Document:

GENERAL COLLABORATION AGREEMENT

 EXHIBIT 4.2 
  
 General Collaboration Agreement 
 Between 
 McGill University 
 and 
 Adherex Technologies, Inc. 
  

	1	PREAMBLE 

  

	 	1.1	Identification of the Parties 

  
 This GENERAL COLLABORATION AGREEMENT (“the “AGREEMENT”) is entered into between McGill University (hereinafter referred to as “McGILL”), an
institution of learning with an office at 3550 University Street, Montreal, Quebec, H3A 2A7, and Adherex Technologies Inc. a corporation incorporated and existing under the laws of Canada, having its principal office at 600 Peter Morand Crescent,
Suite 340, Ottawa, Ontario K1G 5Z3, (hereinafter referred to as “ADHEREX”). 
  
 This AGREEMENT is effective upon signature of both parties. This AGREEMENT supersedes all prior agreements or understandings between McGILL and ADHEREX concerning the LICENSED TECHNOLOGY. 
  

	 	1.2	Background of the Agreement - Licensee Representations 

  
 ADHEREX desires to enter into collaboration with McGILL for the purpose of further research, and for developing and commercializing the TECHNOLOGY IN THE FIELD, and to
obtain exclusive license rights to the LICENSED PATENT in the TERRITORY under the terms and conditions of this AGREEMENT. 
  

	 	1.3	Background of the Agreement — McGILL Representations 

  
 McGILL, which represents to be the owner of the entire right, title and interest in the LICENSED PATENT, desires to grant an exclusive license in the LICENSED PATENT to
ADHEREX in accordance to the terms of this AGREEMENT, and to enter into collaboration with ADHEREX for the purpose of further research, and for developing and commercializing the TECHNOLOGY IN THE FIELD under the terms and conditions of this
AGREEMENT. 
  
 Now Therefore, in consideration of the foregoing premises,
the mutual covenants and obligations hereinafter contained, and other good and valuable consideration, McGILL and ADHEREX agree as follows: 
  

	2	DEFINITIONS 

  

	 	2.1	Usage 

  
 For the purposes of this AGREEMENT, the following terms, words, and phrases, when used in the singular or plural, shall have the meanings given to them in this Section. 

	 	2.2	McGill University 

  
 “McGill University,” as abbreviated “McGILL,” means the institution of education having its principal office at 853 Sherbrooke Street, Montreal, Qc, H3A 2T6, and shall also include all McGILL
AFFILIATES. McGILL is the licensor of the LICENSED PATENT in this AGREEMENT. 
  

	 	2.3	Adherex Technologies Inc. 

  
 “ADHEREX TECHNOLOGIES Inc.,” as abbreviated “ADHEREX,” means the Corporation by that name having its principal office at 600 Peter Morand Crescent,
Suite 340, Ottawa, Ontario K1G 5Z3, and shall include all ADHEREX AFFILIATES. ADHEREX is the licensee of the LICENSED PATENT in this AGREEMENT. 
  

	 	2.4	Affiliate 

  
 “AFFILIATE” means, with respect to a party of this AGREEMENT, any ENTITY which directly or indirectly controls or is controlled by or is under common control with such party. The term “control”
means possession, direct or indirect, of the powers to direct or cause the direction of the management or policies of the ENTITY; whether through ownership of equity participation, voting securities, or beneficial interests; by contract or by
agreement or otherwise; 
  

	 	2.5	Calendar Quarter 

  
 “CALENDAR QUARTER” means a period of three (3) months in the Gregorian calendar ending on the last day of March, June, September, or December. 
  

	 	2.6	Calendar Year 

  
 “CALENDAR YEAR” means a period of twelve (12) months beginning on January 1 and ending on December 31. 
  

	 	2.7	Effective Date 

  
 “EFFECTIVE DATE” means the date upon which this AGREEMENT is executed and dated by all the parties hereto. In the event that all of the parties do not execute and date this AGREEMENT on the same date, the
EFFECTIVE DATE shall be the date upon which the last party hereto executes and dates this AGREEMENT. 
  

	 	2.8	Field 

  
 “FIELD” means agents and methods for modulating classical cadherin-mediated processes including, without restricting the foregoing, the HAV sequence and uses thereof, any molecule designed to interact with
or mimic the HAV sequence, and any other molecule that targets the classical cadherins. 
  

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	 	2.9	Gross Revenues 

  
 “GROSS REVENUES” means all incomes, revenues, receipts, monies, up-front payments, fees and considerations paid to ADHEREX by a third party and that are directly or indirectly attributable to: (i) the sale,
by ADHEREX, of PRODUCTS IN THE FIELD; (ii) the provision of SERVICES by ADHEREX; (iii) option agreements, licenses or sublicenses granted by ADHEREX to a third party with respect to PRODUCTS IN THE FIELD or to the TECHNOLOGY IN THE FIELD; (iv)
manufacturing payments for PRODUCTS IN THE FIELD, whether received in cash or by way of other benefit, advantage, or concession. GROSS REVENUES shall however exclude all revenues from research and development agreements and all material transfer
agreements, provided that such agreements do not include license grants or commercialization rights with respect to any aspect of the TECHNOLOGY IN THE FIELD. If received in a form other than cash, the applicable revenue will be the monetary
equivalent or FAIR MARKET VALUE of the benefit, advantage, or concession. For greater certainty, GROSS REVENUES do not include amounts paid to Adherex Technologies, Inc from any AFFILIATE, amounts paid by Adherex Technologies, Inc to any AFFILIATE
or any amount paid from one AFFILIATE to another AFFILIATE. 
  

	 	2.10	Earned Royalties 

  
 “EARNED ROYALTIES” shall have the meaning given in clause 6.1 herein. 
  

	 	2.11	Entity 

  
 “ENTITY” means a corporation, an association, a joint venture, a partnership, a trust, a business, including an agency, or any other organization that can exercise independent legal standing. 
  

	 	2.12	Fair Market Value 

  
 “FAIR MARKET VALUE” means the gross sales price or value which ADHEREX would realize from an unaffiliated, unrelated buyer in an arm’s length sale or exchange of consideration for an identical product
or service sold or provided in the same quantity and at the same time and place as the sale or exchange for which the FAIR MARKET VALUE is to be determined. 
  

	 	2.13	General Collaboration Agreement 

  
 “GENERAL COLLABORATION AGREEMENT” or “AGREEMENT” means this general collaboration agreement. This GENERAL COLLABORATION AGREEMENT is between McGill
University and Adherex Technologies, Inc. Also included in this AGREEMENT are all Exhibits attached hereto and all amendments that may be made thereto. 
  

	 	2.14	Licensed Patent 

  
 “LICENSED PATENT” means, collectively: (i) US Patent Number 6,031,072, filed on July 11, 1997 entitled “Compounds and Methods for Modulating Cell Adhesion”; (ii) the US non-provisional patent
application number 09/057,363 filed on April 8, 1998, entitled “Compounds and Methods for Inhibiting the Interaction between alpha-catenin and beta-catenin”, (iii) any other patent application in the FIELD, based on inventions made jointly
by ADHEREX and 
  

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 McGILL, arising from research in the FIELD sponsored by ADHEREX pursuant to this AGREEMENT, (iv) any patent which shall
issue on any of the above-described patent applications, or on any improvements thereof, and any reissue and extension thereof; (v) Any divisional, continuation or substitute patent application which shall be based on any of the above-described
patent application or on any such patent; (vi) Patents and patent applications corresponding to each of the above-described patents and patent applications which are issued, filed, or to be filed in any and all foreign countries, any patents
(including but not limited to patents of importation, improvement, or addition, utility models and inventors’ certificates) which shall subsequently issue thereof and (vii) any renewals, continuations, continuations-in-part, substitutions,
inventors’ certificates, divisions, national, international and PCT filings, reissues, reexaminations or extensions thereof. 
  

	 	2.15	Licensed Product 

  
 “LICENSED PRODUCT” shall specifically include a composition of compounds and elements where one or more of the compounds and/or elements or the combination of compounds and/or elements is produced,
manufactured, sold, leased, used or practiced subject to and within the scope of the LICENSED PATENT claims or the description of the LICENSED TECHNOLOGY. 
  

	 	2.16	Licensed Technology 

  
 “LICENSED TECHNOLOGY” means all technology improvements within the scope of the LICENSED PATENT; including, without limitation, computer programs, data, apparatus, whether patentable (but not effectively
patented) or unpatentable, owned or controlled by McGILL, as of the EFFECTIVE DATE. 
  

	 	2.17	Patents In The Field 

  
 “PATENTS IN THE FIELD” means, collectively; (i) LICENSED PATENTS; (ii) the US non-provisional patent application number 09/113,977, filed July 10, 1998, entitled “Compounds and Methods for Modulating
Adhesion Molecule Function”, and (iii) the US non-provisional patent application number 09/491,078, filed January 24, 2000, entitled “Peptidomimetic Modulators of Cell Adhesion”; (iv) any patent which shall issue on any of the
above-described patent applications, or on any improvements thereof, and any reissue and extension thereof; (v) Any divisional, continuation or substitute patent application which shall be based on any of the above-described patent application or on
any such patent; (vi) Patents and patent applications corresponding to each of the above-described patents and patent applications which are issued, filed, or to be filed in any and all foreign countries, any patents (including but not limited to
patents of importation, improvement, or addition, utility models and inventors’ certificates) which shall subsequently issue thereof as well as (vii) any renewals, continuations, continuations-in-part, substitutions, inventors’
certificates, divisions, national, international and PCT filings, reissues, reexaminations or extensions thereof. 
  

	 	2.18	Product(s) In The Field 

  
 “PRODUCT(S) IN THE FIELD” shall specifically include any composition(s) of compounds and elements where one or more of the compounds or the combination of
compounds and/or elements is produced, manufactured, used or practiced subject to and within the scope of the PATENTS IN THE FIELD claims or description of the TECHNOLOGY IN THE FIELD. 
  

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	 	2.19	Technology in the Field 

  
 “TECHNOLOGY IN THE FIELD” means the PATENTS IN THE FIELD, all technology improvements, and intellectual property, within the scope of the PATENTS IN THE FIELD;
including, without limitation, inventions, computer programs, data, apparatus, whether patentable or unpatentable, owned or controlled by ADHEREX or McGILL, as of the EFFECTIVE DATE. 
  

	 	2.20	Net Sales 

  
 “NET SALES” means the GROSS REVENUES less qualifying costs directly attributable to such GROSS REVENUES and actually allowed and borne by ADHEREX. Such qualifying costs shall be limited to costs of the
following: 
  
 Discounts and allowances actually shown on the
invoice; 
  
 Packaging; 
  
 Prepaid outbound transportation expenses; 
  
 Handling charges; 
  
 Taxes; including sales, use, turnover, excise, import, export, and other
taxes or duties, separately billed or invoiced, and borne by ADHEREX, imposed by a government agency on such use, sales, lease, or transfer; 
  
 Credits, allowances or refunds given on account of returned goods; 
  
 Agents’ commissions paid for the sale of PRODUCTS IN THE FIELD; 
  
 Bona fida rebates; 
  
 Credit refunds, or uncollected amounts, provided however that, with respect
to such uncollected amounts, ADHEREX has taken all commercially prudent steps necessary to collect such amounts; 
  
 PRODUCTS IN THE FIELD used for quality control testing for the purposes of verifying aspects of performance, e.g. sensitivity, specificity, stability,
etc., either by ADHEREX or through ADHEREX’s collaborators; 
  
 Any consideration received for the use of or the sale, lease or transfer made for the purpose of obtaining regulatory approval of any PRODUCTS IN THE FIELD including, without limitation, providing samples for clinical trials. 
  

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	 	2.21	Service 

  
 “SERVICE” means, if used as a noun, any use of the TECHNOLOGY IN THE FIELD to facilitate the desires of another party. 
  

	 	2.22	Territory 

  
 “TERRITORY” means the World. 
  

	3	LICENSE RIGHTS GRANTED/RESERVED 

  

	 	3.1	Grant of Rights 

  
 Subject to the terms and conditions of this AGREEMENT, McGILL hereby grants to ADHEREX exclusive royalty bearing license rights to practice in the FIELD, in the TERRITORY, the LICENSED PATENT for the term of the
LICENSED PATENT, with the right to manufacture, have manufactured, use, sell, lease or otherwise exploit or transfer, LICENSED PRODUCT, and non-exclusive royalty bearing license rights to practice in the FIELD, in the TERRITORY, the LICENSED
TECHNOLOGY for the term of the AGREEMENT, with the right to manufacture, have manufactured, use, sell, lease or otherwise exploit or transfer LICENSED PRODUCT. Notwithstanding the rights granted hereunder, University shall retain the right to use
the LICENSED PATENT for non-commercial academic and scholarly purposes, subject to confidentiality requirements. 
  

	 	3.2	Rights to Sublicense 

  
 The license rights granted under this AGREEMENT shall specifically include the right for ADHEREX to grant sublicenses to the LICENSED PATENT and the LICENSED TECHNOLOGY. ADHEREX agrees that any sublicense it grants to
the LICENSED PATENT or the LICENSED TECHNOLOGY to any third party shall be granted under the following conditions: 
  
 (a) For the purposes of ensuring that McGILL’s rights under section 5 and 6 of this AGREEMENT are respected, any sublicense agreement proposed by
ADHEREX that includes the right to grant sublicenses must be approved in writing by McGILL prior to its execution. McGILL’s consent shall not be unreasonably withheld; 
  
 (b) Upon termination of this Agreement and provided the obligations of ADHEREX pursuant to sections 5.3 and 5.5 of this
Agreement have been satisfied within sixty (60) days following termination, McGILL will honour any sublicense granted by ADHEREX, but only in respect of the grant of rights in relation to the LICENSED PATENT and LICENSED TECHNOLOGY, provided any
sublicensee availing itself of such right agrees to be bound in respect of McGILL, by the terms of its sublicense with ADHEREX relating to the payment of royalties and fees, including, without limiting the generality of the foregoing, provisions
dealing with term, reporting, default and breach, and termination. Sublicensees shall have no obligation to McGILL to keep their sublicenses in force, in which case the sublicense shall immediately terminate and sublicensee shall immediately cease
to use, manufacture or have manufactured, sell, lease of otherwise exploit or transfer the LICENSED PATENT and LICENSED 
  

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 TECHNOLOGY. Should a sublicensee intend to continue to use, manufacture or have manufactured, sell, lease or otherwise
exploit or transfer the LICENSED PATENT or LICENSED TECHNOLOGY, it shall provide McGILL with written notice of such intent, along with a copy of the sublicense agreement to which it is a party within sixty (60) days of termination of this Agreement.
The above shall be part of all sublicense agreements. 
  
 (c)
Within thirty (30) days after the execution of a sublicense agreement, as authorized herein, ADHEREX shall forward to McGILL a fully executed copy of such sublicense agreement, which shall be treated by McGILL as being confidential information of
ADHEREX and of the relevant sublicensee. In addition to providing McGILL with a copy of the executed sublicense agreement, should such sublicense agreement be written in a language other than English and French, ADHEREX shall provide McGILL with an
English translation of the sublicense agreement. 
  
 (d) The
“Research and License Agreement” sublicense entered into and made on August 17, 2000 by and among BIOCHEM PHARMA INC., and ADHEREX, is deemed to be in accordance with the terms and conditions of this AGREEMENT. In the event of termination
of this AGREEMENT ADHEREX shall exert its best effort to cause BIOCHEM PHARMA INC., to stop using, manufacturing or having manufactured, selling, leasing or otherwise exploiting or transferring the LICENSED PATENTS, and LICENSED TECHNOLOGY, unless
BIOCHEM PHARMA INC. agrees to comply with section 3.2 (b). 
  

	4	TERM AND TERMINATION 

  

	 	4.1	Term of Agreement 

  
 The term of this AGREEMENT shall commence on its EFFECTIVE DATE and shall end September 23, 2028, unless it earlier terminates by operation of law. 
  

	 	4.2	ADHEREX’s Rights to Termination 

  
 After September 25, 2006, ADHEREX may terminate this AGREEMENT, by giving written notice of its intent to terminate at least sixty (60) days prior to actual termination
provided that no EARNED ROYALTIES are due or are being earned as of the date of termination. ADHEREX may not terminate this AGREEMENT for the purpose of, or in a way that would deprive McGILL of future EARNED ROYALTIES. 
  
 Upon any material breach of or default under this AGREEMENT by McGILL, ADHEREX may terminate
this GENERAL COLLABORATION AGREEMENT. 
  
 ADHEREX shall give McGILL written notice
of termination prior to terminating this GENERAL COLLABORATION AGREEMENT. Such notice shall state the cause(s) for termination and the procedures, if any, that ADHEREX considers that McGILL must follow to remedy such a breach. McGILL shall have
sixty (60) days after the effective date of the notice to remedy the stated cause(s) for termination. 
  
 Any disagreements between the parties on whether or not the default has been remedied, shall be subject to Dispute Resolution pursuant to clause 12.2 herein. In the event that McGILL does not 
  

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 attempt to remedy the default, this LICENSE AGREEMENT shall become fully paid up and ADHEREX shall then have an
unrestricted right to the LICENSED TECHNOLOGY, including the LICENSED PATENTS. 
  

	 	4.3	McGILL’s Rights to Termination 

  
 Upon any material breach of or default under this AGREEMENT by ADHEREX, McGILL may terminate this AGREEMENT. 
  
 McGILL shall give ADHEREX written notice of termination prior to terminating this AGREEMENT. Such notice shall state the cause(s) for
termination and the procedures, if any, that McGILL considers that ADHEREX must follow to remedy such a breach. ADHEREX shall have sixty (60) days after the effective date of the notice to remedy the stated cause(s) for termination. 
  
 Any disagreements between the parties on whether or not the default has been remedied, shall
be subject to Dispute Resolution pursuant to clause 12.2 herein. In the event that ADHEREX does not attempt to remedy the default, the AGREEMENT and all rights granted ADHEREX, shall automatically terminate at the end of the sixtieth (60) day
following the giving of the notice described in the previous paragraph. 
  
 In the
event ADHEREX ceases conducting business in a normal course, becomes insolvent, makes a general assignment for the benefit of creditors, suffers or permits the appointment of a receiver for its business or assets, or avails itself of, or becomes
subject to, any proceeding under the Federal bankruptcy Act or any other statute of any state or country relating to insolvency or the protection of creditor rights, this AGREEMENT shall immediately and automatically terminate at the occurrence of
any such event. 
  

	5	LICENSING CONSIDERATIONS 

  

	 	5.1	Equities 

  
 Within sixty (60) days following the EFFECTIVE DATE, ADHEREX shall issue to McGILL 2,542,084 Common Shares of Adherex Technologies Inc. common stock equivalent to 10.6% of the total issued preferred and common shares.

  

	 	5.2	Diligence Payments 

  
 If ADHEREX or a sublicensee authorised hereunder has not filed an investigational new drug (IND) or similar application with the Canadian Health and Welfare Canada (Health Protection Branch) or, the U.S. Food and Drug
Administration, or the European equivalent or any other recognized agency, relating to a PRODUCT IN THE FIELD, prior to September 23, 2002, ADHEREX shall pay McGILL $100,000 in order to maintain its rights under this AGREEMENT. 
  
 If ADHEREX or a sublicensee authorised hereunder has not commenced Phase II Clinical Trials
in the United States or Canada or Europe or in any other recognized jurisdiction on any PRODUCT IN THE FIELD prior to September 23, 2004, ADHEREX shall pay McGILL $100,000 in order to maintain its rights under this AGREEMENT. 
  

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 If ADHEREX or a sublicensee authorised hereunder has not commenced Phase III Clinical Trials in the United States or
Canada or Europe or in any other recognized jurisdiction on any PRODUCT IN THE FIELD prior to September 23, 2006, ADHEREX shall pay McGILL $200,000 in order to maintain its rights under this AGREEMENT. 
  

	 	5.3	Sponsored Research 

  
 ADHEREX undertakes to fund mutually agreed upon research at McGILL through Research Agreements. This will include a 10-year research contract to be initiated within one year of the EFFECTIVE DATE in support of Dr.
Orest Blaschuk in the amount of $100,000 per year plus 40% overhead for a total of $1.4 million for ten years. 
  

	 	5.4	Additional Research 

  
 ADHEREX will support additional mutually agreed upon research through Research Agreements in support of McGILL researchers (which may or may not include Dr. Blaschuk) to bring the total sponsored research amount to
$200,000 in the first year following the EFFECTIVE DATE. The yearly amounts of this additional research commitment will be: 
  

									
	 Year 1

	 	 Year 2

	 	 Year 3

	 	 Year 4

	 	 Year 5

	 $60,000
	 	$82,000	 	$105,000	 	$132,000	 	$160,000
					
	 Year 6

	 	 Year 7

	 	 Year 8

	 	 Year 9

	 	 Year 10

	 $193,000
	 	$228,000	 	$268,000	 	$312,000	 	$360,000

  
 If the total financial commitment for
additional research exceeds 5% of ADHEREX’s cash and cash equivalents as shown in the December 31 balance sheet of the preceding year, support for new additional research will be deferred until such time that the total financial commitment for
all additional research no longer exceeds 5% of ADHEREX’s cash and cash equivalents, with the condition that ADHEREX’s financial obligations pursuant to ongoing research agreements will be respected and will not be deferred.

  

	 	5.5	CIHR University/Industry chair 

  
 In addition to funding described in 5.3 and upon approval by the CIHR, ADHEREX will provide financial support for a CIHR university/industry chair supporting studies in
cell adhesion for Dr. Orest Blaschuk for which McGILL will apply. 
  

	6	ROYALTIES 

  

	 	6.1	Earned Royalties 

  
 In consideration for the license granted in this AGREEMENT, ADHEREX shall pay to McGILL, in the manner designated below, an earned royalty of 2% of the GROSS REVENUE received by ADHEREX. 
  

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 For more certainty, no royalty shall be payable to McGILL hereunder on amounts paid to Adherex Technologies, Inc. from
any AFFILIATE other than Adherex Technologies, Inc., on any amount paid by Adherex Technologies, Inc. to any AFFILIATE other than Adherex Technologies, Inc., or on any amount paid from one AFFILIATE other than Adherex Technologies, Inc. to another
AFFILIATE other than Adherex Technologies, Inc. 
  

	7	PAYMENTS AND REPORTS 

  

	 	7.1	Payments 

  
 Any amount due McGILL as the result of each PRODUCT IN THE FIELD being used, sold, or transferred pursuant to the terms of this AGREEMENT- shall accrue either i) in the case of direct sales by ADHEREX at the time
ADHEREX receives payment for such PRODUCT IN THE FIELD; or, ii) in the case of sales by sublicensees at the time ADHEREX receives payment from such sublicensee. All amounts accrued for the benefit of McGILL shall be deemed held in trust for the
benefit of McGILL until payment of such amounts is made pursuant to this AGREEMENT. 
  
 Unless otherwise specified in this AGREEMENT, all payment amounts due McGILL under this AGREEMENT shall be paid within forty-five (45) business days following the end of the CALENDAR QUARTER in which such payment accrues or ADHEREX
otherwise incurs the obligation to pay such amounts. 
  
 All payments due McGILL
based upon sales in countries outside of Canada shall accrue in the currency of the country in which the sales are made. ADHEREX shall utilise its best efforts to effect Canadian dollar transfers with respect to such royalties. However, any and all
loss of exchange value, taxes, or other expenses incurred in the transfer or conversion of foreign currency into Canadian dollars, and any income, remittance, or other taxes on such royalties required to be withheld at the source shall be borne by
McGILL. 
  
 All such payments shall be remitted to McGILL’s address given in
the notification provision of this AGREEMENT or to such other address as McGILL shall direct. 
  

	 	7.2	Late Fees 

  
 ADHEREX shall pay to McGILL interest on any amounts not paid when due. Such interest will accrue from the fifteenth (15th) day after the payment was due at a rate two percent (2%) above the daily prime interest rate,
as determined by the Royal Bank of Canada or its successor entity, on each day the payment is delinquent, and the interest payment will be due and payable on the first day of each month after interest begins to accrue, until full payment of all
amounts due to McGILL is made. 
  

	 	7.3	Reports 

  
 ADHEREX shall keep, at its own expense, accurate books of account, using accepted accounting procedures, detailing all data necessary to calculate and easily audit any payments due to McGILL from ADHEREX under this
AGREEMENT. 
  

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 Each payment made to McGILL shall be accompanied by a written report summarizing, in sufficient detail to allow McGILL to
verify all payment amounts, the data used to calculate the amounts paid. Each report pertaining to royalty payments for the applicable accounting period shall specifically include the following, as applicable: 
  
 GROSS REVENUES and NET SALES amounts. 
  
 Royalties due, broken down by category, including earned, pass through, and
minimum royalty categories. 
  
 Annually, ADHEREX shall submit to
McGILL a copy of its audited financial statement. 
  

	 	7.4	Examination of Records 

  
 Upon at least fifteen (15) days’ written notice, McGILL shall have the right, through an independent, accounting firm to examine such records and books of account of
ADHEREX and AFFILIATES as are necessary to verify compliance with the terms of this LICENSE AGREEMENT. Such right may be exercised only once during any twelve-month period. Such examination may be performed at any time within three (3) years after
the end of the reporting period to which the books of account pertain, and shall be performed during normal business hours at ADHEREX’s major place of business or at such other site as may be agreed upon by McGILL and ADHEREX. The accounting
firm may make abstracts or copies of such books of account solely for its use in performing the examination. McGILL shall require prior to any such examination, such accounting firm to agree in writing that such firm will maintain all information,
abstracts, and copies acquired during such examination in strict confidence and will not make any use of such material other than to confirm to McGILL the accuracy of ADHEREX’s compliance hereunder. McGILL shall provide ADHEREX with a copy of
any reports and conclusions resulting from any such examination upon receipt of same. 
  

	 	7.5	Results of Examination 

  
 If any examination of ADHEREX’S records shows that ADHEREX has paid more than required under the Agreement, any excess amounts shall, at ADHEREX’S option, be
promptly refunded or credited against future royalties with interest from the date of overpayment at the Royal Bank of Canada’s Prime Rate minus 1%. If any examination of ADHEREX’S records show that ADHEREX has paid less than required
under this agreement, ADHEREX shall promptly pay the additional amount due together with interest and late fees as required under this agreement for late payments. If the amount of underpayment exceeds ten percent (10%) of the amount that should
have been paid, ADHEREX shall also pay all reasonable costs of such examination. For more certainty, in the case of disagreement between the Parties with respect to the conclusions resulting from examination of ADHEREX’S records, such
disagreement shall be subject to section 12 herein. 
  

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	8	PERFORMANCE 

  

	 	8.1	Reasonable Efforts 

  
 During the term of this AGREEMENT, ADHEREX shall use its commercially reasonable efforts to commercialize a PRODUCT IN THE FIELD within the TERRITORY, consistent with sound and reasonable judgment in the industry

  

	 	8.2	Performance 

  
 ADHEREX shall use reasonable efforts to bring the TECHNOLOGY IN THE FIELD or PATENTS IN THE FIELD to a point of practical application and make a PRODUCT(S) IN THE FIELD reasonably available to the public within a
period of ten (10) years following the EFFECTIVE DATE. In the event that ADHEREX does not substantially meet the performance criteria set forth herein, McGILL may give ADHEREX written notice of its intention to terminate this AGREEMENT. Such notice
shall state the cause(s) for termination and procedures, which ADHEREX must follow to prevent such termination. ADHEREX shall have sixty (60) days after the effective date of the notice to remedy the stated cause(s) for termination. Any
disagreements between the parties as to whether or not the default has been remedied shall be subject to Dispute Resolution pursuant to section 12.2 herein. In the event that a disagreement between the parties as to whether or not the default has
been remedied is not resolved, and that ADHEREX does not submit this matter for arbitration, this AGREEMENT and all rights granted ADHEREX may, at McGILL’s option, be terminated or modified in any manner, according to the termination and
modification provisions herein. 
  

	9	PATENT COST, MAINTENANCE AND MARKINGS 

  

	 	9.1	Patent Cost and Maintenance 

  
 ADHEREX shall be responsible for all costs and expenses relating to the filing and maintenance of PATENTS IN THE FIELD. ADHEREX shall be responsible for filing,
prosecution and maintenance in force of all patents and patent applications included in the PATENTS IN THE FIELD. McGILL shall review and comment on the filing and maintenance of the LICENSED PATENTS. The filing, prosecution and maintenance of
patents and patent applications for the LICENSED PATENTS pursuant to this Section shall be completed through patent counsel selected by ADHEREX with the consent of McGILL. ADHEREX shall keep McGILL reasonably informed of all office actions, proposed
responses or other patent prosecution activities involving the LICENSED PATENT. All patent applications included in the LICENSED PATENT shall be filed, prosecuted and maintained in the name of McGILL, provided that ADHEREX shall have the
right to file, prosecute and maintain additional patents and patent applications that do not fall within the LICENSED PATENT. 
  
 For more certainty, and notwithstanding anything to the contrary herein, McGILL acknowledges and agrees that ADHEREX shall have the right to file, prosecute and maintain
in force, in its own name, all patents and patent applications included in the PATENTS IN THE FIELD, others than LICENSED PATENTS, through patent counsel selected by ADHEREX alone, and without any obligations towards McGILL. ADHEREX nevertheless
agrees to keep McGILL reasonably informed of all office actions, proposed responses or other patent prosecution activities involving PATENTS IN THE FIELD other than LICENSED PATENTS. 
  

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	10	WARRANTIES 

  

	 	10.1	Warranties, Rights and Liabilities 

  
 McGILL WARRANTS THAT: (i) IT IS THE OWNER OF THE LICENSED PATENT AND THE LICENSED TECHNOLOGY; (ii) THAT IT HAS THE RIGHT AND POWER TO GRANT THE LICENSES GRANTED HEREIN;
(iii) THAT THERE ARE NO OTHER AGREEMENTS WITH ANY OTHER PARTY IN CONFLICT WITH SUCH GRANT. 
  
 WITH THE EXCEPTION OF THE ABOVE WARRANTIES SET OUT IN THIS SECTION, McGILL MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE LICENSED TECHNOLOGY, NOT EXPRESSLY SET FORTH IN THIS AGREEMENT. McGILL
DOES NOT WARRANT THAT THE LICENSED TECHNOLOGY IS ERROR FREE OR THAT IT WILL MEET ADHEREX REQUIREMENTS. ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY DISCLAIMED AND EXCLUDED. THE ENTIRE RISK AS TO THE
RESULTS AND PERFORMANCE OF LICENSED PRODUCT, DELIVERABLES, AND ANY PRODUCTS, SERVICES OR METHODS BASED ON THE LICENSED TECHNOLOGY IS ASSUMED BY ADHEREX. 
  
 WITH THE EXCEPTION OF THE ABOVE WARRANTIES SET OUT IN THIS SECTION, McGILL MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES, EXPRESS OR IMPLIED, AND ASSUMES NO LIABILITIES
OR RESPONSIBILITIES WITH RESPECT TO THE USE, SALE, OR OTHER DISPOSITION BY ADHEREX, ANY AFFILIATE, VENDEES, TRANSFEREES, OR END USERS OF LICENSED PRODUCT(S) OR THE LICENSED TECHNOLOGY. 
  
 Notwithstanding any provision to the contrary herein, ADHEREX shall have the right to deduct from royalties payable to McGILL hereunder, any
damages, costs or other amounts (including reasonable attorney’s fees and costs) incurred by ADHEREX by reason of any claim or suit against ADHEREX alleging that the use, manufacture, sale, lease or other exploitation of the LICENSED PATENT or
LICENSED TECHNOLOGY infringes the rights of any third party. 
  

	11	INFRINGEMENT 

  

	 	11.1	Infringement by a Third Party 

  
 In the event of the infringement or potential infringement of the LICENSED PATENT or of the LICENSED TECHNOLOGY by any person, the following terms and conditions shall
apply: (a) Upon learning of any infringement, the party learning of such infringement or potential infringement shall forthwith provide written notice to the other party, providing particulars of which it is aware; (b) McGILL and ADHEREX shall use
their reasonable best efforts, in cooperation with each other, to terminate such infringement, without litigation; (c) ADHEREX may enjoin McGILL to support proceedings if necessary in which case ADHEREX shall reimburse McGILL for expenses and costs
(including reasonable attorney’s fees and costs) reasonably incurred by McGILL, including salary and overhead, for representatives of McGILL whose involvement is required in the opinion of ADHEREX. 
  

 Page 13 of 18 

 For more certainty ADHEREX shall be entitled to retain any damages, costs or other amounts paid to ADHEREX by reason of
any claim or suit against any third party based on infringement or potential infringement of the LICENSED PATENT or of the LICENSED TECHNOLOGY, and (ii) no royalty shall be paid by ADHEREX on any such damages, costs or other amounts. 
  

	12	DISPUTE RESOLUTION 

  

	 	12.1	Cooperation 

  
 It is the intent of this AGREEMENT that both parties should benefit from the continued development and commercialization of the TECHNOLOGIES IN THE FIELD, and that it is in both parties’ best interests to ensure
a healthy spirit of cooperation in which neither the financial stability nor the good public perception or reputation of either party is threatened. 
  

	 	12.2	Negotiation 

  
 In any dispute, controversy or difference that may arise between the Parties out of or in relation to or in connection with this Agreement, or for the breach thereof, the Parties shall seek to resolve such dispute
amicably by mutual consultation. A Party shall first give notice to the other Party stating that the notifying Party believes that a dispute exists and providing a full and complete written statement setting forth the nature of the dispute, the
notifying Party’s position with respect to that dispute, and any resolution proposed by the notifying Party. Upon the delivery of such notice, the Parties shall then cause their senior management or their designee to meet in person as soon as
possible, but in no event more than sixty (60) days after the delivery of such notice, to discuss the dispute and to make a good faith effort to resolve the matter in an amicable fashion. 
  

	 	12.3	Mediation 

  
 In the event the parties fail to resolve such dispute by negotiations, the matter shall be submitted first to mediation by a mediator whose expertise appears relevant to the matter in question. Such mediator shall be
chosen jointly by the parties involved and the mediation costs shall be equally shared by the parties to this AGREEMENT. If, after ninety (90) days, the dispute has not been resolved by mediation, the dispute shall automatically go to arbitration in
accordance with the following subsection. 
  

	 	12.4	Arbitration 

  
 (a) In the event the parties fail to resolve such dispute by negotiation or mediation the parties hereby agree to refer the dispute to arbitration. In the
event that the parties cannot agree upon the appointment of a single arbitrator within thirty (30) days of written notice from one party to the other requesting arbitration, the party requesting the arbitration shall appoint an arbitrator and send a
written notice thereof to the other party, which shall have ten (10) days from the receipt thereof to appoint a second arbitrator. The two (2) arbitrators so appointed shall appoint a third arbitrator and in the event that they cannot agree, the
third arbitrator shall be appointed by a court of competent jurisdiction. 
  

 Page 14 of 18 

 (b) The arbitration hearing shall take place within thirty (30) days following the final appointment of
the arbitrators and may be heard with the participation of and in the presence of only one party if the other party fails to appear. The decision of the arbitrators shall be final and binding upon the parties. The rules of the Quebec Code of Civil
Procedure on arbitration shall apply. 
  
 (c) There shall be no
appeal or judicial review of such decision. 
  
 (d) The decision
of the arbitrators, if more than one, shall be by majority and the responsibility for the costs and expenses of the arbitration shall be paid by the parties as determined by the arbitrator(s). The arbitrators shall render their decision in writing
within two (2) weeks of the hearing. 
  
 (e) The parties agree to
the homologation of the arbitration decision at the request of either party. 
  

	13	GENERAL PROVISIONS 

  

	 	13.1	Assignment 

  
 Without prior written approval from McGILL’s authorized representative, this AGREEMENT may not be assigned or transferred by ADHEREX, except to the successor or assignee of ADHEREX’s entire business
interest. In the event ADHEREX’s entire business interest is to be assigned or transferred, ADHEREX shall give McGILL not less than forty-five (45) days advance notification. McGILL shall be given the opportunity to express its concerns over
any ethical issues related to the takeover, and those concerns will be addressed before transfer or assignment of this AGREEMENT can be completed. For greater certainty ADHEREX may assign any technology other than the LICENSED TECHNOLOGY without the
prior written approval of McGILL. 
  

	 	13.2	Entire Agreement 

  
 This AGREEMENT constitutes the entire agreement and understanding between McGILL and ADHEREX with respect to the LICENSED TECHNOLOGY, and any modification of this AGREEMENT shall be in writing and shall be signed by a
duly authorized representative of both McGILL and ADHEREX. There are no understandings, representations, or warranties between McGILL and ADHEREX concerning the LICENSED TECHNOLOGY except as expressly set-forth in this AGREEMENT. 
  
 As of the coming into force of this AGREEMENT, this AGREEMENT supersedes all prior agreements
or understandings between McGILL and ADHEREX concerning the LICENSED TECHNOLOGY including, for more certainty, the Licence Agreement entered into between the parties September 23, 1998. 
  

 Page 15 of 18 

	 	13.3	Force Majeure 

  
 Neither McGILL nor ADHEREX shall be in default of the terms of this AGREEMENT because the party delays performance or fails to perform such terms; provided such delay or failure is not the result of the party’s
intentional or negligent acts or omissions, but the result of causes beyond the reasonable control of such party. Causes reasonably beyond the control of McGILL and ADHEREX shall include, but not be limited to, revolutions; civil disobedience;
fires; acts of God, war, or public enemies; blockades; embargoes; strikes; labour disputes; laws; governmental, administrative or judicial orders, proclamations, regulations, ordinances, demands, or requirements; delays in transit or deliveries;
actions or inactions of regulatory bodies or inability to secure necessary permits, permissions, raw materials, or equipment. 
  

	 	13.4	Governing Law 

  
 This AGREEMENT shall be deemed to have been made in Province of Quebec and shall be governed and construed in accordance with the laws of the Province of Quebec. 
  

	 	13.5	Notices 

  
 All notices, reports, payments, requests, consents, demands and other communications between McGILL and ADHEREX, pertaining to subjects related to this AGREEMENT, shall be in writing and shall be deemed duly given and
effective (A) when actually received by mail or personal delivery, or (B) when mailed by prepaid registered or certified mail to the receiving party at the address set forth below, or to such other address as may be later designated by written
notice from either party to the other party: 
  
 McGILL’s Notification
Address: 
  
 Director, Office of Technology Transfer, McGill University, 3550
University St., Montreal, QC, H3A 2A7. 
  
 ADHEREX’s Notification Address:

  
 President, ADHEREX Technologies Inc., 600 Peter Morand Crescent, Suite 340,
Ottawa, Ontario K1G 5Z3. 
  

	 	13.6	Use of Name 

  
 ADHEREX shall not, without prior written consent from McGILL in each specific case, use McGILL’s name, trademark(s), or any adaptations thereof. 
  
 McGILL shall not, without prior written consent from ADHEREX in each specific case, use ADHEREX’s name, trademarks, or any adaptations
thereof. 
  

	 	13.7	Confidentiality 

  
 Each party (“Receiving Party”) agrees to keep in strict confidence any information provided by the other party (“Disclosing Party”) that is not generally known among or readily accessible to

  

 Page 16 of 18 

 persons that normally deal with the kind of information in question, that has actual or potential commercial value
because of its confidential or secret nature, that Disclosing Party has taken reasonable steps under the circumstances to keep confidential or secret, and that, where disclosed in tangible or electronic form, has been marked or otherwise identified
by Disclosing Party, at the time of disclosure, as being “confidential”, “proprietary”, “for internal use only” or with a similar legend, provided that in no event shall the absence of such a mark or legend shall
preclude disclosed information which would be considered confidential by a person exercising reasonable business judgement from being treated as confidential by Receiving Party such as, but not limited to, unpatented inventions, know-how, ideas,
methods, formulas and all technical, marketing, pricing, financial and other business data and information of the Disclosing Party, (“Confidential Information”). 
  
 The Receiving Party shall take reasonable measures to prevent unauthorized access, disclosure, possession, alteration, transfer, use, and
reproduction of Disclosing Party’s Confidential Information and, except as may be required for the exercise of its rights or the performance of its obligation hereunder, Receiving Party shall neither disclose Disclosing Party’s
Confidential Information to anyone save to officers, directors, employees, or representatives of Receiving Party who need to know such Confidential Information for the purposes of exercising Receiving Party’s rights or performing Receiving
Party’s obligations hereunder, provided each person to whom Disclosing Party’s Confidential Information is so disclosed is informed by the Receiving Party of the confidential nature of Disclosing Party’s Confidential Information and
undertakes to treat Disclosing Party’s Confidential Information in accordance with the provisions of this Section, nor copy or otherwise use any such Confidential Information without the prior written consent of the Disclosing Party.

  
 The obligations of confidentiality shall not apply to information which (i) is
or becomes publicly available through no wrongful act or breach of confidentiality by Receiving Party under this Agreement; (ii) was already in the rightful possession of the Receiving Party prior to its disclosure; (iii) is independently developed
by the Receiving Party without use of any Disclosing Party’s Confidential Information; (iv) is or becomes available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party, provided that such source is
not known by the Receiving Party to be subject to any confidentiality obligation towards the Disclosing Party, or (v) is required to be disclosed by law, by the order of a government agency or by a court of competent jurisdiction, provided that the
Receiving Party gives prior written notification to the Disclosing Party of its intention to disclose such information. 
  
 For more certainty, this agreement and its terms and all information and reports provided to McGILL in the future must be maintained as confidential by both parties,
provided that parties may disclose such information to potential business partners, investors or investment bankers that are not Disclosing Party’s competitors nor affiliates or subsidiaries of such Disclosing Party’s competitors,
including to their officers, directors, employees or to their attorneys, accountants, financial or other professional advisors which are bound by the law to keep Disclosing Party’s Confidential Information in confidentiality to, at least, the
same extent as the Receiving Party in bound to keep Disclosing Party’s Confidential Information in confidentiality hereunder, in connection with the due diligence review of Receiving Party by such business partners, investors, or investment
bankers. 
  

 Page 17 of 18 

	 	13.8	Language 

  
 This Agreement is drawn up in English at the request of both parties. Les parties aux présentes conviennent que ce document soit rédigé en anglais. 
  

	14	SUCCESSORS 

  
 This Agreement and the provisions hereof shall enure to the benefit of and shall be binding upon the Parties and their respective successors and permitted assigns. 
  

	15	SIGNATURES 

  
 IN WITNESS WHEREOF, McGILL and ADHEREX have caused this LICENSE AGREEMENT to be executed in duplicate originals by their duly authorized representative. 
  

							
	For McGILL UNIVERSITY:	 	For ADHEREX TECHNOLOGIES, INC:
				
	Pierre Belanger	 	 /s/ Pierre Belanger

	 	John Brooks	 	 /s/ John Brooks

	Vice President, Research	 	  

	 	CEO	 	  

	Date:	 	February 26, 2001	 	Date:	 	February 26, 2001

  

 Page 18 of 18EXCLUSIVE LICENSE AGREEMENT, DATED AS OF APRIL 13, 2001

 EXHIBIT 4.3 
  
 EXCLUSIVE LICENSE AGREEMENT 
  
 THIS LICENSE AGREEMENT (the “Agreement”) is made and effective as of the 13th day of April, 2001, (the “Effective Date”) by and
between RUTGERS, THE STATE UNIVERSITY, having its statewide Office of Corporate Liaison and Technology Transfer at 58 Bevier Road, Piscataway, New Jersey 08854-8010, (hereinafter referred to as “Rutgers”)    , and
OXIQUANT, INC. a Delaware corporation having a principal place of business at 787 Seventh Avenue, New York, NY 10019 (hereinafter referred to as “Licensee”). 
  
 RECITALS 
  
 WHEREAS, Certain inventions disclosed under Rutgers Case No. 99-0041, generally characterized as “Novel Redox Clamping Agents and Uses Thereof”,
hereinafter collectively referred to as the “Invention”, were made in the course of research at Rutgers, The State University of New Jersey, by Drs. Edward J. Yurkow and Fred H. Mermelstein (hereinafter, “Inventors”); and

  
 WHEREAS, Licensee is a “small business firm” as
defined in 15 U.S.C. 632; and 
  
 WHEREAS, Licensee wishes to
obtain certain rights from Rutgers for the commercial development, manufacture, use, and sale of the Invention, and Rutgers is willing to grant such rights on the terms and conditions set forth in this Agreement; and 
  
 WHEREAS, Rutgers is desirous that the Invention be developed and utilized to
the fullest extent so that the benefits can be enjoyed by the general public. 
  
 NOW THEREFORE, the parties agree as follows: 
  
 1. DEFINITIONS 
  
 1.1
“Affiliate” means any corporation or business entity that directly or indirectly controls, is controlled by, or is under common control with Licensee to the extent or at least 50 percent of the outstanding stock or other voting rights
entitled to elect directors. 
  
 1.2 “Data” means all
information owned or controlled by Rutgers and acquired by Licensee, its Affiliates or its sublicensees directly or indirectly from or through Rutgers, its units, its employees, the Inventors, or its consultants relating to the Invention, Licensed
Products, or this Agreement, including but not limited to, all patent prosecution documents and all information received from Inventors. 
  
 1.3 “Licensed Field” means the use of the Invention for human therapeutic purposes in the field of oncology. 
  
 1.4 “Licensed Method” means any process, method, or use that is
covered by Rutgers Patent Rights or whose use or practice would constitute, but for the license granted to Licensee pursuant to this Agreement, an infringement of any issued or pending claim within Rutgers Patent Rights. 
  
 1.5 “Licensed Product(s)” means any material or product or kit, or
any service, process, or procedure that (i) either is covered by Rutgers Patent Rights or whose discovery, development, registration, manufacture, use, or sale would constitute, but for the license granted to Licensee pursuant to this Agreement, an
infringement of any claim within Rutgers Patent Rights or (ii) is discovered, developed, made, sold, registered, or practiced using Licensed Method. 
  
 1.6 “Major Market Countries” means the United States of America, France, Germany, Italy, Japan, and the United Kingdom. 
  
 1.7 “Net Sales” means the total of the gross consideration received
for Licensed Products made, used, leased, transferred, distributed, sold or otherwise disposed of by Licensee, its Affiliates, and its 

  

 1 

 
sublicensees, less the sum of the following actual and customary deductions (net of rebates or allowances of such deductions received) included on the
invoice and actually paid: cash, trade, or quantity discounts; returns; sales or use taxes imposed upon particular sales; import/export duties; and transportation charges. In the event Licensee or any of its Affiliates or sublicensees makes a
transfer of a Licensed Product to a third party for other than monetary consideration or for less than fair market value, such transfer shall be considered a sale hereunder to be calculated at a fair market value for accounting and royalty purposes.
In the event that a Licensed Product comprising a kit is sold in combination with another Licensee product, “Net Sales” for such combination product shall be calculated by utilizing the above definition, but substituting for gross
consideration the number calculated by multiplying the gross consideration received for the combination product by a fraction, the numerator of which is the sum of the direct cost of the components and active ingredients of the Licensed Product kit
and the denominator of which is the sum of the direct cost of the components and active ingredients of (i) the Licensed Product kit and (ii) the other Licensee product. A Licensed Product shall be deemed leased, transferred, sold, or otherwise
disposed of at the time Licensee bills, invoices, ships, or receives payment for such Licensed Product, whichever occurs first. 
  
 1.8 “Rutgers Patent Rights” means U.S. Provisional Patent Application Number 60/120, 128 and U.S. Patent(s) issuing thereon and foreign patent
(s) and patent application(s) corresponding to all of the foregoing, to the extent owned by Rutgers, including any reissues, extensions (including governmental equivalents thereto), substitutions, continuations, and divisions thereof. 
  
 1.9 “Territory” means all countries of the world in which Rutgers
has intellectual property rights licensed hereunder, subject to any exclusions provided in this Agreement. 
  
 2. GRANT 
  
 2.1 Subject to the limitations set forth in this Agreement, Rutgers hereby grants to Licensee an exclusive license under Rutgers Patent Rights in the Licensed Field to make, have made, use, distribute and sell Licensed Products and to
practice Licensed method in the Territory during the term of this Agreement. 
  
 2.2 If the Invention was funded by the U.S. Government, the license granted hereunder shall be subject to the overriding obligations to the U.S. Government set forth in 35 U.S.C. 200-212 and applicable governmental
implementing regulations and to the royalty free non-exclusive licenses thereunder to which the U.S. Government is entitled as well as to any other applicable governmental restrictions, if any. 
  
 2.3 Rutgers expressly reserves the right to have the invention and associated
intellectual property rights licensed hereunder used solely for educational, research and other non-business purposes. 
  
 2.4 To Rutgers’ knowledge and belief, based solely on inquiries of it Director of Corporate Liaison and Technology Transfer, Rutgers has all right,
title, and interest in and to its ownership interest in the Patent Rights, including exclusive, absolute, irrevocable right, title and interest thereto, free and clear of all liens, charges, encumbrances or other restrictions or limitations of any
kind whatsoever, and to Rutgers’ knowledge and belief, based solely on inquiries of its Director of Corporate Liaison and Technology Transfer, there are no licenses, options, liens, or threatened legal disputes, proceedings or claims on the
Effective Date noticed to the Office of General Counsel of Rutgers or the Rutgers Director of Corporate Liaison and Technology Transfer relating to, or adversely affecting, or limiting its rights or the rights of the Licensee under this Agreement.

  
 2.5 To Rutgers’ knowledge and belief, based solely on the
inquiries of its Director of Corporate Liaison and Technology Transfer, as of the Effective Date, there is no claim, pending or threatened, of which the Director or the Office of General Counsel of Rutgers has notice, of infringement, interference,
or invalidity regarding any part or all of the Patent Rights and their use as contemplated in the underlying patent applications as presently drafted. 
  

 2 

 3. SUBLICENSES 
  
 3.1 Rutgers grants to Licensee the right to grant sublicenses to third parties under any or all of the licenses granted in
Article 2, provided Licensee has current exclusive rights thereto under this Agreement at the time it exercises a right of sublicense. To the extent applicable, such sublicense shall include all of the rights of and obligations due to Rutgers (and
to the United States Government) that are contained in this Agreement. 
  
 3.2 Within thirty (30) days after execution thereof, Licensee shall provide Rutgers with a copy of each sublicense issued hereunder, and shall thereafter collect and guarantee payment of all royalties and other obligations due Rutgers
relating to the sublicensees and summarize and deliver all reports due Rutgers relating to the sublicensees. 
  
 3.3 Upon termination of this Agreement for any reason, Rutgers agrees to negotiate in good faith, if requested by the sublicensee prior to such
termination, a direct license with the sublicensee on commercial terms which shall be equivalent to the commercial terms in the existing sublicense and on other terms consistent and similar to the terms in this Agreement. The sublicense shall be
temporarily extended after Agreement termination for a reasonable period, but not to exceed 120 days after Agreement termination, provided that sublicensee agrees in writing that Rutgers shall not assume any liabilities or obligations over and above
those contained in the Agreement terms. 
  
 4. LICENSE ISSUE
FEE, LICENSE MAINTENANCE FEES 
 AND MILESTONE PAYMENTS 
  
 4.1 Licensee agrees to pay to Rutgers a License Issue Fee of $5000 within thirty (30) days after the execution of this
Agreement. This fee is non-refundable, but may be offset against future running royalties payable hereunder. 
  
 4.2 Licensee agrees to pay to Rutgers a License Maintenance Fee on each anniversary of the Effective Date of this Agreement. The initial payment shall be
$5000. Each subsequent payment shad increase $5000 so that the payment on the fifth anniversary of the first payment under this Section shall be $25,000. These payments are non-refundable and not creditable against future royalties. On each
subsequent anniversary the annual License Maintenance Fee payment shall be $50,000. The $50,000 payments are non-refundable and are creditable against royalties, provided that royalties which would otherwise be due with respect to any annual period,
but for the credit, shall not be reduced in any such annual period by more than 50% because of the credit. 
  
 4.3 Licensee shall pay to Rutgers Milestone Payment Fees in accordance with the following schedule: 
  

				
	 Event

	  	Amount

	 Completion of first to be conducted Phase I/IIA Clinical Trial or equivalent thereof
	  	$	25,000 U.S.
	 Commencement of the first to be conducted Phase III Clinical Trial or the equivalent thereof
	  	$	50,000 U.S.
	 Receipt of Market Approval in the first Major Market country
	  	$	100,000 U.S.
	 Receipt of Market Approval in the second Major Market country
	  	$	200,000 U.S.
	 Receipt of Market Approval in the third Major Market country
	  	$	300,000 U.S.

  

 3 

 These Milestone Payment Fees shall be paid to Rutgers within 30 days after the occurrence of the event set forth on the
schedule above and shall not be refundable or creditable against royalties, however, the first payment of $25,000 and the second payment of $50,000 are creditable against payments due to Rutgers pursuant Section 4.4. 
  
 For purposes of this Section 4.3, the following terms shall have the
following meanings. “Market Approval” means regulatory or other governmental approval to sell any Licensed Product in a country or given territory. “Phase I/IIA Clinical Trial” means a clinical trial performed in compliance with
U.S. Food and Drug Administration or corresponding foreign health authority requirements, under a Licensee, designee or sublicensee sponsored IND or equivalent, in a small number of patients to determine the metabolism and pharmacological actions of
doses. “Phase III clinical Trial” means a pivotal clinical trial performed in compliance with U.S. Food and Drug Administration authority requirements or corresponding foreign health authority requirements, under a Licensee, designee or
sublicensee sponsored IND or equivalent, having a sufficient number of patients to provided statistically significant results regarding safety and efficacy. 
  
 4.4 Licensee shall pay to Rutgers 20% of all non-running royalty consideration received by Licensee from sub-licensing or transferring (other than to
Affiliates of Licensee) the rights licensed to Licensee hereunder except the following: 
  

	 	(a)	consideration constituting any portion of the purchase price for an equity interest in Licensee or any Affiliate of Licensee (provided that assets relating to Licensed Products do
not constitute substantially all of the assets of such Affiliates’ business); or 

  

	 	(b)	any portion thereof designated in the sublicense agreement to be used by Licensee for its development of Licensed Products and Licensed Methods and actually used for such purpose.

  
 4.5 Simultaneously with the execution of this
Agreement, Licensee and Rutgers are entering into a stock purchase agreement (the “Stock Purchase Agreement”) pursuant to which, among other things, in partial consideration for the rights granted by Rutgers to Licensee hereunder, Licensee
is issuing to Rutgers certain of its shares of Common Stock of Licensee. Licensee represents and warrants that when the Common Stock is delivered to Rutgers (i) it shall constitute no less than ten percent (10%) of the total authorized shares of all
classes of stock of Licensee, fully diluted, (ii) that it shall be free from any claims, security interests or liens and (iii) that Licensee shall have full right and authority to deliver the stock to Rutgers. Rutgers shall have no less rights in
and with respect to such Stock than the founders of Licensee have or obtain with respect to their stock, including without limitation, any anti-dilution, events of disposition, registration, notice, or indemnification rights. 
  
 5. ROYALTIES 
  
 5.1 Except as otherwise required by law, Licensee shall pay to Rutgers a
running royalty of four percent (4%) of Net Sates during the term of this Agreement. Sales among Licensee, its Affiliates and its sublicensees for ultimate third party use shall be disregarded for purposes of computing royalties; royalties shall be
payable only upon sales or transfers between unrelated third parties and shall be based on arms length consideration. 
  
 5.2 Royalties and Rutgers’ share of other sublicensee payments shall be paid to Rutgers semi-annually on or before the following dates of each
calendar year: 
  

			
	 December 31
	  	June 30

  
 Each such payment will be for unpaid
royalties that accrued or other sublicensee payments that were made within Licensee’s most recently completed calendar semi-annual period. 
  
 5.3 All amounts due Rutgers shall be payable in United States Dollars in Piscataway, New Jersey. When Licensed Products are sold for monies other than
United States Dollars, the earned royalties 

  

 4 

 
will first be determined in the foreign currency of the country in which such Licensed Products were sold and then converted into equivalent United States
Dollars. The exchange rate will be the United States Dollar buying rate quoted in the Wall Street Journal on the last day of the reporting period. 
  
 5.4 Licensee shall be responsible for any and all taxes, fees, or other charges imposed by the government of any country outside the United States on the
remittance of royalty income for sales occurring in any such country. Licensee shall also be responsible for all bank transfer charges. 
  
 5.5 If at any time legal restrictions prevent the acquisition or prompt remittance of United States Dollars by Licensee with respect to any country where
a Licensed Product is sold, Licensee shall pay royalties due to Rutgers from Licensee’s other sources of United States Dollars. 
  
 5.6 In the event that any patent or any claim thereof included within the Rutgers Patent Rights shall be held invalid in a final decision by a court of
competent jurisdiction and last resort in any country and from which no appeal has or can be taken, all obligation to pay royalties based on such patent or claim or any claim patentably indistinct therefrom shall cease as of the date of such final
decision with respect to such country. Licensee shall not, however, be relieved from paying any royalties that accrued before such decision or that are based on, another patent or claim not involved in such decision. 
  
 5.7 If a license to the Invention has been granted to the United States
Government and if the Invention was funded by the U.S. Government, no royalties shall be payable hereunder on Licensed Products sold to the U.S. Government Licensee and its sublicensees shall reduce the amount charged for Licensed Products sold to
the United States Government by an amount equal to the royalty for such Licensed Products otherwise due Rutgers as provided herein. 
  
 6. DILIGENCE 
  
 6.1 Licensee, upon and after execution of this Agreement, shall use commercially reasonable efforts to develop, test, obtain any required governmental
approvals, manufacture, market and sell Licensed Products in all countries of the Territory and shall earnestly and diligently endeavor to market the same within a reasonable time after receipt of marketing and sales approval by a government
regulatory agency or authority. 
  
 6.2 Licensee shall be entitled
to exercise prudent and reasonable business judgment in meeting its diligence obligations in this Article 6, but shall be required to exercise at least the same efforts that a company of similar size and resources would exercise with respect to its
own valuable pharmaceutical products in development. 
  
 6.3 All
Affiliates and sublicensees who perform any development, registration, marketing and sales efforts with respect to Licensed Products shall be obligated to at the least the minimum diligence requirements set out in Sections 6.1 and 6.2 above.

  
 7. PROGRESS AND ROYALTY REPORTS 
  
 7.1 Beginning one (1) year after the Effective Date, and annually thereafter,
Licensee shall submit to Rutgers a progress report covering Licensee’s activities related to the development and testing of all Licensed Products and the obtaining of the governmental approvals necessary for marketing. These progress reports
shall be made for each Licensed Product in each country of the Territory. Licensee shall also provide copies to Rutgers in a timely fashion of any other status reports prepared with respect to its development efforts in the ordinary course of
business by or on its behalf. 
  
 7.2 The progress reports
submitted under section 7.1 shall include sufficient information to enable Rutgers to determine Licensee’s progress in fulfilling its obligations under Article 6, including, but not limited to, the following topics: 
  

	 	•	summary of work completed 

  

	 	•	summary of work in progress, including product development and testing and progress in obtaining government approvals 

  

 5 

	 	•	current schedule of anticipated events or milestones 

  

	 	•	general market plans for introduction of Licensed products in countries of the Territory in which Licensed product has not been introduced 

  

	 	•	general summary of resources (dollar value) spent in the reporting period for research, development, and marketing of Licensed Products 

  

	 	•	summary of activities in obtaining sublicensees and summary of activities of sublicensees 

  

	 	•	copies of most recently available audited financial reports or certified financial statements, as the case may be 

  
 7.3 Licensee shall have a continuing responsibility to keep Rutgers informed
of the large/small entity status (as defined by the United States Patent and Trademark Office) of itself and its sublicensees. 
  
 7.4 Licensee shall report to Rutgers in its immediately subsequent progress and royalty report the date of first commercial sale of each Licensed Product
in each country. 
  
 7.5 After the first commercial sale of a
Licensed Product anywhere in the world, Licensee will make semi-annual royalty reports to Rutgers on or before each June 30 and December 31 of each year. Each such royalty report will cover Licensee’s most recently completed calendar
semi-annual period and will show (a) the units and gross sales and Net Sales of each type of Licensed Product sold by Licensee on which royalties have not been paid, including a clear indication of how Net Sales were calculated; (b) the royalties
and fees, in U.S. dollars, payable hereunder, including a breakdown, where more than one patent is licensed hereunder, of how royalty income is allocated among the patents; (c) the method used to calculate the royalty; (d) the exchange rates used,
if any; and (d) any other information relating to the foregoing reasonably requested by Rutgers. 
  
 7.6 If no sales of Licensed Products have been made during any reporting period subsequent to the first reporting period that commercial sales of a
Licensed Product are made, a statement to this effect shall be made by Licensee. 
  
 8. BOOKS AND RECORDS 
  
 8.1 Licensee shall keep and cause its Affiliates and sublicensees to keep books and records in accordance with generally accepted accounting principles accurately showing all transactions and information relating to this Agreement. Such
books and records shall be preserved for at least five (5) years from the date of the entry to which they pertain and shall be open to inspection by representatives or agents of Rutgers at reasonable times upon reasonable notice. 
  
 8.2 The fees and expenses of Rutgers’ representatives performing such an
examination shall be borne by Rutgers. However, if an error in royalties of more than five percent (5%) of the total royalties due for any year is discovered, or if as a result of the examination it is determined that Licensee is in material breach
of its other obligations under this Agreement, then the fees and expenses of these representatives shall be borne by Licensee, and Licensee shall promptly reimburse Rutgers for reasonably documented audit expenses as well as all overdue royalty and
late interest payments. 
  
 9. TERM OF THE AGREEMENT

  
 9.1 Unless otherwise terminated by operation of law or by acts
of the parties in accordance with the provisions of this Agreement, this Agreement shall be in force from the Effective Date and shall remain in effect in each country of the Territory until the expiration of the last-to-expire patent licensed under
this Agreement in such country. 
  

 6 

 9.2 Any expiration or termination of this Agreement shall not affect the rights and obligations set forth
in the following Articles: 
  

			
	Article 8	  	Books and Records
	Article 12	  	Disposition of Licensed Products on Hand Upon Termination
	Article 13	  	Use of Names, Trademarks and Confidential Data
	Article 18	  	Indemnification
	Article 23	  	Failure to Perform
	Article 27	  	Confidentiality

  
 10. TERMINATION FOR
CAUSE BY EITHER PARTY 
  
 10.1 If one party should breach or
fail to perform any provision of this Agreement or the Transaction Agreement referenced in Section 4.5 hereof, then the other party may give written notice of such default (Notice of Default) to the breaching party. If the breaching party should
fail to cure such default within sixty (60) days of notice thereof, the non-breaching party shall have the right to terminate this Agreement and the licenses herein by a second written notice (Notice of Termination) to the breaching party. If a
Notice of Termination is sent to breaching party, this Agreement shall automatically terminate on the effective date of such notice. Termination shall not relieve breaching party of its obligation to pay all amounts due to the non-breaching party as
of the effective date of termination and shall not impair any accrued rights of the non-breaching party. 
  
 11. VOLUNTARY TERMINATION BY LICENSEE 
  
 11.1 Licensee shall have the right at any time to terminate this Agreement in its entirety by giving 90 days’ advance notice thereof in writing to
Rutgers. 
  
 11.2 Any termination pursuant to the above paragraph
shall not relieve Licensee of any obligation or liability accrued hereunder prior to such termination or rescind anything done by Licensee or any payments made to Rutgers hereunder prior to the time such termination becomes effective, and such
termination shall not affect in any manner any rights of Rutgers arising under this Agreement prior to such termination. 
  
 12. DISPOSITION OF LICENSED PRODUCTS AND INFORMATION 
 ON HAND UPON TERMINATION 
  
 12.1 Upon termination of this Agreement by either party (i) Licensee shall have the privilege of disposing of all previously made or partially made Licensed Products (Licensee may complete partially made Licensed Products), but no more,
within a period of one hundred and eighty (180) days after the initial notice of termination given pursuant to paragraph 10.1 or 11.1 hereunder, provided, however, that the disposition of such Licensed Products shall be subject to the terms of this
Agreement including, but not limited to, the payment of royalties at the rate and at the time provided herein and the rendering of reports thereon; and (ii) Licensee shall promptly return, and shall cause its Affiliates and sublicensees to return,
to Rutgers all property belonging to Rutgers, if any, that has been provided to Licensee or its Affiliates or sublicensees hereunder, and all copies and facsimiles thereof and derivatives therefrom (except that Licensee may retain one copy of
written material for record purposes only, provided such material is not used by Licensee for any other purpose and is not disclosed to others). 
  
 13. USE OF NAMES, TRADEMARKS, AND PUBLICATION 
  
 13.1 Nothing contained in this Agreement shall be construed as granting any right to Licensee, its Affiliates or sublicensees to use in advertising,
publicity, or other promotional activities or otherwise any name, trade name, trademark, or other designation of Rutgers or any of its units (including contraction, abbreviation or simulation of any of the foregoing). Unless required by law or
consented to in advance in writing by an authorized representative of Rutgers, the use by Licensee of the name, “Rutgers, The State University” or any campus or unit of Rutgers is expressly prohibited. 
  
 13.2 In the event that Rutgers desires to publish or disclose, by written,
oral or other presentation, Rutgers Patent Rights which the Inventors reasonably believe jeopardize any proposed patent filings which fall within the Rutgers Patent Rights, Inventors shall notify Licensee and Rutgers in writing by facsimile, where
confirmed by the receiving party, and/or by certified or registered mail (return receipt requested) of their intention at least fifteen (15) days prior to any speech, lecture or other oral presentation and at least 60 days before any written or
other publication or disclosure. The Inventors shall include with 

  

 7 

 
such notice a written summary description of any proposed oral presentation and in the case of any proposed written or other disclosure, a current draft of
such proposed disclosure or abstract. Licensee may request that the Inventors and Rutgers, no later than 15 days following receipt of such notice, delay such publication or disclosure in order to enable Licensee to request that Rutgers file, or have
filed on its behalf, an appropriate continuation-in-part to a patent application included in the Rutgers Patent Rights. Upon receipt of such request, Rutgers shall delay any publication or disclosure until such time as Rutgers has filed, or had
filed on its behalf, such continuation-in-part of any Rutgers Patent Right which may be appropriate and feasible in accordance with the provisions of Article 15 of this Agreement. 
  
 14. LIMITED WARRANTY 
  
 14.1 Rutgers warrants to Licensee that it has the lawful right to grant this license and that the Director of the Rutgers’ Office of Corporation
Liaison and Technology Transfer after inquiry of the Rutgers’ Office of the General Counsel has no notice of (i) any infringement or misappropriation by any third party of any of the Rutgers Patent Rights, or (ii) any claim by a third party
contesting the validity of the Rutgers Patent Rights, or (iii) any pending or threatened litigation or contested administrative proceeding with respect to the Invention or the Rutgers Patent Rights. 
  
 14.2 This license and the associated Invention are provided WITHOUT WARRANTY
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED. RUTGERS MAKES NO REPRESENTATION OR WARRANTY THAT THE LICENSED PRODUCTS OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT.

  
 14.3 IN NO EVENT WILL RUTGERS BE LIABLE FOR ANY INCIDENTAL,
INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS, RESULTING FROM EXERCISE OF THIS LICENSE OR MANUFACTURE, SALE, OR USE OF THE INVENTION OR LICENSED PRODUCTS OR RUTGERS INTELLECTUAL PROPERTY LICENSED HEREUNDER.

  

	 	14.4	Nothing in this Agreement shall be construed as: 

  

	 	(14.4a) 	a warranty or representation by Rutgers as to the validity or scope of any Rutgers Patent Rights; or 

  

	 	(14.4b) 	a warranty or representation that anything made, used, sold or otherwise disposed of under any license granted in this Agreement is or will be free from infringement of patents or
other intellectual property rights of third parties; or 

  

	 	(14.4c) 	an obligation to bring or prosecute actions or suits against third parties except as provided in Article 17; or 

  

	 	(14.4d) 	conferring by implication, estoppel or otherwise any license or rights under any patents or other intellectual property of Rutgers other than Rutgers Patent Rights, regardless of
whether such patents are dominant or subordinate to Rutgers Patent Rights; or 

  

	 	(14.4e) 	an obligation to furnish any know-how not provided in Rutgers intellectual property licensed hereunder. 

  
 15. PATENT PROSECUTION AND MAINTENANCE 
  
 15.1 Rutgers shall diligently prosecute and maintain the United States patent applications and patents comprising Rutgers
Patent Rights using counsel of its choice. Rutgers’ counsel shall take instructions only from Rutgers. If a change in patent counsel is required as deemed by Rutgers and/or Licensee, Rutgers shall reasonably consult with Licensee with respect
to selection of new patent counsel. Selection of new patent counsel shall be reasonably acceptable to both parties. Rutgers shall provide Licensee with copies of all relevant documentation in advance of filing so that Licensee may be informed and
apprised of the continuing prosecution and provide consultative comments and suggestions to Rutgers. Licensee agrees to keep this documentation confidential. 
  

 8 

 15.2 Rutgers shall give due consideration to amending any patent application to include claims reasonably
requested by Licensee to protect the Licensed Products contemplated to be sold under this Agreement. 
  
 15.3 Rutgers shall cooperate with Licensee in applying for an extension of the term of any patent included within Rutgers Patent Rights if appropriate
under the Drug Price Competition and Patent Term Restoration Act of 1984. Licensee shall prepare all such documents, and Rutgers agrees to execute such documents and to take such additional action as Licensee may reasonably request in connection
therewith. 
  
 15.4 All past, present, and future costs of
preparing, filing, prosecuting, defending, and maintaining all United States patent applications and/or patents, including interferences and oppositions, and all corresponding foreign patent applications and patents covered by Rutgers Patent Rights
shall be borne by Licensee. Such costs include patent prosecution costs for the Invention incurred by Rutgers prior to the Effective Date of approximately $5700 as of September 14, 2000, based on information currently available to Rutgers, which
amount shall be due within thirty (30) days of the Effective Date. Current and future costs shall be payable by Licensee within thirty (30) days of the billing date. 
  
 15.5 Rutgers shall, at the request of Licensee, file, prosecute, and maintain patent applications and patents covered by
Rutgers Patent Rights in foreign countries if available. Licensee consents to the filing of all PCT and foreign patent applications that have already been filed as of the Effective Date. Licensee shall notify Rutgers by July 15, 2001 its decision to
obtain all other foreign patents. This notice shall be in writing and shall identify the countries desired. The absence of such a notice from Licensee shall be considered by Rutgers to be an election not to request foreign rights. 
  
 15.6 Licensee’s obligation to underwrite and to pay patent prosecution
costs shall continue for so long as this Agreement remains in effect, provided, however, that Licensee may terminate its obligations with respect to any given patent application or patent upon three (3) months’ prior written notice to Rutgers.
Rutgers shall use reasonable efforts to curtail future patent costs when such a notice is received from Licensee. Licensee shall promptly pay patent costs which cannot be so curtailed. Commencing on the effective date of such notice, Rutgers may
continue prosecution and/or maintenance of such application(s) or patent(s) at its sole discretion and expense, and Licensee shall have no further right or licenses thereunder. 
  
 15.7 Rutgers shall have the right to file patent applications at its own expense in any country or countries in which
Licensee has not elected to secure patent rights or in which Licensee’s patent rights hereunder have terminated, and such applications and resultant patents shall not be subject to this Agreement and may he freely licensed by Rutgers to third
parties. 
  
 15.8 Rutgers shall not abandon any patent
applications or issued patent comprising a part of the Rutgers Patent Rights or otherwise fail to prosecute diligently or maintain any Rutgers Patent Rights except following at least forty-five (45) days written notice to Licensee, following which
Licensee shall have the right, but not the obligation, to commence or continue such prosecution and to maintain any such Rutgers Patent Rights under its own control and expense. 
  
 16. PATENT MARKING 
  
 16.1 Licensee shall mark all Licensed Products made, used, sold or otherwise disposed of under the terms of this Agreement, and/or their containers, in
accordance with the applicable patent marking laws. 
  
 17.
PATENT INFRINGEMENT 
  
 17.1 In the event that Licensee shall
learn of the substantial infringement of any patent licensed under this Agreement, Licensee shall notify Rutgers attention in writing and shall provide Rutgers with reasonable evidence of such infringement. Both parties to this Agreement agree that
during the period and in a jurisdiction where Licensee has exclusive rights under this Agreement, neither will notify a third party of the infringement of any of Rutgers Patent Rights without first obtaining consent of the other Party, 

  

 9 

 
which consent shall not be unreasonably denied. Both parties shall use their best efforts in cooperation with each other to terminate such infringement
without litigation. 
  
 17.2 Licensee may request that Rutgers
take legal action against the infringement of Rutgers Patent Rights. Such request shall be made in writing and shall include reasonable evidence of such infringement and damages to Licensee. If the infringing activity has not been abated within
ninety (90) days following the effective date of such request, Rutgers shall have the right to commence suit on its own account or refuse to commence such suit. Rutgers shall give notice of its election in writing to Licensee by the end of the
one-hundredth (100th) day after receiving notice of such request from Licensee. Licensee may thereafter bring suit for patent infringement if and only if Rutgers refuses to commence suit and if the infringement occurred during the period and in a
jurisdiction where Licensee had exclusive rights under this Agreement. However, in the event Licensee elects to bring suit in accordance with this paragraph, Rutgers may thereafter join such suit at its own expense. 
  
 17.3 Such legal action as is decided upon shall be 80 percent at the expense
of Licensee and 20% at the expense of Rutgers if brought by Rutgers and 100% at the expense of Licensee if brought by Licensee. All recoveries recovered thereby shall belong 80% to Licensee and 20% to Rutgers, after each party is first reimbursed
out of any proceeds for its reasonable legal expenses. 
  
 17.4
Each party agrees to cooperate with the other in litigation proceedings instituted hereunder but at the expense of the party on account of whom suit is brought for out-of-pocket expenses. Such litigation shall be controlled by the party bringing the
suit. Each party may be represented by counsel of its choice at its own expense. 
  
 18. INDEMNIFICATION AND INSURANCE 
  
 18.1 To the maximum extent permitted by law, Licensee shall indemnify, hold harmless and defend Rutgers, its governors, trustees, officers, employees, students, agents and the Inventors against any and all claims,
suits, losses, liabilities, damages, costs, fees and expenses (including reasonable attorneys fees) resulting from or arising out of the exercise of the rights granted under this license or any sublicense by or on behalf of Licensee, its Affiliates,
sublicensees and their respective customers. This indemnification shall not include any gross negligence and/or willful misconduct by Rutgers. This indemnification shall include, but is not limited to, claims alleging products liability.
Notwithstanding the foregoing, Licensee shall not have responsibility to assume the defense of any claim prosecuted against both Licensee and Rutgers to the extent there is an actual or potential conflict of interest requiring separate
representation (it being understood that Licensee shall nevertheless remain responsible for indemnifying Rutgers for defense costs to the extent provided herein). In the absence of such a conflict, any separate representation of Rutgers, with
respect with respect to such a claim asserted against both Licensee and Rutgers shall be a Rutgers expense. 
  
 18.2 Throughout the term of this Agreement and to the extent applicable from and after the date of first commercial sale of a Licensed Product, Licensee
shall maintain commercially issued policies of insurance, which provide coverage and limits as required by statute or as necessary to prudently insure the activities and operations of Licensee. The commercial general liability insurance policy,
which shall be in effect at least from the time of commencement of the first human clinical trial of a Licensed Product shall include the interests of Rutgers as an additional insured and provide coverage limits of not less than $2,000,000 combined
single limits as respects premises, operations, contractual liability and, if applicable, liability arising out of products and/or completed operations. Licensee shall provide Rutgers with certificates of insurance for commercially insured policies.

  
 It is expressly agreed that the insurance requirements are minimum
requirements which shall not in any way limit the liability of Licensee and shall be primary coverage. Any insurance or self-insurance program maintained by Rutgers shall be excess and noncontributory. 
  
 18.3 Rutgers shall promptly notify Licensee in writing of any claim or suit
brought against Rutgers in respect of which Rutgers intends to invoke the provisions of Article 18. Licensee shall keep Rutgers informed on a current basis of its defense of any claims pursuant to Article 18. 
  

 10 

 19. NOTICES 
  
 19.1 Any notice or payment required to be given to either party shall be deemed to have been properly given and to be
effective (a) on the date of delivery if delivered in, person, (b) five (5) days after mailing if mailed by first-class certified mail, postage paid and deposited in the United States mail, to the respective addresses given below, or to such other
address as it shall designate by written notice given to the other party or (c) on the date of delivery if delivered by express delivery service such as Federal Express or DHL. 
  

			
	 In the case of Licensee:
	  	Oxiquant, Inc.
	 	  	c/o Paramount Capital
	 	  	787 Seventh Avenue
	 	  	New York, NY 10019
	 	  	Attn: Dr. F. Mermelstein
		
	 In the case of Rutgers:
	  	Rutgers, The State University of New Jersey
	 	  	Office of Corporate Liaison and Technology Transfer
	 	  	58 Bevier Road
	 	  	ASB Annex II
	 	  	Piscataway, NJ 08854-8010
	 	  	Attention: Director

  
 20.
ASSIGNABILITY 
  
 20.1 This Agreement is binding upon and
shall inure to the benefit of Rutgers, its successors and assigns, but shall be personal to Licensee and assignable by Licensee only with the written consent of Rutgers, which consent shall not be unreasonably withheld. Notwithstanding the
foregoing, Licensee may, without such consent, assign this Agreement in whole or in part to: 
  

	 	(a)	a purchaser, merging or consolidating corporation, or acquiror of substantially all of Licensee’s assets or business and/or pursuant to any reorganization of Licensee
qualifying under section 368 of the Internal Revenue Code of 1986 as amended, as may be in effect at such time; or 

  

	 	(b)	any Affiliate of Licensee so long as Licensee remains responsible as guarantor for the performance of this Agreement. 

  
 21. LATE PAYMENTS 
  
 21.1 In the event any amounts due Rutgers hereunder, including but not
limited to royalty payments, fees and patent cost reimbursements, are not received when due, Licensee shall pay to Rutgers interest charges at a rate of eighteen (18) percent per annum or the highest rate permitted by law, if less than eighteen
percent. Such interest shall be calculated from the date payment was due until actually received by Rutgers. 
  
 22. WAIVER 
  
 22.1 It is agreed that failure to enforce any provisions of this Agreement by a party shall not be deemed a waiver of any breach or default hereunder by the other party. It is further agreed that no express waiver by either party hereto of
any breach or default of any of the covenants or agreements herein set forth shall be deemed a waiver as to any subsequent and/or similar breach or default. 
  
 23. FAILURE TO PERFORM 
  
 23.1 In the event of a failure of performance due under the terms of this Agreement and if it becomes necessary for either party to undertake legal action
against the other on account thereof, then the prevailing party shall be entitled to reasonable attorney’s fees in addition to costs and necessary disbursements. 
  

 11 

 24. GOVERNING LAWS 
  
 24.1 THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY WITHOUT REGARD
TO ITS CONFLICTS OF LAW PROVISIONS, but the scope and validity of any patent or patent application shall be governed by the applicable laws of the country of such patent or patent application. 
  
 25. FOREIGN GOVERNMENT APPROVAL 
 OR REGISTRATION 
  
 25.1 If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with any governmental
agency, Licensee shall assume all legal obligations to do so and the costs in connection therewith. 
  
 26. EXPORT CONTROL LAWS 
  
 26.1 Licensee shall observe all applicable United States and foreign laws with respect to the transfer of Licensed Products and related technical data to foreign countries, including, without limitation, the
International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations. 
  
 27. CONFIDENTIALITY 
  
 27.1 Licensee (i) shall not use any Data or unpublished Rutgers Patent Rights, except for the sole purpose of performing this Agreement, (ii) shall safeguard the same against disclosure to others with the same degree of care as it exercises
with its own data of a similar nature, and (iii) shall not disclose or permit the disclosure of Data or unpublished Rutgers Patent Rights to others (except to its employees, agents or consultants who are bound to Licensee and Rutgers by a like
obligation of confidentiality) without the express written permission of Rutgers, except that Licensee shall not be prevented from using or disclosing any Data: 
  

	 	(27.1a) 	which Licensee can demonstrate by written records was previously known to it; or 

  

	 	(27.1b) 	which is now, or becomes in the future, information generally available to the public in the form supplied, other than through acts or omissions of Licensee; or

  

	 	(27.1c) 	which is lawfully obtained by Licensee from sources independent of Rutgers who were entitled to provide such information to Licensee; or 

  

	 	(27.1d) 	which is required by law to be disclosed. 

  
 The obligations of Licensee under this section 27.1 shall remain in effect during the term of this Agreement and for five (5) years from the date of termination or
expiration of this Agreement. 
  
 28. INFRINGEMENT UNDER DRUG
PRICE COMPETITION ACT 
  
 28.1 In the event either party
receives notice pertaining to any patent included within Rutgers Patent Rights pursuant to the Drug Price Competition and Patent Term Restoration Act of 1984 (Public Law 98-417, hereinafter, “the Act”), including but not necessarily
limited to notices pursuant to Sections 101 and 103 of the Act from persons who have filed an Abbreviated New Drug Application (“ANDA”) or a “paper” New Drug Application (“paper NDA”), or in the case of an infringement
of Rutgers Patent Rights as defined in Section 271(e) of Title 35 of the United States Code, such party shall notify the other party promptly but in no event later than ten (10) days after receipt of such notice. 
  
 28.2 If Licensee wishes action to be taken against such infringement, as
provided in the Act, Licensee shall request such action by written notice to Rutgers. Within thirty (30) days of receiving said request, Rutgers will give written notice to Licensee of its election to commence suit on its own account or refuse to
commence such suit. Licensee may thereafter bring suit for patent infringement as provided by the Act if and only if Rutgers refuses to commence suit and if the infringement occurred during the period that Licensee had exclusive rights in the United
States under this Agreement. However, in the event Licensee elects to bring suit in accordance with this paragraph, Rutgers may thereafter join such suit at its own expense. 
  

 12 

 28.3 The provisions of paragraphs 17.3 and 17.4 shall likewise apply to any legal action brought under
this Article 29. 
  
 28.4 Rutgers hereby authorizes Licensee to
include in any NDA for a Licensed Product a list of patents included within Rutgers Patent Rights identifying Rutgers as patent owner. 
  
 29. MISCELLANEOUS 
  
 29.1 The headings of the several articles are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement. 
  
 29.2 This Agreement will not
be binding upon the parties until it has been signed below on behalf of each party by a duly authorized representative. 
  
 29.3 No amendment or modification hereof shall be valid binding upon the parties unless made in writing and signed behalf of each party by a duly
authorized representative. 
  
 29.4 This Agreement embodies the
entire understanding of the parties and shall supersede all previous and contemporaneous communications, representations or understandings, either oral or written, between the parties relating to the subject matter hereof. 
  
 29.5 Licensee shall not enter into any agreements relating to this Agreement
with Inventors or other Rutgers employees or students in contravention of the legal rights or policies Rutgers. 
  
 29.6 In case any of the provisions contained in this Agreement shall be held to be invalid, illegal or unenforceable in any respect, (i) such invalidity,
illegality or unenforceability shall not affect any other provisions hereof, (ii) the particular provision, to the extent permitted by law, shall be reasonably construed and equitably reformed to be valid and enforceable and (iii) this Agreement
shall be construed as if such invalid or illegal or unenforceable provisions had never been contained herein. 
  
 29.7 Rutgers shall have the right to terminate this Agreement forthwith by giving written notice of termination to Licensee at any time upon or after the
filing by Licensee of a petition in bankruptcy or insolvency, or upon or after any adjudication that Licensee is bankrupt or insolvent, or upon or after the filing by Licensee of any petition or answer seeking judicial reorganization, readjustment
or arrangement of the business of Licensee under any law relating to bankruptcy or insolvency, or upon or after the appointment of a receiver for all or substantially all of the property of Licensee, or upon or after the making of any assignment or
attempted assignment for the benefit of creditors, or upon or after the institution of any proceeding or passage of any resolution for the liquidation or winding up of Licensee’s business or for termination of its corporate life. 
  
 29.8 Neither Licensee nor its Affiliates shall, originate any publicity, news
release or other public announcement, written or oral, relating to this Agreement or the existence of an arrangement between the parties, except as required by law, without the prior written approval of Rutgers, which approval shall not be
unreasonably withheld. 
  
 29.9 This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 29.10 Nothing herein shall be deemed to constitute one party as the agent or representative of the other party or both parties as joint venturers or
partners. Each party is an independent contractor. 
  

 13 

 IN WITNESS WHEREOF, both Rutgers and Licensee have executed this Agreement, in duplicate originals, by their duly
authorized representatives on the day and year hereinafter written. 
  

									
	 Oxiquant, Inc.
	 	 	 	 
					
	 by:
	 	 /s/ Fred H. Mermelstein
	 	 	 	 	 	 Date: May 10, 2001

	 	 	 Fred H. Mermelstein, Ph.D.
	 	 	 	 	 	 
	 	 	 President
	 	 	 	 	 	 

  

									
	 Rutgers, The State University
	 	 	 	 
					
	 by:
	 	 /s/ William T. Adams
	 	 	 	 	 	 Date: April 13, 2001

	 	 	 William T. Adams, Director
	 	 	 	 	 	 
	 	 	 Office of Corporate Liaison and
	 	 	 	 	 	 
	 	 	 Technology Transfer
	 	 	 	 	 	 

  

 14

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