Document:

ex10_15.htm

LETTER OF AGREEMENT

May 11, 2011

Mr. Gerald Commissiong

Chief Operating Officer 

Amarantus Therapeutics, Inc. 

C/O The Parkinson's Institute

675 Almanor Ave.

Sunnyvale, CA 94085

Dear Mr. Commisiong

Thank you for the opportunity to propose a working relationship between Amarantus Therapeutics and Argot Partners. This letter confirms our understanding and authorizes us to work on your behalf.

Objectives

	
·  

	
Ensure that Amarantus' messages address a Wall Street audience, illustrate a clear and present investment rationale for that audience and highlight the Company's advantages over competitors or companies competing for that audience's investment;

	
·  

	
Maximize the impact of upcoming announcements among Wall Street, corporate and broader public audiences by developing a more formalized corporate communications function within the Company; and

	
·  

	
Help the Company and its financial advisors expand its relationships with Wall Street by leveraging Argot Partners' contacts and expertise.

Scope of Services

You are retaining Argot Partners (“Argot”) to provide strategic communications counsel to Amarantus Therapeutics (“Amarantus”).

  

  

  

Duration

This engagement begins May 12, 2011 and will terminate December 31, 2011 unless terminated by either Amarantus or Argot Partners with 30 days prior written notice. The responsibilities of both parties under this agreement shall continue during such notice period.

Professional Fees

We will bill you a monthly fee of $8,000 per month. Argot will receive 40,000 restricted shares of Amarantus Therapeutics, Inc. common stock, deliverable upon signing of the agreement, in consideration for supporting Amarantus' corporate communications efforts. Susan H. Kim, Senior Account Executive, will be your engagement manager and primary point of contact. Argot represents that it is legally permitted to receive the fee described in this paragraph.

Expenses

In addition to our professional fees, we will bill you for reasonable expenses incurred on your behalf. We will charge you a flat 4.0% of our professional fees to cover expenses such as copying, fax, database and telephone charges. In addition, any other third party charges including but not limited to news release disseminations, messengers, press mailings and travel & lodging will be billed at our actual costs; an invoice detailing such expenses incurred will be provided to you.

Invoice / Payment Terms

The terms for all invoices are net 30 days and are due upon receipt. A 1.5% per month finance charge will be assessed for invoices unpaid after 30 days. You also agree to reimburse us for all expenses, including reasonable attorneys' fees, incurred in the collection of any overdue and unpaid invoices. We may, at our discretion, suspend work on your account should any invoice remain unpaid for more than 30 days from the date of invoice.

We encourage you to review each of our invoices as soon as possible after you receive them. Please contact us with any questions regarding our invoices or services as soon as possible after receipt. If we do not hear from you within 60 days after the date of the invoice, we will assume that you have no concerns regarding our work or our invoices. You agree that any objection to the propriety of any charge is waived unless we've received a written objection within 60 days from the date of the invoice containing such charges.

  

  

  

Termination

This Agreement may be terminated by either party after giving 30 days written notice to the other party. During the termination period, any unpaid project fees (calculated on a pro rata basis for the portion of the month elapsed) and expenses shall be due and payable in accordance with the payment terms under this agreement. Unless instructed otherwise by you, we will continue to render Services through the end of the termination period.

Indemnification

It is understood that Argot cannot undertake to verify all the facts supplied to it by Amarantus. Amarantus agrees to indemnify and defend Argot from and against all liabilities, losses, damages or expenses, including reasonable attorney's fees and costs, which Argot may incur as the result of any claim or suit or proceeding brought or threatened against Argot arising out of assertions we may make on your behalf, including assertions about your company, your products or services, or about your competitors and any of their products or services, in any materials we may prepare for you, if assertions are based on information, representations, reports, data or releases supplied to us by Amarantus, or for which you have provided approval to Argot. You shall similarly defend and indemnify us for any claim arising out of the nature or use of your products or services.

Confidentiality

Definition of Confidential Information: "Confidential Information" means any oral, written, graphic or machine-readable information relating to AMARANTUS or its business, including, but not limited to, information regarding the business, research, technical data, products, services, plans for products or services, customers and potential customers, markets and marketing, finances, financial projections, employees (including employee compensation), patents, developments, software, inventions, processes, designs, drawings, engineering, formulae, regulatory information, clinical data and analysis, protocols, cell lines, biological materials, scientific or medical reports, business plans, and agreements with third parties. Notwithstanding the above, Confidential Information shall not include information that Argot can demonstrate by competent written proof:

(i)           is in the public domain at the time it was disclosed or thereafter enters the public domain through no fault of Argot;

(ii)           is already known to or in possession of Argot, without restriction, at the time of disclosure, as demonstrated by Argot's files in existence at the time of disclosure;

(iii)           is legally obtained by Argot from a third party for use or disclosure without restrictions and without breach hereof; or

  

  

  

(iv)           is independently developed by Argot without any use of the Confidential Information, as demonstrated by Argot's files created at the time of such independent development.

Argot's obligation of confidentiality set forth herein shall not restrict Argot from disclosing Confidential Information that is required to be disclosed pursuant to an order or requirement of a court, administrative agency, or other governmental body; provided, however, that Argot shall provide prompt notice of such court order or requirement to Amarantus to enable Amarantus the opportunity to seek a protective order or otherwise prevent or restrict such disclosure.

Nondisclosure of Confidential Information: Argot agrees not to use any Confidential Information that has been disclosed to Argot for its own use or for any purpose other than for the performance of Services for Amarantus. Without Amarantus' expressed written consent, Argot shall not disclose or permit disclosure of any Confidential Information to any third party except to Argot's employees and consultants, who are bound to Argot by confidentiality obligations no less stringent than the confidentiality provisions under this Agreement, on a need to know basis and only to the extent such employees and consultants require Confidential Information for the performance of the Services pursuant to this Agreement. Argot agrees to take all reasonable measures to protect the secrecy of and avoid disclosure or use of Confidential Information in order to prevent it from falling into the public domain or the possession of any third party. Such measures include, but are not limited to, the highest degree of care that Argot utilizes to protect Argot's own confidential information of a similar nature, which shall be no less than reasonable care. Argot further agrees to notify Amarantus in writing of any actual or suspected misuse, misappropriation or disclosure of the Confidential Information, which may come to Argot's attention.

No Duplication; Return of Materials: Except as otherwise permitted by this Agreement, Argot agrees not to copy, duplicate or otherwise reproduce any part of Confidential Information without Amarantus' prior written consent. Any Confidential Information that have been furnished to Argot in connection with this Agreement shall be promptly returned by Argot, accompanied by all copies of such documentation (including all electronic copies and media containing such copies), within five (5) business days after the date of expiration or termination of this Agreement. Notwithstanding the foregoing, Argot shall be entitled to keep one (1) copy of Confidential Information for its legal files or administrative records strictly for the purpose of determining the scope of Argot's obligations under this Agreement.

  

  

  

General Terms

We hope and expect that our relationship will be mutually beneficial and cooperative. However, in the unlikely event that a dispute arises between us, we agree to make a good faith effort to resolve our differences by mediation before a mediator assigned by the American Arbitration Association without first resorting to litigation. However, in the unlikely event that litigation is necessary, the prevailing party shall have its costs including reasonable attorneys' fees, paid by the other party.

The agreement is made in the State of New York and shall be construed and interpreted in accordance with the laws of the State of New York, applicable to contracts made and to be performed entirely therein. This document is a complete and exclusive statement of the terms of this agreement and may not be changed orally but only by writing signed by both parties hereto.

Please acknowledge your agreement by signing this letter and returning a copy to us. We look forward to a long and mutually rewarding relationship.

Sincerely,

Argot Partners, LLC

 

 

/s/ Andrea F. Rabney

By: Andrea F. Rabney, Esq. Senior Partner

Argot Partners

ACCEPTED:

	
/s/ Gerald Commissiong

	
5/24/2011

	
By: Gerald Commissiong

	
Date

	
Amarantus Therapeautics

	  
	
Chief Operating Officerex10_1.htm

Generex Biotechnology Corporation

33 Harbour Square, Suite 202

Toronto, Ontario

Canada M5J 2G2

May 30, 2011

"STRICTLY PRIVATE & CONFIDENTIAL"

Amarantus BioSciences, Inc.

c/o The Parkinson’s Institute

675 Almanor Avenue

Sunnyvale, CA 94085

Attention:              Mr. Gerald E. Commissiong,

Chief Operating Officer

Dear Sirs:

Re:           Intellectual Properties Licensing and Collaboration Arrangements

This letter agreement sets forth our agreement and understanding as to the essential terms of the intellectual property licensing arrangements (collectively, the “Transaction”) between Generex Biotechnology Corporation (“Generex”) and Amarantus BioSciences, Inc. (“Amarantus”).  The parties intend this letter agreement to be binding and enforceable, and that it will inure to the benefit of the parties and their respective successors and assigns.

	
The Transaction Parties

	
1.  

	
Generex.  Generex is a corporation incorporated under the laws of the State of Delaware, USA, the common stock of which is traded on the Over-the-Counter Bulletin Board (the “OTCBB”) under the symbol “GNBT.OB”.

	
2.  

	
Amarantus.  Amarantus is a corporation incorporated under the laws of the State of Delaware, USA, the common stock of which is traded on the OTCBB under the symbol “JKIK.OB” (which symbol may be changed prior to the Closing Date (as that term is hereinafter defined)).

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The Transaction Technologies

	
3.  

	
Generex Technologies.  Generex and its wholly-owned subsidiaries are the sole legal and beneficial owners of certain patented and other intellectual properties in respect of buccal drug delivery technologies (collectively, the “Generex Technologies”).  The patents included in the Generex Technologies are listed in Exhibit “A” annexed hereto.

	
4.  

	
Amarantus Technologies.  Amarantus is the sole legal and beneficial owner of patented and other intellectual properties in respect of (A) Mescencephalic Astrocyte-Derived Neurotrophic Factor (MANF) (AMBH-001) and molecules derived therefrom, and (B) the PhenoGuardTM process for the immortalization of mammalian cells that retain the phenotype of their parent cells (collectively, the “Amarantus Technologies”).  The patents included in the Amarantus Technologies are listed in Exhibit “B” annexed hereto.

	
The Intellectual Properties Licensing & Collaboration Arrangements

	
5.  

	
License.  Generex will grant to Amarantus an exclusive worldwide license (the “License”) for the clinical & regulatory development and commercialization of the Generex Technologies in connection with any and all therapeutic applications of the Amarantus Technologies; provided that the License will not apply to the Diabetes Field (as that term is hereinafter defined) (the “License Field”).

	
6.  

	
Amarantus License Obligations.  In connection with the License, Amarantus will, in its sole discretion and at its sole expense, design, develop, implement, and diligently prosecute clinical & regulatory programs for United States Food and Drug Administration (FDA) approval (and approvals from equivalent foreign governmental agencies) for the commercial sale (“Approvals”) of products utilizing the Generex Technologies in the License Field (“Products”).

	
7.  

	
Generex License Obligations.  In connection with FDA applications by Amarantus for Approvals, Generex will, at its sole expense, provide commercially reasonable assistance to Amarantus in respect of:  the design, review and refinement of non-clinical and clinical trial protocols and quality studies; and, review and refinement of FDA applications for Approvals.

	
8.  

	
Ownership of Intellectual Property (License).  In the event of any improvements to, or derivatives of, the Generex Technologies are achieved pursuant to or under the auspices of the License, any and all such improvements or derivates will be the sole and exclusive property of Generex and will be included as Generex Technologies under the License (for no additional consideration).

 

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9.  

	
Research & Development Collaboration.  Generex and Amarantus will design, implement, and diligently pursue a collaboration (the “Collaboration”) for the research and development of the Amarantus Technologies for indications and therapeutics (“Indications”) in respect of diabetes mellitus, including glyco-metabolic and lipo-metabolic dysfunction and other medical complications attributable to diabetes mellitus (collectively, the “Diabetes Field”).  The Indications will include, but will not be limited to, the following indications:  diagnostics for beta-cell dysfunction; diabetes mellitus biomarkers; kidney disease attributable to diabetes mellitus; neuropathy attributable to diabetes mellitus; and, beta-cell islet transplantation, preservation, and regeneration.

	
10.  

	
Collaboration Programs.  The specific Indications to be pursued in the Collaboration will be chosen by Generex in its sole discretion, but with consultation with Amarantus.  Non-clinical, clinical, quality, and regulatory Collaboration programs for Indications, including, without limitation, non-clinical and clinical trial protocols, will be designed jointly by Generex and Amarantus.

	
11.  

	
Amarantus Collaboration Obligations.  In connection with the Collaboration, Amarantus will, at its sole expense: allow and make available the Amarantus Technologies for unrestricted use in the Collaboration, including, without limitation, any and all know-how and data; and, provide commercially reasonable assistance to Generex in respect of (a) the design, review and refinement of non-clinical, clinical, quality, and regulatory programs for Indications, including, without limitation, clinical trial protocols, and (b) review and refinement of FDA submissions.

	
12.  

	
Generex Collaboration Obligations.  Generex will fund direct expenditures incurred in respect of the Collaboration in accordance with the Budget (as that term is hereinafter defined) to a maximum aggregate amount of Five Million United States Dollars (US$5,000,000) over the course of a period of three (3) years following the Closing Date in accordance with a budget to be jointly agreed upon by Generex and Amarantus on or before the Closing Date (the “Budget”).  Generex and Amarantus will work jointly to establish the Budget, timelines, and Collaboration protocols prior to the Closing Date.  Generex will provide the initial funding called for by the Budget within thirty (30) days of the Closing Date.

	
13.  

	
Collaboration Commercialization Option.  Generex will have options (each a “Collaboration Option”) to acquire exclusive or non-exclusive Indication commercialization licenses for the Amarantus Technologies in the Diabetes Field (“Collaboration Licenses”) from Amarantus for up to three (3) Indications funded by Generex pursuant to the Collaboration in consideration of the payment of commercially reasonable consideration.  The terms of any Collaboration Licenses will be commercially reasonable and fairly reflect the nature of the Indication, the relative contributions of the parties to the Indication, the risks incurred by Generex in respect of the Indication, the costs required to commercialize the Indication, and the anticipated benefits to be gained from the particular Collaboration License.  A Collaboration Option must be exercised within six (6) months following the filing of a patent or other intellectual property protection application in respect of the Indication.  Exercise of a Collaboration Option will initiate a good faith negotiation period that expires six (6) months after the exercise of the Collaboration Option.

 

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14.  

	
Ownership of Intellectual Property (Collaboration).   In the event of any improvements to, or derivatives of, the Generex Technologies are achieved pursuant to or under the auspices of the Collaboration, any and all such improvements or derivatives will be the sole and exclusive property of Generex (subject to the License).  In the event of any improvements to, or derivatives of, the Amarantus Technologies are achieved pursuant to or under the auspices of the Collaboration, any and all such improvements or derivatives will be the sole and exclusive property of Amarantus (subject to any Collaboration Licenses).  Subject to the foregoing, any discovery, development, invention (whether patentable or not), improvement, work of authorship, formula, process, composition of matter, formulation, method of use or delivery, specification, computer program or model and related documentation, know-how or trade secret, that is conceived and/or made pursuant to or under the auspices of the Collaboration will be owned jointly by Generex and Amarantus (“Joint Intellectual Property”).  Provided that in no event will the following be Joint Intellectual Property:  intellectual properties related solely to the immortalization processes included in the Amarantus Technologies (referred to as “PhenoGuard”) to the extent that the same does not include any Generex Technologies.

	
15.  

	
Joint Intellectual Property Commercialization License Options (“JIP Options”).  Amarantus will have a JIP Option to acquire an exclusive or non-exclusive commercialization license from Generex for any Joint Intellectual Property that is not the subject of any Collaboration Licenses in consideration of the payment of commercially reasonable consideration.  Generex will have a JIP Option to acquire an exclusive or non-exclusive  commercialization license from Amarantus for any Joint Intellectual Property that is not the subject of any Collaboration Licenses in consideration of the payment of commercially reasonable consideration.  Provided that, in the event that Generex has acquired Collaboration Licenses for three (3) Indications, Amarantus will have a right of first refusal in respect of the exercise thereafter by Generex of any JIP Option   The terms of any such JIP Option licenses will be commercially reasonable and fairly reflect the nature of Joint Intellectual Property being licensed, the relative contributions of the parties to such Joint Intellectual Property, the relative risks incurred by the parties in respect of such Joint Intellectual Property, the costs required to commercialize such Joint Intellectual Property, and the anticipated benefits to be gained from the particular JIP Option license.  Any JIP Option must be exercised within six (6) months following the filing of a patent or other intellectual property protection application in respect of the relevant Joint Intellectual Property.  Exercise of a JIP Option will initiate a good faith negotiation period that expires six (6) months after the exercise of the JIP Option.

 

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License Fees, Milestone Payments, & Royalties Payments

	
16.  

	
License Fee.  Amarantus will pay to Generex an up-front non-refundable license fee in respect of the License of Ten Million United States Dollars (US$10,000,000) (the “License Fee”).

	
17.  

	
Amarantus Stock.  Subject to the strictures and requirements set forth in paragraph 18 hereof, the License Fee will be satisfied in whole, or in part, as the case may be, by the issuance by Amarantus to Generex of shares of Amarantus common stock (the “Amarantus Stock Consideration”).  Subject to the strictures set forth in paragraph 18 hereof, the number of shares of Amarantus common stock comprising the Amarantus Stock Consideration will be equal to the number of shares of Amarantus common stock determined by dividing 10,000,000 by the average closing price of the Amarantus common stock on the OTCBB (and/or such other exchange on which the Amarantus stock may be traded at the relevant time) for the ten (10) trading days immediately preceding the Closing Date (as that term is hereinafter defined) (adjusted for any forward stock splits, reverse stock splits, or other transactions of similar import) (the “Closing Date Conversion Price”).

	
18.  

	
Amarantus Stock Consideration Cap.  In the event that the number of shares of the Amarantus Stock Consideration exceeds 9.99% of the number of issued and outstanding shares of Amarantus common stock as at the Closing Date: (A) the number of shares issued to Generex by Amarantus on the Closing Date in respect of the Amarantus Stock Consideration will be equal to 9.99% of the number of issued and outstanding shares of Amarantus common stock as at the Closing Date (the “Closing Date Amarantus Stock Consideration”); and (B) on the Closing Date Amarantus will execute and deliver to Generex a promissory note (the “Promissory Note”) evidencing the obligation of Amarantus to pay to Generex that portion of the License Fee not represented by the Amarantus Stock Consideration issued to Generex on the Closing Date.  Provided, however, that if:  (i) the Closing Date Amarantus Stock Consideration constitutes less than Seven Million One Hundred Twenty Five Thousand (7,125,000) shares of Amarantus common stock; or, (ii) the aggregate principal amount of the Promissory Note is greater than Five Million United States Dollars (US$5,000,000), then Generex will be entitled in its sole discretion to terminate this letter agreement on the Closing Date by written notice to Amarantus whereupon Generex and Amarantus will be released from their respective obligations hereunder.  On the Closing Date, Amarantus will deliver to Generex a stock certificate evidencing the aggregate Closing Date Amarantus Stock Consideration registered in the name of Generex; Generex acknowledges that such stock certificate will include standard restrictive legends.

 

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19.  

	
Promissory Note.  The Promissory Note will have a term of three (3) years commencing on the Closing Date and will bear interest at eight percent (8%) per annum, accrued monthly, and calculated and payable on the maturity date.  Amarantus may, upon five (5) business day’s prior written notice (a “Prepayment Notice”) to Generex, prepay all or any portion of the Promissory Note from time to time (any such prepayment to be applied firstly in respect of accrued and unpaid interest) (a “Prepayment”).  Generex may elect, upon written notice to Amarantus within two (2) business days of receipt by Generex of a Prepayment Notice, to take all or any portion of the amount payable by Amarantus pursuant to the Prepayment Notice in shares of Amarantus common stock valued at the Post-Closing Conversion Price (as if the date of the Prepayment was a Conversion Date).

	
20.  

	
Promissory Note Conversion.  At any time, and from time to time, following the eighteen (18) month anniversary of the Closing Date, Generex will be entitled, upon five (5) trading days’ notice to Amarantus, to effect a conversion (a “Conversion”) of all or any portion of the outstanding balance of principal and interest then due under the Promissory Note into shares of Amarantus common stock; provided that:  (a) as at the effective date of any Conversion (the “Conversion Date”), Generex will not, following the Conversion, be the beneficial owner of more than 9.99% of the number of issued and outstanding shares of Amarantus common stock as at the Conversion Date (and Generex will provide to Amarantus a certification of its beneficial ownership of shares of Amarantus common stock in respect of each Conversion); and, (b) the aggregate number of shares of Amarantus common stock issuable pursuant to Conversions in any period of ninety (90) days will not constitute more than 4.99% of the number of issued and outstanding shares of Amarantus common stock as at the Conversion Date.  The number of shares of Amarantus common stock issued in respect of a Conversion will be equal to the number of shares of Amarantus common stock determined by dividing the amount of principal and/or interest being converted in the Conversion by the price determined by the following formula (the “Post-Closing Conversion Price”):  the lesser of (A) an amount equal to four (4) times the Closing Date Conversion Price; and, (B) the greater of:  (x) the Closing Date Conversion Price; and, (y) the price that is equal to eighty percent (80%) of the average closing price of the Amarantus common stock on the OTCBB (and/or such other exchange on which the Amarantus stock may be traded at the relevant time) for the five (5) trading days immediately preceding the Conversion Date.

	
21.  

	
Investment Intent.  Generex confirms that the Closing Date Amarantus Stock Consideration and any shares of Amarantus common stock acquired pursuant to a Conversion or a Prepayment will be acquired by Generex for investment and that Generex will not offer, sell, or otherwise dispose of such securities except pursuant to registration under the Securities Act of 1933, as amended, or pursuant to an available exemption for such registration.

 

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22.  

	
Registration of Amarantus Stock Consideration.  On or before the earlier of:  (a) the date that is six (6) months following the date of this letter agreement; and (b) the date upon which Amarantus files a registration statement in respect of a private placement or public offering of its securities following the date hereof, Amarantus will prepare and file a registration statement (the “Registration Statement”) with the United States Securities and Exchange Commission (SEC) for the registration for public resale of the Amarantus Stock Consideration, including, for greater certainty, any shares of Amarantus common stock issuable pursuant to  Conversion and Prepayment (collectively, the “Registrable Securities”), for public resale (including, without limitation, the issuance by Generex of all or any portion of the Registrable Securities to the Generex stockholders as a stock dividend) and will use its best and reasonable efforts to cause the Registration Statement to become and stay effective of a period of not less than two (2) years.

	
23.  

	
Royalties re Gross Sales.  Amarantus will pay to Generex a cash royalty equal to ten percent (10%) of Amarantus’ gross sales of Products worldwide (“Gross Sales”), such royalty to be calculated and payable quarterly.

	
24.  

	
Milestone Payments re Gross Sales.  Amarantus will pay to Generex cash milestone payments in respect of Gross Sales as follows:

	
a.  

	
Two Million United States Dollars (US$2,000,000), payable within thirty (30) days of the end of the calendar quarter in which Amarantus first realizes an aggregate of Forty Million United States Dollars (US$40,000,000) in Gross Sales;

	
b.  

	
Two Million United States Dollars (US$2,000,000), payable within thirty (30) days of the end of the calendar quarter in which Amarantus first realizes an aggregate of Eighty Million United States Dollars (US$80,000,000) in Gross Sales; and

	
c.  

	
Two Million United States Dollars (US$2,000,000), payable within thirty (30) days of the calendar quarter in which Amarantus first realizes an aggregate of One Hundred Seventy Million United States Dollars (US$170,000,000) in Gross Sales.

	
25.  

	
Royalties re Licensing Pre-Oral-lyn.  In the event that Amarantus enters into any licensing or sub-licensing arrangements (a “Product Licensing Arrangement”) in respect of the commercialization of any Products prior to the date of receipt by Generex of FDA approval of the commercial sale of Generex Oral-lynTM, Generex’s proprietary buccal insulin spray product (“Oral-lyn”), Amarantus will pay to Generex cash royalty payments as follows:

	
a.  

	
for a Product Licensing Arrangement in respect of a Product in respect of which no Phase 1 clinical trial has been completed, an amount equal to two percent (2%) of any and all amounts received by Amarantus in respect of that Product Licensing Arrangement (including, without limitation, license fees, royalties, milestone payments, and any other fees or payments) (“License Income”), payable within thirty (30) days of Amarantus’ receipt thereof;

 

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b.  

	
for a Product Licensing Arrangement in respect of a Product in respect of which a Phase I clinical trial has been completed but no Phase 2b clinical trial has been completed, an amount equal to three percent (3%) of any and all License Income received by Amarantus in respect of that Product Licensing Arrangement, payable within thirty (30) days of Amarantus’ receipt thereof; and

	
c.  

	
for a Product Licensing Arrangement in respect of a Product in respect of which a Phase 2 clinical trial has been completed but no Phase 3 clinical trial has been completed, an amount equal to four percent (4%) of any and all License Income received by Amarantus in respect of that Product Licensing Arrangement, payable within thirty (30) days of Amarantus’ receipt thereof.

	
26.  

	
Royalties re Licenses Post-Oral-lyn.  In the event that Amarantus enters into any Product Licensing Arrangement following the date upon which Generex receives FDA approval for the commercial sale of Oral-lyn, Amarantus will pay to Generex cash royalty payments equal to six percent (6%) of any and all amounts received by Amarantus in respect of any such Product Licensing Arrangement, payable within thirty (30) days of Amarantus’ receipt thereof.

	
27.  

	
Generex Obligations re Product Licensing Arrangements.  Generex will provide all commercially reasonable cooperation to Amarantus in respect of the negotiation and establishment of any Product Licensing Arrangements, including, without limitation: third party confidential due diligence investigations in respect of Generex and the Generex Technologies; and, the execution, delivery, and performance of commercially reasonable sub-licenses in respect of the Generex Technologies.

	
  

	 

	
  

	
General Matters

	
28.  

	
Transaction Documentation.  On the Closing Date, the parties will execute and deliver any and all documentation required to evidence the Transaction.

	
29.  

	
Closing Date.  The Transaction closing date (the “Closing Date”) will be no later than July 15, 2011.

	
30.  

	
Confidentiality.  This letter agreement and the Transaction are subject to the reciprocal confidential disclosure agreement made as of the 25th day of January, 2011 executed and delivered by the parties.

 

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31.  

	
Board Approvals.  Generex represents and warrants to Amarantus that:  the Board of Directors of Generex has approved and authorized the execution, delivery, and performance of this letter agreement by Generex; and, no third party consents are required in respect of the execution, delivery, and performance of this letter agreement by Generex.  Amarantus represents and warrants to Generex that:  the Board of Directors of Amarantus has approved and authorized the execution, delivery, and performance of this letter agreement by Amarantus; and, no third party consents are required in respect of the execution, delivery, and performance of this letter agreement by Amaranus (other than the SEC’s declaration of the effectiveness of the Registration Statement).

	
32.  

	
Public Announcements.  All press releases and other public announcements or filings related to the Transaction will be agreed to and prepared jointly by Generex and Amarantus.  Neither party will issue a public announcement in respect of the Transaction without the prior written consent (which may be effected via email) of the other party.

	
33.  

	
Expenses.  All costs and expenses incurred in respect of this letter agreement and the Transaction, including legal and accounting charges, will be paid by the party which incurs the same.

	
34.  

	
Exclusive Dealing.  Until the Closing Date, neither party will enter into any agreement, discussion, or negotiation with, or provide information to, or solicit, encourage, entertain, or consider any inquiries or proposals from, any other party with respect to any transaction that conflicts with the Transaction.

[signature page follows]

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If you are in agreement with the terms of this letter agreement, please sign in the space provided below and return a scanned signed copy to Mark Fletcher at mfletcher@generex.com by the close of business on May30, 2011.  Upon receipt of a signed copy of this letter, we will proceed to consummate the Transaction in a timely manner.

Yours truly,

Generex Biotechnology Corporation

/s/ Mark A. Fletcher

Name:           Mark A. Fletcher

Title:           President & Chief Executive Officer

/s/ John P. Barratt

Name:           John P. Barratt

Title:           Chairman of the Board

AGREED THIS 30TH DAY OF MAY, 2011.

Amarantus BioSciences, Inc.

/s/ Martin D. Cleary

Name:           Martin D. Cleary

Title:           Chairman & Chief Executive Officer

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EXHIBIT A

 

 

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EXHIBIT B

 

 

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