Document:

Exhibit 10.8 Share Purchase Agreement

Exhibit 10.8

DATED                                                                22 September 2010

SINGAPORE 

VOLITION

 

Pte

 

LIMITED

and

VALIRX PLC

_______________________________________________________

AGREEMENT

for the sale and purchase of securities in

ValiBIO SA

_______________________________________________________

Challoner House,

19 Clerkenwell Close,

London,

EC1R 0RR

Dx Box No. 53324 Clerkenwell

Tel. No: +44 (0) 20 7689 7000

Fax No: +44 (0) 20 7689 7001

Email: lawyers@rooksrider.co.uk

www.rooksrider.co.uk

Ref: AJC/GCD/SYR/VAL019-003

AGREEMENT FOR SALE AND PURCHASE OF SHARES

DATE   this  22 day of September 2010

PARTIES 

(1)

ValiRx PLC (incorporated and registered in England and Wales under company number 3916791 the registered office of which is at 24 Greville Street, London EC1N 8SS (the "Seller"); and

(2)

Singapore 

Volition Pte

.. Limited

 incorporated and registered in Singapore under company number 

201016543R

 the registered office of which is at 165 Gangsa Road, Unit 01-70 Singapore 670165 (the "Purchaser").

WHEREAS

(A)

The Seller is the registered owner of the Shares outstanding shares in ValiBio SA of 25 Avenue Georges Lemaître, 6041 Gosselies, Belgium (the “Company”).

(B)

The Purchaser has agreed to purchase all the Shares registered in the name of the Seller (see Schedule 1) on the terms and subject to the conditions hereinafter contained.

(C)

The Company is described as a diagnostic development company described in full outline in the draft business plan appended to the Disclosure Letter and is subject to amendment and refinement as agreed in writing by the parties.

(D)

The Company has secured the patents outlined in Schedule 6 through the patent licence agreements detailed in Schedule 

7.

(E)

The Company is the owner of the Domain Names/Websites and the Unregistered Business IP set out in Schedule 6.

IT IS AGREED AS FOLLOWS: 

1.

DEFINITIONS 

1.1

General definitions 

In this agreement, the following definitions apply: 

"Accounts" 

the Company's audited annual accounts for the financial year ended on the Last Accounting Date, the auditors' report on those accounts and the directors' reports for that year prepared in accordance with GAAP; 

"Average Subscription Price" 

means the amount of equity raised by the Purchaser after the date of this agreement divided by the number of shares issued (or to be issued) for this equity investment ; 

"Business Day" 

a day (other than Saturday or Sunday) on which banks are open for commercial business in the City of London; 

"Charge"

means the charge over the Shares to be granted by the Purchaser to the Seller in the agreed form;

"Claim" 

a Relevant Claim or a Tax Claim; 

"Company"

ValiBio SA, 25 Avenue Georges Lemaître, 6041, Gosselies, Belgium (see Schedule 2 for full details);

"Completion" 

Completion of the sale and purchase of the Shares in accordance with clause 5; 

"Confidential Information" 

all trade secrets, data, Know-How and other such information which is for the time being publicly known, used in or otherwise relating to the Company's business (including future business plans), products, services, customers, suppliers and financial or other affairs; 

"Consideration”  

The consideration to be paid by the Purchaser to the Seller as described in Clause 4;

"Disclosure Letter" 

the letter in the agreed form from the Seller to the Purchaser in relation to the Warranties having the same date as this agreement including the bundle of documents attached to it (Disclosure Bundle); 

"Encumbrance" 

a mortgage, charge, pledge, lien, hypothecation, option, restriction, right of first refusal, right of pre-emption, right of set-off, third-party right or interest, assignment by way of security, other encumbrance or security interest of any kind, or another type of preferential arrangement (including a title transfer or retention arrangement) having similar effect howsoever arising;

“GAAP”

means generally accepted accounting principles;

"Know-How" 

all industrial and commercial processes, data, methodology and techniques not at present in the public domain; 

"Intellectual Property" 

(a) patents, registered trademarks, service marks, registered designs, applications for any of those rights, trade, business and domain names, unregistered trademarks and service marks, copyrights and topography rights including rights in computer software, unregistered design rights, know-how, rights in inventions and Confidential Information; 

(b) the sui generis right for the maker of a database to prevent extraction or re-utilisation or both of the whole or a substantial part of the contents of that database, as described in Directive 96/9/EC on the legal protection of databases; and 

(c) rights under licences, consents, orders, statutes or otherwise in relation to a right described in sub-paragraphs (a) and (b) of this definition; in each case in any jurisdiction; 

"Intellectual Property Rights (IPR)" 

all Intellectual Property owned, used, or required to be used, by the Company in, or in connection within its business; 

"Last Accounting Date" 

31 December 2009

"Management Accounts" 

the Company's unaudited balance sheet and profit and loss account for each Quarter starting on the day after the Last Accounting Date until Completion plus management accounts to the end of the last full calendar month before Completion where Completion does not follow a quarterly reporting period.

"Patent Licence Agreements"

the two Licence Agreements entered into between the Seller and the Company dated 08 March 2010 pursuant to which the Intellectual Property Rights are granted to the Company.

- 3 -

"Purchasers Solicitors" 

Abbott Cresswell LLP – Solicitors, 179 Upper Richmond Road West London SW14 8DU

"Relevant Claim" 

a claim by the Purchaser involving or relating to a breach of Warranty other than under Clause 6.12; 

"Shares" 

9023 shares in the Company held by the Seller as set out in Schedule 1

 or such other amount of shares representing all of the outstanding shares, rights or interests in the Company other than the two (2) shares held in the name of Patrick Rousseau

; 

"Tax" or "Taxation" 

any form of tax (including, but not limited to, income tax required to be deducted or withheld or accounted for in respect of any payment), levy, impost, duty, charge, contribution (including, but not limited to, National Insurance contributions), deduction or withholding whenever imposed, collected or assessed by, or payable to, a Taxation Authority and any penalty, charge, cost and interest included in or relating to any of the above or to any obligation in respect of any of the above and any liability to make a payment by way of reimbursement, recharge, indemnity, damages or management charge connected in any way with any taxation (in all cases, regardless of whether such taxes, penalties, charges, costs and interest are directly or primarily chargeable against, recoverable from or attributable to the Company or any other person and regardless of whether the Company has, or may have, any right of reimbursement against any other person); 

"Taxation Authority" 

any government, state or municipality or any local, statutory, federal or other fiscal, revenue, customs or excise authority, body or official in the United Kingdom or elsewhere; "Tax Claim" a claim by the Purchaser involving or relating to a breach of Tax Warranty; " 

"Tax Warranties" 

the warranties given by the Seller in Schedule 4; 

"Warranties" 

means the warranties contained in Schedule 3 and clause 6 of the Agreement and, (unless expressly provided to the contrary or not permitted by the context) the Tax Warranties in Schedule 4; and “Warranty” means any of them;

"Wallonia Agreement" 

means the agreement with the Region of Wallonia, Belgium, pursuant to which funding in the form of a soft loan may be received by the Company as attached to the Disclosure Letter;

2.

INTERPRETATION 

2.1

In this agreement: 

2.1.1

the contents page and clause headings are for convenience only and do not affect its construction; 

2.1.2

words denoting the singular include the plural and vice versa; 

2.1.3

words denoting one gender include each gender and all genders. 

2.2

In this agreement, unless otherwise specified or the context otherwise requires, a reference to: 

2.2.1

a person is to be construed to include a reference to any individual, firm, partnership, company, corporation, association, organisation or trust (in each case whether or not having a separate legal personality); 

- 4 -

2.2.2

a document, instrument or agreement (including, without limitation, this agreement) is a reference to any such document, instrument or agreement as modified, amended, varied, supplemented or notated from time to time;

2.2.3

a clause or schedule is a reference to a clause of or schedule to this agreement and a reference to this agreement includes its schedules;

2.2.4

writing shall include any mode of reproducing words in a legible and non-transitory form; and

2.2.5

the "agreed form" is a reference to a document in a form agreed prior to the date of this agreement and for the purposes of identification signed by or on behalf of each party.

2.3

A reference in clause 6, 

Schedule

 3 or

 

Schedule

 4 to a person's knowledge, information, belief or awareness is deemed to include the knowledge, information, belief or awareness which the relevant person would have had if he had made all reasonable enquiries of the Seller and the Company’s professional advisers and all publicly available Registers relating to the Intellectual Property Rights. 

3.

SALE AND PURCHASE OF THE SHARES

3.1

The Seller agrees to sell that number of Shares as are shown against its name in Schedule 1 and the Purchaser, relying on the representations, Warranties and undertakings set out and referred to in this Agreement, agrees to purchase the Shares with effect from Completion for the Consideration as set out in Clause 4.

3.2

The Seller covenants with the Purchaser in relation to the Shares that: 

3.2.1

the full legal and beneficial interest in the Shares will be transferred to the Purchaser at Completion on the terms set out in this agreement; 

3.2.2

the Shares will be sold with full title guarantee free from all claims, liens, charges, equities, encumbrances and adverse rights of any description and together with all rights attached to them at the date of this agreement or subsequently becoming attached to them;

3.2.3

it shall (and shall insofar as it is able procure that any necessary third party shall) at the expense of the Seller, do, execute and perform all such further acts, deeds, documents and things as the Purchaser may reasonably request to vest its Shares in the Purchaser.

3.3

The Seller shall waive all restrictions on transfer (including pre-emption rights) which may exist in relation to the Shares whether under the Articles or otherwise. 

3.4

The Purchaser shall not be obliged to complete the purchase of any of the Shares unless the sale and purchase of all of the shares held by the Seller shall at the same time complete, but completion of the purchase of some of the Shares will not affect the rights of the parties with respect to the purchase of the other Shares. 

4.

CONSIDERATION 

The total consideration payable to the Seller for the sale of the Shares shall, subject to Clause 5.3C, be:

4.1

US $400,000 payable to the Seller’s Account (the details are listed in Schedule 8) in four equal payments of US $100,000 which, subject to the deduction of payments due directly to Chroma Therapeutics Limited (Chroma) under the terms of the Deed of Novation dated on or around the date of this agreement shall be paid according to the following payment schedule or earlier at the sole discretion of the Purchaser:  

4.1.1

US $100,000 payable on the date of Completion which shall be received by the Seller no later than 15 October 2010;

4.1.2

US $100,000 payable 90 days after the date of Completion;

4.1.3

US $100,000 payable 180 days after the date of Completion; and

4.1.4

US $100,000 payable 270 days after the date of Completion.

4.2

Stock with a value of US $600,000 (the “Consideration Shares”) in the Purchaser or a newly listed entity which, subject to such stock being distributed directly to Chroma under terms of the Deed of Novation dated on or around the date of this agreement, shall:

- 5 -

4.2.1

if the Purchaser is listed or if a newly listed entity is created following the merger or reverse takeover of the Purchaser with this listed entity, be distributed to the Seller between 60 and 90 days following the listing, merger or reverse takeover of the Purchaser with the price per share used to calculate the number of shares issued to the Seller to be determined by the 30 day average closing middle market price immediately prior to the issue of the shares to the Seller; or

4.2.2

if the Purchaser is not listed within 350 days of the date of this agreement, be distributed to the Seller with the price per share used to calculate the number of shares issued to the Seller to be equal to the Average Subscription Price at which the Purchaser has raised capital during this period; or

4.2.3

be issued to the Seller, by mutual consent in writing, at a price per share to be agreed between the Parties at any time prior to the Consideration Shares being issued under clause4.2.1 or clause 4.2.2.

whichever of the above occurs first.

4.3

The Consideration Shares shall subject to any regulatory requirements of the exchange in the case of a listing, merger or reverse takeover of the Purchaser, rank pari passu with the existing ordinary shares in the Purchaser (or the listed entity) including the right to receive all dividends declared, made or paid after Completion on condition that:

4.3.1

all the terms, conditions and obligations of the Seller as set out in this Agreement having been completed; and

4.3.2

the Seller comply with the disposal warranty in Clause 6.7.

4.4

If 

prior to the shares of the Purchaser being listed on a recognised exchange, 

the Purchaser proposes to allot any shares, those shares shall not be allotted to any person unless the Purchaser has first offered them to the Seller on the same terms, and at the same price, as those shares are being offered to other persons on a pari passu and pro rata basis to the number of shares in the Purchaser held by the shareholders (as nearly as possible without involving fractions) as if the Consideration Shares had been issued.

4.5

The Purchaser shall not, without the prior written consent of the Seller, such consent not to be unreasonably withheld or delayed:

4.5.1

amend the Purchaser’s articles of association or the Purchaser 's memorandum of association; 

4.5.2

create any new shares or securities having any rights preferential to the rights attaching to the Consideration Shares; or

4.5.3

dispose of the whole (or part) of the Purchaser 's undertaking, other than pursuant to a bona fide arms length transaction with a party which is not connected to the Purchaser of any of its shareholders.

4.6

If, in one or a series of related transactions, one or more shareholders in the Purchaser propose to transfer any of their shares in the Purchaser which would, if carried out, result in any person (the Bidder) (and any person acting in concert with the Bidder), acquiring at least 50 per cent of the shares in the Purchaser, the Purchaser shall procure that the Bidder makes an offer to the other shareholders in the Purchaser to buy all of the Purchaser’s shares in issue for a consideration in cash per share that is at least equal to the highest price per share offered or paid by the Bidder, (or any person acting in concert with the Bidder) in the proposed transfer or in any related previous transaction in the twelve months preceding the date of the proposed transfer.

5.

COMPLETION 

5.1

Time and place of Completion 

Completion shall take place at the offices of the Purchaser's Solicitors (or such other offices as agreed by the parties) on the date of the satisfaction of the mutual conditions contained in Clauses 5.3, 5.4 and 5.5 which shall take place no later than 15 October 2010.

5.2

Condition

This Agreement is conditional upon and not enforceable until all the Terms and Conditions set out in Clauses 5.3, 5.4 and 5.5 have been fulfilled by both the Purchaser and the Seller.

- 6 -

5.3

Seller’s obligations 

A. At Completion the Seller shall deliver (or procure to be delivered) to the Purchaser (where appropriate as agent for the Company): 

5.3.1

a duly executed transfer of the Shares;

5.3.2

a copy of the Board Resolution or Minutes (certified by an officer as true and correct) authorising the execution by the Seller of this Agreement and the performance of its obligations hereunder;

5.3.3

the Accounts and the Management Accounts;

5.3.4

a complete list of all creditors, debts, obligations and liabilities (including accrued debts, obligations and liabilities) detailing amounts due and terms of payment (the “Assumed Debts”) (which for the avoidance of doubts shall exclude any invoices from the Seller other than those payable under Clause 5.4.4);

5.3.5

letters of resignation in the agreed form from such of the directors and the secretaries of the Company as the Purchaser shall direct;

5.3.6

all charge, credit or cash cards for the use of any of the resigning directors issued in the name of, or guaranteed by the Company;

5.3.7

the Disclosure Letter

5.3.8

an executed deed of Novation between Chroma Therapeutics Limited (1), the Seller (2), the Company (3), and the Purchaser (4) agreeing to novate the existing licence between Chroma Therapeutics Limited  and the Seller directly to the 

Purchaser

; 

5.3.9

a Consultancy Agreement entered into by the Seller and the Purchaser; and

5.3.10

a letter of comfort from the NOMAD of the Seller.

B. Except as otherwise provided in Clause 5.4.3, the Seller shall retain responsibility for, and indemnify the Company against, any claim for payment of the Assumed Debts listed in accordance with Clause 5.3.4.

C.  The Purchaser may deduct any Assumed Debts not settled, cancelled or cleared within 80 days after the date of Completion (except as provided in Clause 5.4.3) from the next tranche of Consideration payable under Clause 4.1.

5.4

Purchaser's obligations

At Completion the Purchaser shall:

5.4.1

pay the first tranche of the payments set out in section 4.1.1 and agree to the subsequent payments as set out thereafter in section 4.1 no later than 15 October 2010;

5.4.2

appoint Satu Vainikka and George Morris to the Board of the Purchaser or, if the Purchaser merges or completes a reverse takeover with another Company, then to the top controlling Board of the Purchaser.

5.4.3

be responsible for no more than €10,000 of the Assumed Debts listed in accordance with Clause 5.3.4.

5.4.4

be obliged to procure that the Company pays to the Seller, subject to and promptly upon receipt of payment from Wallonia, any eligible claims that may have accrued up to and including the date of Completion, pursuant to the Wallonia Agreement, it being understood that the Seller’s representative – Satu Vainikka - and its agents shall have reasonable access to audit and to review the books and records of the Company, and to discuss with the Company’s relevant personnel, in order to assist in determining eligibility of such claims; and

5.4.5

enter into a side letter with the Seller in the agreed form relating to claims under the Wallonia Agreement.

- 7 -

5.5

Mutual Obligations

At Completion the Seller and the Purchaser shall enter into the Charge.

6.

WARRANTIES 

6.1

The Seller warrants to the Purchaser (for itself and for its successors and assigns) on the date hereof in the terms of the Warranties. 

6.2

Each of the Warranties and the Tax Warranties shall be construed as a separate and independent provision. 

6.3

The Seller waives any and all claims which they might otherwise have in respect of any misrepresentation, inaccuracy in or omission from any information or advice supplied or given by the Company or its officers, employees or advisers, to enable them to give the Warranties or the Tax Warranties. 

6.4

The Seller acknowledges that the Purchaser is entering into this agreement in reliance on each Warranty and Tax Warranty with the intention of inducing the Purchaser to enter into this agreement on the basis of and in full reliance upon them. 

6.5

The Warranties are qualified by the facts and circumstances fairly and specifically disclosed in the Disclosure Letter. No other knowledge relating to the Company (actual, constructive or imputed) prevents or limits a claim made by the Purchaser for breach of clause 6.1 or 6.2. The Seller may not invoke the Purchaser's knowledge (actual, constructive or imputed) as a defence to a claim for breach of clause 6.1.

6.6

The Seller waives and may not enforce a right which they may have in respect of a misrepresentation, inaccuracy or omission in or from information or advice supplied or given by the Company or a director, officer or employee of the Company for the purpose of assisting the Seller to make a representation, give a Warranty or a Tax Warranty or prepare the Disclosure Letter. 

6.7

The Seller warrants that the shares allocated under Clause 4.2 shall:

6.7.1

not be disposed of within the first twelve months after being allocated to the Seller without the prior written consent of the Purchaser (such consent not to be unreasonably withheld); and

6.7.2

in the following twelve (12) month period shall then only be disposed of in an orderly market manner, with notice to be provided to the Purchaser for any disposal in excess of 1% of the Seller’s holding to permit the Purchaser to source a potential buyer. Thereafter the shares allocated under Clause 4.2 may be disposed of at the absolute discretion of the Seller.

6.8

Clause 6.7 does not prevent the Seller from disposing of any Consideration Shares in the following circumstances:

6.8.1

where such disposal is made in the acceptance of any offer made by any third party for the whole of the ordinary share capital of the Purchaser (other than any ordinary share capital owned by the offeror or any concert party of the offeror) which is recommended by a majority of the board of directors of the Purchaser; or

6.8.2

where such disposal is made in the execution of an irrevocable commitment to accept any offer for the whole of the ordinary share capital of the Purchaser (other than any ordinary share capital owned by the offeror or any concert party of the offeror) which is recommended by a majority of the board of directors of the Purchaser; or

6.8.3

where such disposal is made pursuant to an offer by the Purchaser to purchase its own shares which is made on identical terms to all holders of ordinary shares in the Purchaser and otherwise complies with the rules of the market on which the shares are traded; or

6.8.4

to the extent that the sale proceeds (net of incidental costs) are required to meet any liability of the Seller arising out of any of the matters referred to in clause 6.

6.9

The Seller warrants that the execution of this agreement does not constitute a breach or event of default under the terms of the Sale of Shares Agreement (as amended) and any other agreement or agreements with Biofield Corp (“Biofield”) which the Seller warrants as having been terminated and completely null and void. The Seller further warrants that there is no active relationship or liability between Biofield and either ValiBio or ValiRx.

- 8 -

6.10

The Seller warrants that it will continue to perform all its obligations as and when they become due under the terms of the licence agreements entered into between Chronos Therapeutics Limited and Imperial Innovations Limited.

6.11

The Seller warrants that all invoices submitted under Clause 5.4.4 and payable by the Company are valid and in accordance with the terms of the Wallonia Agreement.

6.12

The Seller warrants that the list of Assumed Debts provided under Clause 5.3.4 is a complete valid list as at the time of Completion.

7.

THE PURCHASER'S REMEDIES 

7.1

Subject to clause 8, if the Purchaser proceeds to Completion and there is a breach of Warranty and 

7.1.1

the value of an asset of the Company is or becomes less than the value would have been had the breach not occurred; or

7.1.2

the Company is subject to or incurs a liability or an increase in a liability which it would not have been subject to or would not have incurred had the breach not occurred;

the Purchaser shall at its discretion either:

7.1.3

demand payment of an amount from the Seller equal to the reduction caused in the value of the Shares as a consequence of the breach of Warranty; or

7.1.4

elect to reduce the consideration payable to the Seller under section 4.1

so as to put the Purchaser into the position it would have been in had there been no breach of Warranty.

8.

LIMITATIONS ON CLAIMS 

8.1

The definitions and rules of interpretation in this clause apply in this agreement. 

Substantiated Claim: a Relevant Claim in respect of which liability is admitted by the party against whom such Relevant Claim is brought, or which has been adjudicated on by a court of competent jurisdiction and no right of appeal lies in respect of such adjudication, or the parties are debarred by passage of time or otherwise from making an appeal. 

A Claim is connected with another Claim or Substantiated Claim if they all arise out of the occurrence of the same event or relate to the same subject matter. 

8.2

The liability of the Seller for all Substantiated Claims and any amounts due under clause 8.4 when taken together shall not exceed the 

Consideration.

8.3

The Seller shall not be liable for a Relevant Claim unless

8.3.1

the amount of a Substantiated Claim, or of a series of connected Substantiated Claims of which that Substantiated Claim is one, exceeds 

$

2,000;

8.3.2

the amount of all Substantiated Claims that are not excluded under clause 8.3.1 when taken together exceeds 

$

10,000 in which case the whole amount (and not just the amount by which the limit in that clause 8.3.2 is exceeded) is recoverable by the Purchaser.

8.4

The Seller shall indemnify the Purchaser against each reasonable cost which the Purchaser may properly incur whether before or after the start of an action in connection with: 

8.4.1

the settlement of a claim against the Seller in respect of a breach or an alleged breach of clause 6.1 or 6.2 or the enforcement of a settlement; and 

8.4.2

legal proceedings against the Seller in respect of a breach or an alleged breach of clause 6.1 in which judgment is given for the Purchaser or the enforcement of the judgment. 

8.5

The Seller shall not be liable for any Relevant Claim to the extent that the Relevant Claim relates to matters fairly and specifically disclosed in the Disclosure Letter. 

- 9 -

8.6

The Seller shall not be liable for any Claim to the extent that the Claim relates to any matter specifically and fully provided for in the Accounts. 

8.7

The Seller is not liable for a Relevant Claim unless the Purchaser has given the Seller notice in writing of the Relevant Claim, summarising the nature of the Relevant Claim and the amount claimed within the period of three months from the publication of the audited accounts of the Company for the year ending after Completion (unless previously satisfied, settled or withdrawn) and unless legal proceedings have been validly issued on or before the date six months after the date of the notice of the Relevant Claim. 

8.8

The Seller is not liable for a Tax Claim unless the Purchaser has given the Seller notice in writing of the Tax Claim summarising the nature of the Tax Claim and the amount claimed within the period of seven years beginning with the date of Completion (unless previously satisfied, settled or withdrawn) and unless legal proceedings have been validly issued on or before the date six months after the date of the notice of the Tax Claim.

8.9

Nothing in this clause 8 or Schedule 5 applies to a Claim that arises or is delayed as a result of dishonesty, fraud, wilful misconduct or wilful concealment by the Seller, its agents or advisers. 

8.10

Schedule 5 shall apply in respect of Claims under this agreement. 

9.

PURCHASER’S WARRANTIES AND UNDERTAKINGS

9.1

The Purchaser warrants to the Seller (for itself and for its successors and assigns) on the date hereof as follows:

9.1.1

the Purchaser has full power and authority without requiring the consent of any person to enter into and perform its obligations under this agreement; 

9.1.2

this agreement will, when executed, constitute lawful, valid and binding obligations of the Purchaser in accordance with their respective terms; and

9.1.3

no receiver or administrative receiver has been appointed in respect of the Purchaser. 

9.2

For so long as the Seller holds 10% of the shares in issue of the Purchaser (or its publically traded holding company for a period of 2 years after listing) it shall have the right to appoint two Directors to the Board of such company, subject to any regulatory requirements of the exchange in the case of a listing, merger or reverse takeover of the Purchaser.

9.3

The Seller may nominate a director, and remove a director whom it nominated, by giving notice to the Purchaser. The appointment or removal takes effect on the date on which the notice is received by the Purchaser or, if a later date is given in the notice, on that date. The Seller will consult with the Purchaser prior to any appointment or removal of a director.

9.4

The Purchaser warrants that it has, and undertakes that until the Consideration Shares are issued and allotted it shall maintain, sufficient authorised but unissued equity share capital in the Company and shareholder authority to satisfy in full, without the need for the passing of any further resolutions of its shareholders, its obligations to allot the Consideration Shares, without first having to offer the same to any existing shareholders of the Company or any other person.

10.

OTHER PROVISIONS 

10.1

Costs 

Each of the parties shall pay its own costs and expenses (including legal fees and VAT (if any)) incurred by it in connection with the negotiation, preparation and execution of this agreement and the completion of the transactions contemplated by this agreement. 

10.2

Post-Completion 

This agreement shall remain in full force and effect after Completion in respect of all obligations, agreements, covenants and undertakings contained in or implied by this agreement which have not been done, observed or performed at or prior to Completion and in respect of all warranties, representations and indemnities contained in this agreement. 

- 10 -

10.3

Further assurance 

The Seller shall do, execute and perform all further reasonable acts, deeds, documents and things as may be reasonably requested by the Purchaser in writing from time to time in order to implement all the provisions of this agreement. All costs incurred by the Seller in carrying out such requests shall be borne in whole by the Seller. 

10.4

Variation 

No variation of this agreement shall be effective unless previously agreed in writing by or on behalf of the Seller and the Purchaser. 

10.5

Entire agreement 

This agreement and any documents referred to in it contain the entire agreement and understanding between the parties in relation to the matters contemplated by this agreement and supersede all previous agreements between the parties in relation to such matters.

10.6

Waivers and remedies 

10.6.1

No failure or delay to exercise, or other relaxation or indulgence granted in relation to, any power, right or remedy under this agreement of any party shall operate as a waiver of it or impair or prejudice it nor shall any single or partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy. 

10.6.2

All rights of each of the parties contained in this agreement are in addition to all rights vested or to be vested in it pursuant to common law or statute.

10.7

Severability

Each of the provisions of this agreement is distinct and severable from the others and if at any time one or more of such provisions is or becomes invalid, unlawful or unenforceable (whether wholly or to any extent), the validity, lawfulness and enforceability of the remaining provisions (or the same provision to any other extent) shall not in any way be affected or impaired. 

10.8

Assignment 

Unless mutually agreed in writing, this

 agreement may not be assigned in whole or in part by any of the parties. 

10.9

Counterparts 

This agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and which shall together constitute one and the same agreement. 

10.10

Third Parties 

Except as provided in clause 6.3 nothing in this agreement confers any rights on any person under the Contracts (Rights of Third Parties) Act 1999. 

11.

NOTICES 

11.1

Each party may give any notice or other communication under or in connection with this agreement by 

pre-paid first class post

 or facsimile transmission addressed to the 

address or fax number and for the attention of the relevant party as set out in Schedule 9 or such other address or fax number as may be notified in writing from time to time by the relevant

party to the other party

.. The address for service of each party shall be the address set out in this agreement or such other address for service as the addressee may from time to time notify to the other parties for the purposes of this clause. 

11.2

Any such communication will be deemed to be served: 

11.2.1

if personally delivered, at the time of delivery and, in proving service, it shall be sufficient to produce a receipt for the notice signed by or on behalf of the addressee; 

- 11 -

11.2.2

if by letter, at noon on the Business Day after such letter was posted (or, in the case of airmail, 5 Business Days after such letter was posted) and, in proving service, it shall be sufficient to prove that the letter was properly stamped first class (or airmail), addressed and delivered to the postal authorities; and

11.2.3

if by facsimile transmission at the time and on the day of transmission, and, in proving service, it shall be sufficient to produce a transmission report from the sender's facsimile machine indicating that the facsimile was sent in its entirety to the recipient's facsimile number.

12.

LAW AND JURISDICTION 

12.1

This agreement, and all disputes or claims arising out of or in connection with it, shall be governed by and construed in accordance with English law. 

12.2

The parties irrevocably and unconditionally agree that the High Court of Justice in England shall have jurisdiction over all disputes or claims arising out of or in connection with this agreement. 

13.

DISPUTE RESOLUTION 

13.1

Unless stated to the contrary in this Agreement, any dispute between the Parties at any time in regard to any matter arising from the Agreement or its interpretation or rectification shall be submitted for settlement by negotiation by the Chief Executives of each Party. In the event that the dispute cannot be resolved by the Chief Executives within thirty (30) days it shall be referred to and settled by arbitration. 

13.2

The arbitration shall be held in the United Kingdom in accordance with the laws of the ICC (International Chamber of Commerce) International court of Arbitration.    

13.3

If a party reasonably considers it necessary to prevent or stop any damage of a serious or irremediable nature including a breach of confidentiality, then nothing in this Dispute Resolution Clause will operate to stop it immediately applying to the appropriate court for an injunction or Court Order restraining the other party from breaching or continuing to breach this Agreement. 

I N  W I T N E S S  of which this agreement has been duly signed and delivered as a deed on the date written at the beginning of this agreement.

- 12 -

Schedule 1

Details of ValiBIO SA Shareholders

		
	(1)

Name and address/registered off of Shareholders

	(2)

No. and class of Shares held

	

ValiRx PLC

24 Greville Street

London, EC1N 8SS

United Kingdom

	

9023 ordinary shares

(or such other number as defined under the definition of “Shares” in this Agreement)

	

Patrick J Rousseau

4 keu de Bretagne

94000 Breteil

France

	

2 ordinary shares

- 13 -

Schedule 2

Details of the Company

Company name

:

ValiBIO SA

Company number

:

0891.006.861

Incorporated in

:

Belgium

Issued share capital

:

9025 ordinary shares

Directors

:

Patrick J. Rousseau 

(Managing Director)

Jake Micallef

(CEO)

Satu Vainikka

(Board Member)

Registered office

:

25 Georges Lemaitre

B – 6041 Gosselies

Belgium

Accounting reference date

:

31 December 

- 14 -

Schedule 3

Warranties

1.

CAPACITY 

1.1

The Seller has full power and authority without requiring the consent of any person to enter into and perform its obligations under this agreement. 

1.2

This agreement will, when executed, constitute lawful, valid and binding obligations of the Seller in accordance with their respective terms. 

1.3

No receiver or administrative receiver has been appointed in respect of the Seller. 

2.

SHARE CAPITAL 

2.1

The Seller is the registered holder and beneficial owner of the Shares. 

2.2

The Shares are free from all claims, liens, charges, equities, encumbrances and adverse rights of any description. 

2.3

The Seller is entitled to sell and transfer the full legal and beneficial interest in the Shares to the Purchaser on the terms set out in this agreement and without the consent of any person. 

2.4

The Shares are fully paid or credited as fully paid. 

2.5

None of the Shares was or represents assets which were the subject of a transfer at an undervalue within the meaning of section 238 of the Insolvency Act 1986. 

2.6

There is no agreement, arrangement or obligation requiring the creation, allotment, issue, transfer, redemption or repayment of, or the grant to a person of the right (conditional or not) to require the allotment, issue, transfer, redemption or repayment of, a share in the capital of the Company. 

2.7

None of the Shares has been the subject of a transaction where the transferor of the Shares made a gift of them or a transfer to another person on terms that provide for the transferor to receive no consideration or where the consideration in money or money's worth is significantly less than the value in money or money's worth provided by the transferor. 

2.8

The register of members of the Company is correct and properly written up to date. 

2.9

The Company has properly made, filed and delivered within the requisite time limits all returns, resolutions and documents required by the relevant statutes and practices. 

3.

ACCOUNTS 

3.1

The Accounts have been prepared and audited on a proper and consistent basis in accordance with the law and applicable standards, principles and practices generally accepted in the Belgium. 

3.2

No change in accounting policies has been made in preparing the accounts of the Company since incorporation, except as stated in the audited balance sheets and profit and loss accounts. 

3.3

The Accounts show a true and fair view of the assets, liabilities and state of affairs of the Company as at the Last Accounting Date and of the profits and losses of the Company for the financial year ended on the Last Accounting Date. 

3.4

The Accounts fully disclose and make proper provision for all bad and doubtful debts, all liabilities (actual, contingent or otherwise) and all financial commitments existing at the Last Accounting Date. 

3.5

The results shown by the audited profit and loss account of the Company for each of the financial years of the Company since incorporation ended on the Last Accounting Date have not (except as disclosed in those accounts) been affected by an extraordinary, exceptional (as such terms are defined in Financial Reporting Standard 3) or non-recurring item or by another fact or circumstance making the profit or loss for a period covered by any of those accounts unusually high or low. 

3.6

The Company has not engaged in any financing (including incurring any borrowing or indebtedness in the nature of acceptances or acceptance credits) of a type which would not be required to be shown or reflected in the Accounts. 

- 15 -

3.7

The bases and rates of depreciation and amortisation used in the Accounts were the same as those used in the audited accounts of the Company for the preceding financial years since incorporation. 

3.8

The rates of depreciation and amortisation used in the audited accounts of the Company for the financial years of the Company ended on the Last Accounting Date were sufficient to ensure that each fixed asset of the Company will be written down to nil by the end of its useful life. 

3.9

The value of the fixed assets of the Company shown in the Accounts is at cost thereof less depreciation deducted from time to time in a consistent manner and there has been no revaluation of such fixed assets since their acquisition. 

3.10

The Company has not released a debt shown in the Accounts or its accounting records so that the debtor has paid or will pay less than the debt's book value. None of those debts has been deferred, subordinated or written off or become irrecoverable to any extent. The Seller has no reason to believe that any of those debts will fail to realise its book value in the usual course of collection. 

3.11

The Management Accounts 

3.11.1

do not materially misstate the state of affairs of the Company for the period to which they relate; 

3.11.2

were prepared in accordance with good business practice and policies consistently applied throughout;

3.11.3

reflect the financial operations and state of affairs of the Company as at their date; and 

3.11.4

accord in all material respects with the books and ledgers of the Company. 

4.

EVENTS SINCE THE LAST ACCOUNTING DATE 

4.1

Since the Last Accounting Date, 

4.1.1

there has been no material adverse change in the financial position, prospects or turnover of the Company and no event or matter has occurred or is likely to occur which will or is likely to give rise to any such change. 

4.1.2

there has been no interruption or alteration in the nature or scope of business of the Company or in the manner in which it has been carried on.

4.1.3

no transaction has been entered into or any material liability assumed or incurred (including contingent liability) or any payment made otherwise than in the ordinary course of business.

4.1.4

there has been no loss of a customer which has accounted for five per cent. or more of the turnover of the Company.

4.1.5

there has been no loss to the Company of any material supplier. 

4.1.6

no dividend or distribution has been declared, made or paid to the members of the Company. 

4.1.7

no share or loan capital has been allotted or issued or agreed to be allotted or issued. 

4.1.8

no major capital expenditure (including the acquisition of a business or of a company) or any proposed major capital expenditure. For this purpose "major capital expenditure" is anything with a value of £50,000 or more.

4.1.9

the Company has not experienced any abnormal market factors which adversely affected the Company which did not affect other similar businesses.

5.

INTELLECTUAL PROPERTY 

5.1

Each of the Intellectual Property Rights is so far as the Seller is aware:

5.1.1

 valid and enforceable and nothing has been done or omitted to be done by which it may cease to be valid and enforceable; 

- 16 -

5.1.2

either : (i) legally and beneficially owned by, and validly granted to, the Seller alone, free from any licence, encumbrance, restriction on use or disclosure obligation; or (ii) legally and beneficially owned by, and validly granted to, the Company alone, free from any licence, encumbrance, restriction on use or disclosure obligation; and

5.1.3

not, and will not be, the subject of a claim or opposition from any person as to title, validity, enforceability, entitlement or otherwise.

5.2

The Disclosure Letter contains details of' the registered Intellectual Property Rights (including, without limitation, applications for registration) in respect of which the Seller is the registered owner or applicant for registration. 

5.3

Renewal and other fees payable in respect of the registered Intellectual Property Rights have been paid and all registration fees have been paid in relation to Intellectual Property where registration has been applied for in the name of a Seller or the Company (as the case may be). There is no outstanding third party request for action to be taken by, or on behalf of, a Seller or the Company in respect of, or in connection with, any of the Intellectual Property Rights. 

5.4

Each registrable transaction or instrument under which a Seller or the Company (as the case may be) has an interest in Intellectual Property owned, or previously owned, by another person (including, without limitation, assignments and licences) has been registered with the relevant authorities within 6 months of the date on which such transaction or instrument was entered into. 

5.5

So far as the Seller 

is

 aware nothing has been done or omitted to be done by which a person is or will be able to seek cancellation, rectification or other modification of a registration of any of the Intellectual Property Rights. 

5.6

There is and has been no civil, criminal, arbitration, administrative or other proceeding or dispute in any jurisdiction concerning any of the Intellectual Property Rights. So far as the Seller 

is

 aware no civil, criminal, arbitration, administrative or other proceeding concerning any of the Intellectual Property Rights is pending or threatened. To the best of the Seller' knowledge, information and belief, no fact or circumstance exists which might give rise to a proceeding of that type. 

5.7

The Seller has not granted nor is obliged to grant a licence, assignment or other right to anyone other than the Company in respect of any of the Intellectual Property Rights. 

5.8

The Company has not granted and is not obliged to grant a licence, assignment or other right to anyone in respect of any of the Intellectual Property Rights. 

5.9

So far as the Seller 

is

 aware there is, and has been, no infringement of any of the Intellectual Property Rights. 

5.10

The activities, processes, methods, products and services used, manufactured, dealt in or supplied on or before the date of this agreement by the Company: 

5.10.1

are not at the date of this agreement, nor were they at the time used, manufactured, dealt in or supplied, subject to the licence, consent or permission of, or payment to, another person; 

5.10.2

so far as the Seller 

is

 aware do not at the date of this agreement, nor did they at the time use, manufacture, deal in or supply, infringe the Intellectual Property (including, without limitation, moral rights) of another person; and

5.10.3

have not and so far as the Seller is aware will not give rise to a claim against the Company.

5.11

So far as the Seller is aware no party to an agreement relating to the use by the Company of Intellectual Property owned by it or another person is, or has at any time been, in breach of such agreement. 

5.12

The Intellectual Property Rights comprise all the Intellectual Property necessary for the Company to operate its business as carried on at the date of this agreement. 

5.13

The Company is not a party to a confidentiality or other agreement which restricts the use or disclosure of information. No disclosure has been made to any person (other than the Purchaser and the Company's and the Purchaser's respective professional advisers) of any Confidential Information except as in the normal course of business. 

5.14

The Company does not use, or operate its business under a name other than its corporate name. 

- 17 -

5.15

All inventions made by any employees of the Company and which are used by or for the use of the Company belong to the Company and no claim for compensation under section 40 of the Patents Act 1977 or otherwise has been made or is likely to be made against the Company. 

5.16

The Company is not reliant upon the particular knowledge of any of its officers or employees in connection with the use and exploitation of its Know-How and other Confidential Information. 

6.

LITIGATION 

6.1

Neither the Company nor any person for whose acts or defaults the Company may be vicariously liable, is involved, or has since the date of incorporation of the Company been involved, in a civil, criminal, arbitration or administrative proceeding. To the knowledge of the Seller, no civil, criminal, arbitration, administrative or other proceeding is pending or threatened by or against the Company or any person for whose acts or defaults the Company may be vicariously liable. 

6.2

So far as the Seller is aware no fact or circumstance exists which is likely to give rise to a civil, criminal, arbitration or administrative proceeding involving the Company or any person for whose acts or defaults the Company may be vicariously liable. 

6.3

There is no outstanding judgment, order, decree or arbitral award of a court, tribunal, arbitrator or governmental agency in any jurisdiction against the Company or any person for whose acts or defaults the Company may be vicariously liable. 

7.

ASSETS AND CHARGES 

7.1

The Company has stock and assets as set out in the Accounts. 

8.

GUARANTEES 

8.1

The Company is not a party to or liable (including, without limitation, contingently) under any guarantee, indemnity or other agreement to secure or incur a financial or other obligation with respect to another person's obligation. 

8.2

The Company has no loans or borrowings or other facilities of a similar nature except for short term bank overdrafts by way of normal business and a facility from the Region of Wallonia ( The Wallonia Agreement).

8.3

The Company has given no guarantee, security, indemnity, suretyship or comfort except for those connected with the Wallonia Agreement. 

8.4

The Company has no outstanding liabilities, including contingent liabilities which have arisen outside the ordinary course of business. 

9.

CONTRACTS AND AGREEMENTS 

9.1

The Company is a party to the following agreements and has incurred liabilities and obligations as detailed in: 

9.1.1

the Accounts, the Disclosure Letter, Management Accounts and ; 

9.1.2

the Wallonia Agreement:

9.1.3

material contracts entered into in the ordinary course of the business of the Company as detailed in the Disclosure Bundle.

9.1.4

any management agreement, agency or distributorship agreement; 

9.1.5

licence agreements under which the Company has acquired Intellectual Property Rights which attract an annual licence fee and possible royalty payments as detailed in Schedule 7.

9.2

The Company has all licences, permits, consents and authorities necessary for the conduct of the Company's business at the date of this Agreement.  The Company has received no notification of termination and is not aware of any reason why such licences, permits, consents or approvals should be terminated.

9.3

The Seller does not have any knowledge of the invalidity of, or a ground for termination, avoidance or repudiation of, any agreement, arrangement or obligation to which the Company is a party. No party with whom the Company has entered into an agreement, arrangement or obligation has given notice of its intention to terminate, or has sought to repudiate or disclaim, the agreement, arrangement or obligation. 

- 18 -

9.4

Neither the Company nor so far as the Seller 

is

 aware any party with whom the Company has entered into an agreement or arrangement is in breach of the agreement or arrangement. So far as the Seller 

is

 aware no fact or circumstance exists which might give rise to a breach of this type. 

9.5

The Company is not a party to and is not liable under a long-term (that is, unlikely to have been fully performed in accordance with its terms more than six months after the date on which it was entered into), onerous or unusual agreement, arrangement or obligation including, without limitation: 

9.5.1

an agreement, arrangement or obligation entered into other than in the usual course of its business; 

9.5.2

an agreement, arrangement or obligation entered into other than by way of a bargain at arm's length;

9.5.3

an agreement, arrangement or obligation which the Company cannot comply with on time or without undue or unusual expenditure of money or effort or;

9.5.4

is incapable of termination, in accordance with its terms, by the Company on 120 days' notice or less.

9.6

During the year ending on the date of this agreement no substantial customer or supplier of the Company has:

9.6.1

stopped, or indicated an intention to stop, trading with or supplying the Company; 

9.6.2

reduced, or indicated an intention to reduce, substantially its trading with or supplies to the Company;

9.6.3

changed, or indicated an intention to change, substantially the terms on which it is prepared to trade with or supply the Company (other than normal price and quota changes).

9.7

So far as the Seller is aware no substantial customer or supplier of the Company is likely to:

9.7.1

stop trading with or supplying the Company; 

9.7.2

reduce substantially its trading with or supplies to the Company; or 

9.7.3

change the terms on which it is prepared to trade with or supply the Company (other than normal price and quota changes).

9.8

Except for a condition or warranty implied by law or otherwise given in the usual course of business, the Company has not given a condition or warranty, or made a representation, in respect of goods or services supplied or agreed to be supplied by it, or accepted an obligation that could give rise to a liability after the goods or services have been supplied by it.

10.

EMPLOYEES AND PENSIONS 

10.1

The Company has had personnel employed by and engaged in the business of the Company as detailed in the Disclosure Bundle.

10.2

The Company does not have and has never had any pension schemes entitling employees to retirement or death benefits. 

10.3

There are not in existence any stock or share option or incentive schemes or any bonus or profit sharing schemes or similar arrangements in relation to the Company and its employees, directors or officers. 

11.

ASSOCIATED BODIES 

11.1

The Company has no subsidiaries, subsidiary undertakings or associated companies. 

12.

PROPERTY 

12.1

The Company has no liability (actual or contingent) arising out of a conveyance, transfer, lease, tenancy, licence, agreement or other document relating to land, premises or any interest in land or premises as seen in the Disclosure Bundle. 

- 19 -

13.

POWERS OF ATTORNEY

13.1

The Company has given no power of attorney or any other authority (express, implied or ostensible) which is still outstanding or effective to any person other than any authority of directors to enter into routine trading contracts in the normal course of their duties. 

14.

INSURANCES 

14.1

The Disclosure Letter sets out the details of the Company's insurance policies and there are no insurance claims outstanding or pending. 

15.

COMPETITION 

15.1

The Company has not given an undertaking or written assurance (legally binding or not) to a governmental authority or an authority of the European Communities or European Economic Area under the Treaty of Rome, agreement on the European Economic Area or other statute or legal instrument in other jurisdictions. The Company is not affected by an order, judgment or regulation made under the competition law of another jurisdiction or by a decision of the Commission of the European Communities or EFTA Surveillance Authority or other regulatory authority or court or a competition authority of another jurisdiction. 

15.2

The Company has not received a communication or request for information relating to any aspect of the Company's business or any agreement, arrangement, concerted practice or course of conduct to which the Company is, or is alleged to be, a party from or by the Director General of Fair Trading, Competition Commission, Secretary of State for Trade and Industry, Commission of the European Communities or EFTA Surveillance Authority or a competition or governmental authority of another jurisdiction. No agreement, arrangement or conduct (by omission or otherwise) of the Company has been the subject of an investigation, report or decision by any of those persons or bodies. The Company is not involved in any practice or agreement as a result of which it is likely to receive any such communication or request.

15.3

The Company is not in a dominant position in a market in the European Union or European Economic Area, or a substantial part of a market in the European Union or European Economic Area, for the purposes of Article 86 of the Treaty of Rome and Article 54 of the agreement on the European Economic Area.

15.4

The Company has never received, nor is the Company proposing to receive, any aid (as that term is understood for the purposes of Articles 92 to 94 of the Treaty of Rome) from a member state of the European Union or from state resources.

15.5

The Company is not a party to (or is concerned in) any agreement, arrangement, concerted practice or course of conduct which except with the Region of Wallonia the Wallonia Agreement that is specifically exempt from such provisions under the Articles hereunder (Schedule 11) [Please note that the reference to Schedule 11 was made in error and there is no Schedule 11 to this Agreement.]

15.5.1

falls within Article 85 and / or Article 86 of the Treaty of Rome;

15.5.2

falls within Article 53 and / or Article 54 of the Agreement on the European Economic Area; or

15.5.3

otherwise infringes the competition legislation or practice of any other jurisdiction. 

16.

DATA PROTECTION 

16.1

The Company complies and has at all times complied with all relevant data protection legislation and regulation. 

17.

AGREEMENTS WITH CONNECTED PERSONS 

17.1

There is no, and since the date of the incorporation of the Company there has not been any, agreement or arrangement (legally enforceable or not) to which the Company is or was a party and in which the Seller, a director or former director of the Company, or a person connected with any of them is or was interested in any way. 

- 20 -

Schedule 4

Tax Warranties

1.1

All notices, returns (including any land transaction returns), reports, accounts, computations, statements, assessments and registrations and any other necessary information submitted by the Company to any Taxation Authority for the purposes of Taxation have been made on a proper basis, were submitted within applicable time limits, were accurate and complete when supplied and so far as the Seller is aware remain accurate and complete in all material respects. None of the above is, or so far as the Seller is aware is likely to be, the subject of any material dispute with any Taxation Authority.

1.2

All Taxation for which the Company is or has been liable or is liable to account for, has been duly paid (insofar as such Taxation ought to have been paid).

1.3

The Company has, within applicable time limits, maintained all records in relation to Taxation as they are required to maintain.

1.4

The Company has complied within applicable time limits with all notices served on them and any other requirements lawfully made of them by any Taxation Authority.

1.5

The Company is not involved in any dispute with any Taxation Authority and has not been subject to any visit, audit, investigation, discovery or access order by any Taxation Authority. The Seller is not aware of any circumstances existing which make it likely that a visit, audit, investigations, discovery or access order will be made in the next 12 months.

1.6

The Company is not and so far as the Seller is aware or will not become, liable to make any person (including any Taxation Authority) any payment in respect of any liability to Taxation which is primarily or directly chargeable against, or attributable to, any other person (other than the Company).

1.7

The Accounts make proper provision or reserve within generally accepted accounting principles for any period ended on or before the date to which they were drawn up for all Taxation assessed or liable to be assessed on the Company, or for which the Company is accountable at that date, whether or not the Company has (or may have) any right of reimbursement against any other person. Proper provision has been made and shown in the Accounts for deferred taxation in accordance with generally accepted accounting principles.

1.8

The book value shown in, or adopted for the purposes of, the Accounts as the value of each of the assets of the Company, on the disposal of which a chargeable gain or allowable loss could arise, does not exceed the amount which on a disposal of such asset at the date of this agreement would be deductible, in each case, disregarding any statutory right to claim any allowance or relief other than amounts deductible under relevant legislation.

- 21 -

Schedule 5

1.

MITIGATION AND RESCISSION 

1.1

The Purchaser shall, and shall procure that the Company shall, take all reasonable steps to avoid or mitigate any loss or liability which may give rise to a Relevant Claim. 

1.2

The Purchaser agrees that rescission shall not be available as a remedy for any breach of this agreement and agrees not to claim that remedy. 

2.

LIMITATIONS 

No Claim shall be admissible and the Seller shall not be liable in respect thereof to the extent that: 

(a)

the liability arises as a result of or is otherwise attributable to any voluntary act, transaction or omission of the Company or the Purchaser or their respective directors, employees or agents on or after Completion other than as required by law or a legally binding obligation entered into prior to Completion; or

(b)

any Claim or the subject matter thereof has been or is made good or is otherwise compensated for (otherwise than by the Purchaser or any member of the Purchaser's Group); or

(c)

the liability comprises penalties, charges or interest arising directly or indirectly from any act, transaction or omission of the Purchaser or the Company after Completion.

3.

INSURANCES 

If, in respect of any matter which would give rise to a Relevant Claim, the Purchaser or the Company is entitled to make a claim under any policy of insurance, then no such matter shall be the subject of a Relevant Claim and no Relevant Claim shall lie unless and until the Purchaser, or the Company (as the case may be) has made a claim against its insurers. Liability in respect of any such Relevant Claim shall then be reduced by the amount recovered under such policy of insurance (less all reasonable costs, charges and expenses incurred by the Buyer in recovering that sum from its insurers), or extinguished if the amount recovered exceeds the amount of the Relevant Claim. 

4.

RECOVERY FROM THIRD PARTIES 

4.1

Where the Purchaser or the Company is at any time entitled to recover from some other person (not being the Purchaser or any member of the Purchaser's Group) (Third Party) any sum in respect of any matter giving rise to a Relevant Claim, the Purchaser shall take all reasonable steps to enforce such recovery before making a Relevant Claim. 

4.2

If the Purchaser recovers any amount from a Third Party, the amount of the Relevant Claim shall then be reduced by the amount recovered (less all reasonable costs, charges and expenses incurred by the Purchaser in recovering that sum from such Third Party) or be extinguished if the amount recovered exceeds the amount of the Relevant Claim. 

4.3

If the Seller at any time pay to the Purchaser an amount pursuant to a Relevant Claim and the Purchaser subsequently becomes entitled to recover from a Third Party any sum in respect of the matter giving rise to such Relevant Claim, the Purchaser shall take all reasonable steps to enforce such recovery, and shall repay to the Seller as soon as practicable so much of the amount paid to the Purchaser as does not exceed the sum recovered from such Third Party (less all reasonable costs, charges and expenses incurred by the Purchaser in recovering that sum from such Third Party). 

5.

RETROSPECTIVE LEGISLATION 

No liability shall arise in respect of any Claim to the extent that such liability arises or is increased wholly or partly as a result of any legislation not in force at the date of this agreement which takes effect retrospectively. 

6.

CONTINGENT LIABILITIES 

If any Claim arises by reason of some liability of the Company which, at the time such Claim is notified to the Seller), is contingent only or otherwise not capable of being quantified, the Seller shall not be under any obligation to make any payment in respect of such breach or Claim unless and until such liability ceases to be contingent or becomes capable of being quantified, as the case may be, provided that this occurs before the expiry of the time limits set out in clause 8.7 or 8.8 as the case may be. Provided that such Claim has been notified to the Seller in accordance with clause 8.7 or 8.8 as the case may be, the proviso to those clauses shall be amended in relation to such Claim so as to require that (subject to the time limit imposed by clause 8.7 or 8.8 as the case may be) legal proceedings be commenced within 6 months from the date on which the said liability ceases to be contingent or becomes capable of being quantified, as the case may be, in order for the liability of the Seller not to determine. 

- 22 -

7.

ASSIGNEES 

Any third party who is entitled under the terms of this agreement to claim against the Seller or any of them shall be subject to the provisions of this Schedule 5 as if it were the Purchaser. 

- 23 -

Schedule 6

Section A – Registered IP

1.

PATENTS

(i)

Registered:

							
	Patent Title

	Country

	Field

	Number

	Priority Date

	Expiry Date

	Owner

	Detection of Histone Modifications in Cell-Free Nucleosomes

	Europe

	Oncology

	PCT/GB2004/003564

	18 August 2003

	17 August 2023

	Chroma Therapeutics Limited

(ii)

Applications pending

							
	Patent Title

	Country

	Field

	Number

	Priority Date

	Expiry Date

	Owner

	Detection of Histone Modifications in Cell-Free Nucleosomes

	USA

	Oncology

	PCT/GB2004/003564

	18 August 2003

	17 August 2023

	Chroma Therapeutics Limited

	

Method for determining Chromatin Structure

	Europe /

USA

	Oncology

	PCT/GB02/00308

	

5 July 2001

	4 July 2021

	Imperial College Innovations

2.

DOMAIN NAMES/WEBSITES

			
	Domain name

	Registration date

	Renewal date

	·

www.valiBio.com

	·

31st December 2007

	·

30th August 2010

	·

www.volitionrx.com

	·

14th May 2010

	·

13th May 2011

Section B – Material unregistered Business IP

			
	Description

	Type of IP

	Description of use within Business

	Nucleosomics

	Trademark

	Diagnostic product description

	Hypergenomics

	Trademark

	Diagnostic product description

- 24 -

Schedule 7

Patent Licence Agreement

					
	Party 1

	Party 2

	Date

	Patent

	Territory

	ValiPharma Limited

	ValiBio SA

	8 March 2010

	PCT/GB02/00308

	Worldwide

	

ValiRx Plc

	

ValiBio SA

	

8 March 2010

	

PCT/GB02004/003564

	

Worldwide

The Licence Agreement between ValiRx Plc and ValiBio SA as set out above has been novated to the Purchaser by way of a deed of novation dated on or around the date of this Agreement.

- 25 -

Schedule 8

ValiRx Wiring Details

		
	Name of Bank:

	The Royal Bank of Scotland PLC

	Sort Code:

	16-00-02

	Account Number:

	20362531

	BIC:

	RBOS GB 2L

	IBAN:

	GB02 RBOS 16000 220 362531

- 26 -

Schedule 9

Notice Details

Singapore Volition:

Singapore Volition Pte. Limited

150 Orchard Road,

Orchard Plaza,

08-02,

Singapore,

238841

and

49 A & B Hanover Gate Mansions,

Park Road,

London,

NW1 4SN

For the attention of:

Cameron Reynolds

Fax Number:

+65 63 33 7235

(Singapore) and

+44 (0) 20 7724 2734

(London)

Email:

c.reynolds@volitionrx.com

ValiRx:

ValiRx Plc

24 Greville Street,

London,

EC1N 8SS.

For the attention of:

The CEO

Fax Number:

+44 (0) 20 3008 4415

- 27 -

Signed by

for and on behalf of

SINGAPORE 

VOLITION 

PTE LIMITED

/s/ Cameron Reynolds

Cameron Reynolds

Signed by

for and on behalf of

VALIRX PLC

/s/ Nicholas Thorniley

Nicholas Thorniley

- 28 -Exhibit 10.9 Deed of Novation

Exhibit 10.9

DATED                                                                                                                                   2010

(1) CHROMA THERAPEUTICS LIMITED

- and -

(2) VALIRX PLC

- and -

(3) VALIBIO SA

- and -

(4) SINGAPORE VOLITION PTE. LIMITED

___________________________________________

DEED OF NOVATION

___________________________________________

Messrs. Rooks Rider

Solicitors,

Challoner House,

19 Clerkenwell Close,

London, EC1R 0RR.

Dx. Box No: 53324, Clerkenwell

Tel. No: +44 (0)207 689 7000

Fax. No: +44(0)207 689 7001

Email: lawyers@rooksrider.co.uk

Ref: [*]

THIS DEED is made the 22 day of September 2010

BETWEEN:

(1)

CHROMA THERAPEUTICS LIMITED incorporated and registered in England and Wales with company number 4066289 whose registered office is at 93 Milton Park, Abingdon, Oxfordshire OX14 4RY (the “Chroma”);

(2)

VALIRX PLC incorporated and registered in England and Wales with company number 3916791 whose registered office is at 24 Greville Street, London EC1N 8SS (“ValiRx”); 

(3)

VALIBIO SA incorporated and registered in Belgium with company number 0891.006.861 whose registered office is at 25 Georges Lemaitre, B-6041 Gosselies, Belgium (“ValiBio”) and

(4)

SINGAPORE VOLITION PTE. LIMITED incorporated and registered in Singapore with company number 201016543R whose registered office is at 165 Gangsa Road, Unit 01-70, Singapore 670165 (“Volition”).

BACKGROUND:

(A)

Chroma and ValiRx are party to Patent Licence Agreement dated 3 October 2007 (“Licence”), a copy of which is annexed to this deed.

(B)

ValiRx and ValiBio are party to Patent Licence Agreement dated 8 March 2010 (“Sub-Licence”), a copy of which is annexed to this deed.

(C)

ValiRx has agreed to transfer its shares in ValiBio SA to Volition pursuant to the terms of a Sale and Purchase Agreement dated the same date as this deed (“SPA”). As part of the share transfer, ValiRx wishes to transfer all its rights, obligations and liabilities under the Licence to Volition and terminate the Sub-Licence.

(D)

The parties have agreed that ValiRx's rights, obligations and liabilities under the Licence shall be novated to Volition on the terms of this deed.

IT IS HEREBY AGREED as follows:

1.

Consideration

1.1

Volition and ValiRx agree that 5% of each payment of the consideration due under clauses 4.1 and 4.2 of the SPA shall be paid by Volition direct to Chroma.

2.

Novation

2.1

ValiRx transfers all its rights and obligations under the Licence to Volition. Volition shall enjoy all the rights and benefits of ValiRx under the Licence, and all references to ValiRx in the Licence shall be read and construed as references to Volition.

2.2

Volition agrees to perform the Licence and be bound by its terms in every way as if it were the original party to it in place of ValiRx.

2.3

Chroma agrees to perform the Licence and be bound by its terms in every way as if Volition were the original party to it in place of ValiRx.

3.

Release of obligations and liabilities

3.1

Chroma and ValiRx release each other from all future obligations to the other under the Licence. 

3.2

Each of Chroma and ValiRx releases and discharges the other from all claims and demands under or in connection with the Licence, whether arising before, on, or after the date of this deed.

3.3

Each of Chroma and Volition will have the right to enforce the Licence and pursue any claims and demands under the Licence against the other with respect to matters arising before, on or after the date of this deed as though Volition were the original party to the Licence instead of ValiRx.

1

3.4

Each of ValiRx and ValiBio agree that the Sub-Licence is hereby terminated with immediate effect releases and discharges the other from all claims and demands under or in connection with the Sub-Licence.

4.

Indemnity

4.1

Volition agrees to indemnify ValiRx against any losses, damages or costs ValiRx suffers or incurs under or in connection with the Licence as a result of Volition's failure to perform or satisfy its assumed obligations under the Licence.

4.2

ValiRx agrees to indemnify Volition against any losses, damages or costs Volition suffers or incurs under or in connection with the Licence as a result of ValiRx's failure to perform or satisfy its obligations under the Licence before the date of this deed.

5.

Governing law and jurisdiction

5.1

This deed and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with English law.

5.2

The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim that arises out of, or in connection with, this deed or its subject matter or formation (including non-contractual disputes or claims).

2

THIS DEED has been executed and delivered by or on behalf of each of the parties on the date at the top of page 1

		
	Executed as a deed by CHROMA THERAPEUTICS LIMITED acting by

a director and

a director or its secretary

	

/s/ Ian Nicholson

Ian Nicholson

Director

/s/ Richard Bungay

Richard Bungay

Secretary

	Executed as a deed by VALIRX PLC acting by

a director and

a director or its secretary

	

/s/ Nicholas Thorniley

Nicholas Thorniley

Director

/s/ George Morris

George Morris

Director

	

Executed as a deed by VALIBIO SA acting by

a director and

a director or its secretary

	

/s/ Jacob Micallef

Jacob Micallef

Director

/s/ Satu Vainikka

Satu Vainikka

Director

	Executed as a deed by SINGAPORE VOLITION PTE. LIMITED acting by

a director and

a director or its secretary

	

/s/ Cameron Reynolds

Cameron Reynolds

Director

/s/ Laith Reynolds

Laith Reynolds

Director

3

LICENCE

THIS AGREEMENT dated October 3rd 2007 is between:

1) CHROMA THERAPEUTICS LIMITED (“Chroma”), a company incorporated in England and Wales whose principal place of business is at 93 Milton Park, Abingdon, Oxfordshire OX14 4RY; and

2) VALIRX PLC (the “Licensee”), a company incorporated in England and Wales whose principal place of business is at 24 Greville Street, London, ECIN 8SS.

RECITALS:

A.

Chroma has developed and owns a technology relating to chromatin, necleosome and histone structure and the determination of histone modifications particularly as the basis of methods for the diagnosis, prognosis and monitoring of cancer and other diseases (the “Technology”). 

B.

Chroma has filed patent applications over the Technology. 

C. 

The Licensee wishes to acquire rights under the Patents and to use the Technology for the development and commercialization of Licensed Products and to supply Services, in each case in the Field and in the Territory, in accordance with the provisions of this Agreement. 

IT IS AGREED as follows:

1 

Definitions

In this Agreement, the following words shall have the following meanings:

Affiliate 

In relation to a Party, means any entity or person that Controls, is Controlled by, or is under common Control with that Party.

Claims 

All demands, claims and liability (whether criminal or civil, in contract, tort or otherwise) for losses, damages, legal costs and other expenses of any nature whatsoever and all costs and expenses (including without limitation legal costs) incurred in connection therewith.

Commencement Date

This date of this Agreement.

Control 

Direct or indirect beneficial ownership of 50% (or, outside a Party’s home territory, such lesser percentage as is the maximum, permitted level of foreign investment) or more of the share capital, stock or other participating interest carrying the right to vote or to distribution of profits of that Party, as the case may be.

Diligent

And Reasonable Efforts 

Exerting such efforts and employing such resources as would be exerted or employed by a reasonable third party company for a product of similar market potential at a similar stage of its product life, when utilizing sound and reasonable scientific, business and medical practice and judgment in order to develop the product in a timely manner and maximize the economic return to the Parties from its commercialisation. 

Field 

The diagnosis, prevention and treatment of disease and pharmacogenomic applications and the provision of technology, products or services including the detection or identification of actual or potential gene expression or the characterization or identification of cell types or differentiation states. 

Indemnitees 

Chroma and its Affiliates, and their respective officers, directors, Council members, employees and representatives. 

Licensed Products 

Any and all products that are manufactured, sold, or otherwise supplied by the Licensee or its sub-licensee (including any Affiliate of the Licensee) and which are within any Valid Claim of the Patents.

4

Net Receipts 

The sum of;

a) the Royalty Income and,

b) the Sub-license Non-royalty income,

Net Sales Value

The aggregate amount invoiced for all Licensed Products sold by the Licensee or its Affiliates to independent third parties in arm’s length transactions exclusively for money or, where the sale is not at arm’s length, the price that would have been so invoiced if it had been at arm’s length, after deduction of all documented:

a) normal trade discounts actually granted and any credits actually given for rejected or returned Licensed Products;

b) costs of packaging, insurance, carriage and freight, provided in each case that the amounts are separately charged on the relevant invoice; 

c) value added tax or other sales tax; and,

d) import duties or similar applicable government levies actually paid.

Sales between any of the Licensee, its Affiliates and sub-licenses shall not be considered for the purposes of this definition unless there is no subsequent sale to a person who is not the Licensee, its Affiliate or sub-licensee in an arm’s length transaction exclusively for money within three months from the original sale or such other time period as may be agreed by the Parties from time to time on a case by case basis.  

Parties 

Chroma and the Licensee, and “Party” shall mean either of them.

Patents

Any and all of the patents and patent applications referred to in Schedule 1 including any continuations, continuations in part, extensions, reissues, divisions, and any patents, supplementary protection certificates and similar rights that are based on or derive priority from the foregoing.

Royalty Income 

Any royalty payment (excluding value added tax) obtained by, or due to, the Licensee or its Affiliates, in relation to the sub-licensing (including the grant of any option over a sub-license) of any of the Patents. 

Service 

The supply of a consultancy or technical service (including contract research and development) to a third party that includes within the provision of such service or requires in its performance the Licensee’s use of technology falling within a Valid Claim of the Patents. 

Service Free 

Any fee, after deduction of any value-added tax or other sales tax, invoiced to any third party by the Licensee or its Affiliates for the provision of a Service. 

Sub-license

Non-royalty Income 

The amount of any payment (excluding value added tax and Royalty Income) and the value of any non-monetary receipt, obtained by, or due to, Licensee or its Affiliates, in relation to the sub-licensing (including the grant of any option over a sub-license) of any of the Patents, and including any of the following:

a) up-front, milestone (whether at the stage of development, marketing or otherwise), success, bonus, maintenance and periodic (including annual) payments due under any sub-license agreement;

b) where any sub-license is to be granted under cross-licensing arrangements, the value of any third party license obtained under such arrangements;

c) any funding received from a sub-licensee for shares, options or other securities in respect of any of the share capital of the Licensee or its Affiliates; 

d) any guarantee or other financial benefit received from a sub-licensee; and 

e) any loan received from a sub-licensee which is not ultimately repaid, or any loan which is on terms other than arm’s length terms, or any loan that is convertible to equity or other non-cash form where such conversion occurs. 

Territory 

Worldwide.

5

Valid Claim 

A claim of a patent or patent application that has not expired or been held invalid or unenforceable by a court of competent jurisdiction in a final and non-appealable judgment. 

   

2 

Grant of rights

2.1 

Licenses. Chroma hereby grants to the Licensee, subject to the provisions of this Agreement, a non-transferable, exclusive license in the Field under the Patents, with the right to sub-license, subject to clause 2.3 below, to develop, manufacture, have manufactured, use and sell Licensed Products or to supply a Service but in each case only in the Field in the Territory. 

2.2 

Formal Licenses. At the request and cost of the Licensee, the Parties shall execute such formal licenses as may be necessary or appropriate for registration of this Agreement with Patent Offices and other relevant authorities in particular territories. In the event of any conflict in meaning between any such license and the provisions of this Agreement, the provisions of this Agreement shall prevail. Prior to the execution of the formal license(s) (if any) referred to in this Clause 2.2, the Parties shall so far as possible have the same rights and obligations towards one another as if such license(s) had been granted. The Parties shall use reasonable endeavors to ensure that, to the extent permitted by relevant authorities, this Agreement shall not form part of any public record. 

2.3 

Sub-licensing. The licensee shall be entitled to grant sub-licenses of its rights under this Agreement to any person, provided that:

2.3.1 the sub-license shall include obligations on the sub-licensee which are equivalent to the obligations on the Licensee under this Agreement; 

2.3.2 the sub-license shall terminate automatically on the termination of this Agreement for any reason;

2.3.3 within 30 days of the grant of any sub-license the Licensee shall provide to Chroma a true copy of it; and 

2.3.4 the Licensee shall be responsible for any breach of the sub-license by the sub-licensee, as if the breach had been that of Licensee under this Agreement, and the Licensee shall indemnify Chroma against any loss, damages, costs, claims or expenses which are awarded against or suffered by Chroma as a result of any such breach  by the sub-licensee. 

2.4 

Reservation of rights. Chroma reserves the non-exclusive right for it and its Affiliates to use in any way without limitation the Patents and Technology in the Field for all non-commercial purposes. Licensee hereby grants to Chroma an irrevocable, perpetual, worldwide, non-exclusive, royalty-free license for it and its Affiliates to use any of its and its sub-licensees’ intellectual property rights that constitute improvements, modifications or enhancements created, developed or arising from the Technology and/or the Patents for all non-commercial purposes. For the avoidance of doubt, non-commercial purposes shall include the use of any assays that are developed as research tools that may aid Chroma’s drug discovery programmes. 

2.5 

No other license. Except for the licenses expressly granted by this Clause 2, Chroma reserves all its rights. Without prejudice to the generality of the foregoing Chroma reserves all rights under the Patents outside the Field. 

2.6 

Quality. The Licensee shall ensure that all of the Licensed Products marketed by it are of satisfactory quality and comply with all applicable laws and regulations in each part of the Territory and shall contractually require all sub-licensees to ensure that all Licensed Products marketed by them are of satisfactory quality and comply with all applicable laws and regulations in each part of the Territory.

2.7 

Responsibility for development of Licensed Products. The Licensee shall be exclusively responsible for the technical and commercial development and manufacture of Licensed Products and for incorporating any modifications or developments thereto that may be necessary or desirable and for all Licensed Products sold or supplied, and accordingly the Licensee shall indemnify Chroma in the terms of Clause 7.3. 

3 

Know-how and Confidential Information 

3.1

Confidentiality obligations. Each Party (“Receiving Party”) undertakes: 

3.1.1 to maintain as secret and confidential all know-how and other technical or commercial information obtained directly or indirectly from the other Party (“Disclosing Party”) in the course of or in anticipation of this Agreement and to respect the Disclosing Party’s rights therein; 

6

3.1.2 to use the same exclusively for the purposes of this Agreement; and 

3.1.3 to disclose the same only to those of its employees, Affiliates and sub-licensees pursuant to this Agreement (if any) to whom and to the extent that such disclosure is reasonably necessary for the purposes of this Agreement. 

3.2 

Exceptions to obligations. The provisions of Clause 3.1 shall not apply to know-how and other information which the Receiving Party can demonstrate by reasonable, written evidence:

3.2.1 was, prior to its receipt by the Receiving Party from the Disclosing Party, in the possession of the Receiving Party and at its free disposal; or

3.2.2 is subsequently disclosed to the Receiving Party without any obligations of confidence by a third party who has not derived it directly or indirectly from the Disclosing Party; or 

3.2.3 is or becomes generally available to the public through no act or default of the Receiving Party or its employees, Affiliates or sub-licensees; or

3.2.4 the Receiving Party is required to disclose to the courts of any competent jurisdiction, or to any government regulatory agency or financial authority, provided that the Receiving Party shall:

3.2.4.1inform the Disclosing Party as soon as is reasonably practicable; and, 

3.2.4.2 at the Disclosing Party’s request seek to persuade the court, agency or authority to have the information treated in a confidential manner, where this is possible under the court, agency or authority’s procedures. 

3.3 

Disclosure to employees. The Receiving Party shall procure that all of its employees, Affiliates and sub-licensees pursuant to this Agreement (if any) who have access to any of the Disclosing Party’s information to which Clause 3.1 applies, shall be made aware of and subject to these obligations and shall have entered into written undertakings of confidentiality at least as restrictive as Clauses 3.1 and 3.2 and which apply to the Disclosing Party’s information.

4 

Payments

4.1

Royalties

4.1.1 Royalties on Net Sales Value. The Licensee shall pay to Chroma a royalty of 5% (Five percent) of the Net Sales Value. 

4.1.2 Royalties on Service Fees. The Licensee shall pay to Chroma a royalty of 15% (fifteen percent) of all Service Fees. 

4.1.3 Royalties on Net Receipts

4.1.3.1

Royalties on sub-licence Royalty Income. The Licensee shall pay to Chroma a royalty equal to the following percentage of the Royalty Income over the term of this Agreement: 25% (Twenty Five percent) of all cumulative Royalty Income less than or equal to £1,000,000 (One Million pounds sterling); and, 20% (Twenty percent) of all cumulative Royalty Income in excess of £1,000,000 (One Million pounds sterling).

4.1.3.2

Royalties on Sub-licence Non-royalty Income. The Licensee shall pay to Chroma a royalty of 15% (Fifteen percent) of Sub-licence Non-royalty Income. 

4.5 

If the Parties disagree as to the calculation of any Service Fees, Net Receipts or Net Sales Value, including without limitation any disagreement as to the cash value of any non-monetary receipt, but excluding any dispute as to whether a product is a Licensed Product such as disagreement shall be referred to an independent expert who shall be appointed and who shall act in accordance with the provisions of Schedule 2. 

7

4.6 

Combination Products. If any Licensed Products are incorporated in any other product (“Combination Product”) supplied by the Licensee or its Affiliates and the Licensed Product is not priced separately from the Combination Product, the Net Sales Value of such Licensed Product shall be deemed to be that proportion of the Net Sales Value of the Combination Product which is attributable to the Licensed Product, comparing the actual manufacturing cost of the Licensed Product with that of the Combination Product, as in the following formula: Net Sales Value of Licensed Product = (actual manufacturing cost of the Licensed Product divided by total actual manufacturing cost of Combination Product) x Net Sales Value of Combination Product. If the Parties disagree as to the calculation of the actual manufacturing cost referred to in this Clause 4.6 such disagreement shall be referred to an independent expert who shall be appointed and who shall act in accordance with the provisions of Schedule 2. 

4.7 

Payment frequency. Royalties due under this Agreement shall be paid within 60 days of the end of each quarter ending on 31 March, 30 June, 30 September and 31 December, in respect of sales of Licensed Products or Services made and sub-licenses current during such quarter and within 60 days of the termination of this Agreement. 

4.8 

Payment terms. All sums due under this Agreement:

4.8.1 are exclusive of value added tax which where applicable will be paid by the Licensee to Chroma in addition;

4.8.2 shall be paid in pounds sterling (unless and until sterling is replaced by Euros at which time payment shall be made in Euros) in cash by transferring an account in aggregate to the following account:

Account Number: 00019801

Sort Code: 20-65-82

Account: Chroma Therapeutics Ltd.

Bank: Barclays Bank plc

and in the case of sales or sub-license income received by the Licensee or its Affiliates in a currency other than pounds sterling, the royalty shall be calculated in the other currency and then converted into equivalent pounds sterling at the buying rate of such other currency as quoted by Barclays Bank PLC in London as at the close of business on the last business day of the quarterly period with respect to which the payment is made; 

4.8.3 shall be made without deduction of income tax and other taxes charges or duties that may be imposed, except insofar as the Licensee is required to deduct the same to comply with applicable laws. The Parties shall cooperate and take all steps reasonably and lawfully available to them, at the expense of the Licensee, to avoid deducting such taxes and to obtain double taxation relief. If the Licensee is required to make any such deduction it shall provide Chroma with such certificates or other documents as it can reasonably obtain to enable Chroma to obtain appropriate relief from double taxation of the payment in question; and 

4.8.4 shall be made by the due date, failing which Chroma may charge interest on any outstanding amount on a daily basis at a rate equivalent to 3% above the Barclays Bank Plc base lending rate then in force in London.

4.9 

Exchange controls. If at any time during the continuation of this Agreement the Licensee is prohibited from making any of the payments required hereunder by a governmental authority in any country then the Licensee shall within the prescribed period for making the said payments in the appropriate manner use its best endeavours to secure from the proper authority in the relevant country permission to make the said payments and shall make them within 7 days of receiving such permission. If such permission is not received within 30 (thirty) days of the Licensee making a request for such permission then, at the option of Chroma, the Licensee shall deposit the royalty payments due in the currency of the relevant country either in a bank account designated by Chroma within such country or such royalty payments shall be made to an associated company of Chroma designated by Chroma and having offices in the relevant country designated by Chroma. 

4.10

Royalty Statements. The Licensee shall send to Chroma at the same time as each royalty payment is made in accordance with Clause 4.8 a statement setting out, in respect of each territory or region in which Licensed Products or Services are sold, the types of Licensed Product or Services sold, the quantity of each type sold, and the total Net Sales Value, Service Fees and the total Net Receipts in respect of each type, expressed both in local currency and pounds sterling and showing the conversion rates used, during the period to which the royalty payment relates. 

8

4.11 

Records. 

4.11.1 

The Licensee shall keep at is normal place of business detailed and up to date records and accounts showing the quantity, description and value of Licensed Products and Services sold by it, and the amount of sublicensing revenues received by it in respect of Licensed Products, on a country by country basis, and being sufficient to ascertain the payments due under this Agreement. 

4.11.2

The Licensee shall make such records and accounts available, on reasonable notice, for inspection during business hours by an independent chartered accountant nominated by Chroma for the purpose of verifying the accuracy of any statement or report given by the Licensee to Chroma under this Clause 4. The frequency of inspections shall be limited to a maximum of one inspection in any three month period. The accountant shall be required to keep confidential all information learnt during any such inspection, and to disclose to Chroma only such details as may be necessary to report on the accuracy of the Licensee’s statement or report. Chroma shall be responsible for the accountant’s charges unless the accountant certifies that there is an inaccuracy leading to an underpayment of more than 5% (five percent) in any statement, in which case the Licensee shall pay his charges in respect of that inspection. 

5 

Commercialization 

5.1 

The Licensee shall use Diligent and Reasonable Efforts to develop and commercially exploit the Patents in the Territory. ‘

5.2 

Without prejudice to the generality of the Licensee’s obligations under Clause 5.1, the Licensee shall hold quarterly commercialization review and strategy meetings as per Clause 9 and an updated, written report, showing past and current activities taken by the Licensee to bring Licensed Products to market and maximize the sale of Licensed Products and Services worldwide. 

6 

Intellectual property

6.1 

Patent expenses

6.1.1

The Licensee shall be responsible for the prosecution of the Patents and responsible for payment directly to patent agents and others of all prosecution and renewal fees in respect of the Patents after the Commencement Date; provided that if the Licensee wishes to abandon any such application or not to maintain any such Patent (or to cease funding such application or patent), it shall give 1 months prior written notice to Chroma and on the expiry of such notice period the Licensee shall cease to be licensed under the patent application or patent identified in the notice. 

6.1.2

The Licensee undertakes that payments pursuant to Clauses 6.1.1 shall be made within 30 days of receipt of invoice by the Licensee. 

6.2 

Infringement of the Patents

6.2.1

Each Party shall inform the other Party promptly if it becomes aware of any infringement or potential infringement of any of the Patents in the Field, and the Parties shall consult with each other to decide the best way to respond to such infringement. 

6.2.2 

If the Parties fail to agree on a joint programme of action, including how the costs of any such action are to be borne and how any damages or other sums received from such action are to be distributed, then the Licensee shall be entitled to take action against the third party at its sole expense, subject to the following provisions of this Clause 6.2.

6.2.3 

Before starting any legal action under Clause 6.2, the Licensee shall consult with (and take account of the view of) Chroma as to the advisability of the action or settlement, its effect on the good name of Chroma, the public interest, and how the action should be conducted. 

6.2.4 

If the alleged infringement is both within and outside the Field, the Parties shall also co-operate with Chroma’s other licensees (if any) in relation to any such action and shall take such action in respect of such infringement as Chroma may request in writing. 

9

6.2.5 

The Licensee shall indemnify Chroma for all Claims (including any damages, costs, expenses and liability of whatsoever nature) incurred in relation to such action within 30 days of being notified of the amount of such expenses by Chroma. The Licensee shall in addition pay to Chroma a royalty of 15% (fifteen percent), in accordance with Clause 4, on any damages received from such action as if such damages were Net Receipts of the type envisaged in Clause 4.4.3.2.

6.2.6 

Chroma may agree to be joined in any suit to enforce such rights subject to being indemnified and secured in a manner acceptable to Chroma in its absolute discretion as to any costs, damages, expenses or other liability and shall have the right to be separately represented by its own counsel at the Licensee’s expense. 

6.3 

Infringement of third party rights

6.3.1 

If any warning letter or other notice of infringement is received by a Party, or legal suit or other action is brought against a Party, alleging infringement of third party rights in the manufacture, use or sale of any Licensed Product or use of any Patents , that Party, and the Parties shall discuss the best way to respond. 

6.3.2 

The Licensee shall have the right but not the obligation to defend such suit to the extent it relates to activities in the Field and shall have the right to settle with such third party, provided that if any action or proposed settlement involves the making of any statement, express or implied, concerning the Patent (whether as to validity or otherwise), the consent of Chroma must be obtained before taking such action or making such settlement. 

7 

Warranties and Liability 

7.1 

Warranties by Chroma. Chroma:

7.1.1 warrants that, as at the start of this Agreement, it is the registered proprietor of, or applicant for, the Patents and has caused its directors and employees to execute such assignments of the Patents as may be necessary to give title to the Patents to Chroma; and

7.1.2 undertakes that it has not done, and shall not do nor agree to do during the continuation of this Agreement, any of the following things if to do so would be inconsistent with the exercise by the Licensee of the rights granted to it under this Agreement, namely:

7.1.2.1 grant or agree to grant any rights in the Patents in the Field in the Territory; or

7.1.2.2 subject to Clause 10.3.2, assign or otherwise transfer any of the Patents in the Field in the Territory or any of its rights or obligations under this Agreement.

7.2 

No other warranties

7.2.1

Each of the Licensee and Chroma acknowledges that, in entering into this Agreement, it does not do so in reliance on any representation, warranty or other provision except as expressly provided in this Agreement, and any conditions, warranties or other terms implied by statute or common law are excluded from this Agreement to the fullest extent permitted by law.

7.2.2 

Without limiting the scope of clause 7.2.1 above, Chroma does not make any representation nor give any warranty or undertaking:

7.2.2.1 as to the efficacy or usefulness of the Patents; or

7.2.2.2 that any of the Patents is or will be valid or subsisting or (in the case of an application) will proceed to grant; or 

7.2.2.3 that the use of any of the Patents, the manufacture, sale or use of the Licensed Products or the exercise of any of the rights granted under this Agreement will not infringe any other intellectual property or other rights of any other person; or

7.2.2.4 that any other information communicated by Chroma to the Licensee under or in connection with this Agreement will produce Licensed Products of satisfactory quality or fit for the purpose for which the Licensee intended; or

10

7.2.2.5 as imposing any obligation on Chroma to bring or prosecute actions or proceedings against third parties for infringement or to defend any action or proceedings for revocation of any of the Patents; or

7.2.2.6 as imposing any liability on Chroma in the event that any third party supplies Licensed Products to customers located in the Territory. 

7.3 

Indemnity. The Licensee shall indemnify all Indemnitees against all third party Claims that may be asserted against or suffered by any of the Indemnitees and which relate to the use by the Licensee or any of its Affiliates or sub-licensees of the Patents or otherwise in connection with the development, manufacture, use or sale of or any other dealing in any of the Licensed Products or provision of any Services by Licensee or any of its sub-licensees, or subsequently by any customer or any other person, including claims based on product liability laws. 

7.4

Liability.

7.4.1 

To the extent that any Indemnitee has any liability in contract, tort, or otherwise under or in connection with this Agreement, including any liability for breach of warranty, their liability shall be limited in accordance with the following provisions of this Clause 7.4.

7.4.2

The aggregate liability of the Indemnitees shall be limited to the total income that Chroma has received from the Licensee (less any expenses that Chroma has incurred in obtaining, maintaining or defending the Patents) during the period of 5 (five) years preceding the date on which the liability arises; and, 

7.4.3 

In no circumstances shall any of the Indemnitees be liable for any loss, damage, costs or expenses of any nature whatsoever incurred or suffered by the Licensee or its Affiliates or sub-licensees:

7.4.3.1 that is of an indirect, special or consequential nature or

7.4.3.2 any loss of profits, revenue, business opportunity or goodwill.

7.4.4

Nothing in this Agreement excludes any person’s liability to the extent that it may not be so excluded under applicable law, including any such liability for death or personal injury caused by that person’s negligence, or liability for fraud. 

8 

Term and Termination 

8.1 

Commencement and Termination by Expiry. This Agreement, and the licenses granted hereunder, shall come into effect on the Commencement Date and, unless terminated earlier in accordance with this Clause 8 shall continue in force until the expiration, lapse or invalidation of the last remaining patents issued under the Patents or if such Patents are patent applications under such patents, until they are refused or rejected without a right of appeal.

8.2 

Early Termination 

8.2.1 

The Licensee may terminate this Agreement at any time on 90 days’ notice in writing to Chroma.

8.2.2 

Without prejudice to any other right or remedy, either Party may terminate this Agreement at any time by notice in writing to the other Party (“Other Party”), such notice to take effect as specified in the notice: 

8.2.2.1 if the Other Party is in material breach of this Agreement and, in the case of a breach capable of remedy within 90 days, the breach is not remedied within 90 days of the Other Party receiving notice specifying the breach and requiring its remedy; or if: 

8.2.2.2 any of the following occurs:

8.2.2.2.1 the Other Party becomes insolvent or unable to pay its debts as and when they become due;

8.2.2.2.2

an order is made or a resolution is passed for the winding up of the Other Party (other than voluntarily for the purpose of solvent amalgamation or reconstruction): or

8.2.2.2.3 the other Party is subject to a force majeure under clause 10.1 and fails to remedy such force majeure within 90 days.

11

8.2.3 

Chroma may terminate this Agreement by giving written notice to the Licensee, such termination to take effect forthwith or as otherwise stated in the notice if the Licensee or any of its Affiliates or sub-licensees commences legal proceedings, or assists any third party to commence legal proceedings, to challenge the validity or ownership of any of the Patents. 

8.3 

Consequences of termination or expiry

8.3.1 

The Licensee agrees that termination or expiry of this Agreement for any reason shall not absolve the Licensee’s obligations to pay Patents costs subject to Clause 6.1 of this Agreement where such costs are in respect of a period prior to the date of termination. 

8.3.2 

Upon termination or expiry of this Agreement for any reason: 

8.3.2.1 

otherwise than in accordance with Clause 8.1, the Licensee and its sub-licensees shall be entitled to sell, use or otherwise dispose of (subject to payment of royalties under Clause 4) any unsold or unused stocks of the Licensed Products for a period of 6 months following the date of termination; 

8.3.2.2 

the Licensee shall no longer be licensed to use or otherwise exploit in any way, either directly or indirectly, the Patents, in so far and for as long as any of the Patents remain in force;

8.3.2.3 

the Licensee shall consent to the cancellation of any formal license granted to it, or of any registration of it in any register, in relation to any of the Patents; and 

8.3.3 

Subject as provided in these Clauses 8.3.1 and 8.3.2, and except in respect of any accrued rights, neither party shall be under any further obligation to the other. 

8.3.4 

Upon termination or expiry of this Agreement for any reason the provisions of clauses 2.4, 3.1 to 3.3, 4 (in respect of sales made or other income generated prior to termination or under clause 8.3.2.1), 6, 7.3, 7.4, 8, 10.8, 10.9 and 10.13 shall remain in force. 

8.3.5 

Upon termination or expiry of this Agreement for any reason, all rights (of whatsoever nature) to the Patents shall return to Chroma.

8.3.6 

Upon termination or expiry of this Agreement for any reason, the Licensee will do all that is necessary to transfer the ownership of any of its sub-licensees intellectual property rights that constitute improvements, modifications or enhancements created, developed or arising from the Technology and/or the Patents to Chroma and pending such transfer the license granted to Chroma by the Licensee in clause 2.4 shall continue in full force and effect. Any costs incurred in transferring ownership shall be borne solely by the Licensee. 

9 

Governance 

9.1 

The Licensee or its Affiliates will hold bi-annual scientific and commercial review and strategy meetings on the progress and future activities for the commercialisation of the Technology where Chroma will have the right to attend and contribute.

9.2 

Within 30 days after the signing of this Agreement, and within 30 days of the anniversary in each subsequent calendar year, the Licensee or its Affiliate shall provide in writing to Chroma: 

9.2.1 

a forward looking plan outlining the intended work plan for the following 12 month period, such plan shall include details of any proposed changes to any of the claims made in any of the Patents; 

9.2.2 

an outline report on research and development progress made (including details of changes made to any of the claims in any of the Patents) and list agreements, including sub-licensing discussions and agreements, entered into with any third parties in relation to rights granted under this Agreement during the preceding twelve months. 

12

10 

General 

10.1 

Force majeure. Neither party shall have any liability or be deemed to be in breach of this Agreement (save in respect of non-payment by the Licensee of any sums owing to Chroma) for any delays or failures in performance of this Agreement which result from circumstances beyond the reasonable control of that Party, including without limitation labour disputes involving that Party. The Party affected by such circumstances shall promptly notify the other Party in writing when such circumstances cause a delay or failure in performance and when they cease to do so.

10.2 

Amendment. This Agreement may only be amended in writing signed by duly authorized representatives of Chroma and the Licensee. 

10.3 

Assignment and third party rights. 

10.3.1 

Subject to Clause 10.3.2, neither Party shall assign any rights or obligations under this Agreement without the prior written consent of the other Party.

10.3.2  

Either Party may assign all its rights and obligations under this Agreement to any of its Affiliates and to any company to which it transfers all or substantially all of its assets or business, PROVIDED that the assignee undertakes to the other Party to be bound by and perform the obligations of the assignor under this Agreement. However a Party shall not have such a right to assign this Agreement if it is insolvent or any other circumstance described in Clause 8.2.2.2 applies to it. 

10.4 

Waiver. No failure or delay on the part of either Party to exercise any right or remedy under this Agreement shall be construed or operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude the further exercise of such right or remedy.

10.5

Invalid clauses. If any provision or part of this Agreement is held to be invalid, amendments to this Agreement may be made by the addition or deletion of wording as appropriate to remove the invalid part or provision but otherwise retain the provision and the other provisions of this Agreement to the maximum extent permissible under applicable law. 

10.6 

No Agency. Neither Party shall act or describe itself as the agent of the other, nor shall it make or represent that it has authority to make any commitments on the other’s behalf. 

10.7 

Interpretation. In this Agreement:

10.7.1 

the headings are used for convenience only and shall not affect its interpretation;

10.7.2 

references to persons shall include incorporated and unincorporated persons; references to the singular include the plural and vice versa; and references to the masculine include the feminine;

10.7.3 

references to Clauses and Schedules mean clauses of, and schedules to, this Agreement;

10.7.4

references in this Agreement to termination shall include termination by expiry; and

10.7.5 

where the world “including” is used it shall be understood as meaning “including without limitation”.

10.8 

Notices

10.8.1 

Any notice to be given under this Agreement shall be in writing and shall be sent by first class mail or air mail, or by fax (confirmed by first class mail or air mail) to the address of the relevant Party set out at the head of this Agreement, or to the relevant fax number set out below, or such other address or fax number as that Party may from time to time notify to the other Party in accordance with this Clause 10.8. The fax numbers of the Parties are as follows: 

Chroma FAX number: 01235829125

Licensee FAX number: 02030084415

13

10.8.2 

Notices sent as above shall be deemed to have been received three working days after the day of posting (in the case of inland first class mail), or seven working days after the date of posting (in the case of air mail), or on the next working day after transmission (in the case of fax messages, but only if a transmission report is generated by the sender’s fax machine recording a message from the recipient’s fax machine, confirming that the fax was sent to the number indicated above and confirming that all pages were successfully transmitted). 

10.9 

Law and jurisdiction. This Agreement shall be governed by English law and shall be subject to the exclusive Jurisdiction of the English courts to which the Parties hereby submit, except that a party may seek an interim injunction in any court of competent jurisdiction. 

10.10 

Further action. Each party agrees to execute, acknowledge, and deliver 

such further instruments, and do all further similar acts, as may be necessary or appropriate to carry out the purpose and intent of this Agreement. 

10.11. 

Announcements. Save as required by law or in respect of any regulatory requirements, neither Party shall make any press or other public announcement concerning any aspect of this Agreement, or make any use of the name of the other Party in connection with or in consequence of this Agreement, without the prior written consent of the other Party. 

10.12 

Entire agreement. This Agreement, including its Schedules, sets out the entire agreement between the Parties relating to its subject matter and supersedes all prior oral or written agreements, arrangements or understandings between them relating to such subject matter. The Parties acknowledge that they are not relying on any representation, agreement, term or condition which is not set out in this Agreement. 

10.13 

Third parties. Except for the rights of the Indemnitees as provided in clauses 7.3 and 7.4, who may in their own right enforce the provisions of that Clause, this Agreement does not create any right enforceable by any person who is not a party to it (“Third Party”) under the Contracts (Rights of Third Parties) Act 1999, but this clause does not affect any right or remedy of a Third Party which exists or is available apart from that Act. The Parties may amend, renew, terminate or otherwise vary all or any of the provisions of this Agreement, including Clauses 7.3 and 7.4, without the consent of the Indemnitees. 

AGREED by the parties through their authorized signatories

For and on behalf of

CHROMA THERAPEUTICS 

LIMITED 

Signed

 /s/ Richard Bungay      

Name

Richard Bungay

Title 

Chief Financial Officer

Date 

October 3rd, 2007

For and on behalf of 

VALIRX PLC 

Signed  

/s/ J. Micallef                 

Name

J. Micallef

Title 

COO

Date 

October 3rd, 2007

14

Schedule 1

The Patents 

							
	Reference 

	Country

	Title

	Priority Date

	Application No.

	Publication No.

	Case Status

	W02005/019826 AI

	Worldwide 

	Detection of Histone Modifications in Cell-Free Nucleosomes 

	18 August 2003

	PCT/GB2004/003564

	W02005/019826 AI

	National phase 

15

Schedule 2

Appointment of expert

1. 

Pursuant to Clauses 4.5 and 4.6, Chroma may serve a notice on the Licensee (“Referral Notice”), in accordance with Clause 10.8, notifying the Licensee that it wishes to refer the dispute to an expert (the “Expert”) for his determination. 

2. 

The Parties shall agree the identity of a single independent, impartial expert to determine such questions. In the absence of such agreement within 30 days of the Referral Notice, either of the Parties may request an expert be appointed by the President of The Law Society of England and Wales. 

3. 

60 days after the giving of a Referral Notice, both Parties shall exchange simultaneously statements of case in no more than 10,000 words, in total, and each side shall simultaneously send a copy of its statement of case to the Expert. 

4. 

Each Party may, within 30 days of the date of exchange of statement of case pursuant to paragraph 3 above, serve a reply to the other side’s statement of ease of not more than 10,000 words. A copy of any such reply shall be simultaneously sent to the Expert. 

5. 

The Expert shall make his decision on the basis of written statements and supporting documentation only and there shall be no oral hearing. The Expert shall issue his decision in writing within 30 days of the date of service of the last reply pursuant to paragraph 4 above, or, in the absence of receipt of any replies, within 60 days of the date of exchange pursuant to paragraph 3 above. 

6. 

The Expert’s decision shall (in the absence of manifest error) be final and binding on the Parties. 

7. 

All costs in relation to the appointment of the Expert shall be borne by the Parties in such proportions as the Expert shall determine. 

16

SUB – LICENSE

Patent Licence Agreement

THIS AGREEMENT dated 8th March 2010 is between: 

VALIRX PLC (ValiRx) 24 Greville Street, London EC1N 8SS, United Kingdom; 

and

VALIBIO SA (ValiBio or the Licensee) Avenue Georges Lemaitre 25, B-6041 Gosselies, Belgium.

WHEREAS;

·

Certain patents, intellectual property, know-how and technical data collectively known as the Intellectual Property Rights (IPR) were licensed from ValiRx to ValiBio under a Patent Licence Agreement dated 18th January 2008. This Agreement supersedes the previous Agreement and all others.

·

It is intended that ValiBio will develop and commercially exploit the licensed IPR in the Field.

·

It is intended that ValiBio will have commercial rights to the IPR in the Territory and within the Field. 

DEFINITIONS

In this Agreement, the following words shall have the following meanings: 

Affiliate 

In relation to a Party, means any entity or person that Controls, is controlled by, or is under common Control with that Party. Except and insofar as ValiBio is an Affiliate of ValiRx and were so to be would conflict the Parties or lead to a circular indemnity right or duty 

Claims 

All demands, claims and liability (whether criminal or civil, in contract, tort or otherwise) for losses, damages, legal costs and other expenses of any nature whatsoever and all costs and expenses (including without limitation legal costs) incurred in connection therewith.

Commencement Date 

The date of this Agreement.

Control 

Direct or indirect beneficial ownership of 50% (or, outside a Party’s home territory, such lesser percentage as is the maximum, permitted level of foreign investment) or more of the share capital, stock or other participating interest carrying the right to vote or to distribution of profits of that Party, as the case may be. 

Diligent 

and Reasonable Efforts

Exerting such efforts and employing such resources as would be exerted or employed by a reasonable third party company for a product of similar market potential at a similar stage of its product life, when utilising sound and reasonable scientific, business and medical practice and judgment in order to develop the product in a timely manner and maximize the economic return to the Parties from its commercialisation. 

Field 

The diagnosis, prevention, treatment of disease and pharmacogenomic applications and the provision of technology, products or services including the detection or identification of actual or potential gene expression or the characterization or identification of cell types or differentiation states. It is intended to include therapeutic monitoring and the use of the IPR in therapeutic regime design and monitoring including the use of the IPR in therapeutic discovery and development both clinically and non-clinically. Material used may be Human tissues, physiological fluids and other human and animal derived material directly or indirectly obtained.

Indemnitees 

ValiRx and its Affiliates, and their respective officers, directors, Council members, employees and representatives.

17

Licensed Products 

Any and all products that are manufactured, sold or otherwise supplied by the Licensee or its sub-licensee (including any Affiliate of the Licensee) and which are within any Valid Claim of the Patent No. PCT/GB2004/ 003564 

Net Receipts 

The sum of;

a) the Royalty Income and, 

b) the Sub-licence Non-Royalty Income.

Net Sales Value 

The aggregate amount invoiced for all Licensed Products sold by the Licensee or its Affiliates to independent third parties in arm’s length transactions exclusively for money or, where the sale is not at arm’s length, the price that would have been so invoiced if it had been at arm’s length, after deduction of all documented: 

a) normal trade discounts actually granted and any credits  actually given for rejected or returned Licensed Products; 

b) costs of packaging, insurance, carriage and freight, provided in each case that the amounts are separately charged on the relevant invoice; 

c) value added tax or other sales tax; and, 

d) import duties or similar applicable government levies actually paid. 

Sales between any of the Licensee, its Affiliates and sub-licensees shall not be considered for the purposes of this definition unless there is no subsequent sale to a person who is not the Licensee, its Affiliate or sub-licensee in an arm’s length transaction exclusively for money within three months from the original sale or such other time period as may be agreed by the Parties from time to time on a case by case basis.

Parties 

ValiRx and ValiBio, and “Party” shall mean either of them.

Patents 

Any and all of the patents and patent applications referred to in Schedule 1 including any continuations, continuations in part, extensions, reissues, divisions, and any patents, supplementary protection certificates and similar rights that are based on or derive priority from the foregoing and relating to the patent No. PCT/GB2004/ 003564 

Primary License

The license granted to ValiRx by License Chroma Therapeutics Limited a Company registered in England and Wales under Company number 04066289 whose principal place of business is 93 Milton Park, Abingdon, Oxon OX14 4RY

Royalty Income 

Any royalty payment (excluding value added tax) obtained by, or due to, the Licensee or its Affiliates, in relation to the sub-licensing (including the grant of any option over a sub-license) of any of the Patents.

Service 

The supply of a consultancy or technical service (including contract research and development) to a third party that includes within the provision of such service or requires in its performance the Licensee’s use of technology falling within a Valid Claim of the Patents.

Service Fee 

Any fee, after deduction of any value-added tax or other sales tax, invoiced to any third party by the Licensee or its Affiliates for the provision of a Service. 

Sub-license 

Non-Royalty Income 

The amount of any payment (excluding value added tax and Royalty Income), and the value of any non-monetary receipt, obtained by, or due to, Licensee or its Affiliates, in relation to the sub-licensing (including the grant of any option over a sub-license) of any of the Patents, and including any of the following: 

a) up-front, milestone (whether at the stage of development, marketing or otherwise), success, bonus, maintenance and periodic (including annual) payments due under any sub-license agreement; 

18

b) where any sub-license is to be granted under cross-licensing arrangements, the value of any third party license obtained under such arrangements; 

c) any funding received from a sub-licensee for shares, options or other securities in respect of any of the share capital of the Licensee or its Affiliates; 

d) any guarantee or other financial benefit received from a sub-licensee; and 

e) any loan received from a sub-licensee which is not ultimately repaid, or any loan which is on terms other than arm’s length terms, or any loan that is convertible to equity or other non-cash form where such conversion occurs. 

Territory 

Worldwide.

Valid Claim 

A claim of a patent or patent application that has not expired or been held invalid or unenforceable by a court of competent jurisdiction in a final and non-appealable judgment.

1

Grant of Rights

1.1

Licences. ValiRx hereby grants to ValiBio, subject to the provisions of this Agreement, a non-transferable, exclusive license in the Field under the Patents, with the right to sub-license, subject to clause 1.3 below, to develop, manufacture, have manufactured, use and sell Licensed Products or to supply a Service but in each case only in the Field in the Territory.

1.2

Formal licenses. At the request and cost of the Licensee, the Parties shall execute such formal licenses as may be necessary or appropriate for registration of this Agreement with Patent Offices and other relevant authorities in particular territories. In the event of any conflict in meaning between any such license and the provisions of this Agreement, the provisions of this Agreement shall prevail. Prior to the execution of the formal license(s) (if any) referred to in this Clause 1.2, the Parties shall so far as possible have the same rights and obligations towards one another as if such license(s) had been granted. The Parties shall use reasonable endeavors to ensure that, to the extent permitted by relevant authorities; this Agreement shall not form part of any public record.

1.3

Sub-licensing. ValiBio shall be entitled to grant sub-licenses of its rights under this Agreement to any person, provided that:

a) the sub-license shall include obligations on the sub-licensee which are equivalent to the obligations on ValiBio under this Agreement;

 

b) within 30 days of the grant of any sub-license ValiBio shall provide to ValiRx a true copy of it; and ValiBio shall be responsible for any breach of the sub-license by the sub-licensee, as if the breach had been that of ValiBio under this Agreement, and ValiBio shall indemnify ValiRx against any loss, damages, costs, claims or expenses which are awarded against or suffered by ValiRx as a result of any such breach by the sub-licensee.

1.4

Reservation of rights. ValiRx reserves the non-exclusive right for it and its Affiliates to use in any way without limitation the Patents and Technology in the Field for all non-commercial purposes.  ValiBio hereby grants to ValiRx an irrevocable, perpetual, worldwide, non-exclusive, royalty-free license for it and its Affiliates to use any of its and its sub-licensees’ intellectual property rights that constitute improvements, modifications or enhancements created, developed or arising from the Technology and/or the Patents for all non-commercial purposes. For the avoidance of doubt, non-commercial purposes shall include the use of any assays that are developed as research tools that may aid ValiRx’ or its Affiliate’s drug discovery programmes.

1.5

No other license. Except for the licenses expressly granted by this Agreement, ValiRx reserves all its rights. Without prejudice to the generality of the foregoing ValiRx reserves all rights under the Patents outside the Field.

1.6

ValiBio shall have the full right to sub-license and transfer all its rights contained in this agreement to any of its third party collaborators taking due account of the terms and conditions of the Primary Licenses granted to ValiRx. 

19

1.7

And ValiBio  shall  have  the  full  right  to  sell  and  market  the Products and Licensed Products under ValiBio or its third party collaborator's own brand and trademarks taking due account of the terms and conditions of the Primary Licenses granted to ValiRx.

1.8

That ValiBio shall have full rights to register all new patent applications it may make in the Territory. If ValiRx does not have patents on this product, or insufficient patent protection in the opinion of ValiBio, then ValiBio shall have the full rights to apply for and register such patents and ValiRx shall provide and disclose all necessary intellectual information to ValiBio for this purpose. Provided that that the terms and conditions of the Primary Licenses granted to ValiRx are observed.

2

Know-how and Confidential Information

2.1 

Confidentiality obligations. Each Party (“Receiving Party”) undertakes: 

2.1.1 

to maintain as secret and confidential all know-how and other technical or commercial information obtained directly or indirectly from the other Party (“Disclosing Party”) in the course of or in anticipation of this Agreement and to respect the Disclosing Party’s rights therein; 

2.1.2 

to use the same exclusively for the purposes of this Agreement; and 

2.1.3 

to disclose the same only to those of its employees, Affiliates and sub-licensees pursuant to this Agreement (if any) to whom and to the extent that such disclosure is reasonably necessary for the purposes of this Agreement. 

2.2 

Exceptions to obligations. The provisions of Clause 2.1 shall not apply to know-how and other information which the Receiving Party can demonstrate by reasonable, written evidence: 

2.2.1 

was, prior to its receipt by the Receiving Party from the Disclosing Party, in the possession of the Receiving Party and at its free disposal; or 

2.2.2 

is subsequently disclosed to the Receiving Party without any obligations of confidence by a third party who has not derived it directly or indirectly from the Disclosing Party; or 

2.2.3 

is or becomes generally available to the public through no act or default of the Receiving Party or its employees, Affiliates or sub-licensees; or 

2.2.4 

the Receiving Party is required to disclose to the courts of any competent jurisdiction, or to any government regulatory agency or financial authority, provided that the Receiving Party shall:

2.2.4.1 

inform the Disclosing Party as soon as is reasonably practicable; and,

2.2.4.2 

at the Disclosing Party’s request seek to persuade the court, agency or authority to have the information treated in a confidential manner, where this is possible under the court, agency or authority’s procedures. 

2.3 

Disclosure to employees. The Receiving Party shall procure that all of its employees, Affiliates and sub-licensees pursuant to this Agreement (if any) who have access to any of the Disclosing Party’s information to which Clause 2.1 applies, shall be made aware of and subject to these obligations and shall have entered into written undertakings of confidentiality at least as restrictive as in this Agreement.

3 

Payments

3.1

In exchange for the Licenses to the Patents ValiBio will pay to ValiRx an annual technology access fee of €25,000 on the Commencement Date and each anniversary following the signing of this Agreement.

3.2 

Royalties 

3.2.1 

Royalties on Net Sales Value. The Licensee shall pay to ValiRx a royalty of 5% of the Net Sales Value. 

3.2.2 

Royalties on Service Fees. The Licensee shall pay to ValiRx a royalty of 10% of all Service Fees. 

20

3.2.3 

Royalties on Net Receipts 

3.2.3.1 

Royalties on sub-license Royalty Income. The Licensee shall pay to ValiRx a royalty equal to the following percentage of the Royalty Income over the term of this Agreement: 15% of all cumulative Royalty Income less than or equal to €1,500,000 and, 10% of all cumulative Royalty Income in excess of €1,500,000.

3.2.3.2 

Royalties on Sub-license Non-Royalty Income. The Licensee shall pay to ValiRx a royalty of 10% of Sub-license Non-Royalty Income. 

3.3 

If the Parties disagree as to the calculation of any Service Fees, Net Receipts or Net Sales Value, including without limitation any disagreement as to the cash value of any non-monetary receipt, but excluding any dispute as to whether a product is a Licensed Product, such disagreement shall be referred to an independent expert who shall be appointed and who shall act in accordance with the provisions of Schedule 2 

3.4 

Combination Products. If any Licensed Products are incorporated in any other product (“Combination Product”) supplied by the Licensee or its Affiliates and the Licensed Product is not priced separately from the Combination Product, the Net Sales Value of such Licensed Product shall be deemed to be that proportion of the Net Sales Value of the Combination Product which is attributable to the Licensed Product, comparing the actual manufacturing cost of the Licensed Product with that of the Combination Product, as in the following formula: Net Sales Value of Licensed Product = (actual manufacturing cost of Licensed Product divided by total actual manufacturing cost of Combination Product) x Net Sales Value of Combination Product. If the Parties disagree as to the calculation of the actual manufacturing cost referred to in this Clause 3.4, such disagreement shall be referred to an independent expert who shall be appointed and who shall act in accordance with the provisions of Schedule 2. 

3.5 

Payment frequency. Royalties due under this Agreement shall be paid within 60 days of the end of each quarter ending on 31 March, 30 June, 30 September and 31 December, in respect of sales of Licensed Products or Services made and sub-licenses current during such quarter and within 60 days of the termination of this Agreement. 

3.6 

Payment terms. All sums due under this Agreement: 

3.6.1 

are exclusive of value added tax which where applicable will be paid by the Licensee to ValiRx in addition; 

3.6.2 

shall be paid in pounds sterling or Euros at ValiRx’ sole discretion in cash by transferring an account in aggregate to the following account: 

Sort code: 16-00-02 

Number: 20362531 

Bank name: Royal Bank of Scotland

Currency: GBP 

Branch name: MANCHESTER ST ANN ST OFFICE  

BIC: RBOSGB2L  

IBAN: GB02RBOS16000220362531   

and in the case of sales or sub-license income received by ValiBio or its Affiliates in a currency other than pounds sterling or Euros, the royalty shall be calculated in the other currency and then converted into equivalent pounds sterling at the buying rate of such other currency as quoted by The Royal Bank of Scotland in London as at the close of business on the last business day of the quarterly period with respect to which the payment is made; 

3.6.3 

shall be made without deduction of income tax or other taxes charges or duties that may be imposed, except insofar as ValiBio is required to deduct the same to comply with applicable laws. The Parties shall cooperate and take all steps reasonably and lawfully available to them, at the expense of ValiBio, to avoid deducting such taxes and to obtain double taxation relief. If the Licensee is required to make any such deduction it shall provide ValiRx with such certificates or other documents as it can reasonably obtain to enable ValiRx to obtain appropriate relief from double taxation of the payment in question; and 

3.6.4 

shall be made by the due date, failing which ValiRx may charge interest on any outstanding amount on a daily basis at a rate equivalent to 3% above the Barclays Bank Plc base lending rate then in force in London. 

21

3.7 

Exchange controls. If at any time during the continuation of this Agreement the Licensee is prohibited from making any of the payments required hereunder by a governmental authority in any country then ValiBio shall within the prescribed period for making the said payments in the appropriate manner use its best endeavors to secure from the proper authority in the relevant country permission to make the said payments and shall make them within 7 days of receiving such permission. If such permission is not received within 30 days of ValiBio making a request for such permission then, at the option of ValiRx, ValiBio shall deposit the royalty payments due in the currency of the relevant country either in a bank account designated by ValiRx within such country or such royalty payments shall be made to an associated company of ValiRx designated by ValiRx and having offices in the relevant country designated by ValiRx. 

3.8 

Royalty statements. ValiBio shall send to ValiRx at the same time as each royalty payment is made in accordance with Clause 3.8 a statement setting out, in respect of each territory or region in which Licensed Products or Services are sold, the types of Licensed Product or Services sold, the quantity of each type sold, and the total Net Sales Value, Service Fees and the total Net Receipts in respect of each type, expressed both in local currency and pounds sterling and showing the conversion rates used, during the period to which the royalty payment relates. 

4

Records

4.1 

The Licensee shall keep at its normal place of business detailed and up to date records and accounts showing the quantity, description and value of Licensed Products and Services sold by it, and the amount of sublicensing revenues received by it in respect of Licensed Products, on a country by country basis, and being sufficient to ascertain the payments due under this Agreement. 

4.2 

The Licensee shall make such records and accounts available, on reasonable notice, for inspection during business hours by an independent chartered accountant nominated by ValiRx for the purpose of verifying the accuracy of any statement or report given by the Licensee to ValiRx under this Clause 4. The frequency of inspections shall be limited to a maximum of one inspection in any three month period. The accountant shall be required to keep confidential all information learnt during any such inspection, and to disclose to ValiRx only such details as may be necessary to report on the accuracy of the Licensee’s statement or report. ValiRx shall be responsible for the accountant’s charges unless the accountant certifies that there is an inaccuracy leading to an underpayment of more than 5% (five percent) in any statement, in which case the Licensee shall pay his charges in respect of that inspection. 

5

Commercialisation 

5.1

The Licensee shall use Diligent and Reasonable Efforts to develop and commercially exploit the Patents in the Territory. 

5.2 

Without prejudice to the generality of the Licensee’s obligations under Clause 5.1, the Licensee shall hold quarterly commercialisation review and strategy meetings as per Clause 9 and an updated, written report, showing past and current activities taken by the Licensee to bring Licensed Products to market and maximise the sale of Licensed Products and Services worldwide. 

5.3

Quality. ValiBio shall ensure that all of the Licensed Products marketed by it are of satisfactory quality and comply with all applicable laws and regulations in each part of the Territory and shall contractually require all sub-licensees to ensure that all Licensed Products marketed by them are of satisfactory quality and comply with all applicable laws and regulations in each part of the Territory and that relevant patent information and other IPR notification will be incorporated into labeling, packaging and other written information including non-exclusively instructional and advertising material as applicable.

5.4

Responsibility for development of Licensed Products. ValiBio shall directly itself, or through a third party collaborator, be exclusively responsible for the technical and commercial development and manufacture of Licensed Products and for incorporating any modifications or developments thereto that may be necessary or desirable and for all Licensed Products sold or supplied, and shall prepare  all  the  necessary  regulatory approvals, registrations, sales and marketing permissions for the Field and in the Territory and ValiBio shall indemnify ValiRx.

5.5

Transfer of IPR and Know-How. ValiRx will following the Commencement Date provide ValiBio with relevant Know-How that is in ValiRx’ possession to ValiBio. 

22

6 

Intellectual property 

6.1

Patent expenses 

6.1.1 

ValiBio shall be responsible for the prosecution of the Patents and responsible for payment directly to patent agents and others of all prosecution and renewal fees in respect of the Patents after the Commencement Date; provided that if the Licensee wishes to abandon any such application or not to maintain any such Patent (or to cease funding such application or Patent), it shall give 1 month’s prior written notice to ValiRx and on the expiry of such notice period the Licensee shall cease to be licensed under the patent application or patent identified in the notice.  

6.1.2 

ValiBio undertakes that payments pursuant to Clause 6.1.1 shall be made within 30 days of receipt of invoice by the Licensee. 

6.1.3

ValiBio will inform ValiRx of all activities undertaken with respect to the Patents.

6.1.4

Due Diligence and a duty of care will be exercised by ValiBio in its activities with respect to the prosecution of the Licensed IP and Patents.

6.2

Infringement of the Patents

6.2.1 

Each Party shall inform the other Party promptly if it becomes aware of any infringement or potential infringement of any of the Patents in the Field, and the Parties shall consult with each other to decide the best way to respond to such infringement. 

6.2.2 

If the Parties fail to agree on a joint programme of action, including how the costs of any such action are to be borne and how any damages or other sums received from such action are to be distributed, then the Licensee shall be entitled to take action against the third party at its sole expense, subject to the following provisions of this Clause 6.2. 

6.2.3 

Before starting any legal action under Clause 6.2, the Licensee shall consult with (and take account of the view of) ValiRx as to the advisability of the action or settlement, its effect on the good name of ValiRx, the public interest, and how the action should be conducted. 

6.2.4 

If the alleged infringement is both within and outside the Field, the Parties shall also co-operate with ValiRx’ other licensees (if any) in relation to any such action and shall take such action in respect of such infringement as ValiRx may request in writing.

6.2.5 

The Licensee shall indemnify ValiRx for all Claims (including any damages, costs, expenses and liability of whatsoever nature) incurred in relation to such action within 30 days of being notified of the amount of such expenses by ValiRx. The Licensee shall in addition pay to ValiRx a royalty of 15% (fifteen percent), in accordance with Clause 3, on any damages received from such action as if such damages were Net Receipts of the type envisaged in Clause 3.3.2. 

6.2.6 

ValiRx may agree to be joined in any suit to enforce such rights subject to being indemnified and secured in a manner acceptable to ValiRx in its absolute discretion as to any costs, damages, expenses or other liability and shall have the right to be separately represented by its own counsel at the Licensee’s expense. 

6.3

Infringement of third party rights

6.3.1 

If any warning letter or other notice of infringement is received by a Party, or legal suit or other action is brought against a Party, alleging infringement of third party rights in the manufacture, use or sale of any Licensed Product or use of any Patents, that Party shall promptly provide full details to the other Party, and the Parties shall discuss the best way to respond. 

6.3.2 

The Licensee shall have the right but not the obligation to defend such suit to the extent it relates to activities in the Field and shall have the right to settle with such third party, provided that if any action or proposed settlement involves the making of any statement, express or implied, concerning the Patent (whether as to validity or otherwise), the consent of ValiRx must be obtained before taking such action or making such settlement. 

23

7 

Warranties and Liability 

7.1 

Warranties by ValiRx.  ValiRx: 

7.1.1 

warrants that, as at the Commencement Date of this Agreement, it undertaken such activities as may be necessary to give title to the Patents to ValiRx; and 

7.1.2 

undertakes that apart from a research and Coloration Agreement with the University of Surry summarised in Schedule 3 it has not done, and shall not do nor agree to do during the continuation of this Agreement, any of the following things if to do so would be inconsistent with the exercise by the Licensee of the rights granted to it under this Agreement, namely: 

7.1.2.1 

grant or agree to grant any rights in the Patents in the Field in the Territory; or 

7.1.2.2 

subject to Clause 10.3.2, assign or otherwise transfer any of the Patents in the Field in the Territory or any of its rights or obligations under this Agreement. 

7.2 

No other warranties 

7.2.1 

Each of the Licensee and ValiRx acknowledges that, in entering into this Agreement, it does not do so in reliance on any representation, warranty or other provision except as expressly provided in this Agreement, and any conditions, warranties or other terms implied by statute or common law are excluded from this Agreement to the fullest extent permitted by law. 

7.2.2 

Without limiting the scope of clause 7.2.1 above, ValiRx does not make any representation nor give any warranty or undertaking: 

7.2.2.1 

as to the efficacy or usefulness of the Patents; or 

7.2.2.2 

that any of the Patents is or will be valid or subsisting or (in the case of an application) will proceed to grant; or 

7.2.2.3 

that the use of any of the Patents, the manufacture, sale or use of the Licensed Products or the exercise of any of the rights granted under this Agreement will not infringe any other intellectual property or other rights of any other person; or 

7.2.2.4 

that any other information communicated by ValiRx to the Licensee under or in connection with this Agreement will produce Licensed Products of satisfactory quality or fit for the purpose for which the Licensee intended; or 

7.2.2.5 

as imposing any obligation on ValiRx to bring or prosecute actions or proceedings against third parties for infringement or to defend any action or proceedings for revocation of any of the Patents; or 

7.2.2.6 

as imposing any liability on ValiRx in the event that any third party supplies Licensed Products to customers located in the Territory. 

7.3 

Indemnity. ValiBio shall indemnify all Indemnitees against all third party Claims that may be asserted against or suffered by any of the Indemnitees and which relate to the use by ValiBio or any of its Affiliates or sub-licensees of the Patents or otherwise in connection with the development, manufacture, use or sale of or any other dealing in any of the Licensed Products or provision of any Services by Licensee or any of its sub-licensees, or subsequently by any customer or any other person, including claims based on product liability laws. 

7.4 

Liability. 

7.4.1 

To the extent that any Indemnitee has any liability in contract, tort, or otherwise under or in connection with this Agreement, including any liability for breach of warranty, their liability shall be limited in accordance with the following provisions of this Clause 7.4. 

24

7.4.2 

The aggregate liability of the Indemnitees shall be limited to the total income that ValiRx has received from the Licensee (less any expenses that ValiRx has incurred in obtaining, maintaining or defending the Patents) during the period of 5 (Five) years preceding the date on which the liability arises; and, 

7.4.3 

In no circumstances shall any of the Indemnitees be liable for any loss, damage, costs or expenses of any nature whatsoever incurred or suffered by the Licensee or its Affiliates or sub-licensees: 

7.4.3.1 

that is of an indirect, special or consequential nature or 

7.4.3.2 

any loss of profits, revenue, business opportunity or goodwill. 

7.4.4 

Nothing in this Agreement excludes any person’s liability to the extent that it may not be so excluded under applicable law, including any such liability for death or personal injury caused by that person’s negligence, or liability for fraud. 

8 

Term and Termination 

8.1 

Commencement and Termination by Expiry. This Agreement, and the licenses granted hereunder, shall come into effect on the Commencement Date and, unless terminated earlier in accordance with this Clause 8 shall continue in force until the expiration, lapse or invalidation of the last remaining patents issued under the Patents or if such Patents are patent applications under such patents, until they are refused or rejected without a right of appeal.

8.2

Early Termination

8.2.1

The Licensee may terminate this Agreement at any time on 90 days’ notice in writing to ValiRx. 

8.2.2

Without prejudice to any other right or remedy, either Party may terminate this Agreement at any time by notice in writing to the other Party (“Other Party”), such notice to take effect as specified in the notice:

8.2.2.1

if the Other Party is in material breach of this Agreement and, in the case of a breach capable of remedy within 90 days, the breach is not remedied within 90 days of the Other Party receiving notice specifying the breach and requiring its remedy; or if:

8.2.2.2 

any of the following occurs;

8.2.2.2.1 the Other Party becomes insolvent or unable to pay its debts as and when they become due; 

8.2.2.2.2 an order is made or a resolution is passed for the winding up of the Other Party (other than voluntarily for the purpose of solvent amalgamation or reconstruction); or

8.2.2.2.3 the other Party is subject to a force majeure under clause 10.1 and fails to remedy such force majeure within 90 days.

8.2.3 

ValiRx may terminate this Agreement by giving written notice to the Licensee, such termination to take effect forthwith or as otherwise stated in the notice if the Licensee or any of its Affiliates or sub-licensees commences legal proceedings, or assists any third party to commence legal proceedings, to challenge the validity or ownership of any of the Patents. 

8.3

Consequences of termination or expiry

8.3.1 

The Licensee agrees that termination or expiry of this Agreement for any reason shall not absolve the Licensee’s obligations to pay Patents costs subject to Clause 6.1 of this Agreement where such costs are in respect of a period prior to the date of termination. 

8.3.2 

Upon termination or expiry of this Agreement for any reason: 

8.3.2.1 

otherwise than in accordance with Clause 8.1, the Licensee and its sub-licensees shall be entitled to sell, use or otherwise dispose of (subject to payment of royalties under Clause 3) any unsold or unused stocks of the Licensed Products for a period of 6 months following the date of termination; 

25

8.3.2.2 

the Licensee shall no longer be licensed to use or otherwise exploit in any way, either directly or indirectly, the Patents, in so far and for as long as any of the Patents remain in force; 

8.3.2.3 

the Licensee shall consent to the cancellation of any formal license granted to it, or of any registration of it in any register, in relation to any of the Patents; and

8.3.3 

subject as provided in these Clauses 8.3.1 and 8.3.2, and except in respect of any accrued rights, neither party shall be under any further obligation to the other. 

8.3.4 

Upon termination or expiry of this Agreement for any reason the provisions of clauses 1.4, 3.1 to 3.4, 4 (in respect of sales made or other income generated prior to termination or under clauses 8.3.2.1), 6, 7.3, 7.4, 8, 10.8, 10.9 and 10.13 shall remain in force. 

8.3.5

Upon termination or expiry of this Agreement for any reason, all rights (of whatsoever nature) to the Patents shall return to ValiRx.

8.3.6

Upon termination or expiry of this Agreement for any reason, the Licensee will do all that is necessary to transfer the ownership of any of its and its sub-licensees’ intellectual property rights that constitute improvements, modifications or enhancements created, developed or arising from the Technology and/or the Patents to ValiRx and pending such transfer the license granted to ValiRx by the Licensee in clause 1.4 shall continue in full force and effect. Any costs incurred in transferring ownership shall be borne solely by the Licensee.

9 

Governance

9.1 

The Licensee or its Affiliates will hold bi-annual scientific and commercial review and strategy meetings on the progress and future activities for the commercialisation of the Technology where ValiRx will have the right to attend and contribute. 

9.2

Within 30 days after the signing of this Agreement, and within 30 days of the anniversary in each subsequent calendar year, the Licensee or its Affiliate shall provide in writing to ValiRx:

9.2.1

a forward looking plan outlining the intended workplan for the following 12 month period, such plan shall include details of any proposed changes to any of the claims made in any of the Patents;

9.2.2

an outline report on research and development progress made (including details of changes made to any of the claims in any of the Patents) and list agreements, including sub-licensing discussions and agreements, entered into with any third parties in relation to rights granted under this Agreement during the preceding twelve months.

10 

General 

10.1 

Force majeure. Neither Party shall have any liability or be deemed to be in breach of this Agreement (save in respect of non-payment by the Licensee of any sums owing to ValiRx) for any delays or failures in performance of this Agreement which result from circumstances beyond the reasonable control of that Party, including without limitation labour disputes involving that Party. The Party affected by such circumstances shall promptly notify the other Party in writing when such circumstances cause a delay or failure in performance and when they cease to do so. 

10.2 

Amendment. This Agreement may only be amended in writing signed by duly authorised representatives of ValiRx and the Licensee. 

10.3 

Assignment and third party rights. 

10.3.1 

Subject to Clause 10.3.2, neither Party shall assign any rights or obligations under this Agreement without the prior written consent of the other Party.

10.3.2 

Either Party may assign all its rights and obligations under this Agreement to any of its Affiliates and to any company to which it transfers all or substantially all of its assets or business, PROVIDED that the assignee undertakes to the other Party to be bound by and perform the obligations of the assignor under this Agreement. However a Party shall not have such a right to assign this Agreement if it is insolvent or any other circumstance described in Clause 8.2.2.2 applies to it.

26

10.4 

Waiver. No failure or delay on the part of either Party to exercise any right or remedy under this Agreement shall be construed or operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude the further exercise of such right or remedy. 

10.5 

Invalid clauses. If any provision or part of this Agreement is held to be invalid, amendments to this Agreement may be made by the addition or deletion of wording as appropriate to remove the invalid part or provision but otherwise retain the provision and the other provisions of this Agreement to the maximum extent permissible under applicable law. 

10.6 

No Agency. Neither Party shall act or describe itself as the agent of the other, nor shall it make or represent that it has authority to make any commitments on the other’s behalf. 

10.7 

Interpretation. In this Agreement: 

10.7.1 

the headings are used for convenience only and shall not affect its interpretation; 

10.7.2 

references to persons shall include incorporated and unincorporated persons; references to the singular include the plural and vice versa; and references to the masculine include the feminine; 

10.7.3 

references to Clauses and Schedules mean clauses of, and schedules to, this Agreement; 

10.7.4 

references in this Agreement to termination shall include termination by expiry; and 

10.7.5 

where the word “including” is used it shall be understood as meaning “including without limitation”. 

10.8 

Notices 

10.8.1 

Any notice to be given under this Agreement shall be in writing and shall be sent by first class mail or air mail, or by fax (confirmed by first class mail or air mail) to the address of the relevant Party set out at the head of this Agreement, or to the relevant fax number set out below, or such other address or fax number as that Party may from time to time notify to the other Party in accordance with this Clause 10.8. The fax numbers of the Parties are as follows: 

ValiRx FAX number:

+44 203 008 4415

ValiBio FAX number:

+32 71 47 15 20

10.8.2 

Notices sent as above shall be deemed to have been received three working days after the day of posting (in the case of inland first class mail), or seven working days after the date of posting (in the case of air mail), or on the next working day after transmission (in the case of fax messages, but only if a transmission report is generated by the sender’s fax machine recording a message from the recipient’s fax machine, confirming that the fax was sent to the number indicated above and confirming that all pages were successfully transmitted). 

10.9 

Law and jurisdiction. This Agreement shall be governed by the Laws of England and Wales. 

10.10 

Further action. Each Party agrees to execute, acknowledge and deliver such further instruments, and do all further similar acts, as may be necessary or appropriate to carry out the purposes and intent of this Agreement. 

10.11 Announcements. Save as required by law or in respect of any regulatory requirements, neither Party shall make any press or other public announcement concerning any aspect of this Agreement, without prior consent of the other Party.

10.12 

Entire agreement. This Agreement, including its Schedules, sets out the entire agreement between the Parties relating to its subject matter and supersedes all prior oral or written agreements, arrangements or understandings between them relating to such subject matter. The Parties acknowledge that they are not relying on any representation, agreement, term or condition which is not set out in this Agreement. 

10.13 

Third parties. Except for the rights of the Indemnitees as provided in clauses 7.3 and 7.4, who may in their own right enforce the provisions of that Clause, this Agreement does not create any right enforceable by any person who is not a party to it (‘Third Party’) under the Contracts (Rights of Third Parties) Act 1999, but this clause does not affect any right or remedy of a Third Party which exists or is available apart from that Act. The Parties may amend, renew, terminate or otherwise vary all or any of the provisions of this Agreement, including Clauses 7.3 and 7.4, without the consent of the Indemnitees. 

27

AGREED by the parties through their authorised signatories 

 

For and on behalf of

VALIRX PLC

  

Signed

/s/ George S. Morriss                 

Name    George S. Morris, PhD

Title      COO

Date      March 8, 2010

28

For and on behalf of 

ValiBio SA

 

Signed

/s/ Patrick J. Rousseau          

Name 

Patrick J. Rousseau.

Title 

Executive Chairman

Date 

March 8, 2010

29

Schedule 1

The Patents

							
	Reference

	Country

	Title

	Priority Date

	Application No.

	Publication No.

	Case Status

	W02005/ 019826 A1

	Worldwide

	Detection of Histone Modifications in Cell-Free Nucleosomes

	18 August 2003

	PCT/GB2004/ 003564

	W02005/ 019826 A1

	National phase

30

Schedule 2

Appointment of expert

1. 

Pursuant to Clauses 4.5 and 4.6, ValiRx may serve a notice on the Licensee (“Referral Notice”), in accordance with Clause 10.8, notifying the Licensee that it wishes to refer the dispute to an expert (the “Expert”) for his determination.

2.

The Parties shall agree the identity of a single independent, impartial expert to determine such questions.  In the absence of such agreement within 30 days of the Referral Notice, either of the Parties may request an expert be appointed by the President of The Law Society of England and Wales.

3.

60 days after the giving of a Referral Notice, both Parties shall exchange simultaneously statements of case in no more than 10,000 words, in total, and each side shall simultaneously send a copy of its statement of case to the Expert.

4.

Each Party may, within 30 days of the date of exchange of statement of case pursuant to paragraph 3 above, serve a reply to the other side’s statement of case of not more than 10,000 words.  A copy of any such reply shall be simultaneously sent to the Expert.

5.

The Expert shall make his decision on the basis of written statements and supporting documentation only and there shall be no oral hearing.  The Expert shall issue his decision in writing within 30 days of the date of service of the last reply pursuant to paragraph 4 above, or, in the absence of receipt of any replies, within 60 days of the date of exchange pursuant to paragraph 3 above.

6.

The Expert’s decision shall (in the absence of manifest error) be final and binding on the Parties.

7.

All costs in relation to the appointment of the Expert shall be borne by the Parties in such proportions as the Expert shall determine.

31

Schedule 3

Collaboration with the University of Surrey for the use of Hypergenomics in the study of prostate cancer.

Further to Clause 7.1.2 of the forgoing Agreement, a Collaboration Agreement exists between ValiRx and the UNIVERSITY OF SURREY established by Royal Charter in 1966 and having its campus in Guildford, Surrey, GU2 7XH, 

In summary this agreement gives the University of Surrey the right to use Intellectual Property incorporated in the Patent in a collaborative research project entitled “Prostate Cancer Study with HyperGenomics”. 

Specifically the collaboration is aimed at;

Preparing a hypersensitive site library of candidate diagnostic sites and then to select initial target genes of interest in PIN / prostate cancer. Following on the hypersensitive site sequences discovered are intended to be used to identify further putative sites of interest in other genes of interest using bioinformatics.

Subsequently it is intended to screen a selection of patient samples for the library of candidate sites, leading to elimination of the vast majority of candidates. The remaining candidates will form the basis of a diagnostic panel for further validation.

The University of Surrey agrees that any Resulting IPR belongs to ValiRx and ValiRx agrees to share any and all revenue generated from any Resulting IPR with the University of Surrey in accordance with the provisions of a Revenue Sharing Agreement between the University of Surrey and ValiRx. ValiRx shall licence the Resulting IPR to ValiBio under terms similar to the Agreement 

32

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]