Document:

exv10w4w1

Exhibit 10.4.1

CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH THREE
ASTERISKS [***].

CAMBRIDGE ENTERPRISE LIMITED

(“CE”)

and

PSYNOVA NEUROTECH LITIMED

(“Licensee”)

EXCLUSIVE PATENT AND

NON-EXCLUSIVE KNOW-HOW

LICENCE AGREEMENT

Case No: Bah-2338-09/PSY026

			
	 	 	 
	Copyright © 2003-8 University of Cambridge
	 	 

Page 1 of 31

 

	 

	1 Definitions and Interpretations

	 

	1.1 Definitions

	1.2 Interpretation

	1.3 Schedules

	 

	2 Grant of rights

	 

	2.1 Licences

	2.2 Formal licences

	2.3 Sub-licensing

	2.4 Reservation of rights

	2.5 Business Difficulties

	 

	3 Non Disclosure

	 

	3.1 Provision of Know-how

	3.2 Licensee to treat Know-how as confidential

	3.3 Confidentiality

	3.4 Use of Confidential Information

	3.5 Disclosing Information

	3.6 Exceptions to confidentiality obligations

	3.7 Return of information and survival of confidentiality obligations

	 

	4 Payments

	 

	4.1 Non-monetary and inadequate consideration

	4.2 Royalties on all Net Sales of a Licensed Product by Psynova Neurotech and any
Sub-Licensees

	4.3 Milestone payments

	4.4 Other Income (other than Royalties)

	4.5 Payment terms and price index

	4.6 Reimbursement of patent costs

	4.7 Financial reports

	4.8 Records

	 

	5 Commercialisation obligations and reports

	 

	5.1 Commercialisation

	5.2 Commercialisation Report

	5.3 Independent Expert — Reference

	5.4 Independent Expert – appointment and decision

	5.5 CE’s right to terminate

	5.6 Sub-licensing of undeveloped applications

	 

	6 Intellectual property

	 

	6.1 Patent protection

	6.2 Infringement of the Patents

	6.3 Infringement of third party rights

	 

	7 Warranties and liability

	 

	7.1 Status of Licensed Technology and responsibility for development of Licensed
Products

	7.2 No representations or warranties

	7.3 Liability and indemnity

	 

	8 Duration and termination

	 

	8.1 Commencement and termination by expiry

	8.2 Early termination by the Licensee

	8.3 Early termination by CE

	8.4 Early termination by either party

	8.5 Consequences of termination

	 

	9 Dispute resolution

	 

	10 General

	 

	10.1 Force majeure.

	10.2 Assignment.

	10.3 Waiver

	10.4 Invalid clauses

	10.5 No agency

	10.6 Notices

	10.7 Law and jurisdiction

	10.8 Further action

	10.9 Announcements

	10.10 Entire agreement

	10.11 Third party rights

			
	 	 	 
	Copyright © 2003-8 University of Cambridge
	 	 

Page 2 of 31

 

	 

	10.12 Export Control Regulations

	10.13 Non-use of names and marking of Licensed Products

	10.14 Insurance

	10.15 Legal Compliance

	 

	Schedule 1

	 

	Schedule 2

	 

	Schedule 3

			
	 	 	 
	Copyright © 2003-8 University of Cambridge
	 	 

Page 3 of 31

 

THIS AGREEMENT dated March 22, 2010 is between:

	(1)	 	CAMBRIDGE ENTERPRISE LIMITED (“CE”), a company incorporated
	 
	 	 	in England and Wales (registered number 1069886) whose registered address is at The Old
Schools, Trinity Lane, Cambridge CB2 1TN, UK;
	 
	 	 	and
	 
	(2)	 	PSYNOVA NEUROTECH LIMITED (the “Licensee” or “Psynova”) a company incorporated in England and
Wales (registered number 05524107) whose registered office is at St John’s Innovation Centre,
Cowley Road, Cambridge, CB4 0WS.

RECITALS:

	A.	 	CE is a company wholly owned by The Chancellor, Masters and Scholars of the University of
Cambridge.
	 
	B.	 	The University inventors specified in Schedule 1 have developed technology relating to
biomarkers for the diagnosis and monitoring of schizophrenia and other psychotic disorders,
including the Patents and the Know-how and they and the University have assigned to CE all
their intellectual property rights in the Patents and the Inventors have granted a licence to
CE in respect of the Know-how.
	 
	C.	 	By an option agreement dated 4th March 2010 CE granted Psynova an option to take
an exclusive licence under the Patent.
	 
	D.	 	The Licensee wishes to acquire rights under the Patents and to use the Know-how for the
development and commercialisation of Licensed Products in the Field and in the Territory, in
accordance with the provisions of this Agreement.

IT IS AGREED as follows:

	1	 	Definitions and Interpretations
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement, the following words shall have the following meanings:

	 	 	 

	Anniversary

	 	An anniversary of the Commencement Date.
	 
	 	 
	Commencement Date

	 	22 March 2010
	 
	 	 
	Confidential Information

	 	Any information marked confidential obtained directly or indirectly by one Party from the
other Party.
	 
	 	 
	Continuation in Part

	 	Any continuation-in-part patent application provided
	 
	 	 
	 

	 	(a)    it was filed within two
years of the original application;

			
	 	 	 
	Copyright © 2003-8 University of Cambridge
	 	 

Page 4 of 31

 

	 	 	 

	 

	 	(b)     it only names one or more
of the Inventors;

	 
	 	 
	 

	 	(c)    the technology covered
was disclosed, claimed in and dominated by the original
application; and

	 
	 	 
	 

	 	(d)    is not burdened by, for
example, sponsored research or any other collaboration
between the University and a third party.

	 
	 	 
	Field

	 	Diagnosis and monitoring of schizophrenia and other
psychotic disorders.
	 
	 	 
	Know-how

	 	Technical information of the Principal Investigator in
the Field which exists at the Commencement Date and
which relates directly to the inventions claimed in
the Patents.
	 
	 	 
	Inventor(s)

	 	The inventors named in Schedule 1.
	 
	 	 
	Licensed Product

	 	Any product, process or use which the Licensee or
Sub-Licensees sell, supply or make available
(including to a Sub-Licensee) and which incorporates
or their development makes use of any of the Licensed
Technology.
	 
	 	 
	Licensed Technology

	 	The Patents and the Know-how.
	 
	 	 
	Net Sales Value

	 	Either;
	 
	 	 
	 

	 	(a)    the price of Licensed
Products invoiced in arm’s length transactions to
independent third parties exclusively for money or;

	 
	 	 
	 

	 	(b)    the price that would have
been invoiced if it had been such a transaction

and in both cases without deduction of any commission
paid to a third party but less the following permitted
deductions:

	 
	 	 
	 

	 	     (ii)    arm’s
length trade discounts or credits given; and

	 
	 	 
	 

	 	     (iii)    provided the amounts are separately charged on the
relevant invoice, any costs of packaging,
insurance, carriage and freight, any value added
tax or other sales tax, and any import duties or
similar applicable government levies.

			
	 	 	 
	Copyright © 2003-8 University of Cambridge
	 	 

Page 5 of 31

 

	 	 	 

	Parties

	 	CE and the Licensee, and “Party” shall mean either
of them.
	 
	 	 
	Patents

	 	Any and all of the patents and patent applications
referred to in Schedule 1 together with any patents
granted pursuant to the applications and any
continuations, Continuations in Part, extensions,
reissues, divisions and supplementary protection
certificates that derive priority from the
foregoing.
	 
	 	 
	Payment Period

	 	The payment periods specified in Schedule 3.
	 
	 	 
	Planned Sales

	 	Projected annual sales for Licensed Products.
	 
	 	 
	Principal Investigator

	 	Dr Sabine Bahn
	 
	 	 
	RBM

	 	Rules Based Medicine, Inc., whose registered office
is at 300 Duval Road, Austin, Texas 78759, USA.
	 
	 	 
	Royalty

	 	The royalty specified in clause 4.2
	 
	 	 
	Other Income

	 	Any payment (other than Royalties) and, without
prejudice to clause 4.1, the value of any
non-monetary receipt or benefit which the Licensee
obtains in connection with the rights granted by
clause 2.1 less any value added tax but including
	 
	 	 
	 

	 	(a)    consideration for any
option or any sub or cross-licence;

	 
	 	 
	 

	 	(b)    research or development
funding exceeding a reasonable level of remuneration as
defined in clause 4.4(d);

	 
	 	 
	 

	 	(c)    up front, milestone,
success, bonus, maintenance, minimum royalty or periodic
(including annual) payments;

	 
	 	 
	 

	 	(d)     shares, options or other
securities obtained from third parties;

	 
	 	 
	 

	 	(e)    the amount by which any
premium paid for shares, options or other securities exceeds
fair market value, to be determined on the assumption that
CE has not granted or agreed to grant any rights to the
Licensee in respect of the Licensed Technology;

	 
	 	 
	 

	 	(f)    any loan guarantee or
other financial benefit made or given other than on normal
market terms

			
	 	 	 
	 	 	 
	Copyright © 2003-8 University of Cambridge
	 	 

Page 6 of 31

 

	 	 	 

	Sub-Licensee

	 	Any third party granted a sub-licence of the
rights in clause 2.1 by the Licensee whether
directly by the Licensee or through multiple
levels of sub-licensing.
	 
	 	 
	Term

	 	The period specified in clause 8.1.
	 
	 	 
	Territory

	 	World-wide.
	 
	 	 
	University

	 	The Chancellor, Masters and Scholars of the
University of Cambridge.

	1.2	 	Interpretation
	 
	 	 	In this Agreement (except where the context otherwise requires):

	 	(a)	 	any reference to a clause or schedule is to the relevant clause or schedule
of or to this Agreement and any reference to a sub-clause or paragraph is to the
relevant sub-clause or paragraph of the clause or schedule in which it appears;
	 
	 	(b)	 	the clause headings are included for convenience only and shall not affect
the interpretation of this Agreement;
	 
	 	(c)	 	any reference to “person” or “persons” includes natural persons, firms,
partnerships, companies, corporations, associations, organisations, governments,
states, foundations and trusts (in each case whether or not having separate legal
personality);
	 
	 	(d)	 	the singular includes the plural and vice versa; and
	 
	 	(e)	 	words preceding “include”, “includes”, “including” and “included” shall be
construed without limitation by the words which follow those words.

	1.3	 	Schedules
	 
	 	 	The schedules form part of this Agreement. If a provision of a schedule is inconsistent
with a provision of this Agreement, the latter prevails.
	 
	2	 	Grant of rights
	 
	2.1	 	Licences
	 
	 	 	CE hereby grants to the Licensee subject to the provisions of this Agreement:

	 	(a)	 	an exclusive licence under the Patents, with the right to sub-license,
subject to clause 2.3 below, to develop, manufacture, have manufactured, sell, have
sold, supply, use, promote, market and make available Licensed Products only in the
Field in the Territory; and
	 
	 	(b)	 	a non-exclusive licence to use the Know-how, with the right to sub-license,
subject to clause 2.3 below, to develop, manufacture, have

Page 7 of 31

 

	 	 	 	manufactured, sell, have sold, supply, use, promote, market and make available
Licensed Products only in the Field in the Territory.

	2.2	 	Formal licences
	 
	 	 	The Parties shall execute such formal licences as may be necessary or appropriate for
registration with Patent Offices and other relevant authorities in particular territories.
In the event of any conflict in meaning between any such licence and the provisions of this
Agreement, the provisions of this Agreement shall prevail. Prior to the execution of the
formal licence(s) (if any) referred to in this clause, the Parties shall so far as possible
have the same rights and obligations towards one another as if such licence(s) had been
granted. The Parties shall use reasonable endeavours to ensure that, to the extent
permitted by relevant authorities, this Agreement shall not form part of any public record.

	2.3	 	Sub-licensing

	 	2.3.1	 	The Licensee shall be entitled to grant a sub-licence of its rights under this Agreement
to RBM provided that:

	 	(a)	 	the sub-licence shall include terms which are equivalent to the obligations
and limitations (including limitations of liability) which apply to the Licensee under
this Agreement and that RBM shall be subject to clause 4 of this agreement;
	 
	 	(b)	 	the sub-licence shall terminate automatically on the termination of this
Agreement for any reason save that CE shall in good faith negotiate with RBM the terms
of a new sub-licence upon substantially equivalent terms;
	 
	 	(c)	 	within 30 days of the grant of the sub-licence the Licensee shall provide to
CE a true copy of it;
	 
	 	(d)	 	the Licensee shall be responsible for any breach by RBM, as if the breach had
been that of Licensee under this Agreement, and the Licensee shall indemnify CE
against any loss, damages, costs, claims or expenses which are awarded against or
suffered by CE as a result of any such breach by RBM;
	 
	 	(e)	 	for the avoidance of doubt, all Sub-Licensees of RBM shall be treated as
sub-licensees of the Licensee for the purposes of this Agreement, whether the rights
are granted directly by the Licensee or by any Sub-Licensee; and
	 
	 	(f)	 	in respect of clause 4 of this agreement all actions of RBM shall be
considered those of the Licensee and the Licensee shall be responsible for making
payments to CE.

	 	2.3.2	 	The Licensee shall be entitled to grant sub-licences of its rights under this Agreement
and to permit multiple levels of sub-licensing by Sub-Licensees, provided that:

Copyright © 2003-8 University of Cambridge

Page 8 of 31

 

	 	(a)	 	each sub-licence shall include terms which are equivalent to the obligations
and limitations (including limitations of liability) which apply to the Licensee under
this Agreement;
	 
	 	(b)	 	each sub-licence shall terminate automatically on the termination of this
Agreement for any reason save that CE shall in good faith negotiate with the
sub-licensee the terms of a new sub-licence upon substantially equivalent terms and
substantially equivalent financial terms to those between Psynova and the
Sub-Licensee;
	 
	 	(c)	 	within 30 days of the grant of any sub-licence the Licensee shall provide to
CE a true copy of it;
	 
	 	(d)	 	the Licensee shall be responsible for any breach by any Sub-Licensee, as if
the breach had been that of Licensee under this Agreement, and the Licensee shall
indemnify CE against any loss, damages, costs, claims or expenses which are awarded
against or suffered by CE as a result of any such breach by a Sub-Licensee; and
	 
	 	(e)	 	for the avoidance of doubt, all Sub-Licensees shall be treated as
sub-licensees of the Licensee for the purposes of this Agreement, whether the rights
are granted directly by the Licensee or by any Sub-Licensee.

	2.4	 	Reservation of rights

	 	(a)	 	CE reserves for itself, (and also grants to the University and any wholly
owned subsidiary of the University and any sponsor of the research which created the
subject matter of the Patents) an irrevocable, world-wide, royalty-free, non-exclusive
right to use and to license other academic institutions to use the Patents in the
Field for publication, teaching, clinical patient care, provision of biological
materials for internal academic research purposes and academic research, including as
background intellectual property for collaborative research pursuant to EC or other
government research funding and for applications for funding for such research. The
Licensee agrees that, notwithstanding any other provision of this Agreement, it has no
right to enforce the Patents against any academic institution or restrict publication
of any research by an academic institution relating to or using the Licensed
Technology for not for profit purposes.
	 
	 	(b)	 	Except for the rights expressly set out in this Agreement, no licence is
granted in respect of the Licensed Technology or any other technology or patents of CE
regardless of whether such technology or patents are dominant or subordinate to the
Licensed Technology and all rights, title and interest in and to the Licensed
Technology throughout the world now or hereafter are and shall remain the exclusive
property of CE.

Copyright © 2003-8 University of Cambridge

Page 9 of 31

 

	2.5	 	Business Difficulties
	 
	 	 	Without prejudice to any other right or remedy which CE may have, if any of the events
contemplated in clause 8.4(b) apply to the Licensee, the exclusivity of licence granted in
clause 2.1(a) shall cease and the licence shall become non-exclusive.
	 
	3	 	Non Disclosure
	 
	3.1	 	Provision of Know-how
	 
	 	 	Upon the Licensee’s reasonable request, CE shall arrange for the Principal Investigator to
supply the Licensee with all Know-how in his possession that CE is at liberty to disclose
and that has not previously been disclosed and which is reasonably necessary or desirable
to enable the Licensee to undertake the further development of the Patents. The method of
such supply shall be agreed between the Principal Investigator and the Licensee but shall
not require the Principal Investigator to undertake any man-days of work, unless otherwise
agreed in writing between the Parties. If it is agreed that the Principal Investigator
shall travel to the Licensee’s premises in connection with such supply, the Licensee shall
reimburse all travel (at business class rates), accommodation and subsistence costs
incurred.
	 
	3.2	 	Licensee to treat Know-how as confidential
	 
	 	 	The Licensee receives the Know-how as Confidential Information. The Licensee shall not use
the Know-how for any purpose except as expressly licensed hereby and in accordance with the
provisions of this Agreement. The Licensee shall observe the provisions of clauses 3.3 to
3.6 and 8.5(b)(iv) in relation to the Know-how.
	 
	3.3	 	Confidentiality
	 
	 	 	No Confidential Information disclosed by one party (“Disclosing Party”) to the other party
(“Recipient Party”) under this Agreement may be disclosed by the Recipient Party to any
person except:

	 	(a)	 	employees, officers, directors, auditors, or subcontractors of the Recipient
Party or the University requiring the Confidential Information for the purposes of
this Agreement;
	 
	 	(b)	 	with the prior written consent of the Disclosing Party which consent may be
given or withheld in its absolute discretion;
	 
	 	(c)	 	to actual or potential customers or sub-licensees for Licensed Products in so
far as such disclosure is necessary to promote the sale or use of Licensed Products;
	 
	 	(d)	 	if the Recipient Party is required to do so by law (including the Freedom of
Information Act 2000) or stock exchange; or
	 
	 	(e)	 	if the Recipient Party is required to do so in connection with legal
proceedings relating to this Agreement.

Copyright © 2003-8 University of Cambridge

Page 10 of 31

 

	3.4	 	Use of Confidential Information
	 
	 	 	No Confidential Information of the Disclosing Party may be used by the Recipient Party for
any purpose other than the performance of the Recipient Party’s obligations or the exercise
of the Recipient Party’s rights under this Agreement.
	 
	3.5	 	Disclosing Information
	 
	 	 	Any party disclosing information under clause 3.3(a) (b) or (c) must use all reasonable
endeavours to ensure that persons receiving Confidential Information from it

	 	(a)	 	do not disclose or use the information except in the circumstances permitted
in clauses 3.3 and 3.4 and
	 
	 	(b)	 	sign a written confidentiality undertaking in terms at least as restrictive
as that binding the Recipient Party.

	3.6	 	Exceptions to confidentiality obligations

	 	(a)	 	Clauses 3.3, 3.4 and 3.5 do not apply to Confidential Information which:

	 	(i)	 	is in or becomes part of the public domain other than
through breach of this Agreement or an obligation of confidence owed to the
Disclosing Party;
	 
	 	(ii)	 	the Recipient Party can prove by contemporaneous
written documentation was already known to it at the time of disclosure by
the Disclosing Party (unless that knowledge arose from disclosure of
information in breach of an obligation of confidence).

	 	(b)	 	For the avoidance of doubt the Licensee acknowledges that

	 	(i)	 	CE is required to inform those inventors and others entitled to a share in CE
receipts under this Agreement (including persons other than CE employees) of the basis
of CE’s calculation of the share due; and
	 
	 	(ii)	 	for the purpose of academic publication any academic who contributed to the
creation or development of the Licensed Technology may have to declare to the publisher
and in publications that the Licensee is licensed in respect of the Licensed Technology
and that he or she has received or may receive income from exploitation of the Licensed
Technology.

	 	 	 	If a disclosure described in this clause 3.6(b)(i) or (ii) includes Confidential
Information, CE and the academic disclosing will be deemed to have permission to
make such disclosure.

	3.7	 	Return of information and survival of confidentiality obligations

	 	(a)	 	The Recipient Party must return to the Disclosing Party all documents

Copyright © 2003-8 University of Cambridge

Page 11 of 31

 

	 	 	 	or other materials containing or referring to Confidential Information (other than
the Know-how) which are in its possession, power or control or in the possession,
power or control of persons who have received Confidential Information from it
under clause 3.3(a), (b) or (c) at any time if requested to do so by the
Disclosing Party.
	 
	 	(b)	 	The provisions of clauses 3.2 to 3.7 inclusive will survive the expiry or
earlier termination (for whatever reason) of this Agreement for a period of five years
for Know How and three years for other Confidential Information beginning on the date
of last disclosure of the information.

	4	 	Payments
	 
	4.1	 	Non-monetary and inadequate consideration
	 
	 	 	The Licensee shall not accept and shall ensure that Sub Licensees do not accept, without
the prior written consent of CE, any indirect or non-monetary consideration for any
Licensed Product. The Licensee acknowledges that CE has granted the rights in clause 2.1
in consideration of the Licensee paying CE a share of the income the Licensee receives from
any exploitation of those rights. The Licensee shall act in good faith towards CE in its
commercial exploitation of the Licensed Technology. For the avoidance of doubt it is
agreed that the Licensee has no licence to provide Licensed Products free or for inadequate
consideration, including in order to avoid the obligation to pay CE a return under this
Agreement or to derive any monetary or non-monetary receipt or benefit through other
activity for itself, any party associated with it, any business partner, or (as defined in
the Companies Act 2006) any subsidiary or holding company of the Licensee or subsidiary of
any such holding company.
	 
	4.2	 	Royalties on all Net Sales of a Licensed Product by Psynova Neurotech and any Sub-Licensees
	 
	 	 	Psynova Neurotech and any Sub-Licensee shall pay CE a royalty for each Licensed Product or
part of one at the following rates:

	 	(a)	 	on Psynova Neurotech sales: [***]% of the Net Sales Value invoiced by
Psynova Neurotech; and
	 
	 	(b)	 	on Sub-Licensee sales: [***]% of the Net Sales Value invoiced by a
Sub-Licensee.

If a Licensed Product would, but for the existence of suitable licences, infringe n patents and/or
know-how licences from CE to Psynova then the total royalty due to CE (“TCER”) = 2 + (n-1)/2

If a Licensed Product would, but for the existence of suitable licences, infringe y patents and/or
know-how licences from a third party to Psynova then the royalty due to CE = TCER x n/(n+y)

The minimum TCER shall be [***]%.

Copyright © 2003-8 University of Cambridge

Page 12 of 31

 

	4.3	 	Milestone payments
	 
	 	 	The Licensee shall pay CE the milestone payment(s) set out in the table below in respect of
each Licensed Product when the relevant milestone is achieved.

	 	 	 
	Milestone	 	Payment
	First national phase filing of the Patent
	 	£[***]
	 	 	 
	Incorporation into a clinical product
	 	£[***]
	 	 	 
	Licensed Product reaching regulatory approval
	 	£[***]

	 	 	The milestone payment of £[***] due to CE upon entering into the first National Phase
filing of the patent application that is part of the option terms will remain.

	4.4	 	Other Income (other than Royalties)

	 	(a)	 	The Licensee shall pay to CE:

	 	(i)	 	[***]% of all upfront fees received as Other Income
	 
	 	(ii)	 	[***]% of milestone payments received as Other Income
	 
	 	(iii)	 	[***]% of any Other Income not included in sub-clauses
4.4(a)(i) or 4.4(a)(ii);
	 
	 	(iv)	 	a milestone of £[***] for each sub-licence contract
with the exception of any sub-licence granted to RBM

	 	(b)	 	The Licensee shall not arrange to receive Other Income rather than Royalties
where this has the effect of reducing the total sum payable to CE by way of Royalty
and Other Income.
	 
	 	(c)	 	The Licensee shall also pay CE the percentage payments specified in clause
4.4(a) on any difference between Other Income received and that which would have been
received had the transaction been an arm’s length transaction with an independent
third party exclusively for money.
	 
	 	(d)	 	Other Income shall not be due on development services to the extent that such
payments represent a market rate payment for such activities and provided that
separate payment is received for any use of or access to the Licensed Technology.

	4.5	 	Payment terms and price index

	 	(a)	 	Payments shall be made in accordance with Schedule 3 Part A.

Copyright © 2003-8 University of Cambridge

Page 13 of 31

 

	 	(b)	 	The Licensee shall be responsible for collecting and paying to CE all
payments due to CE in respect of sub-licensing, including Royalties.
	 
	 	(c)	 	All consideration and any other monies due under this Agreement are exclusive
of Value Added Tax which where applicable shall be paid by the Licensee to CE. All
payments shall:

	 	(i)	 	be made in pounds sterling by telegraphic transfer to
the account of Cambridge Enterprise Ltd at Barclays Bank of Bene’t Street,
Business Centre, PO Box No 2, Cambridge CB2 3PZ, sort code: 201719, account
number 90532215;
	 
	 	(ii)	 	in the event of a change in the national currency of
the United Kingdom, be converted from pounds sterling into the new national
currency of the United Kingdom at the buying rate of such new currency as
quoted by Barclays Bank plc in London on the day when such currency change
comes into force;
	 
	 	(iii)	 	in the case of monies received by the Licensee from
sales or sub-licensing in a currency other than pounds sterling, be
calculated in the other currency and then converted into the national
currency of the United Kingdom at the buying rate of such other currency as
quoted by Barclays Bank plc in London as at the close of business on the
last business day of the Payment Period with respect to which the payment
is made;
	 
	 	(iv)	 	be made by the due date, failing which CE may charge
reasonable debt recovery costs together with interest on any outstanding
amount on a daily basis, compounded quarterly, from the day after the due
date until payment at the statutory rate in force on the due date under the
Late Payment of Commercial Debts (Interest) Act 1998; and
	 
	 	(v)	 	be made in full without deduction of taxes, charges or
duties, including bank charges or income tax.

	 	(d)	 	The payments due under clauses 4.3 and 4.4 shall be adjusted on each
Anniversary by the percentage change if any between RPI published in the month
immediately preceding such anniversary and the month immediately preceding the
Commencement Date. RPI means the Retail Prices Index published monthly by the U.K.
Office for National Statistics or such other index as may be published in
substitution.

	4.6	 	Reimbursement of patent costs
	 
	 	 	The Licensee shall be responsible for paying any outstanding external receipted costs in
connection with obtaining patent protection prior to the Commencement Date and any ongoing
patent costs from the Commencement Date.

Copyright © 2003-8 University of Cambridge

Page 14 of 31

 

	4.7	 	Financial reports

	 	(a)	 	Each payment shall be accompanied by a financial report in the form set out
in Schedule 3 Part B. Such reports shall include details of payments due in respect
of sub-licensing.
	 
	 	(b)	 	The Licensee shall report to CE the date of first sale of a Licensed Product
within 60 days of occurrence.

	4.8	 	Records

	 	(a)	 	The Licensee shall keep at its normal place of business and cause
Sub-Licensees to keep all information used to calculate payments due to CE under this
Agreement including detailed and up to date records and accounts showing the quantity,
description and value of Licensed Products sold by it and Sub-Licensees, on a country
by country basis. The Licensee shall keep these records separate or otherwise make
them extractable easily from its other business records and shall not dispose of them
until after the sixth anniversary of their creation.
	 
	 	(b)	 	The Licensee shall make such information available, on reasonable notice, for
audit during business hours by a CE’s duly authorised representative for the purpose
of verifying the accuracy of any report given by the Licensee to CE under this clause
4. The representative shall be required to keep confidential all information learnt
during any such inspection, and to disclose to CE only such details as may be
necessary to report on the accuracy of the Licensee’s financial reports. CE shall be
responsible for the representative’s professional charges unless the representative
certifies that there is an inaccuracy of more than 5% in any financial statement, in
which case the Licensee shall pay his charges in respect of that inspection. The
Licensee shall pay any underpayment reported by the representative within 30 days of
receipt of a CE’s invoice requiring payment for the same.
	 
	 	(c)	 	The Licensee shall ensure that CE has the same rights as those set out in
this clause 4.8 in any sub-licence of the Licensed Technology granted pursuant to this
Agreement.

	5	 	Commercialisation obligations and reports
	 
	5.1	 	Commercialisation
	 
	 	 	The Licensee shall proceed diligently to develop and commercially exploit the Licensed
Technology. The Licensee shall commit the necessary funding and personnel in order to
maximise the return for both parties. The Licensee shall use reasonable endeavours to
comply with project dates and activities contemplated in the commercialisation report
submitted in accordance with clause 5.2.
	 
	5.2	 	Commercialisation Report
	 
	 	 	Without prejudice to the generality of the Licensee’s obligations under clause

Copyright © 2003-8 University of Cambridge

Page 15 of 31

 

	 	 	5.1, the Licensee shall send CE within 30 days of each Anniversary an updated, written
commercialisation report, covering as a minimum the 12 months preceding the Anniversary and
the 12 months following it. The report shall include:

	 	(a)	 	the projected and actual dates of first sale of a Licensed Product;
	 
	 	(b)	 	Planned Sales during the period covered by the report;
	 
	 	(c)	 	milestone progression (dates for projected and achieved milestones);
	 
	 	(d)	 	sub-licences granted during the period covered by the report;
	 
	 	(e)	 	all past, current and projected activities taken or to be taken by the
Licensee to bring Licensed Products to market and maximise the sale of Licensed
Products in the Territory; and
	 
	 	(f)	 	any Other Income invoiced or received during the period covered by the
report.

	 	 	CE’s receipt or approval of any such report shall not be taken to waive or qualify the
Licensee’s obligations under clause 5.1.
	 
	5.3	 	Independent Expert — Reference
	 
	 	 	If CE considers at any time during the Term that the Licensee has without legitimate reason
failed to proceed diligently to develop and commercially exploit the Licensed Technology,
CE shall be entitled to refer to an independent expert the following questions:

	 	(a)	 	whether the Licensee has acted diligently; and if not
	 
	 	(b)	 	what specific action the Licensee should have taken (“Specific Action”) in
order to have acted diligently.

	5.4	 	Independent Expert — appointment and decision
	 
	 	 	The independent expert shall be appointed in accordance with the provisions of Schedule 2
and his decision shall be final and binding on the Parties.
	 
	5.5	 	CE’s right to terminate
	 
	 	 	If the expert determines that the Licensee has failed to comply with its obligations under
this clause 5, and if the Licensee fails to take the Specific Action within 3 months of the
expert giving his decision in accordance with Schedule 2, CE shall be entitled, by giving,
at any time within 3 months after the end of that 3 month period, not less than 21 days’
notice to terminate this Agreement and the licences granted to the Licensee under clause 2.
	 
	5.6	 	Sub-licensing of undeveloped applications
	 
	 	 	If CE becomes aware (or if a third party becomes aware and notifies CE) that any of the
Patents are useful for an application covered by the Field but for

Copyright © 2003-8 University of Cambridge

Page 16 of 31

 

	 	 	which Licensed Products have not been developed or are not currently under development
by the Licensee, then the CE may give written notice to the Licensee. Within ninety (90)
days following the Licensee’s receipt of CE’s notification the Licensee shall give CE
written notice stating whether the Licensee elects to develop Licensed Products for the
application. If the Licensee elects to develop and commercialise the proposed Licensed
Products for the new application, the Licensee shall submit a progress report describing
Licensee’s commercialisation efforts in developing the new application as part of the
commercialisation report required by clause 5.2. If the Licensee does not so elect, then
CE may at its discretion
	 
	 	 	(a) direct the Licensee (subject to appropriate due diligence) to grant or
	 
	 	 	(b) itself grant
	 
	 	 	a licence in a specific sub-field of the Field and such a sub-field will be removed from
the Field. CE shall give the Licensee an opportunity to comment on these options and will
consider these comments before making its decision. CE’s sub-licensee will be required to
reimburse the Licensee for such portion of the patent cost reimbursement fee paid to CE on
the Commencement Date as may be reasonable in the circumstances.
	 
	6	 	Intellectual property
	 
	6.1	 	Patent protection
	 
	 	 	The Licensee shall at its own cost and expense:

	 	(a)	 	endeavour to obtain valid patents in the name of CE pursuant to each patent
application listed in Schedule 1 so as to secure the broadest monopoly reasonably
available including the filing of divisional applications where appropriate; and
	 
	 	(b)	 	pay all renewal fees in respect of the Patents as and when due; and
	 
	 	(c)	 	ensure that CE receives copies of all correspondence concerning each patent
application listed in Schedule 1

	 	 	provided that if the Licensee wishes to abandon any such application or not to maintain any
such Patent in the whole of any part of the Territory (or to cease funding such application
or Patent) it shall give 3 months’ prior written notice to CE and on the expiry of such
notice period unless CE notifies the Licensee otherwise the Licensee shall cease to be
licensed for the whole or part of the Territory under the patent application or patent
identified in the notice.
	 
	6.2	 	Infringement of the Patents

	 	(a)	 	Each Party shall inform the other Party promptly if it becomes aware of any
infringement or potential infringement of any of the Patents in the Field.
	 
	 	(b)	 	Subject to clause 6.2(c), the Licensee shall be entitled to take legal or

Copyright © 2003-8 University of Cambridge

 Page 17 of  31

 

	 	 	 	other action against any third party to enforce the Patents at its sole expense. If
the alleged infringement is both within and outside the Field, the Parties shall
also co-operate with CE’s other licensees (if any) in relation to any such action.
	 
	 	 	 	If required by law CE shall agree to be joined in any such legal action (and may
elect to take part in the proceedings) subject to being indemnified and secured in a
reasonable manner as to any costs, damages, expenses or other liability and having
the right to be separately represented by its own counsel at its own expense.
	 
	 	(c)	 	Before starting legal action in accordance with sub-clause 6.2(b) or agreeing
to any settlement, the Licensee shall consult CE and take its views into account about
the advisability of the action or settlement, its effect on the University and CE’s
reputation and good name, the effect on any other CE licensees of any of the Licensed
Technology, the public interest and how the action should be conducted. Any monetary
recovery from any legal or other action shall be dealt with as follows: Each Party
shall be reimbursed any expenses reasonably incurred in securing the sums recovered.
Except where the Licensee is permitted to sub-license when the balance shall be deemed
to be Other Income, CE shall receive 25% of the balance. Clause 2.3 specifies the
extent to which the Licensee may grant a sub-licence to an infringer.
	 
	 	(d)	 	In the event that the Licensee is unsuccessful in persuading the alleged infringer to
desist or fails to have initiated an infringement action within six months of the Licensee
first becoming aware of the basis for such action, CE shall have the right, at its sole
discretion, to prosecute such infringement under its sole control and its sole expense,
and any recovery obtained shall belong to CE.

	6.3	 	Infringement of third party rights

	 	(a)	 	If any warning letter or other notice of infringement is received by a Party,
or legal action is brought against a Party, alleging infringement of third party
rights in the manufacture, use or sale of any Licensed Product or use of any Patents,
that Party shall promptly provide full details to the other Party, and the Parties
shall discuss the best way to respond.
	 
	 	(b)	 	The Licensee shall have the right but not the obligation to defend such
action and shall have the right to settle with such third party, provided that if any
action or proposed settlement involves the making of any statement, express or
implied, concerning the validity of any Patent, the consent of CE must be obtained
before taking such action or making such settlement.

	7	 	Warranties and liability
	 
	7.1	 	Status of Licensed Technology and responsibility for development of Licensed Products
	 
	 	 	The Licensee acknowledges that the Licensed Technology is at an early stage

Copyright © 2003-8 University of Cambridge

 Page 18 of  31

 

	 	 	of development, that it is provided “as is” and specific results cannot be guaranteed. The
Licensee shall be exclusively responsible for the technical and commercial development and
manufacture of Licensed Products and for incorporating any modifications or developments
thereto that may be necessary or desirable and for all Licensed Products sold or supplied.
	 
	7.2	 	No representations or warranties

	 	(a)	 	The Licensee acknowledges that CE has not performed any searches or
investigations into the existence of any third party rights, which may affect any of
the Licensed Technology and that in entering into this Agreement it does not do so in
reliance on (and shall have no remedy in respect of) any representation, warranty or
other provision, except as expressly provided in this Clause, in which case any remedy
shall be limited to an action for breach of contract under the terms of this
Agreement.
	 
	 	(b)	 	CE warrants that the University and the Inventors have assigned to CE all
their intellectual property rights in the Patents.
	 
	 	(c)	 	Except as provided by Clause 7.2(b) CE makes no representations or warranties
of any kind, express or implied, concerning the Licensed Technology including (i) as
to the satisfactory quality or fitness for a particular purpose (ii) as to the absence
of latent or other defects, whether or not discoverable (iii) as to the validity or
scope of the Patents or (iv) that the exploitation of the Licensed Technology or any
Licensed Product will not infringe any patents or other intellectual property rights
of a third party and all conditions, warranties or other terms implied by statute or
common law are excluded from this Agreement to the fullest extent permitted by law.

	7.3	 	Liability and indemnity

	 	(a)	 	The limitations and exclusions in this Agreement shall not apply in respect
of claims for personal injury or death caused by negligence of CE, the University, the
University’s employees or students, the Inventors or the Principal Investigator or in
respect of fraud or fraudulent misrepresentation.
	 
	 	(b)	 	In respect of any damages or expenses of whatsoever nature and howsoever
arising (including in contract, tort, negligence or for breach of statutory duty or
misrepresentation) in connection with any use of the Licensed Technology or the
manufacture, use or sale of or any other dealing in the Licensed Products or otherwise
in connection with this Agreement or any relationships established by it:

	 	(i)	 	the aggregate liability of CE, the University, the
University’s employees and students, the Inventors and the Principal
Investigator shall be limited to the total income which CE has received
from the Licensee (less any expenses which CE has incurred in obtaining,
maintaining or defending the Patents) during the six years, preceding the
year of the Term in which

Copyright © 2003-8 University of Cambridge

 Page 19 of  31

 

	 	 	 	the liability arises or £10,000 whichever shall be the higher; and
	 
	 	(ii)	 	in no circumstances shall CE, the University, the
University’s employees or students, the Inventors or the Principal
Investigator be liable for any indirect, incidental or consequential
damages including any loss of profits, revenue, business opportunity or
goodwill.

	 	(c)	 	The Licensee shall indemnify CE, the University, the University’s employees
and students and the Inventors and Principal Investigator up to £1,000,000 against all
direct, indirect, incidental, consequential or special liability, loss, damages or
expenses, including legal and other professional fees and expenses, howsoever arising
(including in contract, tort, negligence or for breach of statutory duty or
misrepresentation) from or in connection with any claim or threatened claim by any
third party relating to or arising from the use by the Licensee or any Sub-Licensee of
the Licensed Technology or otherwise in connection with the manufacture, use or sale
of or any other dealing in any of the Licensed Products by the Licensee or any
Sub-Licensee. Nothing in this sub-clause shall prevent the Licensee recovering from
CE, subject to the exclusions and limitations set out this Agreement, damages due to
the Licensee for default by CE of any of its obligations under this Agreement.

	8	 	Duration and termination
	 
	8.1	 	Commencement and termination by expiry
	 
	 	 	This Agreement, and the licences granted hereunder, shall come into effect on the
Commencement Date and, unless terminated earlier in accordance with this clause 8, shall
continue in force on a country by country basis until the date on which all the Patents
have expired or been revoked without a right of further appeal.
	 
	8.2	 	Early termination by the Licensee
	 
	 	 	The Licensee may terminate this Agreement at any time on 90 days’ notice in writing to CE.
	 
	8.3	 	Early termination by CE
	 
	 	 	CE may terminate this Agreement

	 	(a)	 	forthwith by giving written notice to the Licensee if the Licensee or any
Sub-Licensee commence(s) legal proceedings, or assist(s) any third party to commence
legal proceedings, to challenge the validity or ownership of any of the Patents; and
	 
	 	(b)	 	as provided in clause 5.

	8.4	 	Early termination by either party

Copyright © 2003-8 University of Cambridge

 Page 20 of  31

 

	 	 	Without prejudice to any other right or remedy, either Party may by written notice to the
other Party terminate this Agreement at any 

time if

	 	(a)	 	the other Party has materially breached this Agreement (and for the avoidance
of doubt non-payment by the Licensee under clause 4 shall be deemed a material breach)
and, in case of a remediable breach other than a persistent breach, has failed to
remedy that breach within thirty days of the date of service of a written notice from
the other Party specifying the breach and requiring that it be remedied; or
	 
	 	(b)	 	the other Party ceases to carry on business, is unable to pay its debts when
they fall due, is declared bankrupt, or an order is made or a resolution passed for
the winding up of that other Party or the appointment of an administrator, receiver,
liquidator or manager of that other Party.

	8.5	 	Consequences of termination

	 	(a)	 	Upon termination of this Agreement by expiry under clause 8.1 above, the
licence of the Patents in clause 2.1(a) shall terminate.
	 
	 	(b)	 	Upon termination of this Agreement for any reason otherwise than in
accordance with clause 8.1:

	 	(i)	 	the Licensee and its Sub-Licensees shall be entitled to
sell, use or otherwise dispose of (subject to payment of royalties under
clause 4.2) any unsold or unused stocks of the Licensed Products for a
period of 6 months following the date of termination;
	 
	 	(ii)	 	subject to paragraph (i) above, the Licensee shall no
longer be licensed to use or otherwise exploit in any way, either directly
or indirectly, the Patents or the Know-how, in so far and for as long as
any of the Patents remains in force;
	 
	 	(iii)	 	subject to paragraph (i) above, the Licensee shall
consent to the cancellation of any formal licence granted to it, or of any
registration of it in any register, in relation to any of the Patents;
	 
	 	(iv)	 	each Party shall return to the other (or destroy at the
other’s request) all Confidential Information disclosed to it by the other
and all materials containing any Confidential Information in its possession
or control (including, in the case of the Licensee, in the possession or
control of its Sub-Licensees); and
	 
	 	(v)	 	upon CE’s request, the Parties shall negotiate in good
faith the terms of an agreement between them on reasonable commercial terms
to enable CE to arrange for the further exploitation of the Licensed
Technology and Licensed Products as they exist at the date of termination
including to provide CE with all improvements, information, know-how and
results created or

Copyright © 2003-8 University of Cambridge

 Page 21 of  31

 

	 	 	 	developed by the Licensee or its Sub-Licensees.

	 	(c)	 	If the Parties are unable to agree the terms of an agreement as described in
clause 8.5(b)(v) CE may initiate the procedure in 

clause 9.
	 
	 	(d)	 	The expiry or termination of this Agreement does not affect any rights or
obligations of either Party which have arisen or accrued up to and including the date
of expiry or termination including the right to payment under this Agreement.
	 
	 	(e)	 	Clauses 2.3(d), 2.4, 3.2 to 3.7, 4 (in respect of payments due on or before
termination or under clause 8.5(b)(i)), 7, 8.5, 9 and 10 survive expiry or termination
(for whatever reason).

	9	 	Dispute resolution
	 
	 	 	The Parties agree that should any dispute arise between them in relation to this Agreement
(other than under clause 5), they shall meet as soon as practicable and negotiate in good
faith with a view to resolving the dispute.
	 
	 	 	If the Parties are unable to settle any dispute by negotiation within 28 days the Parties
will attempt to settle it by mediation in accordance with the Centre for Effective Dispute
Resolution (CEDR) Model Mediation Procedure.
	 
	 	 	To initiate a mediation a party must give notice in writing to the other party, requesting
a mediation in accordance with this clause 9.
	 
	 	 	Nothing in this Clause 9 shall prevent either party from applying for urgent injunctive
relief to restrain any actual or potential breach of this Agreement.
	 
	10	 	General
	 
	10.1	 	Force majeure.

	 	(a)	 	Notwithstanding any other provision of this Agreement, no Party need act if
it is impossible to act due to force majeure, meaning any cause beyond its control
(including war, riot, natural disaster, labour dispute, or law taking effect after the
date of this Agreement). A Party affected by force majeure agrees to notify the other
Party promptly after it determines that it is unable to act.
	 
	 	(b)	 	A Party has no responsibility or liability for any loss or expense suffered
or incurred by the other Party as a result of its not acting for so long as the force
majeure under clause 10.1 continues. However, the non-performing Party agrees to make
reasonable efforts to avoid or remove the circumstances giving rise to the force
majeure and agrees to continue performance under this Agreement promptly when they are
removed.

	10.2	 	Assignment.

	 	(a)	 	Save as provided by clause 10.2(b) and 10.2(c) neither party may assign,
transfer, charge or deal in any other manner with this Agreement nor

Copyright © 2003-8 University of Cambridge

 Page 22 of  31

 

	 	 	 	purport to do so without the prior written consent of the other party.
	 
	 	(b)	 	CE may assign the whole or any of its rights and obligations under this
Agreement provided that CE’s assignee shall undertake to be bound by and perform CE’s
obligations under this Agreement. CE shall notify the Licensee of any assignment under
this Agreement.
	 
	 	(c)	 	The Licensee may assign its rights and obligations under this Agreement where
the assignment is connected with the transfer of all or substantially all of the
Licensee’s assets to a single purchaser and provided such purchaser undertakes to CE
to be bound by and perform the obligations of the Licensee under this Agreement and is
capable of performing such obligations. The Licensee shall notify CE of any such
assignment.

	10.3	 	Waiver
	 
	 	 	A provision of this Agreement or any right created under it cannot be waived or varied
except in writing signed by the Parties.
	 
	10.4	 	Invalid clauses
	 
	 	 	If the whole or any part of a provision of this Agreement is void, unenforceable or illegal
in a jurisdiction it is severed for that jurisdiction. The remainder of this Agreement has
full force and effect and the validity or enforceability of that provision in any other
jurisdiction is not affected. This clause has no effect if the severance alters the basic
nature of this Agreement or is contrary to public policy.
	 
	10.5	 	No agency
	 
	 	 	Nothing in this Agreement shall be construed as creating any agency, partnership or other
form of joint enterprise between the Parties and neither Party has the authority to act for
or bind the other Party in any way.
	 
	10.6	 	Notices
	 
	 	 	Any notice to be given under this Agreement shall be in writing and delivered by hand,
prepaid registered post or facsimile to the other Party at the address or fax number set
out below or to such other address or fax number as either Party may specify in writing to
the other.

	 	 	 	 	 

	 

	 	Notices to CE
	 	10 Trumpington Street,
	 
	 	 	 	 
	 

	 	 	 	Cambridge
	 
	 	 	 	 
	 

	 	 	 	CB2 1QA.
	 
	 	 	 	 
	 

	 	 	 	Fax number: +44 (0) 1223 332988.

Copyright © 2003-8 University of Cambridge

 Page 23 of  31

 

	 	 	 	 	 

	 

	 	Notices to the Licensee
	 	Psynova Neurotech Limited
	 
	 	 	 	 
	 

	 	 	 	St John’s Innovation Centre,
	 
	 	 	 	 
	 

	 	 	 	Cowley Road,
	 
	 	 	 	 
	 

	 	 	 	Cambridge
	 
	 	 	 	 
	 

	 	 	 	CB4 0WS
	 
	 	 	 	 
	 

	 	 	 	Fax 01223 703146

	 	 	Notices are deemed to have been given:

	 	(a)	 	if delivered by hand, at the time of the delivery unless delivered after 5pm
in the place of receipt or on a non-business day, in which case the notice is deemed
to have been given at 9am the next business day;
	 
	 	(b)	 	if sent by registered post from within the United Kingdom, three business
days after posting (or seven business days if posted from outside the United
Kingdom); and
	 
	 	(c)	 	if sent by facsimile, at the time the facsimile is received shown in the
transmission report as the time that the whole facsimile was sent unless received
after 5pm in the place of receipt or on a non-business day, in which case the notice
is deemed to have been given at 9am the next business day.

	10.7	 	Law and jurisdiction
	 
	 	 	This Agreement and any documents to be entered into pursuant to it shall be governed by and
construed in accordance with English law and each Party irrevocably submits to the
exclusive jurisdiction of the courts of England over any claim or matter arising under or
in connection with this Agreement and the documents entered into pursuant to it except that
a Party may seek an interim injunction as described in Clause 9 in any court of competent
jurisdiction.
	 
	10.8	 	Further action
	 
	 	 	Each Party agrees to execute, acknowledge and deliver such further instruments, and do all
further similar acts, as may be necessary or appropriate to carry out the purposes and
intent of this Agreement.
	 
	10.9	 	Announcements
	 
	 	 	A Party may not make press or other announcements or releases relating to this Agreement or
the transactions the subject of this Agreement without the approval of the other Party to
the form and manner of the announcement or release unless and to the extent that the
announcement or release:

	 	(a)	 	is required to be made by law or by a stock exchange; or

Copyright © 2003-8 University of Cambridge

 Page 24 of  31

 

	 	(b)	 	is made in the annual report of CE, the University or one of the
University’s departments.

	10.10	 	Entire agreement
	 
	 	 	This Agreement constitutes the entire agreement and understanding of the Parties and
supersedes all negotiations, understandings or previous agreement between the Parties
relating to the subject matter of this Agreement. Nothing in this Agreement, including
this clause and clause 7.2, shall operate to limit or exclude liability for fraud or
fraudulent misrepresentation.
	 
	10.11	 	Third party rights
	 
	 	 	The University, any University wholly owned subsidiary, the University’s employees or
students, the Inventors and the Principal Investigator may enforce those terms of this
Agreement which expressly confer rights on them, subject to and in accordance with the
Contracts (Rights of Third Parties) Act 1999. Save as aforesaid no term of this Agreement
shall be enforceable under that Act by a person who is not a party to this Agreement, but
this shall not affect any right or remedy of any third party which exists or is available
other than under that Act. Notwithstanding that any term of this Agreement may be or
become enforceable under that Act by a person which is not a party to it, this Agreement
may be amended in any respect, or suspended, cancelled or terminated by agreement in
writing between the Parties, in each case without the consent of such third party.
	 
	10.12	 	Export Control Regulations

	 	(a)	 	“Export Control Regulations” mean any United Nations trade sanctions or EU or
UK legislation or regulation, from time to time in force, which impose arms embargoes
or control the export from the United Kingdom of goods, technology or software,
including weapons of mass destruction and arms, military, paramilitary and security
equipment and dual-use items (items designed for civil use but which can be used for
military purposes) and certain drugs and chemicals.
	 
	 	(b)	 	The Licensee shall ensure that, in using the Licensed Technology and in
selling Licensed Products, it shall not and nor shall its employees or sub-contractors
or any Sub-Licensee directly or indirectly breach or compromise compliance with any
Export Control Regulations.

	10.13	 	Non-use of names and marking of Licensed Products

	 	(a)	 	The Licensee shall not use and shall ensure that Sub-Licensees do not use the
name, any adaptation of the name, any logo, trademark or other device of the
“University of Cambridge”, “Cambridge Enterprise Limited” nor of the Inventors or
Principal Investigator in any advertising, promotional or sales materials without
prior written consent obtained from CE in each case, except that Licensee may state
that it is licensed by CE to use the Licensed Technology and to make and supply the
Licensed Products.

Copyright © 2003-8 University of Cambridge

 Page 25 of  31

 

	 	(b)	 	To the extent commercially feasible the Licensee shall mark and cause
Sub-Licensees to mark each patented product with the number of each issued Patent
which applies to it.

	10.14	 	Insurance
	 
	 	 	Without limiting its liability under clause 7.3(c) the Licensee shall take out with a
reputable insurance company and maintain at all times during the Term public and product
liability insurance including against all loss of and damage to property (whether real
personal or intellectual) and injury to persons including death arising out of or in
connection with this Agreement and the Licensee’s and Sub-Licensees’ use of the Licensed
Technology and use, sale of or any other dealing in any of the Licensed Products. Such
insurances may be limited in respect of one claim provided that such limit must be at least
£5 million. Product liability insurance shall continue to be maintained for a further 6
years from the end of the Term.
	 
	10.15	 	Legal Compliance
	 
	 	 	The Licensee shall comply with all statutes, bye laws, regulations, codes of practice,
European and other directives, and other provisions (and any amendment or re-enactment) and
all professional rules and standards to be observed and performed in connection with the
development, manufacture and sale or making available of Licensed Products.

Copyright © 2003-8 University of Cambridge

 Page 26 of  31

 

AGREED by the parties through their authorised signatories:-

	 	 	 

	For and on behalf of
	 	 
	 
	 	 
	CAMBRIDGE ENTERPRISE LIMITED
	 	 
	 
	 	 
	     /s/ J. M. Grimshaw
 

signed

	 	 
	 
	 	 
	     J. M. Grimshaw
 

print name

	 	 
	 
	 	 
	     Head of Physical Sciences
 

title

	 	 
	 
	 	 
	     17 March 2010
 

date

	 	 

	 	 	 

	For and on behalf of

	 	 
	PSYNOVA NEUROTECH LIMITED
	 	 
	 
	 	 
	     /s/ Paul Rodgers
 

signed

	 	 
	 
	 	 
	     Paul Rodgers
 

print name

	 	 
	 
	 	 
	     Director
 

title

	 	 
	 
	 	 
	     22 March 2010
 

date

	 	 

Copyright © 2003-8 University of Cambridge

 Page 27 of  31

 

Schedule 1

Part A The Patents

	 	 	 

	Title:

	 	Biomarkers
	 	 	 
	Inventors:

	 	Sabine Bahn and Emanuel Schwarz
	 	 	 
	Filing Number(s):

	 	GB0922240.7
	 	 	 
	Filing Date:

	 	21 December 2009

 28 

 

Schedule 2

Appointment of Expert

	1	 	Pursuant to clause 5.3, CE may serve notice on the Licensee (“Referral Notice”) that it
wishes to refer to an expert (the “Expert”) the questions set out in clause 5.3.
	 
	2	 	The parties shall agree the identity of a single independent, impartial expert to determine
such questions. In the absence of such agreement within 30 days of the Referral Notice, the
questions shall be referred to an expert appointed by the President of Law Society of England
and Wales.
	 
	3	 	60 days after the giving of a Referral Notice, both parties shall exchange simultaneously
statements of case in no more than 10,000 words, in total, and each side shall simultaneously
send a copy of its statement of case to the Expert.
	 
	4	 	Each party may, within 30 days of the date of exchange of statement of case pursuant to
paragraph 3 above, serve a reply to the other side’s statement of case of not more than 10,000
words. A copy of any such reply shall be simultaneously sent to the Expert.
	 
	5	 	The Expert shall make his decision on the said questions on the basis of written statements
and supporting documentation only and there shall be no oral hearing. The Expert shall issue
his decision in writing within 30 days of the date of service of the last reply pursuant to
paragraph 4 above or, in the absence of receipt of any replies, within 60 days of the date of
exchange pursuant to paragraph 3 above.
	 
	6	 	The Expert’s decision shall be final and binding on the parties.
	 
	7	 	The Expert’s charges shall be borne equally by the parties.

  29 

 

Schedule 3

Part A: Payment and Report Schedule

	 	 	 	 	 

	Licensee Name:

	 	Psynova Neurotech Limited
	 	CE Case Number: Bah-2338-09
	 
	 	 	 	 
	Licensee Invoice Address:

	 	St John’s Innovation Centre, Cowley Road, Cambridge, CB4 0WS	 	 
	 
	 	 	 	 
	Licensed Technology known as:

	 	Biomarkers for schizophrenia and other psychotic disorders
	 	Commencement Date:
 22 March 2010
	 
	 	 	 	 
	Payment Periods: 6 month periods ending on
31st January and 31st July	 	Term: From the Commencement Date until expiry

Due date for payment: within 30 days of the end of the month in which the payment date specified
in the right hand column below falls

(Interest is payable if this period is exceeded.) Royalties on invoices sent between the end of the
final Payment Period and termination or expiry of this Agreement shall be due and shall be paid
within 30 days of termination or expiry.

Each payment shall be accompanied by a financial report (as in Part B below). Other types of
reports are also required (see the right hand column below)

	 	 	 
	Event	 	Payment and reports dates
	Reimbursement of patent costs

	 	Payment date - the Commencement Date.
	 
	 	 
	Royalties including for
sub-licensees

	 	Payment date - last day of each Payment
Period for invoices sent during the
Payment Period.
Royalty Reports are due annually prior to
first sale of a Licensed Product.
Subsequently reports to be submitted
within 30 days of the end of each Payment
Period (nil returns are required) along
with any Royalty payment.
	 
	 	 
	Other Income

	 	Payment date - date of Licensee’s invoice
to the Sub-Licensee or receipt of payment
from Sub-Licensee, whichever is the
earlier.
Report the payment in next Royalty Report.
	 
	 	 
	Milestone payment

	 	Payment date - date when the milestone is
achieved.
	 
	 	 
	Commercialisation

	 	Report within 30 days of each anniversary
of the Commencement Date.
	 
	 	 
	First sale of a Licensed Product

	 	Report within 60 days of first sale.

30

 

	Schedule 3 Part B: Financial Report Format LICENCE DETAILS Only those parts of the form
relevant to the payment being made need to be completed. Licensee Name: Psynova Neurotech Limited
CE Case Number: Bah-2338-09 Licensee Invoice Address: St John’s Innovation Centre, Cowley Road,
Cambridge, CB4 0WS Licensed Technology known as: Biomarkers for schizophrenia and other psychotic
disorders Commencement Date: 22 March 2010 Payment Periods: 6 month periods ending on
31st January and 31st July Royalty Report for the 6 month period [ ] to [ ]
Licensee Royalties: Products Royalty Rate Territory No of products *Net Sales Value on number of
products sold £ Royalty Payable Local currency Conversion rate UK currency Pharma Example: 1%
France 100 1000 euros 1 euro is £0.6784 £678.40 £6.78 Diagnostic Other Total Licensee Royalties:
Sub-Licensee Royalties: Products Royalty Rate Territory No of products *Net Sales Value £ Royalty
Payable Local currency Conversion rate UK currency Pharma Diagnostic Other Total Sub-Licensee
Royalties: TOTAL ROYALTIES due with this Royalty Report: * If deductions are made to arrive at Net
Sales Value, please provide copy customer invoices showing that these sums were charged separately.
Under clause 4.3(b) Other Income arising during the Payment Period: Date of Invoice Date of Receipt
Payment Rate Local Currency Conversion Rate £ Payable Nature of the Payment: [ie annual
fee/milestone payment etc}: This payment is subject to RPI (see clause 4.6(c)) £ Payable: For
sub-licence royalties or income:Copy sub-licence enclosed?

31exv10w4w2

Exhibit 10.4.2

CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST,
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN
THIS EXHIBIT AT THE APPROPRIATE PLACE WITH THREE
ASTERISKS [***].

CAMBRIDGE ENTERPRISE LIMITED

(“CE”)

and

PSYNOVA NEUROTECH LITIMED

(“Licensee”)

EXCLUSIVE PATENT AND

NON-EXCLUSIVE KNOW-HOW

LICENCE AGREEMENT

Case No: Bah-2351-09/PSY027

Copyright © 2003-8 University of Cambridge

Page 1 of 31

 

	

	1 Definitions and Interpretations

	 

	1.1 Definitions

	1.2 Interpretation

	1.3 Schedules

	 

	2 Grant of rights

	 

	2.1 Licences

	2.2 Formal licences

	2.3 Sub-licensing

	2.4 Reservation of rights

	2.5 Business Difficulties

	 

	3 Non Disclosure

	 

	3.1 Provision of Know-how

	3.2 Licensee to treat Know-how as confidential

	3.3 Confidentiality

	3.4 Use of Confidential Information

	3.5 Disclosing Information

	3.6 Exceptions to confidentiality obligations

	3.7 Return of information and survival of confidentiality obligations

	 

	4 Payments

	 

	4.1 Non-monetary and inadequate consideration

	4.2 Royalties on all Net Sales of a Licensed Product by Psynova Neurotech and any
Sub-Licensees

	4.3 Milestone payments

	4.4 Other Income (other than Royalties)

	4.5 Payment terms and price index

	4.6 Reimbursement of patent costs

	4.7 Financial reports

	4.8 Records

	 

	5 Commercialisation obligations and reports

	 

	5.1 Commercialisation

	5.2 Commercialisation Report

	5.3 Independent Expert — Reference

	5.4 Independent Expert – appointment and decision

	5.5 CE’s right to terminate

	5.6 Sub-licensing of undeveloped applications

	 

	6 Intellectual property

	 

	6.1 Patent protection

	6.2 Infringement of the Patents

	6.3 Infringement of third party rights

	 

	7 Warranties and liability

	 

	7.1 Status of Licensed Technology and responsibility for development of Licensed
Products

	7.2 No representations or warranties

	7.3 Liability and indemnity

	 

	8 Duration and termination

	 

	8.1 Commencement and termination by expiry

	8.2 Early termination by the Licensee

	8.3 Early termination by CE

	8.4 Early termination by either party

	8.5 Consequences of termination

	 

	9 Dispute resolution

	 

	10 General

	 

	10.1 Force majeure.

	10.2 Assignment.

	10.3 Waiver

	10.4 Invalid clauses

	10.5 No agency

	10.6 Notices

	10.7 Law and jurisdiction

	10.8 Further action

	10.9 Announcements

	10.10 Entire agreement

	10.11 Third party rights

Copyright © 2003-8 University of Cambridge

Page 2 of 31

 

	 

	10.12 Export Control Regulations

	10.13 Non-use of names and marking of Licensed Products

	10.14 Insurance

	10.15 Legal Compliance

	 

	Schedule 1

	 

	Schedule 2

	 

	Schedule 3

Copyright © 2003-8 University of Cambridge

Page 3 of 31

 

THIS AGREEMENT dated March 22, 2010 is between:

	(1)	 	CAMBRIDGE ENTERPRISE LIMITED (“CE”), a company incorporated
	 
	 	 	in England and Wales (registered number 1069886) whose registered address is at The Old
Schools, Trinity Lane, 

Cambridge CB2 1TN, UK;
	 
	 	 	and
	 
	(2)	 	PSYNOVA NEUROTECH LIMITED (the “Licensee” or “Psynova”) a company incorporated in England and
Wales (registered number 05524107) whose registered office is at St John’s Innovation Centre,
Cowley Road, Cambridge, CB4 0WS.
	 
	RECITALS:
	 
	A.	 	CE is a company wholly owned by The Chancellor, Masters and Scholars of the University of
Cambridge.
	 
	B.	 	The University inventors specified in Schedule 1 have developed technology relating to
biomarkers for the diagnosis and monitoring of schizophrenia and other psychotic disorders,
including the Patents and the Know-how and they and the University have assigned to CE all
their intellectual property rights in the Patents and the Inventors have granted a licence to
CE in respect of the Know-how.
	 
	C.	 	By an option agreement dated 4th March 2010 CE granted Psynova an option to take
an exclusive licence under the Patent.
	 
	D.	 	The Licensee wishes to acquire rights under the Patents and to use the Know-how for the
development and commercialisation of Licensed Products in the Field and in the Territory, in
accordance with the provisions of this Agreement.
	 
	IT IS AGREED as follows:
	 
	1	 	Definitions and Interpretations
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement, the following words shall have the following meanings:

	 	 	 

	Anniversary

	 	An anniversary of the Commencement Date.
	 
	 	 
	Commencement Date

	 	22 March 2010
	 
	 	 
	Confidential Information

	 	Any information marked confidential obtained directly or indirectly by one Party from the
other Party.
	 
	 	 
	Continuation in Part

	 	Any continuation-in-part patent application provided
	 
	 	 
	 

	 	(a)  it was filed within two
years of the original
application;

Copyright © 2003-8 University of Cambridge

Page 4 of 31

 

	 	 	 

	 

	 	(b)  it only names one or more
of the Inventors;

	 
	 	 
	 

	 	(c)  the technology covered
was disclosed, claimed in and dominated by the original
application; and

	 
	 	 
	 

	 	(d)  is not burdened by, for
example, sponsored research or any other collaboration
between the University and a third party.

	 
	 	 
	Field

	 	Diagnosis and monitoring of schizophrenia and other
psychotic disorders.
	 
	 	 
	Know-how

	 	Technical information of the Principal Investigator in
the Field which exists at the Commencement Date and
which relates directly to the inventions claimed in
the Patents.
	 
	 	 
	Inventor(s)

	 	The inventors named in Schedule 1.
	 
	 	 
	Licensed Product

	 	Any product, process or use which the Licensee or
Sub-Licensees sell, supply or make available
(including to a Sub-Licensee) and which incorporates
or their development makes use of any of the Licensed
Technology.
	 
	 	 
	Licensed Technology

	 	The Patents and the Know-how.
	 
	 	 
	Net Sales Value

	 	Either;
	 
	 	 
	 

	 	(a)  the price of Licensed
Products invoiced in arm’s length transactions to
independent third parties exclusively for money or;

	 
	 	 
	 

	 	(b)  the price that would have been invoiced if it had been such a transaction

	 
	 	 
	 

	 	      and in both cases without deduction of any commission
paid to a third party but less the following permitted
deductions:

	 
	 	 
	 
	 	(ii)   arm’s
length trade discounts or credits given; and

	 
	 	 
	 

	 	(iii)   provided the amounts are separately charged on the
relevant invoice, any costs of packaging,
insurance, carriage and freight, any value added
tax or other sales tax, and any import duties or
similar applicable government levies.

Copyright © 2003-8 University of Cambridge

Page 5 of 31

 

	 	 	 

	Parties

	 	CE and the Licensee, and “Party” shall mean either
of them.
	 
	 	 
	Patents

	 	Any and all of the patents and patent applications
referred to in Schedule 1 together with any patents
granted pursuant to the applications and any
continuations, Continuations in Part, extensions,
reissues, divisions and supplementary protection
certificates that derive priority from the
foregoing.
	 
	 	 
	Payment Period

	 	The payment periods specified in Schedule 3.
	 
	 	 
	Planned Sales

	 	Projected annual sales for Licensed Products.
	 
	 	 
	Principal Investigator

	 	Dr Sabine Bahn
	 
	 	 
	RBM

	 	Rules Based Medicine, Inc., whose registered office
is at 300 Duval Road, Austin, 

Texas 78759, USA.
	 
	 	 
	Royalty

	 	The royalty specified in clause 4.2
	 
	 	 
	Other Income

	 	Any payment (other than Royalties) and, without
prejudice to clause 4.1, the value of any
non-monetary receipt or benefit which the Licensee
obtains in connection with the rights granted by
clause 2.1 less any value added tax but including
	 
	 	 
	 

	 	(a)  consideration for any
option or any sub or cross-licence;

	 
	 	 
	 

	 	(b)  research or development
funding exceeding a reasonable level of remuneration as
defined in clause 4.4(d);

	 
	 	 
	 

	 	(c)  up front, milestone,
success, bonus, maintenance, minimum royalty or periodic
(including annual) payments;

	 
	 	 
	 

	 	(d)  shares, options or other
securities obtained from third parties;

	 
	 	 
	 

	 	(e)  the amount by which any
premium paid for shares, options or other securities exceeds
fair market value, to be determined on the assumption that
CE has not granted or agreed to grant any rights to the
Licensee in respect of the Licensed Technology;

	 
	 	 
	 

	 	(f)  any loan guarantee or

other financial benefit made or given other than on normal

market terms

Copyright © 2003-8 University of Cambridge

Page 6 of 31

 

	 	 	 

	Sub-Licensee

	 	Any third party granted a sub-licence of the
rights in clause 2.1 by the Licensee whether
directly by the Licensee or through multiple
levels of sub-licensing.
	 
	 	 
	Term

	 	The period specified in clause 8.1.
	 
	 	 
	Territory

	 	World-wide.
	 
	 	 
	University

	 	The Chancellor, Masters and Scholars of the
University of Cambridge.

	1.2	 	Interpretation
	 
	 	 	In this Agreement (except where the context otherwise requires):

	 	(a)	 	any reference to a clause or schedule is to the relevant clause or schedule
of or to this Agreement and any reference to a sub-clause or paragraph is to the
relevant sub-clause or paragraph of the clause or schedule in which it appears;
	 
	 	(b)	 	the clause headings are included for convenience only and shall not affect
the interpretation of this Agreement;
	 
	 	(c)	 	any reference to “person” or “persons” includes natural persons, firms,
partnerships, companies, corporations, associations, organisations, governments,
states, foundations and trusts (in each case whether or not having separate legal
personality);
	 
	 	(d)	 	the singular includes the plural and vice versa; and
	 
	 	(e)	 	words preceding “include”, “includes”, “including” and “included” shall be
construed without limitation by the words which follow those words.

	1.3	 	Schedules
	 
	 	 	The schedules form part of this Agreement. If a provision of a schedule is inconsistent
with a provision of this Agreement, the latter prevails.
	 
	2	 	Grant of rights
	 
	2.1	 	Licences
	 
	 	 	CE hereby grants to the Licensee subject to the provisions of this Agreement:

	 	(a)	 	an exclusive licence under the Patents, with the right to sub-license,
subject to clause 2.3 below, to develop, manufacture, have manufactured, sell, have
sold, supply, use, promote, market and make available Licensed Products only in the
Field in the Territory; and
	 
	 	(b)	 	a non-exclusive licence to use the Know-how, with the right to sub-license,
subject to clause 2.3 below, to develop, manufacture, have

Copyright © 2003-8 University of Cambridge

Page 7 of 31

 

	 	 	 	manufactured, sell, have sold, supply, use, promote, market and make available
Licensed Products only in the Field in the Territory.

	2.2	 	Formal licences
	 
	 	 	The Parties shall execute such formal licences as may be necessary or appropriate for
registration with Patent Offices and other relevant authorities in particular territories.
In the event of any conflict in meaning between any such licence and the provisions of this
Agreement, the provisions of this Agreement shall prevail. Prior to the execution of the
formal licence(s) (if any) referred to in this clause, the Parties shall so far as possible
have the same rights and obligations towards one another as if such licence(s) had been
granted. The Parties shall use reasonable endeavours to ensure that, to the extent
permitted by relevant authorities, this Agreement shall not form part of any public record.

	2.3	 	Sub-licensing

	 	2.3.1	 	The Licensee shall be entitled to grant a sub-licence of its rights under this Agreement
to RBM provided that:

	 	(a)	 	the sub-licence shall include terms which are equivalent to the obligations
and limitations (including limitations of liability) which apply to the Licensee under
this Agreement and that RBM shall be subject to clause 4 of this agreement;
	 
	 	(b)	 	the sub-licence shall terminate automatically on the termination of this
Agreement for any reason save that CE shall in good faith negotiate with RBM the terms
of a new sub-licence upon substantially equivalent terms;
	 
	 	(c)	 	within 30 days of the grant of the sub-licence the Licensee shall provide to
CE a true copy of it;
	 
	 	(d)	 	the Licensee shall be responsible for any breach by RBM, as if the breach had
been that of Licensee under this Agreement, and the Licensee shall indemnify CE
against any loss, damages, costs, claims or expenses which are awarded against or
suffered by CE as a result of any such breach by RBM;
	 
	 	(e)	 	for the avoidance of doubt, all Sub-Licensees of RBM shall be treated as
sub-licensees of the Licensee for the purposes of this Agreement, whether the rights
are granted directly by the Licensee or by any Sub-Licensee; and
	 
	 	(f)	 	in respect of clause 4 of this agreement all actions of RBM shall be
considered those of the Licensee and the Licensee shall be responsible for making
payments to CE.

	 	2.3.2	 	The Licensee shall be entitled to grant sub-licences of its rights under this Agreement
and to permit multiple levels of sub-licensing by Sub-Licensees, provided that:

Copyright © 2003-8 University of Cambridge

Page 8 of 31

 

	 	(a)	 	each sub-licence shall include terms which are equivalent to the obligations
and limitations (including limitations of liability) which apply to the Licensee under
this Agreement;
	 
	 	(b)	 	each sub-licence shall terminate automatically on the termination of this
Agreement for any reason save that CE shall in good faith negotiate with the
sub-licensee the terms of a new sub-licence upon substantially equivalent terms and
substantially equivalent financial terms to those between Psynova and the
Sub-Licensee;
	 
	 	(c)	 	within 30 days of the grant of any sub-licence the Licensee shall provide to
CE a true copy of it;
	 
	 	(d)	 	the Licensee shall be responsible for any breach by any Sub-Licensee, as if
the breach had been that of Licensee under this Agreement, and the Licensee shall
indemnify CE against any loss, damages, costs, claims or expenses which are awarded
against or suffered by CE as a result of any such breach by a Sub-Licensee; and
	 
	 	(e)	 	for the avoidance of doubt, all Sub-Licensees shall be treated as
sub-licensees of the Licensee for the purposes of this Agreement, whether the rights
are granted directly by the Licensee or by any Sub-Licensee.

	2.4	 	Reservation of rights

	 	(a)	 	CE reserves for itself, (and also grants to the University and any wholly
owned subsidiary of the University and any sponsor of the research which created the
subject matter of the Patents) an irrevocable, world-wide, royalty-free, non-exclusive
right to use and to license other academic institutions to use the Patents in the
Field for publication, teaching, clinical patient care, provision of biological
materials for internal academic research purposes and academic research, including as
background intellectual property for collaborative research pursuant to EC or other
government research funding and for applications for funding for such research. The
Licensee agrees that, notwithstanding any other provision of this Agreement, it has no
right to enforce the Patents against any academic institution or restrict publication
of any research by an academic institution relating to or using the Licensed
Technology for not for profit purposes.
	 
	 	(b)	 	Except for the rights expressly set out in this Agreement, no licence is
granted in respect of the Licensed Technology or any other technology or patents of CE
regardless of whether such technology or patents are dominant or subordinate to the
Licensed Technology and all rights, title and interest in and to the Licensed
Technology throughout the world now or hereafter are and shall remain the exclusive
property of CE.

	2.5	 	Business Difficulties

Copyright © 2003-8 University of Cambridge

Page 9 of 31

 

	 	 	Without prejudice to any other right or remedy which CE may have, if any of the events
contemplated in clause 8.4(b) apply to the Licensee, the exclusivity of licence granted in
clause 2.1(a) shall cease and the licence shall become non-exclusive.
	 
	3	 	Non Disclosure
	 
	3.1	 	Provision of Know-how
	 
	 	 	Upon the Licensee’s reasonable request, CE shall arrange for the Principal Investigator to
supply the Licensee with all Know-how in his possession that CE is at liberty to disclose
and that has not previously been disclosed and which is reasonably necessary or desirable
to enable the Licensee to undertake the further development of the Patents. The method of
such supply shall be agreed between the Principal Investigator and the Licensee but shall
not require the Principal Investigator to undertake any man-days of work, unless otherwise
agreed in writing between the Parties. If it is agreed that the Principal Investigator
shall travel to the Licensee’s premises in connection with such supply, the Licensee shall
reimburse all travel (at business class rates), accommodation and subsistence costs
incurred.
	 
	3.2	 	Licensee to treat Know-how as confidential
	 
	 	 	The Licensee receives the Know-how as Confidential Information. The Licensee shall not use
the Know-how for any purpose except as expressly licensed hereby and in accordance with the
provisions of this Agreement. The Licensee shall observe the provisions of clauses 3.3 to
3.6 and 8.5(b)(iv) in relation to the Know-how.
	 
	3.3	 	Confidentiality
	 
	 	 	No Confidential Information disclosed by one party (“Disclosing Party”) to the other party
(“Recipient Party”) under this Agreement may be disclosed by the Recipient Party to any
person except:

	 	(a)	 	employees, officers, directors, auditors, or subcontractors of the Recipient
Party or the University requiring the Confidential Information for the purposes of
this Agreement;
	 
	 	(b)	 	with the prior written consent of the Disclosing Party which consent may be
given or withheld in its absolute discretion;
	 
	 	(c)	 	to actual or potential customers or sub-licensees for Licensed Products in so
far as such disclosure is necessary to promote the sale or use of Licensed Products;
	 
	 	(d)	 	if the Recipient Party is required to do so by law (including the Freedom of
Information Act 2000) or stock exchange; or
	 
	 	(e)	 	if the Recipient Party is required to do so in connection with legal
proceedings relating to this Agreement.

 Copyright © 2003-8 University of Cambridge

Page 10 of 31

 

	3.4	 	Use of Confidential Information
	 
	 	 	No Confidential Information of the Disclosing Party may be used by the Recipient Party for
any purpose other than the performance of the Recipient Party’s obligations or the exercise
of the Recipient Party’s rights under this Agreement.
	 
	3.5	 	Disclosing Information
	 
	 	 	Any party disclosing information under clause 3.3(a) (b) or (c) must use all reasonable
endeavours to ensure that persons receiving Confidential Information from it

	 	(a)	 	do not disclose or use the information except in the circumstances permitted
in clauses 3.3 and 3.4 and
	 
	 	(b)	 	sign a written confidentiality undertaking in terms at least as restrictive
as that binding the Recipient Party.

	3.6	 	Exceptions to confidentiality obligations

	 	(a)	 	Clauses 3.3, 3.4 and 3.5 do not apply to Confidential Information which:

	 	(i)	 	is in or becomes part of the public domain other than
through breach of this Agreement or an obligation of confidence owed to the
Disclosing Party;
	 
	 	(ii)	 	the Recipient Party can prove by contemporaneous
written documentation was already known to it at the time of disclosure by
the Disclosing Party (unless that knowledge arose from disclosure of
information in breach of an obligation of confidence).

	 	(b)	 	For the avoidance of doubt the Licensee acknowledges that

	 	(i)	 	CE is required to inform those inventors and others entitled to a share in CE
receipts under this Agreement (including persons other than CE employees) of the basis
of CE’s calculation of the share due; and
	 
	 	(ii)	 	for the purpose of academic publication any academic who contributed to the
creation or development of the Licensed Technology may have to declare to the publisher
and in publications that the Licensee is licensed in respect of the Licensed Technology
and that he or she has received or may receive income from exploitation of the Licensed
Technology.

	 	 	 	If a disclosure described in this clause 3.6(b)(i) or (ii) includes Confidential
Information, CE and the academic disclosing will be deemed to have permission to
make such disclosure.

	3.7	 	Return of information and survival of confidentiality obligations

	 	(a)	 	The Recipient Party must return to the Disclosing Party all documents

Copyright © 2003-8 University of Cambridge

Page 11 of 31

 

	 	 	 	or other materials containing or referring to Confidential Information (other than
the Know-how) which are in its possession, power or control or in the possession,
power or control of persons who have received Confidential Information from it
under clause 3.3(a), (b) or (c) at any time if requested to do so by the
Disclosing Party.

	 	(b)	 	The provisions of clauses 3.2 to 3.7 inclusive will survive the expiry or
earlier termination (for whatever reason) of this Agreement for a period of five years
for Know How and three years for other Confidential Information beginning on the date
of last disclosure of the information.

	4	 	Payments
	 
	4.1	 	Non-monetary and inadequate consideration
	 
	 	 	The Licensee shall not accept and shall ensure that Sub Licensees do not accept, without
the prior written consent of CE, any indirect or non-monetary consideration for any
Licensed Product. The Licensee acknowledges that CE has granted the rights in clause 2.1
in consideration of the Licensee paying CE a share of the income the Licensee receives from
any exploitation of those rights. The Licensee shall act in good faith towards CE in its
commercial exploitation of the Licensed Technology. For the avoidance of doubt it is
agreed that the Licensee has no licence to provide Licensed Products free or for inadequate
consideration, including in order to avoid the obligation to pay CE a return under this
Agreement or to derive any monetary or non-monetary receipt or benefit through other
activity for itself, any party associated with it, any business partner, or (as defined in
the Companies Act 2006) any subsidiary or holding company of the Licensee or subsidiary of
any such holding company.
	 
	4.2	 	Royalties on all Net Sales of a Licensed Product by Psynova Neurotech and any Sub-Licensees
	 
	 	 	Psynova Neurotech and any Sub-Licensee shall pay CE a royalty for each Licensed Product or
part of one at the following rates:

	 	(a)	 	on Psynova Neurotech sales: [***]% of the Net Sales Value invoiced by
Psynova Neurotech; and
	 
	 	(b)	 	on Sub-Licensee sales: [***]% of the Net Sales Value invoiced by a
Sub-Licensee.

If a Licensed Product would, but for the existence of suitable licences, infringe n patents and/or
know-how licences from CE to Psynova then the total royalty due to CE (“TCER”) = 2 + (n-1)/2

If a Licensed Product would, but for the existence of suitable licences, infringe y patents and/or
know-how licences from a third party to Psynova then the royalty due to CE = TCER x n/(n+y)

The minimum TCER shall be [***]%.

 Copyright © 2003-8 University of Cambridge

Page 12 of 31

 

	4.3	 	Milestone payments
	 
	 	 	The Licensee shall pay CE the milestone payment(s) set out in the table below in respect of
each Licensed Product when the relevant milestone is achieved.

	 	 	 	 	 
	Milestone	 	Payment
	First national phase filing of the Patent
	 	£	[***]	 
	 

	Incorporation into a clinical product
	 	£	[***]	 
	 

	Licensed Product reaching regulatory approval
	 	£	[***]	 

	 	 	The milestone payment of £[***] due to CE upon entering into the first National Phase
filing of the patent application that is part of the option terms will remain.
	 
	4.4	 	Other Income (other than Royalties)

	 	(a)	 	The Licensee shall pay to CE:

	 	(i)	 	[***]% of all upfront fees received as Other Income
	 
	 	(ii)	 	[***]% of milestone payments received as Other Income
	 
	 	(iii)	 	[***]% of any Other Income not included in sub-clauses
4.4(a)(i) or 4.4(a)(ii);
	 
	 	(iv)	 	a milestone of £[***] for each sub-licence contract
with the exception of any sub-licence granted to RBM

	 	(b)	 	The Licensee shall not arrange to receive Other Income rather than Royalties
where this has the effect of reducing the total sum payable to CE by way of Royalty
and Other Income.
	 
	 	(c)	 	The Licensee shall also pay CE the percentage payments specified in clause
4.4(a) on any difference between Other Income received and that which would have been
received had the transaction been an arm’s length transaction with an independent
third party exclusively for money.
	 
	 	(d)	 	Other Income shall not be due on development services to the extent that such
payments represent a market rate payment for such activities and provided that
separate payment is received for any use of or access to the Licensed Technology.

	4.5	 	Payment terms and price index

	 	(a)	 	Payments shall be made in accordance with Schedule 3 Part A.

Copyright © 2003-8 University of Cambridge

Page 13 of 31

 

	 	(b)	 	The Licensee shall be responsible for collecting and paying to CE all
payments due to CE in respect of sub-licensing, including Royalties.
	 
	 	(c)	 	All consideration and any other monies due under this Agreement are exclusive
of Value Added Tax which where applicable shall be paid by the Licensee to CE. All
payments shall:

	 	(i)	 	be made in pounds sterling by telegraphic transfer to
the account of Cambridge Enterprise Ltd at Barclays Bank of Bene’t Street,
Business Centre, PO Box No 2, Cambridge CB2 3PZ, sort code: 201719, account
number 90532215;
	 
	 	(ii)	 	in the event of a change in the national currency of
the United Kingdom, be converted from pounds sterling into the new national
currency of the United Kingdom at the buying rate of such new currency as
quoted by Barclays Bank plc in London on the day when such currency change
comes into force;
	 
	 	(iii)	 	in the case of monies received by the Licensee from
sales or sub-licensing in a currency other than pounds sterling, be
calculated in the other currency and then converted into the national
currency of the United Kingdom at the buying rate of such other currency as
quoted by Barclays Bank plc in London as at the close of business on the
last business day of the Payment Period with respect to which the payment
is made;
	 
	 	(iv)	 	be made by the due date, failing which CE may charge
reasonable debt recovery costs together with interest on any outstanding
amount on a daily basis, compounded quarterly, from the day after the due
date until payment at the statutory rate in force on the due date under the
Late Payment of Commercial Debts (Interest) Act 1998; and
	 
	 	(v)	 	be made in full without deduction of taxes, charges or
duties, including bank charges or income tax.

	 	(d)	 	The payments due under clauses 4.3 and 4.4 shall be adjusted on each
Anniversary by the percentage change if any between RPI published in the month
immediately preceding such anniversary and the month immediately preceding the
Commencement Date. RPI means the Retail Prices Index published monthly by the U.K.
Office for National Statistics or such other index as may be published in
substitution.

	4.6	 	Reimbursement of patent costs
	 
	 	 	The Licensee shall be responsible for paying any outstanding external receipted costs in
connection with obtaining patent protection prior to the Commencement Date and any ongoing
patent costs from the Commencement Date.
	 
	4.7	 	Financial reports

Copyright © 2003-8 University of Cambridge

Page 14 of 31

 

	 	(a)	 	Each payment shall be accompanied by a financial report in the form set out
in Schedule 3 Part B. Such reports shall include details of payments due in respect
of sub-licensing.
	 
	 	(b)	 	The Licensee shall report to CE the date of first sale of a Licensed Product
within 60 days of occurrence.

	4.8	 	Records

	 	(a)	 	The Licensee shall keep at its normal place of business and cause
Sub-Licensees to keep all information used to calculate payments due to CE under this
Agreement including detailed and up to date records and accounts showing the quantity,
description and value of Licensed Products sold by it and Sub-Licensees, on a country
by country basis. The Licensee shall keep these records separate or otherwise make
them extractable easily from its other business records and shall not dispose of them
until after the sixth anniversary of their creation.
	 
	 	(b)	 	The Licensee shall make such information available, on reasonable notice, for
audit during business hours by a CE’s duly authorised representative for the purpose
of verifying the accuracy of any report given by the Licensee to CE under this clause
4. The representative shall be required to keep confidential all information learnt
during any such inspection, and to disclose to CE only such details as may be
necessary to report on the accuracy of the Licensee’s financial reports. CE shall be
responsible for the representative’s professional charges unless the representative
certifies that there is an inaccuracy of more than 5% in any financial statement, in
which case the Licensee shall pay his charges in respect of that inspection. The
Licensee shall pay any underpayment reported by the representative within 30 days of
receipt of a CE’s invoice requiring payment for the same.
	 
	 	(c)	 	The Licensee shall ensure that CE has the same rights as those set out in
this clause 4.8 in any sub-licence of the Licensed Technology granted pursuant to this
Agreement.

	5	 	Commercialisation obligations and reports
	 
	5.1	 	Commercialisation
	 
	 	 	The Licensee shall proceed diligently to develop and commercially exploit the Licensed
Technology. The Licensee shall commit the necessary funding and personnel in order to
maximise the return for both parties. The Licensee shall use reasonable endeavours to
comply with project dates and activities contemplated in the commercialisation report
submitted in accordance with clause 5.2.
	 
	5.2	 	Commercialisation Report
	 
	 	 	Without prejudice to the generality of the Licensee’s obligations under clause

Copyright © 2003-8 University of Cambridge

Page 15 of 31

 

	 	 	5.1, the Licensee shall send CE within 30 days of each Anniversary an updated, written
commercialisation report, covering as a minimum the 12 months preceding the Anniversary and
the 12 months following it. The report shall include:

	 	(a)	 	the projected and actual dates of first sale of a Licensed Product;
	 
	 	(b)	 	Planned Sales during the period covered by the report;
	 
	 	(c)	 	milestone progression (dates for projected and achieved milestones);
	 
	 	(d)	 	sub-licences granted during the period covered by the report;
	 
	 	(e)	 	all past, current and projected activities taken or to be taken by the
Licensee to bring Licensed Products to market and maximise the sale of Licensed
Products in the Territory; and
	 
	 	(f)	 	any Other Income invoiced or received during the period covered by the
report.

	 	 	CE’s receipt or approval of any such report shall not be taken to waive or qualify the
Licensee’s obligations under clause 5.1.
	 
	5.3	 	Independent Expert — Reference
	 
	 	 	If CE considers at any time during the Term that the Licensee has without legitimate reason
failed to proceed diligently to develop and commercially exploit the Licensed Technology,
CE shall be entitled to refer to an independent expert the following questions:

	 	(a)	 	whether the Licensee has acted diligently; and if not
	 
	 	(b)	 	what specific action the Licensee should have taken (“Specific Action”) in
order to have acted diligently.

	5.4	 	Independent Expert – appointment and decision
	 
	 	 	The independent expert shall be appointed in accordance with the provisions of Schedule 2
and his decision shall be final and binding on the Parties.
	 
	5.5	 	CE’s right to terminate
	 
	 	 	If the expert determines that the Licensee has failed to comply with its obligations under
this clause 5, and if the Licensee fails to take the Specific Action within 3 months of the
expert giving his decision in accordance with Schedule 2, CE shall be entitled, by giving,
at any time within 3 months after the end of that 3 month period, not less than 21 days’
notice to terminate this Agreement and the licences granted to the Licensee under clause 2.
	 
	5.6	 	Sub-licensing of undeveloped applications
	 
	 	 	If CE becomes aware (or if a third party becomes aware and notifies CE) that any of the
Patents are useful for an application covered by the Field but for

Copyright © 2003-8 University of Cambridge

Page 16 of 31

 

	 	 	which Licensed Products have not been developed or are not currently under development by
the Licensee, then the CE may give written notice to the Licensee. Within ninety (90) days
following the Licensee’s receipt of CE’s notification the Licensee shall give CE written
notice stating whether the Licensee elects to develop Licensed Products for the
application. If the Licensee elects to develop and commercialise the proposed Licensed
Products for the new application, the Licensee shall submit a progress report describing
Licensee’s commercialisation efforts in developing the new application as part of the
commercialisation report required by clause 5.2. If the Licensee does not so elect, then
CE may at its discretion

	 	(a)	 	direct the Licensee (subject to appropriate due diligence) to grant or
	 
	 	(b)	 	itself grant

	 	 	a licence in a specific sub-field of the Field and such a sub-field will be removed from
the Field. CE shall give the Licensee an opportunity to comment on these options and will
consider these comments before making its decision. CE’s sub-licensee will be required to
reimburse the Licensee for such portion of the patent cost reimbursement fee paid to CE on
the Commencement Date as may be reasonable in the circumstances.

	6	 	Intellectual property
	 
	6.1	 	Patent protection
	 
	 	 	The Licensee shall at its own cost and expense:

	 	(a)	 	endeavour to obtain valid patents in the name of CE pursuant to each patent
application listed in Schedule 1 so as to secure the broadest monopoly reasonably
available including the filing of divisional applications where appropriate; and
	 
	 	(b)	 	pay all renewal fees in respect of the Patents as and when due; and
	 
	 	(c)	 	ensure that CE receives copies of all correspondence concerning each patent
application listed in Schedule 1

	 	 	provided that if the Licensee wishes to abandon any such application or not to maintain any
such Patent in the whole of any part of the Territory (or to cease funding such application
or Patent) it shall give 3 months’ prior written notice to CE and on the expiry of such
notice period unless CE notifies the Licensee otherwise the Licensee shall cease to be
licensed for the whole or part of the Territory under the patent application or patent
identified in the notice.
	 
	6.2	 	Infringement of the Patents

	 	(a)	 	Each Party shall inform the other Party promptly if it becomes aware of any
infringement or potential infringement of any of the Patents in the Field.
	 
	 	(b)	 	Subject to clause 6.2(c), the Licensee shall be entitled to take legal or

Copyright © 2003-8 University of Cambridge

Page 17 of 31

 

	 	 	 	other action against any third party to enforce the Patents at its sole expense. If
the alleged infringement is both within and outside the Field, the Parties shall
also co-operate with CE’s other licensees (if any) in relation to any such action.
	 	 	 	If required by law CE shall agree to be joined in any such legal action (and may
elect to take part in the proceedings) subject to being indemnified and secured in a
reasonable manner as to any costs, damages, expenses or other liability and having
the right to be separately represented by its own counsel at its own expense.
	 
	 	(c)	 	Before starting legal action in accordance with sub-clause 6.2(b) or agreeing
to any settlement, the Licensee shall consult CE and take its views into account about
the advisability of the action or settlement, its effect on the University and CE’s
reputation and good name, the effect on any other CE licensees of any of the Licensed
Technology, the public interest and how the action should be conducted. Any monetary
recovery from any legal or other action shall be dealt with as follows: Each Party
shall be reimbursed any expenses reasonably incurred in securing the sums recovered.
Except where the Licensee is permitted to sub-license when the balance shall be deemed
to be Other Income, CE shall receive 25% of the balance. Clause 2.3 specifies the
extent to which the Licensee may grant a sub-licence to an infringer.
	 
	 	(d)	 	In the event that the Licensee is unsuccessful in persuading the alleged infringer to
desist or fails to have initiated an infringement action within six months of the Licensee
first becoming aware of the basis for such action, CE shall have the right, at its sole
discretion, to prosecute such infringement under its sole control and its sole expense,
and any recovery obtained shall belong to CE.

	6.3	 	Infringement of third party rights

	 	(a)	 	If any warning letter or other notice of infringement is received by a Party,
or legal action is brought against a Party, alleging infringement of third party
rights in the manufacture, use or sale of any Licensed Product or use of any Patents,
that Party shall promptly provide full details to the other Party, and the Parties
shall discuss the best way to respond.
	 
	 	(b)	 	The Licensee shall have the right but not the obligation to defend such
action and shall have the right to settle with such third party, provided that if any
action or proposed settlement involves the making of any statement, express or
implied, concerning the validity of any Patent, the consent of CE must be obtained
before taking such action or making such settlement.

	7	 	Warranties and liability
	 
	7.1	 	Status of Licensed Technology and responsibility for development of Licensed Products
	 
	 	 	The Licensee acknowledges that the Licensed Technology is at an early stage

Copyright © 2003-8 University of Cambridge

Page 18 of 31

 

	 	 	of development, that it is provided “as is” and specific results cannot be guaranteed. The
Licensee shall be exclusively responsible for the technical and commercial development and
manufacture of Licensed Products and for incorporating any modifications or developments
thereto that may be necessary or desirable and for all Licensed Products sold or supplied.

	7.2	 	No representations or warranties

	 	(a)	 	The Licensee acknowledges that CE has not performed any searches or
investigations into the existence of any third party rights, which may affect any of
the Licensed Technology and that in entering into this Agreement it does not do so in
reliance on (and shall have no remedy in respect of) any representation, warranty or
other provision, except as expressly provided in this Clause, in which case any remedy
shall be limited to an action for breach of contract under the terms of this
Agreement.
	 
	 	(b)	 	CE warrants that the University and the Inventors have assigned to CE all
their intellectual property rights in the Patents.
	 
	 	(c)	 	Except as provided by Clause 7.2(b) CE makes no representations or warranties
of any kind, express or implied, concerning the Licensed Technology including (i) as
to the satisfactory quality or fitness for a particular purpose (ii) as to the absence
of latent or other defects, whether or not discoverable (iii) as to the validity or
scope of the Patents or (iv) that the exploitation of the Licensed Technology or any
Licensed Product will not infringe any patents or other intellectual property rights
of a third party and all conditions, warranties or other terms implied by statute or
common law are excluded from this Agreement to the fullest extent permitted by law.

	7.3	 	Liability and indemnity

	 	(a)	 	The limitations and exclusions in this Agreement shall not apply in respect
of claims for personal injury or death caused by negligence of CE, the University, the
University’s employees or students, the Inventors or the Principal Investigator or in
respect of fraud or fraudulent misrepresentation.
	 
	 	(b)	 	In respect of any damages or expenses of whatsoever nature and howsoever
arising (including in contract, tort, negligence or for breach of statutory duty or
misrepresentation) in connection with any use of the Licensed Technology or the
manufacture, use or sale of or any other dealing in the Licensed Products or otherwise
in connection with this Agreement or any relationships established by it:

	 	(i)	 	the aggregate liability of CE, the University, the
University’s employees and students, the Inventors and the Principal
Investigator shall be limited to the total income which CE has received
from the Licensee (less any expenses which CE has incurred in obtaining,
maintaining or defending the Patents) during the six years, preceding the
year of the Term in which

Copyright © 2003-8 University of Cambridge

Page 19 of 31

 

	 	 	 	the liability arises or £10,000 whichever shall be the higher; and

	 	(ii)	 	in no circumstances shall CE, the University, the
University’s employees or students, the Inventors or the Principal
Investigator be liable for any indirect, incidental or consequential
damages including any loss of profits, revenue, business opportunity or
goodwill.

	 	(c)	 	The Licensee shall indemnify CE, the University, the University’s employees
and students and the Inventors and Principal Investigator up to £1,000,000 against all
direct, indirect, incidental, consequential or special liability, loss, damages or
expenses, including legal and other professional fees and expenses, howsoever arising
(including in contract, tort, negligence or for breach of statutory duty or
misrepresentation) from or in connection with any claim or threatened claim by any
third party relating to or arising from the use by the Licensee or any Sub-Licensee of
the Licensed Technology or otherwise in connection with the manufacture, use or sale
of or any other dealing in any of the Licensed Products by the Licensee or any
Sub-Licensee. Nothing in this sub-clause shall prevent the Licensee recovering from
CE, subject to the exclusions and limitations set out this Agreement, damages due to
the Licensee for default by CE of any of its obligations under this Agreement.

	8	 	Duration and termination
	 
	8.1	 	Commencement and termination by expiry
	 
	 	 	This Agreement, and the licences granted hereunder, shall come into effect on the
Commencement Date and, unless terminated earlier in accordance with this clause 8, shall
continue in force on a country by country basis until the date on which all the Patents
have expired or been revoked without a right of further appeal.
	 
	8.2	 	Early termination by the Licensee
	 
	 	 	The Licensee may terminate this Agreement at any time on 90 days’ notice in writing to CE.
	 
	8.3	 	Early termination by CE
	 
	 	 	CE may terminate this Agreement

	 	(a)	 	forthwith by giving written notice to the Licensee if the Licensee or any
Sub-Licensee commence(s) legal proceedings, or assist(s) any third party to commence
legal proceedings, to challenge the validity or ownership of any of the Patents; and
	 
	 	(b)	 	as provided in clause 5.

	8.4	 	Early termination by either party

Copyright © 2003-8 University of Cambridge

Page 20 of 31

 

	 	 	Without prejudice to any other right or remedy, either Party may by written notice to the
other Party terminate this Agreement at any 

time if

	 	(a)	 	the other Party has materially breached this Agreement (and for the avoidance
of doubt non-payment by the Licensee under clause 4 shall be deemed a material breach)
and, in case of a remediable breach other than a persistent breach, has failed to
remedy that breach within thirty days of the date of service of a written notice from
the other Party specifying the breach and requiring that it be remedied; or
	 
	 	(b)	 	the other Party ceases to carry on business, is unable to pay its debts when
they fall due, is declared bankrupt, or an order is made or a resolution passed for
the winding up of that other Party or the appointment of an administrator, receiver,
liquidator or manager of that other Party.

	8.5	 	Consequences of termination

	 	(a)	 	Upon termination of this Agreement by expiry under clause 8.1 above, the
licence of the Patents in clause 2.1(a) shall terminate.
	 
	 	(b)	 	Upon termination of this Agreement for any reason otherwise than in
accordance with clause 8.1:

	 	(i)	 	the Licensee and its Sub-Licensees shall be entitled to
sell, use or otherwise dispose of (subject to payment of royalties under
clause 4.2) any unsold or unused stocks of the Licensed Products for a
period of 6 months following the date of termination;
	 
	 	(ii)	 	subject to paragraph (i) above, the Licensee shall no
longer be licensed to use or otherwise exploit in any way, either directly
or indirectly, the Patents or the Know-how, in so far and for as long as
any of the Patents remains in force;
	 
	 	(iii)	 	subject to paragraph (i) above, the Licensee shall
consent to the cancellation of any formal licence granted to it, or of any
registration of it in any register, in relation to any of the Patents;
	 
	 	(iv)	 	each Party shall return to the other (or destroy at the
other’s request) all Confidential Information disclosed to it by the other
and all materials containing any Confidential Information in its possession
or control (including, in the case of the Licensee, in the possession or
control of its Sub-Licensees); and
	 
	 	(v)	 	upon CE’s request, the Parties shall negotiate in good
faith the terms of an agreement between them on reasonable commercial terms
to enable CE to arrange for the further exploitation of the Licensed
Technology and Licensed Products as they exist at the date of termination
including to provide CE with all improvements, information, know-how and
results created or

Copyright © 2003-8 University of Cambridge

Page 21 of 31

 

	 	 	 	developed by the Licensee or its Sub-Licensees.

	 	(c)	 	If the Parties are unable to agree the terms of an agreement as described in
clause 8.5(b)(v) CE may initiate the procedure in 

clause 9.
	 
	 	(d)	 	The expiry or termination of this Agreement does not affect any rights or
obligations of either Party which have arisen or accrued up to and including the date
of expiry or termination including the right to payment under this Agreement.
	 
	 	(e)	 	Clauses 2.3(d), 2.4, 3.2 to 3.7, 4 (in respect of payments due on or before
termination or under clause 8.5(b)(i)), 7, 8.5, 9 and 10 survive expiry or termination
(for whatever reason).

	9	 	Dispute resolution
	 
	 	 	The Parties agree that should any dispute arise between them in relation to this Agreement
(other than under clause 5), they shall meet as soon as practicable and negotiate in good
faith with a view to resolving the dispute.
	 
	 	 	If the Parties are unable to settle any dispute by negotiation within 28 days the Parties
will attempt to settle it by mediation in accordance with the Centre for Effective Dispute
Resolution (CEDR) Model Mediation Procedure.
	 
	 	 	To initiate a mediation a party must give notice in writing to the other party, requesting
a mediation in accordance with this clause 9.
	 
	 	 	Nothing in this Clause 9 shall prevent either party from applying for urgent injunctive
relief to restrain any actual or potential breach of this Agreement.
	 
	10	 	General
	 
	10.1	 	Force majeure.

	 	(a)	 	Notwithstanding any other provision of this Agreement, no Party need act if
it is impossible to act due to force majeure, meaning any cause beyond its control
(including war, riot, natural disaster, labour dispute, or law taking effect after the
date of this Agreement). A Party affected by force majeure agrees to notify the other
Party promptly after it determines that it is unable to act.
	 
	 	(b)	 	A Party has no responsibility or liability for any loss or expense suffered
or incurred by the other Party as a result of its not acting for so long as the force
majeure under clause 10.1 continues. However, the non-performing Party agrees to make
reasonable efforts to avoid or remove the circumstances giving rise to the force
majeure and agrees to continue performance under this Agreement promptly when they are
removed.

	10.2	 	Assignment.

	 	(a)	 	Save as provided by clause 10.2(b) and 10.2(c) neither party may assign,
transfer, charge or deal in any other manner with this Agreement nor

Copyright © 2003-8 University of Cambridge

Page 22 of 31

 

	 	 	 	purport to do so without the prior written consent of the other party.

	 	(b)	 	CE may assign the whole or any of its rights and obligations under this
Agreement provided that CE’s assignee shall undertake to be bound by and perform CE’s
obligations under this Agreement. CE shall notify the Licensee of any assignment under
this Agreement.
	 
	 	(c)	 	The Licensee may assign its rights and obligations under this Agreement where
the assignment is connected with the transfer of all or substantially all of the
Licensee’s assets to a single purchaser and provided such purchaser undertakes to CE
to be bound by and perform the obligations of the Licensee under this Agreement and is
capable of performing such obligations. The Licensee shall notify CE of any such
assignment.

	10.3	 	Waiver
	 
	 	 	A provision of this Agreement or any right created under it cannot be waived or varied
except in writing signed by the Parties.
	 
	10.4	 	Invalid clauses
	 
	 	 	If the whole or any part of a provision of this Agreement is void, unenforceable or illegal
in a jurisdiction it is severed for that jurisdiction. The remainder of this Agreement has
full force and effect and the validity or enforceability of that provision in any other
jurisdiction is not affected. This clause has no effect if the severance alters the basic
nature of this Agreement or is contrary to public policy.
	 
	10.5	 	No agency
	 
	 	 	Nothing in this Agreement shall be construed as creating any agency, partnership or other
form of joint enterprise between the Parties and neither Party has the authority to act for
or bind the other Party in any way.
	 
	10.6	 	Notices
	 
	 	 	Any notice to be given under this Agreement shall be in writing and delivered by hand,
prepaid registered post or facsimile to the other Party at the address or fax number set
out below or to such other address or fax number as either Party may specify in writing to
the other.

	 	 	 

	Notices to CE

	 	10 Trumpington Street,
	 
	 	 
	 

	 	Cambridge
	 
	 	 
	 

	 	CB2 1QA.
	 
	 	 
	 

	 	Fax number: +44 (0) 1223 332988.

 Copyright © 2003-8 University of Cambridge

Page 23 of 31

 

	 	 	 

	Notices to the Licensee

	 	Psynova Neurotech Limited
	 
	 	 
	 

	 	St John’s Innovation Centre,
	 
	 	 
	 

	 	Cowley Road,
	 
	 	 
	 

	 	Cambridge
	 
	 	 
	 

	 	CB4 0WS
	 
	 	 
	 

	 	Fax 01223 703146

	 	 	Notices are deemed to have been given:

	 	(a)	 	if delivered by hand, at the time of the delivery unless delivered after 5pm
in the place of receipt or on a non-business day, in which case the notice is deemed
to have been given at 9am the next business day;
	 
	 	(b)	 	if sent by registered post from within the United Kingdom, three business
days after posting (or seven business days if posted from outside the United
Kingdom); and
	 
	 	(c)	 	if sent by facsimile, at the time the facsimile is received shown in the
transmission report as the time that the whole facsimile was sent unless received
after 5pm in the place of receipt or on a non-business day, in which case the notice
is deemed to have been given at 9am the next business day.

	10.7	 	Law and jurisdiction
	 
	 	 	This Agreement and any documents to be entered into pursuant to it shall be governed by and
construed in accordance with English law and each Party irrevocably submits to the
exclusive jurisdiction of the courts of England over any claim or matter arising under or
in connection with this Agreement and the documents entered into pursuant to it except that
a Party may seek an interim injunction as described in Clause 9 in any court of competent
jurisdiction.
	 
	10.8	 	Further action
	 
	 	 	Each Party agrees to execute, acknowledge and deliver such further instruments, and do all
further similar acts, as may be necessary or appropriate to carry out the purposes and
intent of this Agreement.
	 
	10.9	 	Announcements
	 
	 	 	A Party may not make press or other announcements or releases relating to this Agreement or
the transactions the subject of this Agreement without the approval of the other Party to
the form and manner of the announcement or release unless and to the extent that the
announcement or release:

	 	(a)	 	is required to be made by law or by a stock exchange; or

Copyright © 2003-8 University of Cambridge

Page 24 of 31

 

	 	(b)	 	is made in the annual report of CE, the University or one of the
University’s departments.

	10.10	 	Entire agreement
	 
	 	 	This Agreement constitutes the entire agreement and understanding of the Parties and
supersedes all negotiations, understandings or previous agreement between the Parties
relating to the subject matter of this Agreement. Nothing in this Agreement, including
this clause and clause 7.2, shall operate to limit or exclude liability for fraud or
fraudulent misrepresentation.
	 
	10.11	 	Third party rights
	 
	 	 	The University, any University wholly owned subsidiary, the University’s employees or
students, the Inventors and the Principal Investigator may enforce those terms of this
Agreement which expressly confer rights on them, subject to and in accordance with the
Contracts (Rights of Third Parties) Act 1999. Save as aforesaid no term of this Agreement
shall be enforceable under that Act by a person who is not a party to this Agreement, but
this shall not affect any right or remedy of any third party which exists or is available
other than under that Act. Notwithstanding that any term of this Agreement may be or
become enforceable under that Act by a person which is not a party to it, this Agreement
may be amended in any respect, or suspended, cancelled or terminated by agreement in
writing between the Parties, in each case without the consent of such third party.
	 
	10.12	 	Export Control Regulations

	 	(a)	 	“Export Control Regulations” mean any United Nations trade sanctions or EU or
UK legislation or regulation, from time to time in force, which impose arms embargoes
or control the export from the United Kingdom of goods, technology or software,
including weapons of mass destruction and arms, military, paramilitary and security
equipment and dual-use items (items designed for civil use but which can be used for
military purposes) and certain drugs and chemicals.
	 
	 	(b)	 	The Licensee shall ensure that, in using the Licensed Technology and in
selling Licensed Products, it shall not and nor shall its employees or sub-contractors
or any Sub-Licensee directly or indirectly breach or compromise compliance with any
Export Control Regulations.

	10.13	 	Non-use of names and marking of Licensed Products

	 	(a)	 	The Licensee shall not use and shall ensure that Sub-Licensees do not use the
name, any adaptation of the name, any logo, trademark or other device of the
“University of Cambridge”, “Cambridge Enterprise Limited” nor of the Inventors or
Principal Investigator in any advertising, promotional or sales materials without
prior written consent obtained from CE in each case, except that Licensee may state
that it is licensed by CE to use the Licensed Technology and to make and supply the
Licensed Products.

Copyright © 2003-8 University of Cambridge

Page 25 of 31

 

	 	(b)	 	To the extent commercially feasible the Licensee shall mark and cause
Sub-Licensees to mark each patented product with the number of each issued Patent
which applies to it.

	10.14	 	Insurance
	 
	 	 	Without limiting its liability under clause 7.3(c) the Licensee shall take out with a
reputable insurance company and maintain at all times during the Term public and product
liability insurance including against all loss of and damage to property (whether real
personal or intellectual) and injury to persons including death arising out of or in
connection with this Agreement and the Licensee’s and Sub-Licensees’ use of the Licensed
Technology and use, sale of or any other dealing in any of the Licensed Products. Such
insurances may be limited in respect of one claim provided that such limit must be at least
£5 million. Product liability insurance shall continue to be maintained for a further 6
years from the end of the Term.
	 
	10.15	 	Legal Compliance
	 
	 	 	The Licensee shall comply with all statutes, bye laws, regulations, codes of practice,
European and other directives, and other provisions (and any amendment or re-enactment) and
all professional rules and standards to be observed and performed in connection with the
development, manufacture and sale or making available of Licensed Products.

Copyright © 2003-8 University of Cambridge

Page 26 of 31

 

AGREED by the parties through their authorised signatories:-

	 	 	 	 	 

	For and on behalf of

	 	For and on behalf of	 	 
	 
	 	 	 	 
	CAMBRIDGE ENTERPRISE LIMITED

	 	PSYNOVA NEUROTECH LIMITED	 	 
	 
	 	 	 	 
	     /s/ J. M. Grimshaw
 

signed

	 	     /s/ Paul Rodgers
 

signed
	 	 
	 
	 	 	 	 
	     J. M. Grimshaw
 

print name

	 	     Paul Rodgers
 

print name
	 	 
	 
	 	 	 	 
	     Head of Physical Sciences
 

title

	 	     Director
 

title
	 	 
	 
	 	 	 	 
	     17 March 2010 
 

date

	 	     22 March 2010 
 

date
	 	 

Copyright © 2003-8 University of Cambridge

Page 27 of 31

 

Schedule 1

Part A The Patents

	 	 	 

	Title:

	 	Biomarkers
	 
	 	 
	Inventors:

	 	Sabine Bahn and Emanuel Schwarz
	 
	 	 
	Filing Number(s):

	 	GB0922236.5 
	 
	 	 
	Filing Date:

	 	21 December 2009

28

 

Schedule 2

Appointment of Expert

	1	 	Pursuant to clause 5.3, CE may serve notice on the Licensee (“Referral Notice”) that it
wishes to refer to an expert (the “Expert”) the questions set out in clause 5.3.
	 
	2	 	The parties shall agree the identity of a single independent, impartial expert to determine
such questions. In the absence of such agreement within 30 days of the Referral Notice, the
questions shall be referred to an expert appointed by the President of Law Society of England
and Wales.
	 
	3	 	60 days after the giving of a Referral Notice, both parties shall exchange simultaneously
statements of case in no more than 10,000 words, in total, and each side shall simultaneously
send a copy of its statement of case to the Expert.
	 
	4	 	Each party may, within 30 days of the date of exchange of statement of case pursuant to
paragraph 3 above, serve a reply to the other side’s statement of case of not more than 10,000
words. A copy of any such reply shall be simultaneously sent to the Expert.
	 
	5	 	The Expert shall make his decision on the said questions on the basis of written statements
and supporting documentation only and there shall be no oral hearing. The Expert shall issue
his decision in writing within 30 days of the date of service of the last reply pursuant to
paragraph 4 above or, in the absence of receipt of any replies, within 60 days of the date of
exchange pursuant to paragraph 3 above.
	 
	6	 	The Expert’s decision shall be final and binding on the parties.
	 
	7	 	The Expert’s charges shall be borne equally by the parties.

29

 

Schedule 3

Part A: Payment and Report Schedule

	 	 	 	 	 

	Licensee Name:

	 	Psynova Neurotech Limited
	 	CE Case Number: Bah-2351-09 
	 

	Licensee Invoice Address:

	 	St John’s Innovation Centre, Cowley Road,

Cambridge, CB4 0WS	 	 
	Licensed Technology known as:

	 	Biomarkers for schizophrenia and other
	 	Commencement Date:
	

	 	psychotic disorders
	 	22 March 2010 
	 

	Payment Periods: 6 month periods ending on 31st January and
31st July	 	Term: From the
Commencement Date until
expiry

Due date for payment: within 30 days of the end of the month in which the payment date specified in the
right hand column below falls
(Interest is payable if this period is exceeded.) Royalties on invoices sent between the end of the final
Payment Period and termination or expiry of this Agreement shall be due and shall be paid within 30 days
of termination or expiry.

Each payment shall be accompanied by a financial report (as in Part B below). Other types of reports are
also required (see the right hand column below)

	 	 	 
	Event	 	Payment and reports dates
	Reimbursement of patent costs

	 	Payment date - the Commencement Date.
	 

	Royalties including for sub-licensees

	 	Payment date - last day of each Payment Period for
invoices sent during the Payment Period.
Royalty Reports are due annually prior to first sale
of a Licensed Product. Subsequently reports to be
submitted within 30 days of the end of each Payment
Period (nil returns are required) along with any
Royalty payment.
	 

	Other Income

	 	Payment date - date of Licensee’s invoice to the
Sub-Licensee or receipt of payment from Sub-Licensee,
whichever is the earlier.
Report the payment in next Royalty Report.
	 

	Milestone payment

	 	Payment date - date when the milestone is achieved.
	 

	Commercialisation

	 	Report within 30 days of each anniversary of the
Commencement Date.
	 

	First sale of a Licensed Product

	 	Report within 60 days of first sale.

30

 

	Schedule 3 Part B: Financial Report Format LICENCE DETAILS Only those parts of the form
relevant to the payment being made need to be completed. Licensee Name: Psynova Neurotech Limited
CE Case Number: Bah-2351-09 Licensee Invoice Address: St John’s Innovation Centre, Cowley Road,
Cambridge, CB4 0WS Licensed Technology known as: Biomarkers for schizophrenia and other psychotic
disorders Commencement Date: 22 March 2010 Payment Periods: 6 month periods ending on
31st January and 31st July Royalty Report for the 6 month period [ ] to [ ]
Licensee Royalties: Products Royalty Rate Territory No of products *Net Sales Value on number of
products sold £ Royalty Payable Local currency Conversion rate UK currency Pharma Example: 1%
France 100 1000 euros 1 euro is £0.6784 £678.40 £6.78 Diagnostic Other Total Licensee Royalties:
Sub-Licensee Royalties: Products Royalty Rate Territory No of products *Net Sales Value £ Royalty
Payable Local currency Conversion rate UK currency Pharma Diagnostic Other Total Sub-Licensee
Royalties: TOTAL ROYALTIES due with this Royalty Report: * If deductions are made to arrive at Net
Sales Value, please provide copy customer invoices showing that these sums were charged separately.
Under clause 4.3(b) Other Income arising during the Payment Period: Date of Invoice Date of Receipt
Payment Rate Local Currency Conversion Rate £ Payable Nature of the Payment: [ie annual
fee/milestone payment etc}: This payment is subject to RPI (see clause 4.6(c)) £ Payable: For
sub-licence royalties or income:Copy sub-licence enclosed?

31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]