Document:

<PAGE>
                                                                     Exhibit 4.7

            Amendment to the Investor Rights Agreement dated as of
            February 27, 2004 (this "Amendment"), among Memory
            Pharmaceuticals Corp. and the investors set forth on
            the signature page hereto (the "Investors")
            ------------------------------------------------------

            A. The Company and the Investors entered into a Fourth Amended and
Restated Investor Rights Agreement dated as of September 11, 2003, as amended by
an Agreement dated as of December 18, 2003, among the Company, Dr. Eric Kandel
and the Investors (the "Investor Rights Agreement"). Capitalized terms used and
not otherwise defined herein shall have the meanings ascribed to such terms in
the Investor Rights Agreement.

            B. The Company and the Investors wish to amend the definition of
"Initial Public Offering" in the Investor Rights Agreement.

            C. Pursuant to Section 8.3 of the Investor Rights Agreement, this
Amendment requires the Company's consent and the consent in writing of holders
of at least two-thirds (2/3) of the outstanding shares of Preferred Stock.

            The Company and the Investors hereby agree as follows:

            1. Section 1.3 of the Investor Rights Agreement is hereby amended to
delete the definition of "Initial Public Offering" in its entirety and replace
it with the following:

            "Initial Public Offering" shall mean the closing of a firm
            commitment underwritten public offering pursuant to an effective
            registration statement under the Securities Act of 1933, as amended,
            covering the offer and sale of Common Stock for the account of the
            Company to the public at an initial public offering price per share
            of not less than $7.50 (such dollar amount being subject to
            equitable adjustment in the event of any stock dividend, stock
            split, combination, reorganization, recapitalization or similar
            event involving a change in the Common Stock) with net proceeds to
            the Company of not less than $25,000,000."

            2. Except as specifically amended by this Amendment, the Investor
Rights Agreement remains in full force and effect. Wherever the terms of this
Amendment and the Investor Rights Agreement conflict, this Amendment controls.
All references in the Investor Rights Agreement to "this Agreement" shall mean
the Investor Rights Agreement, as amended hereby.

            3. This Agreement may be executed in counterparts, which together
shall constitute one and the same instrument.
<PAGE>
      In witness whereof, the undersigned have executed this Amendment to the
Investor Rights Agreement as of the date first above written.

Company:                               Memory Pharmaceuticals Corp.

                                       By:/s/ Tony Scullion
                                          --------------------------------------
                                          Name:  Tony Scullion
                                          Title: Chief Executive Officer

Investors:                             Oxford Bioscience Partners II L.P.

                                       By: OBP Management II L.P.

                                       By:/s/ Jonathan J. Fleming
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Oxford Bioscience Partners (Bermuda) II
                                       Limited Partnership

                                       By: OBP Management II (Bermuda) Limited
                                       Partnership

                                       By:/s/ Jonathan J. Fleming
                                          --------------------------------------
                                          Name:
                                          Title:

                                      Oxford Bioscience Partners (Adjunct) II,
                                      L.P.

                                      By: OBP Management II L.P.

                                       By:/s/ Jonathan J. Fleming
                                          --------------------------------------
                                          Name:
                                          Title:
<PAGE>
                                       Oxford Bioscience Partners (GS-Adjunct)
                                       II, L.P.

                                       By: OBP Management II L.P.

                                       By:/s/ Jonathan J. Fleming
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Healthcare Ventures V L.P.

                                       By:/s/ Jeffrey Steinberg
                                          --------------------------------------
                                          Name:  Jeffrey Steinberg
                                          Title: Administrative Partner of
                                                 HealthCare Partners V, L.P.
                                                 The General Partner of
                                                 HealthCare Ventures V, L.P.

                                       Hudson Trust

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Venrock Associates

                                       By:/s/ Anthony Evnin
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Venrock Associates II, L.P.

                                       By:/s/ Anthony Evnin
                                          --------------------------------------
                                          Name:
                                          Title:
<PAGE>
                                       Alta Embarcadero Partners II LLC

                                       By:/s/ Alix Marduel
                                          --------------------------------------
                                          Name:
                                          Title:

                                       GLSLP Investment I Ltd.

                                       By:/s/ Christopher W. Cochrane
                                          --------------------------------------
                                          Name:  Christopher W. Cochrane
                                          Title: Authorized Signatory:
                                                 Nelson Representatives Limited

                                       S.R. One Limited

                                       By:/s/ Philip L. Smith
                                          --------------------------------------
                                          Name:  Philip L. Smith
                                          Title: General Partner

                                       Alexandria Real Estate Equities, L.P.,
                                          a Delaware limited partnership

                                       By: ARE-QRS Corp.,
                                          a Maryland general partner

                                       By:/s/ Peter T. Nelson
                                          --------------------------------------
                                          Name:  Peter T. Nelson
                                          Title: Chief Financial Officer

                                       Pharma/w Health

                                       By:/s/ Michael Sheffery
                                          --------------------------------------
                                          Name:  Michael Schffery
                                          Title: General Partner,
                                                 Orbimed Advisors, LLC
<PAGE>
                                       Finsbury Worldwide Pharmaceutical Trust

                                       By:/s/ Michael Sheffery
                                          --------------------------------------
                                          Name:  Michael Sheffery
                                          Title: General Partner,
                                                 Orbimed Advisors, LLC

                                       Eaton Vance Worldwide Health Sciences
                                       Portfolio

                                       By:/s/ Michael Sheffery
                                          --------------------------------------
                                          Name:  Michael Sheffery
                                          Title: General Partner,
                                                 Orbimed Advisors, LLC

                                       Artal Services N.V.

                                       By:/s/ Bernard Darimont
                                          --------------------------------------
                                          Name:  Bernard Darimont
                                          Title: Managing Director

                                       Venrock Entrepreneuers Fund, L.P.

                                       By:/s/ Anthony B. Evnin
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Medica II Investment (Israel), LP

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:
<PAGE>
                                       Medica II Investment (International), LP

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                      GIMV

/s/ Partick Von Benedek                By:/s/ Dirk Boogmons
-----------------------                   --------------------------------------
Patrick Von Benedek                       Name:  Dirk Boogmons
VP Life Sciences                          Title: CEO

                                       Memories Plus, LLC

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       M&G Equities

                                       By:/s/ Michael Kartunkel
                                          --------------------------------------
                                          Name:  Michael Kartunkel
                                          Title: Partner

                                       -----------------------------------------
                                       Kenneth J. Novack

                                       /s/ Larry Abrams
                                       -----------------------------------------
                                       Larry Abrams

<PAGE>
                                       Hare & Co., FAO Finsbury Worldwide
                                       Pharmaceutical Trust PLC

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Adviesbeheer GIMV Life Sciences

/s/ Patrick Von Benedek                By:/s/ Dirk Boogmons
-----------------------                   --------------------------------------
Patrick Von Benedek                       Name:  Dirk Boogmons
Director                                  Title: Director

                                       Bioveda Fund Pte Ltd

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       By:Bioveda Capital Pte Ltd, Its
                                          Investment Manager

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Medica II Investments (P.F.)(Israel) L.P.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:
<PAGE>
                                      Oxford Bioscience Partners II (Annex)
                                      L.P.

                                       By:  OBP Management II L.P.

                                       By:/s/ Jonathan J. Fleming
                                          --------------------------------------
                                          Name:
                                          Title:

                                       The Yasuda Enterprise Development I
                                       Limited Partnership

                                       By: Yasuda Enterprise Development Co.,
                                             Ltd.

                                       By:/s/ Minoru Oka
                                          --------------------------------------
                                          Name:  Minoru Oka
                                          Title: President and Representative
                                                   Director

                                       Gray Ghost, LLC

                                       By:/s/ Frank A. Bonsal, Jr.
                                          --------------------------------------
                                          Name:  Frank A. Bonsal, Jr.
                                          Title: Manager

                                       Mitsubishi Corporation

                                       By:/s/ Tsunehiko Yanagihara
                                          --------------------------------------
                                          Name:  Tsunehiko Yanagihara
                                          Title: General Manager
                                                 Life Sciences Business Unit

                                       Mitsubishi International Corporation

                                       By:/s/ Motoatsu Sakurai
                                          --------------------------------------
                                          Name:  Motoatsu Sakwai
                                          Title: President and CEO
<PAGE>
                                       CZ Specialty Chemicals, Inc.

                                       By:/s/ Tsunehiko Yanagihara
                                          --------------------------------------
                                          Name:  Tsunehiko Yanagihara
                                          Title:

                                       -----------------------------------------
                                       Kenneth A. Sorensen, Ph.D.

                                       -----------------------------------------
                                       Hans-Jurgen Hess, Ph.D.

                                       Mchugh, Divincent, Allessi, Inc.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Societe Generale Investment Corporation

                                       By:/s/ David M. Malcom
                                          --------------------------------------
                                          Name:  David M. Malcom
                                          Title: Vice President
<PAGE>
                                       RHO Management Trust II

                                       By:  Rho Capital Partners, Inc.,
                                            Investment Advisor

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Yamanouchi Venture Capital, LLC

                                       By:/s/ Yoshitaka Yoneyama
                                          --------------------------------------
                                          Name:  Yoshitaka Yoneyama
                                          Title: President and Chief Financial
                                                   Officer

                                       Alta California Partners II, L.P.

                                       By:  Alta California Management Partners
                                       II, LLC, Its General Partner

                                       By:/s/ Alix Marduel
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Biomedicine L.P.

                                       By: International Bm Biomedicine
                                           Holdings (Cayman) Ltd., Its General
                                           Partner

                                       By:/s/ Illegible
                                          --------------------------------------
                                          Name:
                                          Title:

                                       /s/ Alexander Scriabine
                                       --------------------------------------
                                       Alexander Scriabine, M.D.
<PAGE>
                                       New England Partners Capital, L.P.

                                       By:  Nep Capital, Llc, Its General
                                       Partner

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Middlegate Ventures, LLC

                                       By:/s/ Albert Sutton
                                          --------------------------------------
                                          Name:  Albert Sutton
                                          Title: Managing Partner

                                       -----------------------------------------
                                       David I. Wolsk

                                       -----------------------------------------
                                       David R. Novack

                                       -----------------------------------------
                                       Helen Novack

                                       -----------------------------------------
                                       Hyman Novack

                                       /s/ Natalie C. Scriabine (i.t.f.)
                                       -----------------------------------------
                                       Natalie C. Scriabine

                                       /s/ Christine B. Scriabine
                                       -----------------------------------------
                                       Christine B. Scriabine

                                       /s/ Steven Ostrofsky
                                       -----------------------------------------
                                       Steven Ostrofsky
<PAGE>
                                       -----------------------------------------
                                       Peter Smith

                                       -----------------------------------------
                                       Judith Smith

                                       -----------------------------------------
                                       Stephen White

                                       -----------------------------------------
                                       Mariam White

                                       Hoffmann-La Roche Inc.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:<PAGE>

                                                                    Exhibit 10.8

        CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A
               REQUEST FOR CONFIDENTIAL TREATMENT. THE NON-PUBLIC
                INFORMATION HAS BEEN FILED WITH THE COMMISSION.

LICENSE AGREEMENT

between

Bayer AG
D-51368 Leverkusen
Germany
- hereinafter referred to as "Bayer" -

and

Memory Pharmaceuticals Corporation
100 Philips Parkway
Montvale, New Jersey  07645
U.S.A.

- hereinafter referred to as "Memory" -

RECITALS

1.       Bayer has disclosed and transferred to Memory confidential information
         and a sample of Bayer's compound Bay z 4406 under the provisions of a
         Secrecy Agreement dated August 6, 1998, as extended by Agreement dated
         July 2, 1999 (the "Secrecy Agreement"), and a Confidentiality and
         Non-Use Agreement dated July 6, 1999 as extended by Agreement dated
         June 30, 2000, and as modified by an Agreement dated May 23, 2000 (the
         "Confidentiality Agreement").

2.       Memory has evaluated such Bayer compound, the patent rights and know
         how related thereto, and has been granted by Bayer an exclusive
         evaluation period under an Agreement dated May 23, 2000, amended by a
         Letter Agreement dated November 21, 2000.

3.       Memory has informed Bayer in writing that it elects to acquire an
         exclusive license from Bayer pursuant to the provisions of the
         Agreement of May 23, 2000 and its amendment of November 21, 2000.

Now, therefore, in consideration of the mutual set forth in this License
Agreement, the parties hereby agree as follows:

ARTICLE 1 - DEFINITIONS

For purposes of this Agreement, the terms defined in this Article shall have the
meanings specified below:

1.1.     "Additional Component" shall mean a component which is diagnostically
         useable or therapeutically active alone or in a combination which does
         not require Compound, and such component does not contain Compound.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>
 1.2.    "Affiliate" shall mean a corporation or other legal entity that
         controls, is controlled by, or is under common control with such party.
         For purposes of this definition, "control" means the ownership,
         directly or indirectly, of more than fifty percent (50%) of the
         outstanding equity securities of a corporation which are entitled to
         vote in the election of directors or a more than fifty percent (50%)
         interest in the net assets or profits of an entity which is not a
         corporation.

1.3.     "Combination Product(s)" shall mean a Finished Product that includes
         the Compound and at least one Additional Component.

1.4.     "Compound" shall mean the Bayer compound having the code no. Bay z
         4406, which is (+)-3-isopropyl 5-(2-methoxyethyl)
         4-(2-chloro-3-cyanophenyl)-2,6-dimethyl-1,4-dihydro-3,
         5-pyridinedicarboxylate.

1.5.     "Distributor" shall mean any business entity which has the right to
         distribute Finished Products within a country.

1.6.     "Finished Product" shall mean any and all pharmaceutical preparations
         which are in a form ready for use by an end user without further
         formulation, processing or chemical transformation, which contain
         Compound.

1.7.     "Field" shall mean the treatment of human peripheral and central
         nervous system related disorders.

1.8.     "First Commercial Sale" shall mean the initial transfer of a Finished
         Product for value and not for demonstration, testing or promotional
         purposes.

1.9.     "Know How" shall mean any and all manufacturing information, technical
         information, testing and analytic methods, results, data and
         specifications or know-how which Bayer owns or has rights to include in
         the license grant in Article 2 hereof pertaining to Compound, Finished
         Product and Field.

1.10.    "IND" shall mean the application for an Investigative New Drug in the
         United States or a foreign equivalent thereof.

1.11.    "Listed Country" shall mean the United States of America, Japan,
         Germany, France, Italy, United Kingdom, Canada, Mexico, Spain, The
         Netherlands, Belgium or Luxembourg.

1.12.    "Major Country" shall mean the United States of America, Japan,
         Germany, France, Italy or the United Kingdom.

1.13.    "NDA" shall mean a New Drug Application in the United States to obtain
         an approval to market and sell Finished Product, or a foreign
         equivalent thereof.

1.14.    "Net Sales" shall mean the total gross sales (number of units shipped
         times the invoiced price per unit) of Finished Product, or, if
         applicable, Combination Product sold by Memory and/or a Sublicensee
         and/or a Distributor to Third Parties less certain deductions explained
         below, but only to the extent that such deductions are borne by Memory
         and/or a Sublicensee and not separately invoiced, and are related to
         Finished Product sold under the terms of this Agreement:

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         a)       Allowances actually granted to Third Party customers such as
                  ordinary and customary trade discounts, quantity discounts,
                  cash discounts, rebates (including rebates to social and
                  welfare systems), and sales commissions but together not more
                  than [*]% of gross sales. Notwithstanding the foregoing, in
                  the event that the requested allowances are higher than [*]%
                  of the gross sales in an individual country, Memory shall be
                  entitled to deduct from the gross sales more than [*]%, if
                  Memory produces evidence and informs Bayer respectively in
                  writing that the sum of the deductions as set forth herein
                  before is more than [*] %; provided, however, that such
                  allowances are granted in the ordinary course of business and
                  consistent with the business practices in the pharmaceutical
                  industry.

         b)       Government mandated rebates.

         c)       Taxes and governmental charges, other than income tax. This
                  deduction includes import duties, excise taxes, tariffs, use
                  taxes, etc., which are imposed on Finished Product and borne
                  by the seller of Finished Product.

         d)       Credits and/or allowances actually given for rejection,
                  return or recall of previously sold Finished Product, but not
                  in excess of the original selling price of the Finished
                  Product rejected, returned or recalled.

         e)       Outbound transportation and delivery charges (including
                  insurance premiums related to transportation and delivery)
                  prepaid or allowed.

         Notwithstanding anything herein to the contrary, the following shall
         not be considered a sale of a Finished Product, or, if applicable,
         Combination Product under this Agreement: (i) the transfer of a
         Finished Product, or, if applicable, Combination Product to a
         Sublicensee or a Distributor for sale by the Sublicensee or the
         Distributor in a transaction that will be royalty bearing, regardless
         of whether there is an internal transfer price associated with the
         transfer; or (ii) the transfer of a Finished Product, or, if
         applicable, Combination Product to a Third Party, an Affiliate of
         Memory or a Sublicensee without consideration or for nominal
         consideration to Memory and/or the Sublicensee in connection with the
         development or testing of a Finished Product. For purposes of
         clarification, in the event of any Net Sales generated by Memory
         directly via an unaffiliated wholesaler of Finished Product or, if
         applicable, Combination Product and not through a Sublicensee, "Net
         Sales" shall mean, and royalties shall be calculated based upon, the
         Net Sales of Memory to the wholesalers and not the sales of Finished
         Product or, if applicable, Combination Product by the wholesaler to its
         customers.

1.15.    "Patent Rights" shall mean (a) Bayer's patents and patent applications
         as specified in Annex A which is an integral part of this Agreement,
         including any patents issuing from such patent applications; (b) any
         divisional applications, continuation applications, continuation in
         part applications or substitutes, reissues, reexaminations, renewals or
         the like related to the patents and patent applications listed in Annex
         A; (c) claims of continuation in part applications and patent
         applications, and patents issued therefrom, to the extent the claims
         are directed to the subject matter specifically described in the patent
         rights described in (a) and (b) above and (d) below; and (d) all patent
         rights referred to in Art. 2.3 below.

1.16.    "Royalty Period" shall mean the calendar quarter, or partial calendar
         quarter, commencing with the First Commercial Sale of any Licensed
         Product, and each calendar quarter thereafter until the obligation to
         pay royalties expires.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

1.17.    "Sublicensee" shall mean a Memory Affiliate or a Third Party; provided
         that such Affiliate or Third Party has received certain
         sublicense rights from Memory as set forth in Art. 2.6.

1.18.    "Third Party" shall mean any third party except Memory, a Memory
         Affiliate, Bayer or a Bayer Affiliate.

ARTICLE 2 - GRANT OF RIGHTS

2.1.     Subject to the terms and conditions set forth herein, Bayer hereby
         grants Memory a world-wide, exclusive, royalty-bearing non-transferable
         license under Patent Rights and Know How to manufacture, have
         manufactured, use and/or have used Compound in order to manufacture,
         have manufactured, use, offer for sale, have sold, import, export,
         register and/or market Finished Products within the Field.

2.2.     Memory acknowledges that its rights under Patent Rights are limited to
         those expressly granted herein, and that Memory is expressly prohibited
         from selling, transferring or otherwise making available to Third
         Parties Compound and/or Finished Products for use outside the Field.

2.3.     As far as Bayer owns or controls, at any time, patent rights not
         mentioned in Annex A, which claim Compound and/or its use in the Field,
         those patent rights shall be regarded as Patent Rights provided that
         manufacture sale or use of the Finished Product in the Field would
         infringe or violate those patent rights. The patent rights under this
         Art. 2.3 shall however not include any patent or patent application of
         Bayer claiming specific formulations possibly useful for Compound.

2.4.     Except as otherwise provided herein, the right, title and interest in
         the Patent Rights are affected by the license pursuant to Art. 2.1
         only to the extent as such Patent Rights are claiming Compound and its
         use within the Field.

2.5.     Bayer hereby grants to Memory an option to acquire a non-exclusive,
         world-wide, non-transferable license pursuant to the terms set forth in
         this Agreement (i) under Bayer's rights belonging to the patent
         families of US-5,707,655 and/or US-5,900,425 in relation to controlled
         release formulations disclosed in such patent families and developed by
         Bayer for its Nimodipin(R) product, and, if applicable, (ii) under
         corresponding Bayer know-how; provided, however, that Memory may
         exercise such option and use such rights only for the
         manufacture, sale and use of Finished Products within the Field. No
         additional consideration shall be payable by Memory to Bayer upon
         exercise of such option. The option granted to Memory under this Art.
         2.5 will automatically expire, if Memory does not exercise this option
         in writing before the end of the first clinical phase II trials during
         the development of the Finished Product in the Field.

2.6.     Memory shall have the right to grant sublicenses under the licenses and
         rights granted by Bayer to Memory under this Art. 2; provided, however,
         that Memory shall continue to be responsible for all obligations of
         Memory set forth in this License Agreement.

ARTICLE 3 - DEVELOPMENT AND MARKETING

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

3.1.     In consideration of the rights granted to Memory under this Agreement,
         Memory shall use commercially reasonable efforts (i) to develop
         (through research, development, marketing and/or sublicensing
         activities, either alone or in collaboration with Third Parties)
         Finished Products, and (ii) to register and market (either alone and/or
         in collaboration with Third Parties) Finished Products in the United
         States, Japan and in four countries of the European Union which Memory
         shall select from the group consisting of Germany, France, United
         Kingdom, Italy and Spain.

3.2.     Neither Bayer nor a Bayer Affiliate shall have any obligation to
         provide Memory, a Memory Affiliate and/or a Sublicensee with any
         service or assistance as to (i) the non-clinical and clinical
         development of Compound and Finished Products, and (ii) the
         registration and marketing of Finished Products. Memory is solely
         responsible, and is hereby authorized by Bayer to contact a Third Party
         contractor in order to establish an ongoing supply of Compound which
         Memory needs for the non-clinical and clinical development of Finished
         Products as well as for marketing purposes. Bayer does not have any
         obligation to supply Memory with Compound.

ARTICLE 4 - PAYMENTS, RECORDS AND REPORTS

4.1.     In further consideration of the rights granted to Memory under this
         Agreement, Memory shall make the following payments to Bayer:

         (i)     0.25 Mio US $ (two hundred fifty thousand U.S. Dollars) within
                 30 (thirty) days following the effective date of this
                 Agreement;

         (ii)    0.75 Mio US $ (seven hundred fifty thousand U.S. Dollars)
                 within 30 (thirty) days following the first IND approval;

         (iii)   1 Mio US $ (one million U.S. Dollars) within 30 (thirty) days
                 following the start of the first clinical phase II;

         (iv)    [*] US $ ([*] U.S. Dollars) within 30 (thirty) days following
                 the [*]; (v) [*] US $ ([*] U.S. Dollars) within 30 (thirty)
                 days following the [*]; provided that, if the [*], then this
                 payment shall be due on the date that is the earlier of (a) 6
                 (six) months from the date of such [*], or (b) thirty (30) days
                 following the [*]. If the payment described in this paragraph
                 is made pursuant to (a) of this paragraph, then such payment
                 shall bear interest from the date that is thirty (30) days
                 following the [*] through the date of actual payment. Such
                 interest shall be calculated based on the three (3) month LIBOR
                 rate in effect on the business day immediately preceding the
                 start of such thirty (30) day period, as reported in the Wall
                 Street Journal.

         (vi)    [*] US $ ([*] U.S. Dollars) within 60 (sixty) days following
                 the [*]; provided that, if the [*], then this payment shall be
                 due on the date that is the earlier of (a) 6 (six) months from
                 the date of such [*], or (b) sixty (60) days following the [*].
                 If the payment described in this paragraph is made pursuant to
                 (a) of this paragraph, then such payment shall bear interest
                 from the date that is sixty (60) days following the [*] through
                 the date of actual payment. Such interests shall be calculated
                 based on the three (3) month LIBOR rate in effect on the
                 business day immediately preceding the start of such sixty (60)
                 day period, as reported in the Wall Street Journal.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         (vii)   a [*]% ([*] percent) royalty on the worldwide Net Sales
                 proceeds received by Memory's Sublicensees, irrespective of the
                 royalty rate(s) actually to be paid by Sublicensee(s) to
                 Memory, if any;

         (viii)  in the event that the worldwide royalties received by Memory
                 from any of its Sublicensee(s) exceeds [*]% ([*] percent), then
                 Memory will pay to Bayer an additional royalty of [*]% ([*]
                 percent) of such amounts in excess of [*]% ([*] percent)
                 [example: if royalties received from a Sublicensee are 12%,
                 royalties to be paid to Bayer would be [*]% plus [*]% of the
                 next [*]% ([*]%), resulting in a total royalty rate of [*]%].

4.2.     In the event that Memory shall generate in any calendar year Net Sales
         of Finished Product directly or via a Distributor and not through a
         Sublicensee, Memory shall, in addition to the payments specified under
         Art. 4.1, pay to Bayer royalties based on such annual Net Sales as
         follows:

         -       a [*] % ([*] percent) royalty on the worldwide Net Sales during
                 such calendar year generated by Memory, if such Net Sales do
                 not exceed [*] US $ ([*] US Dollars);

         -       a [*]% ([*] percent) royalty on the entire worldwide Net Sales
                 generated during such calendar year by Memory, if such Net
                 Sales lie in a range from more than [*] US $ ([*] US Dollars)
                 to [*] US $ ([*] US Dollars);

         -       a [*] % ([*] percent) royalty on the entire worldwide Net Sales
                 generated during such calendar year by Memory, if such Net
                 Sales lie in a range from more than [*] US $ ([*] US Dollars)
                 to [*] US $ ([*] US Dollars);

         -       a [*] % ([*] percent) royalty on the entire worldwide Net Sales
                 generated during such calendar year by Memory, if such Net
                 Sales lie in a range from more than [*] US $ ([*] US Dollars)
                 to [*] US $ ([*] US Dollars); or

         -       a [*] % ([*] percent) royalty on the entire worldwide Net Sales
                 generated by Memory, if such Net Sales exceed [*] US $ ([*] US
                 Dollars).

4.3.     Notwithstanding any other provision herein, in the event that Bayer
         does not have any Patent Rights affording patent protection relating to
         the manufacture, sale and use of Compound in a Listed Country, the
         royalties payable by Memory to Bayer with respect to Net Sales in such
         Listed Country shall be as follows:

         (i)     if Memory generates any Net Sales directly or via a Distributor
                 in one of the Listed Countries in which Bayer does not have any
                 Patent Rights affording such patent protection, then the
                 royalties payable by Memory to Bayer with respect to Net Sales
                 in this Listed Country shall be reduced to [*]% ([*] percent)
                 of the royalty rates defined in Art. 4.2 of this Agreement;

         (ii)    if Net Sales are generated by any of Memory's Sublicensee(s) in
                 one of the Listed Countries in which Bayer does not have any
                 Patent Rights affording such patent protection, then the
                 royalties payable by Memory to Bayer with respect to Net Sales
                 in this Listed Country shall be reduced to [*]% ([*] percent);
                 the royalty payments to be made by Memory according to Art. 4.1
                 (viii) of this Agreement, i.e. the royalties to be paid by
                 Memory to Bayer if the royalties received by Memory from any of
                 its

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                 Sublicensee(s) exceed [*]%, are however not affected by the
                 provisions of this Art. 4.3 of this Agreement;

         (iii)   if Bayer does not have any Patent Right affording such patent
                 protection in a country which does not belong to the Listed
                 Countries, then the royalty rates for that country shall not be
                 reduced.

4.4.     No multiple royalties shall be payable because any Finished Product, is
         covered by more than one Patent Right.

4.5.     In the event that a Combination Product is sold, then Net Sales of the
         Combination Product shall be calculated using one of the following
         methods:

         (a)     By multiplying the Net Sales of the Combination Product during
                 the applicable royalty accounting period ("accounting period")
                 by a fraction, the numerator of which is the average gross
                 selling price in the Major Countries of the Finished Product,
                 and the denominator of which is the average gross selling price
                 in the Major Countries of the Combination Product, or

         (b)     In the event that no such separate sales are made of the
                 Finished Product or the Combination Product in the Major
                 Countries during the applicable accounting period, Net Sales
                 for purposes of determining royalties payable hereunder shall
                 be subject of discussions between Memory and Bayer in good
                 faith in order to identify a fair and reasonable arrangement.
                 If the parties are unable to resolve a dispute arising from
                 their discussion under this Art. 4.5(b) within 45 days, each
                 party shall have the right to initiate the Dispute Resolution
                 Procedure as set forth in Article. 8.8.

4.6.     Memory agrees to pay Bayer, concurrently with the delivery of the
         report set forth in Article 4.8, royalties on aggregate Net Sales
         during the prior Royalty Period at the royalty rates specified in the
         Articles 4.1 - 4.5.

4.7.     On each anniversary of the effective date of this Agreement, Memory
         shall deliver to Bayer a report containing the following information
         with respect to each Sublicensee to whom Memory has transferred rights
         during, the period since the last such report or, in the case of the
         first such period since the effective date of this Agreement:

         a)      identification of the Sublicensee and the kind of rights
                 granted to it;

         b)      the financial terms and conditions of the Sublicense Agreement
                 so far relevant to the provisions of the Articles 4.1 - 4.3.

4.8.     Prior to the First Commercial Sale of a Finished Product, Memory agrees
         to provide biannual summary reports on the status of its research and
         development activities covered by the license granted herein.
         Commencing with the First Commercial Sale of a Finished Product in any
         country, within sixty (60) days after the conclusion of each Royalty
         Period Memory shall deliver to Bayer a report containing the following
         information:

         a)      gross sales of Finished Products, in each country of sale, made
                 by or on behalf of Memory and/or its Sublicensees during the
                 applicable Royalty Period;

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         b)      calculation of Net Sales for the applicable Royalty Period in
                 each country of sale, together with the exchange rates used for
                 conversion; and

         c)      calculation of the amount payable to Bayer for the applicable
                 Royalty Period.

         If no royalties or other payments are due to Bayer for any Royalty
         Period, the report shall so state. Concurrent with these reports,
         Memory shall remit to Bayer any payment due for the applicable Royalty
         Period. The method of payment shall be by check or wire transfer as
         directed from time to time by Bayer. All amounts payable to Bayer under
         this Article 4 will first be calculated in the currency of sale and
         then converted into U.S. dollars in accordance with Art. 4.9, and such
         amounts shall be paid without deduction of any withholding taxes,
         value-added taxes, or other charges applicable to such payments. All
         reports provided to Bayer hereunder shall be maintained in confidence
         by Bayer.

4.9.     All payments due under this Agreement shall be payable in United States
         dollars. Conversion of foreign currency ("Other Currency") to U.S.
         dollars shall be made at the conversion rate existing in the United
         States (as reported in the Wall Street Journal) on the last working day
         of the applicable calendar quarter. Such payments shall be without
         deduction of exchange, collection, or other charges. In the event that
         any Other Currency shall, at the time the applicable payment by Memory
         to Bayer is due, not be convertible into U.S. dollars and freely
         transferable by reason of any governmental regulation or any
         moratorium, embargo, banking restriction or other restriction, the
         obligation of Memory to make payment of such payment shall be suspended
         until such time a such Other Currency shall be convertible into U.S.
         dollars and freely transferable to the United States.

4.10.    Memory shall maintain, and shall ensure that any Sublicensee shall
         maintain, complete and accurate records of Finished Products made,
         used, or sold under this Agreement and any amounts payable to Bayer in
         relation to such Finished Products, which records shall contain
         sufficient information to permit Bayer to confirm the accuracy of any
         reports delivered to Bayer. Memory and its Sublicensees shall retain
         such records relating to a given Royalty Period for at least five (5)
         years after the conclusion of that Royalty Period, during which time
         Bayer shall have the right, at its expense, to cause an independent
         certified public accountant (who shall be subject to confidentiality
         obligations) to inspect such records during normal business hours for
         the sole purpose of verifying any reports and payments delivered under
         this Agreement; provided, however, that not more than one such audit
         shall be permitted during any twelve (12) month period. Such accountant
         shall not disclose to Bayer any information other than information
         relating to accuracy of reports and payments delivered under this
         Agreement and shall provide Memory with a copy of any report given to
         Bayer. The parties shall reconcile any underpayment or overpayment
         within thirty (30) days after the accountant delivers the results of
         the audit. In the event that any audit performed under this Article
         reveals an underpayment in such Royalty Period in excess of the greater
         of $[*] or [*] percent ([*] %) of the amount actually paid, Memory
         shall bear the full cost of such audit.

4.11.    Any payments by Memory that are not paid on or before the date such
         payments are due under this Agreement shall bear interest at [*]
         percentage points above the base prime rate of interest most recently
         reported by The Wall Street Journal, calculated based on the number of
         days that payment is delinquent.

ARTICLE 5 - REPRESENTATIONS AND WARRANTIES

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

5.1.     Each party represents and warrants to the other that it has the legal
         right and power to enter into this Agreement, to extend the rights and
         licenses granted to the other in this Agreement, and to fully perform
         its obligations hereunder, and that the performance of such obligations
         will not conflict with its charter documents or any agreements,
         contracts, or other arrangements to which it is a party.

5.2.     Bayer represents and warrants to Memory that, as of the effective date
         of this Agreement, it possesses the exclusive right, title, and
         interest in and to the Patent Rights and that it has the full legal
         right and power to enter into the obligations and grant the rights and
         licenses set forth in this Agreement. Bayer shall be responsible for
         and shall control the prosecution, grant and maintenance of all Patent
         Rights and shall, at Bayer's cost and expense, use reasonable efforts
         in order to prosecute and maintain such Patent Rights in good faith
         consistent with its customary patent policy and its reasonable business
         judgment, and shall in good faith consider the interests of Memory in
         so doing. Bayer will, upon request of Memory, provide Memory with
         information concerning the status of Patent Rights. In the event that
         Bayer recognizes that a patent protection in relation to a patent
         application mentioned in Annex A cannot be obtained, or that a granted
         patent is becoming nullified prior to its expiration, or that another
         event happens which might have an influence on the Patent Rights, Bayer
         shall inform Memory in writing without undue delay in reasonable time
         in advance of the event. If Bayer elects not to (i) file foreign or PCT
         applications claiming priority to a pending U.S. patent application
         within the one-year statutory period; (ii) continue prosecution of a
         patent application; or (iii) maintain any Patent Rights, Bayer shall so
         notify Memory in sufficient time for Memory to assume the filing,
         prosecution and/or maintenance of such application or patent in Bayer's
         name at Memory's expense; and thereafter Memory shall have the right
         (but not the obligation), at its expense and discretion, to file,
         prosecute or maintain any such applications or patents. Bayer agrees to
         execute, and agrees to use reasonable efforts to ensure that its
         employees shall execute, all documents necessary or useful for Memory
         to file, prosecute and/or cause the issuance of such applications.
         Memory shall have no further royalty or other obligations under this
         Agreement with respect to such patents or applications.

5.3.     Bayer represents, warrants and covenants that (i) neither Bayer nor a
         Bayer Affiliate will manufacture, use, sell, have sold, import, export,
         develop, register or market the Compound, or any product containing
         Compound as its active ingredient, or license or otherwise permit any
         Third Party to do any of the foregoing, in any case whether within or
         outside the Field, during the term of this Agreement; and (ii) at the
         effective date of this Agreement, to Bayer's actual knowledge, there
         are no claims or demands of any person, firm, corporation or entity
         pertaining to Patent Rights, and no proceedings have been instituted or
         are pending or are threatened which challenge the right of Bayer to, or
         involve, the Patent Rights.

5.4      Nothing in this Agreement shall be construed as:

         a)      a warranty or representation by Bayer as to the validity or
                 scope of any patent included within the Patent Rights;

         b)      a warranty or representation that the exploitation of the
                 Patent Rights or the manufacture, use or sale of compound
                 and/or Finished Products is or will be free from infringement
                 of patents of third parties, or is or will be technically
                 and/or economically feasible or useful;

         c)      an obligation of either party to bring or prosecute actions or
                 suits against Third Parties for infringement;

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         d)      creating any agency, partnership, joint venture or similar
                 relationship between Bayer and Memory; or

         e)      conferring by implication, estoppel or otherwise any license,
                 immunity or right under any patent of Bayer other than those
                 specified in Article 2 of this Agreement.

 5.4.    a)      Each party promptly shall advise the other party of any
                 possible infringement of any of the Patent Rights pertaining to
                 manufacture, sale and/or use of Compound by a Third Party of
                 which such party becomes aware, and such party shall supply the
                 other party with any evidence available pertaining to the
                 possible infringement.

                 Memory shall have the first right (but not the obligation) to
                 defend the Patent Rights with respect to the manufacture, sale
                 and/or use rights for Compound against infringement or
                 interference by any Third Party, in its own name and/or the
                 name of Bayer, at Memory's own expense, including the bringing
                 of any legal action for infringement or the defending of any
                 counterclaim of invalidity or action of a Third Party for
                 declaratory judgment of non-infringement or interference.
                 Memory may settle any such actions, solely at its own expense
                 and through counsel of its selection; provided, however, that
                 Bayer shall be entitled, in each such instance, to participate
                 through counsel of its own selection, at its own expense, and
                 any settlement that is reasonably likely to have an adverse
                 effect on the manufacture, sale and/or use rights for Compound
                 included in the Patent Rights shall not be entered into without
                 Bayer's prior written consent (which consent shall not be
                 unreasonably withheld or delayed). Bayer shall provide
                 reasonable assistance to Memory, as requested, and Memory shall
                 reimburse Bayer for its reasonable out-of-pocket expenses in
                 connection with such requested assistance. Memory shall be
                 entitled to retain any recovery obtained as a result of such
                 action, whether by judgment, award, decree or settlement. In
                 the event that Memory fails to initiate and prosecute or
                 participate in such legal action within one hundred twenty
                 (120) days, Bayer shall have the right to initiate legal
                 action, at its own expense, to uphold the Patents Rights
                 against Third Parties. Memory shall provide reasonable
                 assistance to Bayer as requested, and Bayer shall reimburse
                 Memory for its reasonable out-of-pocket expenses in-connection
                 with any such requested assistance. Bayer may settle any such
                 actions, solely at its own expense and through counsel of its
                 selection; provided, however, that Memory shall be entitled, in
                 each such instance, to participate through counsel of its own
                 selection, at its own expense, and any settlement that is
                 reasonably likely to have an adverse effect on the manufacture,
                 sale and/or use rights for Compound included in the Patent
                 Rights shall not be entered without Memory's prior written
                 consent (which consent shall not be unreasonably withheld or
                 delayed). Memory shall provide reasonable assistance to Bayer
                 as requested, and Bayer shall reimburse Memory for its
                 reasonable out-of-pocket expenses in connection with any such
                 requested assistance. Bayer shall be entitled to retain any
                 recovery obtained as a result of such action, whether by
                 judgment, award, decree or settlement.

         b)      In any infringement suit which either party may institute to
                 enforce the Patent Rights pertaining to the manufacture, sale
                 and/or use rights for Compound, or in a suit for patent
                 infringement which is brought by a Third Party against Memory,
                 which Memory is required to defend, the other party hereto
                 shall at the request and the expense of the party initiating or
                 defending such suit, cooperate in all reasonable respects and,
                 to the extent reasonably possible, have its employees testify
                 when requested and make available relevant records, papers,
                 information, samples, specimens and the like.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>
ARTICLE 6 - INDEMNIFICATION

6.1.     Memory shall indemnify, defend, and hold harmless Bayer and its
         directors, officers, employees, managers, agents and representatives
         and their respective successors, heirs and assigns against any
         liability, damage, loss, or expense (including reasonable attorneys'
         fees and expenses) (collectively, "Losses") incurred by or imposed upon
         the foregoing indemnitees or any one of them in connection with any
         claims, suits, actions, demands, or judgments ("Claims") (i) concerning
         Compound, Finished Product, Combination Product, process or service
         that is made, used, sold or provided by Memory pursuant to any right or
         license granted under this Agreement and/or (ii) relating to or arising
         from any breach by Memory of any representation, warranty or covenant
         made by it in this Agreement.

6.2.     Bayer shall indemnify, defend and hold harmless Memory and its
         respective directors, officers, employees, managers, agents and
         representatives, and their respective successors, heirs and assigns,
         from and against any and all Losses incurred by or imposed upon the
         foregoing indemnitees or any of them in connection with any Claims
         relating to or arising from any breach by Bayer of any representation,
         warranty or covenant made by it in this Agreement.

6.3.     Any person or entity seeking indemnification under this Article 6
         (collectively, the "Indemnified Parties") shall promptly give notice to
         the party required to provide indemnification hereunder (the
         "Indemnifying Party") with respect to any Claims as to which it asserts
         a right to indemnification, and within thirty (30) days thereafter,
         further notify Indemnifying Party of the details of such Claim and the
         amount thereof; provided, however, that the failure to give such
         notification shall not relieve the Indemnifying Party from any
         liability that it may have pursuant to the provisions of this Article 6
         as long as the failure to give such notice within such time is not
         prejudicial to the Indemnifying Party. Notice to the Indemnifying Party
         for the purpose of this Article 6 shall include the filing of the
         service upon the Indemnifying Party of any legal action or any other
         form of actual notice. Bayer or Memory, as the case may be, may set off
         the amount of any Claim or Claims in respect of which such Indemnified
         Parties are entitled to indemnification hereunder against amounts
         otherwise due to the Memory or Bayer, as the case may be, hereunder. If
         the Indemnifying Party does not promptly and to the Indemnified
         Parties' satisfaction assume the defense of any Claim, the Indemnified
         Parties may do so at the Indemnifying Party's cost and expense. The
         Indemnifying Party may not compromise or settle any Claim without the
         prior written consent of the Indemnified Parties.

ARTICLE 7 - TERM AND TERMINATION

7.1.     This Agreement shall commence upon being signed by both parties (the
         "Effective Date") and shall remain in effect until the expiration of
         the last to expire of the Patent Rights, unless earlier terminated as
         provided in this Article. The term for payment of royalties for each
         Finished Product and, if applicable, for each Combination Product shall
         commence with the First Commercial Sale and shall end on a country by
         country basis upon either (i) the date on which the last Patent Right
         in such country expires, or (ii) ten (10) years after the First
         Commercial Sale of the Finished Product and, if applicable, Combination
         Product in such country, whichever is longer.

7.2.     In the event that Memory determines that it has a material scientific
         and/or technical problem relating to the development and/or regulatory
         approval of Compound or Finished Product in the

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>
         Field, or a material economic and/or business problem relating to the
         development and/or regulatory approval and/or marketing of Compound or
         Finished Product in the Field, Memory may terminate this Agreement by
         giving 30 (thirty) days prior written notice thereof to Bayer, setting
         forth the specific reason(s) for termination in detail. Bayer will
         evaluate these reasons in good faith and in case that Bayer according
         to its sole decision does not accept these reasons, it shall so notify
         Memory in writing within forty five (45) days of its receipt of
         Memory's notice and Memory and Bayer shall then enter into the Dispute
         Resolution Procedure in accordance with the provisions of Art. 8.8;
         provided, however, that Memory shall not be obligated to enter into any
         arbitration. In the event that this Dispute Resolution Procedure fails
         Memory may terminate this Agreement immediately.

7.3.     In the event that Memory fails to make timely payment of any amounts
         due to Bayer under this Agreement Bayer may terminate this Agreement
         upon thirty (30) days written notice to Memory, unless Memory pays all
         past-due amounts prior to the expiration of such thirty (30)-day notice
         period.

7.4.     In the event that either party commits a material breach of any of its
         obligations under this Agreement, other than that stated in Art. 7.3,
         and such party fails to remedy that breach within ninety (90) days
         after receiving written notice thereof from the other party, that other
         party may immediately terminate this Agreement upon written notice to
         the breaching party.

7.5.     Upon expiration of this Agreement pursuant to Art. 7.1, or upon
         termination of this Agreement by Memory pursuant to Art. 7.4, Memory
         shall have a fully paid up worldwide license under the terms set forth
         in Article 2 with respect to Memory's activities as to Compound and/or
         Finished Product subsequent to the date of expiration or any such
         termination.

7.6.     Upon termination of this Agreement by Memory pursuant to Art. 7.2, all
         rights and licenses granted to Memory by Bayer under this Agreement
         shall terminate immediately. If Bayer is interested to proceed with the
         development and/or marketing of Finished Product, and to use the data
         and results obtained by Memory during the development, and/or the NDA
         approvals of Memory, the parties shall negotiate reasonable terms and
         conditions under which Bayer may use Memory's data and results and/or
         NDA approvals.

7.7.     Upon termination of this Agreement by Bayer pursuant to Art. 7.3 or
         Art. 7.4, all rights and licenses granted to Memory by Bayer under this
         Agreement shall terminate immediately. If Bayer is interested to
         proceed with the development and/or marketing of Finished Product,
         Memory shall disclose to Bayer all data and results obtained by Memory
         during the development, and shall further transfer free of charge the
         right, title and interest in all such data and results, including
         inventions, to Bayer. If applicable, Memory shall also assign to Bayer
         its NDA approvals for Finished Products in all countries free of
         charge.

7.8.     Memory agrees that, in the event that this Agreement is terminated
         pursuant to the terms, hereof, Memory shall so notify each Sublicensee
         within twenty (20) days of such termination.

7.9.     The milestones payments and the royalty payments to be made by Memory
         under Art. 4 shall not be refunded following the expiration or
         termination of this Agreement. Any milestone payment and/or royalty
         payment shall however not become due if notice of termination was given
         by the party entitled to do so prior to the due date of any such
         payment.

7.10.    The expiration or termination of this Agreement for any reason
         whatsoever shall be without prejudice to any obligations or rights on
         the part of either party which have accrued prior to such

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

         termination, and shall not affect or prejudice any provision, of this
         Agreement which is expressly or by implication provided to come into
         effect on, or continue in effect after such termination.

7.11.    Unless otherwise expressly provided herein, upon expiration or
         termination of this Agreement for any reason whatsoever, neither party
         shall be entitled to claim indemnification or compensation on any
         ground whatsoever, including but not limited to loss of investment,
         loss of profit, business goodwill etc. with respect to such expiration
         or termination to the exclusion of damages caused by willful misconduct
         or gross negligence of a party hereto.

7.12.    Pending the conclusion of any Dispute Resolution Procedure or
         arbitration procedure pursuant to the terms hereof, the parties shall
         continue to perform their obligations hereunder to the extent not in
         dispute and no default hereunder shall be deemed to occur until such
         decision is rendered (whereupon any party determined to be in default
         hereunder shall have the benefit of any applicable grace and/or cure
         periods).

ARTICLE 8 - MISCELLANEOUS

8.1.     All notices, requests, demands and other communications required or
         permitted to be given pursuant to this Agreement shall be in writing
         and shall be deemed to have been duly given upon the date of receipt if
         delivered by hand, recognized international overnight courier,
         confirmed facsimile transmission, or registered or certified mail,
         return receipt requested, postage prepaid to the following addresses or
         facsimile numbers:

         If to Memory:                                If to Bayer:

         Memory Pharmaceuticals Corp.                 Bayer AG
         100 Philips Parkway                          D-51368 Leverkusen
         Montvale, New Jersey 07645 / U.S.A.          Germany
         Attention:  Chief Executive Officer          International Cooperation
                                                      and Licensing
                                                      Building:  Q 30
                                                      (++49)-214-30 64840
         Facsimile:  (201) 802-7190

         Either party may change its designated address and facsimile number by
         notice to the other party in the manner provided in this Section.

8.2.     This Agreement shall be governed by and construed in accordance with
         the laws of the Federal Republic of Germany.

8.3.     This Agreement may not be assigned by either party without the prior
         written consent of the other party, except that either party may assign
         this Agreement to any of its Affiliates or to a successor in connection
         with the merger, consolidation, or sale of all or substantially all of
         its assets or that portion of its business pertaining to the subject
         matter of this Agreement, with prompt written notice to the other party
         of any such assignment. This Agreement shall inure to the benefit of
         and be binding upon the parties and their respective lawful successors
         and assigns.

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

8.4.     Nothing in this Agreement shall be construed so as to require the
         commission of any act contrary to law, and wherever there is any
         conflict between any provision of this Agreement and any statute, law,
         ordinance or treaty, the latter shall prevail, but in such event the
         affected provisions of the Agreement shall be conformed and limited
         only to the extent necessary to bring it within the applicable legal
         requirements.

8.5.     This Agreement may be amended, supplemented, or otherwise modified only
         by means of a written instrument signed by both parties. Any waiver of
         any rights or failure to act in a specific instance shall relate, only
         to such instance and shall not be construed as an agreement to waive
         any rights or fail to act in any other instance, whether or not
         similar.

8.6.     Neither party shall be responsible to the other for any failure of
         delay in performing any of its obligations under this Agreement or for
         other non-performance hereof if such delay or non-performance is caused
         by any circumstances unavoidable or beyond the reasonable control of a
         party such as, but not limited to, strike, stoppage of labor, lockout
         or other labor trouble, fire, flood, accident, act of God or of
         government or of the public enemy of a Party ("Force Majeure").

         However, the party affected by such Force Majeure shall use its best
         reasonable efforts to avoid, remove or remedy such circumstances.
         Either party temporarily excused from performance hereunder by such
         circumstances shall resume performance with utmost dispatch when such
         circumstances are removed or remedied. Either party claiming Force
         Majeure as an excuse for delay in performance shall give the other
         party written notice thereof without undue delay as a condition of its
         right to invoke Force Majeure.

8.7.     The provisions of the Secrecy Agreement and the Confidentiality
         Agreement are not affected or modified by this Agreement and shall
         remain unchanged and in force. Notwithstanding the foregoing, the
         parties acknowledge and agree that Memory may contact third party
         contractors in order to establish an ongoing supply of the Compound or
         for other commercial purposes. In connection therewith, Memory may
         disclose Bayer's confidential information to such third party
         contractors for their use in connection therewith. As far as Memory is
         entitled to grant certain rights and licenses to its Affiliates and
         Third Parties under this Agreement, Memory may disclose Bayer's
         confidential information on a need to know basis to such Affiliates and
         Third Parties. Such Affiliates and Third Parties, including third party
         contractors, will however in any case in advance be bound to terms as
         stringent as provided under the Confidentiality Agreement.

8.8.     The parties recognise that disputes as to certain matters may from time
         to time arise during the term of this Agreement which relate to either
         party's rights and/or obligations hereunder. It is the objective of the
         parties to establish a procedure at the level of their executive
         officers (the "Dispute Resolution Procedure") to facilitate the
         resolution of disputes arising under this Agreement in an expedient
         manner by co-operation. To accomplish this objective, the parties agree
         to follow the procedure set forth herein, if and when the parties are
         unable to resolve a dispute within forty-five (45) days of being
         requested by a party to do so. The establishment of the Dispute
         Resolution Procedure shall not be used to override any right
         specifically given to a party, to take action or have final
         decision-making authority on any topic.

         If the parties are unable to resolve a dispute within forty-five (45)
         days of being requested by a Party to do so, either party may initiate
         the Dispute Resolution Procedure by written notice to the other. The
         respective executive officers designated below or their successors,
         shall then attempt to resolve the dispute by good faith negotiations
         within fifteen (15) days after such notice is received. Said designated
         officers are as follows:

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

<PAGE>

                  For Bayer:       Head of Pharmaceuticals Business Group

                  For Memory:      Chief Executive Officer

         In the event that the designated executive officers are not able to
         resolve a dispute in accordance with the Dispute Resolution Procedure
         as set forth hereunder, either party may at any time after such fifteen
         (15) day period proceed with arbitration as provided hereinafter.

8.9.     All disputes arising in connection with this Agreement shall be finally
         settled under the rules of conciliation and arbitration of the
         International Chamber of Commerce by 3 (three) arbitrators appointed in
         accordance with said rules. The arbitration shall be held in the
         English Language. The arbitrators shall determine which party, or the
         extent to which each party, shall bear the costs and expenses of such
         arbitration. The place of arbitration shall be Paris, France. However,
         arbitration may only be requested for by any party following a period
         of thirty (30) days after the Dispute Resolution Procedure pursuant to
         Art. 8.8 has failed. Within this period of thirty (30) days any party
         may file a request for Conciliation to the Secretariat of the
         International Court of Arbitration of the International Chamber of
         Commerce to provide the possibility of settling such dispute in a
         Conciliation under the rules of conciliation of the International
         Chamber of Commerce. The other party is not obliged to accept such
         conciliation. The outcome of the Conciliation is not binding for any
         party and does not exclude any party from entering into an arbitration.

8.10.    In the event that any provision of this Agreement shall, for any
         reason, be held to be invalid or unenforceable in any respect, such
         invalidity or unenforceability shall not affect any other provision
         hereof, and the parties shall negotiate in good faith to modify the
         Agreement to preserve (to the extent possible) their original intent.

8.11.    This Agreement constitutes the entire Agreement between the parties
         with respect to the subject matter hereof and supersedes all prior
         agreements or understandings between the parties relating to the
         subject matter hereof.

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this
Agreement as a sealed instrument effective as of the Effective Date.

Montvale, New Jersey
Date:  June 7, 2001
Memory Pharmaceuticals Corporation

/s/ Joanne M. Leonard
------------------------------------------               ----------------------
Joanne M. Leonard
Chief Financial Officer

Leverkusen, Germany
Date:  June 13, 2001
Bayer AG

/s/ Dr. Brocks                                           /s/ Dr. Kohler
------------------------------------------               ----------------------
Dr. Brocks                                               Dr. Kohler
(International Cooperations and Licensing)               (Patents and Licensing)

                     [*] CONFIDENTIAL TREATMENT IS REQUESTED

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