Document:

ex1050.htm - Generated by SEC Publisher for SEC Filing

 

Exhibit 10.5

 

 

 

 

CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH THREE ASTERISKS [****].

 

REDACTED COPY OF

 

PHYTOMEDICAL - DARTMOUTH EXCLUSIVE LICENSE AGREEMENT

 

This Agreement, effective this     day of  2008, between

 

TRUSTEES OF DARTMOUTH COLLEGE, a non-profit educational and research institution existing under the laws of the State of New Hampshire, and being located at Hanover, New Hampshire 03755, hereinafter called  Dartmouth ,

 

And

 

PHYTOMEDICAL TECHNOLOGIES, INC., a corporation of the State of Nevada, with a principal place of business at address,100 Overlook Drive, 2 nd  Floor, Princeton, NJ 08540 hereinafter called  PhytoMedical.

 

WHEREAS, Dartmouth, under the direction of principal investigator Gordon Gribble, Ph.D. has developed [ ****] ;  and

 

WHEREAS, Dartmouth represents that it has the right to grant licenses granted in this agreement; and

 

WHEREAS, PhytoMedical wishes to obtain a license under the terms and conditions hereinafter set forth, and to use its expertise and resources to manufacture and market the technology;

 

NOW THEREFORE, in consideration of the premises and the faithful performance of the covenants herein contained, IT IS AGREED:

 

ARTICLE I.  Definitions

 

Section 1.01  Dartmouth Know-How.  "Dartmouth Know-How" shall mean the ideas, methods, characterization and techniques developed by Gordon Gribble, Ph.D. at Dartmouth before the Effective Date, which are necessary for practicing Dartmouth Patent Rights.

 

Section 1.02  Dartmouth Patent Rights.  "Dartmouth Patent Rights" shall mean [****] and any United States or foreign patents issuing therefrom, and any continuations, continuations-in-part, divisions, reissues, reexaminations or extensions thereof. Dartmouth shall be the assignee and owner of all such Patents and Patent Applications.

 

 

Section 1.03  Licensed Products.  "Licensed Products" shall mean any products or processes covered by or made, in whole or in part, by the use of Dartmouth Patent Rights or by the use of Dartmouth Know-How

 

Section 1.04  Field.  The "Field" of this Agreement shall mean human therapeutics.

 

Section 1.05 Territory.  The “Territory” shall mean worldwide.

 

Section 1.06  Subsidiary.  "Subsidiary" shall mean a legal entity at least 50% of the voting stock of which is owned directly or indirectly by PhytoMedical.

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Section 1.07  Agreement.  "Agreement" shall mean this License Agreement.

 

Section 1.08  Net Sales.  "Net Sales" shall mean the gross billing price PhytoMedical, its subsidiaries and sublicensees charge to their customers for Licensed Products, less sales, use, occupation and excise taxes, and transportation, discounts, returns and allowances in lieu of returns.

 

Section 1.09  Effective Date.  "Effective Date" shall mean the date first written above and shall be the Effective Date of this Agreement.

 

Section 1.10  License Year.  The "First License Year" shall mean the period commencing on the Effective Date and ending December 31, 2008.  The second and all subsequent "License Years" shall commence on January 1 and end on December 31 of each year.

 

Section 1.11 Calendar Quarter.  "Calendar Quarter" shall mean the periods ending on March 31, June 30, September 30 and December 31 of each year.

 

ARTICLE II.  Grant

 

Section 2.01  License Grant.  Dartmouth hereby grants to PhytoMedical and its Subsidiaries an exclusive, worldwide, royalty-bearing license under Dartmouth Know-How and Dartmouth Patent Rights to make, have made, use, and/or sell Licensed Products in the Field in the Territory.  Notwithstanding the foregoing, Dartmouth expressly reserves a non-transferable royalty-free right to use the Dartmouth Patent Rights and Dartmouth Know-How in the Field itself, including use by its faculty, staff and researchers, for educational and research purposes only.  PhytoMedical agrees during the period of exclusivity of this license that best efforts will be made to assure manufacturing will remain in the United States for any Licensed Products produced for sale in the United States.

 

Section 2.02  Sublicenses.  PhytoMedical shall have the right to grant sublicenses to third parties under Dartmouth Know-How and Patent Rights to make, have made, use and sell the Licensed Products with the consent of Dartmouth , which consent shall not be unreasonably withheld, except that such sublicenses shall be in writing and expressly subject to the terms of this Agreement.  PhytoMedical agrees to be responsible for the performance hereunder by its sublicensees.  Dartmouth shall have the right to review such sublicenses to assure conformity with this Section.  Upon termination of this Agreement, any such sublicenses will revert directly to Dartmouth.

 

 

Section 2.03  Patents.  PhytoMedical shall reimburse Dartmouth for all expenses Dartmouth has incurred for the preparation, filing, prosecution and maintenance of Dartmouth Patent Rights as of the Effective Date.  Dartmouth shall control all future preparation, filing, prosecution and maintenance of Dartmouth Patent Rights.  PhytoMedical shall reimburse Dartmouth for all future expenses in connection with this. Late payments shall be subject to an interest charge of one and one half percent (1.5%) per month. If PhytoMedical chooses to discontinue prosecution or maintenance of any United States Patent or Patent Application, which is a subject of Dartmouth Patent Rights, it will so inform Dartmouth within a reasonable time before implementation of such decision.  Dartmouth then shall have the right to prosecute or maintain such Patent or Patent Application on its own and at its own expense, in which case the license to PhytoMedical under such Patent or Patent Application will terminate.  Dartmouth shall provide PhytoMedical with notice of the National Phase deadline no fewer than six (6) months before the deadline.  PhytoMedical  shall notify Dartmouth by at least three (3) months before a National Phase deadline whether it will support the filing of patent applications in particular foreign territories. If PHYTOMEDICAL decides not to support the filing or maintaining foreign applications, Dartmouth reserves the right to file or maintain such applications on its own, in which case the license to PHYTOMEDICAL in the particular territory will terminate.

 

ARTICLE III.

Disclosure of Invention, Confidentiality and Representations

 

Section 3.01  Confidential Agreement.  This Agreement and the contents hereof constitute a confidential business relationship between the parties.  Each party acknowledges that significant damage could be done to the other one should the terms of this Agreement become public knowledge.  Both parties agree that they will not reveal the terms of this Agreement to any third party (excluding agents, attorneys, representatives and others with whom they have a legal obligation to disclose, including, but not limited to, government agencies and regulatory authorities) except  

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 within the restrictive confines of a Confidentiality Agreement, and that they will exercise reasonable precautions to insure that neither they nor their employees or agents shall allow the terms of the Agreement to become public knowledge.

 

Section 3.02  Disclosure of Invention.   Dartmouth agrees promptly after the Effective Date of this Agreement to deliver and to disclose to duly authorized representatives of PhytoMedical, all proprietary technical data, methods, processes, including the technology, and other information and specifications relating to Dartmouth Know-How.

 

Section 3.03  Mutual Confidentiality.  PhytoMedical and Dartmouth realize that some information received by one party from the other pursuant to this Agreement shall be confidential.  It is therefore agreed that any information received by one party from the other, and clearly designated in writing as  "CONFIDENTIAL"  at the time of transfer, shall not be disclosed by either party to any third party and shall not be used by either party for purposes other than those contemplated by this Agreement for a period of three (3) years from the termination of the Agreement, unless or until --

 

(a)  said information shall become known to third parties not under any obligation of confidentiality to the disclosing party, or shall become publicly known through no fault of the receiving party, or

 

(b)  said information was already in the receiving party's possession prior to the disclosure of said information to the receiving party, except in cases when the information has been covered by a preexisting Confidentiality Agreement, or

 

 

 

(c)  said information shall be subsequently disclosed to the receiving party by a third party not under any obligation of confidentiality to the disclosing party, or

 

(d)  said information is approved for disclosure by prior written consent of the disclosing party, or

 

(e)  said information is required to be disclosed by court order or governmental law or regulation, provided that the receiving party gives the disclosing party prompt notice of any such requirement and cooperates with the disclosing party in attempting to limit such disclosure, or

 

(f)  said information is proven independently developed by the receiving party without recourse or access to the information.

 

 

Section 3.04  Corporate Action.  Dartmouth and PhytoMedical each represent and warrant to the other party that they have full power and authority to enter into this Agreement and carry out the transactions contemplated hereby, and that all necessary corporate action had been duly taken in this regard.

 

 

 

ARTICLE IV.  Due Diligence

 

Section 4.01  Milestones. PhytoMedical has represented to Dartmouth, to induce Dartmouth to issue this license, that it will commit itself to a diligent program of exploiting the Licensed Products so that public utilization will result therefrom.  As evidence thereof, PhytoMedical shall adhere to the following milestones:

 

[****]

 

Section 4.02  Minimum Royalty.  Dartmouth shall have the right, upon thirty (30) days written notice, to terminate the license, if company fails to pay Darmouth a minimum royalty of at least:

 

[****]

 

PhytoMedical shall have the right to maintain the license by paying Dartmouth within such thirty (30) day period a cash payment equivalent to the Minimum Royalty.

 

Section 4.03  Minimum Royalty.  If PhytoMedical has failed to meet the minimum Net Sales amounts  

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 set forth in Section 4.02 of the Agreement in any one year and Dartmouth has provided thirty (30) days notice to PhytoMedical that it intends to terminate the license granted hereunder, PhytoMedical shall have the right to maintain the license by paying Dartmouth within such thirty (30) day period the royalty it would otherwise be obligated to pay under this Agreement if it had met the Minimum Net Sales amount.

 

 

 

ARTICLE V.  Payments, Records and Reports

 

Section 5.01  Payments.  For the rights and privileges granted under this license, PhytoMedical shall pay to Dartmouth

 

[****]

 

Section 5.02  Reports.  PhytoMedical shall render to Dartmouth:

 

(a) within thirty (30) days after the end of each Calendar Quarter a written account of all quantities of Licensed Products subject to royalty hereunder sold by PhytoMedical, any Subsidiary, and any sublicensee during such Calendar Quarter, the calculation of royalty thereon, and sufficient data for Dartmouth to verify the calculation, including gross sales and all related Licensed Product allowable deductions in accordance with PhytoMedical’s GAAP-compliant  accounting procedures  to derive Net Sales figures, and shall simultaneously pay in United States dollars to Dartmouth the royalty due with respect to such sales.  Conversion of foreign currency to U.S. dollars shall be made at the conversion rate existing in the United States on the date of royalty payments by PhytoMedical.  Such report shall be certified as correct by an officer of PhytoMedical.  If no Licensed Products subject to royalty hereunder have been sold by PhytoMedical, its Subsidiaries and its sublicensees during any such quarter year, PhytoMedical shall so report in writing to Dartmouth within thirty (30) days after the end of said quarter year.  If royalties for any License Year do not equal or exceed the minimum royalties established in Section 4.03, PhytoMedical shall include the balance of the minimum royalty with the payment for the Calendar Quarter ending December 31.  Late payments shall be subject to an interest charge of one and one half percent (1.5%) per month.

 

(b) within sixty (60) days after the close of each License Year written annual reports which shall include but not limited to: reports of progress on research and development, regulatory approvals, manufacturing, sublicensing, marketing and sales during preceding twelve (12) months as well as plans for coming year.  PhytoMedical shall also provide any reasonable additional data Dartmouth requires to evaluate PhytoMedical's performance.

 

(c) within thirty (30) days of occurrence report of the date of first sale of Licensed Products in each country.

 

Section 5.03  Books of Accounts.  PhytoMedical, its Subsidiaries and Sublicensees shall keep full, true and accurate books of accounts and other records containing all particulars which may be necessary for the purpose of ascertaining and verifying the royalties payable to Dartmouth by PhytoMedical hereunder.  Upon Dartmouth's request, PhytoMedical, its Subsidiaries and Sublicensees shall permit an independent Certified Accountant selected by Dartmouth (except one to whom PhytoMedical has some reasonable objection), to periodically have access during ordinary business hours to such records of PhytoMedical, its Subsidiaries and Sublicensees as may be necessary to determine, for any quarter ending not more than three (3) years prior to the date of such request, the correctness of any report and/or payment made under this Agreement.  In the event that any such inspection shows an underreporting and underpayment in excess of five percent (5%) for any twelve (12) month period, then PhytoMedical shall pay the cost of such examination.

 

 

ARTICLE VI.  Technical Assistance and Commercial Development

 

Section 6.01  Technical Assistance.  Throughout the term of the Agreement, Dartmouth agrees to permit PhytoMedical and its designees to consult with its employees and agents regarding developments and enhancements made subsequent to the Effective Date relating to the Licensed Products, at such times and places as may be mutually agreed upon; provided that PhytoMedical agrees to make suitable arrangements with, and to compensate the Dartmouth employees and agents for such consultation.

 

 

Section 6.02  Commercial Development.  During the term of this Agreement, PhytoMedical agrees to use  

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 commercially reasonable efforts to effectively manufacture and market Licensed Products.  Such efforts will include sublicensing, development of promotional literature, mailings, and journal advertisements.

 

Section 6.03  Name.  PhytoMedical shall not use and shall not permit to be used by any other person or entity the name of Dartmouth nor any adaptation thereof, or the name of Dartmouth's employees, in any advertising, promotional or sales literature, or for any other purpose without prior written permission of Dartmouth, except that PhytoMedical may state that it is licensed by Dartmouth under Dartmouth Know-How and Patent Rights.  Dartmouth acknowledges that PhytoMedical is a corporation having a reporting obligation under the Securities Exchange Act of 1934, as amended, which has or may have certain disclosure and filing obligations under applicable law, including but not limited to the public announcement and disclosure of this Agreement and the filing of the same with the United States Securities and Exchange Commission; it is acknowledged and agreed that such disclosure and filing shall not be deemed a violation of this Agreement.

 

 

 

ARTICLE VII.  Indemnity, Insurance, Disclaimers

 

Section 7.01   Indemnity.  PhytoMedical shall defend and indemnify and hold Dartmouth and its trustees, officers, agents and employees (the "Indemnitees") harmless from any judgements and other liabilities based upon claims or causes of action against Dartmouth or its employees which arise out of alleged negligence in the development, manufacture or sale of Licensed Products by PhytoMedical, its Subsidiaries, and Sublicensees, or from the use by the end users of Licensed Products, except to the extent that such judgements or liabilities arise in whole or in part from the gross negligence or willful misconduct of Dartmouth or its employees, provided that Dartmouth promptly notifies PhytoMedical of any such claim coming to its attention and that it cooperates with PhytoMedical in the defense of such claim.  If any such claims or causes of action are made, Dartmouth shall be defended by counsel to PhytoMedical, subject to Dartmouth's approval, which shall not be unreasonably withheld.  Dartmouth reserves the right to be represented by its own counsel at its own expense.

 

Section 7.02  Insurance.  At such time as any product, process, service relating to, or developed pursuant to, this Agreement is being commercially distributed or sold (other than for the purpose of obtaining regulatory approvals) by PhytoMedical or by a Sublicensee, Subsidiary or agent of PhytoMedical, PhytoMedical, Sublicensee, Subsidiary or agent of PhytoMedical shall at its sole cost and expense, procure and maintain comprehensive general liability insurance in amounts not less than $2,000,000 per incident  and naming the Indemnitees as additional insureds.  Such comprehensive general liability insurance shall provide (i) product liability coverage and (ii) broad form contractual liability coverage for PhytoMedical's indemnification under this Agreement.  If PhytoMedical elects to self-insure all or part of the limits described above (including deductibles or retentions which are in excess of $250,000 annual aggregate) such self-insurance program must be acceptable to Dartmouth and Dartmouth Risk Manager. Such insurance will be considered primary as to any other valid and collectible insurance, but only as to acts of the named insured. The minimum amounts of insurance coverage required shall not be construed to create a limit of PhytoMedical's liability with respect to its indemnification under this Agreement.

 

 

PhytoMedical shall provide Dartmouth with written evidence of such insurance upon request of Dartmouth.  PhytoMedical shall provide Dartmouth with written notice at least fifteen (15) days prior to the cancellation, non-renewal or material change in such insurance; if PhytoMedical does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, Dartmouth shall have the right to terminate this Agreement effective at the end of such fifteen (15) day period without notice or any additional waiting periods.

 

PhytoMedical,  Sublicensee, Subsidiary or agent of PhytoMedical shall maintain such comprehensive general liability insurance beyond the expiration or termination of this Agreement during (I) the period that any product, process, or service, relating to, or developed pursuant to, this Agreement is being commercially distributed or sold by PhytoMedical or by a sublicensee, Subsidiary or agent of PhytoMedical and (ii) a reasonable period after the period referred to in (i) above which in no event shall be less than fifteen (15) years.

 

Section 7.03  Disclaimer.  Nothing contained in this Agreement shall be construed as:

 

(a) a warranty or representation by Dartmouth as to the validity or scope of any Patent Rights;

 

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(b) a warranty or representation that any Licensed Products manufactured, used or sold will be free from infringement of patents, copyrights, or third parties, except that Dartmouth represents that it has no knowledge of any existing issued patents or copyrights which might be infringed;

 

(c) except as provided in Section 7.01, an agreement to defend against actions or suits of any nature brought by any third parties.

 

DARTMOUTH MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF LICENSED PRODUCTS

 

ARTICLE VIII.  Infringement Matters

 

Section 8.01  Infringement by Third Parties.  PhytoMedical shall give Dartmouth prompt notice of any incident of infringement of Dartmouth Patent Rights coming to its attention.  The parties shall thereupon confer together as to what steps are to be taken to stop or prevent such infringement.  Dartmouth agrees to use reasonable efforts to stop any such infringement, but shall not be obliged to commence proceedings against the infringer.  If Dartmouth decides to commence proceedings however, Dartmouth shall be responsible for any legal costs incurred and will be entitled to retain any damages recovered.  Should Dartmouth decide not to commence proceedings, PhytoMedical shall be entitled to do so in its own name against the infringer, in which event PhytoMedical shall be responsible for all legal costs incurred, without recourse to Dartmouth.  Financial recoveries from any such litigation will first be applied to reimburse PhytoMedical for its litigation expenditures with additional recoveries being paid to PhytoMedical, subject to payments due Dartmouth per Sections 5.01(a) and (c).  In any action to enforce Dartmouth Patent Rights, either party, at the request and expense of the other party shall cooperate to the fullest extent reasonably possible.  PhytoMedical may not settle any infringement action in any way detrimental to Dartmouth Patent Rights without the expressed written consent of Dartmouth.

 

 

ARTICLE IX.  Duration and Termination

 

Section 9.01  Term.  This Agreement shall become effective upon the date first written above, and unless sooner terminated in accordance with any of the provisions herein, shall remain in full force during the life of the last to expire patents under Dartmouth Patent Rights contemplated by this agreement in the last to expire territory.  If mutually desired, the parties may negotiate for an extension of this License.  Upon the termination of the Agreement PhytoMedical shall have the right to sell the remainder of the Licensed Product on hand, provided the sales will be subject to the royalty payments of this Agreement.

 

Section 9.02  Termination - Breach.  In the event that either party defaults or breaches any of the provisions of this Agreement, the other party shall have the right to terminate this Agreement by giving written notice to the defaulting party, provided, however, that if the said defaulting party cures said default within thirty (30) days after said notice shall have been given, this Agreement shall continue in full force and effect.  The failure on the part of either of the parties hereto to exercise or enforce any right conferred upon it hereunder shall not be deemed to be a waiver of any such right nor operate to bar the exercise or enforcement thereof at any time or times thereafter.

 

Section 9.03  Insolvency. In the event that PhytoMedical shall become insolvent, shall make an assignment for the benefit of creditors, or shall have a petition in bankruptcy filed for or against it, the Agreement shall terminate.

 

Section 9.04   Prior Obligations and Survivability.  Termination of this Agreement for any reason shall not release either party from any obligation theretofore accrued. Sections 3.03, 5.01 – 5.03, 7.01 – 7.03, 10.01 – 10.09 shall survive the termination of this Agreement.

 

ARTICLE X.  Miscellaneous

 

Section 10.01  Governing Law.  This Agreement shall be construed, governed, interpreted and enforced according to the laws of the State of New Hampshire.

 

Section 10.02  Notices.  Any notice or communication required or permitted to be given by either party hereunder, shall be deemed sufficiently given, if mailed by certified mail, return receipt requested, and addressed to the party to whom notice is given as follows: 

 

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If to PhytoMedical, to:

Greg Wujek, President, CEO

PhytoMedical Technologies, Inc.

100 Overlook Drive, 2nd Floor

Princeton, NJ 08540

 

 

 

If to Dartmouth, to:

Alla Kan

Director

Technology Transfer Office

Dartmouth College

11 Rope Ferry Road

Hanover, NH  03755

 

 

 

Section 10.03.  Assignment. Neither party shall assign or transfer this Agreement without the express prior written consent of the other.  For purposes of this Agreement, an assignment or transfer of this Agreement by PHYTOMEDICAL shall be deemed to occur in connection with (a) an express assignment or transfer, (b) a general assignment for the benefit of creditors or in connection with any bankruptcy or other debtor relief law, (c) any merger or consolidation to which PHYTOMEDICAL is a party, regardless of whether PHYTOMEDICAL is the surviving corporation, or (d) any other transaction pursuant to which a change would occur in the "ultimate parent entity" of PHYTOMEDICAL, applying the rules in effect from time to time under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 

Section 10.04  Entire Agreement.  This Agreement represents the entire Agreement between the parties as of the effective date hereof, and may only be subsequently altered or modified by an instrument in writing.  This agreement cancels and supersedes any and all prior oral or written agreements between the parties which relate to the subject matter of this Agreement.

 

Section 10.05  Mediation and Arbitration.  Both parties agree that they shall attempt to resolve any dispute arising from this Agreement through mediation.  Both parties agree that at least one employee, capable of negotiating an agreement on behalf of his employer, shall, within three weeks of receipt of written notification of a dispute, meet with at least one employee of the other party who is also capable of negotiating an agreement on behalf of his employer. If no agreement can be reached, both parties agree to meet again within a four week period after the initial meeting to negotiate in good faith to resolve the dispute.  If no agreement can be reached after this second meeting, both parties agree to submit the dispute to binding arbitration under the Rules of the American Arbitration Association before a single arbitrator.

 

Section 10.06  Waiver.  A failure by one of the parties to this Agreement to assert its rights for or upon any breach or default of this Agreement shall not be deemed a waiver of such rights nor shall any such waiver be implied from acceptance of any payment.  No such failure or waiver in writing by any one of the parties hereto with respect to any rights, shall extend to or affect any subsequent breach or impair any right consequent thereon.

 

 

Section 10.07  Severability.  The parties agree that it is the intention of neither party to violate any public policy, statutory or common laws, and governmental or supranational regulations; that if any sentence, paragraph, clause or combination of the same is in violation of any applicable law or regulation, or is unenforceable or void for any reason whatsoever, such sentence, paragraph, clause or combinations of the same shall be inoperative and the remainder of the Agreement shall remain binding upon the parties.

 

Section 10.08  Marking.  PhytoMedical agrees to mark the Licensed Products with all applicable trademarks, and patent numbers.

 

Section 10.09  Headings.  The headings of the paragraphs of this Agree-ment are inserted for convenience only and shall not constitute a part hereof.

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement, in duplicate originals, by their respective officers hereunto duly authorized, the day and year herein written.

 

 

                                                                                                                      THE TRUSTEES OF DARTMOUTH COLLEGE

                                                                                                                                      

                                                                                                                                      

                                                                                                                                     By_________________________

                                                                                                                                      

                                                                                                                                      

                                                                                                                                     Date____________________

                                                                                                                                      

                                                                                                                                     Name

                                                                                                                                     Title

                                                                                                                                      

                                                                                                                                      

                                                                                                                      PHYTOMEDICAL TECHNOLOGIES, INC

                                                                                                                                      

                                                                                                                                      

                                                                                                                                     By_________________________

                                                                                                                                      

                                                                                                                                      

                                                                                                                                     Date_____________________

                                                                                                                                      

                                                                                                                                     Name

                                                                                                                                     Title

 

 

8ex1060.htm - Generated by SEC Publisher for SEC Filing

Exhibit 10.6

 

DARTMOUTH - PHYTOMEDICAL TECHNOLOGIES RESEARCH AGREEMENT

 

 

This Agreement, effective this 1st day of June 2007, between

 

TRUSTEES OF DARTMOUTH COLLEGE, a non-profit educational institution existing under the laws of the State of New Hampshire, and being located at Hanover, New Hampshire 03755, hereinafter called Dartmouth, and PHYTOMEDICAL TECHNOLOGIES INC., a corporation of the State of Nevada, with a principal place of business at 100 Overlook Dr., 2nd Flr., Princeton, NJ 08540, hereinafter called PHYTOMEDICAL.

 

WHEREAS, Dartmouth under the direction of Principal Investigator Gordon Gribble, Ph.D., wishes to further research and development for anti-tumor bis-acridines, as described in the Research Plan (Attachment B); and

 

WHEREAS, PHYTOMEDICAL wishes to sponsor such research under the terms and conditions hereinafter set forth;

 

NOW THEREFORE, in consideration of the premises and the faithful performance of the covenants herein contained, IT IS AGREED:

 

Section 1.  Affiliate.  "Affiliate" shall mean a legal entity at least 50% of the voting stock of which is owned directly or indirectly by PHYTOMEDICAL.

 

Section 2.  Agreement.  "Agreement" shall mean this Research Agreement.

 

Section 3.  Effective Date.  "Effective Date" shall mean the date first written above and shall be the Effective Date of this Agreement.

 

Section 4. Dartmouth Pre-existing Know-How.  “Dartmouth Pre-existing Know-How” shall mean the ideas, methods, inventions, improvements, characterization and techniques developed by Dartmouth prior to this agreement relating the US Patent 6,187,787 issued February 13, 2001 to Dartmouth College; "Bis(9-Aminoacridine) DNA Intercalating Agents Having Antitumor Activity.")

 

Section 5.  Dartmouth Know-How.  "Dartmouth Know-How" shall mean the ideas, methods, inventions, improvements, characterization and techniques hereinafter developed by Dartmouth relating to anti-tumor bis-acridines, pursuant to the terms of this agreement.

 

Section 6.   Dartmouth Pre-existing Patent Rights.  “Dartmouth Pre-existing Patent Rights” shall mean the US Patent 6,187,787 issued February 13, 2001 to Dartmouth College; "Bis (9-Aminoacridine) DNA Intercalating Agents Having Antitumor Activity").

 

Section 7.  Dartmouth Patent Rights.  "Dartmouth Patent Rights" shall mean any United States or foreign patent applications and any United States Patent issuing from such applications, and any continuations, continuations-in-part, divisions, reissues, reexaminations or extensions thereof, owned or assignable to Dartmouth, containing one or more claims based upon Dartmouth Know–How.

 

Section 8.  Joint Patent Rights.  "Joint Patent Rights" shall mean any United States or foreign patent applications and any United States Patent issuing from such applications, and any continuations, continuations-in-part, divisions, reissues, reexaminations or extensions thereof, owned or assignable to Dartmouth and PHYTOMEDICAL, containing one or more claims based upon joint inventions.  

 

Section 9.  Contract Period.  The "Contract Period" shall mean the period commencing on the Effective Date and ending one year from such Effective Date.

 

Section 10.  Research Support.  PHYTOMEDICAL shall provide research support to  

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 Dartmouth for laboratory research at a level of $45,500 for the Contract Period in accordance with the attached budget, which makes up Attachment A, and the attached Research Plan which makes up Attachment B.   Dartmouth shall have the flexibility to rebudget the funds as necessary during the Contract Period so as to provide the Principal Investigator the opportunity to use the funds as he deems most reasonable, provided that the funds are used within the scope of the Research Plan.  Dartmouth shall use reasonable efforts to perform the research as described in the Research Plan.

 

Section 11.  Inventions.  All inventions arising during the conduct of the Research Plan, conceived solely by Dartmouth inventors, shall be assigned to Dartmouth, and all inventions conceived solely by the PHYTOMEDICAL inventors shall be assigned to PHYTOMEDICAL.  For inventions that are conceived jointly by Dartmouth and PHYTOMEDICAL inventors, Dartmouth and PHYTOMEDICAL will hold joint title.

 

Section 12.  License Rights to Pre-existing Patent Rights.  Dartmouth hereby grants PHYTOMEDICAL the option of a world-wide, royalty-bearing exclusive license under Dartmouth Pre-existing Patent Rights and Dartmouth Pre-existing Know-How to make, have made, use and sell in the field of oncology-,) the products embodying or produced through the use of Dartmouth’s Patent Rights, at reasonable terms and condition as the parties may agree.  PHYTOMEDICAL shall have forty five (45) days after the expiration of the Contract Period to exercise this option.  If within ninety (90) days from the option exercise after good faith negotiations parties fail to reach an agreement on the license terms, or if PHYTOMEDICAL decides to forgo the option, Dartmouth shall be free to offer commercial license rights to any third party or to dispose of its inventions or other rights resulting therefrom in any other way it deems appropriate.

 

Section 13.  Patents and Patent Expenses for Pre-existing Patent Rights.  PHYTOMEDICAL will reimburse Dartmouth for all costs associated with obtaining and maintaining Dartmouth Pre-existing Patent Rights, which are to date: $12,578.02.  Provided, however, if PHYTOMEDICAL decides not to license Dartmouth Pre-existing Patent Rights, PHYTOMEDICAL shall have no obligation to reimburse Dartmouth for such costs and in such event the option granted under Section 12 to PHYTOMEDICAL by Dartmouth shall lapse in respect to the Dartmouth Pre-existing Patent Rights for which PHYTOMEDICAL declines to reimburse the cost to Dartmouth.

 

  Section 14.  License Rights to Patent Rights.  Dartmouth hereby grants PHYTOMEDICAL the option  of a world-wide, royalty-bearing exclusive license under Dartmouth Patent Rights, and Dartmouth Know-How, and Joint Patent Rights, to make, have made, use and sell in the field of oncology) the products embodying or produced through the use of Dartmouth's or joint inventions, at reasonable terms and conditions as the parties may agree, which, in the case of ongoing royalties, will not exceed 3% of net sales, and, in the case of a one time license fee, not to exceed $15,000;  except to the extent of any rights required to be granted to the Government of the United States of America pursuant to 35 U.S.C. §§200-211.  PHYTOMEDICAL shall have forty five (45) days after the expiration of the Contract Period to exercise this option.  If within ninety (90) days from the option exercise after good faith negotiations parties fail to reach an agreement on the license terms, or if PHYTOMEDICAL decides to forgo the option, Dartmouth shall be free to offer commercial license rights to any third party or to dispose of its inventions or other rights resulting therefrom in any other way it deems appropriate.

 

Section 15. Patents and Patent Expenses for Patent Rights. PHYTOMEDICAL will reimburse Dartmouth for all costs associated with obtaining and maintaining Dartmouth Patent Rights.  Provided, however, if PHYTOMEDICAL decides that it is not appropriate to apply for Dartmouth Patent Rights, PHYTOMEDICAL shall have no obligation to reimburse Dartmouth for such costs and in such event the option granted under Section 14 to PHYTOMEDICAL by Dartmouth shall lapse in respect to the Dartmouth Patent Rights for which PHYTOMEDICAL declines to reimburse the cost to Dartmouth.  Dartmouth shall also have the right to obtain patent protection on its own and at its own expense for Joint Patent Rights in the names of Dartmouth and PHYTOMEDICAL in case PHYTOMEDICAL decides not to support such filings, in which event the option granted under Section 14 to PHYTOMEDICAL by Dartmouth shall lapse in respect to Dartmouth's rights under Joint Patent Rights.

2

 

Section 16.  Mutual Confidentiality.   PHYTOMEDICAL and Dartmouth realize that some information received by one party from the other pursuant to this Agreement shall be confidential.  Any information disclosed by either party and requiring confidential treatment shall be identified in writing as confidential or, if disclosed orally or visually, shall be summarized and confirmed in writing as confidential within 30 days of such disclosure and shall be maintained in secrecy by the receiving party. Any failure by disclosing party to identify orally disclosed information as confidential in writing shall not relieve the receiving party of its obligations under this Agreement. Each party shall use all reasonable measures to prevent disclosure of information, except to their own personnel who have a need to know and such information shall not be used by either party for purposes other than those contemplated by this Agreement for a period of three (3) years from the termination of the Agreement, unless or until --

 

(a)

said information shall become known to third parties or shall become publicly known through no fault of the receiving party, or

 

(b)

said information was already in the receiving party's possession prior to the disclosure of said information to the receiving party, or

 

(c)

said information shall be subsequently disclosed to the receiving party by a third party who is not under any obligation of confidentiality to the disclosing party, or

 

(d)

said information is approved for disclosure by prior written consent of the disclosing party, or

 

(e)

said information is required to be disclosed by court rule or governmental law or regulation, provided that the receiving party gives the disclosing party prompt notice of any  such requirement and cooperates with the disclosing party in attempting to limit such disclosure, or

 

(f)

said information is proven independently developed by the receiving party without recourse or access to the information.

 

Section 17.  Corporate Action.  Dartmouth and PHYTOMEDICAL each represent and warrant to the other party that they have full power and authority to enter into this Agreement and carry out the transactions contemplated hereby and that all necessary corporate action had been duly taken in this regard.

   

Section 18.  Payments. For the rights and privileges granted under this Agreement, PHYTOMEDICAL shall pay to Dartmouth research support as defined in Section 8, to be paid in quarterly payments, the first to be due upon execution of this Agreement and every three month's thereafter.  Payments will be due within 30 days of PHYTOMEDICAL's receipt of Dartmouth's invoice

 

Section 19.  Reports.  Dartmouth shall furnish PHYTOMEDICAL with quarterly reports during the term of this Agreement summarizing the research conducted in accordance with the Research Plan.  A final written report stating the accomplishments and significant research findings shall be submitted to PHYTOMEDICAL within 90 days of the expiration of this Agreement.

 

Section 20.  Publications.  Dartmouth retains the rights to report on the results of research under this Agreement in professional journals, meetings, seminars, and the like.  Appropriate recognition of PHYTOMEDICAL's support will be included in all such reports.  However, in recognition of PHYTOMEDICAL's desire for patent protection, Dartmouth shall provide  

3

 PHYTOMEDICAL with the final draft of any manuscript describing studies within the pertinent field and resulting from the sponsored research at least thirty (30) days prior to publication.

 

Section 21.  Use of Name.  PHYTOMEDICAL shall not use and shall not permit to be used by any other person or entity the name of Dartmouth,  nor any adaptation thereof, or the name of Dartmouth's employees, in any advertising, promotional or sales literature, or for any other purpose without prior written permission of Dartmouth. Dartmouth acknowledges that PHYTOMEDICAL is a corporation having a reporting obligation under the Securities Exchange Act of 1934, as amended, which has or may have certain disclosure and filing obligations under applicable law, including but not limited to the public announcement and disclosure of this Agreement and the filing of the same with the United States Securities and Exchange Commission; it is acknowledged and agreed that such disclosure and filing shall not be deemed a violation of this Agreement.

 

Section 22.  Indemnity.  PHYTOMEDICAL shall defend and indemnify and hold Dartmouth its trustees, employees, officers and agents harmless for any judgments and other liabilities based upon claims or causes of action against Dartmouth or its employees which arise out of (i) the design, production, manufacture, sale, use in commerce, lease or promotion by PHYTOMEDICAL, its Affiliates and Licensees, affiliates or agents of PHYTOMEDICAL of any product, process or service relating to, or developed pursuant to, this Agreement or (ii) any other activities to be carried out pursuant to this Agreement, except to the extent that such judgments or liabilities arise in whole or in part from the gross negligence or willful misconduct of Dartmouth or its employees, provided that Dartmouth promptly notifies PHYTOMEDICAL of any such claim coming to its attention and that it cooperates with PHYTOMEDICAL in the defense of such claim.  If any such claims or causes of action are made, Dartmouth shall be defended by counsel to PHYTOMEDICAL, subject to Dartmouth's approval, which shall not be unreasonably withheld.

 

DARTMOUTH MAKES NO WARRANTIES, EXPRESS OR IMPLIED, CONCERNING THE RESULTS OF RESEARCH PERFORMED UNDER THE RESEARCH PLAN OR OF THE MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF SUCH RESEARCH OR RESULTS

 

 

Section 23.  Termination.  Performance under this Agreement may be terminated by PHYTOMEDICAL upon sixty (60) days written notice; performance may be terminated by Dartmouth if circumstances beyond its control preclude continuation of the research.  Upon termination, Dartmouth will be reimbursed as specified in Section 14 for all costs and non-cancellable commitments incurred in the performance of the research, such reimbursement not to exceed the total estimated project cost specified in Section 8.

 

Section 24.  Prior Obligations.  Termination of this Agreement for any reason shall not release either party from any obligation theretofore accrued.

 

Section 25.  Governing Law.  This Agreement shall be construed, governed, interpreted and enforced according to the laws of the State of New Hampshire.

 

Section 26.  Notices.  Any notice or communication required or permitted to be given by either party hereunder, shall be deemed sufficiently given, if mailed by certified mail, return receipt requested, and addressed to the party to whom notice is given as follows:

 

If to PHYTOMEDICAL, to:

Greg Wujek, President, CEO

PhytoMedical Technologies

100 Overlook Drive, 2nd Floor

Princeton, N.J. 08540

-------------------

If to Dartmouth, to:

 

Alla Kan, Director

Technology Transfer Office

Dartmouth College

4

11 Rope Ferry Road, #6210

Hanover, New Hampshire 03755-1404

                                

Section 27.  Assignment.  This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto.  However, PHYTOMEDICAL may not assign this Agreement in whole or in part without the written consent of Dartmouth.

 

Section 28.  Entire Agreement.  This Agreement represents the entire Agreement between the parties as of the Effective Date hereof and may only be subsequently altered or modified by an instrument in writing.  This Agreement cancels and supersedes any and all prior agreements between the parties which relate to the subject matter of this Agreement.

 

Section 29.  Waiver.  A failure by one of the parties to this Agreement to assert its rights for or upon any breach or default of this Agreement shall not be deemed a waiver of such rights nor shall any such waiver be implied from acceptance of any payment.  No such failure or waiver in writing by any one of the parties hereto with respect to any rights, shall extend to or affect any subsequent breach or impair any right consequent thereon.

Section 30.  Severability.  The parties agree that it is the intention of neither party to violate any public policy, statutory or common laws, and governmental or supranational regulations; that if any sentence, paragraph, clause or combination of the same is in violation of any applicable law or regulation, or is unenforceable or void for any reason whatsoever, such sentence, paragraph, clause or combinations of the same shall be inoperative and the remainder of the Agreement shall remain binding upon the parties.

 

Section 31.  Mediation and Arbitration.  Both parties agree that they shall attempt to resolve any dispute arising from this Agreement through mediation.  Both parties agree that at least one company employee, capable of negotiating an agreement on behalf of his company, shall, within three weeks of receipt of written notification of a dispute, meet with at least one employee of the other party who is also capable of negotiating an agreement on behalf of his company. If no agreement can be reached, both parties agree to meet again within a four week period after the initial meeting to negotiate in good faith to resolve the dispute.  If no agreement can be reached after this second meeting, both parties agree to submit the dispute to binding arbitration under the Rules of the American Arbitration Association before a single arbitrator.

 

Section 32.  Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not constitute a part hereof.

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, in duplicate originals, by their respective officers hereunto duly authorized, the day and year herein written.

 

 

 

THE TRUSTEES OF DARTMOUTH COLLEGE

 

 By /s/ Alla Kan

        Name:  Alla Kan

Title:  Director

 

Date  May 15, 2007

       

 

PHYTOMEDICAL TECHNOLOGIES, INC.

 

By /s/ Greg Wujek

Name:  Greg Wujek

5

Title:  President, CEO

 

Date  May 25, 2007

ATTACHMENT A:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Year 1

	
 

	
WAGES / FRINGE

	
 

	
 

	
 

	
PI - Gribble

	
 

	
 

	
 

	
wages

	
 

	
 

	
 $               2,231.25

	
 

	
fringe

	
 

	
 

	
 $                  859.03

	
38.50%

	
TOTAL WAGES/FRINGE

	
 $               3,090.28

	
 

	
wages/fringe indirects

	
 

	
 $                         -   

	
0.00%

	
 

	
 

	
 

	
 

	
 

	
Asking for 1 half week

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Research Assoc B

	
 

	
 

	
 

	
wages

	
 

	
 

	
 $             32,000.00

	
 

	
fringe

	
 

	
 

	
 $               7,840.00

	
24.50%

	
TOTAL WAGES/FRINGE

	
 $             39,840.00

	
 

	
wages/fringe indirects

	
 

	
 $                         -   

	
0.00%

	
 

	
 

	
 

	
 

	
 

	
Asking for 100%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TOTAL WAGES

	
 

	
 $             34,231.25

	
 

	
TOTAL FRINGE

	
 

	
 $               8,699.03

	
 

	
TOTAL WAGES/FRINGE

	
 

	
 $             42,930.28

	
 

	
TOTAL IDCS

	
 

	
 $                         -   

	
0.00%

	
 

	
 

	
 

	
 

	
 

	
EQUIPMENT

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TOTAL EQUIPMENT

	
 

	
 

	
 

	
NO IDCS ON CAPITAL EQUIPMENT

	
 $                         -   

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TRAVEL

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TOTAL TRAVEL

	
 

	
 $                         -   

	
 

	
IDCS ON TRAVEL

	
 

	
 $                         -   

	
0.00%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
MATERIALS AND SUPPLIES

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
chemicals, solvents, expendables

	
 $                  569.72

	
 

 

 

6

 

 

	
 

	
 

	
 

	
 

	
 

	
glassware

	
 

	
 

	
 $                  500.00

	
 

	
chromatographic

	
 

	
 $                  500.00

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TOTAL SUPPLIES

	
 

	
 $               1,569.72

	
 

	
IDCS ON SUPPLIES

	
 

	
 $                         -   

	
0.00%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
OTHER

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NMR & Mass Spectrometry fees

	
 $               1,000.00

	
 

	
TOTAL OTHER

	
 

	
 $               1,000.00

	
 

	
 IDCS ON OTHER

	
 

	
 $                         -   

	
0.00%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
PROJECT TOTALS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TOTAL  DIRECTS

	
 

	
 $             45,500.00

	
 

	
 

	
 

	
 

	
 

	
 

	
TOTAL INDIRECTS

	
 

	
 $                         -   

	
 

	
 

	
 

	
 

	
 

	
 

	
PROJECT TOTALS

	
 

	
 $             45,500.00

	
 

	
 $                   45,500.00

	
 

	
 

	
 

 

7

ATTACHMENT B:

 

 

Sponsored Research Agreement with PhytoMedical Technologies

 

Statement of Work

 

“Synthesis and Testing of Novel Bis-Acridine Antitumor Compounds”

 

The work at Dartmouth College will involve the chemical synthesis of novel bis-acridines for cancer testing and evaluation.  Following the preparation of starting materials, the Research Associate and the Principal Investigator will design and synthesize new examples of bis-acridines that are tethered with both flexible and semi-rigid linking chains, following the initial leads published in the relevant Dartmouth patent.  The compounds will be submitted to PhytoMedical for evaluation in human cancer cell lines in vitro and in vivo.

 

 

 

8

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