Document:

EX-10.13

 

Exhibit 10.13

Portions of this exhibit marked [*] are requested to be treated confidentially.

LICENSE AGREEMENT

     This License Agreement (this “Agreement”) made as of this 28th day of
August, (the “ Effective Date”) 2007 by and between

     TMRC Co., Ltd., a corporation organized under the laws of Japan (“TMRC”), having a place of
business at 4-3, Akasaka 3-chome, Minato-ku, Tokyo, Japan

     and

     INNOVIVE PHARMACEUTICALS, INC., a corporation organized under the laws of the State of
Delaware, U.S.A. (“Innovive”), having a place of business at 555 Madison Avenue, New York, NY
10022, U.S.A.

WITNESSETH THAT:

     WHEREAS, TMRC is engaged in research and development of pharmaceutical product called TM-411
(Tamibarotene); and

     WHEREAS, Innovive desires to obtain an exclusive license under TMRC’s rights in the
pharmaceutical product called TM-411 (Tamibarotene) to research, develop and commercialize such
product in European countries; and

     WHEREAS, TMRC has agreed to grant exclusive license under TMRC’s rights in the pharmaceutical
product called TM-411 (Tamibarotene) to research, develop and commercialize such product in the
Territory (as defined below) .

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein
contained, the parties hereby agree as follows:

1. DEFINITIONS

     For purposes of this Agreement, the terms defined in this Section 1 shall have the respective
meanings set forth below:

     1.1 “Affiliate” shall mean, with respect to any Person, any other Person which
directly or indirectly controls, is controlled by, or is under common control with such Person. A
Person shall be regarded as in control of another Person if it owns, or directly or indirectly
controls, at least fifty percent (50%) of the voting stock or other ownership interest of the other
Person, or if it directly or indirectly possesses the power to direct or cause the direction of the
management and policies of the other Person by any means whatsoever.

1

 

     1.2 “Applicable Laws” shall mean all applicable laws, statutes, rules, regulations,
ordinances, orders, decrees or administrative decisions and the like of any nation or government.

     1.3 “Competent Authority (ies)” shall mean, collectively, the governmental entities in
each country in the Territory responsible for (a) the regulation of any Product intended for use in
the Field (b) the establishment, maintenance and/or protection of rights related to the Licensed
Patent Rights, or (c) any other applicable regulatory or administrative agency in any country in
the Territory that is comparable to, or a counterpart of, the foregoing, including but not limited
to European Agency for the Evaluation of Medicinal products (EMEA) and each country’s Medicines and
Healthcare Products Regulatory Agency (MHRA).

     1.4 “Compound” shall mean the compound known as TM-411 (Tamibarotene) listed on
Exhibit B, and any parts, analogs and derivatives thereof.

     1.5 “Government Approvals” shall mean any approvals, licenses, registrations, or
equivalents of Competent Authorities that are necessary for the manufacture, use, storage,
transport, export, import, clinical testing or sale of the Product.

     1.6 “Field 1” shall mean the pharmaceutical prevention or treatment of acute
promyelocytic leukemia (APL), “Field 2” shall mean the pharmaceutical prevention or treatment in
human hematological malignancies, including but not limited to Multiple myeloma (MM),
Myelodysplastic syndrome (MDS), Chronic myelomonocytic leukemia (CMMoL), Chronic Myelocytic
leukemia (CML) and Acute myelocytic leukemia (AML) and solid tumor indications except Hepatocelluar
carcinoma (HCC). “Field” shall collectively mean Field 1 and Field 2.

     1.7 “First Commercial Sale” shall mean that, with respect to any Product, the first
sale of such Product after all applicable marketing and pricing approvals (if any) have been
granted by the applicable governing health authority of such country.

     1.8 “Joint Development” shall mean work to be conducted by TMRC and/or Innovive
(including but not limited to work in which either TMRC or Innovive participates by means of
payment in part), such as nonclinical and/or clinical studies of Product in the Field, in each case
as listed on Exhibit D.

     1.9 “LICENSE AGREEMENT” shall mean the License Agreement that provides for a license
grant to TM-411 (Tamibarotene) for use in North America as of December 6, 2006 between TMRC and
Innovive.

     1.10 “Licensed IP Rights” shall mean, collectively, the Licensed Patent Rights,
Licensed Trademark Rights and the Licensed Know-How Rights.

     1.11 “Licensed Know-How Rights” shall mean all trade secret and other know-how rights
in and to all data, information, compositions and other technology, including the Compound (and
including, but not limited to, formulae, procedures, protocols, techniques and results of
experimentation and testing) which are available to TMRC and are necessary or useful for Innovive
to make, use, develop, sell or seek regulatory approval to market a composition, or to practice any
method or process, at any time claimed or disclosed in any issued patent or pending patent
application within the Licensed Patent Rights or which otherwise relates to the Compound.

 

 

     1.12 “Licensed Patent Rights” shall mean (a) the patents and patent applications
listed on Exhibit A hereto, (b) all patents and patent applications in the Territory that claim or
cover the Compound and for which TMRC heretofore or hereafter has an ownership or (sub) licensable
interest, (c) all divisions, continuations, continuations-in-part, that claim priority to, or
common priority with, the patent applications listed in clauses (a) — (b) above or the patent
applications that resulted in the patents described in clauses (a) — (b) above, and (d) all patents
that have issued or in the future issue from any of the foregoing patent applications, including
utility, model and design patents and certificates of invention, together with any reissues,
reexaminations, renewals, extensions or additions thereto.

     1.13 “Licensed Trademark Rights” shall mean (a) trademark owned by TMRC all common law
rights and registered rights in and to the Trademark.

     1.14 “MAA” shall mean a Marketing Authorization Application, or similar application
for marketing approval of a Product for use in the Field submitted by Innovive to the applicable
Competent Authority, or its foreign equivalent.

     1.15 “Net Sales” shall mean, with respect to any Product, the gross sales price of
such Product invoiced by Innovive and its sublicensees or its Affiliate to customers who are not
Affiliates (or are Affiliates but are the end users of such Product) less, to the extent actually
paid or accrued by Innovive and its sublicensees or its Affiliate (as applicable), (a) credits,
allowances, discounts and rebates to, and chargebacks from the account of, such customers for
nonconforming, damaged, out-dated and returned Product; (b) freight and insurance costs incurred by
Innovive and its sublicensees or its Affiliate (as applicable) in transporting such Product to such
customers; (c) cash, quantity and trade discounts, rebates and other price reductions for such
Product given to such customers under price reduction programs; (d) sales, use, value-added and
other direct taxes incurred on the sale of such Product to such customers; (e) customs duties,
tariffs, surcharges and other governmental charges incurred in exporting or importing such Product
to such customers; (f) sales commissions incurred on the sale of such Product to such customers;
and (g) an allowance for uncollectible or bad debts determined in accordance with generally
accepted accounting principles.

     1.16 “Person” shall mean an individual, corporation, partnership, limited liability
company, trust, business trust, association, joint stock company, joint venture, pool, syndicate,
sole proprietorship, unincorporated organization, governmental authority or any other form of
entity not specifically listed herein.

     1.17 “Phase II Clinical Trial” shall mean a Phase II human clinical trial sponsored
by Innovive or its Affiliate that is intended to initially evaluate the effectiveness of the
Compound for a particular indication or indications in patients with the disease or indication
under study, and is conducted in any country in Territory.

     1.18 “Phase III Clinical Trial” shall mean Phase III human clinical trial sponsored by
Innovive or its Affiliate that is to investigate the safety and efficacy use of the Compound which
investigation will include comparative trials with appropriate antitumor agents.

     1.19 “Product(s)” shall mean any therapeutic or preventative pharmaceutical products
containing the Compound as an ingredient.

 

 

     1.20 “Registration(s)” shall mean any and all permits, licenses, authorizations,
registrations or regulatory approvals (including MAAs) required and/or granted by any Competent
Authority as a prerequisite to the development, manufacturing, packaging, marketing and selling of
any product.

     1.21 “Royalty Term” shall mean, with respect to each Product in each country, the term
for which a Valid Claim remains in effect and would be infringed but for the license granted by
this Agreement, by the use, offer for sale, sale or import of such Product in such country.

     1.22 “SUPPLY AGREEMENT” shall mean the Supply Agreement between the parties regarding
the supply of Tamibarotene dated March 12, 2007 between TMRC and Innovive.

     1.23 “Territory” shall mean countries listed on Exhibit C.

     1.24 “Third Party” shall mean any Person other than TMRC, Innovive and their
respective Affiliates.

     1.25 “Trademark” shall mean “OSALEUKIN”.

     1.26 “Valid Claim” shall mean a claim of an issued and unexpired patent included
within the Licensed Patent Rights, which has not been held permanently revoked, unenforceable or
invalid by a decision of a court or other governmental agency of competent jurisdiction,
unappealable or unappealed within the time allowed for appeal, and which has not been admitted to
be invalid or unenforceable through reissue or disclaimer or otherwise.

2. REPRESENTATIONS AND WARRANTIES

     Each party hereby represents and warrants to the other party as follows:

     2.1 Corporate Existence. Such party is a corporation duly organized, validly existing
and in good standing under the laws of the state in which it is incorporated.

     2.2 Authorization and Enforcement of Obligations. Such party (a) has the corporate
power and authority and the legal right to enter into this Agreement and to perform its obligations
hereunder, and (b) has taken all necessary corporate action on its part to authorize the execution
and delivery of this Agreement and the performance of its obligations hereunder. This Agreement
has been duly executed and delivered on behalf of such party, and constitutes a legal, valid,
binding obligation, enforceable against such party in accordance with its terms.

     2.3 No Consents. All necessary consents, approvals and authorizations of all
governmental authorities and other Persons required to be obtained by such party in connection with
license of this Agreement have been obtained.

     2.4 No Conflict. The execution and delivery of this Agreement and the performance of
such party’s obligations hereunder (a) do not conflict with or violate any requirement of
applicable laws or regulations, and (b) do not conflict with, or constitute a default under, any
contractual obligation of it.

 

 

     2.5 Licensed IP Rights. As to TMRC only, TMRC (a) is the sole owner or exclusive
licensee of the Licensed IP Rights, and except as TMRC has expressly informed Innovive in writing
prior to the date of this Agreement, has not granted to any Third Party any license or other
interest in the Licensed IP Rights in Territory, (b) is not aware of any Third Party patent, patent
application or other intellectual property rights that would be infringed (i) by practicing any
process or method or by making, using or selling any composition which is claimed or disclosed in
the Licensed Patent Rights or which constitutes Licensed Know-How Rights, or (ii) by making, using
or selling Products, and (c) is not aware of any infringement or misappropriation by a Third Party
of the Licensed IP Rights.

     2.6 TMRC’s REPRESENTATION AND WARRANTIES. EXCEPT AS EXPRESSLY STATED IN THIS
AGREEMENT NOTHING IN THIS AGREEMENT IS OR SHALL BE CONSTRUED AS (i) A WARRANTY OR REPRESENTATION BY
TMRC AS TO THE VALIDITY OR SCOPE OF ANY LICENSED PATENT RIGHTS (ii) A WARRANTY OR REPRESENTATION
THAT ANYTHING MADE, USED, SOLD, OR OTHERWISE DISPOSED OF UNDER ANY LICENSE GRANTED IN THIS
AGREEMENT IS OR WILL BE FREE FROM INFRINGEMENT OF PATENTS OR OTHER INTELLECTUAL PROPERTY OF THIRD
PARTIES; OR (iii) A REPRESENTATION OR WARRANTY BY TMRC OF THE ACCURACY, SAFETY, OR USEFULNESS FOR
ANY PURPOSE OF ANY TMRC KNOW-HOW AT ANY TIME MADE AVAILABLE BY TMRC. TMRC SHALL HAVE NO LIABILITY
WHATSOEVER TO INNOVIVE OR ANY OTHER PERSON FOR OR ON ACCOUNT OF ANY INJURY, LOSS, OR DAMAGE, OF
ANY KIND OR NATURE, SUSTAINED BY, OR ANY DAMAGE ASSERTED OR ASSERTED AGAINST, OR ANY OTHER
LIABILITY INCURRED BY OR IMPOSED ON INNOVIVE OR ANY OTHER PERSON, ARISING OUT OF IN CONNECTION WITH
OR RESULTING FROM (A) THE PRODUCTION, USE , OR SALE OF ANY PRODUCT BY INNOVIVE, OR THE PRACTICE OF
THE LICENSED PATENT RIGHTS ;BY INNOVIVE; OR (B) THE USE BY INNOVIVE OF ANY TMRC KNOW-HOW, AND
INNOVIVE SHALL HOLD TMRC, OR ITS OFFICERS, EMPLOYEES , OR AGENTS, HARMLESS IN THE EVENT TMRC, OR
ITS OFFICERS, EMPLOYEES, OR AGENTS, IS HELD LIABLE THEREFOR, EXCEPT TO THE EXTENT RESULTING FROM
THE NEGLIGENCE OR WILLFUL MISCONDUCT OF TMRC OR ITS OFFICERS, EMPOYEES, OR AGENTS.

3. LICENSE GRANT

     3.1 Licensed IP Rights. TMRC hereby grants to Innovive an exclusive license (with the
right to grant sublicenses ) under the Licensed IP Rights to conduct research and to develop, make,
have made, use, offer for sale, sell and import Products in the Territory for use in the Field.

     3.2 Availability of the Licensed IP Rights. TMRC shall provide Innovive with a copy
of all information available to TMRC (including information regarding the Japanese filing for the
product) relating to the Licensed IP Rights, Products or Compound, including without limitation:
(a) regulatory submissions including all protocols, protocol amendments and investigator brochures,
(b) communications with the Competent Authorities (including the minutes of any meetings as well as
all pharmacovigilance documents heretofore or hereafter prepared), (c) trial master files,
including case report forms, (d) listings and tables of results from the clinical trials, (e)
treatment-related serious adverse event reports from the clinical trials, (f) storage of and access

 

 

permission to any retained samples of materials used in clinical trials, and (g) access to
CROs involved in the clinical trials. Innovive shall provide TMRC, at TMRC’s cost for copying and
delivery and to the extent Innovive is not legally or contractually prohibited therefrom, with all
data and reports developed or made by Innovive under this Agreement and are specific to the
Licensed IP Rights. Innovive shall grant to TMRC a nonexclusive license to use such data and
reports outside the Territory, subject to TMRC paying to Innovive such cost for copying and
delivery, and Innovive grants to TMRC’s other licensees of the Compound, to the extent Innovive is
not legally or contractually prohibited therefrom, a nonexclusive license to use such data and
reports in the Field outside the Territory subject to a royalty to be mutually agreed upon by the
parties in good faith prior to the granting of such license.

     Notwithstanding foregoing TMRC has ownership for the data and reports accrued from Joint
Development and is free to use such data and reports in and outside the Territory without any
restriction.

     3.3 Technical Assistance. For a period of [*] following the date of this Agreement,
Innovive may request that TMRC provides directly, or indirectly if reasonably possible to TMRC,
such technical assistance to Innovive regarding APL as Innovive reasonably requests regarding the
Licensed IP Rights, Products or Compound, including without limitation making all data relevant to
regulatory filings available to Innovive and providing to Innovive all or part of TMRC’s inventory
of GMP and non-GMP Compound as the parties mutually agree. In the event TMRC has adequate personnel
available, TMRC shall undertake such technical assistance on Innovive’s behalf for the period
determined between TMRC and Innovive. Innovive shall pay to TMRC its pre-approved, documented,
reasonable expense incurred by TMRC in regarding such technical assistance to Innovive including
but not limited to all salary, round trip fee and accommodation fee for providing such technical
assistance.

     3.4 Registrations. TMRC acknowledges and agrees that Innovive shall own all
Registrations for Products for use in the Field, in each country in the Territory. TMRC hereby
grants to Innovive a free-of-charge right to reference and use and have access to all other
Registrations and all other regulatory documents that relate to the Licensed IP Rights, Products
or Compound, including CTAs (Clinical Trial Authorization), MAAs, and DMFs, and any supplements,
amendments or updates to the foregoing (for the purposes of this Section, the “Right of Reference”)
which TMRC has right to do so. Innovive shall have the right to (sub) license the Right of
Reference to its sublicensees and Affiliates on the condition that Innovive shall impose the same
secrecy obligations as those of Innovive. TMRC shall promptly notify Innovive of any written or
oral notices received from, or inspections by any Competent Authority relating to any such
Registrations, and shall promptly inform Innovive of any responses to such written notices or
inspections and the resolution of any issue raised by such Competent Authority. During the time
that TMRC is the holder of a Registration, if any, Innovive shall be entitled to attend any major
meetings and participate in telephone calls with the Competent Authorities, including without
limitation any major meeting preparation, meeting co-ordination and preparation of minutes.

     3.5

Product Supply. Subject to the terms and conditions contained herein, Innovive shall
purchase all the requirements of the Product in the Territory from TMRC at a price of [*] Japanese
yen (Yen[*]) per 2mg Tamibarotene tablet or [*] percent ([*]%) of the average reference prices of
Product in [*] countries ([*] and [*]), whichever is higher; provided, however, that in the

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

event of any unanticipated condition or circumstances that would have a material, adverse
impact on either party’s economic return derived from such price of Product, the parties agree
promptly to negotiate in good faith to arrive at a new price with a view to sharing equitably such
adverse economic impact. Innovive shall provide TMRC with an annual non-binding forecast by
calendar quarter Innovive’s estimated requirements. If the Supply Agreement terminates, or if
purchase of the Product is not feasible due to a problem in compliance with regulations in the
Territory, or due to TMRC’s inability or unwillingness to provide the total amounts required by
Innovive, then the parties shall discuss in good faith how to solve such problem and explore the
alternatives including allowing Innovive to manufacture product on its own. If after such good
faith discussions it becomes clear that TMRC is unable to provide such required amounts of Product
due to TMRC’s inability or unwillingness, then Innovive shall have the right to manufacture the
Product itself, or to purchase the Product from Third Parties; provided, however, that TMRC,
Innovive and such Third Parties shall in good faith discuss terms and conditions concerning such
Third Parties’ manufacture.

     3.6 Continue or Return. If Innovive does not pay any milestone under Section 4.4(1),
4.4(2) or 4.4(3) after TMRC has provided written notice to Innovive and at least [*] days to make
such payment, TMRC may terminate this Agreement forthwith. If Innovive does not pay any milestone
under Section 4.4(6) to TMRC with respect to the use of the development of Compound for any of the
indication in Field 2 after [*] years from the date of execution of this Agreement, upon written
notice to Innovive regarding any such use from TMRC, Innovive shall continue such development with
payment of milestone under Section 4.4(6) or the exclusive right for such development in Field 2
shall be converted to a nonexclusive right and TMRC can license such rights in Field 2 without any
restriction other than Innovive’s nonexclusive right.

4. FINANCIAL CONSIDERATIONS

     4.1 Royalty Rate. In consideration for the licenses granted to Innovive herein,
during the Royalty Term for a Product, Innovive shall pay to TMRC royalties, with respect to each
Product, equal to [*] percent ([*]%) of Net Sales of such Product by Innovive its Affiliates and
its sublicensees for the first year and following First Commercial Sale and in subsequent years
either (a) such [*] percent ([*]%) of Net Sales of such Product by Innovive or (b) [*] Japanese yen
(Yen[*]), whichever is greater in subsequent years, until expiration of the last-to-expire patent
or [*] years from marketing Product on each indication respectively, whichever is later. If
Product is supplied to Innovive by TMRC, Innovive may use the Trademark free of charge. If Product
is not supplied to Innovive by TMRC, Innovive shall pay to TMRC a trademark royalty of [*] percent
([*]%) of Net Sales of Product that uses the Trademark for [*] years from the date when Innovive
ceases to be supplied Product by TMRC; provided, however, that Innovive shall not pay such
trademark royalty after expiration of this Agreement under Section 10.1.

     4.2

Third Party Royalties.  If Innovive, its Affiliates or sublicensees is required to pay
royalties to any Third Party in order to exercise its rights hereunder to make, have made, use,
sell, offer to sale or import any Product, then Innovive shall have the right to credit one hundred
percent (100%) of such Third Party royalty payments against the royalties owing to TMRC under
Section 4.1 above with respect to sales of such Product in such country; provided, however, that
Innovive shall not reduce the amount of the royalties paid to TMRC under Section 4.1 above by
reason of

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

this Section 4.2, with respect to sales of such Product in such country, to less than [*]
percent ([*]%) of Net Sales of such Product in such country.

     4.3 Combination Products. Combination Product is defined as a mixture of Compound and
other active ingredient(s). Net Sales value of the Compound in the Combination Product shall be
calculated by the formula of A/(A+B), where A is the value of Compound as reasonably determined by
Innovive and reasonably acceptable to TMRC, and B is the value of other active ingredients. For
purposes of the royalty payments, the Royalty rate set forth in Section 3.1 shall be applied to the
Royalty on the Net Sales value of the Compound in the Combination Products.

     4.4 Milestones. Innovive shall pay to TMRC the following milestone payments within
thirty (30) days following the first achievement of the applicable milestone:

(1) Upon signing of this Agreement, Innovive shall pay TMRC eighty million Japanese
yen (Yen80, 000,000) in cash; provided, however, that the payment shall be made in
the following method.

(i) Upon signing of this Agreement                Yen18,000,000

(ii) The payment of remaining Yen62,000,000 shall be extended until the time
when Innovive has raised at least [*] US dollars ($ [*] USD) of new funding
or until the end of March, 31, 2008, whichever is earlier.

(2) Upon 1st patient inclusion in Europe for the first Phase II Clinical Trial to
obtain USA approval, Innovive shall pay TMRC [*] Japanese yen (Yen [*]) in cash.

(3) Upon inclusion of half the patients required for the first Phase II Clinical
Trial in Europe to obtain USA approval or until the end of June, 30, 2008, whichever
is earlier, Innovive shall pay TMRC [*] Japanese yen (Yen [*]) in cash.

(4) Upon 1st MAA submission in the Territory in Field 1, Innovive shall
pay TMRC [*] Japanese yen (Yen[*]) in cash.

(5) Upon 1st MAA Approval in the Territory in Field 1, Innovive shall pay
TMRC [*] Japanese yen (Yen[*]) in cash

(6) Upon 1st patient inclusion in the first European Phase II Clinical Trial for MAA
in the Territory for each indication of the Field 2, Innovive shall pay TMRC [*]
Japanese yen (Yen[*]) in cash for each indication of the Field 2.

(7) Upon 1st MAA submission in the Territory for each indication of the
Field 2, Innovive shall pay TMRC [*] Japanese yen (Yen [*]) in cash.

(8) Upon 1st MAA Approval in the Territory for each indication of the Field
2, Innovive shall pay TMRC [*] Japanese yen (Yen[*]) in cash.

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

5. ROYALTY REPORTS AND ACCOUNTING

     5.1 Royalty Reports. Within sixty (60) days after the end of each calendar quarter
during the term of this Agreement following first to occur of the First Commercial Sale of a
Product and the receipt by Innovive or its Affiliates of Net Sublicensing Revenues, Innovive shall
furnish to TMRC a quarterly written report showing in reasonably specific detail (a) the
calculation of Net Sales during such calendar quarter; (b) the calculation of Net Sublicensing
Revenues for such quarter; (c) the calculation of the royalties, if any, that shall have accrued
based upon such Net Sales and Net Sublicensing Revenues; (d) the withholding taxes, if any,
required by law to be deducted with respect to such sales; and (e) the exchange rates, if any, used
in determining the amount of EUR. With respect to sales of Products invoiced in EUR, the gross
sales, Net Sales and royalties payable shall be expressed in EUR. With respect to (i) Net Sales
invoiced in a currency other than EUR and (ii) cash consideration paid in a currency other than EUR
by Innovive’s sublicensees hereunder, all such amounts shall be expressed both in the currency in
which the distribution is invoiced and in the EUR equivalent. The EUR equivalent shall be
calculated using the average of the exchange rate (local equivalent per EUR) published in Financial
Times, on the last business day of each month during the latest applicable calendar quarter.

     5.2 Audits.

          5.2.1 Upon the written request of TMRC and not more than once in each calendar year, Innovive
shall permit an independent certified public accounting firm of nationally recognized standing
selected by TMRC and reasonably acceptable to Innovive, at TMRC’s expense, to have access during
normal business hours to such of the financial records of Innovive as may be reasonably necessary
to verify the accuracy of the payment reports hereunder for the eight (8) calendar quarters
immediately prior to the date of such request (other than records for which TMRC has already
conducted an audit under this Section).

          5.2.2 If such accounting firm concludes that additional amounts were owed during the audited
period, Innovive shall pay such additional amounts within thirty (30) days after the date TMRC
delivers to Innovive such accounting firm’s written report so concluding. The fees charged by such
accounting firm shall be paid by TMRC; provided, however, if the audit discloses that the royalties
payable by Innovive for such period are more than [*] percent ([*]%) of the royalties actually paid
for such period, then Innovive shall pay the reasonable fees and expenses charged by such
accounting firm.

          5.2.3 TMRC shall cause its accounting firm to retain all financial information subject to review
under this Section 5.2 in strict confidence; provided, however, that Innovive shall have the right
to require that such accounting firm, prior to conducting such audit, enter into an appropriate
non-disclosure agreement with Innovive regarding such financial information. The accounting firm
shall disclose to TMRC only whether the reports are correct or not and the amount of any
discrepancy. No other information shall be shared. TMRC shall treat all such financial information
as Innovive’s Confidential Information.

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

6. PAYMENTS

     6.1 Payment Terms. Royalties shown to have accrued by each royalty report provided
for under Section 5 above shall be due on the date such royalty report is due. Payment of royalties
in whole or in part may be made in advance of such due date.

     6.2 Exchange Control. If at any time legal restrictions prevent the prompt remittance
of part or all royalties with respect to any country in the Territory where the Product is sold,
Innovive shall have the right, in its sole discretion, to make such payments by depositing the
amount thereof in local currency to TMRC’s account in a bank or other depository institution in
such country.

     6.3 Withholding Taxes. Innovive shall be entitled to deduct the amount of any
withholding taxes, value-added taxes or other taxes, levies or charges with respect to such
amounts, other than United States taxes, payable by Innovive, its Affiliates or sublicensees, or
any taxes required to be withheld by Innovive, its Affiliates or sublicensees, to the extent
Innovive, its Affiliates or sublicensees pay to the appropriate governmental authority on behalf of
TMRC such taxes, levies or charges. Innovive shall use reasonable best efforts to minimize any
such taxes, levies or charges required to be withheld on behalf of TMRC by Innovive, its Affiliates
or sublicensees. Innovive promptly shall deliver to TMRC proof of payment of all such taxes,
levies and other charges, together with copies of all communications from or with such governmental
authority with respect thereto within thirty (30) days of receipt of confirmation of payment.

7. RESEARCH AND DEVELOPMENT OBLIGATIONS

     7.1 Research and Development Efforts. Innovive shall use its commercially reasonably
best efforts to conduct such human clinical trials as Innovive determines are necessary or
desirable to obtain regulatory approval to manufacture and market such Product as Innovive
determine are commercially feasible in the Territory in accordance with Exhibit E hereto. Innovive
shall not publish any preclinical studies of Tamibarotene without a prior written approval from
TMRC, such approval not to be unreasonably withheld. Innovive shall grant to TMRC to the extent
Innovive is not legally or contractually prohibited therefrom, a nonexclusive license to use data
based on such human clinical trials and regulatory approval in the Field outside the Territory
subject to TMRC paying Innovive ’s cost to provide such data to TMRC, and Innovive grants to TMRC’s
other licensees of the Compound, to the extent Innovive is not legally or contractually prohibited
therefrom, a non exclusive license to use such data in the Field outside the Territory subject to a
royalty to be mutually agreed upon by the parties in good faith prior to the granting of such
license.

     Notwithstanding foregoing TMRC has ownership for the data based on such human clinical trials
and regulatory approval accrued from Joint Development and TMRC are free to use such data and
reports in and outside the Territory without any restriction.

     7.2 Joint Development. TMRC shall conduct Joint Development in accordance with
Exhibit D. The terms and conditions for the joint development shall be determined between TMRC and
Innovive.

 

 

     7.3 Records. Innovive shall maintain records, in sufficient detail and in good
scientific manner, which shall reflect all work done and results achieved in the performance of its
research and development regarding the Products.

     7.4 Reports. Within sixty (60) days following the end of each half calendar year
during the term of this Agreement, Innovive shall prepare and deliver to TMRC a written summary
report which shall describe (a) the research performed to date employing the Licensed IP Rights,
(b) the progress of the development, and testing of Products in clinical trials, and (c) the status
of obtaining regulatory approvals to market Products and Innovive shall inform TMRC of the new
development of clinical trial and regulatory approval from time to time.

8. CONFIDENTIALITY

     8.1 Confidential Information. During the term of this Agreement, and for a period of
[*] years following the expiration or earlier termination hereof, each party shall maintain in
confidence all information of the other party that is disclosed by the other party and identified
as, or acknowledged to be, confidential at the time of disclosure (the “Confidential Information”),
and shall not use, disclose or grant the use of the Confidential Information except on a
need-to-know basis to those directors, officers, affiliates, employees, permitted licensees,
permitted assignees and agents, consultants, clinical investigators or contractors, to the extent
such disclosure is reasonably necessary in connection with performing its obligations or exercising
its rights under this Agreement. To the extent that disclosure is authorized by this Agreement,
prior to disclosure, each party hereto shall obtain agreement of any such Person to hold in
confidence and not make use of the Confidential Information for any purpose other than those
permitted by this Agreement. Each party shall notify the other promptly upon discovery of any
unauthorized use or disclosure of the other party’s Confidential Information.

     8.2 Permitted Disclosures. The confidentiality obligations contained in Section 8.1 above
and 8.3 below shall not apply to the extent that (a) any receiving party (the “Recipient”) is
required (i) to disclose information by law, regulation or order of a governmental agency or a
court of competent jurisdiction, or (ii) to disclose information to any governmental agency for
purposes of obtaining approval to test or market a product, provided in either case that the
Recipient shall provide written notice thereof to the other party and sufficient opportunity to
object to any such disclosure or to request confidential treatment thereof; or (b) the Recipient
can demonstrate that (i) the disclosed information was public knowledge at the time of such
disclosure to the Recipient, or thereafter became public knowledge, other than as a result of
actions of the Recipient in violation hereof; (ii) the disclosed information was rightfully known
by the Recipient (as shown by its written records) prior to the date of disclosure to the Recipient
by the other party hereunder; (iii) the disclosed information was disclosed to the Recipient on an
unrestricted basis from a source unrelated to any party to this Agreement and not under a duty of
confidentiality to the other party; or (iv) the disclosed information was independently developed
by the Recipient without use of the Confidential Information disclosed by the other party.
Notwithstanding any other provision of this Agreement, Innovive may disclose Confidential
Information of the TMRC relating to information developed pursuant to this Agreement to any Person
with whom Innovive has, or is proposing to enter into, a business relationship, as long as such
Person has entered into a confidentiality agreement with Innovive.

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

     8.3 Non Disclosures Except as otherwise provided in Section 8.2 above, TMRC and
Innovive shall not disclose any terms or conditions of this Agreement to any Third Party without
the written consent of the other party. Notwithstanding the foregoing, prior to execution of this
Agreement, Innovive and TMRC have agreed upon the substance of information that can be used to
describe the terms of this transaction for IPO, equity financing and actual investors, and without
the other party’s consent, Innovive and TMRC may disclose such information, as modified by mutual
agreement from time to time.

9. PATENTS

     9.1 Patent Prosecution and Maintenance. Innovive shall have the right to control, at
[*] cost, the preparation, filing, prosecution and maintenance of all patents and patent
applications within the Licensed Patent Rights. Innovive shall give TMRC an opportunity to review
and comment on the text of each patent application subject to this Section 9.1 before filing, and
shall supply TMRC with a copy of such patent application as filed, together with notice of its
filing date and serial number. TMRC shall cooperate with Innovive, execute all lawful papers and
instruments and make all rightful oaths and declarations as may be necessary in the preparation,
prosecution and maintenance of all patents and other filings referred to in this Section 9.1.
Notwithstanding the foregoing, TMRC and Innovive shall have joint ownership of any patents to the
extent claiming inventions conceived in the course of Joint Development, . TMRC and its Licensees
(including sublicensees) are free to practice such inventions claimed by such patents outside the
Territory and within Territory outside the Field under this Agreement or the LICENSE AGREEMENT
without any restriction. If Innovive, in its sole discretion, decides to abandon the preparation,
filing, prosecution or maintenance of any patent or patent application in the Licensed Patent
Rights, then Innovive shall notify TMRC in writing thereof and following the date of such notice
(a) TMRC may control, at [*] cost, the preparation, filing, prosecution and maintenance of such
patents and patent applications, and (b) Innovive shall thereafter have no license under this
Agreement to such patents and patent applications. TMRC represents and warrants that as of the
Effective Date and throughout the term of this Agreement (i) TMRC has and shall maintain the
exclusive rights in Territory to control the preparation, filing, prosecution and maintenance of
all patents and patent applications within the Licensed Patent Rights, and (ii) TMRC has and shall
maintain the necessary rights to grant to Innovive the right to control, with a prior consent of
TMRC’s licensors of the Licensed Patent Rights, which consent TMRC shall use commercially
reasonable efforts to obtain and maintain, the preparation, filing, prosecution and maintenance of
all patents and patent applications within the Licensed Patent Rights as set forth in this
Agreement.

     9.2 Notification of Infringement. Each party shall notify the other party of any
substantial infringement in the Territory known to such party of any Licensed Patent Rights and
shall provide the other party with the available evidence, if any, of such infringement.

     9.3

Enforcement of Patent Rights. Innovive, at [*] expense, shall have the right to
determine the appropriate course of action to enforce Licensed Patent Rights or otherwise abate the
infringement thereof, to take (or refrain from taking) appropriate action to enforce Licensed
Patent Rights, to defend any declaratory judgments seeking to invalidate or hold the Licensed
Patent Rights unenforceable, to control any litigation or other enforcement action and to enter
into, or permit, the settlement of any such litigation, declaratory judgments or other enforcement
action with respect to Licensed Patent Rights, in each case in Innovive’s own name and, if required
by

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

law, in the name of TMRC and shall consider, in good faith, the interests of TMRC in so doing.
If Innovive does not, within one hundred twenty (120) days of receipt of notice from TMRC, abate
the infringement or file suit to enforce the Licensed Patent Rights against at least one infringing
party in the Territory, TMRC shall have the right to take whatever action it deems appropriate to
enforce the Licensed Patent Rights; provided, however, that, within thirty (30) days after receipt
of notice of TMRC’s intent to file such suit, Innovive shall have the right to jointly prosecute
such suit and to fund up to [*] the costs of such suit. The party controlling any such enforcement
action shall not settle the action or otherwise consent to an adverse judgment in such action that
diminishes the rights or interests of the non-controlling party without the prior written consent
of the other party. All monies recovered upon the final judgment or settlement of any such suit to
enforce the Licensed Patent Rights shall be shared, after reimbursement of expenses, in relation to
the damages suffered by each party.

     9.4 Cooperation. In any suit to enforce and/or defend the License Patent Rights
pursuant to this Section 9, the party not in control of such suit shall, at the request and expense
of the controlling party, cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information, samples,
specimens, and the like.

10. TERMINATION

     10.1 Expiration. Subject to Sections 10.2 and 10.4 below, this Agreement shall expire
on the expiration of the last to expire Valid Claim or, if later, fifteen (15) years from the date
of First Commercial Sale of the Product in the Territory. Upon expiration of this Agreement (a)
Innovive shall have a fully paid-up, non-exclusive license under the Licensed Know-How Rights and
Licensed Trademark Rights to make, have made, use, sell, offer for sale and import Products in the
Territory for use in the Field, and (b) Section 3.4 shall survive.

     10.2 Termination by Innovive. Except as otherwise provided in Section 12, Innovive
may terminate this Agreement upon or after the breach of any material provision of this Agreement
by TMRC if TMRC has not cured such breach within ninety (90) days after notice thereof by Innovive;
provided, however, if any default is not capable of being cured within such ninety (90) day period
and TMRC is diligently undertaking to cure such default as soon as commercially feasible thereafter
under the circumstances, Innovive shall have no right to terminate this Agreement.

     10.3 Termination by TMRC. Except as otherwise provided in Section 12, TMRC may
terminate this Agreement upon or after the breach of any material provision of this Agreement by
Innovive if Innovive has not cured such breach within ninety (90) days after notice thereof by
TMRC; provided, however, if any default is not capable of being cured within such ninety (90) day
period and Innovive is diligently undertaking to cure such default as soon as commercially feasible
thereafter under the circumstances, TMRC shall have no right to terminate this Agreement.
Notwithstanding termination by TMRC under this Section 10.4, any royalties or milestone payments
that have accrued prior to such termination shall survive such termination.

     10.4
Insolvency or Bankruptcy. To the extent permitted by applicable laws, either party
may, in addition to any other remedies available to it by law or in equity, terminate this
Agreement, in whole or in part, by written notice to the other party in the event the other party
shall have

 

[*] Confidential treatment requested; certain information omitted and filed separately with
the SEC.

 

 

become insolvent or bankrupt, or shall have made assignment for the benefit of its creditors,
or there shall have been appointed a trustee or receiver of the other party. The parties agree
that, (i) in the event of the commencement of a bankruptcy proceeding by or against Innovive under
applicable laws that has not been dismissed or resolved within ninety (90) days, TMRC shall be
entitled to a complete duplicate of (or complete access to, as appropriate) any intellectual
property obtained in the course of development of the Product and all embodiments of such
intellectual property shall be promptly delivered to it upon any such termination of this
Agreement, upon expiration of such ninety (90) day period upon its written request therefore,
unless Innovive elects to continue to perform all of its obligations under this Agreement or (ii)
in case of a commencement of bankruptcy proceeding by or against TMRC under applicable laws, TMRC
shall, free of charge, furnish Innovive with TMRC’s data under Licensed Know-How Rights which TMRC
has at the time of such commencement and TMRC has right to do so.

     10.5 Effect of Expiration or Termination. Expiration or termination of this Agreement
shall not relieve the parties of any obligation accruing prior to such expiration or termination,
and the provisions of Sections 8, 9, 10, 11 and 13 shall survive the expiration or termination of
this Agreement. Upon any termination of this Agreement, TMRC shall grant a direct license to any
sublicense of Innovive hereunder having the same scope as such sublicense and on terms and
conditions no less favorable to such sublicensee than the terms and conditions of this Agreement,
provided that such sublicensee is not in default of any applicable obligations under this Agreement
and agrees in writing to be bound by the terms and conditions of such direct license.

11. INDEMNIFICATION

     11.1
Indemnification. Innovive shall defend, indemnify and hold TMRC harmless from
all losses, liabilities, damages and expenses (including attorneys’ fees and costs) incurred as a
result of any claim, demand, action or proceeding arising out of any breach of this Agreement by
Innovive, or the gross negligence or willful misconduct of Innovive in the performance of its
obligations under this Agreement, except in each case to the extent arising from the gross
negligence or willful misconduct of TMRC or the breach of this Agreement by TMRC.

     11.2 Procedure. TMRC promptly shall notify Innovive of any liability or action in
respect of which TMRC intends to claim such indemnification and Innovive shall have the right to
assume the defense thereof with counsel selected by Innovive. The indemnity agreement in this
Section 11 shall not apply to amounts paid in settlement of any loss, claim, damage, liability or
action if such settlement is effected without the consent of Innovive, which consent shall not be
withheld unreasonably. The failure to deliver notice to Innovive within a reasonable time after
the commencement of any such action, if prejudicial to its ability to defend such action, shall
relieve Innovive of any liability to TMRC under this Section 11, but the omission so to deliver
notice to Innovive will not relieve it of any liability that it may have to TMRC otherwise than
under this Section 11. TMRC under this Section 11, its employees and agents, shall cooperate with
Innovive and its legal representatives in the investigation and defense of any action, claim or
liability covered by this indemnification.

     11.3 Insurance. Innovive shall maintain product liability insurance with respect to
the research, development, manufacture and sales of Products by Innovive in such amount as Innovive
customarily maintains with respect to the research, development, manufacture and sales of its
similar products. Innovive shall maintain such insurance for so long as it continues to research,

 

 

develop, manufacture or sell any Products, and thereafter for so long as Innovive customarily
maintains insurance covering the research, development, manufacture or sale of its similar
products.

12. FORCE MAJEURE

     Neither party shall be held liable or responsible to the other party nor be deemed to have
defaulted under or breached this Agreement for failure or delay in fulfilling or performing any
term of this Agreement to the extent, and for so long as, such failure or delay is caused by or
results from causes beyond the reasonable control of the affected party including but not limited
to fire, floods, embargoes, war, acts of war (whether war be declared or not), acts of terrorism,
insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, acts of God
or acts, omissions or delays in acting by any governmental authority or the other party.

13. MISCELLANEOUS

     13.1 Notices. Any consent, notice or report required or permitted to be given or made
under this Agreement by one of the parties hereto to the other party shall be in writing, delivered
by any lawful means to such other party at its address indicated below, or to such other address as
the addressee shall have last furnished in writing to the addressor and (except as otherwise
provided in this Agreement) shall be effective upon receipt by the addressee.

	 	 	 	 	 
	 

	 	If to TMRC:
	 	TMRC Co., Ltd.
	 

	 	 	 	4-3, Akasaka 3-chome, Minato-ku
	 

	 	 	 	Tokyo 107-0052
	 

	 	 	 	Attention: Takeki Baba, Director Legal Dept.
	 
	 	 	 	 
	 

	 	If to Innovive:
	 	Innovive Pharmaceuticals, Inc.
	 

	 	 	 	555 Madison Avenue, 25th Floor
	 

	 	 	 	New York, NY 10022, U.S.A.
	 

	 	 	 	Attention: Eric Poma, VP Business Development

     13.2 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of England, without regard to the conflicts of law principles thereof.

     13.3 Arbitration. Any dispute, controversy or claim initiated by either party arising
out of or relating to this Agreement, its negotiations, execution or interpretation, or the
performance by either party of its obligations under this Agreement (other than (a) any dispute,
controversy or claim regarding the validity, enforceability, claim construction or infringement of
any patent rights, or defenses to any of the foregoing, or (b) any bona fide third party action or
proceeding filed or instituted in an action or proceeding by a Third Party against a party to this
agreement), whether before or after termination of this Agreement, shall be finally resolved by
binding arbitration. Whenever a party shall decide to institute arbitration proceedings, it shall
give prompt written notice to that effect to the other party. Any such arbitration shall be
conducted in the English language under the International Dispute Resolution Procedures and
Arbitration Rules of the American Arbitration Association (the “Rules”) by a panel of three (3)
arbitrators appointed in accordance with such Rules. Any such arbitration shall be held in New
York, New York if Innovive is a defendant or in Tokyo, Japan if TMRC is a defendant. The method and
manner of

 

 

discovery in any such arbitration proceedings shall be governed by the Rules. The arbitrators
shall have the authority to grant specific performance and to allocate between the parties the
costs of arbitration (including attorneys’ fees and expenses of the parties) in such equitable
manner as they determine. Judgment upon the award so rendered may be entered in any court having
jurisdiction or application may be made to such court for judicial acceptance of any award and an
order of enforcement, as the case may be. In no event shall a demand for arbitration be made after
the date when institution of a legal or equitable proceeding based upon such claim, dispute or
other matter in question would be barred by the applicable statute of limitations. Notwithstanding
the foregoing, either party shall have the right, without waiving any right or remedy available to
such party under this Agreement or otherwise, to seek and obtain from any court of competent
jurisdiction any interim or provisional relief that is necessary or desirable to protect the rights
or property of such party, pending the selection of the arbitrators hereunder or pending the
arbitrators’ determination of any dispute, controversy or claim hereunder.

     13.4 Assignment. TMRC and Innovive shall not assign its rights or obligations under
this Agreement without the prior written consent of the other party; provided, however, that either
party may, without such consent, assign this Agreement and its rights and obligations hereunder (a)
to any Affiliate, or (b) in connection with the transfer or sale of all or substantially all of its
business, or in the event of its merger, consolidation, change in control or similar transaction.
Any permitted assignee shall assume all obligations of its assignor under this Agreement.

     13.5 Waivers and Amendments. No change, modification, extension, termination or
waiver of this Agreement, or any of the provisions herein contained, shall be valid unless made in
writing and signed by duly authorized representatives of the parties hereto.

     13.6 Entire Agreement. This Agreement embodies the entire agreement between the
parties and supersedes any prior representations, understandings and agreements between the parties
regarding the subject matter hereof except secrecy agreement as of July 25, 2006, LICENSE AGREEMENT
and SUPPLY AGREEMENT between TMRC and Innovive. There are no representations, understandings or
agreements, oral or written, between the parties regarding the subject matter hereof that are not
fully expressed herein except the secrecy agreement as of July 25, 2006, LICENSE AGREEMENT and
SUPPLY AGREEMENT between TMRC and Innovive.

     13.7 No Benefit to Third Parties. The provisions of this Agreement are for the sole
benefit of the parties and their successors and permitted assigns, and shall not be construed as
conferring any rights in any other Persons. The Contracts (Rights of Third Parties) Act 1999 shall
not apply to this Agreement. No Person who is not a party to this Agreement (including any
employee, officer, agent, representative, licensee or subcontractor of either party) shall have the
right (whether under the Contracts (Rights of Third Parties) Act 1999 or otherwise) to enforce any
term of this Agreement which expressly or by implication confers a benefit on that Person without
the express prior agreement in writing of the parties, which agreement must refer to this Section
13.7.

     13.8 Severability. Any of the provisions of this Agreement which are determined to be
invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity
or unenforceability in such jurisdiction, without rendering invalid or unenforceable the remaining

 

 

provisions hereof and without affecting the validity or enforceability of any of the terms of
this Agreement in any other jurisdiction.

     13.9 Waiver. The waiver by either party hereto of any right hereunder or the failure
to perform or of a breach by the other party shall not be deemed a waiver of any other right
hereunder or of any other breach or failure by said other party whether of a similar nature or
otherwise.

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

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

	 	 	 	 	 	 	 
	 	 	TMRC CO., LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Tetsuya Inagaki
	 	 
	 

	 	Title:
	 	President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	INNOVIVE PHARMACEUTICALS,INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Steven Kelly
	 	 
	 

	 	Title:
	 	President & CEO	 	 

 

 

EXHIBIT A

Licensed Patent Rights

PCT/[*](regarding manufacturing method)

EP Patent [*] (application [*])

PCT/[*] (regarding Polymorphism)

Application [*]

PCT/[*] (regarding combination use)

 

[*] Confidential treatment requested; certain information omitted and filed separately with the
SEC.

 

 

EXHIBIT B

 TM-411 (Tamibarotene)

 

 

EXHIBIT C

European countries falling under the regulation of the European Medicine Agency (“EMEA”).
In addition, the countries of Norway and Switzerland will be included in the definition of
Territory.

 

 

EXHIBIT D

Joint Development

(to be discussed later)

 

 

EXHIBIT E

Innovive’s Clinical Trial and Schedule

Tamibarotene – Draft Study Timelines

[*]

 

[*] Confidential treatment requested; certain information omitted and filed separately with the
SEC.EX-10.1

 

Exhibit 10.1

AMENDED AND RESTATED

LICENSE AGREEMENT

between

NPS Allelix Corp.

and

Memory Pharmaceuticals Corp.

[*] CONFIDENTIAL TREATMENT IS REQUESTED

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Page	 	 
	 
	ARTICLE 1

	 	Definitions
	 	 	3	 	 	 
	ARTICLE 2

	 	License Grants
	 	 	7	 	 	 
	ARTICLE 3

	 	Diligence
	 	 	8	 	 	 
	ARTICLE 4

	 	Payments to NPS
	 	 	9	 	 	 
	ARTICLE 5

	 	Royalties
	 	 	10	 	 	 
	ARTICLE 6

	 	Payment, Reporting, Auditing
	 	 	12	 	 	 
	ARTICLE 7

	 	Pre-Clinical Development
	 	 	14	 	 	 
	ARTICLE 8

	 	Clinical Development
	 	 	14	 	 	 
	ARTICLE 9

	 	Regulatory Affairs
	 	 	15	 	 	 
	ARTICLE 10

	 	Manufacture and Supply
	 	 	15	 	 	 
	ARTICLE 11

	 	Commercialization
	 	 	16	 	 	 
	ARTICLE 12

	 	Trademarks
	 	 	16	 	 	 
	ARTICLE 13

	 	Ownership of Intellectual Property and Patent Rights
	 	 	16	 	 	 
	ARTICLE 14

	 	Representations and Warranties
	 	 	20	 	 	 
	ARTICLE 15

	 	Confidential Information
	 	 	21	 	 	 
	ARTICLE 16

	 	Term and Termination
	 	 	23	 	 	 
	ARTICLE 17

	 	Arbitration
	 	 	26	 	 	 
	ARTICLE 18

	 	Miscellaneous
	 	 	27	 	 	 
	 
	Schedule A

	 	 	 	 	33	 	 	 
	Schedule B

	 	 	 	 	35	 	 	 
	Schedule C

	 	 	 	 	36	 	 	 
	Schedule D

	 	 	 	 	38	 	 	 

[*] CONFIDENTIAL TREATMENT IS REQUESTED

i

 

AMENDED AND RESTATED LICENSE AGREEMENT

     This AMENDED AND RESTATED LICENSE AGREEMENT (the “Agreement”), entered into as of April 20,
2007 (the “Execution Date”), and having an effective date of October 15, 2003 (the “Effective
Date”), is between, NPS ALLELIX CORP., an Ontario corporation having it principal place of business
at 6850 Goreway Drive, Mississauga, Ontario L4V 1V7 Canada (“NPS”) and MEMORY PHARMACEUTICALS
CORP., a Delaware corporation, having its principal place of business at 100 Philips Parkway,
Montvale, New Jersey 07645 (“Memory”).

Introduction

	1.	 	Each of NPS and Memory has discovered compounds active as 5-HT6 receptor antagonists and owns
related intellectual property rights.

	2.	 	Memory has expertise in the research and development of pharmaceutical products, and desires
to develop and commercialize products containing compounds active as 5-HT6 receptor
antagonists.

	3.	 	NPS and Memory have previously entered into a License Agreement dated October 15, 2003
relating to 5-HT6 receptor antagonists (the “Original License Agreement”) and NPS and Memory
now desire to amend and restate the Original License Agreement in its entirety.

	4.	 	In consideration of the mutual covenants and promises contained in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
NPS and Memory agree to amend and restate the Original License Agreement as follows:

ARTICLE 1

DEFINITIONS

As used in this Agreement, the following terms, whether used in the singular or plural, shall have
the following meanings:

     1.1 “Affiliate” means (a) a business entity which owns, directly or indirectly, at least fifty
percent (50%) of the voting shares or other means of control of a Party; or (b) a business entity
in which at least fifty percent (50%) of the voting shares or other means of control are owned by a
Party, either directly or indirectly; or (c) a business entity, the majority ownership of which is
directly or indirectly common to the majority ownership of a Party. Notwithstanding the preceeding
provisions, once an entity ceases to be an Affiliate, then such entity shall, without any further
action, cease to have any rights, including license and sublicense rights, under this Agreement
that it has by reason of being an Affiliate.

     1.2 “Agreement Term” means the term of this Agreement, more fully described in Section 16.1.

[*] CONFIDENTIAL TREATMENT IS REQUESTED

2

 

     1.3 “Bioequivalent Product” means, with respect to a given Product or Memory Product sold in a
given country of the Territory by Memory, its Affiliate or sublicensee, a product sold by a Third
Party in such country containing [*], as the case may be, as such Product or Memory Product, as the
case may be.

     1.4 “Combination Product” means any product containing both (a) an NPS Compound and/or a
Memory Compound which causes it to be considered a Product and/or Memory Product, and (b) one or
more other pharmaceutically active agents that are not Products or Memory Products.

     1.5 “Cover” (including the variations such as “Covered”, “Coverage” or “Covering”) shall mean
that the making, using, offering for sale, selling, importing, or exporting of a given product
would infringe a claim of a Patent Right in the absence of a license under such Patent Right. The
determination of whether a product is Covered by a particular Patent Right shall be made on a
country-by-country basis.

     1.6 “Effective Date” means October 15, 2003.

     1.7 “Field” shall mean prophylaxis and treatment of diseases, in all indications, for either
human or veterinary use.

     1.8 “IND” means an Investigational New Drug Application filed with the United States Food and
Drug Administration (“FDA”) for human clinical testing of a drug.

     1.9 “Initiation of Phase I” means the date that a human is first dosed by or on behalf of
Memory, its Affiliate or sublicensee with a Product or Memory Product, as the case may be, in a
Phase I clinical trial or foreign equivalent.

     1.10 “Initiation of Phase II” means the date that a patient is first dosed by or on behalf of
Memory, its Affiliate or sublicensee with a Product or Memory Product, as the case may be, in a
Phase II clinical trial or foreign equivalent.

     1.11 “Initiation of Phase III” means the date that a patient is first dosed by or on behalf of
Memory, its Affiliate or sublicensee with a Product or Memory Product, as the case may be, in a
Phase III clinical trial or foreign equivalent.

     1.12 “Launch” means, with respect to a Product or Memory Product, as the case may be, in a
country of the Territory, the date of the first commercial sale by Memory, its Affiliate or its
sublicensee of the given Product or Memory Product in the given country after Regulatory Approval
in such country.

     1.13 “Major Market Countries” means [*].

     1.14 “Memory Compound” means any 5-HT6 receptor antagonist for which Memory as of the
Effective Date or during the term of this Agreement has rights, by reason of its own conception of
such antagonist, and are Covered by Memory Patent Rights, but are not covered by the NPS Patent
Rights. A list of the Memory Compounds is set forth in Schedule A hereto, as shall be updated from
time-to-time.

[*] CONFIDENTIAL TREATMENT IS REQUESTED

3

 

     1.15 “Memory Patent Rights” means all Patent Rights that Memory owns relating to 5-HT6
receptor antagonists as listed in Schedule B as updated from time-to-time, including (a) any
patents issuing from any such patent applications listed in Schedule B and (b) any divisional
applications, continuation applications, continuation-in-part applications, substitutions,
extensions, supplementary protection certificates, reissues, reexaminations, renewals or the like
related to the patents and patent applications listed in Schedule B.

     1.16 “Memory Product” means any pharmaceutical product that includes, in whole or as a
component, any Memory Compound as an active ingredient thereof.

     1.17 “NPS Compound” means any 5-HT6 receptor antagonist for which NPS as of the Effective Date
has rights, whether by reason of its own conception of such antagonist, or under agreement with a
Third Party, and are Covered by NPS Patent Rights. NPS Compounds shall include any 5-HT6 receptor
antagonist for which Memory during the term of this Agreement has rights by reason of its own
conception of such antagonist and which also is Covered by the NPS Patent Rights. A list of the
NPS Compounds is set forth in Schedule C hereto, as shall be updated from time-to-time.

     1.18 “NPS Know-How” means data, knowledge and information, including materials, samples,
chemical manufacturing data, toxicological data, pharmacological data, preclinical data, assays,
platforms, formulations, specifications, quality control testing data, that are necessary or useful
for the discovery, manufacture, development or commercialization of Product or Memory Product in
the Territory. NPS Know-How does not include the 5-HT6 receptor nor the non-exclusive license NPS
obtained from NIH regarding the 5-HT6 receptor.

     1.19 “NPS Patent Rights” means all Patent Rights that NPS owns, or otherwise has the right to
grant the licenses herein relating to 5-HT6 receptor antagonists as listed in Schedule D as updated
from time-to-time, including (a) any patents issuing from any such patent applications listed in
Schedule D and (b) any divisional applications, continuation applications, continuation-in-part
applications, substitutions, extensions, supplementary protection certificates, reissues,
reexaminations, renewals or the like related to the patents and patent applications listed in
Schedule D. NPS Patent Rights do not include NPS’ non-exclusive license from NIH to the 5-HT6
receptor patents.

     1.20 “NDA” means a New Drug Application filed with the FDA, or its foreign equivalent, for a
drug.

     1.21 “NDA Approval” means for a given Product or Memory Product, the date that the FDA, or its
foreign equivalents, approves the NDA for the marketing of the Product or Memory Product.

     1.22 “Net Sales” shall mean the amount of gross sales of the Product or Memory Product, as the
case may be, invoiced by Memory, its Affiliates and its sub-licensees to independent third parties
(which are, e.g., distributors, pharmacies, etc.) less deductions of returns (including allowances
actually given for spoiled, damaged, out-dated, rejected, returned Product or Memory Product sold,
withdrawals and recalls), rebates to the extent consistently applied by Memory to its products
(price reductions, rebates to social and welfare systems, charge backs, cash sales incentives (but
only to the extent it is a sales related deduction which is

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accounted for within Memory on a product-by-product basis)), government mandated rebates and
similar types of rebates (e.g., P.P.R.S, Medicaid, each as consistently applied by Memory to its
products), volume (quantity) discounts, each as consistently applied by Memory to its products,
taxes (value added or sales taxes, government mandated exceptional taxes and other taxes directly
linked to the gross sales amount), it being understood that income and capital gains taxes are not
the type of taxes contemplated as a deduction in this definition of Net Sales.

          Notwithstanding the foregoing, amounts received by Memory, its Affiliates and sublicensees for
the sale of Product or Memory Product among Memory, its Affiliates or sublicensees for resale shall
not be included in the computation of Net Sales.

     1.23 “Party” and “Parties” means NPS or Memory, or both, as applicable.

     1.24 “Patent Right” means all rights under any patent or patent application in any country of
the Territory, including any substitution, extension or supplementary protection certificate,
reissue, reexamination, renewal, division, continuation or continuations-in-part thereof.

     1.25 “Phase I” means the first phase of human clinical trials of a drug required by the US
FDA, or similar regulatory body, to gain evidence of safety and determine optimal dosage for
Product(s) or Memory Product(s), as the case may be. For the US FDA, it is described in 21 CFR
Part 312, as it may be amended.

     1.26 “Phase II” means the second phase of human clinical trials of a drug required by the US
FDA, or similar regulatory body, to gain evidence of efficacy in the target population, determine
optimal dosage, and obtain expanded evidence of safety for Product(s) or Memory Product(s), as the
case may be. For the US FDA, it is described in 21 CFR Part 312, as it may be amended.

     1.27 “Phase III” or “Pivotal Phase” means the third phase of human clinical trials of a drug
required by the US FDA, or similar regulatory body, to gain evidence of efficacy in the target
population, and obtain expanded evidence of safety for Product(s) or Memory Product(s), as the case
may be. For the US FDA, it is described in 21 CFR Part 312, as it may be amended.

     1.28 “Pre-Clinical Candidate” shall be an NPS Compound that Memory designates within 18
(eighteen) months of receipt of NPS Compounds and NPS Compound intermediates from NPS, which NPS
has in stock.

     1.29 “Product” means any and all products for humans or animals that include, in whole or as a
component thereof, a NPS Compound.

     1.30 “Regulatory Approval” means any approvals (including pricing and reimbursement
approvals), licenses, registrations or authorizations of any national or international or local
regulatory agency, department, bureau or other governmental entity, necessary for the manufacture
and sale of a Product or Memory Product, as the case may be, in the Field in a regulatory
jurisdiction in the Territory by Memory, its Affiliate or sublicensee.

     1.31 “Territory” means all countries and territories in the world.

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     1.32 “Third Party” means a person or entity other than (i) NPS or any of its Affiliates, or
(ii) Memory or any of its Affiliates.

     1.33 “US” means the United States of America and its possessions and territories, including
Puerto Rico.

     1.34 “Valid Claim” means a claim in any (i) unexpired and issued patent under NPS Patent
Rights or Memory Patent Rights, as the case may be, that has not been disclaimed, revoked or held
invalid by a final unappealable decision of a court of competent jurisdiction or government agency
or (ii) pending patent application under NPS Patent Rights or Memory Patent Rights, as the case may
be.

ARTICLE 2

LICENSE GRANTS

     2.1 License Grants. Subject to the terms and conditions of this Agreement, NPS grants to
Memory the sole and exclusive license, even with respect to NPS other than as provided in Sections
16.5(c) or (d), including the right to grant sublicenses pursuant to Section 2.2, under the NPS
Patent Rights and to use the NPS Know-How, to make, have made, use, have used, offer for sale,
sell, import, export, register and/or market Products and/or Memory Products in the Territory for
use in the Field.

          Nothing in this Agreement grants to Memory any right or license to use NPS Know-How for any
purpose other than to make, have made, use, have used, offer for sale, sell, import, export,
register and/or market Products and/or Memory Products in the Territory for use in the Field.

     2.2 Sublicense Rights.

               (a) The rights and licenses granted to Memory under Section 2.1 shall include the right to
grant sublicenses to its Affiliates and Third Parties under such rights and licenses, in whole or
in part, solely to the extent necessary to make, have made, use, have used, offer for sale, sell,
import, export, register, and/or market Products and/or Memory Products in the Territory for use in
the Field. If Memory grants such a sublicense, Memory shall ensure that all of the applicable
terms and conditions of this Agreement shall apply to the Affiliate or Third Party sublicensee to
the same extent as they apply to Memory for all purposes. Memory assumes full responsibility for
the performance of all obligations and observance of all terms so imposed on such Affiliate or
Third Party sublicensee and will itself account to NPS for all payments due under this Agreement by
reason of such sublicense.

               (b) Intentionally Omitted.

               (c) Intentionally Omitted.

               (d) Any sublicense may, at the written election of NPS, continue in full force and effect
after the termination of any of the underlying licenses granted herein to Memory. Upon the
licenses granted herein to Memory becoming fully paid up pursuant to

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     Section 16.1, any and all sublicenses granted by Memory similarly shall become fully paid up as to NPS.

ARTICLE 3

DILIGENCE

     3.1 Diligence. Memory shall use reasonable diligence in proceeding with the development,
including: pursuing a clinical candidate; conducting safety and efficacy trials; obtaining required
Regulatory Approvals; manufacturing; marketing; and sale of Products and/or Memory Products, at
Memory’s option, in the Major Market Countries.

          Reasonable diligence as used in this paragraph shall mean the same standard of effort as used
by Memory, or in any case not less than common in the industry taken as a whole, in the research,
development, clinical testing, manufacturing, marketing and sale of a product which (i) must
receive regulatory approval in Major Market Countries and (ii) has similar potential as the Product
or Memory Product, as the case may be, taking into account scientific, business and marketing and
return on investment considerations. It is understood that such Product or Memory Product
potential may change from time to time based upon changing scientific, business, marketing and
return on investment considerations. The Parties also acknowledge that, even within the Major
Market Countries, Memory (and its Affiliates) does not always seek to market its own products in
every such country or seek to obtain regulatory approval in every such country or for every
potential indication. As a result, the exercise by Memory of reasonable diligence is to be
determined by judging its efforts taken as a whole in the following regions on a region-by-region
basis (the regions being [*]).

 

          [* ]

          In the event of a dispute between the Parties with respect to whether Memory has complied with
its obligation under this Section 3.1, then such dispute shall be resolved in accordance with
Article 17. The consequences of any termination under this Section shall be as set forth in
Sections 16.3(e), 16.5 and Article 17.

ARTICLE 4

PAYMENTS TO NPS

     4.1 Milestones. Memory shall pay NPS $[*] ([*] dollars) upon [*].

          Notwithstanding the above, for each NPS Compound and Memory Compound, Memory shall pay NPS the
following milestones for Products and Memory Products being developed by Memory, which shall be
non-refundable and non-creditable, and due and payable as follows:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Event
	 	Payment (US$)
	 
	 

	 	A.
	 	(i)
	 	[*]
	 	        $[*]

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	 	 	 	 	 	Event
	 	Payment (US$)
	 
	 

	 	 	 	(ii)
	 	[*]
	 	        $[*]
	 
	 

	 	 	 	(iii)
	 	 [*]
	 	        $[*]
	 
	 

	 	 	 	(iv)
	 	[*]
	 	        $[*]
	 
	 

	 	B.
	 	(i)
	 	[*]
	 	        $[*]
	 
	 

	 	 	 	(ii)
	 	[*]
	 	        $[*]
	 
	 

	 	 	 	(iii)
	 	 [*]
	 	        $[*]

          Each payment in this Section 4.1 shall be due and payable by Memory within [*] days after
occurrence of the applicable event, with the exception of [*] events, in which the payments shall
be due and payable by Memory within [*] days after occurrence of the [*] event. Notwithstanding
anything to the contrary, Memory will make each of such payments only once, for each NPS Compound
and/or Memory Compound for a given indication upon the first occurrence of a respective event,
regardless of how many times the event may be achieved. For the avoidance of doubt, if a product
constitutes both a Product and a Memory Product, each such payment shall be due only once with
respect to such product.

          In the event a milestone payment for a given event for a given NPS Compound or Memory Compound
and indication becomes due, and Memory has not made payment for such NPS Compound or Memory
Compound in such indication for a milestone listed prior to the milestone payment due, then Memory
shall pay the milestone that is due and all prior listed milestones that were not previously paid.

          The costs Memory incurred for the validation of the patents in European countries for European
patent application no. [*] or no. [*] pursuant to Section 13.2(b)(v) (which costs totaled, in the
aggregate, $[*]) will be directly subtracted from owed milestone payments, starting with the [*]
and including subsequent milestones due until validation costs incurred by Memory equals withheld
milestones. For the avoidance of doubt, as a result of such subtraction, (a) Memory has not and
shall not be required to make payment of the [*], and (b) the milestone payment due with respect to
the [*] shall be reduced from $[*] to $[*]. As set forth in Section
13.2(b)(iii), Memory shall not incur or be required to pay any additional costs in connection with
the validation of the patents in European countries for European patent application no. [*] or no.
[*] and, accordingly, no further subtraction beyond the subtraction described in the immediately
preceding sentence shall be applied.

     4.2 Upfront Payment. Upon execution and delivery of the Agreement, Memory shall pay to NPS a
one-time nonrefundable payment in the amount of fifty thousand dollars ($50,000.00).

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ARTICLE 5

ROYALTIES

     5.1 Royalties.

               (a) Memory shall pay to NPS a royalty payment of [*]% ([*] percent) for a given Product or
Memory Product sold by Memory or its sublicensee having a Regulatory Approval, based upon the Net
Sales of such Product or Memory Product, as the case may be, which such Net Sales shall be subject
to adjustment as provided in this Article 5. For the avoidance of doubt, if a product constitutes
both a Product and a Memory Product, each such payment shall be due only once with respect to such
product.

               (b) Intentionally Omitted.

     5.2 Term of Royalty Payments. Memory shall calculate and make royalty payments to NPS under
this Article 5 commencing on Launch in any country. The Net Sales of a given country shall be
included for purposes of calculating royalties under this Section, in the case of a Product or a
Memory Product, for a period of ten (10) years after Launch of such Product or Memory Product in
such country, and upon the expiration of this ten (10) year period, the licenses granted hereunder
by NPS shall be fully paid-up and irrevocable.

     5.3 Adjustments Related to Third Party Competition. For a given Product or Memory Product in
a given calendar quarter, if in a country of the Territory (a) a Third Party is selling
Bioequivalent Product, and (b) Memory has an obligation to make payments under this Agreement with
respect to Net Sales of the given Product or Memory Product in such country, and (c) a Valid Claim
Covers the given Product or Memory Product in such country and (d) in such country, sales of units
of Bioequivalent Products in aggregate total at least [*] percent ([*]%) of the aggregate sales of
units of (A) Bioequivalent Products and (B) Products or Memory Products, as the case may be, as
measured at the end of such calendar quarter, and (e) Memory has, if it is reasonable under the
circumstances, brought in the country and continued to diligently prosecute a patent infringement
suit against the Third Party selling the Bioequivalent Product or another in privity, then Memory
shall have the right to calculate royalties with respect to such calendar quarter by including only
[*] percent ([*]%) of the amount Memory would have otherwise included for such country to calculate
sales-based payments if no Bioequivalent Product existed in such country.

     5.4 Adjustments Related to Third Party Payments. Memory shall be responsible for payment of
the entire consideration owed to any Third Party pursuant to the terms of any existing or future
patent licensing agreement entered into by Memory relating to the Product or Memory Product, as the
case may be. Memory shall have the right to deduct a maximum of [*] percent ([*]%) of the
consideration actually paid by Memory or its Affiliate to a Third Party with respect to a license
under a patent which Covers an NPS Compound or Memory Compound, from payments otherwise due and
payable by Memory to NPS under this Agreement.

     5.5 Combination Products. In the event Memory, or its sublicensees, or its Affiliates intend
to sell a Combination Product, the Parties shall meet approximately one (1) year prior to
the anticipated commercial launch of such Combination Product to negotiate in good faith and

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agree to an appropriate adjustment to Net Sales to reflect the relative significance and value of
the Product or Memory Product, as the case may be, and the other pharmaceutically active agent(s)
contained in the Combination Product. If, after good faith negotiations (not to exceed [*]), the
Parties cannot agree to an appropriate adjustment, Net Sales shall equal [*]. However, in no event
shall NPS receive less than [*] percent ([*]%) of the royalties it would receive for sale of the
Product or Memory Product, as the case may be, if it were not in a Combination Product.

     5.6 Certain Sublicensee Payments. In the event that Memory grants a sublicense to
commercialize a Product or Memory Product under the NPS Patent Rights to a Third Party, Memory
shall pay to NPS, within [*] days after receipt thereof by NPS from such sublicensee, an amount
equal to [*]. Notwithstanding anything contained herein to the contrary, the aggregate amounts
paid by Memory to NPS pursuant to this Section 5.6 [*] shall in no event exceed $[*].

ARTICLE 6

PAYMENT, REPORTING, AUDITING

     6.1 Currency and Conversion.

               (a) All payments under this Agreement shall be in U.S. Dollars by wire transfer of immediately
available funds in accordance with instruction or instructions from the Party being paid.

               (b) Whenever calculation of Net Sales requires conversion from any foreign currency, Memory
shall convert the amount of its monthly Net Sales in foreign currencies for the countries
concerned, using for internal foreign currency translation the monthly average rate of exchange
published in the Wall Street Journal (or some other source agreed upon by the Parties for any
particular country).

               (c) For sublicensees in a country, when calculating the Net Sales, the sublicensee shall
report to Memory the amount of such sales within thirty (30) days from the end of the reporting
period, after having converted each applicable monthly sales in foreign currency into US Dollars
using the average rate of exchange published in the Wall Street Journal (or some other source
agreed upon by the Parties for any particular country) for each respective month of the reporting
period.

     6.2 Payments. After the Launch of the Product or Memory Product in any country of the
Territory, Memory shall calculate royalty payments set forth in Article 5 [*] as of [*]. Memory
shall pay such payments [*] within [*] days after the end of each reporting period in which Net
Sales occur during the Agreement Term.

          [*] days after the end of each reporting period, Memory shall deliver to NPS the following
information split among [*] and rest of world:

               (a) Net Sales for each Product and Memory Product; and

               (b) the royalty payments due to NPS for the reporting period.

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          If NPS reasonably requests additional information relating to gross sales of the Products and
Memory Products in the Major Market Countries, deductions therefrom to calculate Net Sales and/or
adjustments thereto, Memory agrees to provide such information to NPS within a reasonable time,
provided, that NPS shall have the rights to exercise such requests not more than [*].

          In the event Memory does not pay NPS any amounts due under this Agreement, including pursuant
to Articles 4 and 5, within the applicable time period set forth herein, without limiting NPS’s
rights under Article 16, such payment shall bear interest, to the extent permitted by applicable
law, at the rate of interest [*] from time to time, for the applicable period calculated on the
number of days such a payment is overdue.

     6.3 Taxes.

               (a) NPS shall pay all applicable taxes levied on NPS under this Agreement.

               (b) If provision is made in law or regulation of any country for withholding of taxes of any
type, levies on NPS or other charges against NPS with respect to any amounts payable under this
Agreement to NPS, Memory shall promptly pay such tax, levy or charge for and on behalf of NPS to
the proper governmental authority, and shall promptly furnish NPS with receipt of such payment.
Memory shall have the right to deduct any such tax, levy or charge actually paid from payment due
NPS or be promptly reimbursed by NPS if no further payments are due NPS. Each Party agrees to
assist the other Party in claiming exemption from such deductions or withholdings under double
taxation or similar agreement or treaty from time to time in force and in minimizing the amount
required to be so withheld or deducted.

     6.4 Blocked Countries. If by reason of law Memory is unable to convert to U.S. Dollars a
portion of the amount due by Memory under this Agreement, then Memory shall notify NPS in writing
and, upon written request from NPS, Memory shall pay to NPS such portion, in the currency of any
other country designated by NPS and legally available to Memory.

     6.5 Accounting.

               (a) Memory shall maintain and cause its Affiliates and sublicensees to maintain books of
account containing all particulars that may be necessary for the purpose of calculating all
payments under this Agreement. Such books of account shall be kept at their principal place of
business. NPS shall have the right to engage an independent, certified public accountant to
perform, on behalf of NPS, an audit of such books and records of Memory and its Affiliates and
sublicensees as is necessary to confirm any amounts payable to NPS under this Agreement for the
period or periods requested by NPS and the correctness of any report or payments made under this
Agreement.

               (b) Such audits shall be conducted during normal business hours upon reasonable prior written
notice from NPS (minimum of thirty (30) days) in such a manner as to
not unnecessarily interfere with Memory’s normal business activities, and shall include
results of no more than three (3) preceding calendar years prior to audit notification.

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               (c) Such audit shall not occur more frequently than [*] nor more frequently
than [*] with respect to records covering any specific period of time.

               (d) The use of all information, data, documents and abstracts referred above shall be for the
sole purpose of verifying statements or compliance with this Agreement, shall be treated as Memory
Confidential Information subject to Article 15 of this Agreement and, except in the event of a
dispute between the Parties regarding amounts payable hereunder or the results of any audit, need
not be retained more than [*] years from the end of the calendar year to which each shall pertain.
Audit results shall be shared by Memory and NPS.

               (e) If any audit hereunder reveals an underpayment, Memory shall promptly make up such
underpayment. In the event that any audit performed reveals an underpayment for a [*] payment in
excess of [*] percent ([*] %) of the amount actually paid, such underpayment shall bear interest,
to the extent permitted by applicable law, at the rate of interest [*] from time to time plus [*]
percent ([*] %), for the applicable period calculated on the number of days such a payment is
overdue. If any audit hereunder reveals an overpayment, NPS shall promptly reimburse such
overpayment. [*].

               (f) The failure of NPS to request verification of any payment calculation during which
corresponding records are required to be retained under this Section 6.5 shall be considered
acceptance of such reporting by NPS.

ARTICLE 7

PRE-CLINICAL DEVELOPMENT

     7.1 Memory, at its sole cost, shall pursue further pre-clinical development of any
Pre-clinical Candidate and other preclinical candidates selected by it.

     7.2 [*].

ARTICLE 8

CLINICAL DEVELOPMENT

Memory, at its sole cost and option, shall (1) pursue clinical development of Product(s) and/or
Memory Product(s), and (2) obtain all Regulatory Approvals which are required for such Product(s)
and/or Memory Product(s) to be manufactured, developed, marketed and sold in the Territory. During
the Agreement Term, Memory shall provide NPS with an [*] summary report on or before [*] describing
the development of the NPS Compounds and/or Memory Compounds by Memory, its Affiliates, and
sublicensees.

In particular, Memory shall in such [*] reports, provide NPS with a written report describing the
then current status and plan, if applicable, for the development of an NPS Compound/Product and/or
Memory Compound/Memory Product. Said report may be in summary form but shall be
comprehensive and shall include at least (a) the name and location of each Affiliate or
sub-licensee which is then conducting, or during the preceding period has conducted any licensed
activity or which is involved in any research or development utilizing NPS Compound/Product

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and/or
Memory Compound/Memory Product, (b) a reasonable summary of the status of each such research or
development activity and of the plan for the same for the following calendar year without the
requirement to report any experimental results and details thereof, and (c) any information
concerning the timing of initiation of all clinical and important pre-clinical studies.

ARTICLE 9

REGULATORY AFFAIRS

Memory, at its sole cost, shall pursue all regulatory affairs in the Territory related to Product
and/or Memory Product, at Memory’s option, including the preparation and filing of applications for
Regulatory Approval, as well as any or all governmental approvals required to manufacture, or have
manufactured, market and sell such Products and/or Memory Products. Memory shall be responsible for
pursuing, compiling and submitting all regulatory filing documentation, and for interacting with
regulatory agencies, for all such Products and/or Memory Products in all countries in the
Territory. Memory, its sublicensees, or its Affiliates shall own and file all regulatory filings
and obtain all Regulatory Approvals for all Products and/or Memory Products in all countries of the
Territory.

Memory, at its sole cost, shall report to appropriate authorities in accordance with local
requirements all adverse events related to use of Products and/or Memory Products worldwide.
Adverse events related to the use of Product and/or Memory Product worldwide shall be in a single
database for each Product and/or Memory Product, centralized, held and owned by Memory.

ARTICLE 10

MANUFACTURE AND SUPPLY

     10.1 Clinical Supplies of Product and/or Memory Product. Memory shall supply at its own cost
all clinical supply of NPS Compounds, Memory Compounds, Product(s) and/or Memory Product(s) and
placebo to be used in the Territory during the Agreement Term, either by itself, or through a Third
Party.

     10.2 Commercial Supply. Memory shall be solely and exclusively responsible at its own
expense for the manufacture and supply of Product and/or Memory Product for sale in the Territory,
either by itself or through Third Parties.

ARTICLE 11

COMMERCIALIZATION

     11.1 Responsibilities of Memory. Except as expressly set forth in Sections 16.5(c) and
16.5(d) Memory, at its own expense, shall have sole responsibility and decision making authority
for the marketing, promotion, sale and distribution, if any, of Product and/or Memory Product in
the Territory. During the Agreement Term, Memory shall provide NPS [*] with [*] summary
report describing the commercialization of Products and/or Memory Products in the Territory by
Memory, its Affiliates and sublicensees including the name and location of each Affiliate or
sub-

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licensee which is involved in the commercialization of Product and/or Memory Product and a
reasonable summary of the pricing, sales and marketing activity in the Territory for the previous
calendar year and the following calendar year.

ARTICLE 12

TRADEMARKS

Memory shall own worldwide all trademarks on and in connection with Products and Memory Products,
and shall, at its cost, be responsible for procurement, maintenance and enforcement of all
worldwide trademarks registration on and in connection with Products and Memory Products.

ARTICLE 13

OWNERSHIP OF INTELLECTUAL PROPERTY AND PATENT RIGHTS

     13.1 Ownership of Intellectual Property.

          Memory shall require all of its employees to assign all inventions related to Products and/or
Memory Products made by them to Memory, and Memory shall own such inventions. Within sixty (60)
days after the Execution Date, NPS shall file in the respective patent offices for recordation the
appropriate name changes for all U.S. patents, foreign patents, U.S. patent applications and
allowed foreign patent applications under the NPS Patent Rights to NPS.

     13.2 NPS Patent Rights Prosecution and Maintenance.

               (a) NPS Patent Rights. Promptly after the [*], but in any event within [*], NPS shall deliver
to Memory all records, correspondence, and other information not in Memory’s possession that is
required to prepare, file, prosecute (including interference and opposition proceedings) and
maintain (including interferences, re-examination, and opposition proceedings) (collectively
“Handle”) the NPS Patent Rights. During the foregoing [*] day period, the Parties jointly shall
develop and implement a transfer plan, including identifying all such records, correspondence and
information, transferring the patent files from NPS’ patent counsel to Memory’s patent counsel (as
selected by Memory in its sole discretion) and segregating and storing under NPS’ control, with
access rights by Memory, all applicable laboratory notebooks and other records, correspondence and
information relevant to the ability of Memory to Handle the NPS Patent Rights. Memory shall have
the right, but not the obligation, to Handle the NPS Patent Rights. Memory shall use reasonable
efforts to consult with NPS as to how Memory will Handle the NPS Patent Rights in sufficient time
before any action is due to allow NPS to provide comments thereon, which comments Memory must
reasonably consider if provided to Memory at least [*] days before such action is due.

                    Should Memory decide that it does not desire to Handle a patent or patent application under
NPS Patent Rights in a given country, it shall provide written notice to
NPS thereof no less than [*] days prior to the date when the patent or patent application
under NPS Patent Rights would become abandoned in such country. After receiving such notice, NPS

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may, but is not obligated, to Handle the patent or patent application under NPS Patent Rights in
such country.

               (b) Patent Costs.

                    (i) As of the Effective Date, [*]. For the avoidance of doubt, Memory and NPS acknowledge and
agree that Memory has previously reimbursed NPS for costs incurred by NPS for Handling the patents
and patent applications under the NPS Patent Rights from the period of eighteen (18) months after
the Effective Date. Within forty-five (45) days after the end of the [*] day period referred to in
the first sentence of Section 13.2(a), NPS shall cause to be prepared and submitted to Memory a
final bill that sets forth all reasonable patent costs and expenses payable by Memory pursuant to
this Section 13.2(b). Except as set forth in such final bill (or as otherwise may be mutually
agreed upon by the Parties in writing), Memory shall have no further obligation or liability to NPS
with respect to such patent costs and expenses.

                    (ii) For a given patent or patent application under NPS Patent Rights in a given country for
which [*]. At [*] request, [*] shall advise to the specific reasons for such decision. [*] may,
in its sole discretion, continue to Handle such patent or patent application under NPS Patent
Rights in such country, [*]. If, however, a Valid Claim of such patent under NPS Patent Rights
Covers a Product in such country in which Memory Launches the Product, [*] to Handle such patent or
patent application under NPS Patent Rights with respect to such country.

                    (iii) The Parties acknowledge that pursuant to the terms of the Original Agreement (a) Memory
was required to pay the costs of validation of the patents in European countries for European
patent application no. [*] and no. [*] up to the first $[*] ([*] dollars) for both applications
combined, (b) for costs exceeding the first $[*] ([*] dollars) to a maximum of the first $[*] ([*]
dollars) for both applications combined, Memory and NPS agreed to [*], (c) Memory agreed to pay the
costs exceeding the first $[*] ([*] dollars) for both applications combined, and (d) Memory, at its
sole discretion, selected the countries for validation, which included at the minimum for both
European patent applications, [*]. For the avoidance of doubt, Memory and NPS each acknowledge and
agree that Memory has previously paid all costs required to be paid by it pursuant to Section
13.2(b)(v) of the Original Agreement (which costs totaled, in the aggregate, $[*]) and that Memory
shall not incur or be required to make any further payment in connection with such matters, except
for annuity costs.

                    (iv) Intentionally Omitted.

                    (v) Intentionally Omitted.

     13.3 Cooperation. The Parties agree to cooperate in the preparation, prosecution and
maintenance of all patent applications filed under Section 13.2, including obtaining and executing
necessary powers of attorney and assignments by the named inventors, providing relevant technical
reports to the filing Party concerning the invention disclosed in such patent application,
obtaining execution of such other documents which shall be needed in the filing and
prosecution of such patent applications, discussing in good faith foreign filing strategy,
and, as requested, updating each other regarding the status of such patent applications.

[*] CONFIDENTIAL TREATMENT IS REQUESTED

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     13.4 Infringement. Each Party shall promptly provide written notice to the other Party during
the Agreement Term of any known infringement or suspected infringement of any patent or patent
application under NPS Patent Rights by a Third Party (hereinafter “Infringement”). Each Party
shall promptly provide written notice to the other Party during the Agreement Term of any known
infringement or suspected infringements of any patent or patent application under NPS Patent Rights
by a Third Party making, using, offering for sale, selling, or importing a 5-HT6 receptor
antagonist or a product containing a 5-HT6 receptor antagonist (hereinafter “5-HT6 Infringement”).

          Memory shall have the first right to bring and control any action or proceeding with respect
to such 5-HT6 Infringement [*] and by counsel of its own choice, and NPS shall have the right, [*],
to be represented in any such action by counsel of its own choice. If Memory fails to bring any
such action or proceeding with respect to 5-HT6 Infringement within (a) [*] days following the
notice of alleged infringement or (b) [*] days before the time limit, if any, set forth in the
appropriate laws and regulations for the filing of such actions, whichever comes first, NPS shall
have the right, but not the obligation, to bring and control any such action [*] and by counsel of
its own choice, and Memory shall have the right, [*], to be represented in any such action by
counsel of its own choice.

          A Party that elects to bring and control an infringement action pursuant to this Section 13.4
shall provide prompt written notice to the other Party of any such suit commenced or action taken
by such Party.

          Upon written request, the Party bringing suit or taking action (“Initiating Party”) shall keep
the other Party informed of the status of any such suit or action and shall provide the other Party
with copies of all substantive documents and communications filed in such suit or action. The
Initiating Party shall have the sole and exclusive right to select counsel for any such suit or
action.

          The Initiating Party shall, except as provided below, [*]

          If the Initiating Party believes it reasonably necessary, upon written request to the other
Party, the other Party shall join as a party to the suit or action but shall be under no obligation
to participate except to the minimal extent that such participation is required as the result of
its being a named party to the suit or action and provided the Initiating Party provides [*]. At
the Initiating Party’s written request, the other Party shall offer reasonable assistance to the
Initiating Party at no charge to the Initiating Party except for [*]. The other Party shall have
the right to participate and have its own representation in any such suit or action at its own
expense.

          The Initiating Party shall have the right to control settlement; provided, however, that no
settlement shall be entered into without the written consent of the other Party, not to be
unreasonably withheld.

     13.5 Patent Infringement Suit by Third Party. In the event Memory is named or joined as a
party in a suit or action for patent infringement because of its exercise of a license granted
under the Agreement, Memory shall defend the suit [*].

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16

 

     13.6 Hatch-Waxman. Notwithstanding anything to the contrary, should a Party receive a
certification for a Product pursuant to the Drug Price Competition and Patent Term Restoration Act
of 1984 (Public Law 98-417), as amended, or its equivalent in a country other than the United
States of America, then such Party shall immediately provide the other Party with a copy of such
certification. Memory shall have twenty-five (25) days from the date on which it receives or
provides a copy of such certification to provide written notice to NPS (“H-W Suit Notice”) whether
Memory will bring suit, [*], within a forty-five (45) day period from the date of such
certification. Should such twenty-five (25) day period expire without Memory bringing suit or
providing such H-W Suit Notice, then NPS shall be free to immediately bring suit in its name. If
Memory brings suit, at Memory’s written request, NPS agrees to be named as a party to such suit.
At the initiating Party’s written request, [*]. The other Party shall have the right to
participate and have its own representation in any such suit or action [*].

     13.7 Memory Patent Rights. For the avoidance of doubt, during and after the termination of
this Agreement, Memory shall own the Memory Compounds, Memory Products, Memory Patent Rights and
all inventions related to the Memory Compounds, Memory Products and/or Covered by the Memory Patent
Rights and, except as specifically provided in this Agreement, does not grant any license, interest
or other right with respect thereof to NPS. Memory shall have the right, but not the obligation,
at its expense, to Handle the Memory Patent Rights and/or to bring and control an action or
proceeding with respect to any Memory Patent Rights, at its own expense, without obligation or
notice to NPS.

ARTICLE 14

REPRESENTATIONS AND WARRANTIES

     14.1 Representations and Warranties of Both Parties.

               (a) Each Party warrants and represents to the other Party that it has the full right and
authority to enter into this Agreement and that it is not aware of any impediment which would
inhibit its ability to perform the terms and conditions imposed on it by this Agreement.

     14.2 Representations and Warranties of NPS.

               (a) Corporate Action. NPS represents and warrants to Memory that all corporate action on the
part of NPS, its officers, directors and stockholders necessary for (i) the authorization,
execution and delivery of this Agreement and (ii) the performance of all obligations of NPS
hereunder has been taken and this Agreement constitutes the legal and binding obligation of NPS,
enforceable against NPS in accordance with its terms.

               (b) No Conflict. NPS represents and warrants to Memory that the execution of this Agreement
and the performance of the transactions contemplated by this Agreement by NPS will not conflict
with or result in a breach of any of the terms, conditions or
provisions of, or constitute a default under any agreement or other instrument to which NPS is
a party or by which it or any of its property is bound.

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               (c) Right to Grant Licenses. NPS represents and warrants to Memory that it has the right to
grant Memory the licenses and sublicenses that NPS hereby grants to Memory under this Agreement.
NPS represents and warrants to Memory that to the best of its knowledge all Patent Rights owned or
controlled by NPS that are directed to 5-HT6 selective receptor antagonists are included in
Schedule D.

               (d) No Material Misstatements. NPS warrants and represents to Memory that to the best of its
knowledge (i) it has not intentionally failed to disclose any information which would be material
to Memory entering into this Agreement; and (ii) it has provided correct and complete copies of all
documents furnished to Memory.

               (e) NPS Development of 5-HT6 Receptor Antagonists. NPS warrants and represents that it does
not have an active program to develop 5-HT6 receptor antagonists nor does it, as of the Effective
Date and as of the Execution Date, have any plans to pursue such a program.

     14.3 Representations and Warranties of Memory. Memory represents and warrants to NPS that all
corporate action on the part of Memory, its officers, directors and stockholders necessary for (i)
the authorization, execution and delivery of this Agreement and (ii) the performance of all
obligations of Memory hereunder has been taken and this Agreement constitutes the legal and binding
obligation of Memory, enforceable against Memory in accordance with its terms. The execution of
this Agreement and the performance of the transactions contemplated by this Agreement by Memory
will not conflict with or result in a breach of any of the terms, conditions or provisions of, or
constitute a default under any agreement or other instrument to which Memory is a party or by which
it or any of its property is bound.

     14.4 Disclaimer. THE FOREGOING REPRESENTATIONS AND WARRANTIES ARE IN LIEU OF ALL OTHER
REPRESENTATIONS AND WARRANTIES NOT EXPRESSLY SET FORTH HEREIN. NPS AND MEMORY DISCLAIM ALL OTHER
REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO EACH OF THEIR RESEARCH,
DEVELOPMENT AND COMMERCIALIZATION EFFORTS HEREUNDER, INCLUDING, WITHOUT LIMITATION, WHETHER THE
PRODUCTS OR MEMORY PRODUCTS CAN BE SUCCESSFULLY DEVELOPED OR MARKETED, THE ACCURACY, PERFORMANCE,
UTILITY, RELIABILITY, TECHNOLOGICAL OR COMMERCIAL VALUE, COMPREHENSIVENESS, MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE WHATSOEVER OF THE PRODUCTS OR MEMORY PRODUCTS. IN NO EVENT
SHALL EITHER NPS OR MEMORY BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES
ARISING OUT OF THIS AGREEMENT BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY.

ARTICLE 15

CONFIDENTIAL INFORMATION

     15.1 Treatment of Confidential Information. In carrying out rights and obligations under this
Agreement, the Parties will be sharing proprietary information (“Confidential

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Information”) with
each other. Except as permitted by this Agreement, each Party shall and shall cause its Affiliates
to treat Confidential Information received from the other Party as it treats its own proprietary
information. In particular, it shall not disclose, divulge or otherwise communicate such
Confidential Information to Third Parties, or use it for any purpose except pursuant to and in
order to carry out its obligations under this Agreement during the Agreement Term and for a period
of [*] years thereafter; provided that, each Party (i) may disclose the Confidential Information to
such of its directors, officers, employees, Affiliates, consultants, subcontractors, sublicensees
or agents (hereinafter “Other Parties”) to the extent reasonably necessary to carry out its
obligations under this Agreement, provided such Other Parties are bound to confidentiality terms
equivalent to those herein and (ii) hereby agrees to exercise every reasonable precaution to
prevent and restrain the unauthorized disclosure or use of Confidential Information.

     15.2 Release from Restrictions. The provisions of Section 15.1 shall not apply to any
Confidential Information which:

               (a) was known or used by the party receiving the Confidential Information (“Receiving Party”)
or its Affiliates prior to its date of disclosure to the Receiving Party or its Affiliates by the
party disclosing the Confidential Information (“Disclosing Party”) or its Affiliates, as evidenced
by the prior written records of the Receiving Party or its Affiliates, provided such Receiving
Party did not know of such Confidential Information through confidential provisions with NPS or
Affiliates; or

               (b) either before or after the date of the disclosure to the Receiving Party or its
Affiliates, is lawfully disclosed to the Receiving Party or its Affiliates by a Third Party
rightfully in possession of the Confidential Information; or

               (c) either before or after the date of the disclosure to the Receiving Party or its
Affiliates, becomes published or generally known to the public through no fault or omission on the
part of the Receiving Party or its Affiliates, but such inapplicability applies only after such
information is published or becomes generally known; or

               (d) is independently developed by the Receiving Party or its Affiliates without reference to
or reliance upon any Confidential Information of the Disclosing Party or its Affiliates; or

               (e) is reasonably determined to be required to be disclosed by the Receiving Party or its
Affiliates to comply with applicable securities or other laws, to defend or prosecute litigation or
to comply with governmental regulations, provided that, the Receiving Party or its Affiliates uses
all reasonable efforts to provide prior written notice of such disclosure to the Disclosing Party
or its Affiliates and to take reasonable and lawful actions to not be required to disclose and/or
minimize the degree of such disclosure.

               (f) is disclosed to a Party’s financial sources or potential acquirors of its stock or assets
(directly or indirectly) so long as, with respect to a potential purchase the potential acquirer or
financial source executes a confidentiality agreement which is at least as
restrictive as the provisions of this Article 15 (with the exception of the term of the
obligations set forth in this Article 15, which shall be at least [*] years).

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19

 

     15.3 Exceptions. The restrictions set forth in this Article 15 shall not prevent either Party
from (i) preparing, filing, prosecuting or maintaining a patent application or its resulting
patents related to a Product or Memory Product in accordance with the terms of this Agreement or
(ii) disclosing Confidential Information to governmental agencies to the extent required or
desirable to secure Regulatory Approvals for a Product or Memory Product.

     15.4 Publications. During the Agreement Term, the following provisions set forth in
subsections (a) and (b) below shall apply with respect to the disclosure in scientific journals,
publications or scientific presentations by any Party relating to any scientific work relating to
NPS Compounds, and in the case of Memory Compounds the provisions of subsection (c) set forth below
shall apply:

               (a) A Party (the “Publishing Party”) shall provide the other Party with a copy of any proposed
publication relating to the work performed and/or the results achieved in the conduct of the
development of a NPS Compound at least [*] days prior to submission for publication so as to
provide such other Party an opportunity to recommend any changes it reasonably believes are
necessary to preserve the Confidential Information belonging in whole or in part to such other
Party, and the incorporation of such recommended changes shall not be unreasonably refused;

               (b) If such other Party in writing notifies (“Notice”) the Publishing Party, within [*] days
of receipt of the copy of the proposed publication, that such publication in its reasonable
judgment (i) contains an Invention for which the other Party reasonably desires patent protection
or (ii) disclosure to competitors could reasonably be expected to have a material adverse effect on
the commercial value of any Confidential Information, the Publishing Party shall prevent such
publication or delay such publication for a mutually agreeable period of time. In the case of
Inventions, a delay shall be for a period reasonably sufficient to permit the timely preparation
and filing of a patent application(s) or application(s) on the Invention, and in no event less than
[*] days from the date of Notice.

               (c) Memory solely shall initiate all proposed publications relating to the work performed
and/or the results achieved in the conduct of the development of a Memory Compound, will provide
NPS with a copy of such proposed publication at least [*] days prior to the submission of the
publication, and shall reasonably consider comments by NPS before disclosure.

ARTICLE 16

TERM AND TERMINATION

     16.1 Agreement Term. The Agreement Term shall commence on the Effective Date and end, unless
earlier terminated upon the mutual agreement of the Parties or in accordance with the provisions of
this Article 16, on the date of expiration of all royalty and other payment obligations (the
“Expiration Date”) under this Agreement. Upon the occurrence of the Expiration Date, the license
granted under this Agreement to make, have made, use, have used,
offer for sale, sell, import, export, register and/or market Products and/or Memory Products
shall be fully paid-up.

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     16.2 Termination for Breach. Each Party (“Non-Breaching Party”) shall be entitled to
terminate this Agreement by written notice to the other Party (“Breaching Party”) in the event that
the Breaching Party is in default of any of its material obligations hereunder (other than a
default by Memory of its obligations pursuant to Article 3 hereof, which shall be governed solely
by Section 16.3(e) below) and fails to remedy such default within [*] days ([*]) days for payment
defaults) after provision of written notice thereof by the Non-Breaching Party. Any such notice
shall specifically state that the Non-Breaching Party intends to or reserves the right to terminate
this Agreement in the event that the Breaching Party shall fail to timely remedy the default.

          The effective date of termination under this Section for breach of a material obligation shall
be the date [*] days after provision of written notice thereof by the Non-Breaching Party.

          In the event Memory does not pay any full payment by reason of a good faith dispute as to
whether such payment is due pursuant to the terms of this Agreement, NPS shall not have the right
to terminate this Agreement as a result of such nonpayment until resolution of the dispute pursuant
to Article 17.

     16.3 NPS’s Right to Terminate.

               (a) Intentionally Omitted.

               (b) Intentionally Omitted.

               (c) Intentionally Omitted.

               (d) Intentionally Omitted.

               (e) In the event that both Memory is in default of Article 3 hereof and Memory fails to remedy
such default and failure within [*] after provision of written notice thereof by NPS, then NPS
shall have the unilateral right to terminate the Agreement [*]. The effective date of termination
shall be [*] days after [*].

     16.4 Memory’s Right to Terminate. In the event that Memory determines it has a scientific
and/or technical problem relating to the development and/or Regulatory Approval of NPS Compound,
Memory Compound, Product and/or Memory Product, or an economic and/or business problem relating to
the development, Regulatory Approval, and/or marketing of any NPS Compound, Memory Compound,
Product and/or Memory Product, Memory shall have the unilateral right to terminate this Agreement
upon written notice to NPS. The effective date of termination will be [*] days after provision of
written notice by Memory.

     16.5 Consequences of Termination. Upon any termination of this Agreement in its entirety
pursuant to Sections 16.1—16.4, or termination of this Agreement by NPS in its entirety, the
rights and licenses of any kind or nature granted by NPS to Memory under this Agreement
shall terminate on the effective date of termination. In the event of any such termination,
the following shall apply:

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               (a) Memory shall, upon NPS’s written request, assign and transfer to NPS, or its Affiliates as
requested by NPS, at no expense to NPS, or its Affiliates, and free of any liens, pledges or
security interests other than those incurred in the commercialization of the Product, all of
Memory’s right, title and interest in and to (i) all trademarks and trademark applications used or
intended for use specifically for the relevant Product(s), (ii) all regulatory filings (such as
INDs and drug master files), Regulatory Approvals, and clinical trial agreements (to the extent
assignable and not cancelled) for the relevant Product(s), and (iii) all data, including clinical
data, materials and information of any kind or nature whatsoever, in Memory’s possession or in the
possession of its Affiliates or sub-licensees, or its or their respective agents, related to the
relevant Product(s), (iv) all rights relating to the infringement of NPS Patent Rights, related to
the relevant Product(s) and (v) all patents/patent applications filed, owned or controlled by
Memory, its Affiliates or sublicensees Covering the Product(s). Without limiting the generality of
the preceding sentence, NPS shall, upon such transfer, have the right to disclose such filings,
approvals and data to (i) governmental agencies of the country or region to the extent required or
desirable to secure government approval for the development, manufacturing, marketing or sale of
Product in the country or region, (ii) Third Parties acting on behalf of NPS, its Affiliates or
sublicensees, to the extent reasonably necessary or desirable for the development, manufacture,
marketing or sale of Product in the country or region, and (iii) Third Parties to the extent
reasonably necessary or desirable to develop, manufacture, market, or sell Product in the country
or region. All such filings, approvals, patents/patent applications, proceedings, rights and data
transferred to NPS pursuant to this Section 16.5 shall be deemed to be NPS Confidential
Information.

               (b) Upon NPS’s written request, Memory shall supply, or cause to be supplied, to NPS, its
Affiliates or its licensee’s the clinical and/or commercial supplies of Product(s), pursuant to a
supply agreement to be negotiated in good faith by the Parties, provided that (i) such requirements
shall be supplied to NPS, its Affiliates or its licensee at Memory’s direct manufacturing costs and
allocation of manufacturing overhead, and (ii) Memory’s supply obligation shall not continue for
more than [*] after such termination, and (iii) Memory shall maintain the same Product(s) quality
and specifications as immediately prior to notice of termination, and (iv) as to other terms, such
agreement shall be reasonably consistent with Memory’s other arm’s length supply agreements, and
(v) NPS shall use reasonable best efforts to effect a transfer as soon as practicable of Product(s)
manufacturing activities from Memory to another supplier. In addition, Memory shall also transfer
to NPS and its designated supplier a manufacturing transfer package that will enable NPS or such
designated supplier to manufacture the Product(s) in a timely manner.

               (c) Subject to Section 16.5(d), in the event any NPS Compound or Product is commercialized by
NPS or its licensee, which NPS Compound or Product has completed [*], then NPS shall pay a Royalty
on Net Sales of Products of [*] for the longer of [*] years from first Launch or end of patent
protection in a country. Thereafter, the license is fully paid up and irrevocable.

               (d) In the event any NPS Compound or Product is commercialized by NPS or its licensee, which
NPS Compound or Product has completed [*], in lieu of the amount set forth in Section 16.5(c), then
NPS shall pay a Royalty on Net Sales of Products of [*] for the

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longer of [*] years from first Launch or end of patent protection in a country. Thereafter,
the license is fully paid up and irrevocable.

               (e) If, upon termination of this Agreement by NPS pursuant to Section 16.3, NPS notifies
Memory in writing that NPS desires to obtain a license with respect to the Memory Compounds, NPS
shall have the right to negotiate with Memory for not more than [*] days the right to obtain such
license, provided that Memory’s only obligation shall be to negotiate in good faith (but, by
example, not to reach agreement).

               (f) Memory shall take prompt actions, including the execution of such instruments, agreements
and documents, as are necessary or desirable to effect its obligations described in Sections
16.(4)(a) and (b). It is agreed such transfers and actions shall be completed in a manner that
will permit NPS to continue without interruption the business of developing, manufacturing,
marketing and selling the Product(s).

     16.6 Royalty and Payment Obligations. Termination of this Agreement by either Party for any
reason will not release a Party from any obligation to pay royalties or make any payments, which
were accrued prior to the effective date of termination (including for sales made and events
achieved under Article 4, prior to the date of termination). However, except as specifically
provided in the immediately following sentence, termination of this Agreement by either Party for
any reason will release a Party from any obligation to pay royalties or make any payments, which
would have otherwise become accrued after the effective date of termination. Solely upon
termination by NPS of this Agreement pursuant to Section 16.2 or Section 16.3 or by Memory of this
Agreement pursuant to Section 16.4, Memory’s obligation to make royalty payments with respect to
Memory Products (but not, for the avoidance of doubt, with respect to Products) which would have
otherwise terminated from and after the effective date of termination pursuant to Section 16.2,
Section 16.3 or Section 16.4, as the case may be, shall continue as provided in the Agreement.

     16.7 Survival of Obligations. Section 2.2(d), Article 6 (except for Section 6.2), Section
13.1, Section 13.7, Article 15, Section 16.5, Section 16.6, Section 16.7, Article 17, Article 18,
and any definitions used in such Section of Article, shall survive the termination of this
Agreement in its entirety.

ARTICLE 17

ARBITRATION

Any dispute, controversy or claim (“Dispute”) arising out of or in relation to this Agreement, or
the breach, termination or invalidity thereof, that cannot be settled amicably by the Parties after
a good faith discussion to resolve the Dispute by the appropriate officers of the Parties, shall be
submitted by either Party to arbitration conducted in accordance with the rules then in effect of
the American Arbitration Association (“AAA”). Arbitration shall take place in Newark, New Jersey
and shall be conducted by three (3) arbitrators, one of whom shall be designated by each Party, and
the third selected by the other two (2) arbitrators, all within the time limits established by the
then existing rules of the AAA. If the two (2) designated arbitrators are unable to agree upon a
third arbitrator by two (2) months after submission of the matter to arbitration, the AAA shall
select such third arbitrator within three (3) months of such original submission. The written

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decision of the arbitrators shall be made within one (1) year of the selection of the third
arbitrator and shall be final and binding on the parties and may be enforced in any court having
jurisdiction over the Parties or their current assets. The award rendered by the arbitrators shall
include the cost of arbitration, reasonable attorneys’ fees and reasonable costs for expert and
other witnesses, and in the event of a termination a transition procedure, including the
performance of transition services by Memory, so as to maintain the value of the assets being
transferred to NPS and, to the extent contemplated by Section 16.5, permit NPS to conduct the
business being transferred to it. The parties shall be entitled to discovery as provided in the
Federal Rules of Civil Procedure. If the issues in dispute involve scientific or technical
matters, at least one of the arbitrators chosen hereunder shall have educational training and/or
experience sufficient to demonstrate a reasonable level of knowledge in the Field and
pharmaceutical drug development. Notwithstanding the preceding provisions of this Article 17,
with respect to any breach or threatened breach of this Agreement of Section 15.1, 16.2 or any
other provision where a Party would not be appropriately compensated by the payment of money, a
party has a right to seek injunctive relief from any court of competent jurisdiction to enjoin such
breach or threatened breach and/or to seek specific performance.

In the event of a Dispute, a Party shall have no right to toll or delay any obligation in this
Agreement unrelated to the Dispute as a result of the Dispute. By way of example, if Memory owes
NPS $2,000,000 and claims a $1,000,000 payment is not due by reason of breach of NPS, then Memory
shall pay the $2,000,000, and the parties will resolve such $1,000,000 Dispute pursuant to Article
17.

ARTICLE 18

MISCELLANEOUS

     18.1 Indemnification.

               (a) Memory agrees to defend NPS and the other NPS Indemnified Parties at Memory’s cost and
expense, and will indemnify and hold NPS and its directors, officers, employees and agents (the
“NPS Indemnified Parties”) harmless from and against any claims, losses, costs, damages, fees or
expenses arising out of or otherwise relating to (i) activities of Memory and its Affiliates or
sublicensees in the conduct of the License, (ii) the development, manufacture, use, offer for sale,
sale or other disposition of any Product by Memory, its Affiliates or sublicensees, and each of
their distributors, representatives or anyone in privity therewith, or (iii) the gross negligence
or willful misconduct of Memory, its Affiliates, sublicensees, distributors, representatives or
anyone in privity therewith. In the event of any such claim against the NPS Indemnified Parties by
a Third Party, NPS shall promptly notify Memory in writing of the claim (provided that any failure
or delay to notify shall not excuse any obligations of Memory except to the extent Memory is
actually prejudiced thereby) and Memory shall solely manage and control, at its sole expense, the
defense of the claim and its settlement provided further that Memory shall not settle any such
claim, if such settlement may have an adverse effect on NPS, without the prior written consent of
NPS, which consent shall not be unreasonably withheld. The NPS Indemnified Parties shall cooperate
with Memory and may, at their option and expense, be represented in any such action or proceeding.
Memory shall not be

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liable for any litigation costs or expenses incurred by the NPS Indemnified Parties without
Memory’s written authorization.

               (b) NPS agrees to defend Memory and the other Memory Indemnified Parties at NPS’s cost and
expense, and will indemnify and hold Memory and its directors, officers, employees and agents (the
“Memory Indemnified Parties”) harmless from and against any claims, losses, costs, damages, fees
and expenses arising out of any claim, arising out of or otherwise relating to (i) activities of
NPS in the conduct of the License, (ii) the development, manufacture, use, offer for sale, sale or
other disposition of any Product by NPS, its Affiliates, licensees other than Memory, sublicensees
and each of their distributors, representatives or anyone in privity therewith, and (iii) the gross
negligence or willful misconduct of NPS, its Affiliates, licensees, distributors, representatives
or anyone in privity therewith. In the event of any such claim against the Memory Indemnified
Parties by an Independent Third Party, Memory shall promptly notify NPS in writing of the claim
(provided that any failure or delay to notify shall not excuse any obligation of NPS except to the
extent NPS is actually prejudiced thereby) and NPS shall solely manage and control, at its sole
expense, the defense of the claim and its settlement provided further that NPS shall not settle any
such claim if such settlement may have an adverse effect on Memory without the prior written
consent of Memory, which consent shall not be unreasonably withheld. The Memory Indemnified
Parties shall cooperate with NPS and may, at their option and expense, be represented in any such
action or proceeding. NPS shall not be liable for any litigation costs or expenses incurred by the
Memory Indemnified Parties without NPS’s written authorization.

     18.2 Each Party shall to the extent consistent with applicable laws and regulations limit the
disclosure of the financial terms set forth in this Agreement (such as by requesting confidential
treatment of such terms in documents required to be filed with the US Securities and Exchange
Commission). Neither Party shall originate any publicity, news release, or other public
announcement (with the exception of disclosures in scientific journals, publications, or scientific
presentations that will be controlled by Section 15.4), written or oral, relating to this Agreement
(including without limitation, the terms of this Agreement) without the prior approval of the other
Party (such approval not to be unreasonably withheld) except solely to the extent a Party
reasonably believes same is otherwise required by law. In the event prior approval is not provided
within [*] days of notice of the publicity, the Party originating the publicity may proceed with
the publicity.

     18.3 Force Majeure. Neither Party to this Agreement shall be responsible to the other Party
for nonperformance or delay in performance of the terms or conditions of this Agreement due to acts
of God, acts of governments, war, riots, strikes, accidents in transportation, or other causes
beyond the reasonable control of such Party, but such force majeure shall toll any and all
obligations and time periods for so long as such force majeure continues.

     18.4 Bankruptcy. All licenses (and to the extent applicable rights) granted under or pursuant
to this Agreement by NPS to Memory are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of Title 11, US Code (the “Bankruptcy Code”), licenses of rights to “intellectual
property” as defined under Section 101(60) of the Bankruptcy Code. Unless Memory elects to
terminate this Agreement under Article 16, the Parties agree that Memory, as a licensee or
sublicensee of such rights under this Agreement, shall retain and may fully exercise

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all of its rights and elections under the Bankruptcy Code, subject to the continued
performance of its obligations under this Agreement.

     18.5 Governing Law. This Agreement shall be governed by and interpreted in accordance with the
laws of New Jersey without giving effect to principles of conflicts of law.

     18.6 Waiver. The waiver by a Party of a breach or a default of any provision of this Agreement
by the other Party shall not be construed as a waiver of any succeeding breach of the same or any
other provision, nor shall any delay or omission on the part of a Party to exercise or avail itself
of any right, power or privilege that it has or may have hereunder operate as a waiver of any
right, power or privilege by such Party.

     18.7 Notices. Any notice or other communication in connection with this Agreement must be in
writing and may be given by any of the following methods: (i) personal delivery against a signed
receipt; (ii) registered or certified mail, postage prepaid, return receipt requested; or (iii) by
overnight delivery service which obtains a signed receipt. Notice shall be effective when
delivered to the addressee at the address listed below or such other address as the addressee shall
have specified in a written notice actually received by the addresser.

     If to Memory:

               Memory Pharmaceuticals Corp.

               100 Philips Parkway

               Montvale, New Jersey 07645

               Attn: Head of Business Development

     and

               Sills Cummis Epstein & Gross P.C.

               One Riverfront Plaza

               Newark, New Jersey 07102

               Attn: Ira A. Rosenberg, Esq.

     If to NPS:

               NPS Pharmaceuticals, Inc.

               Morris Corporate Center 1

               4th Floor, Building 8

               300 Interpace Parkway

               Parsippany, New Jersey 07054

               Attn: Head of Business Development

     and

               NPS Pharmaceuticals, Inc.

               Morris Corporate Center 1

               4th Floor, Building 8

               300 Interpace Parkway

[*] CONFIDENTIAL TREATMENT IS REQUESTED

26

 

               Parsippany, New Jersey 07054

               Attn: General Counsel

     18.8 No Agency. Nothing herein shall be deemed to constitute either Party as the agent or
representative of the other Party. Each Party shall be an independent contractor, not an employee
or partner of the other Party. Each Party shall be responsible for the conduct of activities at
its own facilities and for any liabilities resulting therefrom. Neither Party shall be responsible
for the acts or omissions of the other Party, and neither Party will have authority to speak for,
represent or obligate the other Party in any way without prior written authority from the other
Party.

     18.9 Entire Agreement. This Agreement and the Schedules hereto (which Schedules are deemed to
be a part of this Agreement for all purposes) contain the full understanding of the Parties with
respect to the subject matter hereof and supersede all prior understandings and writings relating
thereto. No waiver, alteration or modification of any of the provisions hereof shall be binding
unless made in writing and signed by the Parties.

     18.10 Headings. The headings contained in this Agreement are for convenience of reference only
and shall not be considered in construing this Agreement.

     18.11 Severability. In the event that any provision of this Agreement is held by a court of
competent jurisdiction to be unenforceable because it is invalid or in conflict with any law of any
relevant jurisdiction, the validity of the remaining provisions shall not be affected, and the
Parties shall negotiate a substitute provision that, to the extent possible, accomplishes the
original business purpose. During the period of such negotiation, and thereafter if no substituted
provision is agreed upon, any such provision which is enforceable in part but not in whole shall be
enforced to the maximum extent permitted by law.

     18.12 Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be
assigned by either Party without the prior written consent of the other Party, except to an
Affiliate of the assigning Party or to any other party who acquires all or substantially all of the
pharmaceutical business of the assigning Party by merger, sale of assets or otherwise, so long as
such Affiliate or other party agrees in writing to be bound by the terms of this Agreement.

     18.13 Successors and Assigns. Except as otherwise provided herein, this Agreement shall be
binding upon and inure to the benefit of the Parties hereto and their successors and permitted
assigns under Section 18.12.

     18.14 Interpretation. The words “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation.” All references herein to Articles, Sections, and
Schedules shall be deemed references to Articles and Sections of, and Schedules to, this Agreement
unless the context shall otherwise require. Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance with international
accounting standards (“IAS”), as in effect from time to time. Unless the context otherwise
requires, countries shall include territories.

[*] CONFIDENTIAL TREATMENT IS REQUESTED

27

 

     18.15 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original but all of such together shall constitute one and the same
instrument.

[*] CONFIDENTIAL TREATMENT IS REQUESTED

28

 

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in their
names by their properly and duly authorized officers or representatives as of the dates below
written.

	 	 	 	 	 	 	 	 	 	 	 
	NPS ALLELIX CORP.	 	MEMORY PHARMACEUTICALS CORP.  
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ N. Anthony Coles	 	 
	 	By:
	 	/s/ James R. Sulat	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Title: President & CEO
	 	 	 	 	 	Title: President & CEO	 	 

[*] CONFIDENTIAL TREATMENT IS REQUESTED

29

 

Schedule A

MEMORY COMPOUNDS

[*]

[*] CONFIDENTIAL TREATMENT IS REQUESTED

30

 

Schedule B

MEMORY PATENT RIGHTS

[*]

[*] CONFIDENTIAL TREATMENT IS REQUESTED

31

 

Schedule C

NPS COMPOUNDS

[*]

[*] CONFIDENTIAL TREATMENT IS REQUESTED

32

 

Schedule D

NPS PATENT RIGHTS

[*]

[*] CONFIDENTIAL TREATMENT IS REQUESTED

33

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