Document:

Unassociated Document

     

    Exhibit
      10.7

     

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

     

    

    April
      5,
      2006

    

    

    
      	
              Equity
                Transfer Services, Inc.

            
	
              120
                Adelaide Street West, Suite 420

            
	
              Toronto,
                Ontario, M5H 4C3

            
	
              Attention:
                Rose Vieira 

            

    

    

    

    RE: ASTRIS
      ENERGI, INC.

    

    Ladies
      and Gentlemen:

    

     

    Reference
      is made to that certain Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      of
      even date herewith by and between Astris Energi, Inc. a corporation organized
      under the laws of the Province of Ontario, Canada (the “Company”),
      and
      the buyer set forth on Schedule I attached thereto (the “Buyer”)
      and
      that certain Share Escrow Agreement (the “Share
      Escrow Agreement”)
      of
      even date herewith among the Company, the Buyer and David Gonzalez, as escrow
      agent (the “Escrow
      Agent”).
      Pursuant to the Securities Purchase Agreement, the Company shall sell to the
      Buyer, and the Buyer shall purchase from the Company, convertible debentures
      (collectively, the “Debentures”)
      in the
      aggregate principal amount of One Million Five Hundred Thousand Dollars
      ($1,500,000), plus accrued interest, which are convertible into shares of the
      Company’s common stock, no par value (the “Common
      Stock”),
      at
      the Buyer’s discretion. The Company has also issued to the Buyer warrants to
      purchase up to 3,200,000 shares of Common Stock, at the Buyer’s discretion (the
“Warrants”).
      These
      instructions relate to the following stock or proposed stock issuances or
      transfers:

     

     

    
      	 	
              1.

            	
              Shares
                of Common Stock to be issued to the Buyer upon conversion of the
                Debentures (“Conversion
                Shares”)
                plus the shares of Common Stock to be issued to the Buyers upon conversion
                of accrued interest and liquidated damages into Common Stock (the
                “Interest
                Shares”).
                

            

    

     

     

    
      	 	
              2.

            	
              Up
                to 3,200,000 shares of Common Stock to be issued to the Buyers upon
                exercise of the Warrants (the “Warrant
                Shares”).

            

    

     

     

    
      	 	
              3.

            	
              The
                issuance and transfer of up to 34,500,000 shares of Common Stock
                (the
                “Escrow
                Shares”)
                that may be issued to the Buyer upon an event of default as set forth
                in
                the Share Escrow Agreement. 

            

    

     

     

    The
      Conversion Shares, Warrant Shares, Interest Shares and Escrow Shares are
      hereinafter collectively referred to as the “Shares”.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    This
      letter shall serve as our irrevocable authorization and direction to Equity
      Transfer Services, Inc. (the “Transfer
      Agent”)
      to
      issue the Shares to the Buyer from time to time upon delivery to the Transfer
      Agent of a properly completed and duly executed Treasury Direction (“Treasury
      Direction”) substantially in the form attached hereto as Exhibit “A”, delivered
      to the Transfer Agent by the Escrow Agent on behalf of the Company. Upon receipt
      of a Treasury Direction, the Transfer Agent shall within five (5) Trading Days
      thereafter issue and surrender to a common carrier for overnight delivery to
      the
      address as specified in the Treasury Direction, one or more certificates,
      registered in the name of the Buyer or its designees, for the number of Shares
      to which the Buyer shall be entitled as set forth in the Treasury Direction.
      For
      purposes hereof “Trading
      Day”
      shall
      mean any day on which the Nasdaq Market is open for customary
      trading.

     

     

    The
      Company hereby irrevocably appoints the Escrow Agent as a duly authorized agent
      of the Company for the purposes of authorizing the Transfer Agent to process
      issuances and transfers specifically contemplated herein.

     

     

    The
      Transfer Agent shall be entitled to rely exclusively on the Treasury Directions
      and shall have no liability for relying on any Treasury Direction. Any Treasury
      Direction shall constitute an irrevocable instruction to the Transfer Agent
      to
      process such notice or notices in accordance with the terms thereof and these
      Irrevocable Transfer Agent Instructions shall be the Transfer Agent’s good and
      sufficient authority for so doing. Such notice or notices may be transmitted
      to
      the Transfer Agent by facsimile, Federal Express overnight mail, or any other
      commercially reasonable method acceptable to the Transfer Agent in its sole
      discretion.

     

     

    The
      Company hereby confirms to the Transfer Agent that no instructions other than
      as
      contemplated herein will be given to Transfer Agent by the Company with respect
      to the matters referenced herein. The Company hereby authorizes the Transfer
      Agent to disregard any instructions in respect of the Shares received by it
      from
      any party other than the Escrow Agent, including, without limitation, the
      Company.

     

     

    These
      Irrevocable Transfer Agent Instructions shall continue in full force and effect
      until the Escrow Agent delivers a written notice to the Transfer Agent that:
      

     

     

    
      	 	
              a.

            	
              all
                of the Shares issuable pursuant to the Debentures, Warrant and Escrow
                Agreement, have been duly issued pursuant to Treasury Directions
                received
                by the Transfer Agent; or 

            

    

     

     

    
      	 	
              b.

            	
              (i)
                any Debentures not yet converted have been fully repaid and the Buyer
                no
                longer has any rights to acquire any Conversion Shares or Interest
                Shares,
                (ii) any Warrants not yet exercised have expired and the Buyer no
                longer
                has any rights to acquire any Warrant Shares, and (iii) (1) all the
                conditions to the termination of the escrow period under the Share
                Escrow
                Agreement have been met, or (2) all the Escrow Shares have been issued
                pursuant to a Treasury Direction.

            

    

     

     

    The
      Transfer Agent shall be fully protected in acting and relying upon any written
      notice, direction, instruction, order, certificate, confirmation, request,
      waiver, consent, receipt, statutory declaration or other paper or document
      (collectively referred to as “Documents”)
      furnished to it and signed by any person required to or entitled to execute
      and
      deliver to the Transfer Agent any such Documents in connection herewith, not
      only as to its due execution and the validity and effectiveness of its
      provisions, but also as to the truth and accuracy of any information therein
      contained, which they in good faith believe to be genuine. The Transfer Agent
      will not have any responsibility for the genuineness or validity of any
      security, document or other thing deposited with it.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    In
      the
      event that counsel to the Company fails or refuses to render an opinion
      regarding whether the Shares may be issued without a Rule 144 legend, then
      the
      Company irrevocably and expressly authorizes counsel to the Buyer to render
      such
      opinion. The Transfer Agent shall accept and be entitled to rely on such opinion
      for the purposes of issuing the Shares.

     

     

    The
      Company hereby agrees to defend and indemnify and hold harmless the Transfer
      Agent and its affiliates, and their respective directors, officers, employees,
      partners, agents and shareholders (each such person being herein referred to
      as
      an “Indemnified
      Person”),
      to
      the full extent lawful, from and against all losses, claims, damages,
      liabilities, obligations, actions, suits or proceedings at law or in equity,
      and
      any other expenses, fees, or charges of any character or nature which an
      Indemnified Person may incur or with which it may be threatened by reason of
      its
      complying with these Irrevocable Transfer Agent Instructions. In connection
      therewith, the Company agrees to indemnify the Indemnified Persons against
      any
      and all expenses, including fees of legal counsel, and costs of defending any
      action, suit, proceeding or resisting any claim. The Company acknowledges and
      agrees that Transfer Agent holds the right and benefit of the indemnity
      provisions hereunder in trust for and on behalf of the Indemnified
      Persons.

     

     

    [REMAINDER
      OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     

    DATED
      this
      5th
      day of
      April, 2006

     

    
      	 	
              Astris
                Energi, Inc.

            
	 	 
	 	
              By:
                /s/
                Anthony Durkacz

            
	 	
              Name: Anthony
                Durkacz

            
	 	
              Title: Chief
                Financial Officer

            
	 	 
	 	 
	 	
              /s/
                David Gonzalez

            
	 	
              David
                Gonzalez, Esq. as Escrow Agent

            
	 	 
	 	 
	 	
              EQUITY
                TRANSFER SERVICES, INC.

               

              By:
                /s/
                Richard M. Barnowski 

              Name:
                Richard M. Barnowski

              Title: President
                & Secretary     

            

    

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Exhibit
      “A”

    

    TREASURY
      DIRECTION

    

    

    TO: EQUITY
      TRANSFER SERVICES INC.

    120
      Adelaide Street West, Suite 420

    Toronto,
      Ontario M5H 4C3

    

    Reference
      is made to the Irrevocable Transfer Agent Instructions dated April ●, 2006
      issued by Astris Energi, Inc. (the “Company”).
      All
      capitalized terms not otherwise defined herein shall have the meanings ascribed
      thereto in the Irrevocable Transfer Agent Instructions. 

    

    The
      Escrow Agent hereby directs you, as the registrar and transfer agent for the
      shares of Common Stock of the Company (the “Common
      Shares”),
      as
      follows: 

    

    
      	 	
              1.

            	
              to
                issue, countersign and register in accordance with the registration
                instructions set out in below definitive share certificates (“Certificates”)
                representing an aggregate of ● Common
                Shares,

            

    

    

    NAME  ADDRESS   NO.
      OF COMMON SHARES

    

    

    

    
      	 	
              2.

            	
              [to
                cause such Certificates to be endorsed with the following
                legend:

            

    

    

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY
      ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT.”]

    

    3. and
      to
      deliver the Certificates to the attention of the undersigned at [address].

    

    The
      undersigned hereby certifies that these Common Shares have been validly allotted
      to the parties named, that the Company has received full consideration therefor,
      and that they are, therefore, fully paid and non-assessable.

    

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    This
      Treasury Direction is irrevocable and shall constitute your good and sufficient
      authority for so acting.

    

    DATED
      this __
      day of ______, 20__

     

     

     

    David
      Gonzalez, Esq, as Escrow Agent

     

    

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

     

    SCHEDULE
      I

     

    BUYER
      

     

    
      	
              Name

            	
              Signature

            	
              Address/Facsimile
                

              Number
                of Buyers

            
	 	 	 
	
              Cornell
                Capital Partners, LP

            	
              By: Yorkville
                Advisors, LLC

            	
              101
                Hudson Street - Suite 3700

            
	 	
              Its: General
                Partner

            	
              Jersey
                City, NJ 07303

            
	 	 	
              Facsimile:
                 (201)
                985-8266

            
	 	 	 
	 	
              By:     

            	 
	 	
              Name: Mark
                Angelo

            	 
	 	
              Its: Portfolio
                ManagerUnassociated Document

    12/15/05

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

    

    

    

     EXCLUSIVE
      LICENSE AGREEMENT

     

    
      for
        SKI’s
        technology

       

      “SK1074
        WT-1”

      
        (S#10829)

      

    

    

    

    

    TABLE
      OF
      CONTENTS

    

    PREAMBLE

    ARTICLES:

    
      
        	 	
                I

              	
                DEFINITIONS

              
	 	
                II

              	
                GRANT

              
	 	
                III

              	
                DUE
                  DILIGENCE

              
	 	
                IV

              	
                PAYMENTS

              
	 	
                V

              	
                REPORTS
                  AND RECORDS

              
	 	
                VI

              	
                PATENT
                  PROSECUTION

              
	 	
                VII

              	
                INFRINGEMENT

              
	 	
                VIII

              	
                PRODUCT
                  LIABILITY

              
	 	
                IX

              	
                EXPORT
                  CONTROLS

              
	 	
                X

              	
                NON-USE
                  OF NAMES

              
	 	
                XI

              	
                ASSIGNMENTS

              
	 	
                XII

              	
                TERMINATION

              
	 	
                XIII

              	
                PAYMENTS,
                  NOTICES AND OTHER COMMUNICATIONS

              
	 	
                XIV

              	
                MISCELLANEOUS
                  PROVISIONS

              
	 	
                XV

              	
                CONFIDENTIALITY

              
	 	 	 
	 	
                Exhibit
                  A

              	
                PATENT
                  RIGHTS

              

      

    

    
       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    This
      Agreement is effective as of December 15, 2005, (the “Effective Date”), and is
      by and between Sloan-Kettering Institute for Cancer Research
      (hereinafter referred to as “SKI”), a New York membership corporation with
      principal offices at 1275 York Avenue, New York, New York 10021, and
Innovive Pharmaceuticals, a corporation with principal offices
      located at 555 Madison Avenue, New York, New York 10022
      (“LICENSEE”).

    

    WITNESSETH

    

    WHEREAS,
      SKI is the owner of certain Patent Rights (as later defined herein) and has
      the
      right to grant licenses under said Patent Rights; and

    

    WHEREAS,
      SKI desires to have the Patent Rights utilized in the public interest and is
      willing to grant a license to its interest thereunder; and

    

    WHEREAS,
      LICENSEE seeks to commercially develop the Patent Rights through a thorough,
      vigorous and diligent program of exploiting the Patent Rights whereby public
      utilization shall result therefrom; and

    

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

    

    

    ARTICLE
      I
      - DEFINITIONS

    

    For
      the
      purpose of this Agreement, the following words and phrases shall have the
      following meanings:

     

    
      1.1 “FDA”
        shall mean the United States Food and Drug Administration or any successor
        agency.

    

    
       

      1.2 “Field
        of Use” shall mean the use of WT-1 polynucleotides and peptides, and mutants and
        derivatives thereof, and peptides, antibodies/tetramers and vaccines developed
        therefrom, for research and development and to treat, diagnose and prevent
        cancers and other diseases, disorders or conditions. The Field of Use shall
        exclude the use of bcr-abl oncogene polynucleotides and peptides, and mutants
        and derivatives thereof, and peptides, antibodies/tetramers and vaccines
        developed therefrom, for research and development and to treat, diagnose
        and
        prevent cancers and other diseases, disorders or conditions.

       

      1.3 A
        “Licensed Process” shall mean any process which is covered in whole or in part
        by a Valid Claim contained in the Patent Rights in any country in which such
        process is practiced.

       

       

      
        
          
          

        

        
          2/23

          
            

          

        

        
          
          

        

      

      1.4 A
        “Licensed Product” shall mean any product or part thereof made, leased, used or
        sold by or on behalf of LICENSEE which:

    

    

    
      	 	
              (a)

            	
              is
                covered in whole or in part by a Valid Claim contained in the Patent
                Rights in the country in which any product or part thereof is made,
                leased, used or sold or into which it is imported;
                or

            

    

    
      	 	
              (b)

            	
              is
                manufactured by using a Licensed
                Process.

            

    

     

    1.5 “LICENSEE”
      shall include Affiliates, that is, any person, firm, corporation or other entity
      controlling, controlled by, or under common control with a party hereto. The
      term “control” wherever used throughout this Agreement shall mean ownership,
      directly or indirectly, of more than 20% of the equity capital. With regard
      to
      SKI, “Affiliate” shall mean the Memorial Sloan-Kettering Cancer Center and the
      Memorial Hospital for Cancer and Allied Diseases. 

     

    1.6 “Net
      Sales” shall mean LICENSEE’s and its sublicensees’ billings for sales of
      Licensed Products or Licensed Processes produced hereunder less the sum of
      the
      following:

     

    
      
        
          	
                	
                  (a)

                	
                  
                    Discounts
                      allowed in amounts customary in the trade, provided such discounts
                      do not
                      relate to unlicensed products or
                      services;

                  

                

 

        
          	 	
                  (b)

                	
                  
                    Sales,
                      tariff duties and/or use taxes directly imposed and with reference
                      to
                      particular sales;

                  

                

        

      

      
        	 	
                (c)

              	
                Outbound
                  transportation prepaid or allowed and transportation
                  insurance;

              

      

    

    
      	 	
              (d)

            	
              Packaging
                and freight charges;

            

    

    
      	 	
              (e)

            	
              Amounts
                allowed or credited on rejections or returns;
                and

            

    

    
      	 	
              (f)

            	
              Bad
                debts and uncollectible receivables provided that, in any calendar
                year,
                such deduction will not exceed [*] percent ([*]%) of the total billings
                for sales of Licensed Products and Licensed Processes sold in that
                year.

            

    

     

    
      No
        deductions shall be made for commissions paid to individuals whether they
        be
        with independent sales agencies or regularly employed by LICENSEE and on
        its
        payroll, or for cost of collections. Licensed Products shall be considered
        “sold” when billed or invoiced. In the case of a sale of a Licensed Product or
        Licensed Process between or among LICENSEE and any of its Affiliates or
        sublicensees (a “transferee”) solely for further sale by such transferee, Net
        Sales shall be based on the further sale of such Licensed Product or Licensed
        Process by such transferee.

    

     

    
      1.7 “Non-royalty
        Sublicense Income” shall mean income received in consideration for a sublicense
        of the Patent Rights other than royalties paid with respect to Net Sales
        of
        Licensed Products and Licensed Processes, including up-front license fees,
        milestones, and other consideration; provided, however that Non-royalty
        Sublicense Income shall not include payments received by LICENSEE in
        consideration for actually incurred and provable research and development
        costs
        or for an equity interest in or extension of credit to
        LICENSEE.

    

     

    1.8 “Patent
      Rights” shall mean all of the following SKI intellectual property:

     

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

    
      
        
        

      

      
        3/23

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              The
                United States and foreign patents and patent applications listed
                in
                Exhibit A;

            

    

    
      	 	
              (b)

            	
              United
                States and foreign patents issued from the applications listed in
                Exhibit
                A, and from divisionals and continuations of these
                applications;

            

    

    
      	 	
              (c)

            	
              claims
                of U.S. and foreign continuation-in-part applications, and of the
                resulting patents, which are directed to WT-1 specifically described
                in
                the U.S. and foreign patent applications listed in Exhibit
                A;

            

    

    
      	 	
              (d)

            	
              any
                renewals, reissues, re-examinations, substitutions or extensions
                of
                patents described in (a), (b), or (c),
                above.

            

    

     

    1.9 “Royalty
      Year” shall mean each twelve month period commencing January 1 and ending
      December 31 during the term of this Agreement. For the first year of this
      Agreement, the Royalty Year shall be the period of time between the signing
      of
      the Agreement and December 31.

     

    
      1.10 A
        “Valid Claim” shall mean a pending or issued and unexpired claim contained in
        the Patent Rights, so long as such claim shall not have been (i) finally
        rejected by the relevant patent office (if a pending claim) and such rejection
        can no longer be subject to proceedings of a court or other authority of
        competent jurisdiction, (ii) withdrawn, cancelled, disclaimed or irrevocably
        abandoned, or (iii) held to be invalid or unenforceable in an unappealable
        or
        unappealed decision of a court or other authority of competent
        jurisdiction.

    

    

    

    ARTICLE
      II - GRANT

    

    2.1 SKI
      hereby grants to LICENSEE an exclusive worldwide right and license under the
      Patent Rights in the Field of Use, including the right to sublicense, to make,
      have made, use, have used, lease, sell, have sold, offer to sell, import, and
      have imported Licensed Products and to use, practice or have practiced Licensed
      Processes until the Patent Rights expire, unless this Agreement is terminated
      before that time according to the terms hereof, and subject to the rights
      reserved or observed in Sections 2.2 and 7.6 below.

    

    2.2 Notwithstanding
      any other provisions of this Agreement, it is agreed that SKI and its Affiliates
      shall retain the right to practice the licensed Patent Rights for its own
      academic, non-commercial teaching, research, and patient care activities.
      All rights reserved to the United States Government and others under 35 U.S.C.
      §200-212, as amended, shall remain and shall in no way be affected by this
      Agreement. Pursuant to the Public Laws 96-517, 97-256 and 98-620, codified
      at 35
      U.S.C. §200-212, the government may impose certain requirements regarding such
      intellectual property, including but not limited to the requirement that
      products resulting from such intellectual property sold in the United States
      must be substantially manufactured in the United States.

     

    2.3 LICENSEE
      hereby agrees that every sublicensing agreement to which it shall be party
      and
      which shall relate to the rights, privileges and license granted hereunder
      shall
      contain a statement describing the date upon which LICENSEE’S exclusive rights,
      privileges and license hereunder shall terminate.

    

    
      
        
        

      

      
        4/23

        
          

        

      

      
        
        

      

    

    2.4 LICENSEE
      agrees that any sublicenses granted by it shall provide that the obligations
      to
      SKI of Article III, Sections 3.1 and 3.2, V, VII (if rights or obligations
      under
      this Article are given or delegated under the sublicense), VIII, IX, X, XI,
      XII,
      and XIV of this Agreement shall be binding upon the sublicensee as if it were
      a
      party to this Agreement. LICENSEE further agrees to attach copies of these
      Articles to any sublicense agreements. Notwithstanding anything to the contrary
      herein, no sublicensee shall be bound by the obligations of 3.2 if said
      sublicensee is not engaged in the research and development of a Licensed
      Product. For illustration purposes only, if a sublicensee is engaged only in
      the
      manufacture of a Licensed Product, said sublicensee shall be not be obligated
      to
      submit the research and development plan mandated by Section 3.2. 

    

    2.5 The
      license granted hereunder shall not be construed to confer any rights upon
      LICENSEE by implication, estoppel or otherwise as to any technology not included
      in the Patent Rights.

    

    

    ARTICLE
      III - DUE DILIGENCE

    

    3.1 LICENSEE
      and its sublicensees shall use reasonable commercial efforts to bring Licensed
      Products or Licensed Processes to market through a thorough, vigorous and
      diligent program for exploitation of the Patent Rights as described in section
      4.1 and as provided in the Plan (as defined below) attached hereto in exhibit
      B
      and to continue active, diligent marketing efforts for one or more Licensed
      Products or Licensed Processes throughout the life of this
      Agreement.

    

    3.2 In
      addition, LICENSEE shall adhere to the following milestones:

     

    
      	
            	
              (a)

            	
              
                
                  
                    
                      LICENSEE
                        has delivered to SKI prior to the execution of this Agreement,
                        its
                        detailed business, research and development plan (the “Plan”) including,
                        but not limited to, relevant schedules of capital investments
                        needed to
                        implement the plan, financial, equipment, facility plans,
                        number and kind
                        of personnel and time planned for each phase of development
                        of the Patents
                        Rights for a [*] year period, to the extent formed by LICENSEE.
                        Similar
                        reports shall be provided to SKI annually to relay update
                        and status
                        information on LICENSEE’s business, research and development progress,
                        including projections of activity anticipated for the next
                        reporting year.
                        SKI shall maintain the Plan and reports in confidence in
                        accordance with
                        Article XV of this
                        Agreement.

                    

                  

                

              

            

    

    

    
      	 	
              (b)

            	
              LICENSEE
                shall be responsible for diligently and promptly taking all commercially
                reasonable steps to secure all required and/or necessary governmental
                approvals to sell, exploit, or market any and all Licensed Products.
                LICENSEE shall advise SKI, through annual reports described in Section
                3.2(a) above of its program of development for obtaining said
                approvals.

            

    

    

    
      	 	
              (c)

            	
              LICENSEE
                shall be responsible for diligently and promptly taking all commercially
                reasonable steps to: 

            

    

     

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

    
      
        
        

      

      
        5/23

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              Enroll
                the first patient in a Phase II clinical trial for a Licensed Product
                by
                [*];

            

    

    
      	 	
              (ii)

            	
              Enroll
                the first patient in a Pivotal clinical trial for a Licensed Product
                by
                [*];

            

    

    
      	 	
              (iii)
                

            	
              Obtain
                marketing approval for a Licensed Product within [*] of the Effective
                Date.

            

    

    

    These
      milestones are based on the assumption that the last patient of the Phase I
      clinical trial for the first Licensed Product will be enrolled before the first
      anniversary of this Agreement. If the last patient enrolled in that Phase I
      clinical trial is delayed by a certain period of time, then each of the above
      dates for achieving the above milestones shall be extended by the same period
      of
      time. Such extensions of time also shall be incorporated into the Plan as
      provided under Section 3.2(a). In the event LICENSEE fails to reach any of
      the
      above milestones by the dates listed above (as may be extended by the previous
      sentence), and such failure is due to circumstances that LICENSEE could not
      have
      reasonably avoided, if LICENSEE has taken all commercially reasonable steps
      to
      meet such milestone, SKI and LICENSEE shall enter into good faith discussions
      and agree upon a reasonable extension for such milestone and any remaining
      milestones.

    

    When
      and if any of these milestones are not met by the dates set forth above (or
      any
      extensions of such dates as may be made pursuant to the terms of this Section
      3.2(c)), annual diligence payments are initiated starting at [*] U.S. dollars
      (U.S. $[*]), payable on the first anniversary of the date of the missed
      milestone, and growing annually by [*] U.S. dollars (U.S. $[*]) per year, with
      each subsequent payment due on each subsequent anniversary date, unless the
      milestone has been achieved before that subsequent anniversary date. Such
      payment shall not be considered as a milestone payment; consequently the annual
      maintenance fee shall be due that year as well. If any such annual diligence
      payment is due three (3) years in a row, SKI shall be entitled to terminate
      this
      agreement pursuant to article 12.1.2. 

    

    3.3
       If LICENSEE fails to perform in accordance with Sections 3.1 above,
      or in accordance with Section 3.2, such failure shall be grounds for SKI to
      terminate this Agreement pursuant to Section 12.1.2 below.

     

    3.4 LICENSEE
      shall have a Right to Reference Clinical IP, with SKI’s consent, which consent
      shall not be unreasonably withheld. For purposes of this Section 3.4, a “Right
      to Reference” shall mean the right to reference, cross-reference, have access to
      copies of, incorporate and use Clinical IP in any regulatory applications or
      filings, or for any research or development purpose in the Field of Use;
“Clinical IP” shall mean:

     

    
      	 	
              (a)

            	
              all
                preclinical protocols, studies, data, results, study-related forms,
                materials and reports (biocompatibility studies, animal studies),
                and
                safety studies (if any) resulting from any preclinical of any Licensed
                Product in the Field of Use that was performed by or under the direction
                of Dr. Scheinberg prior to the Effective Date and which have been
                used to
                support SKI filing of Patent Rights; and

            

    

     

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

    
      
        
        

      

      
        6/23

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              the
                IND and any unfiled applications, regarding any Licensed Product
                in the
                Field of Use that will be prepared or submitted by or under the direction
                of SKI within [*] of the Effective Date; and “IND” shall mean an
                Investigational New Drug Application filed with FDA. SKI shall provide
                LICENSEE with such waivers, cross reference letters, and/or other
                reasonable documentation as may be necessary or useful for the full
                exercise of any Right to Reference Clinical IP granted pursuant to
                this
                Section 3.4.

            

    

    

    3.5  LICENSEE
      shall give good faith consideration to offering SKI an opportunity to
      participate in clinical trials of Licensed Products that are sponsored by
      LICENSEE; provided, however, that SKI shall not be obligated to participate
      in
      such clinical trials. 

    

    3.6  Each
      party shall fulfill its contractual duty of good faith and fair dealing under
      this Agreement, as required by law.

    

    

    ARTICLE
      IV - PAYMENTS

    

    4.1 For
      the rights, privileges and licenses granted hereunder, LICENSEE shall pay to
      SKI, in the manner hereinafter provided, until the end of the last to expire
      patent of the Patent Rights or until this Agreement shall be terminated as
      hereinafter provided, whichever occurs first:

    

    
      	 	
              (a)

            	
              A
                license issue fee of two hundred thousand U.S. dollars (U.S. $200,000),
                payable immediately upon the signing of this Agreement by both
                parties.

            

    

    

    
      	 	
              (b)

            	
              A
                royalty of [*] percent ([*]%) on the Net Sales by LICENSEE or any
                sublicensee of the Licensed Products or Licensed
                Processes.

            

    

    

    
      	 	
              (c)

            	
              A
                portion of Non-royalty Sublicense Income as
                follows:

            

    

    

    
      	 	
              (i)

            	
              [*]
                percent ([*]%) of Non-royalty Sublicense Income, if such sublicense
                is
                executed between the Effective Date of the Agreement and before the
                enrollment of the first patient into a Phase II clinical trial for
                a
                Licensed Product.

            

    

    
      	 	
              (ii)

            	
              [*]
                percent ([*]%) of Non-royalty Sublicense Income, if such sublicense
                is
                executed between the enrollment of the first patient into a Phase
                II
                clinical trial for a Licensed Product and before the enrollment of
                the
                first patient in a pivotal clinical
                trial.

            

    

    
      	 	
              (iii)

            	
              [*]
                percent ([*]%) of Non-Royalty Sublicense Income, if such sublicense
                is
                executed between the enrollment of the first patient in a pivotal
                clinical
                trial for a Licensed Product and FDA marketing approval for a
                Licensed Product in the U.S.

            

    

    
      	 	
              (iv)

            	
              [*]
                percent ([*]%) of Non-royalty Sublicense Income, if such sublicense
                is
                executed after FDA marketing approval for a Licensed Product in the
                U.S.
                For the purpose of this section 4.1.(c)(iv), Non-Royalty Sublicensee
                Income includes payments received by LICENSEE in consideration for
                past
                research and development costs. 

            

    

     

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

    
      
        
        

      

      
        7/23

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              Milestone
                payments, whether such milestone is reached by Licensee or sublicensee,
                as
                follows:

            

    

    

    
      	 	 	
              (i)

            	
              [*]
                U.S. dollars (U.S. $[*]) upon enrollment of the first patient in
                a Phase
                II clinical trial.

            

    

    
      
        	 	 	
                (ii)

              	
                [*]
                  U.S. dollars (U.S. $[*]) upon enrollment of the first patient in
                  a Phase
                  III clinical trial.

              

      

      
        	 	 	
                (iii)

              	
                [*]
                  U.S. dollars (U.S. $[*]) upon FDA's acceptance of a New Drug Application
                  (NDA) for an hematologic disorder, including myelodysplasia.

              

  

    

    
      	 	 	
              (iv)

            	
              [*]
                U.S. dollars (U.S. $[*]) upon obtaining FDA approval for marketing
                a
                Licensed Product in the U.S. for an hematologic disorder, including
                myelodysplasia. 

            

    

    
    

    
      	 	 	
              (v)

            	
              [*]
                U.S. dollars (U.S. $[*]) upon  regulatory approval for marketing a
                Licensed Product in Europe, for each of the first three indications
                that
                is either an hematologic disorder, including myelodysplasia, or
                a major indication in human
                cancer.

            

 

    
      	 	 	
              (vi)

            	
              
                [*]
                  U.S. dollars (U.S. $[*]) upon  regulatory approval for marketing a
                  Licensed Product in Japan, for each of the first three indications
                  that is
                  either an hematologic disorder, including myelodysplasia, or a
                  major
                  indication in human cancer.

              

            

    

    
      	 	 	
              (vii)

            	
              [*]
                U.S. dollars (U.S. $[*]) upon  regulatory approval for marketing a
                Licensed Product in Australia, for each of the first three indications
                that is either an hematologic disorder, including myelodysplasia,
                or a
                major indication in human
                cancer.

            

 

    
      	 	 	
              (viii)

            	
              [*]
                U.S. dollars (U.S. $[*]) upon the FDA’s acceptance of a New Drug
                Application (NDA) for each of the first three major indications in
                human
                cancer.

            

    

    

    
      	 	
              For
                purposes of this Section 4.1, a major indication in human cancer
                shall
                mean an indication presenting similar commercial opportunities as
                breast
                cancer, ovarian cancer, lung cancer, or gastric cancer. Once LICENSEE
                has
                made any particular milestone payment under Section 4.1(d)(i)-(iv),
                LICENSEE will not be obligated to make any payment under Section
                4.1((d)(i)-(iv) with respect to the re-occurrence of
                the
                same milestone. Once LICENSEE has made any particular milestone payment
                under Section 4.1(d)(v)-(viii), LICENSEE will not be obligated to
                make any payment under Section 4.1(d)(v)-(viii) with respect to the
                re-occurrence of the same milestone for a different Licensed Product
                for
                the same indication. For example, if LICENSEE develops two Licensed
                Products that receive FDA approval for a hematologic disorder, LICENSEE
                would owe SKI only one $[*] milestone payment, which would be due
                upon FDA
                approval of the hematologic indication for the first of such Licensed
                Products. 

            

    

    

    
      	 	
              For
                the avoidance of doubt, in the event LICENSEE achieves any of the
                foregoing milestones through a sublicensee, and the sublicense agreement
                with such sublicensee provides for a milestone payment for such milestone
                event, LICENSEE shall pay SKI the milestone payment as payable hereinabove
                and the amount payable by sublicensee for such milestone minus the
                milestone payment as hereinabove due, shall be included in Non-royalty
                Sublicense Income.

            

    

     

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

    
      
        
        

      

      
        8/23

        
          

        

      

      
        
        

      

    

    (e) A
      non-creditable license maintenance
      fee of one hundred thousand U.S. dollars ($100,000) payable starting
      on the first anniversary of the License Agreement until the first commercial
      sale of a Licensed Product or Licensed Process. Such maintenance fee shall
      not
      be payable in years when a milestone is paid. For clarification, payment due
      under Section 3.2(c) shall not be considered as milestone payments.

    

    (f) Annual
      minimum royalty payments:

    

    (i) If
      a Licensed Product is approved and
      being sold for a solid tumor indication:

    

    
      	 	 	 	
              (x)

            	
              [*]
                U.S. Dollars (U.S. $[*]) on the first anniversary of the Licensed
                Product
                launch.

            

    

     

    
      	 	 	 	
              (y)

            	
              [*]
                U.S. dollars (U.S. $[*]) on the second anniversary of the Licensed
                Product
                launch.

            

    

    

    
      	 	 	 	
              (z)

            	
              [*]
                U.S. dollars (U.S. $[*]) on the third anniversary of the Licensed
                Product
                launch and annually thereafter.

            

    

    

    (ii) If
      a Licensed Product is approved and
      being sold for a hematological indication:

    

    
      	 	 	 	
              (x)

            	
              [*]
                U.S. Dollars (U.S. $[*]) on the first anniversary of the Licensed
                Product
                launch.

            

    

     

    
      	 	 	 	
              (y)

            	
              [*]
                U.S. dollars (U.S. $[*]) on the second anniversary of the Licensed
                Product
                launch.

            

    

     

    
      
        	 	 	 	
                (z)

              	
                [*]
                  U.S. dollars (U.S. $[*] on the third anniversary of the Licensed
                  Product
                  launch and annually
                  thereafter.

              

      

For
      clarification, if Licensed Product is being sold both for a hematologic
      indication and for a solid tumor indication, the annual
      minimum payment due shall be the greater of the minimum
      annual royalty payments due under either (but not both of) subsection (i) or
      subsection (ii) above.

    The
      minimum royalty payments shall be credited against the earned royalty on Net
      Sales payments required in Section 4.1(b) above for the same twelve (12) month
      period.

     

     

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

    
      
        
        

      

      
        9/23

        
          

        

      

      
        
        

      

    

    (g) Patent
      expenses according to the terms of Article VI, to be paid within thirty (30)
      days after the receipt of an invoice.

     

    4.2 If
      LICENSEE receives from sublicensees anything of value in lieu of cash payments
      based upon payment obligations of any sublicense under this Agreement, LICENSEE
      shall pay SKI royalty or other payments as required by Clause 4.1, based on
      the
      fair market value of such payment, unless SKI waives in writing such payment
      obligation. 

    

    4.3 No
      multiple royalties shall be payable because any Licensed Product, or its
      manufacture, use, lease, sale or importation; are or shall be covered by more
      than one of the Patent Rights licensed under this Agreement. 

    

    4.4 Payments
      shall be paid in United States dollars in New York, NY, or at such other place
      as SKI may reasonably designate consistent with the laws and regulations
      controlling in any foreign country, but not in any other currency. If any
      currency conversion shall be required in connection with the payment of
      royalties hereunder, such conversion shall be made by using the exchange rate
      prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the
      calendar quarterly reporting period to which such royalty payments relate.
      Any
      cost associated with such conversion shall be borne by LICENSEE.

    

    4.5 Interest

    

    
      	 	
              (a)

            	
              LICENSEE
                shall pay to SKI interest on any amounts not paid when due. Such
                interest
                will accrue from the fifteenth (15th) day after the payment was
                due at a rate [*] percent ([*]%) above the daily prime interest rate,
                as
                determined by The Chase Manhattan Bank (N.A.) or its successor entity,
                on
                each day the payment is delinquent, and the interest payment will
                be due
                and payable on the first day of each month after interest begins
                to
                accrue, until full payment of all amounts due SKI is
                made.

            

    

     

    
      	
            	
              (b)

            	
              
                SKI’s
                  rights to receive such interest payments shall be in addition to
                  any other
                  rights and remedies available to
                  SKI.

              

            

    

     

    
      	 	
              (c)
                

            	
              If
                the interest rate required in this Subsection exceeds the legal rate
                in a
                jurisdiction where a claim for such interest is being asserted, the
                required interest rate shall be reduced, for such claim only, to
                the
                maximum interest rate allowable in the
                jurisdiction.

            

    

    

     

    ARTICLE
      V
      - REPORTS AND RECORDS

     

    5.1 LICENSEE
      shall keep, and shall require its Affiliates and sublicensees to keep, full,
      true and accurate books of account containing all particulars that may be
      necessary for the purpose of showing the amounts payable to SKI hereunder.
      Said
      books and records shall be maintained for a period of no less than five (5)
      years following the period to which they pertain. For the term of this
      Agreement, upon reasonable written notice, LICENSEE shall allow SKI or its
      agents to inspect such books and records for the purpose of verifying LICENSEE’s
      royalty statement or compliance in other respects with this Agreement. Such
      inspections shall be during normal working hours of LICENSEE, at a time and
      date
      mutually agreed upon by the parties. There shall be no more than one inspection
      per calendar year. Should such inspection lead to the discovery of a discrepancy
      greater than [*] percent ([*]%) in reporting to SKI’s detriment, for any twelve
      (12) month period, LICENSEE agrees to pay the full cost of such inspection
      plus
      interest as stipulated in Section 4.5.

     

     

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

    
      
        
        

      

      
        10/23

        
          

        

      

      
        
        

      

    

    5.2 LICENSEE,
      within thirty (30) days after March 31, June 30, September 30 and December
      31 of
      each year, shall deliver to SKI true and accurate reports, giving such
      particulars of the business conducted by LICENSEE and its sublicensees during
      the preceding three-month period under this Agreement as shall be pertinent
      to a
      royalty accounting hereunder. These shall include at least the following, to
      be
      itemized per Licensed Product and Licensed Process:

    

    
      	 	
              (a)

            	
              Number
                of Licensed Products and Licensed Processes commercially used,
                manufactured and sold, rented or
                leased.

            

    

    
      	 	
              (b)

            	
              Total
                billings for Licensed Products and Licensed Processes commercially
                used,
                sold, rented or leased including detailed information like product
                names,
                country where it is manufactured, country where sold, average selling
                price, units sold, exchange rates
                used.

            

    

    
      	 	
              (c)

            	
              Deductions
                applicable as provided in Paragraph
                1.6.

            

    

    
      	 	
              (d)

            	
              Total
                royalties due.

            

    

    
      	 	
              (e)

            	
              Names
                and addresses of all sublicensees of
                LICENSEE.

            

    

    
    

    
    

    
      	
            	
              (f)

            	
              Total
                royalty income from all revenues subject to sublicensees’
                royalties
                and such royalty income with respect to each sublicensee.

            

    

    
      	 	
              (g)

            	
              Total
                sublicensing fee income and detailed sublicensing fee income for
                each
                sublicense and a reasonably detailed calculation of any other amounts
                due
                hereunder, including in respect of sublicensing revenue making reference
                to the applicable sections of this
                Agreement.

            

    

    

    Any
      such
      reports furnished by LICENSEE to SKI under this Section 5.2 shall be treated
      as
      Confidential Information pursuant to Article XV of this Agreement.

    

    5.3 With
      each such report submitted, LICENSEE shall pay to SKI the royalties due and
      payable under this Agreement. If no royalties shall be due, LICENSEE shall
      so
      report. 

    

    5.4  Milestone
      payments shall be reported and paid within thirty (30) days after the
      achievement of a milestone event.

    

    5.5  LICENSEE
      agrees to forward to SKI a copy of any and all fully executed sublicense
      agreements, and further agrees to timely forward to SKI a copy of such reports
      received by LICENSEE from its sublicensees during the preceding Royalty Year
      that are relevant to the calculation of sublicensing fee income and royalties
      on
      Net Sales. Any such agreements and reports furnished by LICENSEE to SKI under
      this Section 5.5 shall be treated as Confidential Information pursuant to
      Article XV of this Agreement.  

     

    
      
        
        

      

      
        11/23

        
          

        

      

      
        
        

      

    

    5.6  SKI
      shall ensure that any financial or other information obtained by SKI or its
      agents pursuant to this Article 5 shall be maintained in confidence in
      accordance with Article XV of this Agreement. 

    

    

    ARTICLE
      VI - PATENT PROSECUTION

    

    6.1 Subject
      to Section 6.3,
      LICENSEE shall be responsible for and pay all past and future costs and expenses
      incurred by SKI for the preparation, filing, prosecution, issuance, and
      maintenance of the Patent Rights.

    

    6.2 SKI
      shall diligently prosecute
      and maintain the Patent Rights in the United States and in such countries as
      are
      determined by SKI and agreed to by LICENSEE, using counsel of its choice.

    

    LICENSEE
      shall have the opportunity to advise and cooperate with SKI in the selection
      of
      patent counsel. LICENSEE may request of SKI that responsibility for filing
      and
      prosecution of PATENT RIGHTS be transferred by SKI to counsel selected by
      LICENSEE, and SKI will grant such request, provided such counsel shall be
      reasonably acceptable to SKI.

     

    6.3 If,
      at any time during the Term of this Agreement, LICENSEE does not wish to
      continue prosecution or maintenance of any patent application or patent
      contained in Patent Rights, it shall so advise SKI in writing and Exhibit A
      hereto shall be amended accordingly. LICENSEE shall have no further license
      to
      or under such patent application or patent, and therefore LICENSEE shall have
      no
      further royalty obligation to SKI, or obligation to pay patent expenses under
      Section 6.1, in respect of such patent or patent application.
 

    

    6.4 Copies
      of Documents. With respect to any Patent Right, SKI shall, and shall instruct
      the patent counsel prosecuting such Patent Right to, promptly copy LICENSEE
      on
      all patent prosecution documents, submissions and correspondence, to keep
      LICENSEE fully informed of the progress of all patent applications and patents
      included in the Patent Rights, and to give LICENSEE reasonable opportunity
      prior
      to making such submission to comment on the type and scope of claims, the nature
      of supporting disclosures, and other material matters. LICENSEE’s advice and
      suggestions shall be reasonably considered by SKI and its patent counsel in
      connection with such applications. LICENSEE agrees to keep this documentation
      confidential. 

    

    ARTICLE
      VII - INFRINGEMENT

    

    7.1 LICENSEE
      as the exclusive commercial user of the Patent Rights shall assume primary
      responsibility for using best commercially reasonable efforts to enforce the
      Patent Rights within relevant commercial markets in the Field of Use. In
      exercising these responsibilities, LICENSEE shall promptly contact alleged
      third
      party infringers in such markets and take all reasonable steps to persuade
      such
      third parties to desist from infringing the Patent Rights. LICENSEE shall have
      the first right to initiate and prosecute an infringement action, if necessary,
      or to defend a challenge to the validity of the Patent Rights. LICENSEE shall
      notify SKI of each instance of alleged infringement and shall keep SKI informed
      of all stages of Patent Rights enforcement. LICENSEE may use the name of SKI
      and
      join SKI as party plaintiff if, in the reasonable opinion of LICENSEE’S counsel,
      SKI is required to be named as a party to such action for standing or other
      purposes. All costs of any action to enforce the Patent Rights taken by LICENSEE
      shall be borne by LICENSEE and LICENSEE shall keep any awarded damages derived
      therefrom, except that the excess of such recovery over such costs shall be
      considered as sublicensing revenues and be shared according to the terms of
      4.1.c.. No settlement, consent judgment or other voluntary final disposition
      of
      a suit brought under Section 7.1 or 7.2 may be entered into without the prior
      written consent of SKI or LICENSEE, respectively, which consent shall not
      unreasonably be withheld. 

     

    
      
        
        

      

      
        12/23

        
          

        

      

      
        
        

      

    

    7.2 In
      the event LICENSEE becomes aware of unlicensed infringement of the Patent
      Rights, either through notice from SKI or by other means, and does not, within
      three (3) months (a) secure cessation of the infringement; or (b) enter suit
      against the infringer; or (c) provide SKI with evidence of pendency of a bona
      fide negotiation for sublicensing the infringer, then, thirty (30) days after
      giving written notice to LICENSEE, SKI shall have the right to sue for the
      infringement at SKI’s own expense, and to collect for its own use any damages,
      profits and awards of whatever nature that it may recover for such infringement.
      

    

    7.3 Each
      party shall promptly notify the other in writing in the event that a third
      party
      shall bring a claim of infringement against SKI or LICENSEE, either in the
      United States or in any foreign country in which there are Patent Rights.

    

    7.4 In
      the event LICENSEE is sued
      for patent infringement, threatened with such suit, or enjoined from exercising
      its license rights granted hereunder, LICENSEE may (i) terminate this Agreement
      according to Article XII; (ii) contest the action against it; or (iii) take
      no
      action with respect to the patent infringement, threat of such suit or
      enjoinment from the exercise of its license rights granted hereunder for a
      period of up to six months from the date on which LICENSEE learns of such patent
      infringement, except to provide written notice to SKI of its intention not
      to
      take any action with respect to such patent infringement. After the six (6)
      month period, SKI shall have the right, but not the obligation, to take such
      action as SKI deems appropriate with respect to such suit, threatened suit
      or
      enjoinment or terminate this Agreement. In any such action, LICENSEE shall
      be
      fully responsible for all its costs, including expenses, judgments and
      settlements, and shall be entitled to proceeds that it may recover, including
      judgments, settlements and awards, except that the excess of such recovery
      over
      such costs shall be considered as sublicensing revenues and be shared according
      to the terms of 4.1.c. SKI shall not be liable for any losses incurred as the
      result of an action for infringement brought against LICENSEE as the result
      of
      LICENSEE’s exercise of any rights granted under this Agreement. LICENSEE may not
      deduct, from payments due to SKI, any portion of its costs related to any
      judgment or settlement of such actions. 

    

    7.5 In
      any infringement suit as either party may institute to enforce the Patent Rights
      against third parties pursuant to this Agreement, or in any infringement action
      brought against either party by a third party, each party hereto shall, at
      the
      request and expense of the other party, cooperate in all respects and, to the
      extent possible, have its employees testify when requested and make available
      relevant records, papers, information, samples, specimens, and the like.

     

    
      
        
        

      

      
        13/23

        
          

        

      

      
        
        

      

    

    7.6 The
      parties agree to allow non-profit research organizations to practice the Patent
      Rights solely for academic, non-commercial, non-clinical research purposes
      and
      such activity shall not constitute an infringement. 

    

    

    ARTICLE
      VIII - INDEMNIFICATION, PRODUCT LIABILITY

     

    
      8.1 LICENSEE
        shall at all times during the term of this Agreement and thereafter, indemnify,
        defend and hold SKI and its Affiliates, their Board of Managers, officers,
        employees and affiliates (each, an “Indemnitee”), harmless against all expenses,
        including legal expenses and reasonable attorneys’ fees,
        resulting from third party claims arising out of the death of or injury to
        any
        person or persons or out of any damage to property and against any other
        third
        party claim, proceeding, demand, expense and liability of any kind whatsoever
        resulting from the development, production, manufacture, sale, use, lease,
        consumption or advertisement by LICENSEE or sublicensee of the Licensed
        Product(s) and/or Licensed Process(es) or arising from any obligation of
        LICENSEE hereunder (collectively, “Losses”); provided, however, that the above
        indemnification shall not apply to any liability, damage, loss or expense
        to the
        extent that it is attributable to the gross negligence, reckless misconduct
        or
        intentional misconduct of any Indemnitee or to a material breach by SKI of
        any
        representation, warranty or obligation under this Agreement. Where SKI intends
        to seek indemnification pursuant to the provisions of this Section 8.1, SKI
        shall promptly notify LICENSEE as to (i) the nature of the claim asserted
        and
        (ii) the commencement of any suit or proceeding brought to enforce any such
        claim.   A failure to promptly notify the LICENSEE of the foregoing
        shall serve to reduce the indemnity rights of the LICENSEE to the extent
        that
        such delay or failure to promptly notify the LICENSEE prejudiced the LICENSEE’s
        defense of the claim. Upon acknowledging the right to indemnity, the LICENSEE
        shall be entitled to assume and control the defense of any such suit or
        proceeding and the SKI shall reasonably cooperate with respect to such defense
        when possible. SKI may retain independent counsel in such proceedings,
        but LICENSEE shall not be liable for any legal expenses incurred by SKI for
        retaining such independent counsel attorney. However, Licensee shall be liable
        for reasonable out of pocket expenses incurred by SKI in connection with
        such
        defense.

    

    

    8.2 For
      the term of this Agreement, upon the commencement of clinical use, production,
      sale, or transfer, whichever occurs first, of any Licensed Product or Licensed
      Process, LICENSEE shall obtain and carry in full force and effect general
      liability insurance which shall protect LICENSEE and SKI in regard to events
      covered by Section 8.1 above. Such insurance shall be written by a reputable
      insurance company, shall list SKI as an additional named insured thereunder,
      shall be endorsed to include liability coverage, and shall require thirty (30)
      days written notice to be given to SKI prior to any cancellation or material
      change thereof. The limits of such insurance shall not be less than [*] dollars
      ($[*]) per occurrence with an annual aggregate of [*] dollars ($[*]) for
      personal injury, death or property damage. LICENSEE shall provide SKI with
      Certificates of Insurance evidencing the same.

     

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

    
      
        
        

      

      
        14/23

        
          

        

      

      
        
        

      

    

    8.3  Except
      as otherwise expressly set forth in this Agreement, SKI MAKES NO REPRESENTATIONS
      AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING
      BUT
      NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
      VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING, AND ANY WARRANTY OF NON
      INFRINGEMENT.

    

    8.4 Disclaimer.
      EXCEPT AS OTHERWISE EXPRESSLY PROVIDED UNDER SECTION 8.1, IN NO EVENT SHALL
      SKI
      OR LICENSEE OR ANY OF THEIR AFFILIATES OR THEIR RESPECTIVE TRUSTEES, DIRECTORS,
      OFFICERS, MEDICAL AND PROFESSIONAL STAFF, EMPLOYEES AND AGENTS BE LIABLE FOR
      SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING WITHOUT
      LIMITATION ECONOMIC DAMAGES OR INJURY TO PROPERTY OR LOST PROFITS, REGARDLESS
      OF
      WHETHER SKI OR LICENSEE SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW,
      OR IN
      FACT SHALL KNOW OF THE POSSIBILITY OF THE FOREGOING. 

    

    8.5  Intellectual
      Property. SKI represents that (i) SKI has the sole right to grant to LICENSEE
      the rights granted herein and the rights are unencumbered by any liens; (ii)
      to
      the best of its knowledge, SKI is not aware of any third party patents that
      would block the commercialization of Licensed Products or
      Licensed Processes; (iii) SKI has not received any notice, including
      written notice, alleging any infringement by SKI of any intellectual property
      rights of a third party in respect of the Patent Rights; and (iv) to the
      knowledge of SKI, the rights granted under this Agreement do not conflict with
      the rights granted by SKI to any third party.

    

    8.6  SKI
      represents and warrants, to the best of its knowledge, and covenants
      that:

    

    
      	a)  	
              SKI
                has disclosed to LICENSEE all potential and existing Patent Rights
                in the
                control of SKI or in control of a third party known to SKI which
                may be
                needed to commercialize any Licensed Product or Licensed
                Process;

            

    

    
      
        	b)  	
                
                  Exhibit
                    A lists all patents and patent applications owned by SKI that
                    cover the
                    Licensed Product or Licensed Process, and SKI will during the term of
                    this Agreement, promptly upon request, provide LICENSEE with
                    an updated
                    version of Exhibit A;
                    and

                

              

 

    

    
      	c)  	
              SKI
                is the exclusive owner of the patents and patent applications listed
                in
                Exhibit A as of the date hereof and has the sole and exclusive right
                

            

    

    
      	d)  	
              to
                license the Patent Rights.

            

    

    
      	e)  	
              There
                are no inventors of Patent Rights other than those listed as inventors
                on
                Exhibit A.

            

    

     

    

    
      
        
        

      

      
        15/23

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX - EXPORT CONTROLS

    

    It
      is
      understood that SKI is subject to United States Laws and regulations controlling
      the export of technical data, computer software, laboratory prototypes and
      other
      commodities (including the Arms Export Control Act, as amended and the Export
      Administration Act of 1979), and that its obligations hereunder are contingent
      on compliance with applicable United States export laws and regulations. The
      transfer of certain technical data and commodities may require a license from
      the cognizant agency of the United States Government and/or written assurances
      by LICENSEE that LICENSEE shall not export data or commodities to certain
      foreign countries without prior approval of such agency. SKI neither represents
      that a license shall not be required nor that, if required, it shall be
      issued.

    

    

    ARTICLE
      X
      - NON-USE OF NAMES

    

    Neither
      party shall use the name of the other party or its Affiliates, nor any of their
      employees, nor any adaptation thereof, in any advertising, promotional or sales
      literature without prior written consent obtained from the other party in each
      case.

    

    

    ARTICLE
      XI - ASSIGNMENT

    

    11.1 This
      Agreement may not be assigned by LICENSEE without prior written consent from
      SKI, which shall not be unreasonably withheld.

     

    11.2 Notwithstanding
      the foregoing prohibition, LICENSEE may without SKI’s consent assign this
      Agreement to any entity that it may merge into, consolidate with, or transfer
      substantially all of its assets (“substantially” being EIGHTY PERCENT (80%) or
      more thereof) as an entirety, so long as the successor surviving corporation
      in
      any such merger, consolidation, transfer or reorganization assumes in writing
      the obligations of this Agreement. Such merger, consolidation, transfer or
      reorganization shall not in itself be a breach of this Article XI, nor be any
      default under this Agreement. 

    

    

    ARTICLE
      XII - TERMINATION

    

    12.1 Subject
      to completion of any proceedings under Section 12.4, SKI may terminate this
      Agreement: 

     

    
      	12.1.1  	
              In
                the event any of the following occur, on thirty (30) days written
                notice
                to LICENSEE unless LICENSEE shall have remedied, if such remedy is
                possible, any such event prior to the expiration of the thirty (30)
                day
                period: 

            

    

     

    
      
        	 	
                (a) 

              	
                A
                  petition in bankruptcy is filed against LICENSEE and is consented
                  to,
                  acquiesced in or remains undismissed for thirty (30) days; or makes
                  a
                  general assignment for the benefit of creditors, or a receiver
                  is
                  appointed for LICENSEE;

              

      

       

       

      
        
          
          

        

        
          16/23

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                (b)

              	
                LICENSEE
                  fails to pay SKI license fees, royalties and patent expenses due
                  and
                  payable hereunder for more than thirty (30) days;

              
	 	 	 
	 	
                (c)

              	
                LICENSEE
                  defaults in its obligations under Section 8.2 to procure and maintain
                  insurance;

              
	 	 	 
	 	
                (d)

              	
                An
                  examination pursuant to Section 5.1 shows an underreporting of
                  Net Sales
                  made by LICENSEE and an underpayment of royalties due and payable
                  by
                  LICENSEE on such Net Sales in excess of [*] % for any twelve (12)
                  month
                  period; or

              
	 	 	 
	 	
                (e)

              	
                LICENSEE
                  is convicted of a felony relating to the manufacture, use, or sale
                  of
                  LICENSED PRODUCTS;

              

      

    

     

    
      	12.1.2  	
              If
                LICENSEE materially breaches a provision of this Agreement, other
                than
                those occurrences set out in Sections 12.1.1 (a) - (e) hereinabove,
                which shall always take precedence in that order over any material
                breach
                or default referred to in this Section 12.1.2, SKI shall have the
                right to
                terminate this Agreement and the rights, privileges and license granted
                hereunder by sixty (60) days’ notice to LICENSEE. Such
                termination shall become effective unless LICENSEE shall have cured
                any
                such breach prior to the expiration of the sixty (60) day period.
                

            

    

     

    12.2 LICENSEE
      shall be entitled to terminate this Agreement upon sixty (60) days advance
      written notice to SKI, in the event of SKI’s material breach of any of the
      provisions of this Agreement, which breach is not cured (if capable of being
      cured) within this sixty (60) day period, or if conditions of Section 7.4
      apply.  In addition to the foregoing, LICENSEE shall be entitled to
      terminate this Agreement with or without cause upon ninety (90) days advance
      written notice to SKI; provided that, if a patient has been enrolled for a
      Phase
      II clinical study for a Licensed Product, LICENSEE shall pay a termination
      fee
      of [*] U.S. dollars (U.S. $[*]). Upon termination, LICENSEE shall submit to
      SKI
      a final report, any royalty payments due, unreimbursed patent expenses due,
      and
      the license termination fee, if applicable.

    
      

      12.3 Upon
        termination of this Agreement for any reason, nothing herein shall be construed
        to release either party from any obligation that matured prior to the effective
        date of such termination. LICENSEE must return to SKI all materials provided
        by
        SKI under this Agreement (including know-how, biological, chemical, FDA files,
        etc.) relating to Licensed Product, Licensed Processes, and the Patent
        Rights.  To the extent permitted by law, and subject to mutual
        agreement by the parties on reasonable confidentiality, indemnification and
        other provisions regarding transfer and use of the information, LICENSEE
        shall
        return to SKI, all FDA files relating to Licensed Products and Licensed
        Processes and SKI shall reimburse LICENSEE for costs incurred as a result
        of such transfer; provided, however, that, unless terminated under Sections
        12.1.1 (a) - (e), LICENSEE shall have the right for six (6) months thereafter
        to
        dispose of all Licensed Products then in its inventory, and shall pay royalties
        thereon, in accordance with the provisions of Article IV and shall submit
        the
        related reports as required by Article V, as though this Agreement had not
        terminated.

       

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

      
        
          
          

        

        
          17/23

          
            

          

        

        
          
          

        

      

      12.4
        Other than any claim arising from LICENSEE’s failure to pay license fees or
        patent expenses due under the contract, any controversy or bona fide disputed
        claim arising between the parties to this Agreement, which dispute cannot
        be
        resolved by mutual agreement shall, by the election of either party, be resolved
        by submitting to dispute resolution before a fact-finding mediation body
        composed of one or more experts in the field, selected by mutual agreement
        within thirty (30) days of written request by either party. Said dispute
        resolution shall be held in New York at such place as shall be mutually agreed
        upon in writing by the parties. The fact-finding body shall determine who
        shall
        bear the cost of said resolution. In the event that the parties cannot mutually
        agree within said thirty (30) days on the dispute resolution body, the parties
        will go to arbitration in accordance with the Commercial Arbitration Rules
        of
        the American Arbitration Association. Nothing in this Section 12.4 shall
        prevent
        either party from seeking a pre-award attachment of assets or preliminary
        relief
        to enforce its rights in intellectual property or confidentiality obligations
        under this Agreement, or to enjoin any event that might cause irreparable
        injury, in a court of competent jurisdiction prior to an award on the merits
        by
        the mediation body or arbitrator.

    

    

    12.5
      In the event that this Agreement
      is terminated for any reason in one or more countries and a sublicense has
      been
      granted under this Agreement under any such license with respect to Licensed
      Product in such country, then such sublicense shall survive termination,
provided however, that SKI may enter into an agreement directly with
      such sublicensee, said agreement having identical terms and conditions as those
      of the original sublicense agreement, respecting that the grant of any such
      sublicense by LICENSEE is limited by the terms and conditions of this
      Agreement.

    

    12.6
      Articles VIII, X, XV and Section 12.5 of this Agreement shall survive
      termination. 

    

     

    ARTICLE
      XIII - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

    

    Any
      payment, notice or other communication pursuant to this Agreement shall be
      sufficiently made or given when delivered by courier or other means providing
      proof of delivery to such party at its address below or as it shall designate
      by
      written notice given to the other party:

    

    In
      the
      case of SKI:

    

    Sloan-Kettering
      Institute for Cancer Research

    1275
      York
      Avenue

    New
      York,
      New York 10021

    Attention:
      James S. Quirk

                      
      Senior
      Vice President

      
      Research Resources Management

     

    
      
        
        

      

      
        18/23

        
          

        

      

      
        
        

      

    

    In
      the
      case of LICENSEE: 

    

    Innovive
      Pharmaceuticals

    555
      Madison Avenue

    New
      York,
      New York 10022

    

    Checks
      shall be made payable to Sloan-Kettering Institute for Cancer Research (Tax
      I.D.
      No. 13-1624182) with “Payment, Contract No. SK#10829” indicated on the
      check, and shall be forwarded to:

    

    Memorial
      Sloan-Kettering Cancer
      Center

    Office
      of Industrial
      Affairs

    General
      Post Office Box

    P.
      O. Box 27718

    New
      York, New York
      10087-27718

    

    

    ARTICLE
      XIV - MISCELLANEOUS PROVISIONS

    

    14.1
      This
      Agreement shall be construed, governed, interpreted and applied in accordance
      with the laws of the State of New York, except that questions affecting the
      construction and effect of any patent shall be determined by the law of the
      country in which the patent was granted.

    

    14.2 The
      provisions of this Agreement are severable, and in the event that any provisions
      of this Agreement shall be determined to be invalid or unenforceable under
      any
      controlling body of the law, such invalidity or unenforceability shall not
      in
      any way affect the validity or enforceability of the remaining provisions
      hereof.

    

    14.3 LICENSEE
      agrees to mark the Licensed Products sold in the United States with all
      applicable United States patent numbers. All Licensed Products shipped to or
      sold in other countries shall be marked in such a manner as to conform with
      the
      patent laws and practice of the country of manufacture or sale.

    

    14.4 The
      failure of either party to assert a right hereunder or to insist upon compliance
      with any term or condition of this Agreement shall not constitute a waiver
      of
      that right or excuse a similar subsequent failure to perform any such term
      or
      condition by the other party.

    

    14.5 This
      Agreement may be executed in any number of counterparts and each of such
      counterparts shall for all purposes be an original and all such counterparts
      shall together constitute but one and the same agreement.

     

    14.6 Force
      Majeure. Neither party shall be responsible for delays resulting from causes
      beyond the reasonable control of such party (a “Force Majeure Event”), including
      without limitation fire, explosion, flood, war, sabotage, strike or riot,
      provided that the nonperforming party uses commercially reasonable efforts
      to
      avoid or remove such causes of nonperformance and continues performance under
      this Agreement with best reasonable dispatch whenever such causes are
      removed.

     

    
      
        
        

      

      
        19/23

        
          

        

      

      
        
        

      

    

    ARTICLE
      XV - CONFIDENTIALITY

     

    15.1 The
      Company and Licensor agree that they will not use the information marked
      confidential (“Confidential Information”) for any purpose unrelated to this
      Agreement, and will hold it in confidence during the term of this Agreement
      and
      for a period of [*] years after the termination or expiration date of this
      Agreement. The Company and Licensor shall exercise with respect to such the
      Confidential Information the same degree of care as the parties exercise with
      respect to its own confidential or proprietary information of a similar nature,
      and shall not disclose it or permit its disclosure to any third party (except
      to
      those of its employees, consultants, or agents who are bound by the same
      obligation of confidentiality as the Company and Licensor are bound by pursuant
      to this Agreement). However, such undertaking of confidentiality by the parties
      shall not apply to any information or data which:

    

    15.1.1 The
      receiving party receives at any
      time from a third-party lawfully in possession of same and having the right
      to
      disclose same.

    

    15.1.2 Is,
      as of the date of this
      Agreement, in the public domain, or subsequently enters the public domain
      through no fault of the receiving party.

    

    15.1.3 Is
      independently developed by the
      receiving party as demonstrated by written evidence without reference to
      information disclosed to the receiving party.

    

    15.1.4 Is
      disclosed pursuant to the prior
      written approval of the disclosing party.

    

    15.1.5 Is
      required to be disclosed
      pursuant to law or legal process (including, without limitation, to a
      governmental authority) provided, in the case of disclosure pursuant to legal
      process, reasonable notice of the impending disclosure is provided to the
      disclosing party and the disclosing party has agreed to such disclosure in
      writing or has exhausted its right to contest such disclosure.

    

     

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

    
      
        
        

      

      
        20/23

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, authorized representatives of the parties have signed and
      dated
      this Agreement below.

     

    
      	 	 	 	 
	Sloan-Kettering
              Institute for Cancer Research 	 	 	Innovive
              Pharmaceuticals 
	 	 	 	 
	 	 	 	 
	By: 	 	 	By:
	
              
                

              

              James
                S. Quirk

              Senior
                Vice President

              Research
                Resources Management      

            	 	 	
              
                

              

              Steven
                Kelly

              President
                and Chief Executive Officer

            
	 	 	 	 
	Date: 	 	 	Date: 
	
              
                
  

            	 	 	
              
                
  

            

    

     

    

    
      
        
        

      

      
        21/23

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    [*]

    

    

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

    
      
        
        

      

      
        22/23

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    The
      Plan

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