Document:

EX-10.2  EXCLUSIVE LICENSE AGREEMENT

 

Exhibit 10.2

EXCLUSIVE LICENSE AGREEMENT

     This Exclusive License Agreement (this “Agreement”) is entered into as of
June 30, 2006 (the “Effective Date”) by and between Sytera, Inc., a Delaware
corporation (the “Licensor”), and Sytera II, Inc., a Delaware corporation (the
“Licensee”).

RECITALS

     Whereas, Licensor currently owns certain patents, patent applications and technology
relating to the application of Fenretinide (as defined below) in the Field (as defined below);

     Whereas, pursuant to the terms and conditions set forth in this Agreement, Licensor
desires to grant to Licensee, and Licensee desires to receive from Licensor, an exclusive worldwide
license to such patents, patent applications and technology in exchange for shares of Licensee
Common Stock (as defined below) representing all of the outstanding capital stock of Licensee; and

     Whereas, insofar as the License (as defined below) is being granted pursuant to a
plan in exchange for all of the outstanding capital stock of Licensee, the parties hereto intend
the transactions contemplated by this Agreement to qualify as a tax-free transfer under Section 351
of the Code (as defined below).

     Now, Therefore, in consideration of the mutual covenants and agreements set forth
below, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

AGREEMENT

1. Definitions. As used in this Agreement:

     1.1 “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

     1.2 “Fenretinide” means 4-hydroxyphenyl retinamide and its active metabolite, 4-methoxyphenyl
retinamide.

     1.3 “Field” means the treatment or prevention of diabetes.

     1.4 “Improvement” means any innovation, improvement or variation (whether or not patentable),
which may be developed or otherwise acquired, during the term of this Agreement, in respect of the
Licensed Products and the Licensed Processes, including, without limitation, any and all compounds
that modulate serum retinol.

     1.5 “License” means the exclusive license granted to Licensee in Section 2.1.

     1.6 “Licensee Common Stock” means the Common Stock, par value $0.001 per share, of Licensee.

1.

 

     1.7 “Licensed Patents” means: (i) the patents and patent applications listed in Exhibit A;
(ii) all patents issuing or claiming priority from any of the patents and patent applications
listed in Exhibit A including continuations, continuations-in-part, divisionals, reexaminations,
reissues, and extensions thereof, and foreign counterparts, and substitutions of the patents and
patent applications listed in Exhibit A whether or not such patent applications or patents exist as
of the Effective Date; and (iii) all patents based on Licensor Improvements (as defined in Section
3.3).

     1.8 “Licensed Processes” means any process relating to the Field that: (i) would infringe one
or more claims of a Licensed Patent but for the License; or (ii) that uses the Licensed Technology
or Licensor Improvements.

     1.9 “Licensed Products” means any product, or component thereof, relating to the Field that:
(i) would infringe one or more claims of a Licensed Patent but for the License; or (ii) is
manufactured using the Licensed Technology or Licensor Improvements (as defined in Section 3.3).

     1.10 “Licensed Technology” means any data or information of a technical nature, currently
owned by Licensor or developed or otherwise acquired by Licensor during the term of this Agreement,
including, without limitation, any and all ideas, gene sequences, cell lines, samples, media,
chemical compounds, assays, biological materials, techniques, sketches, drawings, works of
authorship, models, inventions, know-how, processes, apparatuses, equipment, algorithms, software
programs, software source documents and formulae, relating to the Field and necessary or useful for
the manufacture or sale of the Licensed Products or use of Licenses Processes.

2. Closing.

     2.1 License Grant; Issuance of Licensee Shares. Subject to the terms and conditions of this
Agreement: (i) at and effective as of the Closing (as defined below), Licensor hereby grants to
Licensee an exclusive, worldwide, perpetual, irrevocable license, with the full right to sublicense
to one or more tiers of sublicensees, under the Licensed Patents and the Licensed Technology, to
make, have made, use, sell, offer to sell and import the Licensed Products within the Field and to
practice the Licensed Processes within the Field; and (ii) at the Closing, Licensee shall issue to
Licensor, as consideration for the exclusive license granted pursuant to the foregoing clause “(i)”
of this Section 2.1 (the “License”), an aggregate of 8,430,594 shares of Licensee Common Stock (the
“Shares”). Licensor expressly reserves all rights in the Licensed Patents, Licensed Processes and
Licensed Technology in fields other than the Field.

     2.2 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall occur at 11:00 a.m. Pacific Time on the Effective Date, at the offices of Paul, Hastings,
Janofsky & Walker LLP, 3579 Valley Centre Drive, San Diego, CA 92130, or at such other time or
place as the parties may mutually agree. At the Closing: (i) the License shall automatically, and
without any further action by the parties hereto, become effective; and (ii) Licensee shall issue
and deliver to Licensor one or more stock certificate(s) evidencing the Licensee Shares.

2.

 

     2.3 Delivery of Ancillary Materials. At or promptly following the Closing, Licensor will
transfer to Licensee copies of all documents, materials, and information relating to the Licensed
Patents and Licensed Technology. Upon Licensee’s request, Licensor agrees to provide to Licensee,
at Licensee’s expense, on mutually convenient dates, all reasonable assistance necessary for
Licensee to understand and utilize the Licensed Patents and Licensed Technology within the Field.

     2.4 Federal Income Tax Treatment. The parties intend that the transactions contemplated by
this Agreement shall be treated as a tax-free transfer under Section 351 of the Code. All
provisions of this Agreement shall be interpreted and construed so as to effectuate such treatment,
and the parties shall take appropriate action to ensure and report such treatment.

3. Additional Terms of License.

     3.1 Term of License. The License will remain in effect in perpetuity.

     3.2 Restrictions on Licensor. Given that the License is being granted on an exclusive basis,
at all times during the term of the License specified in Section 3.1, Licensor agrees not to make,
have made, use, sell, offer to sell, or import any Licensed Product within the Field or to practice
the Licensed Processes within the Field, and not to grant to any third party any rights of any kind
concerning the Licensed Patents or the Licensed Technologies for the use, manufacture, sale, or
importation of the Licensed Products within the Field or to practice the Licensed Processes within
the Field. Notwithstanding the foregoing, the License includes the right, and Licensee shall be
entitled at all times during the term of the License specified in Section 3.1, to have any third
party make, use, sell, offer to sell or import the Licensed Products or to practice the Licensed
Processes within the Field for or on behalf of Licensee.

     3.3 Improvements. As between Licensor and Licensee, Licensor will exclusively own
all Improvements conceived, made, reduced to practice, invented, developed or acquired by or for
Licensor (“Licensor Improvements”), and Licensee will exclusively own all Improvements conceived,
made, reduced to practice, invented, developed or acquired by or for Licensee; provided, however,
that Licensor will promptly notify Licensee of the development of any Licensor Improvements, and
such Licensor Improvements shall be deemed automatically licensed to Licensee pursuant to Section
2.1.

     3.4 Prosecution of Licensed Patents.

          (a) Except as provided below in Section 3.4(b), Licensor shall be responsible, at its sole
discretion and expense, for: (i) preparing, filing, prosecuting, and maintaining all Licensed
Patents in such jurisdiction; and (ii) conducting any interference, re-examination, reissue and
opposition proceedings relating to the Licensed Patents in such jurisdiction (collectively,
“Prosecution”). In connection with the foregoing: (x) Licensor shall regularly consult with
Licensee, use reasonable efforts to accommodate comments from Licensee, and keep Licensee advised
of the status of the Licensed Patents; and (y) Licensor shall provide to Licensee, for Licensee’s
review and comments, copies of all material correspondence to and from the patent offices examining
such Licensed Patents, including restriction requirements, office actions, proposed amendments and
responses, and notices of allowance.

3.

 

          (b) Notwithstanding Section 3.4(a), Licensee will have the right to file, at Licensee’s
expense, one or more divisional, continuation, or continuation-in-part applications claiming
priority to any of the Licensed Patents and which include only those claims directed primarily to
the Field (collectively, “Field-Dedicated Patents”), and thereafter, be responsible for the
Prosecution of those Field-Dedicated Patents.

          (c) If the patent office issues a restriction requirement in any application included in the
Licensed Patent separating the claims into multiple groups, where at least one group is directed
primarily to the Field and another group has no claims directed to the Field, and Licensor elects
to prosecute the claims in the group which does not have any claims directed to the Field, then
such application which no longer includes any claims directed to the Field will be excluded from
the definition of Licensed Patents.

          (d) To the extent Licensee elects to file any divisional, continuation, or
continuation-in-part applications under Section 3.4(b), Licensor will provide to Licensee or its
designated representative copies of the files of the parent applications of such divisional,
continuation or continuation-in-part applications. If any party elects at any time to abandon any
Licensed Patent, such party will promptly notify the other party, and the other party will have the
option to prosecute such Licensed Patent.

     3.5 Enforcement of Licensed Patents.

          (a) If either party becomes aware of any suspected infringement of any Licensed Patent or
learns that any Licensed Patent is being infringed or misappropriated by any third party within the
Field, or is subject to a declaratory judgment action arising from such infringement or
misappropriation, such party shall promptly notify the other party of all available details
regarding such infringement or misappropriation.

          (b) Licensee shall have the right, at its sole expense, but not the obligation, to initiate
and conduct legal proceedings to enforce or defend the Licensed Patents against any third-party
infringement solely within the Field. With respect to any such legal proceedings: (i) Licensee
shall have exclusive control over the conduct of such proceedings, including the right to settle or
compromise such proceedings; (ii) all expenses relating to any such proceedings, including, without
limitation, attorneys’ fees and costs, shall be solely borne by Licensee; (iii) Licensor shall
cooperate with Licensee, at Licensee’s request and expense, in enforcing or defending such Licensed
Patents within the Field; and (iv) if Licensor is a legally indispensable party to such
proceedings, Licensor shall join such proceedings. Any recovery obtained by Licensee in connection
with any such legal proceeding will be retained by Licensee.

4. Representations and Warranties of Licensor. In connection with the transactions
contemplated by this Agreement, Licensor represents and warrants to Licensee as follows:

     4.1 Organization and Authority. Licensor is duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement. All corporate
action on the part of Licensor, its officers, directors and stockholders necessary for: (i) the

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authorization, execution and delivery of this Agreement; and (ii) the performance of
Licensor’s obligations under this Agreement, including, without limitation, the License, has been
taken or will be taken prior to the Closing.

     4.2 Valid Agreement. This Agreement constitutes the valid and legally binding obligations of
Licensor, enforceable in accordance with its terms, except: (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally; and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies.

     4.3 No Conflict. Neither the execution of this Agreement, nor the consummation by Licensor
of the transactions contemplated by this Agreement, including, without limitation, the License,
will contravene Licensor’s certificate of incorporation or bylaws or constitute a violation of or
default under, or conflict with or require a consent under, any contract, commitment, agreement,
understanding, arrangement, restriction, law, statute, rule, regulation, judgment, order,
injunction, suit, action or proceeding of any kind to which Licensor is a party or by which
Licensor or any of its assets is bound.

     4.4 Investment Experience. Licensor has experience investing in securities of companies in
the development stage and acknowledges that it is able to fend for itself, can bear the economic
risk of its investment and has such knowledge and experience in financial or business matters such
that it is capable of evaluating the merits and risks of the investment in the Shares. Licensor
also represents it has not been organized for the purpose of acquiring the Shares.

     4.5 Accredited Investor. Licensor is an “accredited investor” as defined in Rule 501 of
Regulation D of the Securities Act of 1933, as amended (the “Securities Act”).

     4.6 Investment Intent. Licensor is acquiring the Shares for investment for Licensor’s own
account and not with a view to, or for resale in connection with, any distribution thereof.
Licensor understands that the Shares have not been registered under the Securities Act by reason of
a specific exemption from the registration provisions of the Securities Act that depends upon,
among other things, the bona fide nature of the investment intent as expressed herein.

     4.7 Rule 144. Licensor acknowledges that the Shares must be held indefinitely unless
subsequently registered under the Securities Act, or unless an exemption from such registration is
available. Licensor is aware of the provisions of Rule 144 promulgated under the Securities Act
(“Rule 144”) that permit limited resale of securities purchased in a private placement subject to
the satisfaction of certain conditions. Licensor understands that the exemptions from registration
afforded by Rule 144 are not presently available with respect to the Shares.

     5. Representations and Warranties of Licensee. In connection with the transactions
contemplated by this Agreement, Licensee represents and warrants to Licensor as follows:

     5.1 Organization and Authority. Licensee is duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power

5.

 

and
authority to execute, deliver and perform its obligations under this Agreement. All corporate
action on the part of Licensee, its officers, directors and stockholders necessary for: (i) the
authorization, execution and delivery of this Agreement; and (ii) the performance of Licensee’s
obligations under this Agreement, including, without limitation, the issuance of the Shares, has
been taken or will be taken prior to the Closing.

     5.2 Valid Agreement. This Agreement constitutes the valid and legally binding obligations of
Licensee, enforceable in accordance with its terms, except: (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally; and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies.

     5.3 No Conflict. Neither the execution of this Agreement, nor the consummation by Licensee
of the transactions contemplated by this Agreement, including, without limitation, the issuance of
the Shares, will contravene Licensee’s certificate of incorporation or bylaws or constitute a
violation of or default under, or conflict with or require a consent under, any contract,
commitment, agreement, understanding, arrangement, restriction, law, statute, rule, regulation,
judgment, order, injunction, suit, action or proceeding of any kind to which Licensee is a party or
by which Licensee or any of its assets is bound.

     5.4 Shares; Valid Offering. The Shares have been duly and validly authorized and, when issued
and delivered to Licensor as provided herein, will be duly and validly issued, fully paid and
nonassessable. As of the Closing, the Shares shall constitute all of the outstanding capital stock
of Licensee. Assuming the accuracy of the representations and warranties of Licensor contained in
Section 5 of this Agreement, the offer, sale and issuance of the Shares to Licensor are and will be
exempt from the registration and prospectus delivery requirements of the Securities Act, and have
been registered or qualified (or are exempt from registration and qualification) under the
registration, permit, or qualification requirements of all applicable state securities laws.

6. Miscellaneous.

     6.1 Further Assurances. In addition to the actions, documents and instruments specifically
required pursuant to this Agreement to be taken or delivered by the parties hereto, each party
hereto shall, without further consideration, use its reasonable best efforts to, and shall use its
reasonable best efforts to cause its respective affiliates to, take such other actions, and execute
and/or deliver such other certificates, documents and instruments, as the other party hereto or its
counsel may reasonably request in order to effectuate the transactions contemplated by this
Agreement.

     6.2 Notices. All notices and other communications given or made pursuant hereto
shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party
to be notified; (ii) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient or, if not, then on the next business day; (iii) five days after
having been sent by registered or certified mail, return receipt requested, postage prepaid; or
(iv) one day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the respective

6.

 

parties at each such party’s address set forth on the signature page hereto (or at such other
addresses as shall be specified by notice given in accordance with this Section 6.2).

     6.3 Expenses. Each of Licensor and Licensee shall each bear its respective expenses and legal
fees incurred with respect to this Agreement and the transactions contemplated herein.

     6.4 Waiver. No failure on the part of any party to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any party in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege
or remedy and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.
No party shall be deemed to have waived any claim arising out of this Agreement, or any power,
right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed and delivered on
behalf of such party, and any such waiver shall not be applicable or have any effect except in the
specific instance in which it is given.

     6.5 Severability. If one or more provisions of this Agreement are held by a court of
competent jurisdiction to be unenforceable under applicable law, the parties agree to promptly
renegotiate such provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement in writing for such provision, then: (i) such provision shall
be excluded from this Agreement; (ii) the balance of the Agreement shall be interpreted as if such
provision were so excluded; and (iii) the balance of the Agreement shall be enforceable in
accordance with its terms.

     6.6 Governing Law. This Agreement shall be construed in accordance with, and governed in all
respects by, the internal laws of the State of Delaware without giving effect to its principles of
conflicts of laws.

     6.7 Assignment. Each party may not assign or transfer any of its rights under this Agreement
or delegate any of its obligations or duties under this Agreement to any third party, without the
other party’s prior written consent. Any attempted assignment or delegation without such consent
will be null and void. Notwithstanding the foregoing, either party may assign this entire
Agreement or any of its rights hereunder, without the other party’s consent: (i) to any of the
assigning party’s affiliates; or (ii) to a third party in connection with the sale of all or
substantially all of the assets or business of the assigning party, whether by merger, sale of
assets, sale of stock, or otherwise. This Agreement will be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

     6.8 Entire Agreement. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and thereof and supersede all prior agreements and
understandings between the parties with respect thereto. No addition to or modification of any
provision of this Agreement shall be binding upon any party unless made in writing and signed by
all of the parties hereto.

7.

 

     6.9 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	LICENSOR:	 	LICENSEE:
	 
	 	 	 	 	 	 
	Sytera, Inc.	 	Sytera II, Inc.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Kenneth J. Widder	 	By:	 	/s/ Kevin Kinsella
	 	 	 	 	 	 	 
	 

	 	Kenneth J. Widder, M.D.
	 	 	 	Kevin Kinsella
	 

	 	Chairman and Chief Executive Officer
	 	 	 	President
	 
	 	 	 	 	 	 
	Address:

	 	505 Coast Boulevard
South	 	Address:	 	505 Coast Boulevard
South
	 	 	 	 	 	 	 
	 

	 	Suite 412	 	 	 	Suite 412
	 	 	 	 	 	 	 
	 

	 	La Jolla, CA 92037	 	 	 	La Jolla, CA 92037
	 	 	 	 	 	 	 

 

 

Exhibit A

List of Licensed PatentsEX-10.3  EXCLUSIVE LICENSE AGREEMENT

 

Exhibit 10.3

EXCLUSIVE LICENSE AGREEMENT

     This Exclusive License Agreement (this “Agreement”) is entered into as of
July 5, 2006 by and between Sytera II, Inc., a Delaware corporation (the
“Licensor”), and Sirion Therapeutics, Inc., a North Carolina corporation (the “Licensee”).

RECITALS

     Whereas, pursuant to that certain Exclusive License Agreement, dated as of June
30, 2006 (the “Original License Agreement”), by and between Sytera, Inc., a Delaware
corporation (“Sytera”), and Licensor, Licensor has been granted an exclusive, worldwide license to
the Licensed Patents (as defined below) in the Field (as defined below);

     Whereas, pursuant to that certain Agreement and Plan of Merger and Reorganization,
dated as of July 5, 2006 (the “Merger Agreement”), by and among Licensor, Licensee, Sytera
and Kenneth J. Widder, M.D., solely in his capacity as Stockholders’ Representative (as defined in
the Merger Agreement), Sytera is being merged with and into Licensee at the Effective Time (as
defined in the Merger Agreement), with Licensee continuing as the surviving corporation in the
merger; and

     Whereas, effective as of the Effective Time, Licensor desires to grant to Licensee,
and Licensee desires to receive from Licensor, an exclusive, worldwide license to sell and offer
for sale the Licensed Products (as defined below) pursuant to the terms and conditions set forth in
this Agreement.

     Now, Therefore, in consideration of the mutual covenants and agreements set forth
below, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

AGREEMENT

1. Definitions. As used in this Agreement:

     1.1 “Fenretinide” means 4-hydroxyphenyl retinamide and its active metabolite, 4-methoxyphenyl
retinamide.

     1.2 “Field” means the treatment or prevention of diabetes.

     1.3 “License” means the exclusive license granted to Licensee in Section 2.

     1.4 “Licensed Patents” means: (i) the patents and patent applications relating to Fenretinide
listed in Exhibit A; (ii) all patents issuing or claiming priority from any of the patents and
patent applications listed in Exhibit A including continuations, continuations-in-part,
divisionals, reexaminations, reissues, and extensions thereof, and foreign counterparts, and
substitutions of the patents and patent applications listed in Exhibit A whether or not such patent
applications or patents exist as of the date of this Agreement; and (iii) all other patents and
patent applications exclusively licensed to Licensor pursuant to the Original License Agreement.

 

 

     1.5 “Licensed Product” means any product, or component thereof, relating to the Field that:
(i) would infringe one or more claims of a Licensed Patent but for the License; (ii) is identical
or substantially identical in composition, formulation or dosage to any Product marketed by
Licensee outside the Field; and (iii) has been manufactured by or on behalf of the Licensor.

     1.6 “Product” means any preparation that contains Syt101 as an active ingredient for sale by
prescription, over-the-counter or any other method.

     1.7 “Syt101” means Fenretinide, including any active metabolite or prodrug of Fenretinide or
any hydrate, conjugate, salt, ester, amide, solvate, cocrystal, isomer, polymorph, analogue or
other derivative of any of the foregoing.

2. License Grant; License Fee. Subject to the terms and conditions of this Agreement,
including, without limitation, Licensee’s payment of the License Fee (as defined below), at and
effective as of the Effective Time, Licensor hereby grants to Licensee an exclusive, worldwide
license (without the right to sublicense) under the Licensed Patents to sell and offer to sell the
Licensed Products (the “License”). In consideration of the License granted to Licensee pursuant to
this Section 2, Licensee shall pay to Licensor at the Effective Time, as a one-time license fee, an
amount in cash equal to $4,379.60 (the “License Fee”).

3. Additional Terms of License.

     3.1 Term of License. The License will remain in effect until all Licensed Patents have
expired or been abandoned; provided, however, that Licensor may terminate the
License, effective immediately upon written notice to Licensee, in the event that: (i) the Sytera
Rights (as defined in the Merger Agreement) are transferred or required to be transferred by
Licensee to Licensor in accordance with Section 1.5(h) of the Merger Agreement; or (ii) Licensee
breaches any provision of this Agreement or the Merger Agreement and does not cure such breach
within fifteen (15) days after receiving written notice thereof.

     3.2 Restrictions on Licensor. Given that the License is being granted on an exclusive basis,
at all times during the term of the License specified in Section 3.1, Licensor agrees not to sell
or offer to sell any Licensed Product and not to grant to any third party any rights of any kind
concerning the Licensed Patents for the sale of the Licensed Products.

4. Consulting Services.

     4.1 Projects. Subject to the terms and conditions of this Agreement, including, without
limitation, Licensee’s payment of the Consulting Fee (as defined below), Licensee hereby engages
Licensor, and Licensor hereby accepts the engagement by Licensee, effective as of the Effective
Time, to act as a nonexclusive consultant to Licensee for a period of one (1) year following
Effective Time (the “Consulting Term”). In its capacity as such nonexclusive consultant to
Licensee, Licensor shall perform such services relating to the exploitation of Licensee’s rights
under the License (each, a “Project”) as are requested from time to time during the Consulting Term
by Licensee (collectively, the “Services”); provided, however, that: (i) prior to
Licensor’s becoming obligated to perform any individual Project, the parties shall mutually agree
upon and set forth in writing the scope of the Project, the timing for completion of the Project
and the relative rights of each party with respect to any intellectual property resulting

2.

 

from the performance of such Project; and (ii) Licensor shall not be obligated to spend in
excess of one hundred (100) hours in the aggregate in performing the Services. Licensor shall
perform all Services in a professional manner, using a degree of skill and care at least consistent
with industry standards.

     4.2 Consulting Fee. As compensation for the Services, Licensee shall pay to Licensor at the
Effective Time, as a one-time consulting fee, an amount in cash equal to $190,000.00 (the
“Consulting Fee”).

5. Representations and Warranties of Licensor. In connection with the transactions
contemplated by this Agreement, Licensor represents and warrants to Licensee as follows:

     5.1 Organization and Authority. Licensor is duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement. All corporate
action on the part of Licensor, its officers, directors and stockholders necessary for: (i) the
authorization, execution and delivery of this Agreement; and (ii) the performance of Licensor’s
obligations under this Agreement, including, without limitation, the License, has been taken or
will be taken prior to the Effective Time.

     5.2 Valid Agreement. This Agreement constitutes the valid and legally binding obligations of
Licensor, enforceable in accordance with its terms, except: (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally; and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies.

     5.3 No Conflict. Neither the execution of this Agreement, nor the consummation by Licensor
of the transactions contemplated by this Agreement, including, without limitation, the License,
will contravene Licensor’s certificate of incorporation or bylaws or constitute a violation of or
default under, or conflict with or require a consent under, any contract, commitment, agreement,
understanding, arrangement, restriction, law, statute, rule, regulation, judgment, order,
injunction, suit, action or proceeding of any kind to which Licensor is a party or by which
Licensor or any of its assets is bound.

6. Representations and Warranties of Licensee. In connection with the transactions
contemplated by this Agreement, Licensee represents and warrants to Licensor as follows:

     6.1 Organization and Authority. Licensee is duly organized, validly existing and in good
standing under the laws of the State of North Carolina and has all requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement. All corporate
action on the part of Licensee, its officers, directors and shareholders necessary for: (i) the
authorization, execution and delivery of this Agreement; and (ii) the performance of Licensee’s
obligations under this Agreement, including, without limitation, the payment of the License Fee,
has been taken or will be taken prior to the Effective Time.

     6.2 Valid Agreement. This Agreement constitutes the valid and legally binding obligations of
Licensee, enforceable in accordance with its terms, except: (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general

3.

 

application affecting enforcement of creditors’ rights generally; and (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other equitable
remedies.

     6.3 No Conflict. Neither the execution of this Agreement, nor the consummation by Licensee
of the transactions contemplated by this Agreement, including, without limitation, the payment of
the License Fee, will contravene Licensee’s articles of incorporation or bylaws or constitute a
violation of or default under, or conflict with or require a consent under, any contract,
commitment, agreement, understanding, arrangement, restriction, law, statute, rule, regulation,
judgment, order, injunction, suit, action or proceeding of any kind to which Licensee is a party or
by which Licensee or any of its assets is bound.

7. Miscellaneous.

     7.1 Further Assurances. In addition to the actions, documents and instruments specifically
required pursuant to this Agreement to be taken or delivered by the parties hereto, each party
hereto shall, without further consideration, use its reasonable best efforts to, and shall use its
reasonable best efforts to cause its respective affiliates to, take such other actions, and execute
and/or deliver such other certificates, documents and instruments, as the other party hereto or its
counsel may reasonably request in order to effectuate the transactions contemplated by this
Agreement.

     7.2 Notices. All notices and other communications given or made pursuant hereto
shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party
to be notified; (ii) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient or, if not, then on the next business day; (iii) five days after
having been sent by registered or certified mail, return receipt requested, postage prepaid; or
(iv) one day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the respective
parties at each such party’s address set forth on the signature page hereto (or at such other
addresses as shall be specified by notice given in accordance with this Section 7.2).

     7.3 Expenses. Each of Licensor and Licensee shall each bear its respective expenses and legal
fees incurred with respect to this Agreement and the transactions contemplated herein.

     7.4 Waiver. No failure on the part of any party to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any party in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege
or remedy and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.
No party shall be deemed to have waived any claim arising out of this Agreement, or any power,
right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed and delivered on
behalf of such party, and any such waiver shall not be applicable or have any effect except in the
specific instance in which it is given.

     7.5 Severability. If one or more provisions of this Agreement are held by a court of
competent jurisdiction to be unenforceable under applicable law, the parties agree to promptly
renegotiate such provision in good faith. In the event that the parties cannot reach a
mutually

4.

 

agreeable and enforceable replacement in writing for such provision, then: (i) such
provision shall be excluded from this Agreement; (ii) the balance of the Agreement shall be
interpreted as if such provision were so excluded; and (iii) the balance of the Agreement shall be
enforceable in accordance with its terms.

     7.6 Governing Law. This Agreement shall be construed in accordance with, and governed in all
respects by, the internal laws of the State of Delaware without giving effect to its principles of
conflicts of laws.

     7.7 Assignment. Each party may not assign or transfer any of its rights under this Agreement
or delegate any of its obligations or duties under this Agreement to any third party, without the
other party’s prior written consent. Any attempted assignment or delegation without such consent
will be null and void. Notwithstanding the foregoing, either party may assign this entire
Agreement or any of its rights hereunder, without the other party’s consent: (i) to any of the
assigning party’s affiliates; or (ii) to a third party in connection with the sale of all or
substantially all of the assets or business of the assigning party, whether by merger, sale of
assets, sale of stock, or otherwise. This Agreement will be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

     7.8 Entire Agreement. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and thereof and supersede all prior agreements and
understandings between the parties with respect thereto. No addition to or modification of any
provision of this Agreement shall be binding upon any party unless made in writing and signed by
all of the parties hereto.

     7.9 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5.

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 	 	 
	LICENSOR:	 	LICENSEE:
	 
	 	 	 	 	 	 
	Sytera II, Inc.	 	Sirion Therapeutics, Inc.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Kenneth J. Widder 	 	By:	 	/s/ Barry Butler 
	 	 	 	 	 	 	 
	 

	 	Kenneth J. Widder, M.D.
	 	 	 	Barry Butler
	 

	 	Chairman and Chief Executive Officer
	 	 	 	Chairman and Chief Executive Officer
	 
	 	 	 	 	 	 
	Address:

	 	505 Coast Boulevard South 	 	Address:	 	3110 Cherry Palm Drive 
	 	 	 	 	 	 	 
	 
	 	Suite 412 	 	 	 	Suite 350 
	 	 	 	 	 	 	 
	 
	 	La Jolla, California 92037	 	 	 	Tampa, Florida 33610

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