Document:

EXECUTION
        COPY

       

       

    

    

    LICENSE
      AGREEMENT

     

    

    between

    

    

    VITAE
      PHARMACEUTICALS, INC.

    

    

    and

    

    

    QUEST
      GROUP INTERNATIONAL, INC.

     

    

    May
      11,
      2007

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      TABLE
        OF CONTENTS

       

      
        
          	 	 	 	 	
                  Page

                	 
	 	 	 	 	 	 
	
                  1.

                	 	 	
                  DEFINITIONS

                	 	 	
                  2

                	 
	 	 	 	 	 	 	 	 
	
                  2.

                	 	 	
                  GRANT

                	 	 	
                  8

                	 
	 	 	 	 	 	 	 	 
	
                  3.

                	 	 	
                  TECHNOLOGY
                    TRANSFER AND INVENTORIES

                	 	 	
                  9

                	 
	 	 	 	 	 	 	 	 
	
                  4.

                	 	 	
                  PAYMENTS
                    AND ROYALTIES

                	 	 	
                  9

                	 
	 	 	 	 	 	 	 	 
	
                  5.

                	 	 	
                  DEVELOPMENT
                    AND COMMERCIALIZATION

                	 	 	
                  13

                	 
	 	 	 	 	 	 	 	 
	
                  6.

                	 	 	
                  MANUFACTURING
                    AND SUPPLY

                	 	 	
                  14

                	 
	 	 	 	 	 	 	 	 
	
                  7.

                	 	 	
                  CONFIDENTIALITY

                	 	 	
                  15

                	 
	 	 	 	 	 	 	 	 
	
                  8.

                	 	 	
                  PATENT
                    PROSECUTION AND LITIGATION

                	 	 	
                  16

                	 
	 	 	 	 	 	 	 	 
	
                  9.

                	 	 	
                  TRADEMARKS

                	 	 	
                  18

                	 
	 	 	 	 	 	 	 	 
	
                  10.

                	 	 	
                  RECORDS
                    AND REPORTING

                	 	 	
                  18

                	 
	 	 	 	 	 	 	 	 
	
                  11.

                	 	 	
                  TERM
                    AND TERMINATION

                	 	 	
                  19

                	 
	 	 	 	 	 	 	 	 
	
                  12.

                	 	 	
                  WARRANTIES,
                    REPRESENTATIONS AND INDEMNIFICATIONS

                	 	 	
                  22

                	 
	 	 	 	 	 	 	 	 
	
                  13.

                	 	 	
                  GENERAL
                    PROVISIONS

                	 	 	
                  24

                	 
	 	 	 	
                   

                	 	 	 	 
	
                	 	 	
                  APPENDIX
                    A - ALLERGAN PATENTS

                	 	 	
                  A-1

                	 
	 	 	 	 	 	 	 	 
	
                	 	 	
                  APPENDIX
                    B - EXCLUDED PATENTS

                	 	 	
                  B-1

                	 
	 	 	 	 	 	 	 	 
	
                	 	 	
                  APPENDIX
                    C - VITAE RETINOID PATENTS

                	 	 	
                  C-1

                	 
	 	 	 	 	 	 	 	 
	
                	 	 	
                  APPENDIX
                    D - [* * *] INVENTORY

                	 	 	
                  D-1

                	 
	 	 	 	 	 	 	 	 
	
                	 	 	
                  APPENDIX
                    E - EXEMPLARY EXCLUDED COMPOUNDS

                	 	 	
                  E-1

                	 
	 	 	 	 	 	 	 	 
	
                	 	 	
                  APPENDIX
                    F - ALLERGAN AGREEMENT

                	 	 	
                  F-1

                	 

        

      

       

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

    

     

    
      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and 

      was
        filed separately with the Securities and Exchange
        Commission.

    

    LICENSE
      AGREEMENT

     

    THIS
      LICENSE AGREEMENT (hereinafter, this “AGREEMENT”), is entered into as of the
      11th day of May 2007 (the “EFFECTIVE DATE”), between Vitae Pharmaceuticals, Inc.
      (formerly known as “Concurrent Pharmaceuticals, Inc.”), a Delaware corporation
      having a principal place of business at 502 West Office Center Drive, Fort
      Washington, PA 19034 (hereinafter, “VITAE”) and Quest Group International, Inc.,
      a Nevada corporation having its principal place of business at 967 West Center,
      Orem, UT 84057 (hereinafter “QUEST”).

     

    RECITALS

     

    WHEREAS,
      VITAE is a party to the Master Technology Ownership and License Agreement,
      dated
      May 10, 2004, by and among Allergan, Inc. and Allergan Sales, LLC, on the one
      hand (collectively, “ALLERGAN”), and VITAE, on the other hand, as amended by the
      letter agreement, dated December 15, 2006, among ALLERGAN and VITAE (as so
      amended, the “ALLERGAN AGREEMENT”); 

     

    WHEREAS,
      by virtue of the ALLERGAN AGREEMENT, VITAE is the exclusive licensee of all
      right, title and interest in certain patents (identified in Appendix A hereto)
      relating to certain retinoid and rexinoid compounds, including the compounds
      designated [* * *] (hereinafter, the “ALLERGAN PATENTS”); 

     

    WHEREAS,
      VITAE is the assignee and owner of all right, title and interest to certain
      patents relating to methods of using retinoid compounds (hereinafter, the “VITAE
      RETINOID PATENTS”); 

     

    WHEREAS,
      VITAE is the owner of all right, title and interest in know-how, data and other
      confidential information relating to certain compounds from the Allergan
      retinoid library (hereinafter, the “TRANSFERRED COMPOUNDS”) (as defined in
      Section 1.51);

     

    WHEREAS,
      the TRANSFERRED COMPOUNDS include [* * *], and VITAE wishes to retain all rights
      to the EXCLUDED COMPOUNDS (as defined in Section 1.16);

     

    WHEREAS,
      Allergan, Inc., Allergan Ligand Retinoid Therapeutics, Inc. and Ligand
      Pharmaceuticals Incorporated (hereinafter, “LIGAND”) are parties to an Amended
      and Restated Technology Cross-License Agreement, dated September 24, 1997
      (hereinafter, the “LIGAND AGREEMENT”);

     

    WHEREAS,
      by virtue of the LIGAND AGREEMENT, Allergan, Inc. is the exclusive, even as
      to
      LIGAND, licensee of certain patents owned by LIGAND, and by virtue of the
      ALLERGAN AGREEMENT, VITAE is an exclusive sublicensee of such
      patents;

     

    WHEREAS,
      VITAE is the owner of all right, title and interest to retinoid/rexinoid
      compound library, drug substance, drug product, clinical and other data, and
      know-how relating to the TRANSFERRED COMPOUNDS, including all backups, analogs,
      metabolites, isomers and enantiomers thereof; and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    WHEREAS,
      QUEST desires to obtain an exclusive license from VITAE to develop and
      commercialize the TRANSFERRED COMPOUNDS other than the EXCLUDED COMPOUNDS under
      the aforesaid patents and know-how, and VITAE is willing to grant to QUEST
      such
      a license;

     

    NOW,
      THEREFORE, in consideration of the covenants and promises expressed herein,
      intending to be legally bound, the parties agree as follows:

     

    1.  DEFINITIONS

     

    When
      used
      herein, the following capitalized terms shall have the meanings
      indicated:

     

    1.01  “AAA”
      shall mean the American Arbitration Association.

     

    1.02  “ALLERGAN
      AGREEMENT” shall have the meaning ascribed in the Recitals. A copy of the
      ALLERGAN AGREEMENT is attached hereto as Appendix F.

     

    1.03  “ALLERGAN
      COMPOUNDS” shall mean the TRANSFERRED COMPOUNDS other than the EXCLUDED
      COMPOUNDS.

     

    1.04  “ALLERGAN
      PATENTS” shall mean those patents and patent applications, identified on
      Appendix A hereto, licensed to VITAE pursuant to the ALLERGAN AGREEMENT.
      For clarity, the ALLERGAN PATENTS do not include the EXCLUDED
      PATENTS.

     

    1.05  “AFFILIATE”
      shall mean any company or other entity controlled by, controlling, or under
      common control with a party to this AGREEMENT. For purposes of this definition,
      “control” shall mean direct or indirect ownership of fifty percent (50%) or more
      of the voting stock or profit interest in a company or entity.

     

    1.06  “ARBITRATOR”
      shall have the meaning ascribed in Section 13.03.

     

    1.07  "CHANGE
      IN CONTROL" of VITAE means the occurrence of any of the following: (i) a sale
      of
      assets representing more than fifty percent (50%) of the net book value or
      fair
      market value of VITAE's consolidated assets (in a single transaction or in
      a
      series of related transactions) other than to an AFFILIATE of VITAE; (ii) a
      merger or consolidation of VITAE with a third party, whether or not VITAE or
      the
      THIRD PARTY is the surviving entity; or (iii) an acquisition, other than in
      a
      merger or consolidation of the type referred to in clause (ii), of beneficial
      ownership of outstanding voting securities of VITAE representing at least fifty
      percent (50%) of the combined voting power of VITAE or otherwise giving the
      acquirer the authority to appoint a majority of directors on VITAE’s Board,
      whether such acquisition is effectuated in a single transaction or series of
      related transactions.

     

    1.08  “COMBINATION
      PRODUCT” shall mean a product that contains or uses a LICENSED PRODUCT and at
      least one other PRODUCT COMPONENT, or a LICENSED PRODUCT sold in combination
      with a PRODUCT COMPONENT even if not co-formulated with such other PRODUCT
      COMPONENT.

     

    
      
         

      

      
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    1.09  “COMMERCIALLY
      REASONABLE EFFORTS” of a party shall mean the carrying out of obligations in a
      manner consistent with efforts that such party would devote to a product of
      similar market potential and strategic value resulting from its own research
      efforts, but in no event shall such efforts be less than what a pharmaceutical
      company of similar size and resources would devote to a product of similar
      market potential and strategic value.

     

    1.10  “COVER”
      or “COVERING” shall mean, with respect to a patent or patent application, that
      at least one claim would be infringed by the product, method or device, as
      applicable.

     

    1.11  “CYTOCHROMA
      AGREEMENT” shall mean the Collaborative Research, Development and License
      Agreement between Allergan, Inc. and Cytochroma, Inc., dated May 31, 1999,
      as
      amended on June 25, 2001.

     

    1.12  ‘DEBLOCKING
      LICENSE” shall have the meaning ascribed in Section 2.01.

     

    1.13  “DEVELOPMENT”
      shall mean those activities undertaken with respect to a LICENSED PRODUCT which
      are devoted to the exploration of a potential pharmaceutical product in human
      clinical trials and/or the conduct of any other studies, including clinical
      trials, regulatory affairs and other activities directed toward REGULATORY
      APPROVAL of such LICENSED PRODUCT.

     

    1.14  “DISPUTE”
shall
      have the meaning ascribed in Section 13.03.

     

    1.15  “EFFECTIVE
      DATE” shall have the meaning ascribed in the introductory paragraph
      hereof.

     

    1.16  “EXCLUDED
      COMPOUNDS” shall mean any compounds COVERED by the EXCLUDED PATENTS or [* * *];
      for clarity, EXCLUDED COMPOUNDS include [* * *]. A list of certain EXCLUDED
      COMPOUNDS is provided in Appendix E attached hereto.

     

    1.17  “EXCLUDED
      PATENTS” shall mean those patents and patent applications, identified in
      Appendix B hereto, licensed to VITAE pursuant to the ALLERGAN AGREEMENT
      that are excluded from the LICENSED PATENTS under this AGREEMENT.

     

    1.18  “EXISTING
      LICENSORS” shall mean ALLERGAN and LIGAND.

     

    1.19  “FDA”
      shall mean the United States Food and Drug Administration or its successor
      entity.

     

    1.20  “FIELD”
      shall mean all human or veterinary use, subject only to the retained rights
      of
      the EXISTING LICENSORS under the ALLERGAN AGREEMENT and LIGAND
      AGREEMENT.

     

    1.21  “FIRST
      COMMERCIAL SALE” of a LICENSED PRODUCT shall mean the first sale for use or
      consumption of such LICENSED PRODUCT to a THIRD PARTY in a country after
      REGULATORY APPROVAL has been granted by the governing health regulatory
      authority of such country. Sale to or consumption by an AFFILIATE or permitted
      sublicense shall not constitute a FIRST COMMERCIAL SALE unless the AFFILIATE
      or
      permitted sublicense is the end user of the LICENSED PRODUCT.

     

    
      
         

      

      
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    1.22  “FOUNDING
      SHAREHOLDERS” shall have the meaning ascribed in Section 4.03.

     

    1.23  “GENERIC
      COMPETITION” shall have the meaning ascribed in Section 4.04(f).

     

    1.24  “GENERIC
      PRODUCT” shall mean with respect to a LICENSED PRODUCT any pharmaceutical
      product (other than such LICENSED PRODUCT) that contains the same active
      ingredient(s) as such LICENSED PRODUCT, has substantially the same formulation,
      mode of administration and duration of release as such LICENSED PRODUCT, and
      is
      approved for the same indications as such LICENSED PRODUCT.

     

    1.25  “IND”
      shall mean an Investigational New Drug Application filed with the FDA, or the
      equivalent application or filing necessary to commence human clinical trials
      in
      a country other than the USA, as applicable.

     

    1.26  “IND
      APPROVAL” shall mean the acceptance of an IND by the FDA for clinical
      testing.

     

    1.27  “INITIATION”
      shall mean, with respect to a clinical trial, the date that the first patient
      is
      dosed in such clinical trial.

     

    1.28  “INVENTORY”
      has the meaning ascribed in Section 3.02.

     

    1.29  “LICENSED
      COMPOUNDS” shall mean the ALLERGAN COMPOUNDS and any compounds for which
      royalties would be due to ALLERGAN or LIGAND under the ALLERGAN AGREEMENT or
      LIGAND AGREEMENT respectively, other than the EXCLUDED COMPOUNDS.

     

    1.30  “LICENSED
      KNOW-HOW” shall mean all technical information and know-how which relates to a
      LICENSED PRODUCT which is owned by VITAE or its AFFILIATES as of the EFFECTIVE
      DATE, and to which VITAE or its AFFILIATES otherwise has, as of the EFFECTIVE
      DATE, the right to grant rights or licenses, and shall include, without
      limitation, all biological, chemical, pharmacological, toxicological, clinical,
      assay, control, formulation and manufacturing data and any other information
      relating to a LICENSED PRODUCT and useful for the research, development,
      manufacture, and commercialization of a LICENSED PRODUCT, including, without
      limitation, all such information and know-how relating to each EXISTING
      IND.

     

    1.31  “LICENSED
      PATENTS” shall mean all patents and patent applications, including any
      continuations, continuations-in-part, divisionals, reissues, reexamination
      certificates, and/or SPCs, owned or controlled by VITAE or its AFFILIATES as
      of
      the EFFECTIVE DATE, or to which VITAE or its AFFILIATES otherwise has, as of
      the
      EFFECTIVE DATE, the right to grant rights or licenses, that COVER (i) the
      manufacture, use, import, export, development of, marketing, distribution,
      offer
      for sale, sale or other disposition of a LICENSED PRODUCT, or (ii) any processes
      or intermediates necessary for the manufacture, use, import, export, research,
      development, marketing, distribution, offer for sale, sale or other disposition
      of a LICENSED PRODUCT. For clarity, the LICENSED PATENTS include, without
      limitation, the ALLERGAN PATENTS, the LIGAND PATENTS and the VITAE RETINOID
      PATENTS.

     

    
      
         

      

      
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    1.32  “LICENSED
      PRODUCT” shall mean any pharmaceutical product (in any form, strength or package
      size) containing one or more LICENSED COMPOUNDS as an active
      ingredient.

     

    1.33  “LIGAND
      AGREEMENT” shall have the meaning ascribed in the Recitals.

     

    1.34  “LIGAND
      PATENTS” shall mean those patents and patent applications licensed to ALLERGAN
      pursuant to the LIGAND AGREEMENT and sublicensed to VITAE pursuant to the
      ALLERGAN AGREEMENT. A list of the LIGAND PATENTS is provided in Exhibit B-2
      of
      the ALLERGAN AGREEMENT.

     

    1.35  “LOW
      ROYALTY PRODUCT” shall have the meaning set forth in section 5.1(b) of the
      ALLERGAN AGREEMENT.

     

    1.36  “NDA”
      shall mean a New Drug Application filed with the FDA, or the equivalent
      community application filed in the European Union, or the equivalent application
      filed as a national application.

     

    1.37  “NDA
      ACCEPTANCE” shall mean the earlier of (i) receipt by QUEST of written notice of
      acceptance from the FDA of an NDA filed by or on behalf of QUEST under this
      AGREEMENT necessary for commercialization of LICENSED PRODUCT in the USA, or
      (ii) sixty (60) days following filing of such NDA with the FDA, assuming QUEST
      has not received a “Notice of Refusal to File” from the FDA with respect to such
      NDA.

     

    1.38  “NET
      SALES” shall mean the total consideration, including the gross amount invoiced
      or received from THIRD PARTIES by QUEST, its AFFILIATES and its permitted
      sublicensees for all LICENSED PRODUCTS (including any COMBINATION PRODUCTS)
      sold, after deduction for the following items (i) trade, quantity and cash
      discounts or rebates actually allowed, paid or taken; (ii) credits, rebates,
      charge-back rebates, reimbursements or similar payments actually granted or
      given to wholesalers and other distributors, buying groups, health care
      insurance carriers, governmental agencies and other institutions; (iii) credits
      or allowances actually granted or given for rejection or return of such LICENSED
      PRODUCT previously sold; (iv) any tax, tariff, duty or other governmental charge
      (other than an income tax) levied on the sale, transportation or delivery of
      LICENSED PRODUCT and actually borne by QUEST; (v) payments or rebates actually
      paid in connection with state or federal Medicare, Medicaid or similar programs;
      and (vi) any charge for freight or insurance actually borne by QUEST to the
      extent included in the gross amount invoiced. All such NET SALES shall be
      determined in accordance with U.S. Generally Accepted Accounting Principles
      (“GAAP”). NET SALES shall include the fair market value of all consideration
      received by QUEST, its AFFILIATES and its permitted sublicensees, whether such
      consideration is in the form of cash, barter or counter-trade.

     

    
      
         

      

      
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    1.39  “PHASE
      II
      CLINICAL TRIAL” shall mean those tests and studies (as more fully defined in 21
      CFR § 312.21(b)) of a LICENSED PRODUCT that the FDA requires to be performed on
      a sufficient number of patients to generate sufficient data to establish the
      safety, dose ranging and biological activity of that LICENSED PRODUCT for its
      intended use and to permit commencement of a PHASE III CLINICAL
      TRIAL.

     

    1.40  “PHASE
      III CLINICAL TRIAL” shall mean those tests and studies (as more fully defined in
      21 CFR § 312.21(c)) of a LICENSED PRODUCT that the FDA requires to be performed
      on sufficient numbers of patients designed to establish the safety and efficacy
      of such LICENSED PRODUCT for obtaining REGULATORY APPROVAL with the desired
      claims and for the desired indications. 

     

    1.41  “PRIMARY
      INDICATIONS” shall mean [* * *].

     

    1.42  “PRIVATE
      PLACEMENT” shall have the meaning ascribed in Section 4.03.

     

    1.43  “PRODUCT
      COMPONENT” shall mean one or more products that (i) are not themselves a
      LICENSED PRODUCT; (ii) when combined with a LICENSED PRODUCT, the market value
      of such combined product is materially higher than the market value for such
      LICENSED PRODUCT (if sold separately) as a result of such combined product
      containing or using such PRODUCT COMPONENT; and (iii) is a separate functional
      device or active ingredient. For clarity, the term “PRODUCT COMPONENT” shall not
      include excipients, buffers or other similar substances that are typically
      formulated with the drug product contained in the LICENSED PRODUCT to form
      the
      final product for sale, nor standard, off-the-shelf components to delivery
      devices such as syringes, but may include specialized drug delivery devices,
      other active drug substances or other proprietary materials intended to deliver
      the drug contained in the LICENSED PRODUCT.

     

    1.44  “PRODUCT
      TRADEMARKS” shall mean any word, phrase, slogan, design, symbol or product
      packaging used or intended to be used to identify a LICENSED PRODUCT or
      distinguish them from competitive or related products, including any registered
      trademark, common law trademark, trademark application (whether a use
      application or an intent-to-use application) and trade dress.

     

    1.45  “QUEST
      KNOW-HOW” shall mean all present and future technical information and know-how
      which relates to a LICENSED PRODUCT which is or becomes owned by QUEST, or
      to
      which QUEST otherwise has, now or in the future, the right to grant licenses
      and
      shall include, without limitation, all biological, chemical, pharmacological,
      toxicological, clinical, assay, control, formulation and manufacturing data
      and
      any other information relating to a LICENSED PRODUCT and useful for the
      development, manufacture, and commercialization of a LICENSED
      PRODUCT.

     

    1.46  “QUEST
      PATENTS” shall mean all patents and patent applications which are or become
      owned by QUEST, or to which QUEST otherwise has, now or in the future during
      the
      term of this AGREEMENT, the right to grant licenses, which generically or
      specifically claim a LICENSED PRODUCT, a process for manufacturing LICENSED
      PRODUCT, an intermediate used in such process, a process for manufacturing
      such
      an intermediate, a use of LICENSED PRODUCT, a method of using LICENSED PRODUCT,
      or a composition or formulation comprising LICENSED PRODUCT (including any
      COMBINATION PRODUCTS). Included within the definition of QUEST PATENTS are
      all
      continuations, continuations-in-part, divisions, patents of addition, patents
      of
      importation, reissues, pipeline cases, registrations, revalidations, renewals
      and extensions thereof, all SPCs, all utility models, and all rights equivalent
      or similar to any of the foregoing, including all such rights applied for after
      the EFFECTIVE DATE. Also included within the definition of QUEST PATENTS are
      any
      patents or patent applications which generically or specifically claim any
      improvements of LICENSED PRODUCT (e.g., improvements related to the essential
      technical features of LICENSED PRODUCT, including essential chemical structural
      features, an intermediate, a use of LICENSED PRODUCT, a method of using LICENSED
      PRODUCT, or a composition or formulation comprising LICENSED PRODUCT),
      intermediates or manufacturing processes required or useful for production
      of
      LICENSED PRODUCT, uses of LICENSED PRODUCT, methods of using LICENSED PRODUCT,
      or compositions or formulations comprising LICENSED PRODUCT (including any
      COMBINATION PRODUCTS) which are developed by QUEST, or which QUEST otherwise
      has
      the right to grant licenses, now or in the future, during the term of this
      AGREEMENT. 

     

    
      
         

      

      
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    1.47  “REGULATORY
      APPROVAL” shall mean all approvals, licenses, registrations or authorizations of
      any country, federal, state or local regulatory agency, department, bureau
      or
      other government entity that are necessary for the manufacture, use, storage,
      import, transport and/or sale of a LICENSED PRODUCT in a given
      jurisdiction.

     

    1.48  “SPC”
      shall mean a right based upon a LICENSED PATENT or QUEST PATENT (depending
      upon
      context) to exclude others from making, using or selling LICENSED PRODUCTS,
      such
      as a Supplementary Protection Certificate.

     

    1.49  “TERRITORY”
shall
      mean all the countries and territories of the world.

     

    1.50  “THIRD
      PARTY” shall mean any party other than the EXISTING LICENSORS, QUEST, VITAE and
      their respective AFFILIATES.

     

    1.51  “TRANSFERRED
      COMPOUNDS” shall have the meaning ascribed in Article 1 of the ALLERGAN
      AGREEMENT.

     

    1.52  “USA”
      shall mean the United States of America, including all of its territories and
      possessions.

     

    1.53  “VALID
      CLAIM” shall mean any claim issued in an unexpired patent (or pending in an
      unabandoned patent application if such claim has not been pending for more
      than
      seven (7) years and QUEST has diligently prosecuted such claim with the
      objective of obtaining prompt allowance of such claim) which has not been held
      unenforceable, unpatentable or invalid by a decision of a court or other
      governmental agency of competent jurisdiction following exhaustion of all
      possible appeal processes, and which has not been admitted to be invalid or
      unenforceable through reissue, reexamination or disclaimer.

     

    
      
         

      

      
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    1.54  “VITAE
      RETINOID PATENTS” shall mean the patent applications owned directly by VITAE
      that COVER methods of using certain ALLERGAN COMPOUNDS, as listed in Appendix
      C.

     

    1.55  “VITAE
      SHARES” shall have the meaning ascribed in Section 4.03.

     

    2.  GRANT

     

    2.01  VITAE
      hereby grants to QUEST an exclusive (even as to VITAE) license, with the right
      to grant sublicenses, under LICENSED PATENTS and LICENSED KNOW-HOW to conduct
      research in the FIELD, develop, make, have made, use, sell, offer for sale,
      and
      import LICENSED PRODUCT, in the TERRITORY, in the FIELD, subject to the terms
      and conditions of this AGREEMENT and subject to any retained rights by the
      EXISTING LICENSORS pursuant to the ALLERGAN AGREEMENT and the LIGAND AGREEMENT.
      VITAE shall also grant to QUEST a non-exclusive, royalty free license to any
      patents (other than LICENSED PATENTS) COVERING a LICENSED PRODUCT where such
      patent was filed by and is owned by VITAE or its AFFILIATE (other than an entity
      which became an AFFILIATE through a CHANGE IN CONTROL of VITAE) and where such
      license is necessary for DEVELOPMENT or commercialization of such LICENSED
      PRODUCT in the jurisdiction in which such patent was granted (hereinafter,
      referred to as a “DEBLOCKING LICENSE”).
      VITAE or
      its acquirer or successor-in-interest in a merger shall not be required to
      grant
      to QUEST a DEBLOCKING LICENSE where the patent-at-issue was owned by the
      acquirer or merger partner prior to the acquisition or merger.

     

    2.02  Limitations
      on VITAE.
      [*
      *
      *].

     

    2.03  QUEST
      may
      grant sublicenses under the LICENSED PATENTS and LICENSED KNOW-HOW to its
      AFFILIATES and THIRD PARTIES (including, without limitation, the right of those
      AFFILIATES and THIRD PARTIES to grant further sublicenses); provided, that
      any
      such sublicense shall be subject to and consistent in all material respects
      with
      the material terms and provisions of this AGREEMENT. Within ten (10) days of
      the
      effective date of each sublicense granted by QUEST or its AFFILIATES, QUEST
      shall provide VITAE with a copy of such sublicense, with redactions for
      provisions that do not pertain to the licensed rights granted hereunder. Within
      ten (10) days of the effective date of each sublicense granted by VITAE’s or its
      AFFILIATES’ sublicenses to a further sublicensee, QUEST shall provide VITAE with
      notice of the identity of each further sublicensee, a summary of each such
      sublicense (such summary to include the scope and restrictions of the
      sublicensed rights, the term of the sublicensed rights, confirmation that the
      reporting, audit and indemnification obligations are consistent with the
      requirements of this AGREEMENT, evidence that the definition of net sales in
      such sublicense is consistent with the definition of NET SALES in this
      AGREEMENT. The performance or satisfaction of any obligation of QUEST under
      this
      AGREEMENT by any of its AFFILIATES or sublicensees shall be deemed performance
      or satisfaction of such obligation by QUEST. In no event, however, shall any
      such sublicense relieve QUEST of its obligations hereunder. In the event of
      any
      termination of this AGREEMENT, all sublicenses hereunder shall be assigned
      to
      VITAE, and VITAE agrees to accept such assignment; provided, such sublicense
      is
      not then in breach of its sublicense agreement and its sublicense agreement
      is
      consistent with the provisions hereof; and provided further, in the case where
      such sublicense would include obligations to be performed by VITAE, that the
      foregoing assignment shall be subject to VITAE’s consent, such consent not to be
      unreasonably withheld.

     

    
      
         

      

      
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    3.  TECHNOLOGY
      TRANSFER AND INVENTORIES

     

    3.01  Within
      sixty (60) days after the EFFECTIVE DATE, VITAE shall transfer the LICENSED
      KNOW-HOW, including without limitation the LICENSED KNOW-HOW relating to the
      manufacture and DEVELOPMENT of [* * *], subject to QUEST’s reimbursement of
      VITAE’s documented, reasonable out-of-pocket expenses, including reasonable
      travel expenses, if any, necessary to accomplish the transfer. VITAE shall
      within ten (10) business days after the Effective Date, provide copies of all
      regulatory dossiers to QUEST. 

     

    3.02  As
      soon
      as is practicable, and in any event within thirty (30) days, after the EFFECTIVE
      DATE, VITAE shall transfer title to QUEST of all inventories and supplies in
      VITAE’s or its AFFILIATES’ possession, or in possession by THIRD PARTIES under
      VITAE’s or its AFFILIATES’ control, of LICENSED COMPOUNDS, intermediates used to
      manufacture LICENSED COMPOUNDS, and other materials useful for the DEVELOPMENT
      or manufacture of LICENSED PRODUCT (the “INVENTORY”), subject to QUEST’s payment
      obligation under Section 4.02. Appendix D lists VITAE’s inventory of drug
      substance and drug product for [* * *]. The information in Appendix D is
      believed to be accurate as of the EFFECTIVE DATE based on VITAE’s knowledge.
      However, QUEST acknowledges and agrees that the information may be inaccurate
      and there shall be no adjustment to the inventory payment (or any other payment)
      due to VITAE in the event that the information in Appendix D is later determined
      to be inaccurate.

     

    3.03  Notwithstanding
      the above, QUEST acknowledges that the transfer of the compound library and
      certain electronic databases may take longer than sixty (60) days because of
      technical difficulties in segregating EXCLUDED COMPOUNDS from the compound
      library and the electronic databases. VITAE shall use its best efforts to
      transfer the compound library and the electronic databases
      promptly.

     

    4.  PAYMENTS
      AND ROYALTIES

     

    4.01  Upfront
      Payment.
      In
      consideration for the acquisition of license rights under LICENSED PATENTS
      and
      LICENSED KNOW-HOW granted to QUEST in this AGREEMENT, upon execution of this
      AGREEMENT, QUEST
      shall pay VITAE two million one hundred thousand dollars ($2,100,000). This
      payment shall be made by wire transfer to an account to be designated by
      VITAE.

     

    4.02  Inventory
      Payment.
      Within
      thirty (30) days of transfer and delivery of the INVENTORY under Section 3.02,
      QUEST shall pay VITAE fifty
      thousand dollars ($50,000).
      QUEST
      also shall bear, or reimburse VITAE, as the case may be, the reasonable cost
      of
      shipping and handling relating to transfer of the INVENTORY. This payment shall
      be made promptly by wire transfer to an account to be designated by
      VITAE.

     

    4.03  Equity
      Milestone Payment.
      QUEST
      shall issue to VITAE six million six hundred fifty thousand six hundred
      fifty-two (6,650,652) shares of common stock of QUEST (the “VITAE SHARES”) upon
      the first to occur of the following milestone events:[ * * *]. The number of
      shares of QUEST common stock issued to VITAE shall equal 5.66% of the shares
      of
      QUEST common stock outstanding as of the EFFECTIVE DATE as determined on a
      fully
      diluted basis (counting the VITAE SHARES as outstanding shares. QUEST represents
      and warrants that the capitalization table provided by QUEST to VITAE are
      complete and accurate as of the EFFECTIVE DATE, and agrees that if there are
      any
      errors in QUEST’s favor, then QUEST shall issue additional sufficient shares to
      VITAE to result in VITAE receiving 5.66% of the shares of QUEST common stock
      outstanding as of the EFFECTIVE DATE. In the event that at any time after the
      EFFECTIVE DATE until the issuance of the VITAE SHARES, the number of shares
      of
      QUEST common stock outstanding on a fully diluted basis is increased, whether
      by
      way of a stock split, stock dividend or otherwise, the number of VITAE SHARES
      to
      be issued upon achievement of the above milestone shall be adjusted upward
      proportionately. VITAE shall have the same benefits and obligations with respect
      to the VITAE SHARES as the FOUNDING SHAREHOLDERS (as hereinafter
      defined),including [* * *]. “FOUNDING SHAREHOLDERS” means Santa Monica Capital
      Partners II, LLC, Parkash Gill, Ph.D., and the other shareholders of QUEST
      as of
      the EFFECTIVE DATE. For clarity, the FOUNDING SHAREHOLDERS include all of the
      persons and entities listed as investors in the “First Funding” on the Form 8-K
      filed by QUEST on April 27, 2007. For further clarity, the FOUNDING SHAREHOLDERS
      do not include the investors in the PRIVATE PLACEMENT. For further clarity,
      only
      one equity milestone payment shall be payable to VITAE, and the milestone
      payment shall be triggered whether the LICENSED PRODUCT involved is a single
      agent product or as a COMBINATION PRODUCT that incorporates one of the
      above-identified LICENSED COMPOUNDS. QUEST shall use commercially reasonable
      efforts to achieve at least one of the above milestones. Upon issuance to VITAE
      of QUEST common stock pursuant to this Section 4.03,
      and as
      a condition thereto, VITAE shall execute and deliver to QUEST an appropriate
      form investment representation letter with respect to such common
      stock.

     

    
      
         

      

      
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    4.04  Royalties.
      In
      further consideration for the license under LICENSED PATENTS and LICENSED
      KNOW-HOW granted to QUEST under this AGREEMENT, QUEST shall pay VITAE a royalty
      in accordance with the following schedule based on annual NET
      SALES:

     

    
      	
              LICENSED
                COMPOUND

            	
              ROYALTY
                RATE

            
	
              [*
                * *]

            	
              [*
                * *]%

            
	
              [*
                * *]

            	
              [*
                * *]%

            
	
              [*
                * *]

            	
              [*
                * *]%

            
	
              Other

            	
              See
                below.

            

    

    

    (a)  [*
      *
      *]

     

    (b)  If
      a
      LICENSED PRODUCT contains more than one LICENSED COMPOUND, then the higher
      royalty rate shall apply.

     

    (c)  If
      VITAE
      or QUEST is able to negotiate a lower royalty rate with the EXISTING LICENSORS,
      VITAE and QUEST shall share equally in the benefit of such reduction, except
      if
      QUEST must provide monetary consideration (e.g.,
      cash,
      equity in QUEST or other consideration) to the EXISTING LICENSORS and VITAE
      does
      not contribute equally to the consideration provided. For example, [* *
      *].

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (d)  [*
      *
      *]

     

    (e)  QUEST
      will make royalty payments based on NET SALES, on a country-by-country basis,
      from the date of the FIRST COMMERCIAL SALE in such country until the later
      of
      (i) the expiry of the last-to-expire LICENSED PATENT which has at least one
      VALID CLAIM COVERING the LICENSED PRODUCT in such country (including the term
      of
      any applicable SPC covering such LICENSED PRODUCT), and (ii) [* * *] from
      the date of FIRST COMMERCIAL SALE in such country.

     

    (f)  Reduction
      for Generic Competition.
      The
      royalty payment due to VITAE for sales of a particular LICENSED PRODUCT in
      a
      particular country shall be reduced by [* * *] during any calendar quarter
      in
      which such LICENSED PRODUCT faces GENERIC COMPETITION. GENERIC COMPETITION
      shall
      be deemed to exist in a particular country in the TERRITORY during a given
      calendar quarter with respect to a particular LICENSED PRODUCT if during such
      calendar quarter, one or more GENERIC PRODUCTS were sold commercially in such
      country, and the GENERIC PRODUCTS in the aggregate have a market share of [*
      *
      *] or more in that country (as measured by gross sales revenue based on data
      provided by IMS International, or if such data is not available, such other
      reliable data source as reasonably agreed upon by VITAE and QUEST). If no data
      is commercially available, then the parties shall agree upon a methodology
      for
      estimating the percentage market share of GENERIC PRODUCTS in such
      country.

     

    (g)  For
      clarity, royalties shall be due during any extended or adjusted term of a
      LICENSED PATENT or during the term of any applicable SPC. Even if there is
      no
      LICENSED PATENT in a given country, royalties shall be due for sales in such
      country for ten (10) years from the date of FIRST COMMERCIAL SALE. 

     

    (h)  All
      royalty payments shall be made on a quarterly basis within thirty (30) days
      after the end of each calendar quarter.

     

    4.05  Sublicense
      Revenue.
      QUEST
      shall pay VITAE as provided below a portion of all non-royalty sublicense income
      received from a THIRD PARTY relating to any of the three lead LICENSED
      COMPOUNDS, [* * *], except for payments directly related to research and
      development cost reimbursement. Specifically, if QUEST enters into a license
      agreement or other partnering arrangement with a THIRD PARTY prior to [* *
      *]
      for the LICENSED COMPOUND that is the subject of the licensing agreement or
      partnering arrangement, then QUEST shall pay VITAE [* * *] of all non-royalty
      income. If QUEST enters into a license agreement or other partnering arrangement
      with a THIRD PARTY after [* * *] for the LICENSED COMPOUND that is the subject
      of the licensing agreement or partnering arrangement, then QUEST shall pay
      VITAE
      [* * *] of all non-royalty income.
      For
      clarity, VITAE, and not QUEST, shall be solely and fully liable for any payments
      that may be due to ALLERGAN pursuant to section 5.3 (Sublicense Up-Front
      Consideration) of the ALLERGAN AGREEMENT relating to Sublicense Revenue (as
      that
      term is defined in the ALLERGAN AGREEMENT) payments. VITAE agrees to indemnify,
      defend and hold harmless QUEST with respect to all such payments pursuant to
      section 5.3 of the ALLERGAN AGREEMENT.

     

    
      
         

      

      
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    4.06  Third
      Party License Payments.
      QUEST
      shall be responsible for all royalties and milestone payments to EXISTING
      LICENSORS, as well as for any THIRD PARTY license payments that may be required,
      arising for periods after the EFFECTIVE DATE. For clarity, VITAE shall be
      responsible for any license payments to EXISTING LICENSORS and THIRD PARTIES
      accrued or owing for any period ending on or prior to the EFFECTIVE DATE, and
      VITAE shall have no responsibility or liability for any such license payments
      arising for periods after the EFFECTIVE DATE.

     

    4.07  Late
      Payments.
      Any
      unexcused late payments by QUEST to VITAE hereunder shall accrue interest at
      an
      annual interest rate equal to the average prime rate (as reported in
The
      Wall Street Journal
      or other
      reliable source) from the date the payment was originally due until the actual
      date that the payment was received and credited to VITAE’s account.

     

    4.08  Bundled
      Products.
      In the
      event that a LICENSED PRODUCT is sold as part of a bundle of products and/or
      services, QUEST may discount the bona fide list price of a LICENSED PRODUCT
      by
      no more than the average percentage discount of all products and services in
      a
      particular bundle. QUEST shall not use a LICENSED PRODUCT as a “loss leader.” If
      QUEST cannot establish the average discount of a bundle (e.g., because certain
      products or services included within the bundle are not sold separately), then
      NET SALES for the LICENSED PRODUCT included within the bundle shall be based
      on
      the undiscounted list price of the LICENSED PRODUCT in the bundle. If no bona
      fide list price exists for a LICENSED PRODUCT that is part of the bundle (e.g.,
      because such LICENSED PRODUCT is not sold separately), then the parties shall
      negotiate in good faith to establish an imputed list price for such LICENSED
      PRODUCT, and NET SALES shall be calculated based on such imputed list
      price.

     

    4.09  Combination
      Products.
      NET
      SALES of LICENSED PRODUCTS formulated in combination with one or more additional
      therapeutically active ingredients shall be included in the calculation of
      royalties and milestone payments based on NET SALES of LICENSED PRODUCTS. The
      parties shall agree upon a formula for allocating the portion of NET SALES
      of
      COMBINATION PRODUCT attributable to the LICENSED PRODUCT component of the
      COMBINATION PRODUCT. If the parties are unable to agree upon a formula, then
      the
      following formula shall apply:

     

    (a)  If
      the
      LICENSED PRODUCT and the other PRODUCT COMPONENT both have bona fide commercial
      sales on a stand-alone basis, then the following shall apply: NET SALES of
      LICENSED PRODUCT sold as part of the COMBINATION PRODUCT shall be equal to
      the
      NET SALES of the COMBINATION PRODUCT multiplied by the formula, A/(A+B), where
      “A” is the median selling price of the LICENSED PRODUCT over the previous
      calendar quarter, and “B” is the median selling price of the other PRODUCT
      COMPONENT over the previous calendar quarter.

     

    (b)  If
      the
      LICENSED PRODUCT has bona fide commercial sales on a stand-alone basis but
      the
      other PRODUCT COMPONENT does not, then the following shall apply: NET SALES
      of
      LICENSED PRODUCT sold as part of the COMBINATION PRODUCT shall be equal to
      the
      NET SALES of the COMBINATION PRODUCT multiplied by the formula, A/C, where
“A”
is the median selling price of the LICENSED PRODUCT over the previous calendar
      quarter, and “C” is the median selling price of the COMBINATION PRODUCT over the
      previous calendar quarter.

     

    
      
         

      

      
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    (c)  If
      the
      other PRODUCT COMPONENT has bona fide commercial sales on a stand-alone basis
      but the LICENSED PRODUCT does not, then the following shall apply: NET SALES
      of
      LICENSED PRODUCT sold as part of the COMBINATION PRODUCT shall be equal to
      the
      NET SALES of the COMBINATION PRODUCT multiplied by the formula, 1-(B/C), where
      “B” is the median selling price of the other PRODUCT COMPONENT over the previous
      calendar quarter, and “C” is the median selling price of the COMBINATION PRODUCT
      over the previous calendar quarter, provided that B is less than C.

     

    (d)  If
      the
      other PRODUCT COMPONENT in the COMBINATION PRODUCT is available as a generic
      product and as a branded product, the median selling price of the version of
      the
      PRODUCT COMPONENT actually used in the COMBINATION PRODUCT, be it generic or
      branded, shall be used in the calculation outlined above.

     

    5.  DEVELOPMENT
      AND COMMERCIALIZATION

     

    5.01  Sole
      Responsibility.
      As of
      the EFFECTIVE DATE, QUEST shall have full control, authority and responsibility
      for research, DEVELOPMENT, registration and commercialization of LICENSED
      PRODUCTS in the TERRITORY, including preclinical work (e.g.,
      safety
      assessment, chemical, or pharmaceutical development work on the final
      formulation), all clinical studies, and all regulatory filings, and all such
      activity shall be undertaken at QUEST’s sole expense. QUEST shall be solely
      responsible for developing LICENSED PRODUCTS.

     

    5.02  Notice
      and Information.
      QUEST
      shall keep VITAE, at VITAE’s request, reasonably informed of the progress of
      QUEST’s efforts to develop and commercialize the LICENSED PRODUCTS in the
      TERRITORY; QUEST shall notify VITAE of all significant developments in writing
      as soon as reasonably practicable. For example, QUEST will so notify VITAE
      in
      the event that QUEST decides that a recall, field alert, product withdrawal
      or
      field correction is necessary due to any defect in any LICENSED
      PRODUCT.

     

    5.03  Certain
      QUEST Covenants.
      QUEST
      shall give due consideration to VITAE’s input, if any, on DEVELOPMENT and
      commercialization issues; however, all DEVELOPMENT and commercialization matters
      shall be determined exclusively by QUEST, in its sole discretion, as provided
      in
      Section 5.01. Notwithstanding the above, QUEST agrees not to take any action
      (without VITAE’s express written agreement) that will result (i) in a breach of
      VITAE’s obligations under the ALLERGAN AGREEMENT or the LIGAND AGREEMENT; (ii)
      in a waiver of VITAE’s material rights under the ALLERGAN AGREEMENT or LIGAND
      AGREEMENT; or (iii) in VITAE incurring any material expenses or other
      obligations that it would otherwise not have incurred. For clarity, QUEST has
      no
      authority to amend this AGREEMENT unilaterally or to waive any rights on behalf
      of VITAE under this AGREEMENT.

     

    
      
         

      

      
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    5.04  Certain
      VITAE Covenants.
      

     

    (a)  VITAE
      shall promptly notify QUEST if it becomes reasonably likely that VITAE will
      be
      or become in material breach of the ALLERGAN AGREEMENT. QUEST acknowledges
      that
      VITAE has no obligation to develop or commercialize [* * *] or any other
      TRANSFERRED COMPOUND, and QUEST has no expectation that VITAE will do
      so.

     

    (b)  VITAE
      agrees that it and its AFFILIATES shall not agree to amend the ALLERGAN
      AGREEMENT or the LIGAND AGREEMENT in any way that would adversely affect QUEST’s
      rights under the ALLERGAN AGREEMENT and the LIGAND AGREEMENT as they relate
      to
      the LICENSED COMPOUNDS. For clarity, VITAE has no authority to amend this
      AGREEMENT unilaterally or waive or modify any rights or obligations on behalf
      of
      QUEST under this AGREEMENT, or under the ALLERGAN AGREEMENT or the LIGAND
      AGREEMENT as they relate to the LICENSED COMPOUNDS. 

     

    5.05  Regulatory
      Activities.
      Subject
      to, and in accordance with, the terms and conditions of this AGREEMENT, and
      all
      requirements of applicable laws, rules, and regulations, QUEST shall be solely
      responsible, at its sole cost, for filing and obtaining REGULATORY APPROVALS
      for
      the LICENSED PRODUCTS in the TERRITORY. 

     

    5.06  Diligence.
      QUEST
      shall use COMMERCIALLY REASONABLE EFFORTS (i) to develop and commercialize
      a
      LICENSED PRODUCT; (ii) to obtain REGULATORY APPROVALS for LICENSED PRODUCTS;
      and
      (iii) to market, promote, sell and distribute a LICENSED PRODUCT. For avoidance
      of doubt, QUEST shall use COMMERCIALLY REASONABLE EFFORTS to comply with all
      diligence requirements in the ALLERGAN AGREEMENT. QUEST may sublicense or
      subcontract the marketing or co-marketing of LICENSED PRODUCTS.

     

    5.07  Direct
      License Agreement.
      VITAE
      and QUEST contemplate that QUEST may enter into a licensing agreement directly
      with ALLERGAN relating to the LICENSED COMPOUNDS which would replace and
      supersede this Agreement as it relates to the EXISTING LICENSORS. VITAE agrees
      to cooperate with QUEST in connection with the negotiation and preparation
      of
      any such licensing agreement. In the event QUEST and ALLERGAN enter into such
      a
      licensing agreement, VITAE and QUEST shall enter into an appropriate amendment,
      or amendment and restatement, of this AGREEMENT. If the parties enter into
      an
      amendment, assignment or any other new licensing arrangement, VITAE shall retain
      all financial and other benefits due under this AGREEMENT (e.g., upfront
      payment, equity milestone payment, inventory payment, royalties). In addition,
      if ALLERGAN terminates the ALLERGAN AGREEMENT with respect to VITAE (but not
      with respect to QUEST), VITAE shall also retain all payments received under
      this
      AGREEMENT and shall continue to be entitled to any and all payments due under
      this AGREEMENT.

     

    6.  MANUFACTURING
      AND SUPPLY

     

    6.01  Clinical
      and Pre-Clinical Supply.
      On or
      after the EFFECTIVE DATE, QUEST shall be solely responsible, at its sole
      expense, for manufacturing drug substance and drug product for any pre-clinical
      studies/tests or for any clinical trials for any LICENSED PRODUCT. QUEST may
      sublicense or subcontract the preclinical or clinical supplies for any LICENSED
      PRODUCT as permitted under, and in accordance with, Section 2.03.

     

    
      
         

      

      
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    6.02  Commercial
      Supply.
      QUEST
      shall be solely responsible, at its sole expense, for commercial manufacture
      of
      all LICENSED PRODUCTS. QUEST may sublicense or subcontract the commercial
      manufacture of LICENSED PRODUCTS as permitted under, and in accordance with,
      Section 2.03.

     

    7.  CONFIDENTIALITY

     

    7.01  Confidential
      Information.
      Except
      to the extent expressly authorized by this AGREEMENT or otherwise agreed to
      in
      writing by the parties, the parties agree that, during the term of this
      AGREEMENT and for five (5) years thereafter, the receiving party shall not
      (i)
      publish or otherwise disclose to THIRD PARTIES, or (ii) use for any purpose
      other than as provided or contemplated in this AGREEMENT any confidential
      information received from the other party or otherwise developed by either
      party
      in the performance of activities in furtherance of this AGREEMENT. This
      confidentiality obligation shall not apply to such information that the
      receiving party can demonstrate by competent proof that such information: (i)
      was already rightfully known to the receiving party, other than under an
      obligation of confidentiality, at the time of disclosure by the other party;
      (ii) was generally available to the public at the time of its disclosure to
      the
      receiving party; (iii) became generally available to the public other than
      through any act or omission of the receiving party; (iv) was independently
      developed by the receiving party without the aid or use of any confidential
      information from the disclosing party; or (v) was disclosed to the receiving
      party by a THIRD PARTY who was not under an obligation not to disclose such
      information. 

     

    7.02  Authorized
      Disclosures.
      Notwithstanding the above, (1) QUEST may use LICENSED COMPOUNDS or LICENSED
      KNOW-HOW as provided and contemplated in this AGREEMENT and may disclose
      confidential information of VITAE or its AFFILIATES to the extent that such
      disclosure is reasonably necessary for: (i) manufacture or DEVELOPMENT of
      LICENSED PRODUCTS; (ii) filing or prosecuting patent applications relating
      to the LICENSED COMPOUNDS or their use; (iii) regulatory filings relating to
      the
      LICENSED COMPOUNDS; (iv) prosecuting or defending litigation relating to the
      LICENSED COMPOUNDS or this AGREEMENT; or (v) conducting preclinical or
      clinical trials of the LICENSED COMPOUNDS; and (2) each party may disclose
      confidential information of the other party to the extent such disclosure is
      reasonably necessary for (i) complying with applicable laws, rules or other
      governmental regulations or orders of any court or other governmental authority;
      or (ii) disclosure to AFFILIATES, sublicensees, employees, consultants, agents,
      investors or potential investors or merger partners, provided, however, that
      such AFFILIATE, sublicensee, employee, consultant, agent, investor or potential
      investor or merger partner has undertaken a similar obligation of
      confidentiality with respect to the confidential information as those undertaken
      by the parties hereunder. In the event that a party is required to make a
      disclosure of the other party’s confidential information pursuant to Subsection
      (2)(i), the receiving party shall, except where impracticable, give reasonable
      advance notice to the disclosing party of such required disclosure and use
      reasonable efforts to secure confidential treatment of such
      information. 

     

    
      
         

      

      
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    7.03  Press
      Release; Publicity.
      The
      parties shall agree upon a joint press release, which shall be issued after
      execution of this AGREEMENT. 

     

    7.04  Publications.
      Except
      as provided in Section 7.03, VITAE may not issue any press release or submit
      any
      publication or make any presentation that includes data or other information
      relating to LICENSED COMPOUNDS, LICENSED KNOW-HOW or LICENSED PRODUCTS without
      first obtaining the prior written consent of QUEST. The contribution, if any,
      of
      each party shall be acknowledged in all publications and presentations by either
      party.

     

    8.  PATENT
      PROSECUTION AND LITIGATION

     

    8.01  Ownership.
      QUEST
      shall have and retain sole and exclusive title to all inventions, discoveries
      and know-how which are made, conceived, reduced to practice or generated by
      its
      employees, agents, or other persons acting under its authority in the course
      of
      or as a result of this AGREEMENT. Each party shall own a fifty percent (50%)
      undivided interest in all such inventions, discoveries and know-how made,
      conceived, reduced to practice or generated jointly by employees, agents, or
      other persons acting under the authority of both parties in the course of as
      a
      result of this AGREEMENT. The parties acknowledge and agree that as of the
      EFFECTIVE DATE, the parties have no intention of entering into a joint research
      collaboration; and neither party is required to enter into such a collaboration
      or to contribute any efforts to any joint research. Any such joint collaboration
      shall be undertaken, if at all, only pursuant to a written collaboration
      agreement signed by the parties.

     

    8.02  Prosecution
      and Maintenance.
      During
      the term of this AGREEMENT, QUEST shall comply with Section 7.1 of the ALLERGAN
      AGREEMENT as it relates to the LICENSED PATENTS, including the ALLERGAN PATENTS
      and the VITAE RETINOID PATENTS, at QUEST’s sole expense. Subject to the rights
      of the EXISTING LICENSORS pursuant to the ALLERGAN AGREEMENT and LIGAND
      AGREEMENT to assume responsibility for any LICENSED PATENT which QUEST intends
      to abandon, VITAE shall have the right, but not the obligation, to assume
      responsibility for and/or take assignment of any LICENSED PATENT which QUEST
      intends to abandon or otherwise cause or allow to be forfeited. QUEST shall
      give
      VITAE at least sixty (60) days written notice prior to abandonment or other
      forfeiture of any PATENT or any part of a PATENT so as to permit VITAE to
      exercise its rights under this section. In addition, QUEST shall provide notice
      to ALLERGAN and any other co-owners of the LICENSED PATENT to be abandoned
      in
      the form and manner necessary to satisfy any legal obligations to such parties.
      

     

    8.03  Litigation.
      

     

    (a)  In
      the
      event of the institution of any suit by a THIRD PARTY against VITAE, QUEST
      or
      its sublicensees or distributors for patent infringement involving the
      manufacture, use, sale, distribution or marketing of LICENSED PRODUCT anywhere
      in the TERRITORY, the party sued shall promptly notify the other party in
      writing. QUEST shall have the right, but not the obligation, to defend such
      suit
      at its own expense. If QUEST chooses not to exercise its right to defend such
      suit, then VITAE shall have the right, but not the obligation, to defend such
      suit at its own expense. VITAE and QUEST shall assist one another and cooperate
      in any such litigation at the other’s request without expense to the requesting
      party.

     

    
      
         

      

      
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    (b)  In
      the
      event that VITAE or QUEST becomes aware of actual or threatened infringement
      of
      a LICENSED PATENT anywhere in the TERRITORY, that party shall promptly notify
      the other party in writing. Subject to the rights of the EXISTING LICENSORS
      pursuant to the ALLERGAN AGREEMENT and LIGAND AGREEMENT, QUEST shall have the
      right, but not the obligation, to bring, at its own expense, an infringement
      action against any THIRD PARTY. If QUEST does not commence a particular
      infringement action within ninety (90) days of receipt of the notice of
      infringement, then VITAE, after notifying QUEST in writing, shall be entitled
      to
      bring such infringement action at its own expense. The party conducting such
      action shall have full control over its conduct, including settlement thereof
      subject to Section 8.03(e). In any event, VITAE and QUEST shall assist one
      another and cooperate in any such litigation at the other’s request without
      expense to the requesting party.

     

    (c)  In
      any
      action brought pursuant to this Section 8.03, the party bringing the action
      shall indemnify the other party, its officers, directors, shareholders,
      employees, agents, successors and assigns from any loss, damage or liability,
      including for reasonable attorney’s fees and costs, which may result from
      claims, counterclaims or cross-claims asserted by a defendant, except to the
      extent that such losses, damages or liabilities result from the negligence
      or
      willful misconduct of the other party.

     

    (d)  Subject
      to the rights of the EXISTING LICENSORS pursuant to the ALLERGAN AGREEMENT
      and
      LIGAND AGREEMENT, VITAE and QUEST shall recover their respective actual
      out-of-pocket expenses, or equitable proportions thereof, associated with any
      litigation or settlement thereof from any recovery made by any party. Any excess
      amount shall be treated as NET SALES for purposes of the royalty provisions
      of
      this Agreement.

     

    (e)  The
      parties shall keep one another informed of the status of and of their respective
      activities regarding any litigation or settlement thereof concerning LICENSED
      PRODUCT, provided however that no settlement or consent judgment or other
      voluntary final disposition of any suit defended or action brought by a party
      pursuant to this Article 8 may be entered into without the consent of the other
      party if such settlement would require the other party to be subject to an
      injunction or to make a monetary payment or would otherwise adversely affect
      the
      other party’s rights under this AGREEMENT.

     

    8.04  Patent
      Term Extension.
      QUEST,
      in its sole discretion, may seek extensions of the terms of LICENSED PATENTS
      at
      QUEST’s sole expense. If QUEST chooses not to seek a patent term extension where
      such an extension would likely have been granted, then QUEST’s royalty
      obligations to VITAE shall continue as if the term of such LICENSED PATENT
      had
      been extended.

     

    8.05  Supplementary
      Protection Certificates.
      QUEST,
      in its sole discretion, may seek to obtain, and maintain until expiry, any
      SPCs
      based on the LICENSED PATENTS at QUEST’s sole expense. If QUEST chooses not to
      seek an SPC where such SPC likely would have been granted, then QUEST’s royalty
      obligations to VITAE shall continue as if the term of such LICENSED PATENT
      had
      been extended.

     

    
      
         

      

      
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    9.  TRADEMARKS

     

    9.01  QUEST
      shall be solely responsible, at its sole expense, for the selection of all
      PRODUCT TRADEMARKS used in connection with the marketing or promotion of a
      LICENSED PRODUCT in the TERRITORY, and shall own and control such PRODUCT
      TRADEMARKS. QUEST shall be responsible for registration and maintenance of
      all
      such PRODUCT TRADEMARKS. 

     

    9.02  QUEST,
      at
      its sole expense, shall be responsible for the selection and registration of
      non-proprietary names for any LICENSED PRODUCT throughout the
      TERRITORY.

     

    10.  RECORDS
      AND REPORTING

     

    10.01  Records.
      QUEST
      shall keep, and require its AFFILIATES and sublicensees to keep complete and
      accurate records of all sales of LICENSED PRODUCTS under the licenses granted
      herein. VITAE shall have the right, at VITAE’s expense, through a certified
      public accountant or like person reasonably acceptable to QUEST, to examine
      such
      records during regular business hours during the life of this AGREEMENT and
      for
      [* * *] after its termination; provided, however, that such examination shall
      not take place more often than once a year and shall not cover such records
      for
      more than the preceding [* * *]. In the event such audit reveals an underpayment
      of the amount actually due, QUEST shall promptly remit the amount of any
      underpayment to VITAE. In the event such audit reveals an underpayment of [*
      *
      *] or more of the amount actually due, or [* * *], whichever is greater, QUEST
      shall reimburse VITAE’s reasonable audit expenses and shall also promptly remit
      interest on such underpayment, such interest to be calculated beginning upon
      the
      first day following the end of the time period within which such payment was
      due, calculated at the average annual prime rate (in the USA) as reported by
      The
      Wall Street Journal for
      the
      applicable time period.

     

    10.02  Accounting.
      Within
      thirty (30) days after the end of each calendar quarter, QUEST shall provide
      a
      true accounting of all LICENSED PRODUCTS sold by QUEST, its AFFILIATES and
      its
      sublicensees during such quarter in the TERRITORY, and QUEST shall, at the
      same
      time pay, any royalties due for such quarter. Such accounting shall show total
      invoiced and net sales on a country-by-country and product-by-product basis.
      

     

    10.03  Taxes.
      Any
      tax, duty or other levy paid or required to be withheld by QUEST on account
      of
      royalties or other payments payable to VITAE under this AGREEMENT shall be
      deducted from the amount of royalties or payments otherwise due, provided that
      QUEST shall make such deductions only to the minimum extent required by the
      relevant jurisdiction. QUEST shall secure and send to VITAE proof of any such
      taxes, duties or other levies withheld and paid by QUEST or its sublicensees
      for
      the benefit of VITAE

     

    10.04  Payment
      in U.S. Dollars; Blocked Currency.
      All
      royalties and milestone payments due under this AGREEMENT shall be payable
      in
      U.S. Dollars by bank wire transfer in immediately available funds to such bank
      account(s) as VITAE shall designate. QUEST shall notify VITAE as to the date
      and
      amount of any such wire transfer at least two (2) business days prior to such
      transfer. Except as otherwise set forth herein, all payments due hereunder
      shall
      be paid within thirty (30) days following receipt of VITAE’s invoice. If
      governmental regulations prevent remittances from a foreign country with respect
      to sales made in that country, the obligation of QUEST to pay royalties on
      sales
      in that country shall be suspended until such remittances are possible. VITAE
      shall have the right, upon giving written notice to QUEST, to receive payment
      in
      that country in local currency.

     

    
      
         

      

      
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    10.05  Foreign
      Exchange Conversion.
      Monetary conversion from the currency of a foreign country in which LICENSED
      PRODUCT is sold into U.S. Dollars shall be calculated at the actual average
      rates of exchange for the quarterly period to which such royalty payment relates
      as used by QUEST in producing its quarterly accounts.

     

    10.06  Other
      Reports.
      QUEST
      shall satisfy all reporting obligations of VITAE required by the ALLERGAN
      AGREEMENT and the LIGAND AGREEMENT as they relate to LICENSED PRODUCTS,
      including providing semi-annual progress reports in accordance with Section
      3.5(b) of the ALLERGAN AGREEMENT.

     

    11.  TERM
      AND TERMINATION

     

    11.01  Term.
      Unless
      otherwise terminated earlier, this AGREEMENT shall expire upon the expiration
      of
      QUEST’s royalty obligations under this AGREEMENT in all countries of the
      TERRITORY. 

     

    11.02  Material
      Breach.
      If
      either party fails to perform any covenants or provisions of this AGREEMENT
      and
      if such default is not corrected within sixty (60) days after receiving written
      notice from the other party with respect to such default, such other party
      shall
      have the right to terminate this AGREEMENT by giving written notice to the
      party
      in default.

     

    11.03  Bankruptcy/Insolvency.
      Either
      party may terminate this AGREEMENT if, at any time, the other party shall file
      in any court or agency pursuant to any statute or regulation of any state or
      country, a petition in bankruptcy or insolvency or for reorganization or for
      an
      arrangement or for the appointment of a receiver or trustee of the party or
      of
      its assets, or if the other party proposes a written agreement of composition
      or
      extension of its debts, or if the other party shall be served with an
      involuntary petition against it, filed in any insolvency proceeding, and such
      petition shall not be dismissed with sixty (60) days after the filing thereof,
      or if the other party shall propose or be a party to any dissolution or
      liquidation, or if the other party shall make an assignment for the benefit
      of
      creditors. All rights and licenses granted under or pursuant to this AGREEMENT
      by VITAE to QUEST are, and shall otherwise be deemed to be, for purposes of
      Section 365(n) of the U.S. Bankruptcy Code and other similar
      international laws, licenses of rights to “intellectual property” as defined in
      Section 101 of the U.S. Bankruptcy Code or such international laws.
      VITAE agrees that, notwithstanding the bankruptcy of VITAE, QUEST, as a licensee
      of such rights under this AGREEMENT, shall retain and may fully exercise all
      of
      its rights and elections under the U.S. Bankruptcy Code and other similar
      international laws. VITAE further agrees that, in the event of the commencement
      of a bankruptcy proceeding by or against VITAE under the U.S. Bankruptcy
      Code, QUEST shall be entitled to a complete duplicate of (or complete access
      to,
      as appropriate) any such intellectual property and all embodiments of such
      intellectual property, and the same, if not already in Licensee’s possession,
      shall be promptly delivered to it (i) upon any such commencement of a
      bankruptcy proceeding upon its written request therefore, unless VITAE elects
      to
      continue to perform all of its obligations under this AGREEMENT, or (ii) if
      not delivered under (i) above, upon the rejection of this AGREEMENT by or
      on behalf of VITAE upon written request therefore by QUEST.

     

    
      
         

      

      
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    11.04  Termination
      by QUEST.

     

    (a)  QUEST
      may
      terminate this AGREEMENT by giving VITAE at least thirty (30) days written
      notice thereof upon the earlier to occur of the following events: (i) the
      date two (2) years after the EFFECTIVE DATE; or (ii) QUEST’s reasonable
      determination that preclinical or clinical trials of all three lead LICENSED
      COMPOUNDS, [* * *], fail to meet the study objectives or indicate that such
      LICENSED COMPOUNDS are not safe or effective. If the parties do not agree as
      to
      whether the clinical and preclinical trials of all three lead LICENSED COMPOUNDS
      fail to meet study objectives or indicate that such LICENSED COMPOUNDS are
      not
      safe or effective, then such dispute shall be resolved in accordance with
      Section 13.03.

     

    (b)  Other
      than as provided in this Article, QUEST shall not have the right to terminate
      this AGREEMENT unilaterally. For clarity, QUEST may not unilaterally terminate
      this AGREEMENT within two years of the EFFECTIVE DATE, except pursuant to
      Sections 11.02 and 11.03.

     

    11.05  Termination
      by VITAE.

     

    (a)  QUEST
      shall undertake to raise at least twenty million dollars ($20,000,000) in
      financing through the PRIVATE PLACEMENT for purposes of funding QUEST’s initial
      business and operations, including the DEVELOPMENT of the LICENSED COMPOUNDS.
      If
      QUEST fails to complete the PRIVATE PLACEMENT and raise such amount on or before
      May 31, 2007, VITAE shall have the right to terminate this AGREEMENT by
      returning all sums received from QUEST except that it may retain [* * *],
      representing liquidated damages for the costs incurred by VITAE during
      negotiation of this AGREEMENT, including patent prosecution and maintenance
      costs. 

     

    (b)  Upon
      such
      termination, QUEST shall return all know-how, INVENTORY, and any other assets
      assigned or transferred to QUEST by VITAE in connection with this
      AGREEMENT.

     

    11.06  Consequences
      of Termination. 

     

    (a)  Upon
      termination of this AGREEMENT, VITAE shall have the right to retain any sums
      already paid by QUEST hereunder (except as specified in Section 11.05(a)),
      and
      QUEST shall pay all sums accrued hereunder which are then due.

     

    (b)  Upon
      termination of this AGREEMENT, all licenses granted to QUEST hereunder shall
      automatically terminate; provided, however, that, except as provided in
      Section 2.03,
      no
      termination of this AGREEMENT shall affect the rights of QUEST’s AFFILIATES and
      sublicensees (or their sublicensees) under any sublicense agreement previously
      entered into in accordance with this AGREEMENT.

     

    
      
         

      

      
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    (c)  Upon
      termination of this AGREEMENT other than if QUEST terminates this AGREEMENT
      because of VITAE’s uncured breach of a material provision pursuant to Section
      11.02, VITAE shall automatically be granted, and hereby is granted, an exclusive
      license, with the right to grant sublicense, under the QUEST PATENTS and QUEST
      KNOW-HOW held by QUEST at the time of termination, to make, have made, use,
      sell, offer for sale and import any LICENSED PRODUCTS in the TERRITORY, provided
      that QUEST shall retain all rights and interests in such QUEST PATENTS and
      QUEST
      KNOW-HOW to the extent that such are not related to any LICENSED PRODUCT. In
      addition, QUEST shall transfer to VITAE, at VITAE’s cost, all QUEST KNOW-HOW
      reasonably required by VITAE to manufacture, market, promote and distribute
      LICENSED PRODUCTS.

     

    (d)  Furthermore,
      QUEST shall, within thirty (30) days after the effective date of a termination
      other than a termination by QUEST pursuant to Section 11.02, use all reasonable
      endeavors to take all steps and execute all documents reasonably necessary
      to
      assign and/or transfer (to the extent legally permissible in the relevant
      country) all REGULATORY APPROVALS in QUEST’s name or in the name of QUEST’s
      AFFILIATES, sublicensees or distributors related to LICENSED PRODUCTS to VITAE
      or its designee, provided that VITAE shall be responsible for any reasonable
      associated out-of-pocket costs related to such transfer. In the event that
      no
      such assignment and/or transfer pursuant to this Paragraph may legally be made,
      then upon the request of VITAE, QUEST shall forthwith surrender such REGULATORY
      APPROVALS or applications for cancellation. In addition, upon VITAE’s request,
      QUEST shall, within the same time period, deliver to VITAE or its designee
      any
      documents relating to applications for REGULATORY APPROVALS in its possession,
      provided that VITAE shall be responsible for any reasonable associated
      out-of-pocket costs of transfer. 

     

    (e)  Upon
      termination of this AGREEMENT other than if QUEST terminates this AGREEMENT
      because of VITAE’s uncured breach of a material provision pursuant to Section
      11.02, QUEST shall assign all PRODUCT TRADEMARKS to VITAE. For clarity, QUEST
      need not assign any housemarks or other trademarks that are not specifically
      associated with a LICENSED PRODUCT.

     

    (f)  Upon
      termination of this AGREEMENT other than if VITAE terminates this AGREEMENT
      because of QUEST’s uncured breach of a material provision pursuant to Section
      11.02, QUEST shall have the right to sell its inventory of LICENSED PRODUCTS,
      subject to payment of applicable royalties and milestone payments to VITAE.
      Within [* * *] after the effective date of termination of this AGREEMENT, QUEST
      shall notify VITAE of the amount of LICENSED PRODUCTS that QUEST, its
      AFFILIATES, sublicensees and distributors then have on hand, the sale of which
      would, but for the termination, be subject to royalty, and QUEST, its
      AFFILIATES, sublicensees and distributors shall thereupon be permitted to sell
      that amount of LICENSED PRODUCTS for a period of [* * *] following the effective
      date of such termination, provided that QUEST shall pay the royalty thereon
      at
      the time herein provided for, as well as any sales milestones that are achieved
      as a result of such sales.

     

    11.07  Survival.
      Termination of this AGREEMENT in its entirety shall terminate all outstanding
      obligations and liabilities between the parties arising from this AGREEMENT,
      except those described in Sections 2.02
      (to the
      extent provided in that section), 2.03,
      11.05,
11.06,
      12.03,
      12.04,
      and
12.05
      and in
      Articles 7
      and
13.
      In
      addition, any other provision required to interpret and enforce the parties’
rights and obligations under this AGREEMENT shall also survive, but only to
      the
      extent required for the full observation and performance of this
      AGREEMENT.

     

    
      
         

      

      
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    11.08  No
      Limitation on Remedies.
      Subject
      to Sections 12.03
      and
12.04,
      termination of the AGREEMENT in accordance with the provisions hereof shall
      not
      limit remedies which may be otherwise available in law or equity.

     

    12.  WARRANTIES,
      REPRESENTATIONS AND INDEMNIFICATIONS 

     

    12.01  Each
      Party.
      Each
      party represents and warrants to the other party that: (i) it is duly organized
      and validly existing under laws of its jurisdiction of incorporation, and has
      full corporate power and authority to enter into this AGREEMENT and to carry
      out
      the provisions hereof; (ii) it is duly authorized to execute and deliver this
      AGREEMENT and to perform its obligations hereunder, and the person or persons
      executing this AGREEMENT on its behalf has been duly authorized to do so by
      all
      requisite corporate action; (iii) the execution, delivery and performance of
      this AGREEMENT by it does not conflict with the ALLERGAN AGREEMENT or any other
      agreement, instrument or understanding, oral or written, to which it is a party
      or by which it may be bound, nor violate any law or regulation of any court,
      governmental body or administrative agency having jurisdiction over it; and
      it
      has not, and will not during the term of this AGREEMENT, grant any right to
      any
      THIRD PARTY that would conflict with the rights granted to the other party
      hereunder.

     

    12.02  VITAE.
      VITAE
      warrants and represents to QUEST as follows: 

     

    (a)  VITAE
      has
      the right to license the LICENSED PATENTS and the LICENSED KNOW-HOW to QUEST
      under this AGREEMENT, and as of the EFFECTIVE DATE, VITAE has not received
      notice from ALLERGAN that it is in breach of any of the provisions of the
      ALLERGAN AGREEMENT.

     

    (b)  The
      copies of the ALLERGAN AGREEMENT and the LIGAND AGREEMENT furnished to QUEST
      by
      VITAE are true and complete in all respects, and there are no amendments or
      modifications thereof that have not been furnished to QUEST by VITAE. QUEST
      acknowledges that it may not have received certain electronic files that were
      included as appendices to the ALLERGAN AGREEMENT. To VITAE’s knowledge as of the
      EFFECTIVE DATE, neither of the EXISTING LICENSORS is in breach or default of
      any
      material term or provision of the ALLERGAN AGREEMENT or the LIGAND AGREEMENT.
      

     

    (c)  In
      accordance with VITAE’s understanding and interpretation of the ALLERGAN and
      LIGAND AGREEMENTS and as of the EFFECTIVE DATE, VITAE has satisfied in all
      material respects its obligations under the ALLERGAN AGREEMENT and the LIGAND
      AGREEMENT with respect to all periods ending on or prior to the date hereof,
      and
      has fulfilled as of the EFFECTIVE DATE its obligations under
      Section 3.5(a)(i) of the ALLERGAN AGREEMENT.

     

    (d)  As
      of the
      EFFECTIVE DATE, the ALLERGAN AGREEMENT and the LIGAND AGREEMENT are in full
      force and effect, and, to VITAE’s knowledge, there has not occurred any event or
      circumstance that, upon notice or otherwise, would entitle ALLERGAN or LIGAND
      to
      terminate the ALLERGAN AGREEMENT or the LIGAND AGREEMENT respectively.

     

    
      
         

      

      
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    (e)  Neither
      VITAE nor, to its knowledge, ALLERGAN has received any written notice that
      the
      LICENSED COMPOUNDS may infringe the patent rights, trade secret rights or other
      intellectual property or proprietary rights of any third party or any written
      notice of threats, claims or litigation made or filed challenging the ownership,
      scope, validity or enforceability of any of the LICENSED PATENTS.

     

    (f)  VITAE
      and
      its employees and agents have responded accurately and completely, in all
      material respects, to the requests for information from QUEST and its agents
      and
      representatives in connection with the due diligence conducted by QUEST. VITAE
      has not withheld material information, of which it is aware, that would
      otherwise be responsive to the requests for information from QUEST as understood
      by VITAE, except to the extent that a failure to do any of the foregoing would
      not have a materially adverse impact on the rights and benefits of QUEST
      hereunder.

     

    12.03  DISCLAIMER.
      Nothing
      in this AGREEMENT shall be construed as a warranty that the LICENSED PATENTS
      are
      valid or enforceable. Except for the express warranties set forth in this
      Article 12,
      QUEST
      acknowledges and agrees that it is relying solely on its own due diligence
      in
      entering into this transaction, and that it is not relying upon any
      representations by VITAE, its employees or its agents. EXCEPT FOR THE EXPRESS
      WARRANTIES SET FORTH IN THIS ARTICLE 12,
      VITAE
      DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING,
      WITHOUT LIMITATION, THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR
      A
      PARTICULAR PURPOSE, OR NONINFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY
      RIGHTS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, VITAE FURTHER
      DISCLAIMS ANY WARRANTY AS TO THE VALIDITY OR ENFORCEABILITY OF THE LICENSED
      PATENTS OR LICENSED KNOW-HOW. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN
      THIS ARTICLE 12, QUEST ACKNOWLEDGES AND AGREES THAT ALL PATENTS, KNOW-HOW AND
      ANY OTHER INFORMATION OR MATERIALS LICENSED OR PROVIDED HEREUNDER (INCLUDING
      THE
      INVENTORY) ARE LICENSED OR PROVIDED ON AN “AS IS” BASIS.

     

    12.04  LIMITATION
      OF LIABILITY.
      IN NO
      EVENT SHALL EITHER PARTY, ITS AFFILIATES OR THEIR OFFICERS, EMPLOYEES OR AGENTS
      BE LIABLE TO THE OTHER PARTY, ITS AFFILIATES OR THEIR OFFICERS, EMPLOYEES OR
      AGENTS FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES,
      OR FOR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (WHETHER
      BASED ON TORT OR CONTRACT) ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER
      OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, EXCEPT
      TO
      THE EXTENT THAT SUCH DAMAGES ARE THE DIRECT RESULT OF VITAE’S INTENTIONAL
      FRAUDULENT MISREPRESENTATIONS. VITAE SHALL NOT BE SHALL NOT BE LIABLE WITH
      RESPECT TO ANY DAMAGES ARISING OUT OF OR RELATED TO MATTERS WITHIN THE ACTUAL
      KNOWLEDGE OF QUEST, ITS INVESTORS, AND THEIR ADVISORS AND AGENTS. FURTHERMORE,
      VITAE’S TOTAL LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE
      LIMITED TO THE SUM OF THE PAYMENTS AND THE VALUE OF THE OTHER CONSIDERATION
      RECEIVED BY VITAE PURSUANT TO THIS AGREEMENT EXCEPT TO THE EXTENT THAT SUCH
      DAMAGES ARE THE DIRECT RESULT OF VITAE’S INTENTIONAL FRAUDULENT
      MISREPRESENTATIONS. 

     

    
      
         

      

      
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    12.05  Indemnification. 

     

    (a)  Subject
      to paragraphs (c)-(e) of this Section 12.05, QUEST shall defend, indemnify
      and
      hold harmless VITAE, its AFFILIATES, and its and their respective officers,
      directors, employees, agents, successors and assigns from any and all suits,
      claims, actions, demands, liabilities, expenses and/or loss, including
      reasonable legal expenses and reasonable attorney’s fees (collectively,
“LOSSES”), resulting from QUEST’s negligence or misconduct in connection with
      the manufacture, use, handling, storage, sale or other disposition from and
      after the EFFECTIVE DATE of LICENSED PRODUCTS or LICENSED
      COMPOUNDS.

     

    (b)  Subject
      to paragraphs (c)-(e) of this Section 12.05, VITAE shall defend, indemnify
      and
      hold harmless QUEST, its AFFILIATES, and its and their respective officers,
      directors, employees, agents, successors and assigns from any and all LOSSES
      resulting from a breach by VITAE of the ALLERGAN AGREEMENT or the LIGAND
      AGREEMENT, whether arising before or after the EFFECTIVE DATE, or VITAE’s
      negligence or misconduct in connection with activities relating to the EXCLUDED
      COMPOUNDS.

     

    (c)  No
      party
      shall be obligated under this Section 12.05 for LOSSES if it is shown by
      evidence acceptable in a court of law having jurisdiction over the subject
      matter and meeting the appropriate degree of proof for such action, that such
      LOSSES were primarily the result of the gross negligence or willful misconduct
      of the other party or its employees or agents.

     

    (d)  No
      party
      shall have any obligation under this Section 12.05 for any LOSSES with respect
      to any claim, lawsuit or other action unless the other party (i) gives such
      party prompt written notice of any claim or lawsuit or other action for which
      it
      seeks to be indemnified under this AGREEMENT, (ii) such party is granted full
      authority and control over the defense, including settlement, against such
      claim, lawsuit or other action, and (iii) the other party cooperates fully
      with
      such party and its agents in defense of the claims, lawsuit or other
      action.

     

    (e)  The
      indemnified party shall have the right to participate in the defense of any
      claim, complaint, suit, proceeding or cause of action referred to in this
      Section 12.05, utilizing attorneys of its choice, at its own expense; provided,
      however, that the indemnifying party shall have full authority and control
      to
      handle any such claim, complaint, suit, proceeding or cause of action, including
      any settlement or other disposition thereof, for which the indemnified party
      seeks indemnification under this Section 12.05.

     

    13.  GENERAL
      PROVISIONS

     

    13.01  Force
      Majeure.
      If the
      performance of any part of this AGREEMENT by either party, or of any obligation
      under this AGREEMENT, is prevented, restricted, interfered with or delayed
      by
      reason of any cause beyond the reasonable control of the party liable to
      perform, unless conclusive evidence to the contrary is provided, the party
      so
      affected shall, upon giving written notice to the other party, be excused from
      such performance to the extent of such prevention, restriction, interference
      or
      delay, provided that the affected party shall use its reasonable best efforts
      to
      avoid or remove such causes of non-performance and shall continue performance
      with the utmost dispatch whenever such causes are removed. When such
      circumstances arise, the parties shall discuss what, if any, modification of
      the
      terms of this AGREEMENT may be required in order to arrive at an equitable
      solution.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    13.02  Governing
      Law.
      This
      AGREEMENT shall be deemed to have been made in the State of California, and
      its
      form, execution, validity, construction and effect shall be determined in
      accordance with the laws of the State of California without regard to its
      conflicts of laws principles.

     

    13.03  Dispute
      Resolution.

     

    (a)  Any
      dispute, controversy or claim arising out of or relating to this AGREEMENT
      (hereinafter, referred to as a “DISPUTE”) shall be attempted to be settled by
      the parties, without litigation, in good faith, by submitting each such DISPUTE
      to appropriate senior management representatives of each party in an effort
      to
      effect a mutually acceptable resolution thereof.

     

    (b)  In
      the
      event no mutually acceptable resolution of such DISPUTE is achieved within
      thirty (30) days as a result of Section 13.03(a) then, at either party’s
      request, such DISPUTE may be submitted to binding arbitration by a mutually
      acceptable, independent THIRD PARTY arbitrator (the “ARBITRATOR”) for resolution
      under the then-current American Arbitration Association (“AAA”) rules. In such
      event, the parties shall select a mutually acceptable ARBITRATOR within twenty
      (20) days of the request of the party invoking this dispute resolution
      procedure. If the parties are unable to agree upon an ARBITRATOR, the AAA shall
      select a qualified, independent arbitrator. The venue for the arbitration shall
      be New York, New York, or some other location agreed upon by the parties. The
      decision of the ARBITRATOR may be enforced in any jurisdiction having
      jurisdiction over the parties.

     

    13.04  Waiver.
      The
      failure of either party at any time or times to require performance of any
      provision hereof shall in no manner affect its rights at a later time to enforce
      the same. No waiver by either party of any condition or term in any one or
      more
      instances shall be construed as a further or continuing waiver of such condition
      or term or of another condition or term.

     

    13.05  Severability.
      

     

    (a)  In
      the
      event any portion of this AGREEMENT shall be held illegal, void or ineffective,
      the remaining portions hereof shall remain in full force and
      effect.

     

    (b)  If
      any of
      the terms or provisions of this AGREEMENT are in conflict with any applicable
      statute or rule of law, then such terms or provisions shall be deemed
      inoperative to the extent that they may conflict therewith and shall be deemed
      to be modified to conform with such statute or rule of law.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    (c)  In
      the
      event that the terms and conditions of this AGREEMENT are materially altered
      as
      a result of this Section 13.05, the parties will renegotiate the terms and
      conditions of this AGREEMENT to resolve any inequities.

     

    13.06  Entire
      Agreement.
      This
      AGREEMENT, entered into as of the date written above, constitutes the entire
      agreement between the parties relating to the subject matter hereof and
      supersedes all previous writings and understandings. No modifications or waiver
      of any terms or conditions hereof shall be effective unless made in writing
      and
      signed by a duly authorized officer of the party against which enforcement
      is
      sought.

     

    13.07  Notices.
      Notices
      required or permitted under this AGREEMENT shall be in writing and sent by
      prepaid registered or certified air mail or by overnight express mail (e.g.,
      FedEx), or by facsimile confirmed by prepaid registered or certified air mail
      letter or by overnight express mail (e.g.,
      FedEx), and shall be deemed to have been properly served to the addressee upon
      receipt of such written communication, to the following addresses of the
      parties:

     

    
      	 	
              If
                to VITAE:

            
	 	 
	 	
              Vitae
                Pharmaceuticals, Inc.

              502
                West Office Center Drive

              Fort
                Washington, PA 19034

              Attn:
                Legal Department

            
	 	 
	
              copy
                to:

            	 
	 	
              Barbara
                Kosacz, Esq.

              Cooley
                Godward

              5
                Palo Alto Square

              3000
                El Camino Real

              Palo
                Alto, CA 94306-2155

            
	 	 
	 	
              If
                to QUEST:

            
	 	 
	 	
              Quest
                Group International, Inc.

              967
                West Center 

              Orem,
                UT 84057

            
	 
	 
	 	 
	
              copy
                to:

            	
              Troy
                & Gould Professional Corporation

              1801
                Century Park East, 16th
                Floor

              Los
                Angeles, California 90067

              Attention:
                David L. Ficksman, Esq.

            

    

     

    13.08  Assignment.
      This
      AGREEMENT and the licenses herein granted shall be binding upon and inure to
      the
      benefit of the successors-in-interest of the respective parties. Neither this
      AGREEMENT nor any interest hereunder shall be assignable by either party without
      the written consent of the other; provided, however, that either may assign
      this
      AGREEMENT, or any part of its rights and obligations hereunder, to any AFFILIATE
      or to any corporation or entity with which such party may merge or consolidate,
      or to which it may transfer all or substantially all of its assets to which
      this
      AGREEMENT relates, without obtaining the consent of the other
      party.

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    13.09  No
      Third-Party Beneficiaries.
      Nothing
      in this AGREEMENT, express or implied, is intended to confer on any person
      other
      than the parties hereto, or their respective permitted successors and assigns,
      any benefits, rights or remedies.

     

    13.10  Ambiguities.
      This
      AGREEMENT is to be deemed drafted by both parties; and ambiguities, if any,
      shall not be construed against either party, irrespective of which party may
      have actually drafted the ambiguous provision.

     

    13.11  Headings.
      The
      headings contained in this AGREEMENT have been added for convenience and shall
      not be construed as limiting.

     

    13.12  Counterparts.
      This
      AGREEMENT may be executed in any number of counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute one and the same
      instrument. Execution of a facsimile copy shall have the same force and effect
      as execution of an original, and a facsimile signature shall be deemed an
      original and valid signature.

     

    13.13  Further
      Assurances.
      Each
      party agrees that it shall, upon the request of the other, execute and deliver
      such further documents and do such other acts and things as are reasonably
      necessary and appropriate to effectuate the terms and conditions of this
      AGREEMENT.

     

    13.14  No
      Debarred Personnel.
      QUEST
      shall not use during the term of this AGREEMENT the services of any employee,
      consultant, contractor or clinical investigator that has been debarred by the
      FDA or any other regulatory authority or that is the subject of debarment
      proceedings by the FDA or any other regulatory authority.

     

    13.15  No
      Finder’s Fee.
      QUEST
      agrees that VITAE shall not be responsible for paying any commissions or fees
      to
      any THIRD PARTY in connection with this transaction.

     

     

    THE
      REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties, through their authorized officers, have executed
      this AGREEMENT as of the date first written above.

    

     

    
      	 	
              QUEST
                GROUP INTERNATIONAL, INC.

               

               

              /s/
                Kurt Brendlinger

            
	 	 
	 	
              BY: Kurt
                Brendlinger

            
	 	 
	 	
              TITLE: Director

               

               

            
	 	
              VITAE
                PHARMACEUTICALS, INC.

               

               

              /s/
                Jeffrey Hatfield

            
	 	 
	 	
              BY: Jeffrey
                Hatfield

            
	 	 
	 	
              TITLE: Chief
                Executive Officer

            

    

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    
      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and

       was
        filed separately with the Securities and Exchange
        Commission.

    

     

     

    APPENDIX
      A

     

    ALLERGAN
      PATENTS

     

    

     

    [*
      *
      *]

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    

      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and 

      was
        filed separately with the Securities and Exchange
        Commission.

    

     

    APPENDIX
      B

     

    EXCLUDED
      PATENTS

     

    

     

    [*
      *
      *]

     

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    
       

      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and 

      was
        filed separately with the Securities and Exchange
        Commission.

    

     

    APPENDIX
      C

     

    VITAE
      RETINOID PATENTS

     

    

     

    [*
      *
      *]

     

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

     

    
      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and 

      was
        filed separately with the Securities and Exchange
        Commission.

    

     

    APPENDIX
      D

     

    INVENTORY

     

    

     

    [*
      *
      *]

     

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

     

    
      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and 

      was
        filed separately with the Securities and Exchange
        Commission.

    

     

     

    APPENDIX
      E

     

    EXEMPLARY
      EXCLUDED COMPOUNDS

     

     

     

    [*
      *
      *]

     

    
      
         

      

      
        E-1

        
          

        

      

      
         

      

    

    
       

      Text
        marked by [ * * *] has been omitted pursuant to a Request for Confidential
        Treatment and 

      was
        filed separately with the Securities and Exchange
        Commission.

    

     

    APPENDIX
      F

     

    ALLERGAN
      AGREEMENT

     

     

     

    [*
      *
      *]

     

    
      
         

      

      
        F-1EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      entered into as of May ___, 2007 by and between Quest Group International,
      Inc.,
      a Nevada corporation, with its principal office at 11845 West Olympic Boulevard,
      No. 1125W, Los Angeles, California 90064 (the “Company”),
      and
      Rosh Chandraratna (“Executive,”
      together with the Company, the “Parties”),
      with
      reference to the following facts:

     

    WHEREAS,
      Executive has experience and expertise applicable to employment with Company
      to
      perform as the Chief Scientific Officer of Company, Company has agreed to employ
      Executive and Executive has agreed to enter into such employment, on the terms
      set forth in this Agreement.

     

    WHEREAS,
      Executive acknowledges that this Agreement is necessary for the protection
      of
      Company’s investment in its business, good will, products, patents, inventions,
      intellectual property, methods of operation, information, and relationships
      with
      its customers and other employees.

     

    WHEREAS,
      the Company desires to employ the Executive, and Executive desires to be
      employed by Company pursuant to the terms hereof.

     

    NOW,
      THEREFORE, the Company and Executive desire to set forth in this Agreement
      the
      terms and conditions of the Executive's employment with the
      Company.

     

    ARTICLE
      I

     

    EMPLOYMENT;
      TERM; DUTIES

     

    1.1  Employment.
      Upon
      the terms and conditions hereinafter set forth, the Company hereby employs
      Executive, and Executive hereby accepts employment, to serve as Chief Scientific
      Officer of the Company, commencing June 4, 2007 (the “Commencement
      Date”)
      and,
      subject to Section 4.2.1, ending five years thereafter (the “Term”).
      

     

    1.2  Duties.
      Executive shall report to the Chief Executive Officer (“CEO”)
      of the
      Company, and will have the general powers, duties and responsibilities of
      management usually vested in that office in a corporation and such other powers
      and duties as may be prescribed from time to time by the CEO or the Board of
      Directors of the Company (the “Board”).
      

     

    1.3  Standard
      of Performance.
      Executive agrees that he will at all times faithfully and industriously and
      to
      the best of his ability, experience and talents perform all of the duties that
      may be required of and from him pursuant to the terms of this Agreement. Such
      duties will be performed at such place or places as the interests, needs,
      business and opportunities of Company will require or render advisable.

     

    1.4  Duty
      of Loyalty.
      During
      his employment with the Company, Executive shall not, directly or indirectly,
      either as an employee, employer, consultant, agent, investor, principal,
      partner, stockholder (except as the holder of less than 1% of the issued and
      outstanding stock of a publicly held corporation), corporate officer or
      director, or in any other individual or representative capacity, engage or
      participate in any business that is in competition in any manner whatsoever
      with
      the business of the Company. Subject to the foregoing prohibition and provided
      such services or investments do not violate any applicable law, regulation
      or
      order, or interfere in any way with the faithful and diligent performance by
      Executive of the services to the Company otherwise required or contemplated
      by
      this Agreement, the Company expressly acknowledges that Executive
      may:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)  make
      and
      manage personal business investments of Executive’s choice without consulting
      the Board; and

     

    (b)  serve
      in
      any capacity with any non-profit civic, educational or charitable organization
      without consulting with the Board.

     

    1.5  Covenants
      of Executive

     

    1.5.1  Reports.
      Executive shall use his best efforts and skills to truthfully, accurately,
      and
      promptly make, maintain, and preserve all records and reports that the Company
      may, from time to time, request or require, fully account for all money,
      records, equipment, materials, or other property belonging to the Company of
      which he may have custody, and promptly pay and deliver the same whenever he
      may
      be directed to do so by the Board.

     

    1.5.2  Rules
      and Regulations.
      Executive shall obey all rules, regulations and special instructions of the
      Company and all other rules, regulations, guides, handbooks, procedures,
      policies and special instructions applicable to the Company’s business in
      connection with his duties hereunder and shall endeavor to improve his ability
      and knowledge of the Company’s business in an effort to increase the value of
      his services for the mutual benefit of the Company and the
      Executive.

     

    1.5.3  Opportunities.
      Executive shall make all business opportunities of which he becomes aware that
      are relevant to the Company’s business available to the Company, and to no other
      person or entity or to himself individually.

     

    ARTICLE
      II

     

    COMPENSATION

     

    2.1  Base
      Salary.
      During
      the Term, for all services rendered by Executive hereunder and all covenants
      and
      conditions undertaken by both Parties pursuant to this Agreement, the Company
      shall pay, and Executive shall accept, as compensation, an annual base salary
      of
      $250,000 per year commencing the Commencement Date (the “Base
      Salary”),
      payable in accordance with the normal payroll practices of the Company. The
      Base
      Salary shall be increased annually at the Company’s sole discretion, but by no
      less than 5% per year. 

     

    2.2  Performance
      and Review.
      Executive’s performance will be reviewed on no less than an annual basis.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.3  Discretionary
      Bonus.
      Executive is eligible to receive an annual bonus during his employment. This
      bonus will be based on the following two factors, each of which shall be given
      equal weight in determining the bonus amount Executive will receive that
      year:

     

    (a)  The
      Company’s performance, based on the performance criteria established by the
      Company’s Board of Directors in its sole discretion; and

     

    (b)  The
      Executive’s job performance, based on the performance criteria established by
      mutual agreement of Executive and the Chief Executive Officer, subject to review
      and approval by the Board. 

     

    2.4  Fringe
      Benefits.
      Executive and Executive’s family will be provided with group dental insurance
      through the Company’s plans. Dental benefits will commence on the first day of
      the month following the Commencement Date. In the event that no benefit plans
      are in place at that time, Company will reimburse Executive for COBRA coverage
      until such time as Executive is covered under the Company’s group medical and
      dental plans. For purposes of this Section 2.4, family shall include Executive’
spouse and dependents under the age of 24 living in the same household as
      Executive. 

     

    2.5  Vacation
      and Sick Days.
      Executive shall be entitled to four (4) workweeks of paid time off
      (“PTO”)
      per
      year commencing with the Commencement Date, provided, however, that Executive’s
      accrued and unused PTO shall not exceed a total of five workweeks. This PTO
      will
      be in addition to normal Company holidays, which will be determined at the
      discretion of the Company from time to time. Thereafter, Executive will not
      continue to accrue PTO benefits until he has used enough PTO time to fall below
      this maximum amount. Any accrued but unused PTO will be paid to Executive,
      on a
      pro rata basis, at the time that his employment is terminated. In addition
      to
      PTO, the Executive will be entitled to normal Company holidays. 

     

    2.6  Withholding.
      The
      Company may deduct from any compensation payable to Executive (including
      payments made pursuant to Section 2 of this Agreement in connection with or
      following termination of employment) amounts sufficient to cover Executive’s
      share of applicable federal, state and/or local income tax withholding, old-age
      and survivors’ and other social security payments, state disability and other
      insurance premiums and payments.

     

    2.7  Stock
      Compensation.
      At the
      sole discretion of the Board, Executive may be eligible to receive awards under
      the Company’s Stock Compensation Plan. 

     

    ARTICLE
      III

     

    BUSINESS
      EXPENSES

     

    3.1  Business
      Expenses.
      Executive will be reimbursed for all reasonable, out-of-pocket business expenses
      incurred in the performance of his/her duties on behalf of the Company
      consistent with the Company’s policies and procedures, including prior approval
      requirements and submission of appropriate supporting documentation. Such
      business expenses shall include travel, promotional, professional continuing
      education and licensing costs (to the extent required), professional society
      membership fees, seminars and similar expenditures incurred by Executive which
      Company determines are reasonably necessary for the proper discharge of
      Executive’s duties under this Agreement and for which Executive submits
      appropriate receipts and indicates the amount, date, location and business
      character in a timely manner. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3.1.1  Executive
      shall be entitled to “economy” class air travel accommodations and proper hotel
      accommodations not to exceed 4 star. Executive shall be entitled to “business”
class air travel accommodations for flights that exceed 5 hours of continuous
      air travel. 

     

    3.1.2  Prior
      to
      incurring any business expense that exceeds One Thousand Dollars (US$1,000),
      Executive shall first seek written consent of the Chief Executive Officer.
      

     

    ARTICLE
      IV

     

    TERMINATION
      OF EMPLOYMENT

     

    4.1  Termination

     

    4.1.1  Executive’s
      employment pursuant to this Agreement shall terminate on the earliest to occur
      of the following:

     

    (a)  upon
      the
      death of Executive (“Death”);

     

    (b)  upon
      the
      delivery to Executive of written notice of termination by the Company if
      Executive shall suffer a physical or mental disability or illness which renders
      Executive, in the reasonable judgment of the Board, unable to perform his duties
      and obligations under this Agreement for either 60 consecutive days or 180
      days
      in any 12-month period (“Disability”);

     

    (c)  upon
      delivery to Company of written notice of termination by the Executive for Good
      Reason; or

     

    (d)  upon
      delivery to Executive of written notice of termination by the Company for
      Cause.

     

    4.2  Unless
      either (a) this Agreement has been terminated prior to the expiration of
      the Term, or (b) one party notifies the other party at least 60 calendar
      days prior to the end of the Term (including the original Term or as the same
      may have been previously extended) that such party does not wish such Term
      to be
      extended or further extended, this Agreement shall be automatically extended
      upon the terms and conditions hereof for an additional year at the conclusion
      of
      the original or extended Term.

     

    4.2.1  Notwithstanding
      the foregoing Sections 4.1 and 4.2, either party to this Agreement may terminate
      this Agreement prior to the expiration of the Term if the terminating party
      notifies the other party at least 60 calendar days prior to the end of any
      twelve month period ending May 31 (the “Year”).
      

     

    4.3  Certain
      Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4.3.1  “Cause”
shall
      mean, in the context of a basis for termination of Executive’s employment with
      the Company, that:

     

    (a)  Executive
      has committed an act of actual fraud, moral turpitude, misappropriation of
      funds
      or embezzlement in connection with his duties under this Agreement;

     

    (b)  Executive
      is convicted
      of, or pleas nolo
      contendere
      (no
      contest) to, any crime (whether or not involving the Company) constituting
      a
      felony in the jurisdiction involved;

     

    (c)  Executive’s
      willful misconduct in the performance of Executive’s duties
      hereunder;

     

    (d)  Executive’s
      gross negligence in the performance of his duties hereunder or willful and
      repeated failure or refusal to perform such duties as may be delegated to
      Executive by Company commensurate with his position; or 

     

    (e)  Executive
      is in material breach of any provision of this Agreement, or willfully fails
      to
      or refuses to comply with the lawful directives of the Chief Executive Officer
      or the Board in the performance of his duties under this Agreement (other than
      a
      failure caused by temporary disability). 

     

    4.3.2  “Good
      Reason”
giving
      rise to Executive’s right to terminate this Agreement means if
      Executive claims that Company has materially breached this Agreement, Executive
      shall have first provided written notice to Company of any such claimed material
      breach with exact details of the claimed material breach and Company shall
      have
      had thirty (30) days from the date of receipt of such written notice to cure
      any
      such breach; if curable, and in the event Company does so cure such breach
      within said thirty (30) days, such claimed breach shall not constitute good
      reason or a breach of this Agreement.  

     

    4.4  Effect
      of Termination

     

    4.4.1   Executive
      acknowledges that in the event of termination of his employment for any reason
      listed under Sections 4.1 and 4.2, Executive shall not be entitled to any
      severance or other compensation from the Company. Without limitation on the
      generality of the foregoing, this Section supersedes any plan or policy of
      the
      Company that provides for severance to its officers or employees, and Executive
      shall not be entitled to any benefits under any such plan or
      policy.

     

    4.4.2  Subject
      to Section 4.4.1, in the event Executive is terminated without Cause, the
      Company shall continue to pay to Executive the compensation provided for under
      Section 2.1 for the remainder of the Year of such termination. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

     

    CONFIDENTIAL
      INFORMATION; NON-SOLICITATION; INTELLCTUAL PROPERTIES

     

    5.1  Trade
      Secrets of Company.
      Executive, during the Term, will develop, have access to and become acquainted
      with various trade secrets which are owned by Company and/or its affiliates
      and
      which are regularly used in the operation of the businesses of such entities.
      Executive will not disclose such trade secrets, directly or indirectly, or
      use
      them in any way, either during the Term or at any time thereafter, except as
      required in the course of his employment by Company. All files, contracts,
      manuals, reports, letters, forms, documents, notes, notebooks, lists, records,
      documents, customer lists, vendor lists, purchase information, designs, computer
      programs and similar items and information, relating to the businesses of such
      entities, whether prepared by Executive or otherwise and whether now existing
      or
      prepared at a future time, coming into his possession will remain the exclusive
      property of such entities, and will not be removed, other than work-related
      purposes, from the premises where the work of Company is conducted, except
      with
      the prior written authorization by Company.

     

    5.2  Confidential
      Data of Customers of Company.
      Executive, in the course of his duties, will have access to and become
      acquainted with financial, accounting, statistical and personal data of
      customers of Company and of their affiliates. All such data is confidential
      and
      will not be disclosed, directly or indirectly, or used by Executive in any
      way,
      either during the Term (except as required in the course of employment by
      Company) or at any time thereafter.

     

    5.3  Inevitable
      Disclosure.
      After
      Executive’s employment has terminated for Cause or without Good Reason,
      Executive will not accept employment with any direct competitor of Company
      for a
      period of one (1) year, where the new employment is likely to result in the
      inevitable disclosure of Company’s trade secrets or confidential information, or
      it would be impossible for Executive to perform his new job without using or
      disclosing trade secrets or confidential information.

     

    5.4  Limited
      Exceptions.
      Notwithstanding the foregoing, no information will be considered trade secret
      or
      confidential to the extent it is or becomes publicly available without breach
      of
      this Agreement by Executive, is rightfully received by Executive without
      obligations of confidentiality, or is ordered released or disclosed by court
      order, lawful process or government authority.

     

    5.5  No
      Solicitation.
      Executive agrees that he will not, during the Term and for one (1) year
      thereafter if terminated without Cause or with Good Reason or for two (2) years
      thereafter if terminated with for Cause or without Good Reason, encourage or
      solicit any other employee of Company to terminate his or her employment for
      any
      reason, nor will he assist others to do so.

     

    5.6  Intellectual
      Properties.
      The
      Executive has signed a separate innovation, proprietary information and
      confidentiality agreement with the Company. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    5.7  Continuing
      Effect.
      The
      provisions of this Section
      5
      will
      remain in effect after the Termination Date.

     

    ARTICLE
      VI

     

    MISCELLANEOUS

     

    6.1  Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties and
      their respective legal representatives, heirs, distributees, successors and
      assigns. Executive may not assign any of his rights and obligations under this
      Agreement. The Company may assign its rights and obligations under this
      Agreement to any successor entity. 

     

    6.2  Notices.
      Any
      notice provided for herein shall be in writing and shall be deemed to have
      been
      given or made (a) when personally delivered or (b) when sent by telecopier
      and
      confirmed within 48 hours by letter mailed or delivered to the party to be
      notified at its or his/hers address set forth herein; or three days after being
      sent by registered or certified mail, return receipt requested, (or by
      equivalent currier with delivery documentation such as FEDEX or UPS) to the
      address of the other party set forth or to such other address as may be
      specified by notice given in accordance with this section 6.2:

     

    
      	
              If
                to the Company:

            	
              Quest
                Group International, Inc.

              11845
                West Olympic Boulevard, No. 1125W

              Los
                Angeles, California 90064

              Telephone: (310)
                247-3840

              Facsimile: (310)
                247-3844

              Attention: Chief
                Executive Officer

            
	 	 
	
              If
                to Executive:

            	
              Rosh
                Chandraratna

              ____________________________

              ____________________________

              Telephone: (___)
                _____________

              Facsimile: (___)
                ______________

            

    

     

    6.3  Severability.
      If any
      provision of this Agreement, or portion thereof, shall be held invalid or
      unenforceable by a court of competent jurisdiction, such invalidity or
      unenforceability shall attach only to such provision or portion thereof, and
      shall not in any manner affect or render invalid or unenforceable any other
      provision of this Agreement or portion thereof, and this Agreement shall be
      carried out as if any such invalid or unenforceable provision or portion thereof
      were not contained herein. In addition, any such invalid or unenforceable
      provision or portion thereof shall be deemed, without further action on the
      part
      of the parties hereto, modified, amended or limited to the extent necessary
      to
      render the same valid and enforceable.

     

    6.4  Waiver.
      No
      waiver by a party hereto of a breach or default hereunder by the other party
      shall be considered valid, unless expressed in a writing signed by such first
      party, and no such waiver shall be deemed a waiver of any subsequent breach
      or
      default of the same or any other nature.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    6.5  Entire
      Agreement.
      This
      Agreement sets forth the entire agreement between the Parties with respect
      to
      the subject matter hereof, and supersedes any and all prior agreements between
      the Company and Executive, whether written or oral, relating to any or all
      matters covered by and contained or otherwise dealt with in this Agreement.
      This
      Agreement does not constitute a commitment of the Company with regard to
      Executive’s employment, express or implied, other than to the extent expressly
      provided for herein.

     

    6.6  Amendment.
      No
      modification, change or amendment of this Agreement or any of its provisions
      shall be valid, unless in writing and signed by the party against whom such
      claimed modification, change or amendment is sought to be enforced.

     

    6.7  Authority.
      The
      Parties each represent and warrant that it/he or she has the power, authority
      and right to enter into this Agreement and to carry out and perform the terms,
      covenants and conditions hereof.

     

    6.8  Attorneys’
      Fees.
      If
      either party hereto commences an arbitration or other action against the other
      party to enforce any of the terms hereof or because of the breach by such other
      party of any of the terms hereof, the prevailing party shall be entitled, in
      addition to any other relief granted, to all actual out-of-pocket costs and
      expenses incurred by such prevailing party in connection with such action,
      including, without limitation, all reasonable attorneys’ fees, and a right to
      such costs and expenses shall be deemed to have accrued upon the commencement
      of
      such action and shall be enforceable whether or not such action is prosecuted
      to
      judgment.

     

    6.9  Titles.
      The
      titles of the sections of this Agreement are inserted merely for convenience
      and
      ease of reference and shall not affect or modify the meaning of any of the
      terms, covenants or conditions of this Agreement.

     

    6.10  Applicable
      Law; Choice of Forum.
      This
      Agreement, and all of the rights and obligations of the parties in connection
      with the employment relationship established hereby, shall be governed by and
      construed in accordance with the substantive laws of the State of California
      without giving effect to principles relating to conflicts of law.

     

    6.11  Arbitration.

     

    6.11.1  Scope.
      To the
      fullest extent permitted by law, Executive and the Company agree to the binding
      arbitration of any and all controversies, claims or disputes between them
      arising out of or in any way related to this Agreement, the employment
      relationship between the Company and Executive and any disputes upon termination
      of employment, including but not limited to breach of contract, tort,
      discrimination, harassment, wrongful termination, demotion, discipline, failure
      to accommodate, family and medical leave, compensation or benefits claims,
      constitutional claims; and any claims for violation of any local, state or
      federal law, statute, regulation or ordinance or common law. For the purpose
      of
      this agreement to arbitrate, references to “Company” include all parent,
      subsidiary or related entities and their employees, supervisors, officers,
      directors, agents, pension or benefit plans, pension or benefit plan sponsors,
      fiduciaries, administrators, affiliates and all successors and assigns of any
      of
      them, and this agreement to arbitrate shall apply to them to the extent
      Executive’s claims arise out of or relate to their actions on behalf of the
      Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    6.11.2  Arbitration
      Procedure.
      To
      commence any such arbitration proceeding, the party commencing the arbitration
      must provide the other party with written notice of any and all claims forming
      the basis of such right in sufficient detail to inform the other party of the
      substance of such claims. In no event shall this notice for arbitration be
      made
      after the date when institution of legal or equitable proceedings based on
      such
      claims would be barred by the applicable statute of limitations. The arbitration
      will be conducted in Los Angeles, California, by a single neutral arbitrator
      and
      in accordance with the then-current rules for resolution of employment disputes
      of the American Arbitration Association (“AAA”).
      The
      Arbitrator is to be selected by the mutual agreement of the Parties. If the
      Parties cannot agree, the Superior Court will select the arbitrator. The parties
      are entitled to representation by an attorney or other representative of their
      choosing. The arbitrator shall have the power to enter any award that could
      be
      entered by a judge of the trial court of the State of California, and only
      such
      power, and shall follow the law. The award shall be binding and the Parties
      agree to abide by and perform any award rendered by the arbitrator. The
      arbitrator shall issue the award in writing and therein state the essential
      findings and conclusions on which the award is based. Judgment on the award
      may
      be entered in any court having jurisdiction thereof. The Company shall bear
      the
      costs of the arbitration filing and hearing fees and the cost of the
      arbitrator.

     

    6.12  This
      Agreement shall not be terminated by any voluntary or involuntary dissolution
      of
      the Company resulting from either a merger or consolidation in which the Company
      is not the consolidated or surviving corporation, or a transfer of all or
      substantially all of the assets of the Company. In the event of any such merger
      or consolidation or transfer of assets, Executive’s rights, benefits and
      obligations hereunder shall be assigned to the surviving or resulting
      corporation or the transferee of the Company’s assets.

     

     

    [Signature
      page to follow]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

     

    

    
      	
               

               

               

              
                /s/
                  Rosh
                  Chandraratna                                       
                  
Rosh
                Chandraratna

            	
              Quest
                Group International, Inc.

               

               

              By:
                /s/ Harin
                Padma-Nathan                
                

              Name: Harin
                Padma-Nathan
                Title:  
                  Chief Executive Officer

              

            

    

    

    
      
        
        

      

      
        10

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