Document:

Amendment No. 1, effective September 21, 2009

 Exhibit 10.2 
 [********] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. 
 August 31, 2009 
 USF Research Foundation, Inc. 
 Attention: Business
Manager 
 USF Box 30445 
 Tampa,
Florida 33620-3044 
  

	 	Re:	Amendment No. 1 to Amended and Restated License Agreement (this “Amendment”) 

 Ladies and Gentlemen: 
 Reference
is made to the Amended and Restated License Agreement between Targacept, Inc. (“Targacept”) and University of South Florida Research Foundation, Inc. (“USFRF”) dated March 9, 2004 (the
“Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Agreement. 
 Paragraph 16.2 of the Agreement provides that the Agreement shall not be subject to any change or modification except by the execution of a written instrument signed by Targacept and USFRF, and each of
Targacept and USFRF desires to amend the Agreement as provided herein. Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Targacept and USFRF agree as follows: 
 1. the Agreement is hereby amended by: 
 a. adding the following new Paragraph 1.17A: 
 “1.17A “Sublicense Agreement” means any agreement,
however characterized, pursuant to which LICENSEE grants a sublicense to any or all of the Patent Rights to a third party.”; 
 b. deleting the text of Paragraph 1.18 in its entirety and replacing it with the following: 
 ““Sublicense
Fees” shall mean any fees (including the fair market value of any consideration paid other than in cash) received by LICENSEE from a sublicensee for a sublicense of Patent Rights, excluding (i) royalties on the sale or lease of Licensed
Products, (ii) amounts received that are specifically allocated to research and development for, or to the manufacture or supply of, a Licensed Product or Licensed Process, (iii) amounts received that LICENSEE is required to repay (e.g., a
loan), (iv) amounts received in exchange for securities of LICENSEE or any of its affiliates (not to exceed the fair market value of such securities), and (v) amounts received as reimbursement for the costs or expenses of filing,
prosecuting or maintaining the Patent Rights (but limited to costs and expenses incurred after the effective date of the applicable Sublicense Agreement). For clarity, amounts received based on the achievement by LICENSEE or its sublicensee of
specified development events, regulatory events or sales milestones for Licensed Products are Sublicense Fees. For further clarity, and notwithstanding anything in this Agreement to the contrary, Sublicense Fees do not include any payment received
by LICENSEE from a sublicensee that is not for a sublicense of Patent Rights. 
 c. renumbering the second Paragraph 2.7 as
Paragraph 2.8. 

 d. deleting the text of Paragraph 3.1 in its entirety and replacing it with the following:

 “LICENSEE shall use commercially reasonable efforts (either alone or through research collaborations or alliances with
research organizations, pharmaceutical companies or other third parties) to market and sell, or to develop, one or more Licensed Products or Licensed Processes through a diligent program for exploitation of the Patent Rights, and LICENSEE’s
uncured failure to use such efforts shall be grounds for RESEARCH FOUNDATION to terminate this Agreement pursuant to Paragraph 13.3. Without limiting the generality of the foregoing, until the NDA Filing Date, LICENSEE (together with any
sublicensees) shall: (i) spend a minimum of [********] related to research and development of one or more Licensed Products; provided that, for the avoidance of doubt, any or all of such amount may [********]; and (ii) deliver to RESEARCH
FOUNDATION, at least annually, a brief report summarizing its research and development activities completed since the last report, research and development activities currently in process, planned future research and development activities and
research and development work being performed by third parties. If RESEARCH FOUNDATION believes LICENSEE is failing to comply with its obligations under this Paragraph 3.1, RESEARCH FOUNDATION may send notice to the LICENSEE asserting such belief
and the basis therefor. LICENSEE shall have sixty (60) days from its receipt of such notice either to (i) commence compliance with its obligations under this Paragraph 3.1 to RESEARCH FOUNDATION’s reasonable satisfaction or
(ii) send notice to RESEARCH FOUNDATION requesting that such issue be resolved in accordance with Article XII, in which case the procedures set forth in Article XII shall be followed.” 
 e. deleting the text of clause (1) of Paragraph 4.1(b) in its entirety and replacing it with the following: 
 “the obligations in this Paragraph 4.1(b) shall expire with respect to Net Sales of a particular Licensed Product in a particular
country on the date of expiration of the last-to-expire patent included in the Patent Rights that includes at least one (1) Valid Claim covering, in whole or in part, such Licensed Product in such country;” 
 f. deleting the text of Paragraph 3.2 in its entirety and replacing it with “Reserved”: 
 g. deleting the text of Paragraph 13.6 in its entirety and replacing it with the following: 
 “If not earlier terminated, this Agreement shall terminate on the date of expiration of the last-to-expire patent included in the
Patent Rights that includes at least one (1) Valid Claim covering, in whole or in part, a Licensed Product, and LICENSEE shall thereupon have the rights and licenses set forth in Paragraphs 2.1(a) and 2.4 without any further obligation to
RESEARCH FOUNDATION hereunder, which rights and licenses shall survive such termination.” 
 2. All of the terms and conditions of the
Agreement not expressly amended hereby shall continue in full force and effect. 
 3. This Amendment may be executed in multiple counterparts
(which may be exchanged by facsimile or PDF with the same legal effect as if exchanged manually), each of which shall be deemed an original and all of which, taken together, shall be deemed a single instrument. 
 [continues on next page] 

 Please indicate your acknowledgment of, and agreement with, the foregoing by executing the
duplicate copies of this Amendment and returning one fully-executed original to my attention. 
  

			
	Sincerely,
	
	TARGACEPT, INC.
		
	By:	 	 /s/ Jeffrey P. Brennan

		 	 Jeffrey P. Brennan

		 	 Vice President, Business and Commercial Development

 Acknowledged and agreed: 
  

							
	UNIVERSITY OF SOUTH FLORIDA RESEARCH FOUNDATION, INC.
				
	By:	 	 /s/ Rod Casto
	 		 	Date: 9/21/09
		 	 Name: Rod Casto, PhD
	 		 	
		 	 Title: Corporate Secretary
	 		 	
			
	UNIVERSITY OF SOUTH FLORIDA	 		 	
				
	By:	 	 /s/ Valerie Landrio McDevitt
	 		 	Date: 9/2/09
		 	 Name: Valerie Landrio McDevitt
	 		 	
		 	 Title: Assistant Vice President, Division of Patents & Licensing
	 		 	
				
	By:	 	 /s/ Diego Vazquez
	 		 	Date: 9/2/09
		 	 Name: Diego Vazquez
	 		 	
		 	 Title: Interim Associate Vice PresidentLetter Agreement dated October 15, 2009

 EXHIBIT 10.1 
 October 15, 2009 
 Mr. William E. Ford 
 ***FISMA & OMB Memorandum M-07-16***. 
 Dear Mr. Ford, 
 As we have discussed, on December 11, 2008, NYSE Euronext (the “Company”) erroneously credited
13,251 shares (the “Shares”) of its common stock to an account in your name at the Company’s transfer agent. Because the Company was not yet legally or contractually authorized to deliver the Shares to you, and you were not legally or
contractually entitled to receive the Shares until after your April 2, 2009 retirement from the board of directors of the Company, on May 28, 2009 the Company requested that you return the Shares together with funds in the amount of
$2,140, representing interest accrued on the value of the Shares as of December 31, 2008.1 You returned the Shares to the Company on June 5, 2009 along with funds in the amount of $2,140. Because of your retirement from the board of directors of the Company on April 2, 2009, the
Company re-delivered the Shares to you on June 10, 2009, in accordance with the terms of your RSU agreement. 
 We have agreed that, unless
you are advised by your tax advisor that it is not necessary to do so, based on changes in applicable law or understanding of facts occurring after the date of this letter, you are required to report receipt of the Shares on your federal income tax
return for the year ended December 31, 2008 and pay to the Internal Revenue Service (the “Service”) the tax imposed by Section 409A of the Internal Revenue Code (the “Code”) in respect of receipt of the Shares on
December 11, 2008 (such tax, including the incremental federal and state income tax and employment taxes resulting from the inclusion of the value of the Shares in your gross income in 2008 and the 20% tax imposed by
Section 409A(a)(1)(B)(i)(II) of the Code, based upon the value of the Shares as of December 31, 2008 and excluding the premium interest tax under Section 409A(a)(1)(B)(ii) of the Code, the “409A Tax”). For the purpose of
calculating the 409A Tax, the amount of gross income attributable to the receipt of the Shares will be $363,077, and the 20% tax will be 20% of that amount, or $72,615.40. The Company has sent you a Form 1099 for the year 2008. 
 The Company agrees to reimburse you promptly upon request for (i) the 409A Tax that you pay in respect of the Shares for the year ended
December 31, 2008, together with (ii) any legal or accounting expenses (including without limitation fees and expenses relating to future audits) reasonably incurred by you in connection with the matters herein discussed and
(iii) such additional amounts that are necessary so that the net amount that you receive after the payment of all federal and state taxes (including without limitation income and employment taxes) in respect of amounts referred to in clauses
(i), (ii) and (iii) equals the amounts referred to in clauses (i) and (ii). 
 In return, you agree that, in light of the fact
that you returned the Shares to the Company on June 5, 2009, upon request of the Company not later than March 31, 2010, which request you agree not to unreasonably deny, when you file your federal income tax return for the year ending
December 31, 2009 (your “2009 Tax Return”), pursuant to Section 1341 of the Code you will claim a credit for the 409A Tax paid in respect of the Shares for the year ended December 31, 2008 (and include a disclosure with
respect to the claim if your tax adviser considers it appropriate to do so), and you agree to reimburse the Company for (i) the amount of such credit (to the extent not disallowed by the Service) promptly after filing your 2009 Tax Return,
unless you are advised by your tax advisor that there is more than an insignificant risk that the Service will disallow such credit in whole or in part, in which case promptly at the earlier of (x) the time such credit (to the extent not
disallowed) becomes no longer subject to disallowance by the Service and (y) the time you are advised by your tax advisor that there is no longer more than an insignificant risk that the Service will disallow such credit, together with
(ii) the after-tax interest that you would have earned had you deposited the amount of such credit (to the extent not disallowed) in your regular bank savings account on the day you file your 2009 Tax Return and (iii) such additional
amounts so that, after taking into account the deductibility of the amounts referred to in clauses (i), (ii) and (iii) for federal and state income tax purposes, the effective net amount you pay to the Company under clauses (i),
(ii) and (iii) equals the amount referred to in clauses (i) and (ii). 
 In addition, you agree that if the Service modifies its
policy to permit a refund of the 409A Tax that you pay (and for which we reimburse you) in respect of the Shares for the year ended December 31, 2008, then at the Company’s request, which you agree not to unreasonably deny, you will claim
the refund, for federal and state purposes, for the year ended December 31, 2008 rather than the year ending December 31, 2009 and then reimburse the Company for (i) the amount of such refund (including any interest), to the extent
received, promptly at the time of receipt, together with (ii) such additional amounts so that, after taking into account the deductibility of the amounts referred to in clauses (i) and (ii) for federal and state income tax purposes,
the effective net amount you pay to the Company equals the amount referred to in clause (i). 
 If, in connection with the filing of your 2009
tax return, you or your advisor conclude it would be unreasonable to claim a credit for the 409A Tax paid in respect of the Shares for the year ended December 31, 2008, you will make arrangements for us to discuss the matter with your tax
advisor prior to your filing of such return and will provide us with adequate time to do so, and you agree to provide us with such documentation as we reasonably request in order to substantiate any potential reimbursements contemplated hereunder.

 The Company agrees to reimburse you on an after-tax basis for any additional taxes and interest and penalties thereon, including without
limitation interest and penalties arising from an underpayment of tax at such time as you filed for an extension of your 2008 tax return, to the extent that such underpayment is attributable to not taking into account your receipt of the Shares in
2008 and/or the 409A Tax (together with reasonable expenses) imposed by the Service in respect of or relating to your receipt of the Shares on December 11, 2008, or the method of Section 409A correction or Section 1341 mitigation
described in this letter, provided that you give prompt notice to the Company of any such imposition, and assertion thereof, so that the Company may contest it. We acknowledge that you may incur penalties in connection with tax payments due (either
actual or estimated) in connection with the exclusion of such amounts as described herein from your filing of an extension of the April 15, 2009 tax return deadline. The Company will not contest these penalties. 
 Further, the Company agrees to reimburse you for (i) any additional taxes incurred in connection with your receipt of shares on June 10, 2009
which exceeds the tax you would have incurred had the shares been delivered to you on April 29, 2009, and (ii) $2,140, together with (iii) such additional amount so that the net amount that you receive after the payment of federal and
state income taxes in respect of amount referred to in clauses (i), (ii) and (iii) equals the amount referred to in clauses (i) and (ii), less (iv) $17,400, representing the agreed present value benefit to you of your increased
tax basis in the Shares for which you have been compensated under this agreement. 
 Finally, to the extent a refund of the Section 409A
Tax either is not claimed or is disallowed, you agree to pay promptly to the Company (i) the amount by which your 2009 federal and state taxes, including without limitation income and employment taxes, are reduced by reason of the payment of
such taxes for the 2008 tax year for which you have been compensated under this agreement, but excluding the benefit to you of your increased basis in the shares described in the preceding paragraph, together with (ii) such additional amounts
so that, after taking into account the deductibility of the amounts referred to in clauses (i) and (ii) for federal and state income tax purposes, the effective net amount you pay to the Company equals the amount referred to in clause (i).

  

	1	The interest amount was calculated at the rate of 1.36% on the value of the Shares as of December 31, 2008, $363,077, accrued through June 5, 2009.

 For purposes of determination of the amounts so payable under this agreement, whether to or by the Company,
you agree to provide to the Company with either (a) sufficient documentation (including tax returns) to enable the Company to make or confirm such determination, or (b) the statement of a nationally recognized accounting firm attesting to
the amount so due or payable under this agreement. References in this letter to “taxes” and “income taxes” are understood to include employment, self-employment and related taxes. 
 In the event that the Service challenges a position taken by you under the terms of this agreement, you authorize the Company to dispute the Service’s
challenge (but, in the event that you are in a contest regarding other matters in connection with your income tax return, only in the forum chosen by you), at the Company’s expense (including fees of your counsel relating to the matters
indemnified in this letter), with the understanding that such authorization will not extend to the commencement of tax litigation on your behalf. 
 Without your prior written consent, the Company hereby agrees to maintain the confidentiality of and not disclose to any person or entity any documentation provided or disclosed by you or your advisors pursuant to this agreement or any
other information concerning your and your family’s tax status, position and affairs, including, without limitation, tax returns (collectively, “Confidential Information”), provided that the Company may disclose your Confidential
Information to its advisors who have a need to know in order to enable the Company to perform its obligations under this agreement and who have either agreed in writing to maintain the confidentiality of the Confidential Information or are subject
to a privileged professional obligation to maintain the confidentiality of the Confidential Information (the “Representatives”). In the event that the Company Party or its Representatives becomes legally compelled to disclose any of the
Confidential Information, the Receiving Party will provide you with prompt written notice so that you may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this paragraph. In the event that such
protective order or other remedy is not obtained, or that you waive compliance with the provisions of this paragraph, the Company will cooperate with you to determine the portion of the Confidential Information that is required to be disclosed and
the Company will exercise its best efforts to attempt to obtain a protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information. 
 This agreement is binding upon the Company and its successors and assigns and upon you and your heirs, legal representatives, distributees, successors and assigns, and shall be construed in accordance
with the internal laws of the State of New York. 
 If the foregoing accurately reflects our agreement, please so indicate by signing the
enclosed counterpart hereof in the space indicated and returning the same to us, whereupon the agreements contained herein shall become binding on you and the Company. This agreement may be executed in counterparts. 
 Very truly yours, 
 NYSE EURONEXT 
  

			
		
	By:	 	/s/ Janet Kissane
		 	 Name: Janet Kissane
 Title:
SVP - Legal & Corporate Secretary

  

			
		
	Agreed:	 	/s/ William E. Ford
		 	William E. Ford

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