Document:

August 26, 2013

 

MusclePharm Corporation

4721 Ironton Street, Unit A

Denver, CO 80237

Attn: Brad Pyatt, CEO

 

	RE:	Pledge and Security Agreement dated February 24, 2012

 

Dear Mr. Pyatt:

 

The undersigned constitute
the “Grantor,” “Collateral Agent” and “Purchasers,” as defined in, and pursuant to, that Pledge
and Security Agreement dated February 24, 2012 (the “Agreement”), a copy of which is attached hereto as Exhibit 1.
Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement.

 

We understand that
MusclePharm Corporation (“MusclePharm”) has agreed to purchase a two million dollar ($2,000,000.00) note from Grantor
(the “secured Note”) on substantially the same terms as the parties to the Agreement (the “Transaction”).
We further understand that MusclePharm will not agree to enter into the Transaction, absent the assurance that Grantor’s
obligation to MusclePharm is secured to the same extent as the parties to the Agreement.

 

Accordingly, as an
inducement to MusclePharm to immediately enter into the Transaction, the undersigned parties to the Agreement and such other parties
who derive benefit from the Agreement as Purchasers, hereby agree that as of the date hereof the Secured Note shall be secured
by the Collateral on a paripasu basis as if MusclePharm was a party to the Agreement, and within forty-five (45) days of the date
of this letter, Grantor shall prepare, and the parties (including MusclePharm) shall execute, a mutually-acceptable Amended and
Restated Pledge and Security Agreement, which shall supercede the Agreement in its entirety, and whereby the obligations owed by
Grantor to toMusclePharm pursuant to the Note shall be secured by the Collateral on a paripasu basis with the obligations owed
by the Grantor to the current parties to the Agreement that is secured by the Collateral.. The Collateral Agent hereby agrees that
it will remain the Collateral Agent once the Agreement is amended and restated as contemplated by this letter.

 

Further, as an inducement
to Barry Honig to execute this letter and facilitate the transaction, MusclePharm and the undersigned parties agree that Barry
Honig shall have, as of the date of this letter, a security interest, senior in priority to that interest granted in the Agreement,
in the Collateral to secure the Company’s repayment of the outstanding principal and interest owed to Mr. Honig pursuant
to that 10% Senior Secured Convertible Promissory Note dated March 12, 2013. Mr. Honig’s senior security interest, as described
above, shall be incorporated into the Amended and Restated Pledge and Security Agreement

 

    	 

    	 

    

 

With respect to the
foregoing, we understand that you are aware that Grantor is entering into a transaction to sell the Glyderm trademark, owned by
Grantor, together with the Glyderm domain names owned by Grantor. Both the trademark and the domain names constitute Collateral
under the Agreement.

 

Sincerely,

  

	GRANTOR:	 	COLLATERAL AGENT:
	 	 	 
	BIOZONE PHARMACEUTICALS, INC.	 	OPKO HEALTH, INC.
	 	 	 
	By:	/s/ Elliot Maza	 	By:	/s/ Steven D. Rubin 
	Elliot Maza	 	Steven D. Rubin
	Chief Executive Officer	 	Exec. V.P. - Administration
	 	 	 
	Purchaser:	 	Purchaser:
	 	 	 
	BARRY HONIG	 	ROBERTO PREGO-NOVO
	 	 	 
	By:	/s/ Barry Honig 	 	By:	/s/ Roberto Prego-Novo 

 

	AGREED TO AND ACCEPTED:	 
	 	 
	MUSCLEPHARM CORPORATION	 
	 	 
	By:	/s/ Brad Pyatt	 
	   Name: Brad Pyatt	 
	   Title:   Chief Executive OfficerEXHIBIT 10.18

 

Statement of Work Agreement

 

Project: 

 

“Prospective Clinical Study to Validate
the Accuracy of 3 Proprietary Biomarkers”

 

For the Diagnosis of Alzheimer’s Disease in:

 

1.) Patients with Dementia, in

 

2.) Patients with Mild Cognitive Impairment, and

 

3.) to Monitor Therapeutic Efficacy

 

 

Background:
Neurotrope and the Blanchette Rockefeller Neurosciences Institute (BRNI) have entered into a Technology License and Services Agreement
that defines the manner in which specified research services provided by BRNI to Neurotrope will be remunerated. The terms and
conditions of this Agreement govern all aspects of the Statement of Work (SOW) encompassing discrete portions of these research
services. The conceptual background, the framework of the trials themselves, and the budget can be as referenced in “The
Diagnostics SOW” provided by Dan Alkon (August 9, 2013 – Appendix A). Where any discrepancies
may arise between the interpretation of this SOW and, ”The
Diagnostics SOW” of August 9, 2013 then the terms and conditions of this SOW shall apply. Where any discrepancies may arise
between the Technology License
and Services Agreement and this SOW concerning any element of executing or fulfilling the research services defined in this SOW,
then the terms and conditions as enumerated in Technology License and Services Agreement shall apply.

 

This SOW is being entered into under the
“Preferred Service Provider” provision in Section 3.2 of the Technology License and Services Agreement.

 

Project Description: This project
is intended to validate each of 3 biomarkers in a heterogeneous patient population to determine sensitivity and selectivity parameters
for each biomarker, or combination of biomarkers to detect Alzheimer’s Disease. The 3 biomarkers to be evaluated are: the
PKCε levels, the Erk1/2 ratios, and the fibroblast morphology test. These three biomarkers integrate distinct molecular
cascades and thus reflect the complexity of AD that also involves multiple molecular cascades. Although PKC epsilon converges with
all of these cascades, including those that are synaptogenic and anti-amyloidogenic, it is only part of a much larger picture.
For these reasons, the three clinical trials that are planned, each assessing different potential products, could each very easily
demonstrate a distinct profile of the three BRNI Biomarkers.

 

    	 

    	August 28, 2013	2

    

 

Project Objectives and Deliverables:
 Each of the 3 biomarkers will be individually evaluated in the same skin biopsy sample. The study design is intended to be
scaled to a sufficient “power” to generate meaningful statistical significance upon its outcome and analysis. At present,
the number of patients contemplated for the 1st clinical trial study is approximately 150, however this number could
be increased at the request of Neurotrope. This study will be carefully designed to be validated by autopsies, genetic markers
of dementia (e.g. Presenilin 1,2; Huntington's Chorea), and the absence of dementia in non-demented age-matched controls. The deliverable
for the 1st Clinical Trial as defined is this SOW will culminate within 8–10 months from its onset.

 

Timely evaluation of the biopsy samples
is essential to generate the raw data that will be submitted for statistical analysis. Since this is intended to be a prospective,
double blind study, Neurotrope and BRNI will collaborate on the clinical protocol design to insure industry standards on Quality
Assurance and Compliance are put in place at the outset of the study, and moreover are adhered to throughout the entire study period
that will, with sufficiently accurate diagnostics in Trial 1, extend into 2015. Under the supervision of professional statisticians,
at least one or more Bayesian analyses will be conducted to intervene with data analysis to check for possible improvements that
may be required for the most accurate diagnostic testing.

 

Neurotrope and BRNI will both need to approve
the study design and clinical protocol to be used in this prospective trial before such study can be initiated.

 

The final study reports for each SOW completed
for the Diagnostic Clinical Trials will be prepared by BRNI and will summarize the results of the statistical analysis for the
sensitivity and selectivity of each of the biomarkers in the study population, and any synergistic or complicating factors which
augment or detract from the power of this biomarker analysis to detect Alzheimer’s Disease.

 

The outcome of this study is envisioned
to be a key determinant in deciding whether this system of biomarker analyses, or variants of it, could be offered as a laboratory
test service for commercial sale as provided through a CLIA accredited laboratory.

 

Budget Allocations:

 

Internal Costs to BRNI: BRNI has
put forth an annual budget for the operation of the Diagnostic Research Lab covering facility,
personnel and materials of approximately $1.6 million. These cost estimates are listed in Figure 1.

 

    	 

    	August 28, 2013	3

    

 

Figure 1

Estimated Internal Costs for Operation of the Diagnostic Lab
for a 12 Month Period

 

	Personnel	$884,751
	Overhead	$324,100
	Assay Costs	$255,820
	Skin Samples	$13,200
	Travel	$63,200
	Administrative	 
	& Equipment	$104,399
	Total	$1,645,470

 

Funding of BRNI’s Operating Expenses
in the Diagnostic Lab for the first 12 Month Period: 

 

From the date this SOW is executed between
the Parties, Neurotrope will fund BRNI on the first business day of each month for a period of 12 months 1/12 of the total reported
in Figure 1 ($1,645,470), or $137,123 per month to support the operating expenses of the Diagnostic lab.

 

Operating expenses that run in excess of
this amount are the responsibility of BRNI unless prior approval is obtained from Neurotrope to exceed the monthly operating expense.
However, factors that would determine extension of the first 12 month period for the first SOW (Definitive Diagnosis of Alzheimer's
disease – AD) will include the actual start date of a fully functional Diagnostic Lab in Rockville with personnel, equipment,
and supplies acquired and personnel trained), the completion of the required contracts with the clinical sites, and the onset of
samples being sent for analysis. Another determining factor will be the number of autopsies completed in order to sample the corresponding
skin samples. If <45 are available by the end of an 8 month period beginning when the fully functional program is achieved,
more clinical samples and autopsies may be required. In addition, some samples from tissue banks, if appropriately autopsied, may
be used to supplement the samples obtained from the clinical sites.

 

The goal of the Definitive Diagnosis trial
is to be completed within 8–10 months, from the time of onset of a fully functional diagnostic lab. However, mitigating factors
described above (e.g. available autopsies) may extend this timeline. It should be emphasized, however, that if everything proceeds
according to plan, the first clinical trial should be completed by mid-2014.

 

Annual operating expenses for the Diagnostic
Lab which exceed the $1,645,470 total are the responsibility of BRNI unless prior approval is obtained from Neurotrope to exceed
this number.

 

    	 

    	August 28, 2013	4

    

 

It is understood between the Parties that
the funding of this budget by Neurotrope is targeted to support and conclude this SOW in a timely and efficient manner. BRNI has
estimated the time to completion of this SOW to be 8-10 months once the Diagnostic Lab is staffed at full force. Providing BRNI
with a 2 month ramp-up time to become fully operational in the Diagnostic Lab infers that more than 1 year of funding the costs
of this lab may be required to allow completion of the 1st Clinical Trial (Definitive Diagnosis of AD in Patients with
Dementia) SOW. Provided Neurotrope is given a 2 month advance notice that the SOW may exceed 12 months in length to complete
the first Clinical Trial (the Definitive Diagnosis of AD), Neurotrope will agree to continue funding of the SOW to allow
the conclusion of the 1st Clinical Trial for a period of time not to exceed 6 months,
unless the Parties otherwise agree that a longer extension of this SOW is prudent and practical.

 

If the results of this
1st Clinical Trial are accurate (at least 90% sensitivity and at least 90% specificity), the other two SOWs, MCI Diagnosis
and Therapeutic Efficacy will be validated in succeeding trials through 2015, provided Neurotrope and BRNI are unanimous on their
agreement that such studies are warranted and will further enhance the commercial attractiveness of this diagnostic system. If
the sensitivity and specificity are <90%, 3–4 months may be funded for refinements that improve that accuracy.

 

External Costs:
The costs calculated by BRNI for the ongoing support and conclusion of this SOW are itemized in Figure 2.
(Patent Costs will also be covered by Neurotrope as specified in the Technology License and Research Services Agreement).
NTRP will be responsible for directly funding the external costs associated with this SOW and will advise BRNI on any
budget overages on a timely basis as they are realized or foreseen. Neurotrope will also be responsible for contracting with the
3rd parties associated with providing services for the categories of external costs itemized in Figure 2, or other 3rd
party expenses that may be incurred in the execution of this SOW subject to consent of BNRI.

 

Figure 2

 

Estimated External Costs to complete Study 1

 

	 	Number	Cost
	Skin Samples	150	$403,200
	Autopsy	25	$324,100
	Statistical Support	 	$150,000
	Total	 	$877,300

 

    	 

    	August 28, 2013	5

    

 

SOW Timeline: Projected start date
for this SOW is Sept 1, 2013. The completion date for the first Diagnostic Clinical Trial (Definitive Diagnosis of AD) is targeted
in the 3rd quarter of 2014, subject to the uncontrollable factors listed above. The completion date for the MCI Diagnostic
Clinical Trial and the Therapeutic Diagnostic Clinical Trial is targeted for September 2015,
but no later than December 31, 2015. These 2nd and 3rd clinical trials each constitute a separate SOW, and
for some time may be conducted concurrently with each other and with the 1st clinical trial, at the discretion of Dr.
Dan Alkon. Similarly, training of staff from commercial labs may commence after completion of the 1st Diagnostic Clinical
trial.

 

The overall budget that encompasses all
three SOWs, as described above, is not expected to exceed $6 million. For the MCI Diagnostic Clinical Trial (SOW #2) and the Therapeutic
Diagnostic Clinical Trial (SOW #3), separate budgets will need to be prepared with fully loaded projected expenses expected to
be incurred to complete them.

 

Man-in-the-Plant: Neurotrope will
be allowed to send a company employee, or 3rd party consultant working for Neurotrope, into the Diagnostic Lab on a
bimonthly basis to observe and monitor the progress being made on the SOW. BRNI will be provided with a 7 day advance notice via
email to both the CEO of BRNI and Dr. Dan Alkon when the Neurotrope representative is planning to visit the Diagnostic Lab and
will exercise best efforts to accommodate this visit on or as close to the proposed visit date as is feasible.

 

Monthly Teleconferences: Neurotrope
and BRNI agree to have a monthly teleconference to be scheduled in the first week of each month during the period of time this
SOW is active, in order to exchange information on the progress in the SOW.

 

Both BRNI and Neurotrope BioScience have
reviewed and agreed to the contents of this SOW, and attest to such by their respective signatures below.

 

 

	Approved by:	 
	 	Dr. Daniel L. Alkon
	 	Chief Scientific Officer, Neurotrope BioScience
	 	Scientific Director, Blanchette Rockefeller Neurosciences Institute

 

 

	On Behalf of BRNI:	 	 	On Behalf of Neurotrope BioScience:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Shana Kay Phares	 	 	Dr. Jim New	 
	CEO	 	 	President and CEO	 
	Blanchette Rockefeller Neurosciences Institute	 	 	Neurotrope
BioScience

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