Document:

Exhibit 10.33

 

Certain portions of this Exhibit have been omitted
pursuant to a request for confidentiality. 
Such omitted portions, which are marked with brackets [   ] and an asterisk*, have been separately
filed with the Commission.

 

 

SYNDICATED SALES FORCE AGREEMENT

 

This SYNDICATED SALES
FORCE AGREEMENT (“Agreement”) is dated as of August 1, 2005 (“Effective
Date”) by and between Cardinal Health PTS, LLC (“Cardinal Health”) with a place
of business at 7000 Cardinal Place, Dublin, Ohio, and Acorda Therapeutics, Inc.
(“Acorda”), having a principal place of business at 15 Skyline Drive,
Hawthorne, NY 10532.

 

Background Information

 

Acorda develops,
distributes and sells pharmaceutical products, and Cardinal Health provides
pharmaceutical representatives who Detail (as hereinafter defined)
pharmaceutical products for third parties.  Acorda desires Cardinal Health to provide
representatives to Detail certain products as determined and directed by Acorda
in the geographical territory hereinafter specified, pursuant to the terms and
conditions of this Agreement, and Cardinal Health desires to provide the
Representatives and perform such services pursuant to the terms and conditions
set forth in this Agreement.

 

The parties hereby agree
as follows:

 

ARTICLE I

DEFINITIONS

 

1.1.          Definitions.
 The following terms when used in this
Agreement shall, except where the context otherwise requires, have the
following meanings:

 

(a)           “Act”
means the Federal Food, Drug and Cosmetic Act, as amended, and the rules and
regulations promulgated thereunder from time to time.

 

(b)           “Adverse
Event” or “AE” means any undesirable event or experience associated with the
use of the Product(s), whether or not expected and whether or not considered
related to or caused by the Product(s), including, but not limited to, an event
or experience that occurs in the course of the use of the Product(s) in
professional practice, from overdoses whether accidental or intentional, from
abuse, from withdrawal, or from a failure of expected pharmacological or
biological therapeutic action of the Product(s).  This includes but is not limited to data from
clinical trials, post-marketing reports, registries, surveys, etc.

 

(c)           “Affiliate”
means any corporate or non-corporate business entity that controls, is controlled
by, or is under common control with a party to this Agreement.  A corporation or non-corporate business entity
shall be regarded as in control of another entity if it directly or indirectly
owns or controls more than fifty percent (50%) of the voting equity of the
other entity, or (i) in the absence of the ownership or control of more
than fifty percent (50%) of the voting equity of an entity or (ii) in the
case of a non-corporate business entity, if it possesses directly or
indirectly, the power to direct or cause the direction of the management and
policies of such corporation or non-corporate business entity, as applicable.

 

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(d)           “Agency”
means any governmental authority in the Territory with regulatory, enforcement
or other oversight, authority or jurisdiction over the Products, the Program,
or any of the actions or transactions contemplated by this Agreement,
including, without limitation, the FDA.

 

(e)           “Authorized
Request” means a request received on a sample request form conforming with all
of the requirements of the PDMA, including bearing the requester’s verified
name, address, professional title, State license or authorization number (or
Drug Enforcement Administration number, as applicable) and telephone number,
together with the date of the request and the name of the product, strength and
quantity to deliver (which information has been verified by a subcontractor of
Cardinal Health with the appropriate State authority to confirm that the Target
Customer requesting the drug sample is licensed or authorized under State law
to prescribe the product).

 

(f)            “Contract
Year” shall refer to each 12 month period beginning, with respect to the First
Contract Year, on the Program Launch Date, and with respect to all subsequent
Contract Years, on the anniversary date of the Program Launch Date of this
Agreement.

 

(g)           “Detail”
means an interactive, face-to-face visit by a Representative with a Target
Customer or his or her legally empowered designee in the Territory, during
which the Product(s), including its FDA-approved indicated uses, safety,
effectiveness, contraindications, side effects, warnings and other relevant
characteristics of the Product(s) (as defined herein) are described by the
Representative in a fair and balanced manner consistent with the requirements
of all Laws and SOPs (each as defined herein), and using, as necessary or
desirable and to the extent available, the Product Labeling (as defined
herein), the Product Promotional Materials (as defined herein) and the Product
samples. “Product Detail” means Detail of a Product between Target Customer and
Representative.  When used as a verb,
“Detail” or “Detailing” shall mean to engage in a Detail as defined in this Section 1.1(g).

 

(h)           “FDA”
means the United States Food and Drug Administration and any successor agency
having substantially the same functions.

 

(i)            “Laws”
means any and all federal and state laws, statutes, codes, rules regulations,
policies and guidelines applicable to the Program, the Product(s), the
performance of the Detailing and the other services and obligations under this
Agreement and the transaction contemplated hereby, including but not limited to
the Act, the PDMA, the PhRMA Code, the Medicare and Medicaid Anti-Kickback Act
(42 U.S.C. § 1320a-7b(a)), the Civil False Claims Act (31 U.S.C. § 3729(a)),
Sections 1128A, 1128B, and 1877 of the Social Security Act (42 U.S.C. §§ 1320a-7a,
-7b, and 1395nn), the Health Care Fraud Act (18 U.S.C. § 1347), the
Criminal False Claims Act (18 U.S.C. § 287) and the American Medical
Association Gifts to Physicians from Industry Guidelines, each as amended from
time to time and including all regulations, rules, policies and guidelines
promulgated thereunder.

 

2

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(j)            “Manager”
means an individual hired by and retained as an employee of Cardinal Health to
supervise activities of Representatives under this Agreement, including
district sales managers, regional sales directors, a national sales director,
and a project manager.

 

(k)           “PDMA”
means the Prescription Drug Marketing Act of 1987, as amended, and the rules and
regulations promulgated thereunder from time to time.

 

(l)            “PhRMA
Code” means the Code on Interactions with Healthcare Professionals, as adopted
by the Pharmaceutical Research and Manufacturers of America, as amended from
time to time.

 

(m)          “Primary
Detail” means a Detail in which a particular product is the first product to be
detailed during a visit to a particular Target Customer.

 

(n)           “Product”
means each of the pharmaceutical products to be Detailed by Representatives and
marketed by Acorda as set forth on attached Schedule 1.1(n) and such other
products as may be mutually agreed between the parties and added to Schedule 1.1(n)
attached hereto.

 

(o)           “Product
Labeling” means all labels and other written, printed, or graphic matter
provided by Acorda to accompany or be included in each package of the Product
including without limitation (i) any container or wrapper utilized with a
Product, or (ii) Product package inserts.

 

(p)           “Product
Promotional Materials” means all written, printed or graphic material provided
by Acorda, including Product Labeling, intended for use by Representatives
during a Detail, including visual aids, file cards, premium items, clinical
studies, reprints, drug information updates and any other promotional support
items that Acorda deems necessary or appropriate to conduct the Program.  Product Promotional Materials shall include
materials describing FDA-approved indicated uses, safety, effectiveness,
contraindications, side effects, warnings and other relevant characteristics of
a Product.  Acorda shall have the right
from time to time to add, remove or replace items in the collection of Product
Promotional Materials upon written notice of such change to Cardinal Health.

 

(q)           “Program”
means the program of Detailing to be conducted by the Representatives pursuant
to this Agreement and during the Term of this Agreement, as defined in Section 14.1.

 

(r)            “Program
Launch Date” means the first Monday following completion of the Acorda Training
Program (as defined in Section 6.1).

 

(s)           “Representative”
and “Representatives” mean an individual hired by and retained as an employee
of Cardinal Health to conduct Detailing of Products in connection with the
Program.  As sometimes used in this
Agreement, “Representatives” shall also include “Managers” if the context so
requires.

 

3

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(t)            “SOPs”
mean all of the combined standard operating procedures and policies of Cardinal
Health that are applicable to the Program, the Product(s), the performance of
the Detailing, the other services and obligations under this Agreement and all
of the transactions contemplated hereby (including but not limited to policies
and procedures designed to ensure compliance with all Laws); provided, however,
that for purposes of this Agreement, any and all Written Instructions agreed
upon by the parties pursuant to and as defined in Section 2.3(e) of Article II,
shall be binding upon Cardinal Health and accorded the same force and effect as
if they were incorporated within the definition of SOPs hereunder.

 

(u)           “Sub-Territory”
shall mean any portion of the Territory served by the Representatives as of the
Effective Date of the Agreement or otherwise agreed upon by the parties.

 

(v)           “Target”
or “Target Customer” means a physician in the Sub-Territories within the Family
Practice, General Practice, and/or Internal Medicine Physician target audience
as identified from time to time by Acorda during the Term of this Agreement.

 

(w)          “Territory”
means the states and territories of the United States of America, as divided
into the Sub-Territories.

 

(x)            “Year
One” means the 12-month period commencing on August 1, 2005 and ending on July 31,
2006.

 

(y)           “Year
Two” means the 12-month period commencing on August 1, 2006 and ending on July 31,
2007.

 

ARTICLE II

APPOINTMENT OF CARDINAL HEALTH; GENERAL SCOPE OF ACTIVITIES

 

2.1.          Detailing.

 

(a)           Targeted Customers.  Cardinal Health shall use its syndicated
sales force of 162 Representatives to engage in Product Detail activities in
the Territory.  Cardinal Health shall assign
Representatives for each of the 4,000 Target Customers, in such numbers, and in
such Sub-Territories as shall be designated by Acorda from time to time during
the Term of this Agreement.  Each
Representative shall make Product Details on his or her assigned Target
Customers based on the general direction given by Acorda’s management team and
as mutually agreed to by Cardinal Health. 
If requested by a Target Customer, Representatives shall be authorized
to provide samples of the Product(s) in accordance with Article VII.  Unless otherwise agreed to by the parties in
writing, all Details of the Product will be Primary Details.  In addition, the Representatives shall not be
permitted during the Term of this Agreement to Detail any products competing
with Acorda’s Product(s) to any of the Target Customers.  The appointment of Cardinal Health by Acorda
under this Agreement is on a non-exclusive basis and Acorda shall at all times
retain the right to promote the Product(s) by whomever, wherever, to whomever and
by whatever method it chooses.

 

4

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

2.2.          Managers.  Cardinal Health will provide an adequate
number of Managers as mutually agreed upon by the parties prior to the
execution of this Agreement to supervise the activities of Representatives.

 

2.3.          Scope
of Activities.  The parties shall
perform the following activities in connection with the Program:

 

(a)           Cardinal
Health shall have sole and exclusive authority to discipline or terminate the
employment of Cardinal Representatives and the Managers.  At Acorda’s request, Cardinal Health shall
cause any Cardinal Representative to immediately cease Detailing the Product
based on substantial non-performance or non-insignificant compliance violations
as evidenced in performance evaluations or a finding of non-compliance with the
terms of this Agreement (including but not limited to, failure to follow
Detailing procedures, to comply with Laws or SOPs, or to follow Acorda’s
Written Instructions).  Cardinal shall
either substitute a new Representative to replace any disqualified
Representative or re-assign the Sub-Territory of other Representatives in order
to ensure that the Target Customers of any disqualified Representative are
Detailed by other Representatives. 
Cardinal shall ensure that no substitute Representative shall commence
Detailing without completing the training required under Article VI.

 

(b)           Cardinal
Health shall cause each Representative and Manager to attend and successfully
complete the Acorda Training Program (as defined in Section 6.1)
(including but not limited to training sessions to be conducted by Acorda for
each of the Product(s)) and pass the proficiency test specified in Section 6.1(b),
prior to participating in the Program. 
Cardinal shall be responsible for ensuring that any Representative or
Manager who has not successfully completed all such training requirements shall
not Detail the Product(s) or supervise the sales force (as applicable).

 

(c)           Cardinal
Health’s district Managers shall periodically accompany Representatives on
Details, conduct field evaluations of the Representatives and the Program,
including time supervision, Territory management and reporting, and provide a
copy of all such evaluations to Acorda’s coordinator of the Program (or other
Acorda representative).  At Acorda’s
request, Cardinal Health shall be available to discuss the evaluations with
Acorda, and permit an Acorda representative to accompany the Representatives on
Details.

 

(d)           At
the request of Cardinal Health, Acorda shall provide Cardinal Health, without
cost, with Product Promotional Materials for the performance and supervision of
Detailing.  In light of the at risk fee
arrangement contemplated by this Agreement, Acorda shall use its reasonable
commercial efforts to maintain and supply Product Promotional Materials for the
Representatives to perform Details in accordance with the SOPs.  For avoidance of doubt, Acorda shall be
deemed to have used reasonable commercial efforts as described in the preceding
sentence if its failure to maintain and supply Product Promotional Materials
arises from problems in the production or delivery of Product Promotional
Materials or delay in or lack of approval by a third party, including, without
limitation, FDA.  Acorda shall be solely
responsible for the preparation, content and method of distribution of the
Product Promotional Materials.  Acorda or
its distributor shall be responsible for distributing the Product samples

 

5

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

directly to the Representatives, as described in Article VII.  In connection with the Detailing of the
Product(s), the Representatives shall use only the Product Promotional
Materials provided by Acorda; and under no circumstances shall Cardinal Health
or the Representatives develop, create, or use any other promotional material
or literature, or materials or other promotional materials of any kind, for the
Detailing of the Product(s).  Acorda will
coordinate with Cardinal Health to replenish supplies of Product Promotional
Material when depleted.  Acorda shall
advise Cardinal Health immediately of any inaccuracy or incompleteness of the
Product Promotional Materials, and upon such notice Cardinal Health and the
Representatives shall immediately cease the use of any portion or all of the
Product Promotional Materials so identified by Acorda, and either destroy or
return such Product Promotional Materials to Acorda, at Acorda’s instruction
and expense.

 

(e)           Cardinal
Health shall instruct the Representatives to limit their verbal statements and
claims regarding the Product(s), including but not limited to statements
regarding efficacy and safety, to those authorized by Acorda (as specified
during the Acorda Training Program) and that are consistent with the Product
Promotional Materials.  The Representatives
shall not add, delete or modify Acorda’s approved claims of efficacy or safety
in the Detailing of the Product(s), nor make any changes (including underlining
or otherwise highlighting any language or adding any notes thereto) in the
Product Promotional Materials. 
Representatives shall not make any disparaging, untrue or misleading
statements about Acorda or any of its Affiliates, employees, competitors or
competing products, or intentionally omit to make any statement necessary to
avoid making any such statement false or misleading.  Representatives shall Detail the Product(s)
in strict adherence to all Laws, SOPs and all written instructions agreed upon
by the parties in writing at any time during the course of the Program, whether
presented during the Acorda Training Program (as defined below), during any
follow-up training, or at any other time (collectively, the “Written
Instructions”).  Cardinal Health shall
not unreasonably withhold or delay its approval and implementation of any
reasonable written instructions proposed by Acorda and, in the case of
instructions that relate to the Product, Cardinal Health shall timely implement
all reasonable written instructions proposed by Acorda.  Acorda shall ensure that all the Written
Instructions comply with all applicable Laws; Cardinal Health shall ensure that
all SOPs comply with all applicable Laws.

 

(f)            The
Representatives shall remain under the direct authority and control of Cardinal
Health, but shall cooperate with Acorda and shall follow the advice and
direction related to Detail activities on the Product(s) from Acorda and
Cardinal Health mutually.  Acorda shall
make all decisions with respect to the overall strategy in connection with the
Detailing of the Product(s) to the Target Customers.  Any Acorda personnel interacting with
Cardinal Health Representatives shall not discipline the Representatives or
implement terms or conditions of employment or personnel policies and/or
practices with respect to the Representatives or otherwise control the daily
activities of Representatives.

 

(g)           Cardinal
Health shall at its sole cost and expense supply Representatives and Managers
with fleet vehicles for their use in performing and supervising the
Detailing.  Acorda shall reimburse
Cardinal Health for all reasonable out-of-pocket costs and expenses of
Representatives and Managers in connection with Acorda Training Program and the
POA meetings (as defined in Article VI) if such programs and meetings have
been approved in

 

6

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

advance in writing by Acorda.  Acorda and Cardinal Health shall establish a
mutually acceptable budget for the costs and expenses referenced in this
subparagraph 2.3(g) for each Sub-Territory, and Cardinal Health shall
obtain prior written approval for any such costs or expenses that exceed the
budget.

 

(h)           Acorda
shall periodically provide Cardinal Health with data on Product sales in the
Territory during the Term as of this Agreement for Cardinal Health’s use in
performing this Agreement.  Acorda shall
also provide Cardinal Health with such other sales and marketing information
concerning the Product(s) as Acorda shall deem appropriate, in its sole
discretion.  Any information which Acorda
elects to share with Cardinal Health under this Section 2.3(h) shall
be limited to provision of such information only to the extent allowable under
Acorda’s agreements with third parties providing such information to
Acorda.  All information provided by
Acorda, its officers, agents or representatives shall be deemed Confidential
Information belonging to Acorda and shall be treated in accordance with Article 13
hereof.

 

(i)            Unless
otherwise approved in writing by Acorda, the Representatives and Managers shall
not invite any Target Customer, or any member of his or her staff or any other
health care professional, to any promotional or educational events or
activities, or provide any meals, trips or entertainment, or provide any gifts
or remuneration in any form, kind or amount to any of them.  In the event Acorda hereafter authorizes the
Representatives as a group to engage in such promotional or educational
activities, Acorda shall so inform Cardinal Health in writing and establish
policies, guidelines, training requirements and budgets that must be observed
in conducting such activities and agreed to by Cardinal Health.

 

2.4.          Orders
for Products.  Acorda shall be solely
and exclusively responsible for establishing the terms and conditions of the
sale of the Product(s), including without limitation, the price at which the
Product(s) will be sold, whether sales of the Product(s) will be subject to any
discounts, the method of distribution of the Product(s), and whether any credit
will be granted or refused in connection with the sale or return of any
Product(s).  Acorda shall be exclusively
responsible for accepting and filling all purchase orders for the Product(s),
billing and returns for the Product(s), and all other activities in connection
with the sale and delivery of the Product(s), other than Detailing.  If Cardinal Health or the Representatives
receive an order for the Product(s) or are informed that any entity that wishes
to place an order, they shall immediately transmit such order or request to
Acorda for further handling and communications with the submitter of the order
or request, including acceptance or rejection, which shall be in Acorda’s sole
discretion.

 

2.5.          Representatives’
Activity.

 

(a)           Subject
to Acorda’s obligations and representations and warranties in this Agreement,
any breach of the terms of this Agreement on the part of the Representatives or
Managers (both individually and as a group) shall be deemed to be a breach of
this Agreement by Cardinal Health. 
Notwithstanding the foregoing, any acts or omissions of the
Representatives or Managers pursuant to the direction, control or supervision
of Acorda or its employees or

 

7

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

agents shall not be deemed to be negligent or wrongful
acts or omissions of Cardinal Health that constitute a breach of this
Agreement.

 

(b)           Each
party shall notify the other in writing as promptly as practicable of any such
alleged breach on the part of the Representatives or Managers of which it
becomes aware.  Acorda shall provide
Cardinal Health with a reasonable opportunity to remedy such breach to the
extent provided in Section 14.4.

 

2.6.          Vacancies/Turnover.  In the event of a Representative vacancy due
to resignation, reassignment or termination of a Representative, Cardinal
Health shall use its best efforts to fill any such vacancy within a six (6) week
period.  Due to the fee structure under
this Agreement, the agreed-upon Service Fees (as defined below) will not be
reduced by any Representative vacancy, provided that all missed Details are
made up within a reasonable period of time. 
In the event any such vacancy continues for longer than six (6) weeks,
Cardinal Health shall reassign Representatives to ensure that no more than six (6) weeks
passes between Details of any Target Customer as a result of any such vacancy.

 

2.7.          Management
Reports.  Cardinal Health shall
provide Acorda with written monthly and other reports in the form and substance
as reasonably agreed to by the parties, including but not limited to those set
forth in Schedule 2.7.  Such reports
shall be provided within fifteen (15) days after the end of the period covered
by such report or as otherwise mutually agreed to by the parties.  At the request of Acorda, Cardinal Health
shall furnish Acorda at reasonable times such documentation as Acorda
reasonably requests for purposes of verifying the accuracy of any report.  Cardinal Health shall also provide Acorda
with periodic oral reports including but not limited to weekly conference calls
and Manager’s reports.

 

2.8.          Project
Manager.  Cardinal Health shall
appoint a project Manager to serve as a liaison between Cardinal Health,
Representatives and Acorda regarding the performance by Cardinal Health, the
Representatives and Acorda of their respective obligations under this
Agreement.

 

ARTICLE III

COMPENSATION

 

3.1.          Amount
and Time of Payment.  Subject to the
achievement of certain gross sales receipts for the Product(s) during the Term
of this Agreement, as further described in Schedule 3.1, Acorda shall pay
to Cardinal Health the fees set forth in Schedule 3.1 attached hereto and
incorporated by reference (the “Services Fee”), which shall be payable as set
forth in the payment schedule set forth therein.

 

3.2.          Reimbursement
of Expenses.  All expenses of
Cardinal Health for which Acorda is obligated to reimburse Cardinal Health
under Schedule 3.1 subsection ”Direct Pass Through Costs” of this
Agreement, including but not limited to reasonable costs and expenses in
connection with Acorda Training Program and the POA meetings under Section 2.3(g),
shall be paid by Acorda within thirty (30) days after Cardinal Health has
submitted a statement to Acorda itemizing such expenses with reasonable
supporting documentation and original receipts.

 

8

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

4.1.          By
Cardinal Health.  Cardinal Health
represents, warrants, and covenants to Acorda, on behalf of itself and each of
its Representatives and Managers, as of execution of this Agreement and during
the term of this Agreement, as follows:

 

(a)           that
Cardinal Health and the Representatives shall perform the Detailing,
supervisory, reporting and Product sample-related services in a professional
and timely manner;

 

(b)           that
Cardinal Health shall comply with all Laws and SOPs in conducting the Program
and performing its services and obligations under this Agreement;

 

(c)           when
on Acorda’s premises or on the premises of Acorda’s clients or any Target
Customer, Cardinal Health and the Representatives shall comply with all of
Acorda’s or such client’s or Target Customer’s policies regarding the conduct
of visitors of which Cardinal Health (including the Representatives and
Managers) are aware;

 

(d)           that
Cardinal Health is under no obligation to any third party that would prevent
the execution of this Agreement or interfere with its performance under this
Agreement, and it agrees promptly to inform Acorda of any event or change in
circumstances which may reasonably be expected to negatively affect Cardinal
Health’s ability to perform its obligations hereunder in the manner
contemplated by the parties;

 

(e)           that
neither Cardinal Health nor any Representative or Manager has been debarred
pursuant to the Act, been excluded from participating in a federal health care
program, including without limitation the Medicare or Medicaid programs, or
otherwise been disciplined, censured or fined by any federal or state Agency;
and if hereafter any of them is subsequently debarred under the Act, excluded
from a federal health care program or disciplined, censured or fined, or if any
of them receive notice of any pending proceeding in which such debarment,
exclusion, discipline, censure or fine could be imposed, Cardinal Health agrees
immediately to notify Acorda thereof; and

 

(f)            Cardinal
Health shall neither disclose to Acorda, nor induce Acorda to use any secret or
confidential information or material belonging to third parties.

 

4.2.          By
Acorda.  Acorda represents, warrants,
and covenants to Cardinal Health, as of execution of this Agreement and during
the term of this Agreement, as follows:

 

(a)           that
Acorda is under no obligation to any third party that would prevent the
execution of this Agreement or interfere with its performance under this
Agreement, and it agrees promptly to inform Cardinal Health of any event or
change in circumstances which may reasonably be expected to negatively affect
Acorda’s ability to perform its obligations hereunder in the manner
contemplated by the parties;

 

9

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(b)           that
Acorda shall comply with all Laws and SOPs with respect to the manufacture and
use of the Product(s) and their sale and Acorda’s performance of its
obligations under this Agreement;

 

(c)           that
the Product Promotional Materials are not false or misleading, and are in
compliance with the Act and all rules and regulations of the FDA;

 

(d)           to
the knowledge of Acorda, the manufacture, sale and distribution of the
Product(s) do not and will not during the Term of this Agreement, infringe any
valid patent or other proprietary rights of third parties, and the Product(s)
have all necessary governmental approvals and may be lawfully Detailed by
Cardinal Health and sold by Acorda; and

 

(e)           that
Acorda has not been debarred pursuant to the Act, been excluded from
participating in a federal health care program, including without limitation
the Medicare or Medicaid programs, or otherwise been disciplined, censured or
fined by any federal or state Agency; and if hereafter Acorda is subsequently
debarred under the Act, excluded from a federal health care program or
disciplined, censured or fined, or if Acorda receives notice of any pending
proceeding in which such debarment, exclusion, discipline, censure or fine
could be imposed, Acorda agrees immediately to notify Cardinal Health thereof.

 

ARTICLE V

STATUS OF CARDINAL HEALTH AND THE REPRESENTATIVES

 

5.1.          Cardinal
Health Independent Contractor.  The
relationship of Cardinal Health to Acorda hereunder is strictly as an
independent contractor.  Representatives
and Managers of Cardinal Health performing services hereunder shall not be, and
shall not be considered to be, employees of Acorda for any purpose, and shall
at all times remain employees of Cardinal Health.  Neither party shall have any responsibility
for the hiring, termination, compensation, benefits or other conditions of
employment of the other party’s employees.

 

5.2.          No
Acorda Benefits.  The Managers and
Representatives are not eligible to participate in any benefits programs or
sales bonuses offered by Acorda to its employees, or in any pension plans,
profit sharing plans, insurance plans or any other employee benefit plans
offered from time to time by Acorda to its employees, provided that the
Representatives shall be eligible to participate in Acorda incentive programs
if so requested by Acorda and approved by Cardinal Health.  Cardinal Health acknowledges and agrees that
Acorda does not, and will not, maintain or procure any worker’s compensation or
unemployment compensation insurance for or on behalf of the Managers or
Representatives.  Cardinal Health
acknowledges and agrees that it shall be solely responsible for paying all
salaries, wages, benefits and other compensation which its employees (including
Representatives and Managers) may be entitled to receive in connection with the
performance of the services hereunder and otherwise.

 

5.3.          Sales,
Use and Excise Taxes.  If any state
or local government or other taxing authority determines that sales, use or
excise Taxes (“Taxes”) (excluding income and employee related taxes,
withholding and contributions) are applicable to Cardinal Health’s performance
hereunder, Cardinal Health shall promptly accrue and Acorda shall pay such
Taxes on behalf of

 

10

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Cardinal Health to the appropriate taxing authorities,
provided that Acorda shall have the right to challenge the applicability or
amount of such Taxes and Cardinal Health will cooperate with any such
challenge.  In addition, Acorda shall be
responsible for the payment of any applicable Taxes related to Acorda’s supply
to Cardinal Health of Product Promotional Materials and Product Samples.

 

5.4.          No
Joint Venture.  Nothing contained in
this Agreement shall be construed as creating a joint venture or, as granting
to either party the authority to bind or contract any obligations in the name
of or on the account of the other party or to make any guarantees or warranties
on behalf of the other party.

 

ARTICLE VI

TRAINING

 

6.1.          Training
Programs.

 

(a)           Acorda
shall provide on-line and/or home study materials to the Managers and
Representatives as well as conduct a national training program for the
Representatives and Managers prior to the commencement of the Program, each of
which shall include such medical, technical and related legal and regulatory
information about the Product(s) and such training to familiarize the
Representatives and Managers with Acorda’s specific sales strategies and
guidelines, if any (to the extent different from those of Cardinal Health) as
Acorda deems necessary and appropriate (collectively, the “Acorda Training
Program”).  Cardinal Health shall be
responsible for ensuring that all Managers and Representatives have been
trained with respect to the SOPs, general legal and regulatory compliance
programs, training relating to sales of pharmaceutical drugs, general sales and
promotion techniques and strategies, and Adverse Event (as defined in Article XI)
reporting (collectively, the “Cardinal Health Training Requirements”).  Cardinal Health shall arrange for all
Representatives and Managers to have successfully passed the Cardinal Health
Training Requirements prior to the completion of the Acorda Training Program.  Cardinal Health shall assist Acorda with the
Acorda Training Program only to the extent requested by Acorda.  In addition to the foregoing, Cardinal Health
and Acorda shall jointly develop a plan of action (“POA”) covering the sales
strategy to be implemented in the Program, and conduct joint presentations and
meetings with the Representatives and Managers with respect thereto.  After the commencement of the Program, Acorda
and Cardinal Health shall cooperate in order to ensure that all replacement
Managers and Representatives who join the Program after its Launch Date shall
complete all training required under this Article VI.

 

(b)           In
order to qualify for assignment in a Sub-Territory, a Representative must
demonstrate thorough knowledge of the Product(s) by passing Acorda’s approved
Product(s) tests at a level of proficiency acceptable to Acorda and agreed to
by Cardinal Health.

 

6.2.          Acorda
Assistance.  During the term of this
Agreement, Acorda shall make available to Cardinal Health, free of charge, a
number of Acorda’s sales training and marketing personnel (as deemed reasonably
appropriate by Acorda) to assist Cardinal Health’s Representatives and Managers
with respect to the Training Program and additional orientation and any ongoing
training for the Representatives and Managers.

 

11

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

ARTICLE VII

SAMPLES

 

7.1.          Provision
of Samples.  If requested by a Target
Customer, the Representatives shall be authorized to provide Product samples
during a Detail pursuant to an Authorized Request.  Acorda or its distributor shall provide
samples of the Product(s) to the Representatives in accordance with Acorda’s
directions relating to sampling.  Acorda
shall determine the quantity and types of samples to be provided to the
Representatives, and the method and schedule of distribution of the
samples (including but not limited to any applicable per physician sample
limits), and provide Written Instructions related thereto, as necessary.  The Representatives shall be solely
responsible for managing the storage, handling and distribution of the samples
to the Target Customers and for requesting additional samples to replenish
their supplies.  Cardinal Health shall be
responsible for preparing periodic, collective sample requisition requests
covering all of the Representatives’ sampling supplies, and for paying all of
the costs for the storage, handling, distribution and other related costs
relating to the samples.  All samples
shall be stored and handled by Acorda and the Representatives in compliance
with the PDMA and all other Laws, SOPs and Acorda’s Written Instructions.  Acorda shall cooperate with the
Representatives to replenish Product sample supplies when depleted; provided
however, that Acorda’s failure for any reason to supply Product samples shall
not be a breach of Acorda’s obligations under this Agreement, nor shall it
excuse Cardinal Health from conducting Product Detailing as required under this
Agreement.

 

7.2.          SOPs
and Sample Accountability Program. 
Cardinal Health has established and shall maintain internal SOPs
relating to drug sampling which shall ensure that all of its Representatives
receive, store, handle, track and distribute drug samples in compliance with
Laws (including but not limited to the PDMA) and with prudent management
practices.  The SOPs comply with all Laws
and include, among other things, its Sample Materials Distribution Instructions
and sample accountability program. 
Cardinal Health shall conduct ongoing training of its Representatives
and Managers to familiarize them with its SOPs, and monitor their compliance
therewith.  The SOPs (including the
sample accountability program) require, among other things, compliance with the
following procedures:

 

(a)           all
samples are stored and handled in a clean, secure environment at room
temperature (or as otherwise required by Product Labeling);

 

(b)           Cardinal
Health maintains appropriate inventory tracking records and controls;

 

(c)           all
damaged, expired or shop-worn samples are returned or destroyed (at Acorda’s
instruction);

 

(d)           Acorda
and its distributor are informed in writing within 72 hours of receipt of any
sample shipment that contains damaged, expired, unusable or missing items
(specifying the number of such affected items);

 

12

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(e)           Cardinal
Health and its Representatives distribute samples only upon receipt of an
Authorized Request;

 

(f)            Cardinal
Health and its Representatives maintain sample distribution records, including
retaining a hard copy of each Authorized Request bearing the requestor’s
signature, as well as a copy of the corresponding receipt of the sample
(recording the name, address, professional title and signature of the person
receiving the sample);

 

(g)           Cardinal
Health and its Representatives monitor all Authorized Requests in order to
ensure that no practitioner receives (whether pursuant to one or more requests)
an aggregate number of samples in excess of any monthly or other limitation
imposed by Law, or any SOP; provided that Acorda will be contacted on a
case-by-case basis if a request is received which, if fulfilled, would exceed
any such applicable limit, and Acorda’s instructions followed with respect
thereto;

 

(h)           Cardinal
Health and its Representatives refrain from selling or trading, or offering to
sell or trade, any samples;

 

(i)            Cardinal
Health uses its best efforts to maintain a 100% sample request-to- inventory
reconciliation; and

 

(j)            Cardinal
Health generates quarterly reports for Acorda (in form and content agreed to by
the parties), containing at a minimum the information specified under “Sample
Inventory Report” in Schedule 2.7, and conducts monthly sample
reconciliations to be reported on a quarterly basis within 30 days of the end
of the quarter.

 

7.3.          Ownership;
Return of Samples.  Cardinal Health
acknowledges and agrees that Acorda’s delivery and consignment of Product
samples to Cardinal Health and the Representatives does not constitute transfer
of ownership therein, and that Acorda shall retain title to all samples until
such time as they are legally distributed to a Target Customer.  Cardinal Health further agrees that, within
30 days following the termination or expiration of this Agreement, or within 30
days from the termination or removal from the Program of a Representative
(unless such Representative has been hired or retained by Acorda), or upon
Acorda’s request at any time during the Term, Cardinal Health shall return, and
cause the Representatives to return, to Acorda any unused Product samples
provided to Cardinal Health by Acorda or its designated distributor.  Acorda shall pay or reimburse Cardinal Health
for all costs and expenses in connection with the storage and shipment of
returned samples.

 

ARTICLE VIII

TRADEMARKS AND INTELLECTUAL PROPERTY RIGHTS

 

The Product(s) shall be
Detailed by Cardinal Health’s Representatives under trademarks and logos owned
by or licensed to Acorda or an Affiliate of Acorda.  This Agreement does not constitute a grant to
Cardinal Health of any license, property right or interest in the Product(s) or
any materials comprising part of the Acorda Training Program, or any trademarks
or other intellectual property right which Acorda or an Affiliate of Acorda
owns or uses with respect to

 

13

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

the Product(s),
the Acorda Training Program, or to the name or business style of Acorda.  Cardinal Health and the Representatives shall
use the Acorda Training Program materials and the Product Promotional Materials
only for the purposes of this Agreement, and all copyright and other
intellectual property rights in the Acorda Training Program materials and the
Product Promotional Materials shall remain with Acorda.

 

ARTICLE IX

COMMUNICATIONS; MONITORING THE PROGRAM

 

9.1.          Communications
from Third Parties.  Except as
provided under Article XI hereof, Cardinal Health and its Representatives
shall use their best efforts to promptly advise Acorda of all comments,
statements, requests and inquiries of any Target Customer, the medical
profession or any other third parties relating to either the Program or the
Product(s) that are not otherwise addressed by the Product Promotional
Materials (“Third Party Communications”), of which Cardinal Health (including
the Representatives and Managers) becomes aware.  All responses to such Third Party
Communications shall be handled solely by Acorda, in its sole judgment.  Cardinal Health shall provide reasonable assistance
to Acorda to the extent requested by Acorda, and at Acorda’s cost and expense,
to fully respond to such Third Party Communications.

 

9.2.          Government
Agencies.  Cardinal Health shall
notify Acorda of all communications received by it or any Representative or
Manager from any government Agencies, including but not limited to the FDA,
concerning the Product(s) or the Program (and including without limitation,
communications relating to any AE or other safety issue) (“Agency
Communications”) within twenty-four hours of receiving such communication, by
transmitting any written documentation and/or a written synopsis of any oral
discussion, to a person designated by Acorda for such purpose.  All responses to any Agency Communication
shall be the sole responsibility of Acorda and handled by it in its sole
judgment.  Cardinal Health shall assist
Acorda with respect to responding to such Agency Communications to the extent
requested by Acorda, and at Acorda’s cost and expense.  Cardinal Health shall use its best efforts to
provide Acorda with any documents or information reasonably requested by Acorda
for purposes of responding to any Agency Communications within 24 hours of
Acorda’s request.

 

9.3.          Acorda
Communications.  In addition to
Detailing, Cardinal Health shall assist Acorda with respect to Acorda’s
communications (as reasonably requested by Acorda and at Acorda’s cost and
expense) within the Territory and shall regularly advise Acorda of market,
economic, regulatory and other developments of which Cardinal Health (including
the Representatives and Managers) may become aware which may affect the sale of
the Product(s) in the Territory.

 

9.4.          Appointment
of Coordinators.  The parties shall
each appoint an authorized coordinator of the Program mutually-acceptable to
each other (“Coordinators”) between whom all communications required or desired
to be given will be sent and between whom Detailing activities will be
coordinated.  Each party may replace its
Coordinator at any time, upon notice to the other party.  Initially during the Term, the Coordinators
for Acorda and Cardinal Health shall be Michael Hilton and Richard Denfrund,
respectively.

 

14

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

9.5.          Review
of Results.  The parties shall meet
periodically, but at least once per calendar quarter, to review and discuss the
actual results compared to the marketing plans for Detailing of the
Product(s).  Acorda shall share with
Cardinal Health the Gross Sales (as defined in Schedule 3.1) data, as well
as any other reports, audits and other data it deems appropriate (in its sole
discretion) relative to the Program.

 

ARTICLE X

INSURANCE

 

10.1.        Cardinal
Health Insurance Coverage.  Cardinal
Health shall maintain insurance coverage as follows, or shall maintain
self-insurance sufficient to meet its indemnity obligations hereunder:

 

(a)           Workers’
Compensation insurance with statutory limits of liability and Employer’s
Liability insurance in accordance with the statutory requirements of the states
in which the services are to be rendered;

 

(b)           Commercial
General Liability insurance, including completed operations and products
liability, with a combined single limit of [***]; and

 

(c)           Automobile
liability insurance with a combined single limit of [***].

 

All of the foregoing
insurance policies shall cover claims on an “occurrence” basis and not on a
“claims made” basis in order to assure that incidents occurring during the Term
of this Agreement are covered under the policies even though the resulting
claim is not brought until after this Agreement has expired or has been
terminated.

 

10.2.        Acorda
Insurance Coverage.  Acorda shall
maintain Commercial General Liability insurance (primary and seconds coverage
combined), including completed operations, with a combined single limit of at
least [***] or shall maintain self-insurance sufficient to meet its indemnity
obligations hereunder.

 

10.3.        Certificates
of Insurance.  Each Party shall,
within fifteen (15) days after request by the other party, furnish a
Certificate of Insurance as evidence of the foregoing insurance.  Each party will use reasonable commercial
efforts to obtain an agreement from each insurer that such insurer will
endeavor to provide the other party thirty (30) days’ prior written notice of
any cancellation or material change of the insurance coverage required by this
Article.

 

ARTICLE XI

ADVERSE EVENT REPORTING AND REGULATORY MATTERS

 

11.1.        Immediate
Notification. Cardinal Health shall notify Medcom Solutions, at telephone
number [***] facsimile number [***] e-mail [***] (“Medcom”) or such other entity
as designated by Acorda, in writing, as soon as reasonably practicable but in
no event more than 24 hours after it or any Representative or Manager obtains
or learns of any information relating to an Adverse Event concerning any
Product(s), including but not limited to any package complaint or other
complaints regarding any side effect, injury, toxicity or sensitivity reaction
or any

 

15

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

unexpected incidence of severity thereof associated
with the clinical uses, studies, investigations, tests and marketing of the

Product(s), whether or not determined to be attributable to the
Product(s).  Cardinal Health shall also
notify Medcom (or other designee) within 24 hours of any other adverse
experience, i.e., any unfavorable and unintended change in the structure
(signs), function (symptoms) or chemistry (laboratory data) of the body
temporally associated with the use of the Product(s), whether or not considered
related thereto.  As part of such
notification, Cardinal Health shall forward to Medcom (or other designee) any
related information, including, but not limited to, initial and follow up
reports, that becomes known to Cardinal Health or any Representative or Manager
from any source in any form as soon as it becomes available, but in any event
within 24 hours of becoming aware of such information.  Cardinal Health shall cooperate with all
reasonable requests by Acorda to ensure that an AE is sufficiently
investigated, including, but not limited to seeking additional information
relating to an AE and contacting the initial reporter of an AE.

 

11.2.        Threatened
Agency Action.  Cardinal Health shall
immediately notify Acorda in writing of any information that Cardinal Health
(including the Representatives and Managers) may obtain or learn regarding any
threatened or pending action by an Agency which may affect either the
Product(s) or the Program (including but not limited to Product recalls).  Cardinal Health shall, at the request of
Acorda and at the cost and expense of Acorda, cooperate with Acorda in
formulating a procedure for taking appropriate action in response to such
information; provided, however, that the appropriate responsive action to be
taken shall be decided exclusively by Acorda to the extent the information
regarding the threatened or pending action relates in whole or in part to the
Product(s) (as determined by Acorda in its sole judgment).  Unless compelled by law, Cardinal Health
shall not respond to an Agency without the prior written consent of Acorda.

 

11.3.        Training
Requirements.  The Cardinal Health
Training Requirements shall include appropriate instructions for
Representatives as to handling of information received or obtained subject to
Sections 11.1 and 11.2.

 

ARTICLE XII

RETURN/RECALL

 

12.1.        Returned
Products.  Acorda shall be
responsible for handling all returned Product(s), including any applicable
shipment costs and compensation or credit for the returned Product(s).  Any Product(s) inadvertently returned to
Cardinal Health shall be shipped by it to Acorda or in accordance with its
directions, in compliance with Acorda’s returned goods policy, and Cardinal
Health shall advise Acorda of the name and address of the person or entity
making the return and the reason given therefor, if any.  Acorda shall reimburse Cardinal Health’s
reasonable and documented shipping and other costs in connection with the
handling of such returned Product(s) within 45 days of delivery to Acorda of
Cardinal Health’s statement for such costs. 
Upon Acorda’s request, Cardinal Health shall provide Acorda with
documentation relating to any costs incurred by Cardinal Health in connection
with any returned Product(s).

 

12.2.        Recalled
Products.  At Acorda’s request,
Cardinal Health shall assist Acorda in obtaining, receiving and collecting any
Product(s) (including Product samples) that have been

 

16

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

recalled, and any costs reasonably incurred by
Cardinal Health with respect to participating in any such recall shall be
reimbursed by Acorda within 45 days of delivery to Acorda of Cardinal Health’s
statement for such costs, except in the event Cardinal Health’s actions under
this Agreement are responsible for the recall, in which case Cardinal Health
shall indemnify, defend and hold harmless Acorda and its officers, directors,
employees, agents and Affiliates for all costs and liabilities associated with
such a recall.  Only Acorda or an Agency
with proper jurisdiction shall have the authority to make any determination to
recall a Product.

 

ARTICLE XIII

CONFIDENTIAL INFORMATION

 

13.1.        Confidential
Information.  Each party acknowledges
and agrees that it will have access to, or become acquainted with, Confidential
Information of the other party in the course of the performance of services
under this Agreement.  For the purposes
of this Agreement, “Confidential Information” shall mean any information and
materials of either party or any of their respective Affiliates, which gives
such party an advantage over its competitors who do not possess such
information and constitutes valuable trade secrets, or information or materials
which a party otherwise considers to be confidential and/or proprietary that
was revealed to the other party as a result of entering into or performing its
obligations under this Agreement, including but not limited to, information
which relates to Product(s), the Program, Target Customers, designs, methods,
research and development, discoveries, improvements, documents, trade secrets,
proprietary rights, business affairs or employee information.  Confidential Information shall not include
any information that, as demonstrated by satisfactory evidence:

 

(a)           Was
known to the receiving party prior to execution of this Agreement without an
obligation to keep it confidential;

 

(b)           Was
lawfully obtained by the receiving party from a third party without any
obligation of confidentiality;

 

(c)           Is,
at the time of disclosure, in the public domain;

 

(d)           Becomes
part of the public domain after disclosure by publication or otherwise, except
by breach of this Agreement;

 

(e)           Is
developed by or for the receiving party independently and apart from the
disclosing party’s Confidential Information; or

 

(f)            Is
otherwise knowledge possessed by the receiving party or its employees without
access or reference to the disclosing party’s Confidential Information as the
result of their industry experience or education.

 

13.2.        Handling
of Confidential Information.  Each
party agrees that it will use its best efforts to protect the secrecy of, and
avoid disclosure or use of, any Confidential Information of the other
party.  Such measures shall include, but
not be limited to, the highest degree of care that such party utilizes to
protect its own Confidential Information of a similar nature.  Each party agrees to notify the other in
writing of any misuse or misappropriation of the other party’s

 

17

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Confidential Information.  Except as otherwise required by law, each
party shall keep all Confidential Information in confidence and shall not, at
any time during the Term hereof or for a period of ten (10) years from the
termination of this Agreement, without the disclosing party’s prior written
consent, disclose or otherwise make available, directly or indirectly, any
Confidential Information to anyone other than the receiving party’s employees
who need to know the same in the performance of their services and obligations
hereunder; provided, however, that Cardinal Health may also disclose Acorda’s
Confidential Information to its Affiliates which have a need to know the same
in the performance of the services hereunder. 
Each party shall use the Confidential Information only in connection
with the performance of their services and obligations hereunder and for no
other purpose.  Each party shall inform
its employees, and in the case of Cardinal Health, its Affiliates, of the trade
secret, proprietary and confidential nature of the Confidential Information,
and each party shall be directly responsible for any breaches of the provisions
of this Article by any such employees and Affiliates.

 

13.3.        No
Rights Granted.  The disclosure of
Confidential Information shall not be construed as or constitute an express or
implied grant of any intellectual property rights to the receiving party in
such Confidential Information, including but not limited to any right, title,
interest, or license in or to such Confidential Information.  All Confidential Information shall at all
times remain the property of the disclosing party.

 

13.4.        No
Representations.  Except as otherwise
expressly stated in this Agreement, a party disclosing any of its Confidential
Information shall not be deemed to make any representation or warranty, express
or implied, as to the accuracy or completeness of such Confidential
Information, and such disclosing party will not have any liability for any
errors or omissions therein.

 

ARTICLE XIV

TERM AND TERMINATION

 

14.1.        Term.  This Agreement shall take effect on the
Effective Date and shall continue in effect until July 31, 2007 (the
“Term”), unless terminated earlier as set forth herein.  This Agreement shall be renewable only upon
the written agreement by both parties.

 

14.2.        Termination
Without Cause.  Subject to Sections
14.7 and 17.14, and with the exception of Periods 1 and 2 (as defined in Schedule 3.1),
either party shall have the right to terminate this Agreement with no further
obligation at any time after Period 2 for any or no reason on sixty (60) days
prior written notice to the other party. 
Neither party shall have the right to terminate under this Section until
the completion of Period 2.

 

14.3.        Bankruptcy:
Insolvency.  Either party may
terminate this Agreement upon notice to the other upon the occurrence of: (a) the
entry of a decree or order for relief by a court of proper jurisdiction in an
involuntary case of the other party under the Federal Bankruptcy Code, as now
constituted or hereafter amended, or any other applicable federal or state
insolvency or other similar laws, and the continuance of any such decree or
order in effect for a period of sixty (60) consecutive days; or (b) the
filing by the other party of a petition for relief under the Federal

 

18

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Bankruptcy Code, as now constituted or hereafter
amended, or any other applicable federal or state insolvency or similar laws.

 

14.4.        Termination
For Breach.  Subject to Section 14.7
and other continuing obligations under Section 17.14, either party may
terminate this Agreement in the event of a material breach of the other party’s
obligations under this Agreement, provided that such breach has not been cured
within thirty (30) days after written notice thereof from the non-breaching
party.

 

14.5.        Termination
Due To Regulatory And Other Problems. 
If the Product is not being marketed due to regulatory problems, court
or administrative proceedings, product liability claims, recalls, raw materials
shortages, or other reasons, then, subject to Sections 14.7 and 17.14, either
party may terminate this Agreement upon thirty (30) days’ prior written notice
to the other.

 

14.6.        Termination:
Phase Out or Transition.  In the
event that this Agreement is terminated pursuant to Sections 14.2 through 14.5,
and at Acorda’s request, the parties shall discuss in good faith an appropriate
phase-out of Cardinal Health’s Detailing activities, or, if so requested by
Acorda, Cardinal Health shall provide its full cooperation and assistance in
transitioning the Program and services as reasonably requested by Acorda,
including by agreeing to promptly deliver its work in progress, data, files,
reports, materials relating to the Program and all Product Promotional
Materials and samples in its possession and control to such successor agency or
to Acorda (at Acorda’s election).

 

14.7.        Termination:
Continuing Rights.  The termination
or expiration of this Agreement shall not affect the validity and enforceability
of any right or obligation of either party hereunder that accrued prior to, and
was outstanding on, the termination or expiration date.  Without limiting the foregoing, the
termination or expiration of this Agreement shall not affect any rights or
obligations of any party under this Agreement which are stated to survive such
termination pursuant to Section 17.14 hereof.

 

14.8.        Final
Settlement upon Early Termination. 
Promptly after the early termination of this Agreement, the parties
shall cooperate in order to jointly calculate the amount of any final Service
Fees that may have been earned by, or due from, Cardinal Health as of the
termination date.  The amount of such
Service Fees, if any, that have been earned, or that must be refunded, by Cardinal
Health shall be calculated as follows:

 

(a)           Termination by Cardinal Health
For Cause or Regulatory Problems.

 

(i)            Period 1 & 2.  If this Agreement is terminated by Cardinal
Health during Period 1 or 2 (as defined in Schedule 3.1) pursuant to (a) Section 14.4,
or (b) Section 14.5 due to a regulatory or other problem caused by a
person or entity other than Cardinal Health, then Acorda shall pay Cardinal
Health the Prorated Payment (defined in Section 14.8(c)(v))

 

(ii)           Period 3.  If this Agreement is terminated by Cardinal
Health during Period 3 (as defined in Schedule 3.1) pursuant to (a) Section 14.4,
or (b) Section 14.5

 

19

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

due to a regulatory or other problem caused by a person or entity other
than Cardinal Health and the Gross Sales up to the date of termination are at
least [***] of the Annual Baseline Forecast, then Acorda shall pay Cardinal
Health the Prorated Payment (defined in Section 14.8(c)).

 

(iii)          Period 4.  If this Agreement is terminated by Cardinal
Health during Period 4 (as defined in Schedule 3.1) pursuant to (a) Section 14.4,
or (b) Section 14.5 due to a regulatory or other problem caused by a
person or entity other than Cardinal Health and the Gross Sales up to the date
of termination are at leas [***] of the Annual Baseline Forecast, then Acorda
shall pay Cardinal Health in accordance with the payment schedule set
forth in Schedule 3.1 notwithstanding that this Agreement was terminated
before the entire year had been completed. 
For example, if Gross Sales as of the date of termination are [***] of
the Annual Baseline Forecast, then Acorda shall pay Cardinal Health the amount
due if Gross Sales for the entire year were [***] of the Annual Baseline
Forecast.

 

(iv)          No Effect on Other Remedies.  Payments under this subsection, if any, shall
be payment for services rendered and shall not be deemed to be a payment in
settlement of any claims that either party may have against the other party
under this Agreement.  Each party shall
retain all rights and remedies available to it at law or in equity.

 

(b)           Termination by Acorda For Cause or Regulatory
Problems.

 

(i)            Period 1 & 2.  If this Agreement is terminated by Acorda
during Period 1 or 2 (as defined in Schedule 3.1) pursuant to (a) Section 14.4,
or (b) Section 14.5 due to a regulatory or other problem caused or
contributed to by Cardinal Health, then Acorda shall not be obligated to make
any payments to Cardinal Health for Services rendered under this Agreement or
pay Cardinal Health the Prorated Payment (defined in Section 14.8(c)).

 

(ii)           Period 3.  If this Agreement is terminated by Acorda
during Period 3 (as defined in Schedule 3.1) pursuant to (a) Section 14.4,
or (b) Section 14.5 due to a regulatory or other problem caused or
contributed to by Cardinal Health and the Gross Sales up to the date of
termination are at least [***] of the Annual Baseline Forecast, then Acorda
shall pay Cardinal Health the Prorated Payment (defined in Section 14.8(c)).

 

(iii)          Period 4.  If this Agreement is terminated by Acorda
during Period 4 (as defined in Schedule 3.1) pursuant to (a) Section 14.4,
or (b) Section 14.5 due to a regulatory or other problem caused by
Cardinal Health and the Gross Sales up to the date of termination are at least
[***] of the Annual Baseline Forecast, then Acorda shall pay Cardinal Health in
accordance with the payment schedule set forth in Schedule 3.1
notwithstanding that this Agreement was terminated before the entire year had
been completed.  For example, if Gross
Sales as of the date of termination are [***] of the Annual Baseline Forecast,
then Acorda shall pay Cardinal Health the amount due if Gross Sales for the
entire year were [***] of the Annual Baseline Forecast.

 

20

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(iv)          No Effect on Other Remedies.  Payments under this Subsection shall be
payment for services rendered and shall not be deemed to be a payment in
settlement of any claims that either party may have against the other party
under this Agreement.  Each party shall
retain all rights and remedies available to it at law or in equity.

 

(c)           Calculation of Prorated Payment.  For purposes of this Section 14.8, the
amount of any “Prorated Payment” shall be calculated as set forth below.  The parties agree that the provisions of this
Subsection (c) only provide the method of calculating payments that
are due under Subsections of Section 14.8 specifically requiring payment
of the Prorated Payment and shall not create or serve as the basis for an
entitlement to any payment not otherwise provided for in Section 14.8.

 

(i)            determine
the exact number of days elapsed from the beginning of the Contract Year
through the termination date, and divide this number by 365 (the “Pro-ration
Fraction”);

 

(ii)           multiply
the Pro-ration Fraction by the Annual Baseline Forecast (as defined in Schedule 3.1)
in effect for that Contract Year (the “Prorated Baseline Forecast”);

 

(iii)          calculate
the aggregate Gross Sales (as defined in Schedule 3.1) from the beginning
of the Contract Year through the termination date, based upon data from NDC
Health (as defined hereafter) (“Gross Sales to Date”); and

 

(iv)          calculate
the percentage of the Prorated Baseline Forecast that such Gross Sales to Date
represent (the “Prorated Percentage Result”).

 

(v)           If the
Prorated Percentage Result is more than [***] but less than [***] then
the amount of the Prorated Payment shall be paid by Acorda in an amount equal
to (1) [***](2) multiplied by the Pro-Ration Fraction, (3) minus
the sum total of all interim Advances already paid to Cardinal Health in
respect of prior Periods (as defined in Schedule 3.1) of such Contract
Year.  After payment of such amount, no
further Service Fees or Interim Advances shall be paid under this Agreement.

 

(vi)          If the
Prorated Percentage Result is equal to or exceeds [***] then a payment
shall be paid by Acorda in an amount equal to (1) the Service Fee that
would have been payable if aggregate Gross Sales for the entire Contract Year
were equal to the same Prorated Percentage Result (as set forth in Schedule 3.1),
(2) multiplied by the Pro-ration Fraction, (3) minus the sum total of
all Interim Advances already paid to Cardinal Health in respect of prior
Periods (as defined in Schedule 3.1) of such Contract Year.  After payment of such amount, no further
Service Fees or Interim Advances shall be paid under this Agreement.

 

(d)           Termination by Either Party Without Cause.  Neither party shall have the right to
terminate pursuant to Section 14.2 at any time during Periods 1 and
2.  Thereafter, if this

 

21

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Agreement is terminated by either party in accordance
with Section 14.2, then the final Service Fee amount that may be due
hereunder shall be calculated as follows.

 

(i)            If this
Agreement is terminated by Acorda pursuant to Section 14.2, and the Gross
Sales as of the date of termination are at least [***] of the Annual Baseline
Forecast then Cardinal Health shall receive a final Service Fee payment, if any
is due, in an amount equal to:

 

(A)          if Acorda
terminates during Period 3, an amount equal to [***] of the Prorated Payment
(if any); and

 

(B)           if Acorda
terminates during Period 4, an amount equal to the Prorated Payment (if any).

 

(ii)           If this
Agreement is terminated by Cardinal Health pursuant to Section 14.2 and
the Gross Sales as of the date of termination are at least [***] of the Annual
Baseline Forecast, then it shall receive a final Service Fee payment, if any is
due, in an amount equal to:

 

(A)          if Cardinal
Health terminates during Period 3, an amount equal to [***] of the Prorated
Payment (if any); and

 

(B)           if
Cardinal Health terminates during Period 4, an amount equal to the Prorated
Payment (if any).

 

(iii)          After
payment of any final Service Fee determined to be due in accordance with the
foregoing, no further Services Fees or Interim Advances shall be paid under
this Agreement.

 

(e)           All
payments made to Cardinal Health under this section shall be subject to a
“true-up” as provided in Section 3.D. of Schedule 3.1.

 

14.9.        Termination:
Return of Materials.  Within sixty
(60) days following the termination or expiration of this Agreement, Cardinal
Health shall return to Acorda all Confidential Information (including but not
limited to customer lists and Target Customer information), Product Promotional
Materials, Product samples, marketing plans, forms, territory lists, reports
and any and all other tangible items provided to Cardinal Health or the
Representatives by Acorda, or prepared by or for Cardinal Health or the
Representatives based upon, incorporating or summarizing any of the foregoing
information or materials.

 

ARTICLE XV

RECORDKEEPING; AUDIT RIGHTS

 

15.1.        Cardinal
Health Record Keeping: Inspection and Audit by Acorda.  Cardinal Health shall keep accurate records
in sufficient detail (and in compliance with all Laws) as to its services and
performance under this Agreement (including but not limited to specifics
regarding actual Details made, Product samples distributed, occurrences
involving noncompliance with

 

22

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

SOPs, and AE incidents reported to it and relayed to
Acorda) as well as relating to the costs and expenses for which Acorda must
reimburse Cardinal Health under this Agreement as specified under “Direct
Pass-Through Expenses” in Schedule 3.1. 
Upon Acorda’s reasonable request made at any time or from time to time
during, or within two (2) years after, the Term of this Agreement, or at
any time hereafter that there shall be an investigation, subpoena or proceeding
undertaken, issued or pending by an Agency involving Acorda, the Product(s),
the Program or this Agreement, then at Acorda’s expense, Cardinal Health shall
permit Acorda’s designated employees or agents to have access during ordinary
business hours to such records in order to verify the accuracy thereof.  Acorda and its designated employees or agents
shall maintain in confidence all such records of Cardinal Health.  In addition, upon request by Acorda, Cardinal
Health shall also grant Acorda, without charge, reasonable access to each
facility at which Cardinal Health stores or handles any Product samples, so
that Acorda or its designee can conduct a physical inventory and reconciliation
of the samples.  The rights set forth in
this Article 15 shall not limit Cardinal Health’s obligation to provide
the oral and written reports and notices, and to support all expense
reimbursement requests with documentation, as otherwise provided in this
Agreement.

 

15.2.        Overstatements.  If any such examination or audit pursuant to Section 15.1
reveals that the amount of Direct Pass-Through Expenses have been overstated,
then any excess payment made to Cardinal Health based upon such overstatement
shall be offset against any sums then payable or thereafter payable to Cardinal
Health, or promptly refunded to Acorda, at Acorda’s election.  Acorda shall pay the fees and expenses of the
employee or agent engaged to perform the audit, unless such audit reveals a
discrepancy of [***] or more for the period examined which is to the
disadvantage of Acorda, in which case Cardinal Health shall pay all reasonable
costs and expenses incurred by Acorda in the course of making such determination,
including the fees and expenses of the employee or agent.

 

ARTICLE XVI

INDEMNIFICATION

 

16.1.        Definitions.  As used in this Article 16 and this
Agreement, “Damages” shall mean all liabilities, damages, assessments, levies,
losses, fines, penalties, costs, and expenses, including, without limitation,
reasonable attorneys’, accountants’, investigators’, and experts’ fees and
expenses, sustained or incurred as a result of any third party claims, suits,
liabilities, or actions of any nature.

 

16.2.        Indemnification
by Cardinal Health.  Cardinal Health
shall indemnify, defend and hold Acorda, its Affiliates, directors, officers,
employees and agents harmless from and against any and all Damages (except to
the extent such Damages are due to the negligence, omission or intentional
wrongful actions of Acorda or the material breach of this Agreement by Acorda)
directly or indirectly arising from or related to:

 

(a)           Cardinal
Health’s breach of or failure to comply with any of its obligations under this
Agreement;

 

23

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(b)           any
inaccuracy in or breach or failure of any representation, warranty, or covenant
made by Cardinal Health in this Agreement;

 

(c)           any
negligent or wrongful act or omission on the part of Cardinal Health or its
employees or agents (including the Representatives and Managers);

 

(d)           Cardinal
Health’s violation of or failure to comply with all Laws, SOPs and Acorda
Written Instructions relating to the promotion, distribution and sale of the
Product(s), sample handling and distribution, the Cardinal Health Training
Requirements, the Program and this Agreement;

 

(e)           Detailing
of the Product(s);

 

(f)            any
federal or state claim or assessment for nonpayment or late payment by Cardinal
Health of any tax or contribution based on Cardinal Health’s income,
employee-related tax liabilities or withholding, or the status of any
Representatives or Managers as employees of Cardinal Health; or

 

(g)           any
claims or liabilities based on injury to persons or property, regardless of
when such claim or liability is asserted or incurred, resulting from or arising
out of any Representative’s or Manager’s actions or inactions while performing
the Detailing or supervising activities (including but not limited to
accidents, trespass or violation of civil ordinances).

 

16.3.        Indemnification
by Acorda.  Acorda shall indemnify,
defend and hold Cardinal Health and its Affiliates, directors, officers,
employees and agents harmless from and against any and all Damages (except to
the extent such Damages are due to the negligence, omission or intentional
wrongful actions of Cardinal Health or the material breach of this Agreement by
Cardinal Health), directly or indirectly arising from or related to:

 

(a)           Acorda’s
breach of or failure to comply with any of its obligations under this
Agreement;

 

(b)           any
inaccuracy in or breach or failure of any representation, warranty, or covenant
made by Acorda in this Agreement;

 

(c)           any
negligent or wrongful act or omission on the part of Acorda or its employees or
agents;

 

(d)           Acorda’s
violation of or failure to comply with all Laws relating to the manufacture,
sale, distribution, possession and use of the Product(s), the Program, the
Product Promotional Materials, the Acorda Training Program, and this Agreement;

 

(e)           use
by Cardinal Health of the Acorda Training Program or the Product Promotional
Materials in accordance with the SOPS, Written Instructions, and the terms of
this Agreement;

 

24

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(f)            any
claims or liabilities for injury to or death of persons or harm to property,
regardless of when such claim or liability is asserted or incurred, resulting
from or arising out of the manufacture, use, sale, distribution or possession
of the Product(s), or a manufacturing design or defect of the Product(s), or
any failure to warn or inadequacy of warning regarding the Product(s);

 

(g)           Acorda’s
failure to pay when due or to reimburse Cardinal Health for any Taxes (as
defined in Section 5.3);

 

(h)           any
negligent or wrongful acts or omissions on the part of Acorda with respect to
Cardinal Health’s employees or Representatives; or

 

(i)            the
use by Cardinal Health, in the performance of its duties hereunder and as
specified or directed by Acorda, of any trademark, trade name, copyright,
patent or other rights which use actually or allegedly infringes on the rights
of any third party.

 

16.4.        Indemnification
Procedures.  A party (the
“Indemnitee”) which intends to claim indemnification under this Article 16
shall promptly notify the other party (the “Indemnitor”) in writing of any
pending or threatened action, claim or liability in respect of which the
Indemnitee or any of its employees or agents are entitled to
indemnification.  The Indemnitee shall
permit, and shall cause its employees and agents to permit, the Indemnitor at
its discretion, to settle any such action, claim or liability and agrees to the
complete control of such defense or settlement by the Indemnitor; provided,
however, that such settlement or defense does not require the Indemnitee to
admit to any liability, adversely affect the lndemnitee’s rights hereunder or
impose any obligations on the Indemnitee in addition to those set forth in this
Agreement.  The Indemnitee and its
employees and agents shall cooperate fully with the Indemnitor and its legal representatives
in the investigation and defense of any such action, claim or liability which
is the subject of indemnification.  The
Indemnitee shall have the right, but not the obligation, to be represented by
counsel of its own selection and at its own expense in connection with any
indemnified claim.

 

16.5.        Limitation
on Liability.  Except in the event of
(i) Cardinal Health’s gross negligence or willful misconduct, or (ii) any
liability arising from negligent operation of an automobile by a Representative
or Manager or operation of an automobile in violation of applicable laws, in
which case there shall be no limitation of liability, the total liability of
Cardinal Health under this Agreement shall not exceed an amount equal to the
maximum total amount of Service Fees that would be paid to Cardinal Health
under this Agreement if Gross Sales exceeded [***] of the Annual Baseline
Forecasts over the Term of this Agreement.

 

16.6.        No
Consequential Damages.  Except with
respect to any criminal or civil fines or penalties that may be imposed on a
party hereunder, notwithstanding any provision of this Agreement to the
contrary, neither party shall be liable to the other on any theory of liability
for any special, indirect, incidental, exemplary, punitive or consequential
damages, including but not limited to lost profits, in connection with or as a
result of the transactions contemplated by this Agreement, it being the
intention of the parties that they be liable only for actual and direct damages
proven in a court of competent jurisdiction.

 

25

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

16.7.        Insurance
Offset.  For the avoidance of doubt,
no Indemnitee under this Agreement shall be required to make a claim under any
of its insurance policies with respect to Damages which the Indemnitor is
required to indemnify the Indemnitee under this Agreement and may at any time
withdraw any claims which it has filed with an insurer.  Notwithstanding the foregoing, for purposes
of calculating the amount of indemnifiable Damages hereunder, the total amount
of Damages incurred by the Indemnitee shall be adjusted to account for any (a) insurance
payments or proceeds actually received by the Indemnitee in connection with the
occurrence of the event which resulted in the incurrence of the Damages, as
well as any related increase in insurance premiums thereafter payable by the
Indemnitee, and (b) any tax gain or loss that will result from the
occurrence of such event or from its receipt payment of the indemnification
payment hereunder.

 

ARTICLE XVII

MISCELLANEOUS

 

17.1.        No
Waiver: Cumulative Remedies.  No
failure or delay on the part of either party in exercising any right, power or
remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy
hereunder.  No waiver of any provision
hereof shall be effective unless in writing and signed by the party giving such
waiver.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

 

17.2.        Captions.  Article and Section headings used
in this Agreement are for convenience only and shall not affect the
construction of this Agreement.

 

17.3.        Governing
Law.  This Agreement shall be
construed and the respective rights of the parties hereto determined according
to the substantive laws of the State of New York, exclusive of conflict of laws
principles.

 

17.4.        Severability.  If any provision of this Agreement or any
other document delivered under this Agreement is prohibited or unenforceable in
any jurisdiction, it shall be ineffective in such jurisdiction only to the
extent of such prohibition or unenforceability, and such prohibition or
unenforceability shall not invalidate the balance of such provision to the
extent it is not prohibited or enforceable nor the remaining provisions hereof,
nor render unenforceable such provision in any other jurisdiction.  In the event any provisions of this Agreement
shall be held to be invalid, illegal or unenforceable, the parties hereto shall
use their best efforts to substitute a valid, legal and enforceable provision
which, insofar as practical, implements the purposes hereof.

 

17.5.        Entire
Agreement: Modification.  This
Agreement contains the entire and exclusive agreement between the parties in
respect of the subject matter hereof and supersedes and cancels all previous
agreements, negotiations, commitments and writings between the parties hereto
in respect of the subject matter hereof. 
Except as provided herein, this Agreement may not be changed or modified
in any manner or released, discharged, abandoned or otherwise

 

26

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

terminated unless in writing and signed by the duly
authorized officers or representatives of the parties.

 

17.6.        Notices.  Any notice or request required or desired to
be given in connection with this Agreement shall be deemed to have been
sufficiently given if sent by pre-paid registered or certified mail or
facsimile transmission to the intended recipient at the address set forth below
or such other address as may have been furnished in writing by the intended
recipient to the sender.  The date of
mailing or facsimile transmission shall be deemed to be the effective date on
which notice was given, provided that all facsimile transmissions shall contain
a provision requiring the intended recipient to confirm receipt and no
facsimile transmission shall be effective unless confirmation of its receipt is
received within twenty-four hours of its transmission.

 

All notices shall be
addressed to:

 

[***]

 

[***]

 

[***]

 

[***]

 

17.7.        Execution
in Counterparts.  Agreement may be
executed in counterparts, each of which, when executed and delivered, shall be
deemed to be an original and all of which together shall constitute one and the
same document.

 

17.8.        Assignment.  This Agreement may not be assigned or
transferred by a party without the prior written consent of the other party
hereto, which consent shall not be unreasonably delayed or withheld.  Any such assignment shall not materially or
adversely affect the rights or obligations of either party to this Agreement.

 

17.9.        Public
Announcements.  Neither party will
make any press release or other public disclosure regarding this Agreement or
the transactions contemplated hereby without the other party’s express prior
written consent, except as required under applicable law or by any governmental
agency, in which case the party required to make the press release or public
disclosure shall use commercially reasonable efforts to obtain the approval of
the other party as to the form, nature and extent of the press release or
public disclosure prior to issuing the press release or making the public
disclosure.

 

17.10.      Maintenance
of Records.  Cardinal Health and
Acorda each agree that throughout the Term of this Agreement and for a period
of six years after the termination or expiration of this Agreement, each will
maintain records and otherwise establish procedures to assure compliance with
all regulatory, professional, and other applicable legal requirements which
relate to the Detailing and marketing of the Product(s) and if applicable, with
the other services and activities to be performed hereunder.

 

27

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

17.11.      Force
Majeure.  Failure of either party
hereto to fulfill or perform its obligations under this Agreement shall not
subject such party to any liability if such failure is caused or occasioned by,
without limitation, acts of God, acts of the public enemy, fire, explosion,
flood, drought, war, riot, sabotage, embargo, strikes or other labor disputes
(which strikes or disputes need not be settled), compliance with any order,
regulation, or request of government, or by any other event or circumstance of
like or different character to the foregoing beyond the reasonable control and
without the fault or negligence of such party (a “Force Majeure Event”)
provided such party uses reasonable efforts to remove such Force Majeure Event
and gives the other party prompt notice of the existence of such Force Majeure
Event.  No Force Majeure Event shall
serve to delay or excuse any payment by one party to the other then due and
owing.

 

17.12.      Compliance.  Cardinal Health and Acorda agree to undertake
all their respective obligations under this Agreement in material conformance
with all Laws.  By entering into this
Agreement, it is not the intent of the parties to enter into any financial
relationship or arrangement prohibited under state or federal fraud or abuse
regulations, including but not limited to Sec. 1128B(b) of the Social
Security Act, and any regulations promulgated thereunder, nor do the parties
hereto have any belief that the relationship and compensation arrangement
provided in this Agreement is prohibited. 
Neither party shall assert against the other that the compensation
arrangement provided in this Agreement is grounds for voiding the Agreement or
rendering the Agreement unenforceable.

 

17.13.      Survival.  The terms and provisions of Sections 2.5,
3.1, 3.3, 5.1, 5.2, 5.3, 5.4, 7.5, Articles VIII, IX, XI, XII and XIII,
Sections 14.7 through 14.10, Article XV, XVI, Section 17.3, 17.5,
17.9, 17.10, 17.12 and 17.13 hereof shall survive the termination of this
Agreement, whether such termination occur by expiration of the Term or by early
termination hereof.

 

*  *  * 
*  *

 

Signature Page Follows

 

28

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed by their duly authorized
officers. 

 

	
  CARDINAL HEALTH
  PTS, LLC

  	
  ACORDA
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
										

 

29

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have been
separately filed with the Commission.

 

 

Schedule 1.1(n)

 

List of Products

 

Zanaflex®
Capsules

 

30

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Schedule 2.7

 

Form of Management Report

 

[***]

 

31

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Schedule 3.1

 

Detail and Payment Schedule

 

[***]

 

[***]

 

[***]

 

Section 4.              Summary
of Services to be Provided by Cardinal Health.  Set forth below is a summary of the services
to be provided by Cardinal Health hereunder (collectively, the “Services”):

 

•              Detailing
of the Product(s)

•              Recruitment
for any turnover during Program for both sales Representatives and Managers

•              Payment
of salary, bonus, payroll taxes, benefits, and fleet cars for sales
Representatives and Managers.

•              Territory
travel expenses for sales Representatives and Managers

•              Project
management team that includes the following shared resources: national sales
director, account executive, operations manager, human resources coordinator,
Acorda services manager, information services manager, financial services
manager, sales trainer and a help desk

•              Assist
in Acorda Program Training and joint responsibility for POA meetings (including
meeting planning & logistics, Program agenda and strategy)

•              Sole
responsibility for Cardinal Health Training Requirements (including but not
limited to selling skills training)

•              On-going
Representative training (does not include Acorda Training Program T&E)

•              Call
reporting

•              Data
management & reporting services

•              Monthly
reporting package and quarterly reviews

•              Project
administration (supplies, postage and printing) & operational support

•              Sample
storage, handling, management and distribution responsibilities

•              Collective
sample requisition reports on behalf of all Representatives

 

Section 5.              Direct
Pass-Through Expenses of Acorda.  The
following are the sole expenses for which Acorda shall reimburse Cardinal
Health under this Agreement.  Such
expenses shall be reimbursed whether or not Acorda owes Cardinal Health any
Service Fees in accordance with the Agreement and this Schedule 3.1.

 

32

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

•              Actual
travel and meeting expenses for all required participation in any Acorda
Training Program and subsequent POA meetings, including the Program launch
meeting.

•              Cost
of Additional Promotional Activities.  To
the extent Acorda hereafter approves additional Representative promotional
activities for the Program, the parties will agree first in writing upon and
manage a budget based upon promotional programs, per Section 2.3(i) of
the Agreement.

•              Actual
costs of sample storage, handling and distribution responsibilities

 

33

 

Certain portions of this Exhibit have been
omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

Schedule 1

 

Interim Advance Payment Table

 

[to be
attached]

 

34Exhibit
10.34

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT (the “Agreement”) is
made and entered into as of this 19th day of December, 2003 (the “Effective Date”) among ACORDA THERAPEUTICS, INC.,
a corporation organized and existing under the laws of the state of Delaware
having a principal place of business at 15 Skyline Drive, Hawthorne, New York
10532, USA (“Acorda”), CAMBRIDGE
UNIVERSITY TECHNICAL SERVICES LIMITED, an entity organized and
existing under the laws of England having a registered address at The Old
Schools, Trinity Lane, Cambridge CB2 1TS, UK. 
(“CUTS”), and KING’S
COLLEGE LONDON, an Institution incorporated by Royal Charter, of
Strand, London, WC2R 2LS, UK (“KCL”; CUTS and
KCL may be collectively referred to as the “Institutions”).  Each of Acorda, CUTS and KCL may be referred
to herein individually as a “Party” and
collectively as the “Parties.”

 

RECITALS

 

WHEREAS, CUTS is a wholly owned trading subsidiary of
The Chancellor, Masters and Scholars of the University of Cambridge (“Cambridge”) and administers the granting of licenses on
behalf of Cambridge;

 

WHEREAS, Professor James Fawcett of Cambridge,
together with Professor Stephen McMahon and Dr. 
Elizabeth Bradbury of KCL, have developed technology described and
claimed in the Patent Application (as defined in Section 1.17), and both
Professor Fawcett and Cambridge have assigned to CUTS all of their intellectual
property rights in the Patent Application, and all intellectual property rights
in Professor McMahon’s and Dr.  Bradbury’s
inventions claimed in the Patent Application are owned by KCL;

 

WHEREAS, Institutions jointly own all right, title
and interest in the international patent application entitled “Materials and
Methods for the Treatment of CNS Damage”;

 

WHEREAS, Acorda desires to obtain and Institutions
wish to grant to Acorda, an exclusive (except as otherwise provided in this
Agreement), worldwide development and commercialization license under such
international patent application and any patents owned or controlled by the
Institutions that arise or derive from such international patent application,
including all intellectual property rights therein, for the development and
commercialization of pharmaceutical products for all purposes; and

 

WHEREAS, Acorda also wishes to collaborate with
Cambridge and KCL to undertake a research project on the terms set out in a
sponsored research agreement of even date.

 

NOW, THEREFORE, in consideration of the foregoing premises
and the mutual covenants set forth below, and for other good and valuable
consideration, receipt of which is hereby acknowledged, the Parties hereby
agree as follows:

 

1

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

ARTICLE 1

 

DEFINITIONS

 

The following terms as used
herein shall have the following meanings:

 

1.1          “Active Ingredient”
means any compound or molecule, whether chemical or biological, that is
intended to furnish pharmacological activity or other direct effect in the
diagnosis, cure, mitigation, treatment, or prevention of disease, or to affect
any structure or any function of the body of man or of animals.  For the avoidance of doubt, this term
includes those compounds or molecules that may undergo chemical change in the
manufacture of a drug product and be present in such drug product in a modified
form intended to furnish the specified activity or effect.

 

1.2          “Affiliate” means
any corporation or non-corporate business entity which controls, is controlled
by, or is under common control with Acorda. 
A corporation or non-corporate business entity shall be regarded as in
control of another corporation if it owns, or directly or indirectly controls,
at least fifty percent (50%) of the voting stock of the other corporation, or
alternatively in either (a) the absence of the ownership of at least fifty
percent (50%) of the voting stock of a corporation or (b) the case of a
non-corporate business entity, or non-profit corporation, if it possesses,
directly or indirectly, the power to direct or cause the direction of the
management and policies of such corporation or non-corporate business entity,
as applicable.

 

1.3          “Clinical Trial” means any experiment in which a drug
containing an Active Ingredient is administered or dispensed to, or used
involving, one or more human subjects, except for the use of a marketed drug in
the course of normal medical practice.

 

1.4          “CNS” means the
central nervous system.

 

1.5          “Control” or “Controlled”  means,
with respect to a particular item of information or intellectual property
right, that the particular Party (a) owns and has the ability to grant to
another Party the licenses to such item as provided for herein, without
violating the terms of an agreement with any Third Party, and/or (b) has a
license to such item and has the ability to grant to another Party the licenses
to such item provided for herein, without violating the terms of an agreement
with any Third Party.

 

1.6          “Dollars” means United States dollars.

 

1.7          “Earned Royalties” means the royalties payable to Institutions
by Acorda on Net Sales of Licensed Products by Acorda and/or its Affiliates as
provided in Article 3.

 

1.8          “FDA” means the United States Food and Drug
Administration or any successor entity.

 

1.9          “IND” means an investigational new drug application
submitted to the FDA, which requests authorization from the FDA to administer
an investigational drug or biological product to humans in the United States.

 

2

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

1.10        “Inventors” means Professor James Fawcett, Professor Steve McMahon and Dr.  Elizabeth Bradbury.

 

1.11        “Licensed Enzyme Product” means any pharmaceutical product containing
or directly activating an enzyme, including but not limited to chondroitinase,
to treat CNS disorders, diseases or injuries using the method covered by a
Valid Claim in the Licensed Patents.

 

1.12        “Licensed Patents” means any or all of: (a) the Patent Application; (b) the
substitutions, extensions, divisionals, continuations, or continuations-in-part
of such Patent Application; (c) the patents issuing on any of the
foregoing, including all re-examined or re-issued patents and extensions
thereof; and (d) the foreign counterparts of any of the foregoing.

 

1.13        “Licensed Product” means either a Licensed Enzyme Product or a Licensed Small Molecule
Inhibitor Product.

 

1.14        “Licensed Small Molecule Inhibitor Product” means any pharmaceutical product
incorporating a small molecule inhibitor which is used to treat CNS disorders,
diseases or injuries that is covered by a Valid Claim in the Licensed Patents.

 

1.15        “Licensed Territory” means the world.

 

1.16        “Net Sales” means the actual amounts invoiced by Acorda and/or its Affiliates for
the Sale of Licensed Products to a Third Party purchaser without deduction of
any commission paid to a Third Party purchaser but less the following
deductions to the extent that such amounts are actually allowed or incurred
with respect to such Sales: (a) freight, packaging and insurance costs
incurred in transporting the Licensed Product to such customers; (b) quantity,
cash and other trade discounts or rebates actually allowed and taken, including
without limitation, discounts or rebates granted to managed health care organizations,
or as mandated by any governmental agency or branch thereof in the Licensed
Territory; (c) customs, duty, sales and other similar taxes; (d) governmental
charges incurred in connection with the exportation or importation of such
Licensed Products; (e) amounts repaid or credited by reason of rejections,
return of goods, recalls or retroactive price reductions and (f) amounts
written off in accordance with GAAP as uncollectable debts from the purchasers,
not to exceed 4% of Net Sales in any particular royalty period, and provided,
however that if such amounts so written off are later collected by Acorda
and/or its Affiliates, then such amounts shall be deemed “Net Sales” and Acorda
shall pay Institutions the applicable royalty on Net Sales in accordance with
Sections 3.2 and 3.3.  In any event,
Acorda will use reasonable efforts to collect debts from its purchasers of
Licensed Products.  Sales of Licensed
Products or granting of sublicenses by Acorda and its Affiliates to Third
Parties shall be on an “arm’s length basis” and on a bona fide basis for the
purpose of maximizing revenue.

 

1.17        “Patent Application”  means the international patent
application entitled “Materials and Methods for the Treatment of CNS Damage,”
disclosing inventions by the Inventors, filed on the 4th March 2003
having serial number PCT/GB2003/000901.

 

1.18        “Payment Period” means a semi-annual period ending 30th June or 31st
December of each calendar year.

 

3

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

1.19        “Phase I Clinical Trial” means a Clinical Trial on sufficient numbers
of normal volunteers and subjects that is designed to establish that a
pharmaceutical product is safe for its intended use, and to support its
continued testing in Phase II Clinical Trials.

 

1.20        “Phase II Clinical Trial” means a Clinical Trial on sufficient numbers
of subjects that is designed to establish the safety and biological activity of
a pharmaceutical product for its intended use, and to define warnings,
precautions, and adverse reactions that are associated with such pharmaceutical
product in the dosage range to be prescribed.

 

1.21        “Phase III Clinical Trial” means a Clinical Trial on sufficient numbers
of subjects that is designed to establish that a pharmaceutical product is safe
and efficacious for its intended use, and to define warnings, precautions, and
adverse reactions that are associated with such pharmaceutical product in the
dosage range to be prescribed, and to support Regulatory Approval of such
pharmaceutical product or label expansion of such pharmaceutical product.

 

1.22        “Regulatory Approval” means the approvals, registrations or
authorizations of the Food and Drug Administration (FDA), or the equivalent
regulatory agency in a foreign country or jurisdiction necessary for the
manufacture, distribution, marketing and sale of a pharmaceutical or diagnostic
product in the United States, or such foreign country or jurisdiction, as
applicable.

 

1.23        “Sale”
or “Sold” means the sale or other
commercial disposition of a Licensed Product by Acorda, its Affiliates or
sublicensees.  In case of doubt, Sales of
Licensed Products shall be deemed consummated no later than invoicing of
payment to a Third Party for the applicable transaction involving such Licensed
Product.

 

1.24        “Sublicense Royalties” means any royalty payments (which for
clarity excludes any upfront payments, milestone payments, or any equity
investments made in Acorda at fair market value (and provided further that if
any equity investment is made at a premium to fair market value, the amount of
such premium would be deemed Sublicense Royalties)) received by Acorda and/or
its Affiliates from a Third Party sublicensee based on the Sublicense of Acorda’s
and/or its Affiliates rights in the Licensed Patents.

 

1.25        “Third Party” means any entity or individual other than Acorda, Cambridge, CUTS or
KCL, or an Affiliate.

 

1.26        “Valid Claim” means (a) a claim of any issued, unexpired patent included among
the Licensed Patents, which patent claim has not been (i) held
unenforceable, unpatentable or invalid by a decision of a court or governmental
body of competent jurisdiction, which decision is not further appealable, or (ii) rendered
unenforceable through reexamination, reissue, disclaimer or otherwise, or (iii) lost
through an interference proceeding, or (iv) abandoned; or (b) a
pending claim of an international patent application filed under the Patent
Cooperation Treaty (the “PCT”) included
within the Licensed Patents, which claim (i) has been pending under
examination for less than seven (7) years from date of filing of such
claim, and (ii) has been asserted in good faith, and (iii) has not
been abandoned or finally rejected without the possibility of appeal or
re-filing.

 

4

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

ARTICLE 2

 

GRANT OF LICENSE

 

2.1          Licenses to Acorda.

 

(a)           Subject to Section 2.2(a),
Institutions hereby grant to Acorda and its Affiliates an exclusive (even as to
the Institutions), royalty-bearing license, including (subject to the
provisions of Section 2.3) the right to grant sublicenses, under the
Licensed Patents to use and practice the inventions and information claimed or
disclosed therein that relate to enzymatic methods of treating CNS disorder,
disease or injury, and to research, develop, make, have made, use, sell, offer
for sale, have sold, import, export, lease and otherwise exploit Licensed
Enzyme Products for all purposes in the Licensed Territory during the term of
this Agreement.

 

(b)           Subject to Section 2.2(b),
Institutions hereby grant to Acorda and its Affiliates a non-exclusive,
royalty-bearing license, including (subject to the provisions of Sections 2.3
and 2.4) the right to grant sublicenses, under the Licensed Patents to use and
practice the inventions and information claimed or disclosed therein that
relate to small molecule inhibitors for use in treating CNS disorder, disease
or injury, and to research, develop, make, have made, use, sell, offer for
sale, have sold, import, export, lease and otherwise exploit Licensed Small
Molecule Inhibitor Products for all purposes in the Licensed Territory during
the term of this Agreement.

 

2.2          Retained Rights.

 

(a)           The license granted in Section 2.l(a) above
is subject to a right retained by the Institutions for their selves (and also
grants to Cambridge and any wholly owned subsidiary of Cambridge and/or KCL) to
use and practice the portions of the Licensed Patents relating to enzymatic
methods of treating CNS disorders, diseases or injuries for non-commercial,
academic research and educational purposes only.  Such retained right shall be transferable to
other academic institutions in the event that the Inventors become employed by
such institutions, provided, however, that such other institutions’ right to
use and practice such Licensed Patents shall be subject to the same limitations
as those on the Institutions’ right to use and practice hereunder.

 

(b)           The license granted in Section 2.1(b) above
is subject to a right retained by the Institutions for their selves (and also
grants to Cambridge and any wholly owned subsidiary of Cambridge and/or KCL) to
use and practice the portions of the Licensed Patents relating to small
molecule inhibitors for use in treating CNS disorders, diseases or injuries for
all commercial and/or non-commercial purposes. 
Such retained right shall be transferable to other academic institutions
in the event that the Inventors become employed by such institutions, provided,
however, that such other institutions’ right to use and practice such Licensed
Patents shall be subject to the same limitations as those on the Institutions’
right to use and practice hereunder.

 

5

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

2.3          Sublicenses.  Acorda and its Affiliates shall have the
right to grant sublicenses to Third Parties under any or all of their license
rights in the Licensed Patents granted in Section 2.1, provided that:

 

(a)           the pricing of all Licensed Products
that may be sold by Acorda or its Affiliate to any such sublicensee shall be
determined on an “arm’s length basis” and on a bona fide basis for the purpose
of maximizing the revenue;

 

(b)           each such sublicense shall include
obligations on the sublicensee that are consistent with the obligations made on
Acorda and its Affiliates and agents and sub-contractors under this Agreement
(e.g., each such sublicense will include an obligation on the sublicensee to
indemnify Acorda and its Affiliates for any losses resulting from claims
brought by a third party arising in connection with any personal injury and
property damage caused by the manufacture, testing, design, use, Sale or
labeling of any Licensed Products by such sublicensee);

 

(c)           each such sublicense shall be
memorialized in a written agreement with the sublicensee, a copy of which
agreement shall be delivered to each of the Institutions within sixty (60) days
of said sublicense becoming effective;

 

(d)           each such sublicense shall terminate
automatically on the termination of this Agreement for any reason whatsoever
and in such circumstances the Institutions shall grant the sublicensee a direct
license to the same extent wherein the financial terms shall be substantially
equivalent to those of the sublicense, with all payments due under such direct
license being payable directly to the Institutions;

 

(e)           each such sublicense shall provide
that Acorda may terminate the sublicense if the sublicensee commences legal
proceedings to challenge the validity of any of the Licensed Patents; and

 

(f)            Acorda and its Affiliates shall use
best endeavors to enforce all payment obligations contained in each such
sublicense.

 

2.4          Acorda
and its Affiliates (or its sublicensee, as applicable) may grant only one (1) sublicense
under the Licensed Patents relating to small molecule inhibitors for use in
treating CNS disorders, diseases or injuries in any given jurisdiction.  For clarity, the one (1) sublicense in a
given jurisdiction may be a sublicense granted by another sublicensee
hereunder.

 

2.5          No Implied License.  The
licenses and rights granted in this Agreement shall not be construed to confer
any rights upon Acorda and its Affiliates by implication, estoppel, or
otherwise as to any technology not specifically identified in this Agreement as
Licensed Patents.

 

ARTICLE 3

 

COMPENSATION

 

3.1          Upfront Payment.  Within ten (10) days of the Effective
Date, Acorda shall pay Institutions an upfront license fee in the amount of [***].

 

6

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

3.2          Royalties on Licensed Enzyme Products.  Subject to Sections 3.2(a) and 3.4, Acorda shall pay the
Institutions royalties in the amount of [***] of the aggregate Net Sales of
Licensed Enzyme Products made by Acorda and/or its Affiliates in countries in
the Licensed Territory where such sales are covered by a Valid Claim in an
issued patent in the Licensed Patents.

 

(a)           Royalty
Rate Adjustment.  If licenses to dominant Third Party patents
(that is, patents that claim the Licensed Enzyme Product or its manufacture or
use) are required for Acorda or its Affiliates to research, develop, make, have
made, use, sell, offer for sale, have sold, import, export, lease and otherwise
exploit Licensed Enzyme Products in the Licensed Territory, Acorda may deduct,
from the royalty amount payable by Acorda to Institutions, up to [***] of the
royalty amounts owed the Third Party under such licenses, provided that in no
event shall Institutions receive less than [***] of the aggregate Net Sales of
Licensed Enzyme Products Sold by Acorda and/or its Affiliates in the Licensed
Territory.

 

(b)           Royalties
on Sublicenses.  Subject to Section 3.5, if Acorda and/or
its Affiliates grants a sublicense under any or all of its rights in the
Licensed Patents to a Third Party to research, develop, make, have made, use,
sell, offer for sale, have sold, import, export, lease and otherwise exploit
Licensed Enzyme Products, then Acorda will pay Institutions a percentage of all
Sublicense Royalties received by Acorda and/or its Affiliates from such Third Party
sublicensee based on such sublicense, according to the following schedule:

 

[***]

 

For purposes of this Section 3.2(b) and Section 3.3(a),
“commencing” a Clinical Trial shall mean administration of the first dose of a
Licensed Product to a subject.

 

3.3          Royalties on Licensed Small Molecule
Inhibitor Products.  Subject to Section 3.4, Acorda shall pay
Institutions royalties in the amount of one-half percent (0.5%) of the

 

7

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

aggregate Net Sales of
Licensed Small Molecule Products by Acorda and/or its Affiliates in countries
in the Licensed Territory where such sales are covered by a Valid Claim in an
issued patent in the Licensed Patents.

 

(a)           Royalties on
Sublicenses.  Subject to Section 3.5, if Acorda and/or
its Affiliates grants a sublicense under any or all of their rights in the
Licensed Patents to a Third Party to research, develop, make, have made, use,
sell, offer for sale, have sold, import, export, lease and otherwise exploit
Licensed Small Molecule Inhibitor Products, then Acorda will pay Institutions a
percentage of all Sublicense Royalties received by Acorda and/or its Affiliates
from such Third Party sublicensee based on such sublicense, according to the
following schedule:

 

[***]

 

3.4          Royalties on Combination Licensed Products.  In the event a Licensed
Product is sold in the form of a combination product containing one or more
Active Ingredients in addition to the Licensed Product Active Ingredient
(hereinafter “Combination Licensed Product”) in
countries in the Licensed Territory where such sales are covered by a Valid
Claim in an issued patent in the Licensed Patents, then Net Sales for such
Combination Licensed Product, for purposes of calculating Earned Royalties due
hereunder on Net Sales of Licensed Enzyme Products and Licensed Small Molecule
Inhibitor Products (as applicable) by Acorda, will be adjusted by multiplying
actual Net Sales of such Combination Licensed Product by the applicable
fraction, which will be negotiated in good faith by the Parties with the
intention of agreeing upon a fair and equitable formula that reasonably
reflects the relative value contributed by the Licensed Product to the total
value of the combination in the Combination Licensed Product, as compared to
the other Active Ingredients therein.  Each
Party shall share with the

 

8

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

other Parties any
information in its possession that is relevant for determining such relative
value.

 

3.5          [***]

 

3.6          [***]

 

9

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

ARTICLE 4

 

REPORTS, PAYMENTS AND ACCOUNTING

 

4.1          Royalties Reports and Records.  During the term of this Agreement, Acorda shall furnish, or cause to be
furnished to the Institutions, written reports for each of Acorda and its
Affiliates showing, for each fiscal quarter during the applicable Payment
Period, the applicable information as follows:

 

(a)           the gross sales of all Licensed
Products Sold by Acorda and its Affiliates in the Licensed Territory during the
reporting period, together with the calculations of Net Sales in accordance
with Section 1.16;

 

(b)           the Earned Royalties payable in
Dollars, together with the calculations thereof, which shall have accrued
hereunder in respect to such Net Sales;

 

(c)           the Sublicense Royalties received by
Acorda and the portion of such Sublicense Royalties payable to the Institutions
in accordance with Sections 3.2(b) and 3.3(a), as applicable;

 

(d)           the exchange rates, if any, in
determining the amount of Dollars payable to the Institutions; and

 

(e)           the occurrence of any event
triggering a milestone payment obligation in accordance with Section 3.6.

 

Such reports shall be
substantially in the form of the template as given in Schedule 1 Part A
and shall be due to Institutions within thirty (30) days after the close of the
second Acorda fiscal quarter in the applicable Payment Period.  Each such report shall: (a) contain a
statement in substantially the form “I hereby represent and warrant that this
report is true and correct to the best of my knowledge and belief” and; (b) be
signed by an officer of Acorda.  Acorda
shall keep accurate records in sufficient detail to enable Earned Royalties,
Sublicense Royalties and other payments payable hereunder to be determined,
such records to include without limitation the amounts and source of any
deductions made pursuant to Section 3.2(a).  Acorda shall be responsible for all Earned
Royalties, Sublicense Royalties and other payments that are due

 

10

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

Institutions from Acorda’s
Affiliates and have not been paid by such Affiliates.  If a report required pursuant to this Section 4.1
is not submitted to the Institutions by the applicable due date, Institutions
may give Acorda notice of such failure, and if Acorda does not provide such
report within thirty (30) days of such notice, then Acorda shall pay to the
Institutions the amount of [***] for each calendar month after such notice that
such report remains undelivered.

 

4.2          Payee Designation.  All payments made pursuant to Article 3
of this Agreement to be made to Institutions by Acorda (and/or its Affiliates)
under this Agreement shall be paid by telegraphic transfer to the account of
Cambridge University Technical Services Ltd at Barclays Bank of Bene’t Street,
Business Centre, PO Box No 2, Cambridge CB2 3PZ, sort code 20-17-19 account
number 90532215.  The Parties agree that
payments made by Acorda and/or its Affiliates and received by CUTS shall
satisfy Acorda’s payment obligations to the Institutions hereunder.

 

4.3          Payment Terms.  All payments made pursuant to Article 3
of this Agreement shall be made in accordance with Schedule 1 Part B.  Each report pursuant to Section 4.1
shall be accompanied by payment to CUTS of the Earned Royalties, Sublicense
Royalties or other payments due hereunder (as applicable) shown by said report
to be due to the Institutions.

 

4.4          Non-Payment Terms.  All payments made pursuant to Article 3
of this Agreement shall be made within thirty (30) days after the close of the
second Acorda fiscal quarter in the applicable Payment Period, failing which
the Institutions may charge interest on any outstanding amount on a daily basis
at [***] then in force.  All payments due
pursuant to Article 3 of this Agreement shall be made without deduction of
income tax or other taxes charges or duties. 
Payments due between the end of the final Payment Period and termination
or expiry of this Agreement shall be paid within thirty (30) days of said
termination or expiry.

 

4.5          Right to Audit.  Upon prior written notice to Acorda and not
more than once in each Acorda fiscal year, the Institutions shall have the
right to engage an independent, nationally-certified auditing firm selected by
the Institutions and acceptable to Acorda, which acceptance shall not be
unreasonably withheld, to have access during normal business hours of Acorda
and on reasonable advance notice, to the applicable books and records of
Acorda, as may be reasonably necessary to verify the accuracy of the royalty
reports required to be furnished by Acorda pursuant to Section 4.1 of this
Agreement.  If such audit shows any
underpayment of Earned Royalties or Sublicense Royalties by Acorda, then,
within thirty (30) days after Acorda’s receipt of such report, Acorda shall
remit or shall cause its Affiliates to remit to the Institutions:

 

(a)           the amount of such
underpayment; and

 

(b)           if such underpayment
exceeds [***] of the total Earned Royalties and/or Sublicense Royalties owed
for the fiscal year then being reviewed, the reasonably necessary fees and
expenses of such auditing firm performing the audit.  Otherwise, such fees and expenses shall be
borne solely by Institutions.  Any
overpayment of Earned Royalties and/or Sublicense Royalties shall be fully
creditable against future Earned Royalties and/or Sublicense Royalties payable
in any subsequent Payment Period.

 

11

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

4.6          Confidentiality of Records. 
All
information provided by Acorda, or subject to review under this Article 4,
shall be deemed Acorda’s Confidential Information (as defined in Section 9.1).  The independent, nationally-certified
auditing firm shall not disclose to the Institutions or to any Third Party any
such Confidential Information, except for any information showing a discrepancy
in amount owed to the Institutions, and the Institutions shall not use or
disclose any such Confidential Information for any purpose other than
determining and enforcing its rights under this Agreement.

 

4.7          Currency Restrictions. 
Except as
otherwise provided hereinafter in this Section 4.7, all Earned Royalties
and Sublicense Royalties shall be paid in Dollars.  If, at any time, legal or other restrictions
imposed by a government or governmental agency or established by a court of
competent jurisdiction in a particular country, prevent the prompt remittance
and conversion into Dollars of part of or all Earned Royalties and/or
Sublicense Royalties with respect to Sales of Licensed Products in such
country, Acorda and/or its Affiliates shall have the right and option to make
such payments by depositing the amount thereof in local currency to the
Institutions’ account in a bank or depository in such country.

 

ARTICLE 5

 

DEVELOPMENT RESPONSIBILITIES; DILIGENCE

 

5.1          Institutions’ Responsibilities:   During the term of this Agreement, each of CUTS and KCL (or their
designates) shall:

 

(a)           transfer to Acorda all relevant and
material information and data (except grant applications) in its possession and
generated by the Inventors directly relating to the inventions claimed in the
Licensed Patents, except to the extent such transfer is prevented by
confidentiality obligations or other limitations pursuant to agreements or
understandings between each of CUTS and KCL, respectively, and a Third Party,
and Acorda shall have the right to use such information and data for the
protection and exploitation of the Licensed Patents, including but not limited
to the development and commercialization of products covered by the Licensed
Patents, in accordance with its rights under the Agreement; and

 

(b)           have the right to review and comment
on the design and implementation of any Clinical Trial to be performed by
Acorda and/or its Affiliates relating to any Licensed Enzyme Product or
Licensed Small Molecule Inhibitor Product, provided that Institutions shall be
bound by typical confidentiality restrictions with respect to any information
disclosed by Acorda relating thereto.

 

5.2          Acorda Responsibilities. 
During the
term of this Agreement, Acorda and/or its Affiliates shall:

 

(a)           subject to 12.7, give credit to the
Institutions (or their designees) for co-authorship of any publications by
Acorda and/or its Affiliates relating to the Licensed Patents and acknowledge
the efforts of each of Cambridge, CUTS and KCL in creating the Licensed
Patents; and

 

12

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

(b)           be solely responsible for their own
expenses incurred in connection with their research and development efforts
relating to the Licensed Patents.

 

5.3          General Diligence Obligations.

 

(a)           Licensed Patents.  Acorda shall use commercially reasonable efforts to conduct further
research relating to Licensed Patents from time to time to evaluate their
scientific and commercial utility.

 

(b)           Licensed Products.  Acorda shall, either through its own efforts and/or those of its
Affiliates, use commercially reasonable efforts to develop and commercialize,
and/or sublicense for development and commercialization, Licensed Enzyme
Products and Licensed Small Molecule Inhibitor Products (subject to the
limitation on sublicensing in Section 2.4 with respect to Small Molecule
Inhibitor Products) as it deems appropriate, in the exercise of its business
judgment.

 

(c)           Share of Information.  Acorda and/or its Affiliates shall share with the Institutions and
Cambridge information developed through the research efforts of Acorda and/or
its Affiliates relating to the Licensed Patents, except to the extent
disclosure is prevented by confidentiality obligations of an agreement between
Acorda and/or its Affiliates and a Third Party.

 

5.4          [***]

 

5.5          [***]

 

13

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

ARTICLE 6

 

PATENTS AND PATENT COSTS

 

6.1          Prosecution and Maintenance of Licensed Patents.  The Institutions and Acorda shall work collaboratively to effect and
conduct the ongoing patent prosecution and maintenance activities relating to
the Licensed Patents.  CUTS shall be
primarily responsible for overseeing such ongoing patent prosecution and shall
pursue such patent prosecution to further Acorda’s reasonable commercial
interest in the Licensed Patents.  CUTS
shall provide Acorda with copies of all material documents relating to the
filing, prosecution and maintenance of Licensed Patents, including filings and
correspondence with patent authorities, in a timely manner, so as to give
Acorda an opportunity to comment thereon.  Acorda may provide comments to the
Institutions regarding such patent prosecution (including but not limited to
guidance in the drafting of claims for the Patent Application and other
Licensed Patents) and the Institutions will pay due and reasonable
consideration to such comments regarding claims relating directly to Licensed
Enzyme Products.  Acorda agrees to keep
any documentation received under this Section 6.1 confidential in
accordance with Article 9 herein.

 

6.2          Patent Costs.

 

(a)           Enzyme Method Patent
Costs.  Acorda shall pay for all reasonable costs for
prosecution and maintenance of patent filings of the Licensed Patents, to the
extent of claims therein relating to enzymatic methods of treating CNS
disorders, diseases or injuries (“Enzyme Method Patent
Costs”), incurred by CUTS after the Effective Date of this Agreement.

 

(b)           Small Molecule
Inhibitor Method Patent Costs.  Acorda shall pay a percentage,
calculated in accordance with Section 6.2(b)(i), of all reasonable costs
for prosecution and maintenance of patent filings of the Licensed Patents, to
the extent of claims therein relating to small molecule inhibitors for use in
treating CNS disorders, diseases or injuries (“Small
Molecule Inhibitor Method Patent Costs”), incurred by CUTS after the
Effective Date of this Agreement.

 

(i)            Allocation and
Reimbursement of Small Molecule Inhibitor Method Patent Costs.  Acorda shall pay the percentage of Small Molecule Inhibitor Method
Patents Costs calculated on the basis of the total number of non-exclusive
licenses granted by

 

14

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

CUTS
and/or KCL under the claims in the Licensed Patents relating to small molecule
inhibitors for the treatment of CNS disorders, diseases or injuries in
accordance with the following formula:

 

[***]
 CUTS shall promptly notify Acorda in
writing of any grant of a non-exclusive license under the claims in the
Licensed Patents relating to small molecule inhibitors for the treatment of CNS
disorders, diseases or injuries.

 

(c)           Calculation of
Patent Costs.  The Parties acknowledge and agree that it may
be difficult to determine patent costs relating to either the use of enzymes,
or small molecule inhibitors, for the treatment of CNS disorders, diseases or
injuries, given that both methods are included in a single patent application.
If any Party disagrees with the allocation of patent costs calculated in
accordance with Sections 6.2(a) and 6.2(b), then Institutions and Acorda
shall use their good faith efforts to negotiate and determine a reasonable
allocation of any patent costs such that Enzyme Method Patent Costs will
reasonably reflect prosecution and maintenance costs relating to such enzyme
method and the Small Molecule Inhibitor Patent Costs will reasonably reflect
prosecution and maintenance costs relating to such small molecule inhibitor
method. For the avoidance of doubt, as of the Effective Date, the Small
Molecule Inhibitor Patent Costs and the Enzyme Method Patent Costs each
constitute [***] since they are combined in one patent application, provided,
however, that such percentage may change during the term of this Agreement if,
for example, the Patent Application is separated into multiple patent
applications.

 

6.3          Acorda’s Payment
Terms.  CUTS shall seek Acorda written approval prior
to commitment of Enzyme Method Patent Costs and Small Molecule Inhibitor Method
Patent Costs where practical and Acorda shall give or withhold approval within
ten (10) calendar days. Where impractical to seek Acorda approval in the
time available, CUTS shall have discretion to assume Acorda approval and commit
but limit any such commitment of Enzyme Method Patent Costs and Small Molecule
Inhibitor Method Patent Costs to [***].

 

6.4          Non-Payment Terms. In the event that payment is not received by
CUTS within thirty (30) days of receipt by Acorda of an invoice for Enzyme
Method Patent Costs and/or Small Molecule Inhibitor Method Patent Costs
pursuant to Article 6 of this Agreement, the Institutions may charge
interest on any outstanding amount on a daily basis at [***] then in force. All
payments due pursuant to Article 6 of this Agreement shall be made without
deduction of income tax or other taxes charges or duties. Payments due between
the end of the final Payment Period and termination or expiry of this Agreement
shall be paid within thirty (30) days of said termination or expiry.

 

6.5          [***]

 

15

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

ARTICLE 7

 

INFRINGEMENT

 

7.1          Enforcement of Licensed Patents Relating to Enzymes.   If either Acorda and/or its Affiliates or the Institutions become aware
of a product made, used or sold in the Licensed Territory, which it believes
infringes a Valid Claim relating to any pharmaceutical product containing or
directly activating an enzyme, including but not limited to chondroitinase, to
treat CNS disorders, diseases or injuries (the “Enzyme
Method”), the Party obtaining such knowledge shall promptly advise
the other Parties of all relevant facts and circumstances pertaining to the potential
infringement. Acorda shall have the first right, but not the obligation, to
enforce any patent rights within the Licensed Patents against such
infringement, at its own expense. The Institutions shall agree to be joined
with Acorda in any such legal action subject to being indemnified and secured
in a reasonable manner as to any costs, damages, expenses or other liability
and shall have the right to be separately represented by their own counsel at
their own expense. Before starting legal action in accordance with this Section 7.1
or agreeing to any settlement, Acorda shall consult the Institutions and
consider their views about the advisability of the action or settlement, its
effect on the public interest and how the action should be conducted.

 

(a)            Recovery.  Any damages or costs recovered
in connection with any action filed by Acorda under this Section 7.1 which
exceed Acorda’s out-of-pocket costs and expenses of litigation, shall be deemed
to be Net Sales of Licensed Enzyme Products in the fiscal quarter received by
Acorda.   Earned Royalties on such Net
Sales shall be payable by Acorda to Institutions in accordance with the terms
of this Agreement.

 

(b)            Backup Enforcement Right of Institutions. If Acorda does not, within one hundred twenty
(120) days after receiving notice from Institutions of a potential infringement,
or providing Institutions with notice of such infringement, either (i) effect
the

 

16

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

termination
of such infringement, or (ii) institute an action to prevent continuation
thereof and, thereafter prosecute such action diligently, or if Acorda notifies
Institutions that it does not plan to terminate the infringement or institute
such action, then Institutions shall have the right but not the obligation to
do so at their own expense; provided however, that Institutions shall first
consult with Acorda and give due consideration to Acorda’s reasons for not
instituting actions to terminate or otherwise prevent continuation of such
infringement. If Institutions decide to pursue such infringement, Acorda shall
cooperate with Institutions in such effort, at Institutions’ expense, including
being joined as a party to such action if necessary. Institutions shall be
entitled to retain all damages or costs awarded to Institutions in such action.

 

7.2          Enforcement of
Licensed Patents Relating to Small Molecule Inhibitors.  If either
Acorda and/or its Affiliates or Institutions become aware of a product made,
used or sold in the Licensed Territory, which it believes infringes a Valid Claim
relating to small molecule inhibitors for use in treating CNS disorders,
diseases or injuries (the “Small Molecule Inhibitor
Method”), the Party obtaining such knowledge shall promptly advise
the other Parties of all relevant facts and circumstances pertaining to the
potential infringement. Institutions shall have the first right, but not the
obligation, to enforce any patent rights within the Licensed Patents against
such infringement, at its own expense.  Acorda shall agree to be joined with the
Institutions in any such legal action subject to being indemnified and secured
in a reasonable manner as to any costs, damages, expenses or other liability
and shall have the right to be separately represented by their own counsel at
their own expense. Before starting legal action in accordance with this Section 7.2
or agreeing to any settlement, the Institutions shall consult Acorda and
consider their views about the advisability of the action or settlement, its
effect on the public interest and how the action should be conducted.

 

(a)             Recovery.  Any damages or costs recovered
in connection with any action filed by Institutions under this Section 7.2
which exceed Institutions’ out-of-pocket costs and expenses of litigation,
shall be divided equally among Institutions, Acorda and any Third Party(ies)
holding a non-exclusive license under Institutions’ rights in Licensed Patents
relating to small molecule inhibitors for use in treating CNS disorders,
diseases or injuries during the term of such infringement.

 

(b)             Backup Enforcement Right of Acorda.  If
Institutions do not, within one hundred eighty (180) days after receiving
notice from Acorda of a potential infringement, or providing Acorda with notice
of such infringement, either (i) effect the termination of such infringement,
or (ii) institute an action to prevent continuation thereof and,
thereafter prosecute such action diligently, or if Institutions notify Acorda
that it does not plan to terminate the infringement or institute such action,
then Acorda shall have the right but not the obligation to do so at its own
expense; provided however, that Acorda shall first consult with Institutions
and give due consideration to Institutions’ reasons for not instituting actions
to terminate or otherwise prevent continuation of such infringement.    If Acorda decides to pursue such infringement,
Institutions shall cooperate with Acorda in such effort, at Acorda’s expense, including
being joined as a party to such action if necessary.  Acorda shall be entitled to retain all damages
or costs awarded to Acorda in such action.

 

7.3          Enforcement of
Licensed Patents Generally.  If either Acorda or
Institutions become aware of a product made, used or sold in the Licensed
Territory, which it believes

 

17

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

infringes a Valid Claim that does not relate specifically to either the
Enzyme Method or the Small Molecule Inhibitor Method, the Party obtaining such
knowledge shall promptly advise the other Parties of all relevant facts and
circumstances pertaining to the potential infringement. Acorda shall have the
first right, but not the obligation, to enforce any patent rights within the
Licensed Patents against such infringement, at its own expense. The
Institutions shall agree to be joined with Acorda in any such legal action subject
to being indemnified and secured in a reasonable manner as to any costs,
damages, expenses or other liability and shall have the right to be separately
represented by their own counsel at their own expense. Before starting legal
action in accordance with this Section 7.3 or agreeing to any settlement,
Acorda shall consult the Institutions and consider their views about the
advisability of the action or settlement, its effect on the public interest and
how the action should be conducted.

 

(a)           Recovery. Any damages or costs recovered in connection
with any action filed by Acorda under this Section 7.3 which exceed Acorda’s
out-of-pocket costs and expenses of litigation, shall be deemed to be Net Sales
of Licensed Small Molecule Inhibitor Products in the fiscal quarter received by
Acorda. Earned Royalties on such Net Sales shall be payable by Acorda to
Institutions in accordance with the terms of this Agreement.

 

(b)           Backup Enforcement
Right of Institutions.
If Acorda does not, within one hundred eighty (180)  days after receiving notice from Institutions
of a potential infringement, or providing Institutions with notice of such
infringement, either (i) effect the termination of such infringement, or (ii) institute
an action to prevent continuation thereof and, thereafter, prosecute such
action diligently, or if Acorda notifies Institutions that it does not plan to
terminate the infringement or institute such action, then Institutions shall
have the right but not the obligation to do so at their own expense; provided
however, that Institutions shall first consult with Acorda and give due
consideration to Acorda’s reasons for not instituting actions to terminate or
otherwise prevent continuation of such infringement   If Institutions decide to pursue such infringement,
Acorda shall cooperate with Institutions in such effort, at Institutions’ expense.
 including being joined as a party to
such action if necessary.   Institutions
shall be entitled to retain all damages or costs awarded to Institutions in
such action.

 

7.4          Invalidity or Unenforceability
Defenses or Actions.

 

(a)           If a Third Party
asserts, as a defense or as a counterclaim in any infringement action under
Sections 7.1, 7.2 or 7.3, that any Licensed Patent is invalid or unenforceable,
or that an interference should be declared with respect to a Licensed Patent,
then the Parties shall promptly meet (which meeting may at any Party’s request
be by telephone conference or videoconference) to discuss the response to such
defense or defense of such counterclaim or action (as applicable) and shall
cooperate with one another in such response or defense. The Party or Parties
that are the plaintiffs in the underlying suit or action against such Third
Party shall have the initial right to respond to such defense or defend against
such counterclaim (as applicable), provided that
such response or defense shall be conducted in collaboration with the other
Parties, to the extent that the other Parties’ intellectual property rights or
rights under this Agreement are the subject of such invalidity or
unenforceability defense or counterclaim. The Party plaintiff shall involve
such other Party(ies) in all decisions as to such response or defense, and in
any event such Party plaintiff shall not settle or otherwise compromise such
defense or counterclaim in any way that adversely affects such other Party’s

 

18

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions, which
are marked with brackets [   ] and an
asterisk*, have been separately filed with the Commission.

 

 

intellectual property rights or rights under
this Agreement without such other Party’s written consent, not to be
unreasonably withheld or delayed.

 

(b)           Similarly, if a Third Party asserts,
in a declaratory judgment action or similar action or claim filed by such Third
Party that any Licensed Patent is invalid or unenforceable or that an
interference should be declared with respect to a Licensed Patent, then the
Parties shall promptly meet (which meeting may at any Party’s request be by
telephone conference or videoconference) to discuss the defense of such action
or claim and shall cooperate with one another in such defense. The Party that
is the defendant in such claim, suit or action shall have the initial right to
defend against same, provided that
such defense shall be conducted in collaboration with the other Parties and a
process under which each Party shall have a reasonable opportunity to participate
in such defense shall be established, and in any event Acorda shall at all
times be permitted to intervene in such defense, at its expense, and provided further that to the extent that
any other Party’s intellectual property rights or interests under this Agreement
are the subject of, or materially impacted by, such invalidity or
unenforceability claim, suit or action, the defending Party shall involve such
other Party in all decisions as to such defense, and in any event such
defending Party shall not settle or otherwise compromise such defense in any
way that adversely affects such other Party’s intellectual property rights or
its rights under this Agreement without such other Party’s written consent, not
to be unreasonably withheld or delayed.

 

(c)           The Party defending any claim or
action under this Section 7.4 shall be responsible for [***] of the out-of-pocket and
reasonable costs and expenses of any such defenses, provided that if Acorda is
defending, Acorda may credit such defense costs and expenses against royalties
owed to Institutions under Sections 3.2 and 3.3.

 

7.5          Third
Party Litigation.  If a Third Party institutes an infringement
suit or action against Acorda and/or its Affiliate and/or sublicensee alleging
that the manufacture, use or sale of any Licensed Product by Acorda and/or an
Affiliate and/or sublicensee, in a country in the Licensed Territory infringes
one or more patent or other intellectual property right held by such Third
Party (an “Infringement Suit”), Acorda (or such
Affiliate or sublicensee) shall have the right to defend and settle such
Infringement Suit at its sole expense. In such event, the Parties shall meet
(which meeting may at any Party’s request be by telephone conference or
videoconference) and discuss in good faith the best defenses to such
Infringement Suit, and Institutions shall, subject to being indemnified against
any liability and having the right to be separately represented by their own
counsel at their own expense, provide Acorda with reasonable assistance and
cooperation in defending such Infringement Suit at Acorda’s sole expense.
Acorda shall have the right to credit against royalties owed to the
Institutions under Sections 3.2 and 3.3 [***]
of any costs and expenses of such defense and settlement, but solely to the
extent such costs and expenses relate directly to the defense and settlement
(if any) of any claims or allegations relating directly to infringement by the
Licensed Product. If, however, such Third Party makes a payment to reimburse
Acorda (and/or its Affiliate and/or sublicensee) for such costs and expenses of
defending such infringement suit or action, then Acorda will pay to
Institutions, out of such Third Party payment, a pro rata amount (i.e., the ratio of the amount of the Third
Party payment compared to the total defense costs and expenses), but not to
exceed the total amount that Acorda credited against royalties owed under the
previous sentence. Notwithstanding the foregoing, Acorda (or such Affiliate or
sublicensee)

 

19

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

shall not settle any such
Infringement Suit in a manner that materially adversely impacts the Licensed
Patents without Institutions’ prior written consent, such consent not to be
unreasonably withheld or delayed. For clarity, any costs and expenses of
enforcing Licensed Patents, including those costs relating to the assertion of
a counterclaim alleging infringement of Licensed Patents by a Third Party in
response to an Infringement Suit, shall not be included in the calculation and
allocation of costs and expenses under this Section 7.5, but instead shall
be included in the calculation and allocation of costs and expenses under Section 7.1,
7.2 or 7.3, as applicable.

 

ARTICLE 8

 

INDEMNIFICATION
AND LIMITATION OF LIABILITY

 

8.1          Limitation of
Liability.  NO PARTY SHALL BE LIABLE TO ANOTHER PARTY, ITS
AFFILIATES, CUSTOMERS OR SUBLICENSEES FOR ANY COMPENSATORY, SPECIAL, INCIDENTAL,
INDIRECT, CONSEQUENTIAL OR EXEMPLARY DAMAGES ARISING FROM OR RELATING TO ANY
BREACH OF THIS AGREEMENT OR THE MANUFACTURE, TESTING, LABELING, USE OR SALE OF LICENSED
PRODUCTS. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 8.1 IS
INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY
PARTY UNDER SECTIONS 8.2, 8.3 OR 8.4, OR DAMAGES AVAILABLE FOR BREACHES OF CONFIDENTIALITY
OBLIGATIONS IN ARTICLE 9.

 

8.2          Indemnification
by Acorda.

 

(a)           Indemnification of
CUTS.  Acorda and/or its Affiliate shall defend, indemnify
and hold harmless CUTS and the University of Cambridge, and their respective directors,
students and employees (the “CUTS Indemnitees”),
from and against any and all losses, liabilities, expenses or damages
(including reasonable attorneys’ fees) (collectively, the “Losses”)
resulting from claims made or legal proceedings instituted, made or brought
against any CUTS Indemnitee by a Third Party arising or alleged to arise by
reason of, or in connection with, any and all personal injury (including death)
and property damage caused by the manufacture, testing, design, use, Sale or
labeling of any Licensed Products by Acorda or its Affiliates, contractors,
agents or sublicensees, except to the extent of any Losses that arise from the
negligence or intentional misconduct of any CUTS Indemnitee.

 

(b)           Indemnification of KCL. Acorda shall defend, indemnify and hold harmless
KCL and its directors, students and employees (the “KCL
Indemnitees”), from and against any and all Losses resulting from
claims or legal proceedings instituted, made or brought against any KCL
Indemnitee by a Third Party arising or alleged to arise by reason of, or in connection
with, any and all personal injury (including death) and property damage caused
by the manufacture, testing, design, use, Sale or labeling of any Licensed
Products by Acorda or its Affiliates, contractors, agents or sublicensees,
except to the extent of any Losses that arise from the negligence or
intentional misconduct of any KCL Indemnitee.

 

8.3          Indemnification by
CUTS.  CUTS shall defend, indemnify and hold harmless
Acorda and its Affiliates, directors, officers, agents, contractors,
sublicensees and employees (the

 

20

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

“Acorda Indemnitees”) from and against any
and all Losses resulting from claims or legal proceedings instituted, made or
brought against any Acorda Indemnitee by a Third Party arising or alleged to
arise by reason of, or in connection with, any breach of Section 12.2 by
CUTS, except to the extent of any Losses that arise from the gross negligence
or intentional misconduct of any Acorda Indemnitee, and in any such event, CUTS
liability to the Acorda Indemnitees shall not exceed the total amount of the
portion of all payments paid by Acorda to CUTS under this Agreement that CUTS
retains and is not subsequently paid by CUTS to KCL; provided however, and CUTS
hereby agrees, that such limitation shall not exclude or restrict CUTS
liability for any fraud or other intentional misrepresentation, or death and
personal injury caused by gross negligence or wilful misconduct of any CUTS
Indemnitee.

 

8.4          Indemnification by
KCL.  KCL shall defend, indemnify and hold harmless
Acorda Indemnitees from and against any and all Losses resulting from claims or
legal proceedings instituted, made or brought against any Acorda Indemnitee by
a Third Party arising or alleged to arise by reason of, or in connection with,
any breach of Section 12.1 by KCL, except to the extent of any Losses that
arise from the gross negligence or intentional misconduct of any Acorda
Indemnitee, and in any such event, KCL liability to the Acorda Indemnitees
shall not exceed the total amount of the portion of all payments paid by Acorda
to KCL under this Agreement; provided however, and KCL hereby agrees, that such
limitation shall not exclude or restrict KCL liability for any fraud or other
intentional misrepresentation, or death and personal injury caused by gross
negligence or wilful misconduct of any KCL Indemnitee.

 

8.5          General Conditions of
Indemnification.  To be eligible to be indemnified hereunder,
the indemnified Party shall provide the indemnifying Party with prompt notice
of the claim giving rise to the indemnification obligation pursuant to this Article 8
and the exclusive ability to defend (with the reasonable cooperation of the
indemnified Party) or settle any such claim; provided,
however, that the indemnifying Party shall not enter into any
settlement for damages other than monetary damages without the indemnified
Party’s prior written consent, such consent not to be unreasonably withheld or
delayed. The indemnified Party shall have the right to participate, at its own
expense and with counsel of its choice, in the defense of any claim or suit
that has been assumed by the indemnifying Party.

 

8.6          Insurance.  Each
Party shall maintain reasonable levels of insurance or other adequate forms of
protection to satisfy its respective indemnification obligations under this Agreement.

 

ARTICLE 9

 

CONFIDENTIALITY

 

9.1          Nondisclosure of
Confidential Information.  Except as otherwise provided
hereunder, during the term of this Agreement and for a period of five (5) years
thereafter, each Party (the “Receiving Party”)
agrees to retain in strict confidence, use only for the purposes of this
Agreement, and not disclose any written information or data supplied by or on
behalf of another Party to such Receiving Party under this Agreement and marked
as proprietary or confidential (“Confidential Information”).
Any written information, materials or data disclosed by one Party to another
Party pursuant to the Confidential Disclosure Agreement

 

21

 

Certain portions
of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

among the Parties dated July 3, 2002 shall be deemed the
disclosing Party’s Confidential Information under this Agreement and shall be
subject to the provisions of this Article 9.

 

9.2          Permitted Disclosure.  It
shall not be a breach of this Article 9 if the Receiving Party is required
to disclose another Party’s Confidential Information pursuant to an order of
the government or a court of competent jurisdiction, provided that the
Receiving Party (a) provides such other Party with adequate notice of the
required disclosure, (b) cooperates with such other Party’s efforts to
protect its Confidential Information with respect to such disclosure and (c) takes
all reasonable measures requested by such other Party to challenge or to modify
the scope of such required disclosure. To the extent that it is reasonably
necessary to fulfill its obligations or exercise its rights under this
Agreement, or any rights which survive termination or expiration hereof, the
Receiving Party may disclose Confidential Information of such other Party to
its Affiliates, sublicensees, consultants, outside contractors and clinical
investigators provided that such entities or persons are bound by obligations
of confidentiality and non-use no less restrictive than the obligations in this
Agreement and agree to use the Confidential Information only for such purposes
as the Receiving Party is authorized to use the Confidential Information hereunder.

 

9.3          Exceptions.  The
obligation of a Party under Section 9.1 not to use or disclose another
Party’s Confidential Information shall not apply to any part of such
Confidential Information that the Receiving Party can establish by competent
written proof:

 

(a)           at the time of disclosure is in the
public domain or after disclosure comes into the public domain other than by
unauthorized acts of the Receiving Party obligated not to disclose such
Confidential Information and/or its Affiliates and/or sublicensees in
contravention of this Agreement;

 

(b)           is disclosed to the Receiving Party,
its Affiliates or sublicensees by a Third Party having the right to disclose
it;

 

(c)           can be shown by written proof to
already have been in the possession of the Receiving Party, its Affiliates or
sublicensees prior to disclosure under this Agreement; or

 

(d)           results from the research and
development by the Receiving Party, its Affiliates or sublicensees, independent
of disclosures from the disclosing Party of this Agreement, provided that the
persons developing such information have not had exposure to the Confidential
Information received from the disclosing Party.

 

9.4          Confidential Nature
of Terms of Agreement.  Except as expressly provided herein, each
Party agrees not to disclose any terms of this Agreement to any Third Party
without the consent of the other Parties; provided, however, that disclosures
may be made as required by securities or other applicable laws, or to actual or
prospective investors, sublicensees, corporate or merger partners or acquirers,
or to a Party’s accountants, attorneys, and other professional advisors, and,
in the case of the Institutions, to The Wellcome Trust and in the case of KCL
to IP2IPO Limited, provided that such individuals or entities expressly agree
to keep the terms of the Agreement confidential.

 

22

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

ARTICLE 10

 

TERM AND
TERMINATION

 

10.1        Term.  Unless
sooner terminated as otherwise provided in this Agreement, the term of this
Agreement shall commence on the Effective Date hereof and shall continue in
full force and effect until the expiration of the last to expire Valid Claim
and on such date this Agreement and the licenses granted hereunder shall
automatically become non-exclusive, worldwide, fully paid-up, irrevocable
licenses upon such expiry.

 

10.2        Termination by Acorda.  Acorda
may terminate this Agreement at any time upon ninety (90) days prior written notice
to each of CUTS and KCL.

 

10.3        Termination by
Institutions.  The Institutions may terminate this Agreement forthwith
by giving written notice to Acorda if Acorda and/or its Affiliates and/or
agents and/or sub-contractors and/or sublicensees commence(s) legal proceedings
to challenge the validity or ownership of any of the Licensed Patents.

 

10.4        Termination by any
Party

 

(a)           Material Breach.  CUTS
and KCL may terminate this Agreement if Acorda materially breaches its material
obligations under this Agreement (e.g., material failure to pay CUTS and KCL
pursuant to the terms of this Agreement) and Acorda fails to cure the breach
within sixty (60) days after receipt of written notice from the non-breaching
Party, such notice specifying in detail the nature of the alleged breach. Acorda
may terminate this Agreement if one or both of the other Parties materially
breaches its material obligations under this Agreement and such breaching
Party(ies) fails to cure the breach within sixty (60) days after receipt of
written notice from Acorda, such notice specifying in detail the nature of the
alleged breach

 

(b)           Cease of Business.  Without prejudice to any other right or
remedy, any Party may terminate this Agreement at any time by notice in writing
to the other Parties, if any Party ceases to carry on business, is declared by
a court of competent jurisdiction to be bankrupt, or an order made or a
resolution passed for the winding up of any Party or upon the appointment of a
liquidator of that Party.

 

10.5         Consequences of Termination.  No
termination of this Agreement shall relieve Acorda of the liability for payment
of any Earned Royalties due for Licensed Products sold prior to the effective
date of such termination or for Sublicense Royalties paid or payable prior to
the effective date of such termination. Notwithstanding anything herein to the
contrary, upon any termination or expiration of this Agreement, Acorda shall
have the right to use or sell Licensed Products on hand on the date of such
termination or expiration and to complete Licensed Products in the process of
manufacture at the time of such termination or expiration and use or sell the
same, provided that Acorda shall submit the applicable royalty reports
described in Section 4.1, along with Earned Royalty and/or Sublicense
Royalty payments in accordance with Sections 3.2, 3.3 and 3.4 for Sale of such
Licensed Products. For clarity, upon termination of

 

23

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

this Agreement under Section 10.2 or 10.3, Institutions are free
to enter into a commercial license or similar agreement with any Third Party
with respect to such Licensed Patents, or otherwise exploit such Licensed
Patents. Further, upon the Institutions written request, the Parties shall
negotiate in good faith the terms of an agreement between them on reasonable
commercial terms to enable the Institutions to arrange for further exploitation
of the Licensed Products as they exist at the date of termination, including to
provide the Institutions with all improvements, information and results created
or developed by Acorda and/or its Affiliates and/or their agents.

 

ARTICLE 11

 

ASSIGNMENT

 

No Party may
assign or transfer this Agreement or any rights or obligations hereunder
without the prior written consent of the other Parties, except Acorda may make
such an assignment without Institutions’ written consent to an Affiliate or to
a successor to all, or substantially all, of the business of Acorda, whether in
a merger, sale of stock, sale of assets or other transaction, provided,
however, that Acorda may not assign or transfer this Agreement or any rights or
obligations hereunder without Institutions’ written consent to such a successor
entity where a significant portion of such entity’s commercial business
activity constitutes: (a) the manufacture and/or sale of military arms or
weapons, or (b) the manufacture and/or sale of tobacco containing
products. Any permitted successor or assignee of rights and/or obligations
hereunder shall, in a writing to the other Parties, expressly assume performance
of such rights and/or obligations. Any assignment or attempted assignment by
any Party in violation of the terms of this Article 11 shall be null and
void and of no legal effect.

 

ARTICLE 12

 

MISCELLANEOUS

 

12.1        KCL confirms to Acorda that with respect
to the Patent Application and/or the Licensed Patents:

 

(a)           as far as KCL is aware, having
neither commissioned nor performed any searches or investigations into the
existence of any third party rights, KCL owns its interests in the Patent
Application free and clear of all licenses and encumbrances and the like of any
nature whatsoever;

 

(b)           KCL is not currently involved in any
litigation, and is unaware of any pending litigation proceedings, relating to
Institutions’ ownership of the Patent Application;

 

(c)           this Agreement is a legal and valid
obligation of, binding upon, and enforceable against KCL in accordance with the
terms of this Agreement;

 

(d)           the execution, delivery and
performance of this Agreement does not as of the Effective Date conflict with, constitute
a breach of, or violate any arrangement, understanding or agreement to which
KCL is a party or by which KCL is bound;

 

24

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

(e)           KCL has not granted to a Third Party
any right or interest in any of the Licensed Patents that is inconsistent with
the rights granted to Acorda herein and shall not grant a Third Party any such
right during the term of this Agreement;

 

(f)            KCL has the right to enter into this
Agreement, grant the rights granted herein and perform the obligations set
forth in this Agreement; and

 

(g)           KCL is the legal owner of its right,
title and interest in the inventions developed by its respective Inventors
giving rise to the Licensed Patents.

 

12.2        CUTS confirms to Acorda that with
respect to the Patent Application and/or the Licensed Patents:

 

(a)           as far as CUTS is aware, having
performed no searches or investigations into the existence of any third party
rights, CUTS owns its interests in the Patent Application free and clear of all
licenses and encumbrances and the like of any nature whatsoever;

 

(b)           CUTS is not currently involved in any
litigation, and is unaware of any pending litigation proceedings, relating to
Institutions’ ownership of the Patent Application;

 

(c)           this Agreement is a legal and valid
obligation of, binding upon, and enforceable against CUTS in accordance with
the terms of this Agreement;

 

(d)           the execution, delivery and
performance of this Agreement does not as of the Effective Date conflict with, constitute
a breach of, or violate any arrangement, understanding or agreement to which
CUTS is a party or by which CUTS is bound;

 

(e)           CUTS has not granted to a Third Party
any right or interest in any of the Licensed Patents that is inconsistent with
the rights granted to Acorda herein and shall not grant a Third Party any such
right during the term of this Agreement;

 

(f)            CUTS has the right to enter into
this Agreement, grant the rights granted herein and perform the obligations set
forth in this Agreement; and

 

(g)           CUTS is the legal owner of its right,
title and interest in inventions developed by Professor James Fawcett giving
rise to the Licensed Patents.

 

12.3        Acorda confirms to Institutions that:

 

(a)           this Agreement is a legal and valid
obligation of, binding upon, and enforceable against Acorda in accordance with
the terms of this Agreement;

 

(b)           Acorda has the right to enter into
this Agreement and perform the obligations set forth in this Agreement;

 

(c)           the execution, delivery and
performance of this Agreement does not conflict with, constitute a breach of,
or violate any arrangement, understanding or agreement to which Acorda is a
party or by which Acorda is bound; and

 

25

 

Certain
portions of this Exhibit have been omitted pursuant to a request for confidentiality.  Such omitted portions, which are marked with
brackets [   ] and an asterisk*, have
been separately filed with the Commission.

 

 

(d)           Acorda shall be responsible for the
performance by its Affiliates in accordance with the terms of this Agreement.

 

12.4        Disclaimer of
Warranties.  CUTS AND KCL MAKE NO EXPRESS OR IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND ASSUMES
NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO THE USE, SALE, OR OTHER
DISPOSITION BY ACORDA AND/OR ITS AFFILIATES AND/OR ITS SUBLICENSEES OF LICENSED
PRODUCT(S).

 

12.5        Independent
Contractor.  Acorda’s relationship to Institutions shall be
that of a licensee only. None of the Parties shall be considered to be an
employee or agent of another, nor shall this Agreement constitute, create or in
any way be interpreted as a joint venture, partnership or formal business
organization of any kind. In that respect, no Party shall have the authority to
execute any agreement on behalf of another Party, nor shall any Party have any
authority to negotiate any agreement, except as such other Party may expressly
direct in writing.

 

12.6        Patent Marking.  Acorda
agrees to mark the appropriate patent number or numbers on all Licensed
Products made or Sold in the Licensed Territory in accordance with all applicable
governmental laws, rules and regulations, and to require its sublicensees
to do the same.

 

12.7        Use of Names.  Acorda shall obtain the prior written approval
of KCL or CUTS (as applicable), such approval not to be unreasonably withheld,
prior to making use of the name, trademarks, logos or symbols of KCL, the
University of Cambridge, CUTS (an authorized designee of the University of
Cambridge for purposes of this Agreement), or their respective employees,
students and faculty members for any commercial purpose, except as required to comply
with law, regulation or court order. Institutions shall obtain the prior
written approval of Acorda, such approval not to be unreasonably withheld,
prior to making use of the name, trademarks, logos or symbols of Acorda for any
commercial purpose, except as required to comply with law, regulation or court
order.

 

12.8        Governing Law.  This Agreement
and all amendments, modifications, alterations, or supplements hereto, and the
rights of the Parties hereunder, shall be construed under and governed by the
laws of England and shall be subject to the exclusive jurisdiction of the
English courts to which the Parties hereby submit, except that a Party may seek
interim injunction in any court of competent jurisdiction.

 

12.9        Entire Agreement.  This
Agreement, the Sponsored Research Agreement and the Material Transfer
Agreements of even date constitutes the entire, final and exclusive agreement among
the Parties hereto, and supercedes and terminates all prior agreements and
understandings between the Parties, with respect to the subject matter hereof
and thereof, whether written or oral, including the Confidential Disclosure
Agreement among the Parties dated July 3, 2002. No subsequent alteration,
amendment, change or addition to this Agreement shall be binding upon the
Parties unless reduced to writing and signed by an authorized officer of each
Party.

 

12.10      Survival.  Articles
1, 8, 9, and 12, and Sections 4.5, 4.6, 5.2 and 10.5 shall survive termination
of this Agreement for any reason.

 

26

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

12.11      Severability.  All
rights and restrictions contained herein may be exercised and shall be
applicable and binding only to the extent that they do not violate any
applicable national laws and are intended to be limited to the extent necessary
so that they will not render this Agreement illegal, invalid or unenforceable.
If any provision or portion of any provision of this Agreement, not essential
to the commercial purpose of this Agreement, shall be held to be illegal,
invalid or unenforceable by a court of competent jurisdiction, it is the
intention of the Parties that the remaining provisions or portions thereof
shall constitute their agreement with respect to the subject matter hereof, and
all such remaining provisions, or portions thereof, shall remain in full force
and effect. To the extent legally permissible, the Parties shall use good faith
efforts to agree to replace any illegal, invalid or unenforceable provision of
this Agreement with a valid provision that shall implement as much as permitted
the commercial intent of the illegal, invalid, or unenforceable provision. If
any provision essential to the commercial purpose of this Agreement is held to
be illegal, invalid or unenforceable and cannot be replaced by a valid provision
which will implement the commercial intent of this Agreement, the Party(ies)
who is the beneficiary of such illegal, invalid or unenforceable provision has
the right to terminate this Agreement upon written notice, effective upon
receipt, to the other Parties.

 

12.12      Notices.  Any
notice required or permitted to be given under this Agreement shall be in
writing, shall specifically refer to this Agreement and shall be deemed to have
been sufficiently given and received for all purposes (a) upon personal
delivery to the appropriate address, (b) five (5) days after the date
of mailing when sent first class certified or registered mail, postage prepaid,
(c) three (3) business days after sending by internationally
recognized express delivery service, or (d) one (1) business day
after facsimile transmission to the appropriate number(s) below, with
transmission confirmed by the recipient. Unless otherwise specified in writing
in accordance with this Section 12.12, the mailing addresses and facsimile
numbers of the Parties shall be as set forth below.

 

	
   

  	
  For
  Acorda:

  	
   

  	
  Acorda
  Therapeutics, Inc.

  
	
   

  	
   

  	
   

  	
  15
  Skyline Drive

  
	
   

  	
   

  	
   

  	
  Hawthorne,
  New York 10532 USA

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Harold
  Safferstein, Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
  Business
  Development

  
	
   

  	
   

  	
   

  	
  Fax
  Number:

  	
  (914)
  347-4560

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  For
  CUTS:

  	
   

  	
  Cambridge
  University Technical Services Limited

  
	
   

  	
   

  	
   

  	
  c/o
  Research Services Division

  
	
   

  	
   

  	
   

  	
  University
  of Cambridge

  
	
   

  	
   

  	
   

  	
  16
  Mill Lane

  
	
   

  	
   

  	
   

  	
  Cambridge
  CB2 1SB, UK

  
	
   

  	
   

  	
   

  	
  Attention:
  Director

  
	
   

  	
   

  	
   

  	
  Fax
  Number: +44 (0)12 2333 2988

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  For KCL:

  	
   

  	
  King’s
  College London

  
	
   

  	
   

  	
   

  	
  KCL
  Enterprises Ltd

  
	
   

  	
   

  	
   

  	
  James
  Clerk Maxwell Building

  
	
   

  	
   

  	
   

  	
  57
  Waterloo Road

  
	
   

  	
   

  	
   

  	
  London,
  SEI 8WA, UK

  

 

27

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

	
   

  	
   

  	
  Attention:
  Director of Technology Transfer

  
	
   

  	
   

  	
  Fax
  Number: +44 (0)20 7848 3320

  

 

12.13      Force Majeure.  Any delays in, or failure of
performance of any Party to this Agreement, shall not constitute a default
hereunder, or give rise to any claim for damages, if and to the extent caused
by occurrences beyond the control of the Party affected; including, but not limited
to, acts of God, acts of terrorism, strikes or other concerted acts of workmen,
civil disturbances, fires, floods, earthquakes, explosions, riots, war, rebellion,
sabotage, acts of governmental authority or failure of governmental authority
to issue licenses or approvals which may be required. The Party suffering such
occurrence shall immediately notify the other Parties as soon as practicable
and any time for performance hereunder shall be extended by the actual time of
delay caused by the occurrence, provided that the Party affected by such
occurrence uses reasonable efforts to overcome or avoid such delay.

 

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

 

12.15      Headings.  The
headings appearing in this Agreement have been inserted for convenience of
reference only and shall not affect the construction, meaning or interpretation
of this Agreement or any of its terms and conditions.

 

12.16      No Waiver.  The
failure by any Party, at any time, or for any period of time, to enforce any of
the provisions of this Agreement, shall not be construed as a waiver of such provisions
or as a waiver of any Party’s rights thereafter to enforce each and every such provision
of this Agreement.

 

12.17      Construction.  This
Agreement has been prepared jointly by all Parties and shall not be strictly
construed against any Party.

 

12.18      Counterparts. This Agreement may be executed in one (1) or
more counterparts, each of which shall be deemed an original, but all of which
shall constitute one (1) and the same instrument.

 

[Signature Page Follows]

 

28

 

Certain
portions of this Exhibit have been omitted pursuant to a request for
confidentiality.  Such omitted portions,
which are marked with brackets [   ] and
an asterisk*, have been separately filed with the Commission.

 

 

IN WITNESS WHEREOF, Acorda, CUTS and KCL have caused this
Agreement to be executed as of the Effective Date by their duly authorized
representatives below.

 

	
  ACORDA
  THERAPEUTICS, INC.

  	
   

  	
  CAMBRIDGE
  UNIVERSITY TECHNICAL

  
	
   

  	
   

  	
  SERVICES
  LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Hank Safferstein

  	
   

  	
  By:

  	
   
  /s/ R. C. Jennings

  	
   

  
	
  Print
  Name:

  	
   Hank Safferstein

  	
   

  	
  Print
  Name:

  	
  DR.
  R. C. Jennings

  	
   

  
	
  Title:

  	
    V.P. Business Dev.

  	
   

  	
  Title:

  	
    DIRECTOR

  	
   

  
										

 

 

KING’S COLLEGE LONDON

 

 

	
  By:

  	
    /s/ SUSAN SMITH

  	
   

  
	
  Print
  Name:

  	
  SUSAN SMITH

  	
   

  
	
  Title:

  	
  DIRECTOR OF TECHNOLOGY TRANSFER

  	
   

  
					

 

29

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