
         in accordance with United States federal law. Memory shall own all
         Inventions having as inventors only employees, consultants or agents of
         Memory or its Affiliate. Memory shall require all of its employees,
         consultants and agents to assign all inventions related to Products
         made by them to Memory.

13.2     Patent Prosecution and Maintenance.
         ----------------------------------

         (a)      General. Memory shall have the right, but not the obligation,
                  to prepare, file, prosecute (including interference and
                  opposition proceedings) and maintain (including interferences,
                  re-examination and opposition proceedings) (collectively,
                  "Handle") the Memory Patent Rights.

                  Should Memory decide that it does not desire to Handle a
                  Memory Patent Right in a given country, it shall provide
                  written notice to Roche thereof no less than sixty (60) days
                  prior to the date when the Memory Patent Right would become
                  abandoned in such country. After receiving such notice, Roche
                  may, but is not obligated, to Handle the Memory Patent Right
                  in such country.

         (b)      Memory Prosecution Obligations Prior to Roche Exercise. Prior
                  to Roche exercising its right to obtain a License pursuant to
                  Section 2.1 hereof, Memory shall have no obligation to consult
                  Roche with respect to prosecution or maintenance of any Memory
                  Patent Rights. However, Memory shall have an obligation to
                  keep Roche informed generally as to the status of any pending
                  patent applications and issued patents. Memory will provide
                  Roche with updates as to the status of Memory's patent
                  prosecution on a regular basis (but no less than once per
                  quarter).

         (c)      Memory Prosecution Obligations After Roche Exercise. After
                  Roche has exercised its right to obtain a License pursuant to
                  Section 2.1 hereof, Roche shall reimburse Memory, on a
                  patent-by-patent basis, as to any Memory Patent Rights
                  Covering the Product for which Roche has exercised its right
                  to a License for fifty percent (50%) of any reasonable and
                  documented external costs for Handling such patent or patent
                  application incurred after the date Roche obtained such
                  License.

                 If Roche obtains a License with respect to any Patent Rights
                 Covering a Product, then:

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 (A)    Memory shall use reasonable efforts to consult with
                        Roche as to the Handling of any Memory Patent Rights in
                        sufficient time (for example, thirty (30) days for
                        instances where actions are due within three (3) months
                        of a communication from a Patent Office) before any
                        action is due to allow Roche to provide comments
                        thereon, which comments Memory must reasonably consider
                        if provided to Memory at least thirty (30) days before
                        such action is due.

                 (B)    Memory shall promptly notify and consult with Roche
                        regarding any priority patent application ("Invention
                        Priority Application") Covering such Product before
                        filing said application.

                 (C)    Memory shall promptly prepare and send to Roche a draft
                        of the Invention Priority Application for the Roche's
                        comment and approval, which shall be provided within
                        thirty (30) days after receipt of such draft Invention
                        Priority Application ("Comment Period").

                 (D)    After reasonably considering Roche's comments, Memory
                        shall file the Invention Priority Application. If Roche
                        fails to provide comments on a draft within the Comment
                        Period, Memory shall be free to file the Application at
                        the end of the Comment Period or later.

                 (E)    Within nine (9) months after the filing of an Invention
                        Priority Application, Memory shall provide Roche a
                        written list of countries ("Country List") in which
                        Memory intends to file patent applications that claim
                        priority from the given Invention Priority Application.
                        Roche, as promptly as practicable, shall notify Memory
                        in writing of those countries on the Country List and
                        any additional countries ("Additional Countries") where
                        Roche requests that patent applications be filed. In
                        turn, Memory promptly shall notify Roche if it agrees
                        with the filing of applications in such Additional
                        Countries selected by Roche.

                 (F)    Memory shall file patent applications at least in those
                        countries where Roche and Memory agree to the filing of
                        patent applications ("Mutually Agreed to Countries") as
                        well as in Additional Countries selected by Roche that
                        are not within the Mutually Agreed to Countries,
                        provided that Roche shall reimburse Memory for the
                        reasonable external prosecution costs in the Additional
                        Countries. Memory shall have the option of filing an
                        international application designating at least the
                        Mutually Agreed to Countries, to be followed by national
                        filings in the desired countries.

                 (G)    Memory shall be responsible for the filing and
                        prosecution of the patent applications and the
                        maintenance of the granted patents as to the Mutually
                        Agreed to Countries. Memory and Roche each will pay
                        fifty percent (50%) of the reasonable external costs
                        relating to the preparation, filing and prosecution of
                        the patent applications and the maintenance of the
                        granted patents.

                 (H)    As to those countries where Roche and Memory do not
                        agree to the filing of patent applications, the Party
                        requesting the filing in said country shall be
                        responsible for all costs relating to the filing and
                        prosecution of the patent applications and the
                        maintenance of the granted patents in said countries.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 (I)    Should Roche not respond to Memory within thirty (30)
                        days after the date Memory provides the Country List,
                        then Memory shall be free to initiate patent filings, at
                        Memory's sole expense and discretion, in the countries
                        Memory has selected or still selects.

                 (J)    Memory's failure to notify Roche to the contrary within
                        thirty (30) days after the date upon which Roche
                        notifies Memory of the Additional Countries will be
                        deemed an agreement on the part of Memory to file patent
                        applications in all such Additional Countries and to pay
                        fifty percent (50%) of the reasonable external costs
                        associated with such filings.

                 (K)    If, in a country, at any time, Roche decides not to
                        continue funding the prosecution of a patent application
                        or maintenance of a patent under this Section 13.2,
                        Roche shall notify Memory in writing ("Withdrawal
                        Notice"), and Roche shall be relieved from paying any
                        further expenses with regard to the patent filing in the
                        country. After receiving the Withdrawal Notice, Memory
                        may but is not obligated, at its sole expense and
                        discretion, to continue to prosecute and maintain the
                        patent filing in the country.

                 (L)    If, in a country, at any time, Memory decides not to
                        continue the prosecution of a patent application or
                        maintenance of a patent under this Section 13.2, and
                        such patent application or patent is not one as to which
                        Roche has already sent a Withdrawal Notice, then Memory
                        shall notify Roche in writing no less than sixty (60)
                        days prior to the date when the patent application or
                        patent would become abandoned in such country. At
                        Roche's written request and no cost to Memory, Memory
                        shall then assign to Roche such patent application or
                        patent in such country, and Roche may thereafter
                        continue to prosecute and maintain the patent filing in
                        the country, at Roche's own cost and in Roche's name, to
                        the extent Roche desires to do so.

                 (M)    For the Mutually Agreed to Countries and Additional
                        Countries, Memory shall consult with Roche as to the
                        prosecution and maintenance of all patent applications
                        and patents claiming Inventions in sufficient time (for
                        example, thirty (30) days for instances where actions
                        are due within three (3) months of a communication from
                        a Patent Office) before any action is due to allow Roche
                        to provide comments thereon, which comments Memory must
                        reasonably consider.

13.3     Prosecution Costs. Memory shall be solely responsible for payment of
         the reasonable costs to Handle the Memory Patent Rights, except as
         otherwise provided in Section 13.2 above.

13.4     Cooperation. The Parties agree to cooperate in the preparation,
         prosecution and maintenance of all patent applications filed under
         Article 13, including obtaining and executing necessary powers of
         attorney and assignments by the named inventors, providing relevant
         technical reports to Memory concerning the invention disclosed in such
         patent application, obtaining execution of such other documents which
         shall be needed in the filing and prosecution of such patent
         applications, discussing in good faith foreign filing strategy, and, as
         requested, updating each other regarding the status of such patent
         applications.

13.5     Infringement. Each Party shall promptly provide written notice to the
         other Party during the Agreement Term of any known infringement or
         suspected infringement of any Memory Patent Right by a Third Party
         making, using, offering for sale, selling, or importing a compound
         which

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         is a nicotinic alpha-7 agonist or a product containing a compound
         which is a nicotinic alpha-7 agonist (collectively "NA7 Infringement").

         After Roche has exercised its right to obtain a License with respect to
         a Product, Roche shall have the first right to bring and control any
         action or proceeding with respect to NA7 Infringement relating to a
         Memory Patent Right Covering such Product at Roche's own expense and by
         counsel of its own choice, and Memory shall have the right, at its own
         expense, to be represented in any such action by counsel of its own
         choice. If Roche fails to bring any such action or proceeding with
         respect to NA7 Infringement within (a) [*] days following the notice of
         alleged infringement or (b) [*] days before the time limit, if any, set
         forth in the appropriate laws and regulations for the filing of such
         actions, whichever comes first, Memory shall have the right to bring
         and control any such action at its own expense and by counsel of its
         own choice, and Roche shall have the right, at its own expense, to be
         represented in any such action by counsel of its own choice.

         A Party that elects to bring and control an infringement action
         pursuant to this Section 13.5 shall provide prompt written notice to
         the other Party of any such suit commenced or action taken by such
         Party.

         Upon written request, the Party bringing suit or taking action
         ("Initiating Party") shall keep the other Party informed of the status
         of any such suit or action and shall provide the other Party with
         copies of all substantive documents and communications filed in such
         suit or action. The Initiating Party shall have the sole and exclusive
         right to select counsel for any such suit or action.

         The Initiating Party shall, except as provided below, pay all expenses
         of the suit or action, including, without limitation, the Initiating
         Party's attorneys' fees and court costs. Prior to Roche exercising its
         right to obtain a License with respect to the Product that is the
         subject of the suit or action, Memory shall pay attorneys' fees and
         court costs and shall be entitled to retain any damages, settlement
         fees or other consideration received as a result of such suit or
         action. After Roche has exercised its right to obtain a License with
         respect to the Product which is the subject of such suit or action, the
         Parties' attorneys' fees and court costs in connection with any such
         suit or action shall be deducted from any damages, settlement fees or
         other consideration received as a result of such suit or action and the
         balance thereof shall belong to the Initiating Party, except to the
         extent such damages, settlement fees or other consideration are
         attributable to lost profits with respect to Products in the Territory,
         in which case the Parties shall share in such recovery as follows: (i)
         if Memory has exercised its co-promotion right with respect to such
         Product, Memory shall receive [*]% of the lost profits for such Product
         and Roche shall receive the remaining [*]%; or (ii) if Memory has not
         exercised its co-promotion right with respect to such Product, Memory
         shall receive the royalty that it would have pursuant to Article 5 had
         the infringing sales been made by the Parties, and Roche would receive
         the balance of the recovery.

         If the Initiating Party believes it reasonably necessary, upon written
         request to the other Party, the other Party shall join as a party to
         the suit or action but shall be under no obligation to participate
         except to the extent that such participation is required as the result
         of its being a named party to the suit or action. At the Initiating
         Party's written request, the other Party shall offer reasonable
         assistance to the Initiating Party at no charge to the Initiating Party
         except for reimbursement of reasonable out-of-pocket expenses incurred
         by the other Party in rendering such assistance. The other Party shall
         have the right to participate and have its own representation in any
         such suit or action at its own expense.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         Prior to Roche obtaining a License with respect to the Product which is
         the subject of such suit or action, Memory shall have the sole right to
         control any settlement and all negotiations relating thereto. After
         Roche has exercised its right to obtain a License with respect to the
         Product which is the subject of suit or action, the Initiating Party
         shall have the right to control settlement; provided, however, that no
         settlement shall be entered into without the written consent of the
         other Party, not to be unreasonably withheld.

         For the avoidance of doubt, Memory shall have the right, but not the
         obligation, to bring and control any action or proceeding with respect
         to any Memory Patent Right relating to infringement other than NA7
         Infringement, at its own expense, without obligation or notice to
         Roche.

13.6     Hatch-Waxman. Notwithstanding anything to the contrary, should a Party
         receive a certification for a Product pursuant to the Drug Price
         Competition and Patent Term Restoration Act of 1984 (Public Law
         98-417), as amended, or its equivalent in a country other than the US,
         then such Party shall immediately provide the other Party with a copy
         of such certification. Prior to Roche exercising its right to obtain a
         License which respect to a Product, then Memory shall have the sole
         right to enforce Memory Patent Rights Covering such Product. After
         Roche has exercised its right to obtain a License with respect to a
         Product, then Roche shall have the right to enforce Memory Patent
         Rights Covering such Product; and Roche shall have [*] days from the
         date on which it receives or provides a copy of such certification to
         provide written notice to Memory ("H-W Suit Notice") whether Roche will
         bring suit, at its expense, within a [*] day period from the date of
         such certification. Should such [*] day period expire without Roche
         bringing suit or providing such H-W Suit Notice, then Memory shall be
         free to immediately bring suit in its name. If Roche brings suit, at
         Roche's written request, Memory agrees to be named as a party to such
         suit.

13.7     Patent Notices. All notices provided under this Article 13 to Roche
         shall be given to:

                  F.Hoffmann-La Roche Ltd
                  Grenzacherstrasse 124
                  CH-4070 Basel, Switzerland
                  Attn:    Head, Patent Law

with copies of all notices relating to U.S. cases to:

                  Hoffmann-La Roche Inc.
                  340 Kingsland Street
                  Nutley, New Jersey 07110
                  Attn:    Chief Patent Counsel

All notices provided under this Article 13 to Memory shall be given to:

                  Memory Pharmaceutical Corp.
                  100 Philips Parkway
                  Montvale, New Jersey 07645
                  Attn: Head of Business Development

With copies of all notices to:

                  Millen, White, Zelano and Branigan, P.C.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  Arlington Courthouse, Plaza I
                  2200 Clarendon Blvd, Suite 1400
                  Arlington, Virginia 22201
                  Attn: Anthony Zelano, Esq.

                   ARTICLE 14. REPRESENTATIONS AND WARRANTIES

14.1     Representations and Warranties of Both Parties. Each Party warrants and
         represents to the other Party that it has the full right and authority
         to enter into this Agreement and that it is not aware of any impediment
         which would inhibit its ability to perform the terms and conditions
         imposed on it by this Agreement.

14.2     Representations and Warranties of Memory.
         ----------------------------------------

         (a)      Corporate Action. Memory represents and warrants to Roche that
                  all corporate action on the part of Memory, its officers,
                  directors and stockholders necessary for (i) the
                  authorization, execution and delivery of this Agreement and
                  (ii) the performance of all obligations of Memory hereunder
                  has been taken and this Agreement constitutes the legal and
                  binding obligation of Memory, enforceable against Memory in
                  accordance with its terms.

         (b)      No Conflict. Memory represents and warrants to Roche that the
                  execution of this Agreement and the performance of the
                  transactions contemplated by this Agreement by Memory will not
                  conflict with or result in a breach of any of the terms,
                  conditions or provisions of, or constitute a default under any
                  agreement or other instrument to which Memory is a party or by
                  which it or any of its property is bound.

         (c)     Right to Grant Licenses. Memory represents and warrants to
                 Roche that it has the right to grant Roche the licenses and
                 sublicenses that Memory hereby grants to Roche under this
                 Agreement.

         (d)     Third Party Patent Infringement. Memory represents and warrants
                 that as of the Effective Date, to its actual knowledge of its
                 senior executives, after consultation with patent counsel,
                 there is no issued patent right owned or controlled by any
                 Third Party which Covers the lead compounds of the Program
                 identified by Memory to Roche and would prevent Roche from
                 selling such Memory Compound in any country of the Territory.
                 As of the date hereof, the Memory Patent Rights in existence as
                 of the Effective Date are owned exclusively by Memory; and
                 Memory's senior executives, after consultation with patent
                 counsel, have no actual knowledge of any information that
                 would, in their opinion, render invalid and/or unenforceable
                 Composition of Matter Claims for the lead compounds of the
                 Program in such Memory Patent Rights.

         (e)     No Material Mistatements. Memory warrants and represents to
                 Roche that (i) its senior executives have not intentionally
                 failed to disclose any information actually known to them which
                 in their reasonable opinion, would be material to Roche
                 entering into this Agreement, and to the actual knowledge of
                 such senior executives such information does not contain any
                 untrue statement of material fact or omit to state a material
                 fact; (ii) it has provided correct and complete copies of all
                 documents furnished to Roche.

14.3     Representations and Warranties of Roche. Roche represents and warrants
         to Memory that all corporate action on the part of Roche, its officers,
         directors and stockholders necessary for (i) the

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         authorization, execution and delivery of this Agreement and (ii) the
         performance of all obligations of Roche hereunder has been taken and
         this Agreement constitutes the legal and binding obligation of Roche,
         enforceable against Roche in accordance with its terms. The execution
         of this Agreement and the performance of the transactions contemplated
         by this Agreement by Roche will not conflict with or result in a breach
         of any of the terms, conditions or provisions of, or constitute a
         default under any agreement or other instrument to which Roche is a
         party or by which it or any of its property is bound.

14.4     Disclaimer. THE FOREGOING REPRESENTATIONS AND WARRANTIES ARE IN LIEU OF
         ALL OTHER REPRESENTATIONS AND WARRANTIES NOT EXPRESSLY SET FORTH
         HEREIN. MEMORY AND ROCHE DISCLAIM ALL OTHER REPRESENTATIONS AND
         WARRANTIES, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO EACH OF THEIR
         RESEARCH, DEVELOPMENT AND COMMERCIALIZATION EFFORTS HEREUNDER,
         INCLUDING, WITHOUT LIMITATION, WHETHER THE PRODUCTS CAN BE SUCCESSFULLY
         DEVELOPED OR MARKETED, THE ACCURACY, PERFORMANCE, UTILITY, RELIABILITY,
         TECHNOLOGICAL OR COMMERCIAL VALUE, COMPREHENSIVENESS, MERCHANTABILITY
         OR FITNESS FOR ANY PARTICULAR PURPOSE WHATSOEVER OF THE PRODUCTS. IN NO
         EVENT SHALL EITHER MEMORY OR ROCHE BE LIABLE FOR SPECIAL, INDIRECT,
         INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT BASED
         ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY.

                      ARTICLE 15. CONFIDENTIAL INFORMATION

15.1     Treatment of Confidential Information. In carrying out rights and
         obligations under this Agreement, the Parties will be sharing
         proprietary information ("Confidential Information") with each other.
         Except as permitted by this Agreement, each Party shall and shall cause
         its Affiliates to treat Confidential Information received from the
         other Party as it treats its own proprietary information. In
         particular, it shall not disclose, divulge or otherwise communicate
         such Confidential Information to Third Parties, or use it for any
         purpose except pursuant to and in order to carry out its obligations
         under this Agreement during the Agreement Term and for a period of [*]
         years thereafter; provided that, each Party (i) may disclose the
         Confidential Information to such of its directors, officers, employees,
         Affiliates, consultants, subcontractors, sublicensees or agents to the
         extent reasonably necessary to carry out its obligations under this
         Agreement, and (ii) hereby agrees to exercise every reasonable
         precaution to prevent and restrain the unauthorized disclosure or use
         of Confidential Information.

15.2     Release from Restrictions. The provisions of Section 15.1 shall not
         apply to any Confidential Information which:

         (a)      was known or used by the Receiving Party or its Affiliates
                  prior to its date of disclosure to the Receiving Party or its
                  Affiliates by the Disclosing Party or its Affiliates, as
                  evidenced by the prior written records of the Receiving Party
                  or its Affiliates; or

         (b)      either before or after the date of the disclosure to the
                  Receiving Party or its Affiliates, is lawfully disclosed to
                  the Receiving Party or its Affiliates by a Third Party
                  rightfully in possession of the Confidential Information; or

         (c)      either before or after the date of the disclosure to the
                  Receiving Party or its Affiliates, becomes published or
                  generally known to the public through no fault or omission on
                  the

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 part of the Receiving Party or its Affiliates, but such
                 inapplicability applies only after such information is
                 published or becomes generally known; or

         (d)     is independently developed by the Receiving Party or its
                 Affiliates without reference to or reliance upon any
                 Confidential Information of the Disclosing Party or its
                 Affiliates; or

         (e)     is reasonably determined to be required to be disclosed by the
                 Receiving Party or its Affiliates to comply with applicable
                 securities or other laws, to defend or prosecute litigation or
                 to comply with governmental regulations, provided that, the
                 Receiving Party or its Affiliates uses all reasonable efforts
                 to provide prior written notice of such disclosure to the
                 Disclosing Party or its Affiliates and to take reasonable and
                 lawful actions to avoid or limit such disclosure; or

         (f)     is disclosed to a Party's financial sources or potential
                 acquirors of its stock or assets (directly or indirectly) so
                 long as, with respect to a potential purchase the potential
                 acquirer or financial source executes a confidentiality
                 agreement which is at least as restrictive as the provisions of
                 this Article 15.

15.3     Exceptions. The restrictions set forth in this Article 15 shall not
         prevent either Party from (i) preparing, filing, prosecuting or
         maintaining a patent application or its resulting patents related to a
         Product in accordance with the terms of this Agreement or (ii)
         disclosing Confidential Information to governmental agencies to the
         extent required or desirable to secure government approval for the
         development or marketing of a Product.

15.4     Publications. During the Agreement Term, the following provisions shall
         apply with respect to the disclosure in scientific journals,
         publications or scientific presentations by any Party relating to any
         scientific work performed as part of the Strategic Alliance:

         (a)     A Party (the "Publishing Party") shall provide the other Party
                 with a copy of any proposed publication relating to the work
                 performed and/or the results achieved in the conduct of the
                 Strategic Alliance at least forty-five (45) days prior to
                 submission for publication so as to provide such other Party an
                 opportunity to recommend any changes it reasonably believes are
                 necessary to preserve the Confidential Information belonging in
                 whole or in part to such other Party, and the incorporation of
                 such recommended changes shall not be unreasonably refused;

         (b)     If such other Party in writing notifies ("Notice") the
                 Publishing Party, within forty-five (45) days of receipt of the
                 copy of the proposed publication, that such publication in its
                 reasonable judgment (i) contains an Invention for which the
                 other Party reasonably desires patent protection or (ii)
                 disclosure to competitors could be expected to have a material
                 adverse effect on the commercial value of any Confidential
                 Information, the Publishing Party shall prevent such
                 publication or delay such publication for a mutually agreeable
                 period of time. In the case of Inventions, a delay shall be for
                 a period reasonably sufficient to permit the timely preparation
                 and filing of a patent application(s) or application(s) on the
                 Invention, and in no event less than ninety (90) days from the
                 date of Notice.

                        ARTICLE 16. TERM AND TERMINATION

16.1     Conditions Subsequent. If the Hart-Scott-Rodino Antitrust Improvements
         Act of 1976 (the "HSR Act") applies to the transactions contemplated by
         this Agreement, the effectiveness of this

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         Agreement and the transactions contemplated hereunder shall be subject
         to and shall be contingent upon the satisfaction under the following
         condition subsequent to the execution of this Agreement. The condition
         subsequent shall be the earlier to occur of (i) approval of the
         transaction by the Federal Trade Commission or the appropriate US
         anti-trust authorities or (ii) the expiration or termination of all
         applicable waiting periods, requests for information (and any
         extensions thereof) under the HSR Act.

         Subject to the terms and conditions of this Agreement, each Party shall
         use all reasonable efforts to take, or cause to be taken, all
         reasonable actions and to do, or cause to be done, all things necessary
         and appropriate to satisfy the condition subsequent and to consummate
         the transactions contemplated by this Agreement in accordance with the
         terms hereof.

         Each Party shall cooperate with the other Party in the preparation,
         execution and filing of all documents that are required or permitted to
         be filed on or before the Effective Date for the purpose of
         consummating this transaction, including, filings pursuant to the
         Hart-Scott-Rodino Antitrust Improvements Act of 1976. Each Party shall
         bear its own costs with respect to preparing, executing and filing such
         documents.

16.2     Agreement Term. The Agreement Term shall commence on the Effective Date
         and end, unless earlier terminated upon the mutual agreement of the
         Parties or in accordance with the provisions of this Article 16, on the
         date of expiration of all royalty and other payment obligations (the
         "Expiration Date") under this Agreement. Upon the occurrence of the
         Expiration Date, if any, the Licenses granted to Roche by Memory under
         this Agreement to make, have made, use, offer for sale, sell and import
         Products shall be fully paid-up.

16.3     Termination for Breach. (a) Each Party ("Non-Breaching Party") shall be
         entitled to terminate this Agreement by written notice to the other
         Party ("Breaching Party") in the event that the Breaching Party is in
         default of any of its material obligations hereunder and fails to
         remedy such default within sixty (60) days (thirty (30) days for
         payment defaults) after provision of written notice thereof by the
         Non-Breaching Party. Any such notice shall specifically state that the
         Non-Breaching Party intends to or reserves the right to terminate this
         Agreement in the event that the Breaching Party shall fail to timely
         remedy the default.

         The effective date of termination under this Section for breach of a
         material obligation shall be the date sixty (60) days after provision
         of written notice thereof by the Non-Breaching Party.

         In the event Roche does not pay any full payment by reason of a good
         faith dispute as to whether such payment is due pursuant to the terms
         of this Agreement, Memory shall not have the right to terminate this
         Agreement as a result of such nonpayment until resolution of the
         dispute.

16.4     Roche's Right to Terminate.
         --------------------------

         (a)     Roche shall have the unilateral right to elect not to maintain
                 its license rights with respect to any Product pursuant to
                 Section 2.1 hereof, on a Product-by-Product basis, upon the
                 occurrence of each event described in Section 4.4 hereof with
                 respect to such Product. Roche may exercise such right by
                 giving written notice thereof to Memory within thirty (30) days
                 after the occurrence of such event. In the event Roche
                 exercises such right, Roche shall not have any obligation to
                 make the payment to Memory related to such event and shall not
                 have the right to obtain a License with respect to such
                 Product, and this Agreement shall terminate with respect to
                 such Product and Roche shall have no

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 further obligation to make any payments pursuant to Sections
                 4.4 and 4.5 and Article 5 hereof relating to such Product.

         (b)     Roche shall have the unilateral right to terminate this
                 Agreement on a region-by-region basis (the regions being North
                 America (US and Canada), Europe and Asia)) or
                 Product-by-Product, either on a worldwide basis or as to North
                 America (US and Canada) only or ex-North America only, at any
                 time by providing six (6) months prior written notice to
                 Memory; provided, however, that if the Parties do not agree as
                 to a proposed sublicense for which Memory has withheld consent,
                 Roche shall have a unilateral right to terminate this Agreement
                 for the territory to which such proposed sublicense relates.
                 Notwithstanding the preceding sentence, if there has been a
                 launch of a Product in a Major Market Country, then such prior
                 notice must be for twelve (12) months. The effective date of
                 termination under this Section shall be the date six (6) months
                 (or twelve (12) months as the case may be) after Roche provides
                 such written notice to Memory.

16.5     Consequences of Termination.
         ---------------------------

         Upon (a) any termination of this Agreement in its entirety pursuant to
         Section 16.2, (b) termination of this Agreement by Roche of this
         Agreement in its entirety or in a region or country or in respect of a
         Product pursuant to Section 16.4 hereof, or (c) termination of this
         Agreement by Memory in its entirety or in a region pursuant to Article
         3, any and all rights and licenses of any kind or nature granted by
         Memory to Roche under this Agreement (or, as applicable, with respect
         to termination of this Agreement as to a country, region or Product,
         respectively) shall terminate on the effective date of termination. In
         the event of any such termination, the following shall apply.

         (a)     Roche shall, upon Memory's written request, assign and transfer
                 to Memory, or its Affiliates as requested by Memory, at no
                 expense to Memory, or its Affiliates, and free of any liens,
                 pledges or security interests other than those incurred in the
                 commercialization of the Product, all of Roche's right, title
                 and interest in and to (i) all trademarks and trademark
                 applications used or intended for use specifically for the
                 relevant Product(s), (ii) all regulatory filings (such as INDs
                 and drug master files), Regulatory Approvals, and clinical
                 trial agreements (to the extent assignable and not cancelled)
                 for the relevant Product(s), and (iii) all data, including
                 clinical data, materials and information of any kind or nature
                 whatsoever, in Roche's possession or in the possession of its
                 Affiliates or its or their respective agents related to the
                 relevant Product(s) and (iv) all rights relating to the
                 infringement of Memory Patent Rights and Joint Patent Rights,
                 related to and necessary for the commercialization of the
                 relevant Product(s). Without limiting the generality of the
                 preceding sentence, Memory shall, upon such transfer, have the
                 right to disclose such filings, approvals and data to (i)
                 governmental agencies of the country or region to the extent
                 required or desirable to secure government approval for the
                 development, manufacturing or sale of Product in the country or
                 region, (ii) Third Parties acting on behalf of Memory, its
                 Affiliates or sublicensees, to the extent reasonably necessary
                 or desirable for the development, manufacture, or sale of
                 Product in the country or region, and (iii) Third Parties to
                 the extent reasonably necessary or desirable to market Product
                 in the country or region. All such filings, approvals and data
                 transferred to Memory pursuant to this Section 16.4 shall be
                 deemed to be Memory Confidential Information.

         (b)     In addition, for a given Product and country or region so
                 terminated, or for the Territory in the case of termination of
                 this Agreement in its entirety, Roche hereby grants to

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 Memory the right to obtain a sole and exclusive, royalty
                 bearing license, under Roche Patent Rights and Roche Know-How
                 Covering the Product and Roche trademarks used or intended for
                 use in connection with the sale of Product, to make, have made,
                 use, offer for sale, sell and import such Product(s) in such
                 country, region or the Territory, as applicable. Memory shall
                 exercise such right by giving written notice thereof to Roche
                 within sixty (60) days after the date of termination. In
                 consideration of such license, Memory shall pay Roche
                 reasonable milestones and royalties consistent with industry
                 practices as may be mutually agreed upon by the Parties (such
                 royalties not to exceed [*] percent ([*]%) of Net Sales); and
                 if the Parties are unable to agree upon such financial terms,
                 such matter shall be resolved by arbitration in accordance with
                 Article 17.

         (c)     Roche shall supply, or cause to be supplied, to Memory, upon
                 Memory's written request, Memory or its licensee's clinical
                 and/or commercial requirements of Product(s), pursuant to a
                 supply agreement to be negotiated in good faith by the parties,
                 provided that (i) such requirements shall be supplied to Memory
                 or its licensee at Roche's direct manufacturing costs and
                 allocation of manufacturing overhead, and (ii) Roche's supply
                 obligation shall not continue for more than [*] years after
                 such termination, and (iii) Roche shall maintain the same
                 Product(s) quality and specifications as immediately prior to
                 notice of termination, and (iv) as to other terms, such
                 agreement shall be reasonably consistent with Roche's other
                 arm's length supply agreements, and (v) Memory shall use
                 reasonable best efforts to effect a transfer as soon as
                 practicable of Product(s) manufacturing activities from Roche
                 to another supplier. In addition, Roche shall also transfer to
                 Memory and its designated supplier a manufacturing transfer
                 package that will enable Memory or such designated supplier to
                 manufacture the Product(s) in a timely manner.

         Roche shall take prompt actions, including the execution of such
         instruments, agreements and documents, as are necessary or desirable to
         effect the foregoing. It is agreed such transfers and actions shall be
         completed in a manner that will permit Memory to continue without
         interruption the business of developing, manufacturing, marketing and
         selling the Product(s).

16.6     Royalty and Payment Obligations. Termination of this Agreement by
         either Party for any reason will not release Roche from any obligation
         to pay royalties or make any payments to Memory which were accrued
         prior to the effective date of termination (including for sales made
         and Events achieved under Article 4, prior to the date of termination).
         However, termination of this Agreement by either Party for any reason
         will release Roche from any obligation to pay royalties or make any
         payments to Memory which would have otherwise become accrued after the
         effective date of termination.

16.7     Termination for failure to satisfy the condition subsequent. Either
         Party may terminate this Agreement in its entirety, upon ten (10) days
         prior written notice to the other Party if the condition subsequent
         under Section 16.1 has not been fulfilled by February 8, 2004, in which
         case, upon termination there shall be no liabilities for obligations on
         the part of either party except that Article 15 shall survive such
         termination and except for any breach of Section 16.1.

16.8     Survival of Obligations. Section 2.3, Article 6, Section 13.5, Section
         13.6, Section 13.7, Article 14, Article 15, Section 16.5, Section 16.6,
         Section 16.8, Article 17 and Article 18, and any definitions used in
         such Section or Article, shall survive the termination of this
         Agreement in its entirety. Except for obligations which clearly are not
         intended to continue in respect of a partial termination (including the
         diligence obligation, and except as provided in Section 16.6, royalty
         obligations), with respect to the region, country or Product
         terminated, all obligations in this Agreement shall survive a partial
         termination.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                             ARTICLE 17. ARBITRATION

Any dispute, controversy or claim ("Dispute") arising out of or in relation to
this Agreement, or the breach, termination or invalidity thereof, that cannot be
settled amicably by the Parties after a good faith discussion to resolve the
Dispute by the appropriate officers of the Parties, shall be submitted by either
Party to arbitration conducted in accordance with the rules then in effect of
the American Arbitration Association ("AAA"). Arbitration shall take place in
Newark, New Jersey and shall be conducted by three (3) arbitrators, one of whom
shall be designated by each Party, and the third selected by the other two (2)
arbitrators, all within the time limits established by the then existing rules
of the AAA. If the two (2) designated arbitrators are unable to agree upon a
third arbitrator by two (2) months after submission of the matter to
arbitration, the AAA shall select such third arbitrator within three (3) months
of such original submission. The written decision of the arbitrators shall be
final and binding on the parties and may be enforced in any court having
jurisdiction over the Parties or their current assets. The award rendered by the
arbitrators shall include the cost of arbitration, reasonable attorneys' fees
and reasonable costs for expert and other witnesses, and in the event of a
termination, in whole or in part, a transition procedure, including the
performance of transition services by Roche, so as to maintain the value of the
assets being transferred to Memory and, to the extent contemplated by Section
16.4, permit Memory to conduct the business being transferred to it. The parties
shall be entitled to discovery as provided in the Federal Rules of Civil
Procedure then in effect in the District of New Jersey. If the issues in dispute
involve scientific or technical matters, at least one of the arbitrators chosen
hereunder shall have educational training and/or experience sufficient to
demonstrate a reasonable level of knowledge in the Field and pharmaceutical drug
development. Notwithstanding the preceding provisions of this Article 17, with
respect to any breach or threatened breach of this Agreement of Section 15.1,
16.4 or any other provision where a Party would not be appropriately compensated
by the payment of money, a party has a right to seek injunctive relief from any
court of competent jurisdiction to enjoin such breach or threatened breach
and/or to seek specific performance.

In the event of a Dispute, a Party shall have no right to toll or delay any
obligation in this Agreement unrelated to the Dispute as a result of the
Dispute. By way of example, if Roche owes Memory $5,000,000 and claims a
$2,000,000 payment is not due by reason of breach of Memory, then Roche shall
pay the $5,000,000, and the parties will resolve such $2,000,000 Dispute
pursuant to Article 17.

                            ARTICLE 18. MISCELLANEOUS

18.1     Indemnification.
         ---------------

         (a)     Roche agrees to defend Memory and the other Memory Indemnified
                 Parties at Roche's cost and expense, and will indemnify and
                 hold Memory and its directors, officers, employees and agents
                 (the "Memory Indemnified Parties") harmless from and against
                 any claims, losses, costs, damages, fees or expenses arising
                 out of or otherwise relating to (i) activities of Roche and its
                 Affiliates in the conduct of the Strategic Alliance, (ii) the
                 development, manufacture, use, offer for sale, sale or other
                 disposition of any Product by Roche, its Affiliates or
                 sublicensees, and each of their distributors, representatives
                 or anyone in privity therewith, or (iii) the gross negligence
                 or willful misconduct of Roche, its Affiliates or sublicensees.
                 In the event of any such claim against the Memory Indemnified
                 Parties by a Third Party, Memory shall promptly notify Roche in
                 writing of the claim (provided that any failure or delay to
                 notify shall not excuse any obligations of Roche except to the
                 extent Roche is actually prejudiced thereby) and Roche shall
                 solely manage and control, at its sole expense, the defense of
                 the claim and its settlement provided further that Roche shall
                 not settle any such claim, if such settlement may have an
                 adverse effect on Memory, without the prior written consent of
                 Memory, which

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<PAGE>

                 consent shall not be unreasonably withheld. The Memory
                 Indemnified Parties shall cooperate with Roche and may, at
                 their option and expense, be represented in any such action or
                 proceeding. Roche shall not be liable for any litigation costs
                 or expenses incurred by the Memory Indemnified Parties without
                 Roche's written authorization.

         (b)     Memory agrees to defend Roche and the other Roche Indemnified
                 Parties at Memory's cost and expense, and will indemnify and
                 hold Roche and its directors, officers, employees and agents
                 (the "Roche Indemnified Parties") harmless from and against any
                 claims, losses, costs, damages, fees and expenses arising out
                 of any claim, arising out of or otherwise relating to (i)
                 activities of Memory in the conduct of the Strategic Alliance,
                 (ii) the development, manufacture, use, offer for sale, sale or
                 other disposition of any Product by Memory, its Affiliates,
                 licensees other than Roche, sublicensees and each of their
                 distributors, representatives or anyone in privity therewith
                 (but only to the extent same is a consequence of Section 2.5,
                 Article 3 and/or Article 16), and (iii) the gross negligence or
                 willful misconduct of Memory, its Affiliates, licensees,
                 distributors, representatives or anyone in privity therewith.
                 In the event of any such claim against the Roche Indemnified
                 Parties by an Independent Third Party, Roche shall promptly
                 notify Memory in writing of the claim (provided that any
                 failure or delay to notify shall not excuse any obligation of
                 Memory except to the extent Memory is actually prejudiced
                 thereby) and Memory shall solely manage and control, at its
                 sole expense, the defense of the claim and its settlement
                 provided further that Memory shall not settle any such claim if
                 such settlement may have an adverse effect on Roche without the
                 prior written consent of Roche, which consent shall not be
                 unreasonably withheld. The Roche Indemnified Parties shall
                 cooperate with Memory and may, at their option and expense, be
                 represented in any such action or proceeding. Memory shall not
                 be liable for any litigation costs or expenses incurred by the
                 Roche Indemnified Parties without Memory's written
                 authorization.

18.2     Publicity. Neither Party shall originate any publicity, news release or
         other public announcement, written or oral, relating to this Agreement,
         including its terms, without the prior approval of the other Party
         except solely to the extent a Party reasonably believes same is
         otherwise required by law. Such approval shall not be unreasonably
         withheld. Each Party shall to the extent consistent with applicable
         laws and regulations limit the disclosure of the financial terms set
         forth in this Agreement (such as by requesting confidential treatment
         of such terms in documents required to be filed with the US Securities
         and Exchange Commission).

18.3     Force Majeure. Neither Party to this Agreement shall be responsible to
         the other Party for nonperformance or delay in performance of the terms
         or conditions of this Agreement due to acts of God, acts of
         governments, war, riots, strikes, accidents in transportation, or other
         causes beyond the reasonable control of such Party, but such force
         majeure shall toll any and all obligations and time periods for so long
         as such force majeure continues.

18.4     Bankruptcy. All licenses (and to the extent applicable rights) granted
         under or pursuant to this Agreement by Memory to Roche are, and shall
         otherwise be deemed to be, for purposes of Section 365(n) of Title 11,
         US Code (the "Bankruptcy Code"), licenses of rights to "intellectual
         property" as defined under Section 101(60) of the Bankruptcy Code.
         Unless Roche elects to terminate this Agreement under Article 16, the
         Parties agree that Roche, as a licensee or sublicensee of such rights
         under this Agreement, shall retain and may fully exercise all of its
         rights and elections under the Bankruptcy Code, subject to the
         continued performance of its obligations under this Agreement.

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<PAGE>

18.5     Governing Law. This Agreement shall be governed by and interpreted in
         accordance with the laws of New Jersey, without giving effect to
         principles of conflicts of law.

18.6     Waiver. The waiver by a Party of a breach or a default of any provision
         of this Agreement by the other Party shall not be construed as a waiver
         of any succeeding breach of the same or any other provision, nor shall
         any delay or omission on the part of a Party to exercise or avail
         itself of any right, power or privilege that it has or may have
         hereunder operate as a waiver of any right, power or privilege by such
         Party.

18.6     Notices. Any notice or other communication in connection with this
         Agreement must be in writing and may be given by any of the following
         methods: (i) personal delivery against a signed receipt; (ii)
         registered or certified mail, postage prepaid, return receipt
         requested; or (iii) by overnight delivery service which obtains a
         signed receipt. Notice shall be effective when delivered to the
         addressee at the address listed below or such other address as the
         addressee shall have specified in a written notice actually received by
         the addresser.

         If to Memory:

                  Memory Pharmaceuticals Corp.
                  100 Philips Parkway
                  Montvale, New Jersey 07645
                  Attn: Head of Business Development

         and

                  Sills Cummis Radin Tischman Epstein & Gross, P.A.
                  One Riverfront Plaza
                  Newark, New Jersey 07102
                  Attn: Ira A. Rosenberg, Esq.

         If to Roche:

                  F. Hoffmann-La Roche Ltd
                  Grenzacherstrasse 124
                  CH-4070

                  Basel, Switzerland
                  Attn: Legal Department

         and

                  Hoffmann La-Roche Inc.
                  340 Kingsland Street
                  Nutley, NJ  07110
                  Attn.: Corporate Secretary

18.8     No Agency. Nothing herein shall be deemed to constitute either Party as
         the agent or representative of the other Party. Each Party shall be an
         independent contractor, not an employee or partner of the other Party.
         Each Party shall be responsible for the conduct of activities at its
         own facilities and for any liabilities resulting therefrom. Neither
         Party shall be responsible for the acts or omissions of the other
         Party, and neither Party will have authority to speak for, represent or
         obligate the other Party in any way without prior written authority
         from the other Party.

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<PAGE>

18.9     Entire Agreement. This Agreement and the Schedules hereto (which
         Schedules are deemed to be a part of this Agreement for all purposes)
         contain the full understanding of the Parties with respect to the
         subject matter hereof and supersede all prior understandings and
         writings relating thereto. No waiver, alteration or modification of any
         of the provisions hereof shall be binding unless made in writing and
         signed by the Parties.

18.10    Headings. The headings contained in this Agreement are for convenience
         of reference only and shall not be considered in construing this
         Agreement.

18.11    Severability. In the event that any provision of this Agreement is held
         by a court of competent jurisdiction to be unenforceable because it is
         invalid or in conflict with any law of any relevant jurisdiction, the
         validity of the remaining provisions shall not be affected, and the
         Parties shall negotiate a substitute provision that, to the extent
         possible, accomplishes the original business purpose. During the period
         of such negotiation, and thereafter if no substituted provision is
         agreed upon, any such provision which is enforceable in part but not in
         whole shall be enforced to the maximum extent permitted by law.

18.12    Assignment. Neither this Agreement nor any of the rights or obligations
         hereunder may be assigned by either Party without the prior written
         consent of the other Party, except to an Affiliate of the assigning
         Party or to any other party who acquires all or substantially all of
         the pharmaceutical business of the assigning Party by merger, sale of
         assets or otherwise, so long as such Affiliate or other party agrees in
         writing to be bound by the terms of this Agreement. Notwithstanding the
         preceding, if Memory assigns its rights and/or obligations under this
         Agreement to a party who acquires all or substantially all of the
         pharmaceutical business of Memory by merger, sale of assets or
         otherwise, then Memory's rights under Section 2.4 shall become null and
         void.

18.13    Successors and Assigns. Except as otherwise provided herein, this
         Agreement shall be binding upon and inure to the benefit of the Parties
         hereto and their successors and permitted assigns under Section 18.12.

18.14    Non-Solicitation. Each party agrees that, during the period from the
         Effective Date to the date that is two (2) years after the Effective
         Date, it shall not directly or indirectly solicit the services (by way
         of employment or otherwise), or employ or otherwise engage the
         services, of any of the other Party's personnel involved in the
         Strategic Alliance (including, without limitation, any member of the
         JLT, any subteam or the DRT). Roche agrees that, during such two (2)
         year period and for a period of one (1) year thereafter, it shall not
         directly or indirectly solicit the services (by way of employment or
         otherwise), or employ or otherwise engage the services, of any member
         of senior management of Memory (including, without limitation, any
         Director, Associate Director or Assistant Director or any
         higher-ranking personnel of Memory).

18.15    Interpretation. The words "include," "includes" and "including" shall
         be deemed to be followed by the phrase "without limitation." All
         references herein to Articles, Sections, and Schedules shall be deemed
         references to Articles and Sections of, and Schedules to, this
         Agreement unless the context shall otherwise require. Except as
         otherwise expressly provided herein, all terms of an accounting or
         financial nature shall be construed in accordance with international
         accounting standards ("IAS"), as in effect from time to time. Unless
         the context otherwise requires, countries shall include territories.

18.6     Counterparts. This Agreement may be executed in any number of
         counterparts, each of which shall be deemed an original but all of such
         together shall constitute one and the same instrument.

<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed in their names by their properly and duly authorized officers or
representatives as of the dates below written.

MEMORY PHARMACEUTICALS CORP.      HOFFMANN-LA ROCHE INC.

By:    /s/ Tony Scullion          By:    /s/ Dennis E. Burns
       -----------------------           ---------------------------------------

Title: Chief Executive Officer    Title: VP, Global Head of Business Development
       -----------------------           ---------------------------------------

                                  F. HOFFMANN-LA ROCHE LTD

                                    By:    /s/ Brad Bolzon
                                           -------------------------------------

                                    Title: EVP, Business Development
                                           Licensing & Alliances
                                           -------------------------------------

                                    By:    Illegible
                                           -------------------------------------

                                    Title: VP, Global Head Licensing
                                           -------------------------------------

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                                   SCHEDULE 1

                                DATA AND REPORTS

[*]

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                                    EXHIBIT A

                 HEADS OF AGREEMENT FOR CO-PROMOTION OF PRODUCT

1        MEMORY ELECTION TO CO-PROMOTE. Memory shall have the right to elect to
         co-promote each Product in the US, on a Product-by-Product basis,
         during the Co-Promotion Term beginning on the date of the first
         commercial sale of such Product in the Co-Promotion Territory. Within
         forty-five (45) days after the end of Phase II with respect to each
         Product, Roche shall provide Memory with (i) the results and analysis
         of Phase II studies, and (ii) Roche's then final, approved Phase III
         development plan (including budget). Memory shall exercise its
         co-promotion right with respect to each Product by giving written
         notice thereof to Roche within forty-five (45) days after receipt of
         the items described in the immediately preceding sentence.

2.       CO-PROMOTION TERRITORY. United States of America and its possessions
         and territories, including Puerto Rico.

3.       TERM AND TERMINATION. The Co-Promotion Term for each Product shall be
         for a period of ten (10) years from the first commercialization of such
         Product in the first approved co-promotion indication in the
         Co-Promotion Territory. Memory shall have the right to terminate the
         Co-Promotion Agreement with respect to any Product if the Net Sales
         thereof in the US are less than an amount for which a co-promotion
         arrangement for such Product would be financially practicable and
         profitable.

4.       ASSIGNABILITY. Memory may not assign its co-promotion rights without
         Roche's express written consent.

5.       ADDITIONAL INDICATIONS. The co-promotion by the Parties with respect to
         any Product that has received a Regulatory Approval for a Neurological
         Indication or a Psychiatric Indication and has been the subject of a
         Launch in the US shall extend to any additional Neurological Indication
         or Psychiatric Indication which Roche determines to obtain the
         applicable Regulatory Approvals to market and sell the Product in the
         US for such additional Neurological Indication or Psychiatric
         Indication. In such case, Memory shall be responsible for [*] percent
         ([*]%) of the cost of obtaining such Regulatory Approvals, including
         the cost of conducting clinical trials, which shall be paid by Memory
         to Roche promptly after Roche obtains all Regulatory Approvals for such
         Product in the US to enable Roche and Memory to market and sell such
         Product in the US for such additional Neurological Indication or
         Psychiatric Indication.

         If Roche has received all Regulatory Approvals in the US to market and
         sell a Product for a Neurological Indication or a Psychiatric
         Indication and an Other Indication and is the subject of co-promotion
         by Memory, the Parties shall negotiate in good faith and agree upon an
         equitable adjustment to the compensation and cost-sharing provisions
         set forth in the Co-Promotion Agreement, to account for the fact that
         Memory shall not have any right or obligation to co-promote such
         Product for the Other Indication.

6.       FINANCIALS. If Memory exercises its right to co-promote a Product in
         the Co-Promotion Territory, Memory will be responsible for (i) carrying
         out [*] percent ([*]%) of the Product detailing and (ii) [*] percent
         ([*]%) of the marketing costs of such Product in the US; and Memory
         shall be entitled to receive from Roche [*] percent ([*]%) of the gross
         profits from the sale of such Product in the US. For avoidance of
         doubt, the marketing costs referred to in Section 5(ii) hereto do not
         include any direct cost of Roche field force; by way of example, but
         not limitation,

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         marketing costs include direct to consumer advertising, professional
         journal advertising and professional symposia. In addition, if Memory
         exercises its right to co-promote a Product, the royalties otherwise
         payable by Roche to Memory hereunder with respect to the Net Sales of
         such Product in the US shall be reduced by [*] percent ([*]%).
         Furthermore, in order to exercise its right to co-promote a Product,
         Memory must make a one-time payment to Roche in the amount of [*]
         percent ([*]%) of Roche's budgeted Phase III global development costs
         for such Product as set forth in Roche's final, approved Phase III
         development plan (including budget).

7.       GOVERNANCE. Within ninety (90) days after Memory's notice to Roche that
         it wishes to co-promote a Product, the Parties shall form a Joint
         Promotional Team ("JPT"), which will oversee the co-promotional
         activities of the Parties with respect to such Product. Consistent with
         prudent business practices, the JPT will discuss co-promotional
         activities relating to such Product and establish mechanisms for
         achieving an effective co-promotion collaboration. The JPT shall be
         comprised of three Roche representatives and one Memory representative,
         and a Roche representative will be Chair of the JPT. Each Party shall
         have one collective vote, and decisions shall be made by consensus. For
         avoidance of doubt, the final decision in all co-promotion matters will
         reside with Roche.

8.       MEMORY'S OBLIGATIONS. Memory must provide at least [*] percent ([*]%)
         of the total promotional effort in a given calendar year as established
         by number and type of details in accordance with the Co-Promotion Plan.
         Memory may not subcontract its field sales force to fulfill its
         co-promotion obligations.

9.       ROCHE'S OBLIGATIONS AND AUTHORITY. Roche shall be ultimately
         responsible for establishing and modifying the terms and conditions
         with respect to the sale of the Product, including, without limitation,
         pricing for the Product. Roche shall provide Memory, without charge,
         with copies of relevant training materials regarding the detailing and
         promotion of the Product. Memory shall then supply such copies of such
         training materials to its sales force. Roche may elect, at its
         discretion, to make available sales and training personnel to assist
         Memory in training Memory's sales force to detail and promote the
         Product. For avoidance of doubt, each Party has final responsibility
         for the adequate training of its own sales force.

10.      NON-SOLICITATION. Neither Party shall recruit sales personnel from the
         other Party.

11.      REPORTING PROVISIONS. The Parties will negotiate in good faith and
         agree to appropriate reporting provisions to be included in the
         Co-Promotion Agreement. Memory shall have an obligation to report
         adverse events to Roche in a timely fashion.

12.      INDEMNIFICATION. Each Party shall indemnify the other Party for all
         claims related to the marketing or promotion of the Product to the
         extent that such Party is negligent or fails to promote the Product in
         accordance with applicable federal and state laws.

13.      FULL AGREEMENT. Consistent with the terms of this Heads of Agreement,
         the Co-Promotion Agreement shall contain ordinary and customary terms
         for an agreement in which a pharmaceutical product of like nature is
         jointly co-promoted and detailed in the US, such as insurance,
         additional warranties and the like.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                                    EXHIBIT B

                          SECURITIES PURCHASE AGREEMENT

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

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