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EXHIBIT 4.3    
  

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY OTHER SECURITIES LAWS, HAVE BEEN
TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR TRANSFERRED OR OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO
SUCH SECURITIES IS THEN IN EFFECT, OR IN THE OPINION OF COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE ISSUER OF THESE SECURITIES), SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER
APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

	 	Date: January 4, 2001	 	Warrant to Purchase

100,000

Shares

AXONYX, INC.

(Incorporated under the laws of the State of Nevada)

WARRANT FOR THE PURCHASE OF SHARES OF

COMMON STOCK OF AXONYX, INC.

Warrant Price: $7.12 per share, subject to adjustment as provided below.  

    THIS
IS TO CERTIFY that, for value received, Stonegate Securities, Inc., a Texas corporation and its successors and assigns (collectively, the "Holder"), is entitled to
purchase, subject to the terms and conditions hereinafter set forth, up to 100,000 shares of the common stock ("Common Stock"), of Axonyx, Inc., a Nevada corporation (the "Company"), and to
receive certificates for the Common Stock so purchased. 

    1.  Exercise Period and Vesting.  The exercise period is the period beginning on the date of this Warrant
(the "Issuance Date") and ending at 5:00 p.m., Dallas, Texas time, on January 4, 2004 (the "Exercise Period"). This Warrant will terminate automatically and immediately upon the
expiration of the Exercise Period. This Warrant shall vest and become exercisable by the Holder in three separate tranches. Holder's right to purchase: (i) 33,000 shares of Common Stock
hereunder shall vest on January 4, 2001; (ii) 33,000 shares of Common Stock hereunder shall vest on April 1, 2001; and (iii) the remaining 34,000 shares of Common Stock
hereunder shall vest on June 1, 2001; provided, however, that: (a) the non-vested portions of this Warrant shall terminate if Stonegate Securities, Inc. receives
written notification of termination of the Investment Banking Letter Agreement, of even date herewith, by and between the Company and Stonegate Securities, Inc. (the "Investment Banking
Agreement") is terminated on or prior to the date of vesting of such non-vested portion of this Warrant; and (b) the non-vested portions of this Warrant shall
immediately vest in full upon the closing of any offering of securities of the Company for which Stonegate Securities, Inc. is entitled to receive an Agency Fee under that certain Placement
Agency Agreement, of even date herewith, by and between the Company and Stonegate Securities, Inc. (the "Placement Agency Agreement"), whichever occurs first. 

    2.  Exercise of Warrant; Cashless Exercise.  Subject to the vesting provisions of Section 1 above,
this Warrant may be exercised, in whole or in part, at any time and from time to time during the Exercise Period. Such exercise shall be accomplished by tender to the Company of the purchase price set
forth above as the warrant price (the "Warrant Price"), either (a) in cash, by wire transfer or by certified check or bank cashier's check, payable to the order of the Company, or (b) by
surrendering such number of shares of Common Stock received upon exercise of this Warrant with a current market price equal to the Warrant Price (a "Cashless Exercise"), together with presentation and
surrender to the Company of this Warrant with an executed subscription in substantially the form attached hereto as 

 

 Exhibit A (the "Subscription"). Upon receipt of the foregoing, the Company will deliver to the Holder, as promptly as possible, a certificate or certificates
representing the shares of Common Stock so purchased, registered in the name of the Holder or its transferee (as permitted under Section 3 below). With respect to any exercise of this Warrant,
the Holder will for all purposes be deemed to have become the holder of record of the number of shares of Common Stock purchased hereunder on the date this Warrant, a properly executed Subscription
and payment of the Warrant Price is received by the Company (the "Exercise Date"), irrespective of the date of delivery of the certificate evidencing such shares, except that, if the date of such
receipt is a date on which the stock transfer books of the Company are closed, such person will be deemed to have become the holder of such shares at the close of business on the next succeeding date
on which the stock transfer books are open. Fractional shares of Common Stock will not be issued upon the exercise of this Warrant. In lieu of any fractional shares that would have been issued but for
the immediately preceding sentence, the Holder will be entitled to receive cash equal to the current market price of such fraction of a share of Common Stock on the trading day immediately preceding
the Exercise Date. In the event this Warrant is exercised in part, the Company shall issue a new Warrant to the Holder covering the aggregate number of shares of Common Stock as to which this Warrant
remains exercisable. 

    If
the Holder elects to conduct a Cashless Exercise, the Company shall cause to be delivered to the Holder a certificate or certificates representing the number of shares of Common
Stock computed using the following formula: 

	X=Y	(A-B)	 	 	 	 
	 	
	 	 	 	 
	 	A	 	 	 	 
	

Where:	

X	
 	

=	
 	

the number of shares of Common Stock to be issued to Holder;
	 	Y	 	=	 	the portion of the Warrant (in number of shares of Common Stock) being exercised by Holder (at the date of such calculation);
	 	A	 	=	 	the fair market value of one share of Common Stock on the Exercise Date (as calculated below); and
	 	B	 	=	 	Warrant Price (as adjusted to the date of such calculation).

    For
purposes of the foregoing calculation, "fair market value of one share of Common Stock on the Exercise Date" shall mean: (i) if the principal trading market for such
securities is a national or regional securities exchange, the average closing price on such exchange for the ten (10) trading days immediately prior to such Exercise Date; (ii) if sales
prices for shares of Common Stock are reported by the Nasdaq National Market System or Nasdaq Small Cap Market (or a similar system then in use), the average last reported sales price for the ten
(10) trading days immediately prior to such Exercise Date; or (iii) if neither (i) nor (ii) above are applicable, and if bid and ask prices for shares of Common Stock are
reported in the over-the-counter market by Nasdaq (or, if not so reported, by the National Quotation Bureau), the average of the high bid and low ask prices so reported for the
ten (10) trading days immediately prior to such Exercise Date. Notwithstanding the foregoing, if there is no reported closing price, last reported sales price, or bid and ask prices, as the
case may be, for the period in question, then the current market price shall be determined as of the latest ten (10) day period prior to such day for which such closing price, last reported
sales price, or bid and ask prices, as the case may be, are available, unless such securities have not been traded on an exchange or in the over-the-counter market for 30 or
more days immediately prior to the day in question, in which case the current market price shall be determined in good faith by, and reflected in a formal resolution of, the Board of
Directors of the Company. The Company acknowledges and agrees that this Warrant was issued on the Issuance Date. 

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    3.  Transferability and Exchange.  

    (a) This
Warrant, and the Common Stock issuable upon the exercise hereof, may not be sold, transferred, pledged or hypothecated unless the Company shall have been
provided with an opinion of counsel, or other evidence reasonably satisfactory to it, that such transfer is not in violation of the Securities Act, and any applicable state securities laws. Subject to
the satisfaction of the aforesaid condition, this Warrant and the underlying shares of Common Stock shall be transferable from time to time by the Holder upon written notice to the Company. If this
Warrant is transferred, in whole or in part, the Company shall, upon surrender of this Warrant to the Company, deliver to each transferee a Warrant evidencing the rights of such transferee to purchase
the number of shares of Common Stock that such transferee is entitled to purchase pursuant to such transfer. The Company may place a legend similar to the legend at the top of this Warrant on any
replacement Warrant and on each certificate representing shares issuable upon exercise of this Warrant or any replacement Warrants. Only a registered Holder may enforce the provisions of this Warrant
against the Company. A transferee of the original registered Holder becomes a registered Holder only upon delivery to the Company of the original Warrant and an original Assignment, substantially in
the form set forth in Exhibit B attached hereto. 

    (b) This
Warrant is exchangeable upon its surrender by the Holder to the Company for new Warrants of like tenor and date representing in the aggregate the right to
purchase the number of shares purchasable hereunder, each of such new Warrants to represent the right to purchase such number of shares as may be designated by the Holder at the time of such
surrender. 

    4.  Adjustments to Warrant Price and Number of Shares Subject to Warrant.  The Warrant Price and the
number of shares of Common Stock purchasable upon the exercise of this Warrant are subject to adjustment from time to time upon the occurrence of any of the events specified in this Section 4.
For the purpose of this Section 4, "Common Stock" means shares now or hereafter authorized of any class of common stock of the Company and any other stock of the Company, however designated,
that has the right to participate in any distribution of the assets or earnings of the Company without limit as to per share amount (excluding, and subject to any prior rights of, any class or series
of preferred stock). 

    (a) In
case the Company shall (i) pay a dividend or make a distribution in shares of Common Stock or other securities, (ii) subdivide its outstanding
shares of Common Stock into a greater number of shares,
(iii) combine its outstanding shares of Common Stock into a smaller number of shares, or (iv) issue by reclassification of its shares of Common Stock other securities of the Company,
then the Warrant Price in effect at the time of the record date for such dividend or on the effective date of such subdivision, combination or reclassification, and/or the number and kind of
securities issuable on such date, shall be proportionately adjusted so that the Holder of any Warrant thereafter exercised shall be entitled to receive the aggregate number and kind of shares of
Common Stock (or such other securities other than Common Stock) of the Company, at the same aggregate Warrant Price, that, if such Warrant had been exercised immediately prior to such date, the Holder
would have owned upon such exercise and been entitled to receive by virtue of such dividend, distribution, subdivision, combination or reclassification. Such adjustment shall be made successively
whenever any event listed above shall occur. 

    (b) In
case the Company shall fix a record date for the making of a distribution to all holders of Common Stock (including any such distribution made in connection with
a consolidation or merger in which the Company is the surviving corporation) of cash, evidences of indebtedness or assets, or subscription rights or warrants, the Warrant Price to be in effect after
such record date shall be determined by multiplying the Warrant Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the current market price per share
of Common Stock on such record date, less the amount of cash so to be distributed (or the fair market value 

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(as determined in good faith by, and reflected in a formal resolution of, the Board of Directors of the Company) of the portion of the assets or evidences of indebtedness so to be distributed, or of
such subscription rights or warrants, applicable to one share of Common Stock, and the denominator of which shall be such current market price per share of Common Stock. Such adjustment shall be made
successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Warrant Price shall again be adjusted to be the Warrant Price which would then be in
effect if such record date had not been fixed. 

    (c) For
the purpose of any computation under any subsection of this Section 4, the "current market price" per share of Common Stock on any date shall be the per
share price of the Common Stock on the trading day immediately prior to the event requiring an adjustment hereunder and shall be: (i) if the principal trading market for such securities is a
national or regional securities exchange, the closing price on such exchange on such day; or (ii) if sales prices for shares of Common Stock are reported by the Nasdaq National Market System or
Small Cap Market System (or a similar system then in use), the last reported sales price so reported on such day; or (iii) if neither (i) nor (ii) above are applicable, and if bid
and ask prices for shares of Common Stock are reported in the over-the-counter market by Nasdaq (or, if not so reported, by the National Quotation Bureau), the average of the
high bid and low ask prices so reported on such day. Notwithstanding the foregoing, if there is no reported closing price, last reported sales price, or bid and ask prices, as the case may be, for the
day in question, then the current market price shall be determined as of the latest date prior to such day for which such closing price, last reported sales price, or bid and ask prices, as the case
may be, are available, unless such securities have not been traded on an exchange or in the over-the-counter market for 30 or more days immediately
prior to the day in question, in which case the current market price shall be determined in good faith by, and reflected in a formal resolution of, the Board of Directors of the Company. 

    (d) Notwithstanding
any provision herein to the contrary, no adjustment in the Warrant Price shall be required unless such adjustment would require an increase or
decrease of at least 1% in the Warrant Price; provided, however, that any adjustments which by reason of this subsection (d) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Section 4 shall be made to the nearest cent or the nearest one-hundredth of a share, as the case may be. 

    (e) In
the event that at any time, as a result of an adjustment made pursuant to subsection (a) above, the Holder of any Warrant thereafter exercised shall
become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, thereafter the number of such other shares so receivable upon exercise of any Warrant shall be
subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares of Common Stock contained in this Section 4,
and the other provisions of this Warrant shall apply on like terms to any such other shares. 

    (f)  If
the Company merges or consolidates into or with another corporation or entity, or if another corporation or entity merges into or with the Company (excluding
such a merger in which the Company is the surviving or continuing corporation and which does not result in any reclassification, conversion, exchange, or cancellation of the outstanding shares of
Common Stock), or if all or substantially all of the assets or business of the Company are sold or transferred to another corporation, entity, or person, then, as a condition to such consolidation,
merger, or sale (a "Transaction"), lawful and adequate provision shall be made whereby the Holder shall have the right from and after the Transaction to receive, upon exercise of this Warrant and upon
the terms and conditions specified herein and in lieu of the shares of the Common Stock that would have been issuable if this Warrant had been exercised immediately before the Transaction, such shares 

4

 

of stock, securities, or assets as the Holder would have owned immediately after the Transaction if the Holder had exercised this Warrant immediately before the effective date of the Transaction. 

    (g) In
case any event shall occur as to which the other provisions of this Section 4 are not strictly applicable but the failure to make any adjustment would not
fairly protect the purchase rights represented by this Warrant in accordance with the essential intent and principles hereof, then, in each such case, the Company shall effect such adjustment, on a
basis consistent with the essential intent and principles established in this Section 4, as may be necessary to preserve, without dilution, the purchase rights represented by this Warrant. 

    5.  Registration Rights.  The Holder shall be entitled to the benefits of the registration rights set
forth in Exhibit C attached hereto. 

    6.  Reservation of Shares.  The Company agrees at all times to reserve and hold available out of its
authorized but unissued shares of Common Stock the number of shares of Common Stock issuable upon the full exercise of this Warrant. The Company further covenants and agrees that all shares of Common
Stock that may be delivered upon the exercise of this Warrant will, upon delivery, be fully paid and nonassessable and free from all taxes, liens and charges with respect to the purchase thereof
hereunder, other than those created by the Holder. 

    7.  Notices to Holder.  Upon any adjustment of the Warrant Price (or number of shares of Common Stock
purchasable upon the exercise of this Warrant) pursuant to Section 4, the Company shall promptly thereafter cause to be given to the Holder written notice of such adjustment. Such notice shall
include the Warrant Price (and/or the number of shares of Common Stock purchasable upon the exercise of this Warrant) after such adjustment, and shall set forth in reasonable detail the Company's
method of calculation and the facts upon which such calculations were based. Where appropriate, such notice shall be given in advance and included as a part of any notice required to be given under
the other provisions of this Section 7. 

    In
the event of (a) any fixing by the Company of a record date with respect to the holders of any class of securities of the Company for the purpose of determining which of
such holders are entitled to dividends or other distributions, or any rights to subscribe for, purchase or otherwise acquire any shares of capital stock of any class or any other securities or
property, or to receive any other right, (b) any capital reorganization of the Company, or reclassification or recapitalization of the capital stock of the Company or any transfer of all or
substantially all of the assets or business of the Company to, or consolidation or merger of the Company with or into, any other entity or person, or (c) any voluntary or involuntary
dissolution or winding up of the Company, then and in each such event the Company will give the Holder a written notice specifying, as the case may be (i) the record date for the purpose of
such dividend, distribution, or right, and stating the amount and character of such dividend, distribution, or right; or (ii) the date on which any such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, conveyance, dissolution, liquidation, or winding up is to take place and the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such capital stock or securities receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock securities) for securities or
other property deliverable upon such event. Any such notice shall be given at least 10 days prior to the earliest date therein specified. 

    8.  No Rights as a Stockholder.  This Warrant does not entitle the Holder to any voting rights or other
rights as a stockholder of the Company, nor to any other rights whatsoever except the rights herein set forth. 

    9.  Additional Covenants of the Company.  For so long as the Common Stock is listed for trading on any
regional or national securities exchange or Nasdaq (National Market or Small Cap System), the 

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Company shall, upon issuance of any shares for which this Warrant is exercisable, at its expense, promptly obtain and maintain the listing of such shares. 

    The
Company shall comply with the reporting requirements of Sections 13 and 15(d) of the Exchange Act for so long as and to the extent that such requirements apply to the Company. 

    The
Company shall not, by amendment of its Articles or Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant. Without limiting the generality of the foregoing, the
Company (a) will at all times reserve and keep available, solely for issuance and delivery upon exercise of this Warrant, shares of Common Stock issuable from time to time upon exercise of this
Warrant, (b) will not increase the par value of any shares of capital stock receivable upon exercise of this Warrant above the amount payable therefor upon such exercise, and (c) will
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable stock. 

    10.  Market-Stand Off Provision.  For the one-year period commencing on the date hereof and
ending on January 4, 2002, Holder hereby agrees that, during such period as the Company and any underwriter of securities of the Company may specify in writing to Holder at least 10 days
prior to filing a registration statement of the Company, beginning 10 days before and up to a maximum of 90 days following the effective date of a registration statement of the Company
filed under the Securities Act for any subsequent underwritten public offerings, Holder will not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to
sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any
securities of the Company held by Holder at any time during such period except securities included in such registration. To enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the securities issued or issuable upon exercise of this Warrant held by the Holder until the end of such period. In addition, the foregoing
covenant may be enforced by the underwriters who are parties with the Company to an underwriting agreement under which such public offering is being undertaken. Holder hereby agrees to execute any
agreement reflecting its obligations hereunder as may be requested by the Company or the underwriters at the time of such public offering. 

    11.  Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the
Company, the Holder and their respective successors and permitted assigns. 

    12.  Notices.  The Company agrees to maintain a ledger of the ownership of this Warrant (the "Ledger").
Any notice hereunder shall be given by registered or certified mail if to the Company, at its principal executive office and, if to the Holder, to its address shown in the Ledger of the Company;
provided, however, that the Holder may at any time on three (3) days written notice to the Company designate or substitute another address where notice is to be given. Notice shall be deemed
given and received after a certified or registered letter, properly addressed with postage prepaid, is deposited in the U.S. mail. 

    13.  Severability.  Every provision of this Warrant is intended to be severable. If any term or provision
hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the remainder of this Warrant. 

    14.  Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the
State of Texas without giving effect to the principles of choice of laws thereof. 

    15.  Attorneys' Fees.  In any action or proceeding brought to enforce any provision of this Warrant, the
prevailing party shall be entitled to recover reasonable attorneys' fees in addition to its costs and expenses and any other available remedy. 

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    16.  Entire Agreement.  This Warrant (including the Exhibits attached hereto) constitutes the entire
understanding between the Company and the Holder with respect to the subject matter hereof, and supersedes all prior negotiations, discussions, agreements and understandings relating to such subject
matter. 

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first set forth above. 

	 	 	AXONYX, INC.
	

 	
 	

By:	
 	

/s/ MARVIN HAUSMAN
	 	 	 	 	

	 	 	Title:	 	President & CEO
	 	 	 	 	

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Exhibit A
  
    SUBSCRIPTION FORM    
  

(To
be Executed by the Holder to Exercise the Rights To Purchase Common Stock Evidenced by the Within Warrant) 

    The
undersigned hereby irrevocably subscribes for      shares (the "Stock") of the Common Stock of Axonyx, Inc. (the "Company") pursuant to and in accordance with
the terms and conditions of the attached Warrant (the "Warrant"), and hereby makes payment of $      therefor by [tendering cash, wire transferring or delivering a certified
check or bank cashier's check, payable to the order of the Company] [surrendering      shares of Common Stock received upon exercise of the Warrant, which shares
have a current market price equal to such payment as required in Section 2 of the Warrant]. The undersigned requests that a certificate for the Stock be issued in the name of the
undersigned and be delivered to the undersigned at the address stated below. If the Stock is not all of the shares purchasable pursuant to the Warrant, the undersigned requests that a new Warrant of
like tenor for the balance of the remaining shares purchasable thereunder be delivered to the undersigned at the address stated below. 

    In
connection with the issuance of the Stock, I hereby represent to the Company that I am acquiring the Stock for my own account for investment and not with a view to, or for resale
in connection with, a distribution of the shares within the meaning of the Securities Act of 1933, as amended (the "Securities Act"). 

    I
understand that because the Stock has not been registered under the Securities Act, I must hold such Stock indefinitely unless the Stock is subsequently registered and qualified
under the Securities Act or is exempt from such registration and qualification. I shall make no transfer or disposition of the Stock unless (a) such transfer or disposition can be made without
registration under the Securities Act by reason of a specific exemption from such registration and such qualification, or (b) a registration statement has been filed pursuant to the Securities
Act and has been declared effective with respect to such disposition. I agree that each certificate representing the Stock delivered to me shall bear substantially the same as set forth on the front
page of the Warrant. 

    I
further agree that the Company may place stop orders on the certificates evidencing the Stock with the transfer agent, if any, to the same effect as the above legend. The legend and
stop transfer notice referred to above shall be removed only upon my furnishing to the Company of an opinion of counsel (reasonably satisfactory to the Company) to the effect that such legend may be
removed. 

	Date:	 	
	 	Signed:	 	

	

 	
 	

 	
 	

Address:	
 	

	

 	
 	

 	
 	

 	
 	

A-1

  

 
 
 

Exhibit B
  
    ASSIGNMENT    
  

(To
be Executed by the Holder to Effect Transfer of the Attached Warrant) 

    For
Value Received            hereby sells, assigns and transfers to            the Warrant attached hereto and the rights represented
thereby to purchase
            shares of Common Stock in accordance with the terms and conditions hereof, and does hereby irrevocably constitute and appoint        
    as attorney to transfer such Warrant
on the books of the Company with full power of substitution. 

	Dated:	 	
	 	Signed:	 	

	

Please print or typewrite

name and address of

assignee:	
 	

Please insert Social Security

or other Tax Identification

Number of Assignee:
	

	
 	

	

	
 	

 	
 	

 
	

	
 	

 	
 	

 

B-1

  

 
 
 

Exhibit C
  
    REGISTRATION RIGHTS    
  

1.  Definitions  

    Affiliate:  With reference to any designated Person, any Person that has a relationship with such designated Person
whereby either of such Persons directly or indirectly controls or is controlled by or is under common control with the other. For this purpose "control" means the power, direct or indirect, of one
Person to direct or cause direction of the management and policies of another, whether by contract, through voting securities or otherwise. 

    Commission:  The Securities and Exchange Commission or any other governmental body at the time administering the
Securities Act. 

    Common Stock:  The Company's authorized common stock, as constituted on the date of this Warrant, any stock into which
such Common Stock may thereafter be changed and any stock of the Company of any other class, which is not preferred as to dividends or assets over any other class of stock of the Company and which is
not subject to redemption, issued to the holders of shares of such Common Stock upon any re-classification thereof. 

    Company Securities:  Any equity securities proposed to be sold by the Company in the registration statement referred to. 

    Person:  A corporation, an association, a partnership, a limited liability company, a joint venture, a trust, an
organization, a business, an entity, an individual, a government or political subdivision thereof or a governmental body. 

    Registrable Securities:  The Common Stock underlying the Warrant and any securities of the Company issued with respect
to the Common Stock by way of stock dividend or stock split or in connection with a combination, recapitalization, share exchange, consolidation or other reorganization of the Company. As to any
Registrable Securities, once issued such securities shall cease to be Registrable Securities when (i) a registration statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, (ii) they shall have been distributed to the public pursuant
to Rule 144 (or any successor provision) under the Securities Act, (iii) they shall have been otherwise transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent disposition of them shall not require registration or qualification of them under the Securities Act or any similar state law then in
force, or (iv) they shall have ceased to be outstanding. 

    Selling Expenses:  All underwriting discounts, selling commissions and stock transfer taxes applicable to the securities
registered by the Holder and, except as provided in Section 4 hereof, all fees and disbursements of counsel for the Holder. 

Capitalized
terms used in this Exhibit C but not otherwise defined herein shall have the meanings ascribed to such terms in the Warrant. 

2.  Registration Rights  

    2.1.  Registration on Request.  

    (a) Except
as provided in subsection (b) of this Section 2.1, upon the written request of Holders owning at least a majority of the then outstanding
Registrable Securities of all Holders requesting that the Company effect pursuant to this Section 2.1 the registration of the requesting Holders' Registrable 

C-1

 

Securities under the Securities Act (which request shall specify the number of Registrable Securities to be registered), the Company shall, as expeditiously as reasonably possible, notify all other
Holders of such request (and allowing them to participate therein), and use its reasonable best efforts to effect the
registration under the Securities Act of the Registrable Securities of all Holders which the Company has been so requested to register. 

    (b) The
Company shall not be obligated to take any action to effect any registration requested by the Holders pursuant to subsection (a) above (i) before
one year from the date of this Warrant; (ii) after two years from the date of this Warrant, or (iii) after the Company has effected one (1) registration pursuant to this
Section 2.1 and such registration has been declared or ordered effective. 

    (c) Notwithstanding
any other provision hereof to the contrary, a registration requested pursuant to this Section 2.1 shall not be deemed to have been effected
(i) unless it has become effective and remains effective for at least 180 days; provided, however, that a registration which does not become effective after the Company has filed a
registration statement with respect thereto solely by reason of the refusal by a requesting Holder, in its sole discretion, to proceed with such registration shall be deemed to have been effected by
the Company at the request of the Holders unless the requesting Holder shall have elected to pay all Company Registration Expenses (as defined in Section 4 below) in connection with such
registration, (ii) if after it has become effective such registration is interfered with by any stop order, injunction or other order or requirement of the Commission or other govern-mental
agency or court for any reason other than a misrepresentation or an omission by any participating Holder, or (iii) if the conditions to closing specified in the purchase agreement or
underwriting agreement entered into in connection with such registration are not satisfied other than by reason of some wrongful act or omission, or act or omission in bad faith, by any participating
Holder. 

    (d) The
Company shall not be obligated to effect any registration pursuant to this Section 2.1 within 90 days after the effective date of any underwritten
public offering by the Company or of any previous registration withdrawn at the request of the requesting Holders. The Company may postpone for up to 90 days the filing or the effectiveness of
a registration statement for a registration pursuant to this Section 2.1 if the Company, based on the good faith judgment of its Board of Directors, certifies to the holders of the Registrable
Securities that such registration would reasonably be expected to have a material adverse effect on the Company; provided, however, that in such event the Holders of Registrable Securities requesting
such Registration shall be entitled to withdraw such request and, if such request is withdrawn, such Registration shall not count as the one permitted registration under this Section 2.1 and
the Company shall pay all Registration Expenses in connection with such postponed or withdrawn registration. Notwithstanding the above, the Company may delay a demand registration pursuant to this
Section 2.1 only once in any twelve-month period. 

    2.2.  Incidental Registration.  

    (a) If
the Company at any time proposes to register any of its equity securities under the Securities Act on any form other than Form S-4 or
Form S-8 (or any similar or successor form then in effect), whether
or not for sale for its own account, and if the registration form proposed to be used may be used for the registration of Registrable Securities, the Company will in each such case give prompt written
notice (and in any event at least 10 business days' prior written notice prior to the filing of such registration statement) to the Holders of the Company's intention to do so, such notice to specify
the securities to be registered, the proposed numbers and amounts thereof and the date not less than 20 days thereafter by which the Company must receive the Holders' written indication of
whether the Holders wish to include their Registrable Securities in such registration statement and advising the Holders of their rights under this Section 2.2. Upon the written request of any
Holder made on or before the date specified in such notice (which request shall specify the number of Registrable Securities intended to be disposed of by such Holder), the Company will, to the extent
permitted under 

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Section 7, use its best efforts to cause all such Registrable Securities, which the Holders have so requested the registration thereof, to be registered under the Securities Act (with the
securities that the Company at the time proposes to register), to the extent requisite to permit the sale or other disposition (in accordance with the intended methods thereof as aforesaid) by the
Holders of the Registrable Securities to be so registered. 

    (b) No
registration effected pursuant to a request referred to in this Section 2.2 shall be deemed to have been effected pursuant to Section 2.1. 

    (c) Notwithstanding
anything to the contrary in this Section 2.2, the Company shall have the right to discontinue any registration under this Section 2.2
at any time prior to the effective date of such registration if the registration of other securities giving rise to such registration under this Section 2.2 is discontinued. 

    (d) Notwithstanding
anything in this Exhibit C to the contrary, the Company agrees to register all of the
Registrable Securities in any registration statement filed by the Company which registers the securities issued in the Placement (as defined in the Investment Banking Agreement). 

3.  Registration Procedures  

    If and whenever the Company is required by the provisions hereof to effect or cause the registration of any Registrable Securities under the Securities Act as
provided herein, the Company will, as expeditiously as possible: 

    (a) prepare
and file with the Commission (in the case of a registration pursuant to Section 2.1, such filing to be made as soon thereafter as possible but in any
event within 60 days after the request by the requisite Holders to register Registrable Securities) a registration statement with respect to such Registrable Securities and use all commercially
reasonable efforts to cause such registration statement to become and remain effective (provided that, before filing a registration statement or prospectus or any amendments or supplements thereto,
the Company will furnish to one counsel selected by the Holders copies of all such documents proposed to be filed, which documents will be subject to the review of such counsel); 

    (b) prepare
and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective for a period of at least 180 days (or such shorter period as shall be necessary to complete the distribution of the securities covered
thereby) and to comply with the pro-visions of the Securities Act with respect to the sale or other disposition of all securities covered by such registration statement during such period
in accordance with the intended methods of disposition by the seller or sellers thereof set forth in such registration statement; 

    (c) furnish
to counsel for the Holders and each underwriter of the securities being sold by the Holders such number of copies of such registration statement and of each
such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus included in such registration statement (including each preliminary prospectus), in
conformity with the requirements of the Securities Act, and such other documents, as such counsel may reasonably request, in substantially the form in which they are proposed to be filed with the
Commission, in order to facilitate the public sale or other disposition of the Registrable Securities owned by the participating Holders; 

    (d) use
all commercially reasonable efforts to register or qualify such Registrable Securities covered by such registration statement under such other securities or
blue sky laws of such jurisdictions as the Holders shall reasonably request, and do any and all other acts and things which may be necessary or advisable to enable the Holders and any underwriter to
consummate the disposition in such jurisdictions of such Registrable Securities owned by the participating Holders, except that the 

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Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction where, but for the requirements of this subsection (d), it would not
be obligated to be so qualified, or to subject itself to taxation in any such jurisdiction; 

    (e) use
all commercially reasonable efforts to cause such Registrable Securities covered by such registration statement to be registered with or approved by such other
governmental agencies or
authorities as may be necessary to enable the participating Holders to consummate the disposition of its Registrable Securities; 

    (f)  notify
the participating Holders at any time when a prospectus relating to its Registrable Securities is required to be delivered under the Securities Act, of the
Company's becoming aware that the prospectus included in the related registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly prepare and furnish to the participating Holders and
each underwriter a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not
include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing; 

    (g) otherwise
use all commercially reasonable efforts to comply with all applicable rules and regulations of the Commission; 

    (h) use
all commercially reasonable efforts (1) to cause all such Registrable Securities covered by such registration statement to be listed on a national
securities exchange (if such Registrable Securities are not already so listed) and on each additional national securities exchange on which similar securities issued by the Company are then listed, if
the listing of such Registrable Securities is then permitted under the rules of such exchange, or (2) to secure designation of all such Registrable Securities covered by such registration
statement as a Nasdaq "national market system security" or "small cap system security" within the meaning of Rule 11Aa2-1 of the Commission or, failing that, to secure Nasdaq
authorization for such Registrable Securities and, without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to such Registrable
Securities with the National Association of Securities Dealers; 

    (i)  enter
into such agreements (including an underwriting agreement in customary form) and take such other actions as the Holder shall reasonably request in order to
expedite or facilitate the disposition of its Registrable Securities; 

    (j)  in
the case of a registration instituted pursuant section 2.1 (if typically requested in a registration of the type being undertaken), to use its best
efforts to furnish to any participating Holder an opinion from the Company's counsel and a "cold comfort" letter from the Company's independent public accountants, addressed to such participating
Holder, in customary form and covering such matters of the type customarily covered by such opinions and "cold comfort" letters as such participating Holder shall reasonably request; 

    (k) make
available for inspection by any participating Holder and by any underwriter participating in any disposition to be effected pursuant to such registration
statement and by any attorney, accountant or other agent retained by the Holder or any such underwriter, all pertinent financial and other records, pertinent corporate documents and properties of the
Company, and cause all of the Company's officers, directors, employees and the independent public accountants who have certified its financial statements to supply all information reasonably requested
by any participating Holder, underwriter, attorney, accountant or agent in connection with such registration statement; 

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    (l)  in the case of an underwritten offering, enable the Registrable Securities to be in such denominations and registered in such names as the underwriters may request
at least two business days prior to the sale of the Registrable Securities; and 

    (m) notify
the Holder of any stop order threatened or issued by the Commission and take all actions reasonably necessary to prevent the entry of such stop order or to
remove it if entered. 

The
Holders shall be deemed to have agreed by acquisition of its Registrable Securities that, upon receipt of any notice from the Company of the happening of any event of the kind described in
subsection (f) above, the Holders will forthwith discontinue their disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until the
Holders' receipt of the copies of the supplemented or amended prospectus contemplated by said subsection and, if so directed by the Company, will deliver to the Company (at the Company's expense) all
copies, other than permanent file copies, then in the Holders' possession of the prospectus covering such Registrable Securities current at the time of receipt of such notice. In the event the Company
shall give any such notice, the period mentioned in subsection (b) above shall be extended by the number of days during the period from and including the date of the giving of such notice to
and including the date when the Holders shall have received the copies of the supplemented or amended prospectus contemplated by subsection (f) above. 

    Each
participating Holder shall furnish to the Company in writing such information and documents regarding it and the distribution of its securities as may reasonably be required to
be disclosed in the registration statement in question by the rules and regulations under the Securities Act or under any other applicable securities or blue sky laws of the jurisdictions referred to
in subsection (d) above. 

4.  Registration Expenses  

    In connection with any registration of Registrable Securities pursuant to Section 2.1 or 2.2, the Company will, whether or not any such registration
shall become effective, from time to time promptly upon receipt of bills or invoices relating thereto, pay all expenses (other than Selling Expenses) incident to its performance of or compliance
herewith (the "Company Registration Expenses"), including, without limitation, all registration, filing and NASD fees, fees and expenses of compliance with securities or blue sky laws, word
processing, duplicating and printing expenses, messenger and delivery expenses, fees and disbursements of counsel for the Company and all independent public accountants (including the expenses of any
audit and/or "cold comfort" letter) and other Persons retained by the Company, and any fees and disbursements of underwriters customarily paid by issuers or sellers of securities (excluding
underwriting commissions and discounts, except where they are customarily paid by issuers). 

5.  Indemnification  

    (a) The
Company will, and hereby does, indemnify, to the extent permitted by law, each Holder and each Person, if any, who controls each Holder within the meaning of
Section 15 of the Securities Act (collectively, "Holder Indemnified Parties"), from and against all losses, claims, damages, liabilities and expenses, joint or several, to which any such Holder
Indemnified Party may become subject under the Securities Act, the Exchange Act and all rules and regulations under each such Act, at common law or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in any registration statement as contemplated hereby or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary, final or summary prospectus, together with the
documents incorporated by reference therein (as amended or supplemented if the 

C-5

 

Company shall have filed with the Commission any amendment thereof or supplement thereto), or any omission or alleged omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (iii) any violation by the Company of any federal, state or
common law rule or regulation applicable to the Company and relating to action of or inaction by the Company in connection with any such registration; and in each such case, the Company shall
reimburse each such Holder Indemnified Party for any reasonable legal or other expenses incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability,
expense, action or proceeding; provided, however, that the Company shall not be liable to any such Holder Indemnified
Party insofar as such losses, claims, damages, liabilities, expenses, actions or proceedings are caused by any untrue statement or alleged untrue statement made in reliance on or in conformity with
any information furnished in writing to the Company by or on behalf of the Holder Indemnified Party expressly for use therein. 

    If
the offering pursuant to any registration statement provided for hereunder is made through underwriters, no action or failure to act on the part of such underwriters (whether or
not any such underwriter is an Affiliate of any Holder Indemnified Party) shall affect the Company's obligations to indemnify the Holder Indemnified Parties pursuant to the preceding paragraph. If the
offering pursuant to any registration statement provided for hereunder is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such
underwriters. 

    In
connection with any registration statement in which any Holder is participating, such participating Holder will furnish to the Company in writing such information as shall be
reasonably requested by the Company for use in any such registration statement or prospectus and will indemnify, to the extent permitted by law, the Company, its officers and directors and each
Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, against any losses, claims, damages, liabilities, expenses, actions or proceedings resulting
from any untrue statement or alleged untrue statement of a material fact or any omission or alleged omission of a material fact required to be stated in the registration statement or prospectus or
preliminary prospectus or any amendment thereof or supplement thereto, or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is made
in reliance on or in conformity with any information so furnished in writing by such participating Holder expressly for use therein. 

    Any
Person entitled to indemnification under the provisions of this Section 5 shall (i) give prompt notice to the indemnifying party of any claim with respect to which
it seeks indemnification, and (ii) unless in such indemnified party's reasonable judgment, based on the advice of counsel, a conflict of interest between such indemnified and indemnifying
parties may exist in respect of such claim, permit such indemnifying party to assume the defense of such claim, with counsel reasonably satisfactory to the indemnified party; and if such defense is so
assumed, such indemnifying party shall not enter into any settlement without the consent of the indemnified party if such settlement attributes liability to the indemnified party and such indemnifying
party shall not be subject to any liability for any settlement made without its consent (which shall not be unreasonably withheld); and any underwriting agreement entered into with respect to any
registration statement provided for hereunder shall so provide. In the event an indemnifying party shall not be entitled, or elects not, to assume the defense of a claim, such indemnifying party shall
not be obligated to pay the fees and expenses of more than one counsel or firm of counsel (plus one local counsel or firm of counsel) for all parties indemnified by such indemnifying party hereunder
in respect of such claim, unless in the reasonable judgment of any such indemnified party, based on the advice of counsel, a conflict of interest may exist between such indemnified party and any other
of such indemnified parties in respect to such claim. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Holder Indemnified Party and
shall survive the transfer of such securities by such Holder Indemnified Party. 

C-6

 

    (b) If for any reason the foregoing indemnity is unavailable, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a
result of such losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and
the indemnified party on the other, or (ii) if the allocation provided by subdivision (i) above is not permitted by applicable law or provides a lesser sum to the indemnified party than
the amount hereinafter calculated, in such proportion as is appropriate to reflect not only the relative benefits received by the indemnifying party on the one hand and the indemnified party on the
other but also the relative fault of the indemnifying party and the indemnified party as well as any other relevant equitable considerations. Notwithstanding the foregoing, no Holder shall be required
to contribute any amount in excess of the amount such Holder would have been required to pay to an indemnified party if the indemnity under subdivision (a) of this Section 5 was
available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. The obligation of any underwriters to contribute pursuant to this Section 5 shall be several in proportion to their respective underwriting commitments and
not joint. 

    (c) An
indemnifying party shall make payments of all amounts required to be made pursuant to the fore-going provisions of this Section 5 to or for
the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due and payable. 

    (d) Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in
connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in such underwriting agreement shall control. 

6.  Certain Limitations on Registration Rights  

    In the case of a registration under Section 2.1, if any Holder determines to enter into an underwriting agreement in connection there-with
or, in the case of a registration under Section 2.2, if the Company determines to enter into an underwriting agreement in connection therewith, all Registrable Securities to be included in such
registration shall be subject to such underwriting agreement and no Person may participate in such registration unless such Person agrees to sell such Person's securities on the basis provided in such
underwriting agreement and completes and/or executes all questionnaires, indemnities, and other reasonable documents which must be executed under the terms of such underwriting agreement. 

7.  Underwriting Requirements; Allocation of Securities Included in Registration Statement  

    In the case of a registration pursuant to Section 2.2, if the Company's managing underwriter, in its sole discretion, shall advise the Company and the
Holders in writing that the inclusion in any registration pursuant hereto of some or all of the Registrable Securities sought to be registered by the Holders creates a substantial risk that the
proceeds or price per unit that will be derived from such registration will be reduced, that the number of securities to be registered is too large a number to be reasonably sold or that the inclusion
of such Registrable Securities would otherwise jeopardize the success of the offering, the number of Registrable Securities and other securities of holders exercising registration rights shall be
included in such registration to the extent, if at all, permitted by the Company's managing underwriter (if the offering is underwritten) with the number of Registrable Securities and such other
securities being registered being on a pro rata basis based on the number of securities the participating Holders and each such other holder desire to have registered; provided, however, that, if any
participating Holder would be required pursuant to the provisions of this Section 7 to reduce the number of Registrable Securities that it may include in such registration, such participating
Holder may withdraw all or any portion of its Registrable Securities from such registration. 

C-7

 

8.  Limitations on Sale or Distribution of Securities  

    If a registration hereunder shall be in connection with an underwritten public offering, the participating Holders shall be deemed to have agreed by
acquisition of their Registrable Securities not to effect any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any Registrable Securities and to
use their best efforts not to effect any such public sale or distribution of any other equity security of the Company or of any security convertible into or exchangeable or exercisable for any equity
security of the Company (other than as part of such underwritten public offering) within 10 days before or 90 days after the effective date of such registration statement. In such event,
such participating Holders agree, if requested, to sign a customary market stand-off letter with the Company's managing underwriter, and to comply with applicable rules and regulations of
the Commission. 

9.  Rule 144  

    The Company covenants that it will file the reports required to be filed under the Securities Act and the Exchange Act and the rules and regulations adopted by
the Commission thereunder (or, in the
event that the Company is not required to file such reports, it will make publicly available information as set forth in Rule 144(c)(2) promulgated under the Securities Act), and it will take
such further action as any Holder may reasonably request, or to the extent reasonably required from time to time to enable the Holders to sell their Registrable Securities without registration under
the Securities Act within the limitation of the exemption provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (b) any similar rule
or regulation hereafter adopted by the Commission (collectively, "Rule 144"). Upon the written request of any Holder, the Company will deliver to such Holder a written statement as to whether
it has complied with such requirements. 

10. Registration Rights of Others  

    If the Company shall at any time hereafter provide any Person any Company rights with respect to the registration of any securities of the Company under the
Securities Act, such rights shall not be in conflict with any of the rights provided herein to the Holders. 

11. Transfer of Registration Rights  

    If and to the extent that any Holder sells or otherwise disposes of Registrable Securities in any transaction that does not require registration under the
Securities Act (other than a transaction exempt under Rule 144), the rights of the Holder hereunder with respect to such Registrable Securities will be assignable to the transferee of such
Registrable Securities; provided, however, that such transferee agrees in writing to be bound by all the terms and conditions of this Exhibit C. 

C-8

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EXHIBIT 4.3

Exhibit A

Exhibit B

Exhibit CPrepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.9    
  

 
  LICENSE AGREEMENT    
  

    THIS LICENSE AGREEMENT (the "Agreement") effective as of the 15th day of September 2000 (the "Effective Date") by and between Axonyx Inc., a
company organized and existing under the laws of the State of Nevada, USA and having its principal place of business at 825 3rd Avenue, 40th Floor, New York, New York
10022, USA (hereafter "Axonyx"), and Applied Research Systems ARS Holding N.V., a company organized and existing under the laws of the Netherlands Antilles and having its principal place of business
c/o ABN AMRO Trust Company (Curacao) N.V., Pietermaai 15, P.O. Box 4905, Curacao, the Netherlands Antilles (hereafter "ARS"). References to Axonyx and ARS shall include their respective
Affiliates (as hereafter defined) (Axonyx and ARS are sometimes hereinafter referred to collectively as the "Parties" or individually as a "Party"); 

WITNESSETH:  

    WHEREAS, Axonyx has developed and acquired proprietary patent rights and know-how relating to peptides useful in the inhibition or disassembly of
amyloid aggregation or prion formation and that could be useful as therapeutic agents in the treatment of diseases associated with amyloid or prion formation either per se, as analogs thereof or as
peptidomimetics developed on the basis of structural leads derived from such peptides; and 

    WHEREAS,
ARS has evaluated these patent rights and know-how pursuant to a Development Agreement and Right to License, effective as of May 17, 1999, between the
Parties (the "Development Agreement"); and 

    WHEREAS,
pursuant to the Development Agreement, ARS has exercised its right to receive a worldwide, exclusive license from Axonyx under these patent rights and know-how
and other patent rights developed pursuant to the Development Agreement; and 

    WHEREAS,
pursuant to the terms and conditions set forth in this Agreement, ARS wishes to obtain and Axonyx is willing to grant such a worldwide, exclusive license; 

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Parties hereto agree as follows: 

ARTICLE I

DEFINITIONS  

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

    Section 1.01.  The
term "Affiliate" shall mean any individual or entity directly or indirectly controlling,
controlled by or under common control with a Party to this Agreement. For purposes of this Agreement, the direct or indirect ownership of over fifty percent (50%) of the outstanding voting securities
of an entity, or the right to receive over fifty percent (50%) of the profits or earnings of an entity, shall be deemed to constitute control. Such other relationship as in fact gives such individual
or entity the power or ability to control the management, business and affairs of an entity shall also be deemed to constitute control. 

    Section 1.02.  The
term "ARS Know-How" shall mean any information and materials, including without
limitation, discoveries, improvements, processes, procedures, formulas, Compounds, compositions, matter, data, inventions, know-how, and trade secrets, patentable or otherwise, in each
case that during the term of the Development Agreement were not generally known, that arose out of the Research, and that were developed by ARS or its agents. 

    Section 1.03.  The
term "ARS Patent Rights" shall mean any and all patents and patent applications (which for the
purposes of this Agreement shall be deemed to include certificates of invention and applications for certificates of invention) owned or controlled by ARS that claim 

 

inventions that were conceived and/or reduced to practice in the conduct of the Research and that relate to a Compound and/or a Product and the divisions, continuations,
continuations-in-part, patents of addition, reissues, renewals, extensions, registrations, confirmations, re-examinations, any provisional application,
supplementary protection certificates or the like of any such patents and patent applications and any foreign equivalents thereof. 

    Section 1.04.  The
term "Axonyx Know-How" shall mean all information and materials, including,
without limitation, discoveries, improvements, processes, procedures, formulas, Compounds, compositions, matter, data, inventions, know-how and trade secrets, patentable or otherwise, in
each case that during the term of the Development Agreement (i) were owned or controlled by Axonyx (and continue to be owned and controlled by Axonyx) and to which Axonyx has and had the right
to grant licenses or sublicenses or to disclose, (ii) were not generally known and (iii) are useful to ARS in connection with the discovery, research, development, registration,
manufacture, marketing, use or sale of a Product. Know-How shall include, without limitation, all biological, chemical, pharmacological, toxicological, pharmaceutical, physical and
analytical data and information related thereto. 

    Section 1.05.  The
term "Axonyx Patent Rights" shall mean any and all patents and patent applications (which for
the purposes of this Agreement shall be deemed to include certificates of invention and applications for certificates of invention) that during the Term are owned by Axonyx or to which Axonyx through
license or otherwise has acquired rights and that relate to a Compound and/or a Product, including, without limitation, those listed on Schedule 1.05, and the divisions, continuations,
continuations-in-part, patents of addition, reissues, renewals, extensions, registrations, confirmations, re-examinations, any provisional applications,
supplementary protection certificates or the like of any such patents and patent applications and any foreign equivalents thereof. 

    Section 1.06.  The
term "Business Day" shall mean any day other than a Saturday, Sunday or other day on which the
principal commercial banks located in Curacao, the Netherlands Antilles or New York, New York are not open for business during normal banking hours. 

    Section 1.07.  The
term "Calendar Quarter" shall mean the respective periods of three (3) consecutive
calendar months ending on March 31, June 30, September 30 and December 31. 

    Section 1.08.  The
term "Calendar Year" shall mean each successive period of twelve (12) months commencing
on January 1 and ending on December 31. 

    Section 1.09.  The
term "Combination Product" shall mean a Product that includes one or more active ingredients
other than a Compound in combination with one or more Compounds or that includes other products, devices, equipment or components. 

    Section 1.10.  The
term "Competitive Product" shall mean a product with a mechanism of action substantially
equivalent to that of a Licensed Product, which has an approved Health Registration in a
given country for an indication for which such Licensed Product also has an approved Health Registration in such country and which has a market share of fifteen percent (15%) or more in such country
as measured by prescriptions or other similar information for such country. 

    Section 1.11.  The
term "Compound" shall mean any and all peptides, peptide analogs or derivatives or
peptidomimetics that are active in the inhibition or disassembly of amyloid aggregation or prion formation in the brain. 

    Section 1.12.  The
term "Development Agreement" shall mean the Development Agreement and Right to License,
effective as of May 17, 1999, between the Parties. 

    Section 1.13.  The
term "Effective Date" shall mean September 15, 2000. 

    Section 1.14.  The
term "EU" shall mean each of the countries of the European Union (or its successor), that
currently include Austria, Belgium, United Kingdom, Denmark, Finland, France, 

2

 

Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and Sweden, as such membership may change from time to time, and includes countries upon their admission for full
membership (with commercial rights and privileges substantially comparable to those of the foregoing countries); provided, however, that for purposes of
this Agreement, if a country is or becomes a member of the European Union (or its successor) at any time during the Term, such country shall be deemed to be included in the European Union even if such
country in fact withdraws from or is otherwise no longer a member of the European Union (or its successor). 

    Section 1.15.
The term "First Commercial Sale" shall mean, with respect to any Licensed Product, the first sale by ARS or its
sublicensees for end use or consumption of such Licensed Product in a country after all required approvals, including without limitation Health Registrations, have been granted by the governing
Regulatory Authority of such country. 

    Section 1.16.  The
term "Health Registrations" shall mean the technical, medical and scientific licenses,
registrations, authorizations and/or approvals of a Licensed Product (including any prerequisite manufacturing approvals or authorizations related thereto) that are required or deemed necessary by any
national, supra-national (e.g., the European Commission or the Council of the European Union), regional, state or local regulatory agency, department, bureau or other governmental entity, and any
pricing, third-party reimbursement approvals and labeling approvals required or deemed necessary for the manufacture, distribution, use or sale of such Licensed Product. 

    Section 1.17.  The
term "Licensed Product" shall mean a Patented Product and/or an Other Product. 

    Section 1.18.  The
term "Net Sales" shall mean with respect to each country the amounts received by ARS or its
sublicensees for all sales of a Licensed Product to an unaffiliated third party (whether an end-user, a distributor or otherwise), and exclusive of sales or transfers to Affiliates,  less the reasonable
and customary deductions from such gross amounts including: 

    (a) trade,
cash and quantity discounts, rebates, reimbursements, allowances and credits; 

    (b) credits
or allowances actually granted for damaged goods, returns or rejections of such Licensed Product and retroactive price reductions; 

    (c) sales,
use or similar taxes (including duties or other governmental charges levied on, absorbed or otherwise imposed on the sale or use of such Licensed Product
including, without limitation, value added taxes or other governmental charges otherwise measured by the billing amount, when included in billing); 

    (d) freight,
postage, shipping, customs duties and insurance charges; and 

    (e) commissions
paid to third parties other than sales personnel and sale representatives or sales agents. 

For
purposes of calculating Net Sales under this Agreement, all sales of a Licensed Product hereunder, whether made for cash or otherwise, shall be deemed to be made for cash, at the applicable fair
market value of such Licensed Product. 

    In
the event that a Licensed Product is sold in the form of a Combination Product, Net Sales for such Combination Product will be calculated by multiplying actual Net Sales of such
Combination Product by the fraction A/(A+B) where A is the invoice price of the Licensed Product containing a Compound
as the only active ingredient if sold separately and B is the invoice price of any other active ingredients, products, devices, equipment or components in the Combination Product if sold separately.
In the event that the Licensed Product or one or more of such active ingredients, products, devices, equipment or components in the Combination Product are not sold separately, then the Parties shall
negotiate in good faith a formula for calculating Net Sales for such Combination Product that reflects 

3

 

the respective contributions of the Licensed Product and such other components to the overall value of such Combination Product. 

    Section 1.19.  The
term "NYU" shall mean New York University. 

    Section 1.20.  The
term "NYU Agreement" shall mean the Agreement between NYU and Axonyx effective April 1,
1997, as amended, 

    Section 1.21.  The
term "Other Product" shall mean a Product, including a Combination Product, that is not a
Patented Product and that contains a Compound that was conceived and/or reduced to practice in the conduct of the Research or whose manufacture, importation, use, offer to sell or sale, but for the
license granted by Axonyx to ARS hereunder, would infringe a Valid Claim of the ARS Patent Rights licensed hereunder. 

    Section 1.22.  The
term "Patented Product" shall mean a Product, including a Combination Product, the
manufacture, import, use, offer to sell or sale of which, but for the license granted by Axonyx to ARS hereunder, would infringe a Valid Claim of the Axonyx Patent Rights licensed hereunder. 

    Section 1.23.  The
term "Product(s)" shall mean preparations in final form for sale that contain a Compound as an
active ingredient. 

    Section 1.24.  The
term "Regulatory Authority" shall mean the applicable government regulatory authority in each
country involved in granting the Health Registrations for the Licensed Product. Such term includes, without limitation, the United States Food and Drug Administration and any successor agency thereto
and the Committee on Proprietary Medicinal Products of the European Community and any successor thereto. 

    Section 1.25.  The
term "Research" shall mean that research conducted pursuant to the research and evaluation
program set forth in Schedule 1.24 to the Development Agreement. 

    Section 1.26.
The term "Term" shall have the meaning set forth in Section 5.01 hereof. 

    Section 1.27.  The
term "Valid Claim" means a claim of an issued and unexpired patent included within the Axonyx
Patent Rights or the ARS Patent Rights that has not lapsed, been revoked or abandoned or held unenforceable or invalid by a final decision of a court or other appropriate body of competent
jurisdiction, unappealable or unappealed within the time allowed for appeal, and that has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue,
re-examination, disclaimer or otherwise. 

ARTICLE II

LICENSE  

    Section 2.01.  Grant of License.  Subject to the terms and conditions of this Agreement, Axonyx
hereby grants to ARS, and ARS hereby accepts, an exclusive, worldwide license under the Axonyx Know-How, the ARS Patent Rights and the Axonyx Patent Rights to make, have made, import, use,
offer for sale and sell Licensed Products. ARS may sublicense the Axonyx Know-How, the ARS Patent Rights and the Axonyx Patent Rights to an entity that, in the reasonable business
judgement of ARS, is capable of performing such sublicense. 

    Section 2.02.  Due Diligence.  

    2.02.01.  Development and Commercialization.  Pursuant to this Agreement, ARS shall, at its own expense,
use diligent efforts, consistent with the usual practice followed by ARS in pursuing the commercialization and marketing of its other pharmaceutical products of similar potential, value and status to
develop and commercialize Licensed Products. 

4

 

    2.02.02.  Reporting.  Within sixty (60) days of receipt of a request therefor from Axonyx (which
request may not be made more frequently than once in any twelve (12) month period), ARS shall deliver to Axonyx a report of ARS' efforts in developing and commercializing Licensed Products
during the preceding twelve (12) month period. Following receipt of such report by Axonyx, ARS at Axonyx's request will conduct a telephone conference call with Axonyx to discuss any questions
or comments Axonyx may have with respect to such report. 

    2.02.03.  Meeting.  Within sixty (60) days of receipt of a request therefor from Axonyx (with
request may not be made more frequently than once in any twelve (12) month period), ARS and Axonyx will hold a meeting at the facilities of ARS' Affiliate in Geneva, Switzerland, or at such
other location as the Parties may agree, to discuss ARS' efforts in developing and commercializing Licensed Product during the period from the later of delivery of the last report under Subsection
2.02.02 hereof or the last meeting held pursuant to this Subsection 2.02.03, as applicable. 

ARTICLE III

PAYMENTS AND ROYALTIES  

    Section 3.01.  License Issuance Fees.  In consideration for the grant of an exclusive license
hereunder, ARS shall pay to Axonyx within thirty (30) days of the execution and delivery of this Agreement, One Million Five Hundred Thousand U. S. dollars (U.S. $1,500,000.00). 

    Section 3.02.  Milestone Payments.  Subject to the terms and conditions of this Agreement and in
consideration for the grant of an exclusive license hereunder, ARS shall make the following payments to Axonyx based on the development of Licensed Products within thirty (30) days of the
occurrence of the following events (each milestone payment shall be made only once with respect to any given Licensed Product): 

    (a) For
a Patented Product: 

	Milestone
 
	 	Payment

	Phase I Clinical Trial Start	 	$	1,000,000.00
	Phase III Clinical Trial Start	 	$	2,000,000.00
	Health Registration Submission	 	$	4,000,000.00
	Health Registration Approval	 	$	7,000,000.00

    (b) For
an Other Product: 

	Milestone
 
	 	Payment

	Phase I Clinical Trial Start	 	$	1,000,000.00
	Phase III Clinical Trial Start	 	$	1,500,000.00
	Health Registration Submission	 	$	2,000,000.00
	Health Registration Approval	 	$	2,500,000.00

    (c) For
purposes of this Section 3.02, Phase I and Phase III Clinical Trial Start shall be deemed to occur on the date the first patient is enrolled in the first
such clinical trial conducted by or on behalf of ARS. Health Registration submission shall be deemed to occur on the date ARS submits the first application for Health Registration in any one of the
United States, the EU, or Japan. Health Registration approval shall be deemed to occur when the first Health Registration approval is received by ARS in any one of the United States, the EU or Japan. 

5

 

    Section 3.03.  Method of Payment.  Payments by ARS to Axonyx under this Agreement shall be made by
bank wire transfer in immediately available funds to such bank account as Axonyx designates in writing to ARS from time to time. 

    Section 3.04.  Royalties.  Subject to the terms and conditions of this Agreement and in
consideration for the grant of an exclusive license hereunder, ARS shall pay, or cause to be paid, to Axonyx royalties on a country-by-country basis in an amount equal to: 

    (a) with
respect to total annual Net Sales of Patented Products at or below One Hundred Fifty Million U.S. dollars (U.S. $150,000,000.00), six percent (6%) of Net Sales
of such Patented Products; 

    (b) with
respect to total annual Net Sales of Patented Products above One Hundred Fifty Million U.S. dollars (U.S. $150,000,000.00), six and one-half
percent (6.5%) of Net Sales of such Patented Products; 

    (c) with
respect to total annual Net Sales of Other Products at or below One Hundred Fifty Million U.S. dollars (U.S. $150,000,000.00), four percent (4%) of Net Sales
of such Other Products; and 

    (d) with
respect to annual Net Sales of Other Products above One Hundred Fifty Million U.S. dollars (U.S. $150,000,000.00), four and one-half percent (4.5%)
of Net Sales of such Other Products. 

    Section 3.05.  Term of the Royalty Obligation.  ARS' obligation to pay royalties under this
Agreement with respect to any country shall extend from the date of the First Commercial Sale in such country to the later of (i) the tenth anniversary of the date of such First Commercial Sale
in such country or (ii) the date of expiration or invalidation of the last Valid Claim of the Axonyx Patent Rights or the ARS Patent Rights claiming such Licensed Product in such country, as
applicable. 

    Section 3.06.  Single Royalty.  Nothing herein contained shall obligate ARS and/or its
sublicensees to pay or cause to be paid to Axonyx more than one royalty on any unit of Licensed Product. 

    Section 3.07.  Taxes Withheld.  Any and all taxes that are levied on royalties accruing under this
Agreement in a country in which provision is made in the law or by regulation for withholding may be deducted by
the payor from such royalties and paid to the proper taxing authority for Axonyx's account and evidence of such payment shall be secured and sent to Axonyx within one (1) month of such payment.
The Parties shall do all such lawful acts and things and sign all such lawful deeds and documents as either Party may reasonably request from the other Party to enable ARS and/or its sublicensees to
take advantage of any applicable legal provision or any double taxation treaties with the object of paying the sums due to Axonyx hereunder without withholding any tax. 

    Section 3.08.  Report of Royalties.  Within sixty (60) days of the end of each Calendar
Quarter during the Term (including the sixty (60) day period following the end of the Calendar Quarter in which the Term terminates), ARS shall deliver to Axonyx a written report showing its
computation of royalties due under this Agreement on Net Sales during such Calendar Quarter. Such report shall set forth (a) the quantities of Licensed Products that ARS and its sublicensee(s)
sold during the preceding Calendar Quarter in each country in which Licensed Products were sold; (b) the monetary amount, in the national currency of such country, of such sales; (d) the
currency conversion rate used and the United States dollar-equivalent of such Net Sales; (e) the calculation of royalties thereon; and (f) the total royalties so computed and due Axonyx.
The rate of exchange to be used in any such conversion shall be the rate reported in the Wall Street Journal for the purchase of United States dollars with such currency on the last Business Day of
the quarter for which the report is being prepared. 

    Section 3.09.  Payment of Royalties.  Royalties shall be payable hereunder by ARS on behalf of
itself and/or its sublicensees, whichever shall have effected the sales on which a royalty is due. 

6

 

Simultaneous with the delivery of the report described in Section 3.08 hereof, ARS shall pay or cause to be paid to Axonyx all royalties earned in the preceding Calendar Quarter. All payments
shall be made in United States dollars. 

    Section 3.10.  Records.  ARS shall keep or cause to be kept accurate records (prepared in
accordance with International Accounting Standards consistently applied) in sufficient detail to enable the royalties payable hereunder to be determined. During the Term and for a period of two years
following the termination of this Agreement, upon the request of Axonyx (but not more frequently than once in each Calendar Year) an independent public accountant selected by Axonyx and approved by
ARS shall be allowed access, during ordinary business hours, to such records pertaining to the preceding two (2) Calendar Years solely to verify the accuracy of royalty payments made or payable
hereunder. Axonyx and ARS shall mutually determine a general strategy for such audit in advance of its conduct. Said accountant shall not disclose to Axonyx any information except that which should
properly be contained in a royalty report required under this Agreement. Axonyx shall bear the full cost of such audit unless such audit reveals an under-reporting of royalties in excess of five
percent (5%) of the amount due under this Agreement for the preceding two (2) Calendar Years, in which case the full cost of the audit shall be borne by ARS. If an audit discloses any
underpayment by ARS, ARS shall promptly make
payment to Axonyx of such underpayment, and if the audit discloses any overpayment by ARS, Axonyx shall promptly repay such overpayment to ARS. 

ARTICLE IV

PATENT MAINTENANCE, ENFORCEMENT, INFRINGEMENT, CONSENT AND

COMPETITIVE PRODUCTS  

    Section 4.01.  Filing, Prosecution and Maintenance of Axonyx Patent Rights.  Axonyx agrees to
file, prosecute and maintain, upon appropriate consultation with ARS, the Axonyx Patent Rights. Axonyx shall give ARS an opportunity to review the text of the application before filing any new patent
application within the Axonyx Patent Rights, shall consult with ARS with respect thereto, and shall supply ARS with a copy of the application as filed together with notice of its filing date and
serial number. Axonyx shall keep ARS advised of the status of actual and prospective patent applications and, upon the request of ARS, provide advance copies of any papers related to the filing,
prosecution and maintenance of such patent applications. 

    Section 4.02.  Revocation or Grant of Axonyx Patent Rights.  Axonyx shall promptly give notice to
ARS of any proceeding or other action that might result in the revocation or invalidation of any Axonyx Patent Rights and shall promptly give notice to ARS of the grant, revocation or invalidation of
any Axonyx Patent Rights. 

    Section 4.03.  ARS Patent Rights.  The provisions of Sections 4.01 and 4.02 shall apply  mutatis mutandi to the ARS Patent Rights and ARS agrees to carry out its
obligations with respect to the ARS Patent Rights in the same manner as Axonyx
with respect to the Axonyx Patent Rights. 

    Section 4.04.  Enforcement of Patent Rights.  

    4.04.01.  Notice and Discontinuance of Infringement.  In the event that either Party becomes aware of any
third-party infringement of any Valid Claim of the Axonyx Patent Rights or ARS Patent Rights, such Party will notify the other Party to that effect, including within such notice evidence to support an
allegation of infringement by such third party. Axonyx shall have ninety (90) days from the date of such notice to obtain a discontinuance of such infringement or to bring suit against the
third-party infringer and shall notify ARS thirty (30) days prior to bringing such suit. Axonyx shall bear all the expenses of
any suit brought by it. ARS shall have the right, prior to commencement of the suit brought by Axonyx, to join any such suit, and in such event shall pay one-half of the costs of such
suit. In the event that ARS has joined the suit and shared the costs 

7

 

thereof as set forth above, no settlement, consent judgment or other voluntary final disposition of the suit may be entered into without the consent of ARS, and any recovery or damages derived from
such suit shall be used first to reimburse each of Axonyx and ARS for its reasonable documented out-of-pocket legal expenses relating to the suit, with any remaining amounts to
be shared equally by the Parties. In the event that ARS has not joined the suit, ARS shall reasonably cooperate with Axonyx in any such suit and shall have the right to consult with Axonyx and be
represented by independent counsel at its own expense with respect to such suit, provided, however, that Axonyx shall reimburse ARS for its
out-of-pocket costs (excluding the costs of retaining its independent counsel) incurred in cooperating with Axonyx. Axonyx shall keep ARS informed of the status of any such
suit and shall provide ARS with copies of all pleadings filed in such suit. Any recovery or damages derived from such suit or the settlement thereof shall be retained by Axonyx. 

    4.04.02.  Continuance of Infringement.  If, after the expiration of ninety (90) days from the date
of the notice specified in Subsection 4.04.01 above, Axonyx has not obtained a discontinuance of such infringement, or brought suit against the third-party infringer, then the royalty in effect in
such country pursuant to Section 3.04 hereof on the Net Sales of Patented Products, in the case of an infringement of Axonyx Patent Rights, or on the Net Sales of Other Products, in the case of
an infringement of ARS Patent Rights, shall be reduced by fifty percent (50%). Said reduced royalty shall continue to be the prevailing royalty on such Net Sales until such infringement ceases and,
thereafter, the royalty shall revert to the full royalty set forth in Section 3.04 hereof. In addition, ARS shall have the right, but not the obligation, to bring suit against such infringer
under the Axonyx Patent Rights or the ARS Patent Rights, as applicable, and join Axonyx as a party plaintiff, provided that ARS shall bear all the expenses of the suit and shall control the
prosecution of such suit. Axonyx shall cooperate with ARS in any suit brought by ARS and shall have the right to consult with ARS and be represented by independent counsel at its own expense with
respect to such suit, provided, however, that ARS shall reimburse Axonyx for its out-of-pocket costs (excluding the costs of
retaining independent counsel) incurred in cooperating with ARS. ARS shall keep Axonyx informed of the status of any such suit and shall provide Axonyx with copies of all pleadings filed in such suit.
ARS shall incur no liability to Axonyx as a consequence of such suit or any unfavorable decision resulting therefrom, including any decision holding any of the Axonyx Patent Rights or ARS Patent
Rights invalid or unenforceable. Any recovery or damages derived from such suit or the settlement thereof shall be retained by ARS. 

    Section 4.05.  Infringement and Third-Party Licenses.  

    4.05.01.  Course of Action.  In the event that ARS or its sublicensees making, having made, importing,
using, offering for sale or selling a Licensed Product infringes, will infringe or is alleged by a third
party to infringe a third party's patent, the Party becoming aware of same shall promptly notify the other Party. The Parties shall thereafter attempt to agree upon a course of action that may
include: (a) modification of the Licensed Product or its use and manufacture so as to be non-infringing; or (b) obtaining a license or assignment of such third-party patent
from such third party. 

    4.05.02.  The ARS Option to Negotiate.  In the event the Parties cannot agree on modifying the Licensed
Product pursuant to Subsection 4.05.01 above, ARS shall have the right to negotiate with said third party for a suitable license or assignment. In the event that such negotiation results in a
consummated agreement, then any lump sum payment or royalties paid thereunder by ARS or its sublicensees shall be offset against any royalties due Axonyx pursuant to Section 3.04 hereof until
the total amount paid has been offset, provided, however, that such offset shall not reduce such royalty due in any Calendar Quarter below fifty percent
(50%) of the royalty otherwise due in such Calendar Quarter. 

8

 

    Section 4.06.  Competitive Product.  If a Competitive Product exists in any country for a
continuous period in excess of a Calendar Quarter, then for each Calendar Quarter during which such Competitive Product continues to exist in such country, the royalty in effect in such country
pursuant to Section 3.04 hereof on the Net Sales of Licensed Products, depending upon the Licensed Product or Licensed Products with which the Competitive Product competes, shall be reduced by
fifty percent (50%). Said reduced royalty shall continue to be the prevailing royalty on such Net Sales until such Competitive Product ceases to exist in such country and, thereafter, the royalty
shall revert to the full royalty set forth in Section 3.04 hereof. 

    Section 4.07.  Royalty Reductions and Offsets Not Cumulative.  In no event shall the individual
royalty reductions and offsets set forth in this Article IV cumulate to reduce the royalty due Axonyx under Section 3.04 hereof below fifty percent (50%) of the royalty otherwise due
hereunder. 

ARTICLE V

TERM AND TERMINATION  

    Section 5.01.  Term and Expiration.  This Agreement shall be effective as of the date of execution
and delivery hereof, and unless terminated earlier pursuant to Sections 5.02, 5.03 or 5.04 hereof, shall continue in effect until the expiration of ARS' royalty obligation as set forth in
Section 3.05 hereof (the
period during which this Agreement is in effect shall be defined as the "Term"). Upon expiration of this Agreement due to expiration of such royalty obligation, ARS' licenses shall become fully
paid-up, perpetual licenses. 

    Section 5.02.  Termination by ARS.  Notwithstanding anything contained in this Agreement to the
contrary, ARS shall have the unilateral right to terminate this Agreement, with or without cause, at any time by giving thirty (30) days advance notice to Axonyx. In the event of such
termination, the rights and obligations hereunder, including any payment obligations not due and owing as of the termination date shall terminate and all right, title and interest in and to all Axonyx
Know-How, Axonyx Patent Rights, ARS Know-How and ARS Patent Rights shall revert to or vest in Axonyx. ARS will promptly execute any documents reasonably required to perfect
such reversion. 

    Section 5.03.  Termination for Breach.  This Agreement may be terminated by either Party at any
time during the Term if the other Party is in breach of its material obligations hereunder and has not cured such breach within ninety (90) days after receipt of notice from the
non-breaching Party requesting cure of such breach. In the event ARS terminates this Agreement under this Section 5.03, the licenses under the Agreement shall become fully
paid-up, perpetual licenses. 

    Section 5.04.  Termination on ARS' Bankruptcy.  This Agreement may be terminated by notice by
Axonyx upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings with respect to ARS, upon an assignment of a substantial portion of ARS' assets for the
benefit of creditors, in the event a receiver or custodian is appointed for ARS' business, or if a substantial portion of ARS' business is subject to attachment or similar process;  provided, however, in
the case of any involuntary bankruptcy proceeding such right to terminate shall only become effective if such proceeding is not
dismissed within ninety (90) days after the filing thereof. 

    Section 5.05.  No Termination on Axonyx's Bankruptcy.  The licenses granted under this Agreement
by Axonyx to ARS are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code, as amended from time to time (the "Bankruptcy Code"), licenses or
rights to "intellectual property" as defined under Section 101(35A) of the Bankruptcy Code. The Parties agree that ARS, as a licensee of such rights under this Agreement, shall retain and may
fully exercise all of its rights and elections under the Bankruptcy Code. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Axonyx under the
Bankruptcy Code, ARS shall be entitled to a complete duplicate of (or complete access to, 

9

  

as
appropriate) any such intellectual property and all embodiments of such intellectual property. Such intellectual property and all embodiments thereof shall be promptly delivered to ARS
(i) upon any such commencement of a bankruptcy proceeding upon written request therefor by ARS, unless Axonyx elects to continue to perform all of its obligations under this Agreement or
(ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of Axonyx, upon written request therefor by ARS. 

    Section 5.06.  Termination of Underlying Licenses.  Upon any termination of the NYU Agreement,
this Agreement shall not terminate but Axonyx's rights and obligations hereunder with respect to any Axonyx Patent Rights covered by the NYU Agreement shall be automatically assigned to NYU. 

    Section
5.07.  Effect of Termination.  Termination of this Agreement shall not release either Party from
its obligations accrued prior to the effective date of termination nor deprive either Party from any rights that this Agreement provides shall survive termination. The provisions of Articles V, VI,
VII and VIII hereof, to the extent applicable, shall survive any termination of this Agreement. In the event the license granted to ARS under Section 2.01 hereof terminates for any reason, each
of ARS' sublicensees (excluding its Affiliates) at such time shall continue to have the rights and license set forth in their sublicense agreements; provided,
however, that such sublicensee agrees in writing that Axonyx is entitled to enforce all relevant terms and conditions of such sublicense agreement directly against such
sublicensee. Upon any termination of this Agreement, ARS shall have the right to sell its inventory of Licensed Products for a period of six (6) months from the date of termination provided ARS
complies with the provisions of Sections 3.03-3.10 hereof. 

    Section 5.08.  Cumulative Rights and Remedies.  Any right to terminate this Agreement shall be in
addition to and not in lieu of all other rights or remedies that the Party giving notice of termination may have at law or in equity or otherwise, including without limitation rights under the United
States Bankruptcy Code. 

ARTICLE VI 

REPRESENTATIONS AND WARRANTIES  

    Section 6.01.  Representations and Warranties of Each Party.  Each of Axonyx and ARS hereby
represents, warrants and covenants to the other Party hereto as follows: 

    (a) it
is a corporation duly organized and validly existing under the laws of the state or other jurisdiction of its incorporation or formation; 

    (b) the
execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite corporate action; 

    (c) it
has the power and authority to execute and deliver this Agreement and to perform its obligations hereunder; 

    (d) the
execution, delivery and performance by such Party of this Agreement and its compliance with the terms and conditions hereof do not and will not conflict with or
result in a breach of any of the terms and conditions of, or constitute a default under, (i) a loan agreement, guaranty, financing agreement, agreement affecting a product or other agreement or
instrument binding or affecting it or its property; (ii) the provisions of its charter documents or bylaws; or (iii) any order, writ, injunction or decree of any court or governmental
authority entered against it or by which any of its property is bound; 

    (e) the
execution, delivery and performance of this Agreement by such Party does not require the consent, approval or authorization of, or notice, declaration, filing
or registration with, any 

10

 

governmental or regulatory authority, and the execution, delivery and performance of this Agreement will not violate any law, rule or regulation applicable to such Party; 

    (f)  this
Agreement constitutes such Party's legal, valid and binding obligation enforceable against it in accordance with its terms subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors' rights and to the availability of particular remedies under general equitable
principles; and 

    (g) it
shall comply with all applicable material laws, rules and regulations relating to its activities under this Agreement. 

    Section 6.02.  Axonyx's Representations and Warranties.  Axonyx hereby represents, warrants and
covenants to ARS as follows: 

    (a) to
the best of Axonyx's knowledge, the Axonyx Patent Rights and the Axonyx Know-How are subsisting and are not invalid or unenforceable, in whole or in
part; 

    (b) it
has the full right, power and authority to grant the license granted hereunder in accordance with the terms and conditions of this Agreement; 

    (c) it
has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in and to the Axonyx Patent Rights or the Axonyx
Know-How; 

    (d) to
the best of Axonyx's knowledge, it is the owner or exclusive licensee of the Axonyx Patent Rights and the Axonyx Know-How, all of which are free and
clear of any liens, charges, encumbrances or rights of others to possession or use, and no other person or entity, private or public, other than NYU, has or shall have any claim to an ownership
interest in the Axonyx Patent Rights or the Axonyx Know-How; 

    (e) Axonyx
has obtained any required third-party consents, including any required consent of NYU, to this Agreement and the performance of its obligations hereunder; 

    (f)  to
the best of Axonyx's knowledge, the Axonyx Patent Rights, the Axonyx Know-How and the development, manufacture, use, import, offer to sell and sale
of Licensed Products do not interfere with or infringe any intellectual property or other proprietary or property rights owned or possessed by any third party; 

    (g) there
are no claims, litigation, judgments or settlements against or owed by Axonyx or pending or threatened claims or litigation relating to the Axonyx Patent
Rights or the Axonyx Know-How; and 

    (h) it
has disclosed to ARS all Axonyx Know-How and other relevant information, including, without limitation, all Axonyx Know-How and other
information relating to the Axonyx Patent Rights. 

    Section 6.03.  No Actions to Diminish Rights.  During the Term, each Party will use diligent
efforts not to diminish the rights under the Axonyx Patent Rights, the ARS Patent Rights and the Axonyx Know-How, including without limitation by not committing or permitting any actions
or omissions that would cause the breach of any agreements between itself and third parties relating to such rights. In particular Axonyx shall not commit or permit any actions or omissions that would
cause a breach of the NYU Agreement. 

    Section 6.04.  No Inconsistent Agreements.  Neither Party has in effect and after the Effective
Date neither Party shall enter into any oral or written agreement or arrangement that would be inconsistent with its obligations under this Agreement. 

11

 
ARTICLE VII

INDEMNIFICATION  

    Section 7.01.  Indemnification by ARS.  ARS shall indemnify, defend and hold harmless Axonyx and
its Affiliates, and each of its and their respective employees, officers, directors and agents (each, an "Axonyx Indemnified Party"), from and against any and all liability, loss, damage, cost, and
expense (including reasonable attorneys' fees), subject to the limitations in Section 7.05 (collectively, a "Liability"), sustained, incurred by or imposed upon the Axonyx Indemnified Party
(i) by any third party in connection with the breach by ARS of any covenant, representation or warranty contained in this Agreement or any negligent act or omission or willful misconduct of ARS
in the manufacture, import, use, offer for sale or sale of Licensed Products, or (ii) in connection with its successful enforcement of any of the foregoing, provided,
however, that ARS shall have no obligation to defend, indemnify, and hold harmless hereunder to the extent a Liability arises from the negligence or willful misconduct of an
Axonyx Indemnified Party. 

    Section 7.02.  Indemnification by Axonyx.  Axonyx shall indemnify, defend and hold harmless ARS
and its Affiliates, and each of its and their respective employees, officers, directors and agents (each an "ARS Indemnified Party"), from and against any Liability sustained, incurred by or imposed
upon the ARS
Indemnified Party (i) by any third party in connection with the breach by Axonyx of any covenant, representation or warranty contained in this Agreement or any negligent act or omission or
willful misconduct of Axonyx arising in connection with this Agreement, (ii) arising out of third-party claims (including without limitation infringement) relating to the Axonyx Patent Rights
or Axonyx Know-How; or (iii) in connection with its successful enforcement of any of the foregoing, provided, however, that Axonyx
shall have no obligation to defend, indemnify, and hold harmless hereunder to the extent a Liability arises from the negligence or willful misconduct of an ARS Indemnified Party. 

    Section 7.03.  Conditions to Indemnification.  The obligations of the indemnifying Party under
Sections 7.01 and 7.02 above are conditioned upon the delivery of notice to the indemnifying Party of any potential Liability promptly after the indemnified Party becomes aware of such potential
Liability. The indemnifying Party shall have the right to assume the defense of any action, suit, proceeding, claim or demand ("Action") related to the Liability if it has assumed responsibility for
such Action in writing; provided, however, that if in the reasonable judgment of the indemnified Party, such Action involves an issue or matter that
could have a materially adverse effect on the business operations or assets of the indemnified Party, the indemnified Party may waive its right to indemnity under this Agreement and control the
defense or settlement thereof, but in no event shall any such waiver be construed as a waiver of any indemnification rights such Party may have at law or in equity. If the indemnifying Party defends
the Action, the indemnified Party may participate in (but not control) the defense thereof at its sole cost and expense. The indemnifying Party shall keep the indemnified Party informed of
developments in any such Action. The indemnified Party shall cooperate with the indemnifying Party in the defense or settlement of any such Action. 

    Section 7.04.  Settlements.  Neither Party may settle an Action related to a Liability without the
consent of the other Party if such settlement would impose any monetary obligation on the other Party or require the other Party to submit to an injunction or otherwise limit the other Party's rights
under this Agreement. Any payment made by a Party to settle any such Action shall be at its own cost and expense. 

    Section 7.05.  Limitation of Liability.  With respect to any claim by one Party against the other
Party arising out of an alleged breach of this Agreement, the Parties expressly agree that the liability of such other Party for such breach shall be limited under this Agreement or otherwise at law
or equity to direct damages only and in no event shall a Party be liable for punitive, exemplary or consequential damages with respect to such a claim for breach. 

12

 

    Section 7.06.  Insurance.  Each Party agrees that during the Term it shall maintain insurance
and/or a self-insurance program for liability insurance, including without limitation products liability and contractual liability insurance, that adequately covers such Party's
obligations under this Agreement. It
is understood that such insurance shall not be construed to limit a Party's liability with respect to such obligations. Upon request of the other Party, each Party shall furnish to the other Party
written evidence of such insurance (or financial information that describes the amounts available under any self-insurance facility). 

    Section 7.07.  Indemnification of NYU.  

    7.07.01.  Indemnification.  ARS shall indemnify, defend and hold harmless NYU and its trustees, officers,
medical and professional staff, employees, students and agents and their respective successors, heirs and assigns (the "NYU Indemnified Parties"), against any liability, damage, loss or expense
(including reasonable attorneys' fees and expenses of litigation) incurred by or imposed upon the NYU Indemnified Parties or any one of them in connection with any claims, suits, actions, demands or
judgments arising out of the design, production, manufacture, sale, use in commerce or in human clinical trials, lease or promotion by ARS, its Affiliates or any agent or sublicensee of ARS of any
Patented Product; except for claims arising out of the sole gross negligence of a NYU Indemnified Party. 

    7.07.02.  Limitation on Indemnification.  With respect to a NYU Indemnified Party, ARS' indemnification
obligation under Subsection 7.07.01 above shall apply to any liability, damage, loss or expense whether or not it is attributable to the negligent activities of such NYU Indemnified Party but shall
not apply if such liability, damage, loss or expense is attributable to the sole gross negligence of such NYU Indemnified Party. 

    7.07.03.  Obligation to Provide Attorneys.  ARS agrees, at its own expense, to provide attorneys
reasonably acceptable to NYU to defend against any actions brought or filed against any NYU Indemnified Party with respect to which such NYU Indemnified Party is entitled to indemnification pursuant
to Subsection 7.07.01 hereof, whether or not such actions are rightfully brought. 

    7.07.04.  Indemnification Procedure.  Whenever an event or situation arises which, it is reasonable to
believe, may lead to an indemnification obligation by ARS hereunder, NYU shall give prompt written notice to ARS of such event or situation and, if a claim or demand is made or a suit or action is
brought, NYU and/or the relevant NYU Indemnified Party shall promptly forward a copy of every demand, notice, summons, complaint or other process received by it to ARS. ARS shall assume the defense of
such claim and all costs thereof. ARS shall have the right to negotiate and consent to settlement; provided, however, that the consent of NYU shall be
obtained prior to any settlement of a claim, demand or litigation that involves affirmative action on the part of NYU or any NYU Indemnified Party or the payment of money for which ARS has not made
satisfactory arrangements for reimbursement of NYU or such NYU Indemnified Party. The NYU Indemnified Party shall cooperate reasonably with ARS in all respects in all phases of a claim or demand and
any proceeding arising
therefrom, including, but not limited to, assisting in the conduct of lawsuits, assisting in enforcing an agreement of contribution or indemnity against a third party, providing witnesses, and making
records and information available to ARS. The NYU Indemnified Party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such NYU Indemnified Party unless the employment of such counsel has been specifically authorized in writing by ARS. ARS shall not be responsible
for any settlement of any such claim, demand, suit or action effected without its consent. 

    7.07.05.  Insurance.  At such time as any Patented Product is being commercially distributed or sold
(other than for the purpose of obtaining Health Registrations) by ARS, any Affiliate or any 

13

 

agent or sublicensee of ARS, ARS shall at its sole cost and expense, procure and maintain policies of comprehensive general liability insurance in amounts not less than $2,000,000 per incident and
$5,000,000 annual aggregate. Such comprehensive general liability insurance shall provide (i) product liability coverage and (ii) broad form contractual liability coverage for ARS'
indemnification obligations set forth in this Section 7.07. If ARS elects to self-insure all or part of the limits described above (including deductibles or retentions which are in
excess of $250,000 annual aggregate), such self-insurance program must be acceptable to NYU. The minimum amounts of insurance coverage required under this Subsection 7.07.06 shall not be
construed to create a limit of ARS' liability with respect to its indemnification obligations set forth in this Section 7.07. 

    7.07.06.  Change in Insurance Coverage.  ARS shall provide NYU with written evidence of such insurance
upon request of NYU. ARS shall provide NYU with written notice at least sixty (60) days prior to the cancellation, non-renewal or material change in such insurance; if ARS does not
obtain replacement insurance providing comparable coverage within such sixty (60) day period, NYU shall have the right to terminate the NYU Agreement effective at the end of such sixty
(60) day period without notice or any additional waiting periods. 

    7.07.07.  Term of Insurance Coverage.  ARS shall maintain such comprehensive general liability insurance
beyond the expiration or termination of this Agreement during (i) the period that any Patented Product is being commercially distributed or sold (other than for the purpose of obtaining Health
Registrations) by ARS, any Affiliate or any agent or sublicensee of ARS and (ii) a reasonable period after the period referred to in subsection (i) above which in no event shall be less
than fifteen (15) years. 

    7.07.08.  Reimbursement by Axonyx.  As ARS' indemnification, defense and hold harmless obligations
pursuant to this Section 7.07 have been assumed by ARS solely to satisfy Axonyx's obligations to NYU under the NYU Agreement, Axonyx will reimburse ARS upon demand for any liabilities, damage,
losses, costs or expenses that ARS sustains or incurs in connection with such indemnification, hold harmless and defense obligations. 

ARTICLE VIII

MISCELLANEOUS  

    Section 8.01.  Confidentiality Obligation.  Axonyx shall use only in accordance with this
Agreement and shall not disclose to any third party, without ARS' prior written consent, any ARS Know-How or Axonyx Know-How, and ARS shall use only in accordance with this
Agreement and shall not disclose to any third party, without Axonyx's prior written consent, any Axonyx Know-How. The foregoing obligations shall survive the expiration or termination of
this Agreement for a period of ten (10) years. These obligations shall not apply to information that: 

    (a) is
known by the receiving Party at the time of its receipt, other than through a prior disclosure by the disclosing Party, as documented by the receiving Party's
prior written records; 

    (b) is
at the time of disclosure or thereafter becomes published or otherwise part of the public domain without breach of this Agreement by the receiving Party; 

    (c) is
subsequently disclosed to the receiving Party by a third party who has the right to make such disclosure; 

    (d) is
developed by the receiving Party independently of information received from the disclosing Party and such independent development can be demonstrated by the
receiving Party with written or other documentary evidence; 

14

 

    (e) is disclosed to Regulatory Authorities or other governmental agencies in order to obtain patents or to gain approval to conduct clinical trials or to market a
Licensed Product pursuant to this Agreement,
but such disclosure may be made only to the extent reasonably necessary to obtain such patents or authorizations; 

    (f)  is
disclosed to agents, consultants, and/or other third parties to effect the development and commercialization of Licensed Products pursuant to this Agreement on
the condition that such third parties agree to be bound by confidentiality obligations consistent with those contained in this Agreement; or 

    (g) is
required to be disclosed by law or court order, provided, however, that notice is promptly delivered to the other
Party in order to provide such Party an opportunity to seek a protective order or other similar order with respect to such information and the Party required to disclose thereafter shall disclose only
the minimum information required to be disclosed in order to comply with the request, whether or not a protective order or other similar order is obtained by the other Party, and shall use its best
efforts to have confidential treatment accorded to the disclosed information. 

Subsections
8.01 (a), (b), (c), (d) and (f) above shall not apply to Axonyx with respect to the Axonyx Know-How. 

    Section 8.02.  No Publicity.  A Party may not use the name of the other Party in any publicity or
advertising and may not issue a press release or otherwise publicize or disclose any information related to this Agreement, or the terms or conditions hereof, without the prior written consent of the
other Party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, either Party shall have the right to disclose information concerning this Agreement to the extent
required, in the reasonable opinion of such Party's legal counsel, by applicable federal or state securities laws, or any rule or regulation of any nationally recognized securities exchange, but only
after providing the other Party reasonable notice of such intended disclosure, consulting with the other Party to determine the reasonable nature and scope of such intended disclosure, and, if so
requested by the other Party, requesting the most stringent confidentiality restrictions it is reasonably possible to secure. 

    Section 8.03.  Publication.  In the event ARS, its employees or consultants wish to publish or
present research related to the Axonyx Know-How or the Axonyx Patent Rights, ARS shall deliver to Axonyx a copy of the proposed written publication or an outline of a proposed oral
disclosure at least forty-five (45) days prior to submission for publication or presentation. For the avoidance of doubt, Axonyx shall have no right to publish or present any
research related to the Axonyx Know-How or the Axonyx Patent Rights. Axonyx shall have the right (a) to propose modifications of the publication or presentation for patent reasons,
trade secret reasons or business reasons or (b) to request a reasonable delay in the publication or presentation in order to protect patentable information. If Axonyx requests a delay, ARS
shall delay submission or presentation for a period of sixty (60) days to enable patent applications protecting each Party's rights in such information to be filed. If Axonyx requests
modifications to the
publication or presentation, ARS shall edit such publication or presentation to prevent disclosure of trade secret or proprietary business information prior to submission of the publication or
presentation. 

    Section 8.04.  Assignment.  Neither this Agreement nor any or all of the rights and obligations of
a Party hereunder shall be assigned, delegated, sold, transferred, sublicensed (except as otherwise provided herein) or otherwise disposed of, by operation of law or otherwise, to any third party
other than an Affiliate of such Party, without the prior written consent of the other Party, and any attempted assignment, delegation, sale, transfer, sublicense or other disposition, by operation of
law or otherwise, of this Agreement or of any rights or obligations hereunder contrary to this Section 8.04 shall be a material breach of this Agreement by the attempting Party, and shall be
void and without force or effect; provided, however, either Party, without such consent, may assign the Agreement and its rights 

15

 

and obligations hereunder in connection with the transfer or sale of all or substantially all of its assets or in the event of its merger or consolidation or change of control or similar transaction.
This Agreement shall be binding upon, and inure to the benefit of, each Party, its Affiliates, and its permitted successors and assigns. Each Party shall be responsible for the compliance by its
Affiliates with the terms and conditions of this Agreement. 

    Section 8.05.  Governing Law.  This Agreement shall be governed, interpreted and construed in
accordance with the laws of the Commonwealth of Massachusetts, without giving effect to conflict of law principles. 

    Section 8.06.  Dispute Resolution.  

    8.06.01.  Management Meeting.  In the event that ARS and Axonyx are unable, after exercising good faith
efforts, to reach agreement on any disputes, questions or claims relating to this Agreement (the "Dispute"), then upon written notice to the other Party, the Dispute shall be referred to the Chief
Executive Officer of ARS and the Chief Executive Officer of Axonyx, or other members of senior management of such Parties, each with full authority from the Chief Executive Officer to settle the
Dispute. The Parties' representatives shall meet within fifteen (15) Business Days of receipt of such notice and use good faith efforts to reach agreement on the Dispute. If the representative
of either Party intends to be accompanied at the meeting by counsel, the other Party shall be given at least five (5) Business Days notice of such intention and may also be accompanied by
counsel. All negotiations pursuant to this Subsection 8.06.01 shall be confidential and treated as compromise and settlement negotiations and shall not be admissible in any arbitration or other
proceeding. In the event that the representatives of ARS and of Axonyx are unable to reach agreement on the Dispute within fifteen (15) Business Days following the meeting, either Party may by
notice to the other Party submit the Dispute to arbitration in accordance with the provisions below. 

    8.06.02.  Arbitration.  The Dispute shall be finally settled by arbitration in accordance with the Center
for Public Resources Rules for Non-Administered Arbitration of International Disputes (and the Center for Public Resources shall serve, if necessary, as the "Neutral Organization") by
three arbitrators appointed in accordance with such Rules who shall be impartial and disinterested individuals who do not have a direct or indirect interest in either Party or the subject matter of
the arbitration. The Parties agree that notices served in the manner provided herein shall be valid for such arbitration. Any such arbitration shall be conducted in English and shall be held in
Boston, Massachusetts. The arbitrators shall apply the substantive law that the Parties have chosen as the governing law pursuant to Section 8.05 hereof. 

    8.06.03.  Arbitration Panel.  Within fifteen (15) Business Days after the receipt of the notice
provided for in Subsection 8.06.01 of this Agreement, each Party shall appoint an independent expert, knowledgeable in the field of the Dispute, to serve on the arbitration panel. The two independent
experts so appointed by the Parties, shall, within fifteen (15) Business Days thereafter, appoint a neutral third independent expert, knowledgeable in the field of the Dispute. Such neutral
third independent expert shall serve as the chairperson of the arbitration panel. Each of the members of the arbitration panel shall be required to sign a confidentiality agreement, acceptable in form
to both Parties, with respect to any information provided by either Party during the arbitration procedure. 

    8.06.04.  Statement.  Within fifteen (15) Business Days after the chairperson of the arbitration
panel is appointed, each Party shall submit, to each member of the arbitration panel and to the other Party, a written statement setting forth the relevant facts with respect to the Dispute in
reasonable detail and arguments and documentation supporting such Party's position with respect to the resolution of the Dispute. 

16

 

    8.06.05.  Decision.  Pending the issuance of the arbitrators' decision, the Parties shall continue to
operate under the Agreement as it existed on the date the Dispute notice was given; provided, however, that the arbitrators' decision shall be
retroactive to such date. The Parties hereby exclude any right of appeal to any court on the merits of the Dispute. Judgment on the award may be entered in any court having jurisdiction over the award
or any of the Parties or their assets The award may grant any relief appropriate under the applicable law, including without limitation declaratory relief and/or specific performance. 

    8.06.06.  Costs.  Each Party shall bear its own costs incurred in connection with the arbitration
(including without limitation the fees and expenses of attorneys and experts, the travel and other expenses of witnesses, as well as the fees and expenses in any collateral actions, such as actions
for enforcement),  provided, however, that the nonprevailing Party shall bear the fees, costs and expenses of the arbitration panel. 

    Section 8.07.  Waiver.  No failure on the part of either Party to exercise, and no delay in
exercising, any right shall operate as a waiver thereof, and a waiver of any breach or any provision of this Agreement shall not be construed as a continuing waiver of other breaches of the same or
other provisions of this Agreement. 

    Section 8.08.  Independent Relationship.  Nothing herein contained shall be deemed to create an
employment, agency, joint venture or partnership relationship between the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose liability upon one Party
for the act or failure to act of the other Party. Neither Party shall have any power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other
Party, or to bind the other Party in any respect whatsoever. 

    Section 8.09.  Entire Agreement; Amendment.  This Agreement, including the Schedules attached
hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto with
respect to the subject hereof and supersedes and terminates all prior agreements and understandings between the Parties with respect to such subject. There are no covenants, promises, agreements,
warranties, representations, conditions or understandings, either oral or written, between the Parties with respect to this subject other than as are set forth herein. No subsequent alteration,
amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to a writing referencing this Agreement and signed by an authorized representative of each Party. 

    Section 8.10.  Notices.  Each notice required or permitted to be given or sent under this
Agreement shall be given by facsimile transmission (with confirmation copy by overnight courier) or by overnight courier to the Parties at the address and facsimile numbers indicated below. 

If
to Axonyx Inc., to: 

825
3rd Avenue, 40th Floor

New York, New York 10022 U.S.A.

Attention: Mr. Michael Strage

Facsimile No.: (212) 688-4843 

17

 

If to Applied Research Systems ARS Holding N.V., to 

c/o
ABN AMRO Trust Company (Curacao) N.V.

Pietermaai 15

P.O. Box 4905

Curacao

Netherlands Antilles

Attention: Managing Director

Facsimile No.: 599-9-461-3395 

With
a copy to: 

Serono
International S.A.

15bis Chemin des Mines

1202 Geneva, Switzerland

Attention: General Counsel

Facsimile No.: 41-22-739-3070 

Any
such notice shall be deemed to have been received on the earlier of the date actually received or three (3) days after the date of deposit with the overnight courier company. Either Party
may change its address or its facsimile number by giving the other Party written notice, delivered in accordance with this Section 8.10. 

    Section 8.11.  Force Majeure.  Failure of any Party to perform its obligations under this
Agreement (except the obligation to make payments when properly due) shall not subject such Party to any liability or place it in breach of any term or condition of this Agreement to the other Party
if such failure is caused by any cause beyond the reasonable control of such nonperforming Party, including without limitation acts of God, fire, explosion, flood, drought, war, riot, sabotage,
embargo, strikes or other labor trouble, failure in whole or in part of suppliers to deliver on schedule materials, equipment or machinery, interruption of or delay in transportation, a national
health emergency or compliance with any order or regulation of any government entity acting with color of right; provided, however, that the Party
affected shall promptly notify the other Party of the condition constituting force majeure as defined herein and shall exert reasonable efforts to eliminate, cure and overcome any such condition and
to resume performance of its obligations hereunder with all possible speed. If a condition
constituting force majeure as defined herein exits for more than ninety (90) consecutive days, the Parties shall meet to negotiate a mutually satisfactory solution to the problem, if
practicable. 

    Section 8.12.  Severability.  If any provision of this Agreement is declared illegal, invalid or
unenforceable by a court having competent jurisdiction, it is mutually agreed that this Agreement shall endure except for the part declared invalid or unenforceable by order of such court;  provided, however, that if as a result of such declaration the terms and conditions of this Agreement are materially altered, the Parties shall, in good
faith, renegotiate the terms and conditions of this Agreement to find a reasonable substitute for such illegal, invalid or unenforceable provision in light of the intent of this Agreement. 

    Section 8.13.  Captions.  The captions of this Agreement are solely for the convenience of
reference and shall not affect its interpretation. 

    Section 8.14.  Further Actions.  Each Party agrees to execute, acknowledge and deliver such
further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

    Section 8.15.  Counterparts.  This Agreement shall become binding when any one or more
counterparts hereof, individually or taken together, shall bear the signatures of each of the Parties hereto. This Agreement may be executed in any number of counterparts, each of which shall be an 

18

 

original as against either Party whose signature appears thereon, but all of which taken together shall constitute but one and the same instrument. 

    Section 8.16.  No Third-Party Beneficiary.  Nothing in this Agreement, express or implied, is
intended to confer on any person other than the Parties hereto, or their respective permitted successors and assigns, any benefits, rights or remedies. 

    Section 8.17.  No Sale or Other Disposal of Axonyx Patent Rights or Axonyx
Know-How.  Without ARS' prior written consent, which shall not be unreasonably withheld or delayed, Axonyx shall not sell, transfer, assign, or
otherwise dispose of, or purport to sell, transfer, assign or otherwise dispose of, any right, title or interest in, to and under the Axonyx Patent Rights or the Axonyx Know-How that is
necessary or useful to make, have made, import, use, offer to sell or sell Licensed Products. 

    Section 8.18.  No Strict Construction.  This Agreement has been prepared jointly and shall not be
strictly construed against either Party. 

    IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and delivered as of the day and year first above written. 

	AXONYX, INC.	 	APPLIED RESEARCH SYSTEMS ARS HOLDING N.V.
	

By:	
 	

/s/ MARVIN HAUSMAN, M.D.   
	
 	

By:	
 	

/s/ G.W.A. WARDENIER   

	Name:	 	Marvin Hausman
	 	Name:	 	G.W.A. Wardenier

	Title:	 	President and CEO
	 	Title:	 	Managing Director

	

 	
 	

 	
 	
By:	
 	

/s/ U.M. DAELMAN-GEERDINK   

	 	 	 	 	Name:	 	U.M. Daelman-Geerdink

	 	 	 	 	Title:	 	Managing Director

19

 
 
 
 

SCHEDULE 1.05
  
    AXONYX PATENT RIGHTS    
  

	Country
 
	 	Name
	 	Status
	 	Application

Number
	 	Application

Date
	 	Grant

Number
	 	Grant

Date
	 	Expiry

	AU	 	AMYLOID AGGREGATION INHIBITORS	 	ALLOWED	 	61129/96	 	06/06/1996	 	 	 	 	 	06/06/2016
	CA	 	AMYLOID AGGREGATION INHIBITORS	 	PENDING	 	2222690	 	06/06/1996	 	 	 	 	 	06/06/2016
	EP	 	AMYLOID AGGREGATION INHIBITORS	 	PENDING	 	96918482.9	 	06/06/1996	 	 	 	 	 	06/06/2016
	JP	 	AMYLOID AGGREGATION INHIBITORS	 	PENDING	 	502245/98	 	06/06/1996	 	 	 	 	 	06/06/2016
	US	 	AMYLOID AGGREGATION INHIBITORS	 	PENDING	 	766596	 	12/12/1996	 	 	 	 	 	06/06/2015
	US	 	AMYLOID AGGREGATION INHIBITORS	 	PENDING/ ABANDONED	 	478326	 	06/06/1995	 	 	 	 	 	06/06/2015
	US	 	AMYLOID AGGREGATION INHIBITORS	 	GRANTED	 	630045	 	10/04/1996	 	5948763	 	07/09/1999	 	06/06/2015
	WO	 	AMYLOID AGGREGATION INHIBITORS	 	NATIONAL'D	 	96US10220	 	06/06/1996	 	 	 	06/06/2016	 	 
	US	 	AMYLOID AGGREGATION INHIBITORS ANALOGS	 	PENDING	 	 	 	05/11/1999	 	 	 	 	 	05/11/2019

20

QuickLinks

Exhibit 10.9

LICENSE AGREEMENT

SCHEDULE 1.05

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]