Document:

exv10w4

 

Exhibit
10.4

ASSET TRANSFER AGREEMENT

     This
Asset Transfer Agreement (this “Agreement”) is made
as of June 23, 2005 by and
between Mindset Biopharmaceuticals (USA), Inc., (hereafter “Assignor”), a corporation existing
under the laws of the State of Delaware, having an office at 535 W. 34th Street, Suite
206A, New York, NY 10001, and Intellect Neurosciences, Inc., a Delaware corporation, having a
place of business at 465 West
23rd Street, Apt I2-J, New York, New
York 10001 (“Assignee”).
Assignor and Assignee are referred to collectively in this Agreement
as the “Parties.” Certain
other capitalized terms used in this Agreement are defined in Section 1 hereto.

     WHEREAS Assignor is the owner or exclusive licensee under the Licenses being assigned
hereunder of the Trademarks, the Patents and Patent Applications, the Know-How, and the Inventions
(collectively the “Assets”).

     WHEREAS, Assignee, is desirous of acquiring the entire right, title and interest of Assignor
in and to said Assets;

     WHEREAS, from time to time on the understanding that the Parties would enter into an agreement
on terms substantially similar to this Agreement, the principal stockholders of Assignee advanced
certain amounts to Assignor to pay filing fees and legal fees with respect to the prosecution of
certain patent rights to prevent the lapse of such patents; and

     WHEREAS, for the consideration set forth below, Assignor wishes to sell, assign, convey and
transfer to Assignee all of the Assignor’s right, title and interest to and in the Assets, all
subject to the provisions of this Agreement as more fully set forth below.

     NOW, THEREFORE, TO ALL WHOM IT MAY CONCERN, BE IT KNOWN, that for good and valuable
consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:

     1. Definitions.

          (a)
“Acceleration Event” means (i) the liquidation, termination of existence,
dissolution or the appointment of a receiver or custodian for the Assignor or any part of its
property if such appointment is not terminated or dismissed within thirty (30) days, (ii) the
institution against the Assignor of any proceedings under the United States Bankruptcy Code or any
other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law
affecting the rights of creditors generally, which proceeding is not dismissed within thirty (30)
days of filing; (iii) the institution by the Assignor of any
proceedings under the United States
Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency
or other similar law affecting the rights of creditors generally or the making by the Assignor of
a composition or an assignment or trust mortgage for the benefit of creditors or (iv) any claim or
proceeding relating to or arising out of or referencing in any way the transactions contemplated by
this Agreement the Ancillary Agreements, or any actions taken by any party in anticipation thereof
(collectively, the “Transactions”), in any forum, against Assignor or any of its current or former
officers, directors, stockholders, agents, representatives, advisors, successors or

 

 

assigns, or Assignee or any of its current or former officers, directors, stockholders,
agents, representatives, advisors, successors or assigns or any party related to the Transactions.

          (b) “Ancillary Agreements” shall have the meaning set forth in Section 4 of
this Agreement.

          (c) “Annex I Claims” shall have the meaning set forth in Section 2 of this
Agreement.

          (d) “Annex II Claims” shall have the meaning set forth in Section 2 of this
Agreement.

          (e) “Annex III Claims” shall have the meaning set forth in Section 2 of
this Agreement.

          (f) “Annex I Claim Reduction” means the initial reduction of the Original
Principal Annex I Amount by 30% at the Effective Date.

          (g)
“ANTISENILIN” means any “free-end
specific” antibody molecule that could be developed under the Patents.

          (h) “Assets” means the Licenses, Patents, Patent Applications, Trademarks, Know-How
and Inventions.

          (i) “Chain” shall have me meaning set forth in Section 2 of this
Agreement.

          (j) “Claims” shall have the meaning set forth in Section 2 of this
Agreement.

          (k) “Claims Milestones” means the First Claims Milestone and the Second Claims
Milestone.

          (l) “Effective Date” means the date on which Assignee acquires at least 90% of
$1,277,438.37 ($1,149,694.53) principal amount of Annex I Claims or such lesser amount as Assignee
agrees to accept in its sole discretion and provides written notice of such acquisition to
Assignor.

          (m) “First Claims Milestone” means a reduction of the Original Principal Annex I
Amount, in addition to the Annex I Claim Reduction, of 10% on June 23, 2007, provided that an
Acceleration Event does not occur before such date.

          (n) “Inventions” means those inventions described in and claimed in the Patents and
Patent Applications.

          (o) “Know-How” means all proprietary inventions, technology, trade secrets, know-how,
procedures, reagents, chemicals, data, and biological materials developed by Assignor or other
information, in each case that relate to the Trademarks, Patents, Patent Applications, Inventions,
Licenses or technology covered by the Licenses and that (a) have been

 

 

reduced to writing or stored electronically or are to another tangible form or (b) relate to
FDA submissions or other regulatory, development or commercialization activities.

          (p)
“Licenses” means those licenses listed on
Schedule A hereto.

          (q)
“Maturity Date” means June 23, 2008.

          (r) “Mindgenix” shall have the meaning set forth in Section 2 of this Agreement.

          (s)
“Mindset Ltd.” shall have the meaning set forth in Section 2 of this Agreement.

          (t) “NYU License” shall have the meaning set forth in Section 3 of this Agreement.

          (u) “Original Principal Annex I Amount” means the aggregate principal amount of the
claims listed on Annex I hereto in the amount of $1,277,438.37.

          (v)
“OXIGON” means Indole-3-propionic acid.

          (w)
“Patents” means those patents identified in
Schedule B attached hereto and all
divisional, continuations, continuations-in-part, reissues, extensions, reexaminations and renewals
of such patents in the US and in all foreign countries.

          (x)
“Patent Applications” means those patent
applications set forth on Schedule C attached hereto.

          (y) “Person” means any individual, corporation, general partnership, limited
partnership, limited liability company, trust, association, firm, organization, company, business,
entity, union, society or governmental body.

          (z) “SAMSF License” shall have the meaning set forth in
Section 3 of this Agreement.

          (aa) “Second Claims Milestone” means a reduction of the Original Principal Annex
I Amount, in addition to the Annex I Claim Reduction and the First
Claims Milestone, by 10% on the Maturity Date, provided that an Acceleration Event does not occur before such date.

          (bb) “Specified Products” means ANTISENILIN and OXIGON.

          (cc) “Taconic Farms Litigation” shall have the meaning set forth in Section 2 of this
Agreement.

          (dd) “Trademarks” means the trademarks and the goodwill symbolized by the trademarks,
set forth on Schedule C attached hereto.

 

 

          (ee)
“Transactions” shall have the meaning set forth in Section 1 of this Agreement.

     2. Sale
and Assignment. On the terms and conditions and other provisions of the
Ancillary Agreements, on the Effective Date, in consideration of:

          (i) Assignee’s agreement to purchase, and reduce the Original Principal Annex I Amount by
30%, provided the foregoing amount shall be 40% if Assignor achieves the First Claims Milestone,
provide further, that the foregoing amount shall be 50% if the Assignor achieves the Second Claims
Milestone, the claims against Assignor set forth on Annex I to this Agreement (the
“Annex I Claims”) and to defer the Assignor’s obligation to pay the remaining balance of
the Annex I Claims until the Maturity Date;

          (ii) Assignee’s agreement to reduce the principal amount of $743,282 by
50%, claims against Assignor set forth on Annex II to this Agreement (the “Annex II
Claims”) and to defer the Assignor’s obligation to pay the remaining balance of the Annex II Claims until
the Maturity Date, all subject to certain on-going discussions between Mindset Biopharmaceuticals
‘ Ltd. (“Mindset Ltd”) and Assignee resulting in the consummation of an agreement, on
certain terms and conditions acceptable to Assignee in its sole and absolute discretion, pursuant
to which Assignee will acquire such Annex II Claims from Mindset Ltd.;

          (iii) Assignee’s
agreement to purchase and to defer Assignor’s obligation
to pay the claims
in the principal amount of at least $1,634,000 listed on Annex III to this Agreement until the
Maturity Date (the “Annex III Claims” and, together with the Annex I
Claims and the Annex II Claims, the “Claims”);

          (iv) Assignee’s
assumption of certain of the indebtedness listed on Annex IV in the
aggregate amount of $1,623,730 and Assignee’s obtainment, on behalf of Assignor, of the release of
all obligations of Assignor relating to such indebtedness, all subject to certain on-going
discussions between each of the respective creditors set forth on
Annex IV and Assignee
resulting in the consummation of agreements between each such creditor and Assignee on such terms
as Assignee shall negotiate with each such creditor in its sole
discretion; provided that the
failure of Assignee to consummate an agreement with any one, more or all of such creditors shall
not constitute a default under this Agreement;

          (v) Assignee’s assumption of certain obligations of Assignor under the Licenses;

          (vi) Assignee’s
agreement use reasonable efforts to cause Daniel Chain (“Chain”),
for a minimum of six (6) months, subject to extension for an additional six months at the option of
the Assignee, to allocate up to 20% of his business time to Assignor
with no further accrual of
salary by Assignor, provided that, notwithstanding the foregoing, the Parties agree that
the failure of the foregoing to occur shall, in no event, constitute a default under this
Agreement;

          (vii) the Assignee’s agreement that, provided that Chain executes an employment
contract with Assignee, substantially in the form attached hereto as
Exhibit A,

 

 

before
October 1, 2005, the Maturity Date shall be extended, day for day, for each day
Chain serves as an employee of the Assignee, subject to the occurrence of an Acceleration
Event;

          (viii) the
amount of $60,405,47 listed on Annex V previously advanced by or on
behalf of Assignee;

          (ix) Assignee’s agreement to execute a Letter Agreement with Mindgenix, Inc. in the form
attached hereto as Exhibit B: and

          (x) Assignee’s agreement to fund up to $10,000 in patent and patent related cost related
to the development of Increasing Bruin Glucose Utilization: (US Patent 09/868,501);
the Assignor (i) agrees to toll the applicable statute of limitations period with respect to
any action or proceeding relating to or arising out of the Claims, and (ii) will sell and
transfer to Assignee and Assignee will purchase from Assignor, all of the following Assets:

          (a) all of Assignor’s rights and interest as of the Effective Date in and to the
Patents;

          (b) all of Assignor’s rights and interest as of the Effective Date in and to the
Patent Applications;

          (c) all of Assignor’s rights and interest as of the Effective Date in and to the
Trademarks;

          (d) all of Assignor’s rights and interests as of the Effective Date in and to the
Licenses;

          (e) all of Assignor’s rights and interest as of the Effective Date in and to the
Know-How relating to any of the other Assets being transferred hereunder;

          (f) all of Assignor’s rights and interest as of the Effective Date in and to the
Inventions; and

          (g) all
finished product inventories, work-in-process inventories, product-in-transit inventories and other inventories of the Assets that are owned by Assignor as of the
Effective Date.

     3. 
Consents. On the Effective Date, Assignor shall deliver the following
consents:

          (a) a consent from New York University for the assignment of that certain
License Agreement dated as of August 10,1998, as amended (the “NYU Licensed”); and

          (b) a consent from South Alabama Medical Science Foundation for the
assignment of that certain Research and License Agreement dated as of August 10, 1998, as
amended (the “SAMSF License”).

 

 

     4. Ancillary
Agreements. On the Effective Date, the Parties shall enter
into the following additional agreements (the “Ancillary Agreements”):

          (a) an Assignment of Patent and Patent Rights in the form attached hereto as
Exhibit C;

          (b) an assignment of Trademarks in the form attached hereto as Exhibit D;

          (c) an
assignment of Licenses in the form attached hereto as Exhibit E;

          (e) if consent to assign the NYU License has not been obtained, a sublicense
to the NYU License, in a form acceptable to Assignee; and

          (f) if consent to assign the SAMSF License has not been obtained, a
sublicense to the SAMSF License, in a form acceptable to Assignee.

     5.
Representations, Warranties and Covenants

          (a) Assignor represents and warrants to Assignee as follows:

               (i) Except as set forth in Section 5(b), as of the Effective Date, Assignor will have good
and valid title to the Assets.

               (ii) Each of the Patents and Patent Applications is owned solely by Assignor, or in the case
of the Licenses, owned by the
licensor(s) and exclusively licensed to Assignor. Assignor has made
available to Assignee copies of the Patents and Patent Applications, and has supplied to Assignee
copies of the patent applications included in the Patents that are not publicly available as of the
date of this Agreement. To Assignor’s knowledge, there are no
intellectual property rights owned or
controlled by any third party necessary to make, use, sell, offer for sale and import the Specified
Products, as they currently exist, other than (A) those intellectual property rights licensed to
Assignor under the Licenses and (B) those rights which are to be transferred, licensed, assigned or
sublicensed to Assignee pursuant to this Agreement or any of the Ancillary Agreements. Seller has
received no written claim of infringement of any intellectual property rights of any Person arising
out of the development, manufacture, use, sale, offer for sale or import of the Specified Products
by Assignor, except for claims of infringement that have been abandoned or resolved. To Assignor’s
knowledge, Assignor has complied with its obligation under 37 CFR §l,56(a) to disclose to the
United States Patent and Trademark Office, during the pendency of any United States patent
application included in the Patents, information known to Assignor to be material to the
patentability of the pending claims in such application. Seller has not granted any Person a
license that is currently in effect in, to or under any of the Patents for any purpose.

               (iii) None of the Patents is involved in any interference or opposition proceeding, and, to
Assignor’s knowledge, no such proceeding is being threatened with respect to any of fee Patents or
Trademarks.

 

 

               (iv) Assignor has disclosed trade secrets of Assignor included in the Know-How only to
Persons that have executed written confidentiality agreements governing the use or disclosure of
such trade secrets, except to the extent Assignor disclosed such information in connection with
making filings related to any Assets or Specified Products with governmental or regulatory
authorities.

               (v) Assignor has required all professional and technical employees who provided services to
Assignor in connection with the Specified Products, the Patents, the Trademarks or the Know-How to
execute agreements under which such employees were required to convey to Assignor ownership of all
inventions and developments conceived or created by them in the coarse of their employment with
Assignor. To Assignor’s knowledge, none of the activities of Assignor’s professional and technical
employees who are providing services to Assignor in connection with
the Specified Products, the Patents, the Trademarks and the Know-How is violating any agreement between any such employees and
their former employers.

          (b) Assignee acknowledges and agrees that the Licenses may be in default and
may have been breached by the Assignor and that the consent of the licensors thereto will be
required for any such assignment of a License, Assignor covenants and agrees to cooperate with
Assignee in seeking to obtain such consents to assign the Licenses and waivers of the License
breaches. The foregoing notwithstanding, Assignee acknowledges and agrees that there is no
assurance that any required consents or waivers under the Licenses listed in Section 3 hereto
will be obtained or that the licensors, even if they do grant such consents or waivers will not
require payments or unfavorable modifications to the Licenses for granting the waivers or consent, and
Assignee shall have no recourse against Assignor in any such event. In the event that such
required consents or waivers under the Licenses listed in Section 3 hereto are obtained,
Assignee hereby assumes all of Assignor’s obligations under such Licenses and hereby indemnifies
Assignor from any liabilities arising under such Licenses.

          (c) In event of an Acceleration Event, all amounts then owed by the Assignor
with respect to the Claims shall become immediately due and payable; provided that, if
no Acceleration Event has occurred on or before December 31, 2013, the Assignee shall extinguish
all obligations of the Assignor arising from or related to the Claims.

     6. Further Assurances. At any time and from time to time after the date hereof, at
the request of the Assignee, and without further consideration, Assignor will execute and deliver such
other instruments of sale, transfer, conveyance, assignment and confirmation as may be reasonably
requested in order to more effectively transfer, convey and assign, to Assignee and to confirm the
Assignee’s title to the Assets and to effectuate and consummate the transactions contemplated in
this Agreement.

     7. Counterparts. This Agreement may be executed in several counterparts, each of
which will constitute an original and all of which, when taken together, will constitute one
agreement.

 

 

     8. No Recourse. The Parties acknowledge and agree that neither shall have recourse
against the officers, directors or stockholders of the other, in their capacity as such, with
respect to the transactions contemplated by this Agreement.

[The remainder of this page is intentionally left blank.]

 

 

     IN
WITNESS WHEREOF, the Parties have caused this Asset Transfer Agreement to be signed as of
the date first written above.

	 	 	 	 	 	 	 
	 	 	Assignor:
	 
	 	 	 	 	 	 
	 	 	MINDSET BIOPHARMACEUTICALS (USA) INC.,
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Chain
 

Name: Daniel Chain
	 	 
	 

	 	 	 	Title: President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	Assignee:
	 
	 	 	 	 	 	 
	 	 	INTELLECT
NEUROSCIENCES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark S. Germain	 	 
	 

	 	 	 	 

Name: Mark S. Germain	 	 
	 

	 	 	 	Title: Vice Chairman	 	 

 

 

Schedule A

Licenses and Licensed Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PATENT	 	PATENT	 	FILE/GRANT	 	 
	NAME	 	PATENT TITLE	 	COUNTRY	 	APPL NO	 	NO	 	DATE	 	Ownership
	 
	MELATONIN

	 	Use of Melatonin
to Prevent Cytotoxic
Effects of
Amyloid Beta
Protein
	 	USA
	 	 	 	 	 	 	5,958,964	 	 	09-28-1999
	 	New York University
and the University
of South
Alabama. Exclusively
licensed to
Mindset, August
10, 1998.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MELATONIN

	 	Melatonin Method
for Delaying the
Onset of Alzheimer’s Disease and for
Treatment or
Delaying the Onset
of Other
Amyloidosis- Related
Diseases/
Disorders
	 	USA
	 	 	 	 	 	 	6,274,615	 	 	08-14-2001
	 	New York University
and the University
of South Alabama.
Exclusively licensed
to Mindset, August
10, 1998.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	OXIGON®

* Manufacturing
process, improvements
and
materials:
developed
under Service
Agreement with
Carbogen from June 2002.

	 	Uses For
lndole-3-Propionic
Acids and Salts
and Esters
Thereof
	 	USA
	 	 	 	 	 	 	6,395,768	 	 	05-28-2002
	 	New York University
and the University
of South Alabama.
Exclusively
licensed to
Mindset, August 10,
1998.
	 

	 	 	 	Australia
	 	 	 	 	 	 	757,925	 	 	06-26-2003	 	 
	 

	 	 	 	New Zealand
	 	 	 	 	 	 	506,260	 	 	08-9-2003	 	 
	 

	 	 	 	India
	 	 	 	 	 	 	193,892	 	 	08-28-2004	 	 
	 

	 	 	 	China
	 	 	 	 	 	 	153168	 	 	04-28-2004	 	 
	 

	 	 	 	Eurasia
	 	 	 	 	 	 	5244	 	 	12-30-2004	 	 
	 

	 	 	 	Hong Kong
	 	 	 	 	 	 	1,036,588	 	 	02-25-2005	 	 
	 

	 	 	 	Brazil
	 	PI9908165-2
	 	 	 	 	 	02-23-1999	 	 
	 

	 	 	 	Canada
	 	 	2,321,455	 	 	 	 	 	 	02-23-1999	 	 
	 

	 	 	 	Europe
	 	 	99908381.9	 	 	 	 	 	 	02-23-1999	 	 
	 

	 	 	 	Israel
	 	 	137848	 	 	 	 	 	 	02-23-1999	 	 
	 

	 	 	 	Japan
	 	 	2000-532118	 	 	 	 	 	 	02-23-1999	 	 
	 

	 	 	 	Mexico
	 	 	8216	 	 	 	 	 	 	 	 	02-23-1999

 

 

Schedule B

Patents and Patent Applications

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NAME	 	PATENT TITLE	 	COUNTRY	 	 	PATENT APPL NO	 	PATENT NO	 	FILE/GRANT DATE	 	 
	 
	ANTISENILIN®

	 	DNA Encoding
Recombinant Antibody
Molecules End-Specific
For Amyloid -Beta
Peptides Pharmaceutical
Compositions and
Methods of Use Thereof
	 	USA
	 	 	60/041,850	 	 	expired
	 	4/9/1997	 	 
	 

	 	 	 	PCT/USA
	 	 	PCT/US98/06900
	 	expired
	 	4/9/1998	 	 
	 

	 	 	 	Australia
	 	 	 	 	 	743827	 	 	 	5/23/2002	 	 
	 

	 	 	 	Canada
	 	 	2286305	 	 	 	 	 	 	4/9/1998	 	 
	 

	 	 	 	China
	 	 	 	 	 	CN1177616	 	 	12/1/2004	 	 
	 

	 	 	 	Europe
	 	 	9818035.1	 	 	 	 	 	 	4/9/1998	 	 
	 

	 	 	 	Israel
	 	 	132262	 	 	 	 	 	 	4/9/1998	 	 
	 

	 	 	 	Japan
	 	 	543043/1998	 	 	 	 	 	 	4/9/1998	 	 
	 

	 	 	 	New Zealand
	 	 	 	 	 	337765	 	 	 	5/23/2002	 	 
	 

	 	Specific
Antibodies To Amyloid
Peptide Beta,
Pharmaceutical
Compositions and
Methods of Use
Thereof
	 	USA
	 	 	10/084,380	 	 	 	 	 	 	2/28/2002	 	 
	 

	 	 	 	PCT/USA
	 	 	PCT/US02/31590
	 	expired
	 	10/21/2002	 	 
	 

	 	 	 	Australia
	 	 	2002367734	 	 	 	 	 	 	10/21/2002	 	 
	 

	 	 	 	China
	 	 	 	 	 	 	 	 	 	10/21/2002	 	 
	 

	 	 	 	Europe
	 	 	2807019.1	 	 	 	 	 	 	10/21/2002	 	 
	 

	 	 	 	Japan
	 	 	2003-572597	 	 	 	 	 	 	10/21/2002	 	 
	 

	 	 	 	South Africa
	 	 	2004/9186	 	 	 	 	 	 	10/21/2002	 	 
	RECAL-VAX

	 	Chimeric Peptides
as Immunogens
Antibodies Thereto, and
Methods for
lmmunization Using
Chimeric Peptides or
Antibodies
	 	USA
	 	 	60/169,687	 	 	expired
	 	12/8/1999	 	 
	 

	 	 	 	USA
	 	 	09/731,899	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	PCT
	 	 	PCT/US00/33203
	 	expired
	 	12/8/2000	 	 
	 

	 	 	 	Australia
	 	 	27256/01	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	Canada
	 	 	2393763	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	China
	 	 	8181373	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	Europe
	 	 	990195	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	Israel
	 	 	149976	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	Japan
	 	 	2001-543601	 	 	 	 	 	 	12/8/2000	 	 
	 

	 	 	 	New Zealand
	 	 	 	 	 	519624	 	 	 	5/10/2004	 	 
	 

	 	 	 	South Africa
	 	 	 	 	 	2002/5032	 	 	 	11/26/2003	 	 
	EP-TEST

	 	Peptides and
Methods of Screening
Immunogenic Peptide
Vaccines Against
Alzheimer’s Disease in
which T-Cell Epitopes
are Reduced
	 	USA
	 	 	10/619,454	 	 	 	 	 	 	7/16/2003	 	 
	 

	 	 	 	USA
	 	 	60/396,245	 	 	expired
	 	7/17/2002	 	 
	 

	 	 	 	PCT
	 	 	PCT/US03/22280
	 	 expired
	 	7/16/2003	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NAME	 	PATENT TITLE	 	COUNTRY	 	PATENT APPL NO	 	PATENT NO	 	FILE/GRANT DATE	 	 
	 
	 

	 	 	 	Australia
	 	 	2003256578	 	 	 	 	 	 	7/16/2003	 	 
	 

	 	 	 	Canada
	 	 	2493119	 	 	 	 	 	 	7/16/2003	 	 
	 

	 	 	 	Europe
	 	 	3764759.1	 	 	 	 	 	 	7/16/2003	 	 

 

 

Schedule C

Trademarks

1. ANTISENILIN®

2. OXIGON®

 

 

Annex I

Claims

	 	 	 	 	 	 	 	 	 
	CREDITOR NAME	 	ADDRESS	 	SERVICE PROVIDED	 	 	$ AMOUNT	 
	 
	Appleyard Lees Ltd

	 	Hugh-Sherrard
Smith Esq.,

Appleyard Lees Ltd, 5th Floor,
8 St
Paul’s Street,
Leeds, LSI
 2LE,
United Kingdom
	 	Trademarks
	 	 	15,013.00	 
	 
	 	 	 	 	 	 	 	 
	Browdy & Neimark PLLC

	 	Roger. L
Browdy Esq, Browdy & Neimark 
PLLC, 624
Ninth 
Street, N.W.,
Washington DC

2001-5303
U.SA.
	 	Patents
	 	 	19,815.00	 
	 
	 	 	 	 	 	 	 	 
	Cerebricom Oy Ltd

	 	c/o Issac
Jabbour Esq, D&B

International
Receivable

Management Services
305 
Fellowship Road
Suite 100, Mt.

Laurel, NJ 08054,
Cerebricom 
Oy Ltd,
(Microkatu 1, 70210

Kuopio,
Finland)
	 	OXIGON Testing
	 	 	26,156.36	 
	 
	 	 	 	 	 	 	 	 
	Cerep S.A.

	 	Ms Francoise
POIRAULT,

Administrative
Affairs 
Manager, Le
Boi Leveque B.P.

86600 CELLE
L’EVESCAUT
FRANCE
	 	OXIGON Testing
	 	 	35,978.00	 
	 
	 	 	 	 	 	 	 	 
	Eitan Law Group

	 	11 Hamenofim 

Street Ackerstein
Tower B 
P.O. Box
2081 
Herzlia
Industrial Zone,
46120 

Israel
	 	Patents
	 	 	76,212.00	 
	 
	 	 	 	 	 	 	 	 
	Professor Zelig Eshar, Ph.D

	 	Professor
and Head of

Department,
Department of

Immunology,
Rebovot, 76100,
Israel
	 	Consulting
	 	 	10,000.00	 
	 
	 	 	 	 	 	 	 	 
	Finorga S.A.

	 	Ms.
Veronique
Rossilhol, 
Finorga
SA, 497 Route de

Givors, BP 9 38670
Chasse sur 
Rhõne,
France
	 	OXIGON

Manufacture
	 	 	20,000.00	 
	 
	 	 	 	 	 	 	 	 
	Gregory Fryer Associates Ltd

	 	Ms. Sarah
Fryer, Gregory
Fryer 
Associates
Ltd, e-space south,

St. Thomas
Place, Cambridgeshire Business
Park, 
Ely, Cambridge CB7 4EX

United Kingdom
	 	European

Regulatory
	 	 	7,498.44	 

 

 

	 	 	 	 	 	 	 	 	 
	CREDITOR NAME	 	ADDRESS	 	SERVICE PROVIDED	 	 	$ AMOUNT	 
	 
	Goulston
& Storrs LLP*

* the balance the claim is
being treated under Annex
IV.

	 	Steven J. Snyder, Esq.,

Goulston & Storrs LLP, 400

Atlantic Avenue Boston,

Massachusetts 02110-3333

USA
	 	US Legal
	 	 	274,422.00	 
	 
	 	 	 	 	 	 	 	 
	Anthony P Hart Associates Ltd

	 	Mr. Anthony P. Hart,

“Seagulls”, 3 Chelmswood 
Avenue,
Goring-by-Sea,
Sussex, BN12 4QP,
United Kingdom
	 	OXIGON

Consulting
	 	 	3,629.00	 
	 
	 	 	 	 	 	 	 	 
	Huntingdon Life Sciences 

Ltd

	 	Ms. Beth James, Credit
Control 
Manager (HLS),
Huntingdon,
 Research Centre,
Woolley 
Road, Alconbury,
Huntingdon, 
Cambridgeshire PE28
4HS
 United Kingdom
	 	OXIGON Testing
	 	 	54,417.00	 
	 
	 	 	 	 	 	 	 	 
	Kendle Utrecht

	 	Annette Boersen, Business

Development Executive,

Kendle Clinical
Pharmacology 
Unit,
Bolognalaan 40, 3584 CJ 
Utrecht,
The Netherlands
	 	OXIGON Clinical

Preparations
	 	 	224,264.00	 
	 
	 	 	 	 	 	 	 	 
	Kost Forer Gabbay &
Kasierer — Ernst & Young

	 	Mr. Yoram Wilamowski 
3
Aminadav St., 
Tel - Aviv, 67067

Israel
	 	U.S. Accounting
	 	$	19329.50	 
	 
	 	 	 	 	 	 	 	 
	King’s College
London

	 	9th Floor, Capital House,
42, 
Weston Street, London SB1

3QD
	 	BrainSelect

terminated license
	 	 	211,345.00	 
	 
	 	 	 	 	 	 	 	 
	Miller, Canfield,
Paddock AND Stone,
P.LL.C.

	 	Geoffrey M. Chinn, Miller

Canfield, 1450, Broadway, 41st

Floor, New York, New York 

10018
	 	US Legal
	 	 	4,243.00	 
	 
	 	 	 	 	 	 	 	 
	NHR Associates Ltd.

	 	Norman H Rogers PhD, ARCS,

FRSC, Technical Director, 22
  NHR
Associates Ltd, Comptons
  Lane,
Horsham, West Sussex 
RH13 5NY, United Kingdom
	 	OXIGON

Consulting
	 	 	8,539.67	 

 

 

	 	 	 	 	 	 	 	 	 
	CREDITOR NAME	 	ADDRESS	 	SERVICE PROVIDED	 	 	$ AMOUNT	 
	 
	Nupharm Laboratories Ltd

	 	Steve Tickle, NuPharm,
2 
Newtech Square Deeside

Industrial Park, Flintshire
CH5 
2NT United Kingdom
	 	OXIGON Formulation
	 	 	6,618.18	 
	 
	 	 	 	 	 	 	 	 
	Ropes & Gray LLP

	 	Paul M. Kinsella,
Ropes & 
Gray, One
International Place,
 Boston,
MA 02110-2624
	 	US Legal
	 	 	91,979.00	 
	 
	 	 	 	 	 	 	 	 
	Palmer & Dodge LLP

	 	Edward J. McClelland,
Palmer 
& Dodge, Receivables

Manager, 111 Huntington

Avenue at Prudential
Center
	 	US Legal
	 	 	23,434.00	 
	 
	 	 	 	 	 	 	 	 
	Perelson
Weiner LLP

	 	Rita Ng, Perelson
Weiner, One
 Dag Hammarskjold
Plaza, New 
York, NY
10017-2286
	 	US Accounting
	 	 	10,210.00	 
	 
	 	 	 	 	 	 	 	 
	Prova (R&D) LTD

	 	J.M. Rennie, Prova,
Units 1-4, 
Craven Court,
Stanhope Road,
 Camberley,
Surrey, GU15 
3BW, United
Kingdom
	 	OXIGON Formulation
	 	 	39,807.92	 
	 
	 	 	 	 	 	 	 	 
	Salamandra LLC

	 	Karin. K. Kook, Ph.D. 

Managing Director, 
Salamandra,
4600, Park 
Avenue Suite 100,
 Chevy  

Chase, MD, USA  20815
	 	FDA Regulatory
	 	 	101,068.92	 
	 
	 	 	 	 	 	 	 	 
	Taylor Wessing LTD.

	 	Simon Walker, 24 Hills
Road 
Taylor Wessing,
Cambridge 
CB2 IJW United
Kingdom
	 	UK Legal
	 	 	915.00	 
	 
	 	 	 	 	 	 	 	 
	 
	TOTAL Reductions
below Assignee (NewCo) & Assignor (OldCo)	1,277,438.37	 
	 
	 
	 	 	 	 	 	 	 	 
	30% Reduction Inc. Trade

	 	 	 	 	 	 	383,231.51	 
	 
	 	 	 	 	 	 	 	 
	Balance Remaining =

	 	 	 	 	 	 	894,206.86	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	40% Reduction Inc. Trade

	 	 	 	 	 	 	510,975.35	 
	 
	 	 	 	 	 	 	 	 
	Balance Remaining =

	 	 	 	 	 	 	766,463.02	 
	 
	 	 	 	 	 	 	 	 
	 

 

 

	 	 	 	 	 	 	 	 	 
	CREDITOR NAME	 	ADDRESS	 	SERVICE PROVIDED	 	 	$ AMOUNT	 
	 
	 
	 	 	 	 	 	 	 	 
	50% Reduction Inc. Trade

	 	 	 	 	 	 	638,719.19	 
	 
	 	 	 	 	 	 	 	 
	Balance Remaining =

	 	 	 	 	 	 	638,719.19	 
	 
	 	 	 	 	 	 	 	 
	 

 

 

Annex II

Claims

	 	 	 	 	 	 	 	 	 
	CREDITOR NAME	 	ADDRESS	 	SERVICE PROVIDED	 	 	$ AMOUNT	 
	 
	Mindset 

BioPharmaceuticals 

Ltd

	 	c/o Joseph
Avneri, Fohman

Avneri & Co.,38
Keren 
Hayesod St
Jorusalem 92-149

Israel
	 	Research and
Development
	 	 	743,282.00	 
	 
	TOTAL

	 	 	 	 	 	 	743,282.00	 
	 
	 
	 	 	 	 	 	 	 	 
	50% Reduction
Ltd. Trade

	 	 	 	 	 	 	371,641.00	 
	 
	 	 	 	 	 	 	 	 
	Balance Remaining =

	 	 	 	 	 	 	371,641.00	 
	 
	 	 	 	 	 	 	 	 
	 

 

 

Annex
III

Claims

	 	 	 	 	 
	CREDITOR
NAME
	 	 	$ AMOUNT	 
	 
	 
	 	 	 	 
	Daniel Chain Loans

	 	 	280,000.00	 
	Daniel Chain Salary*

	 	 	330,000.00	 
	Mindset Limited Loans

	 	 	375,000.00	 
	Mark Germain**

	 	 	649,000.00	 
	 
	 
	TOTAL LIABILITY

	 	 	1,634,000.00	 
	 

	 		
	*	 	To have been paid out of future financing of Assignor
	 
	**	 	Reflects amount accrued by Assignor; Mark Germain claims a
larger amount is owed.

 

 

Annex IV

Claims

	 	 	 	 	 	 	 	 	 
	CREDITOR NAME	 	ADDRESS	 	SERVICE PROVIDED	 	 	$ AMOUNT	 
	 
	Goulston & Storrs LLC

	 	Steven J. Snyder,
Esq., 400 
Atlantic Avenue
Boston, 
Massachusetts 0211 0-3333
	 	US Legal
	 	 	192,095.00	 
	 
	 	 	 	 	 	 	 	 
	MPI Research, Inc.

	 	Andy Dumpis, CAO,
Treasurer,
 54943 North
Main Street, 
Mattawan, MI
49071 -9399  

USA
	 	OXIGON Testing
	 	 	92,000.00	 
	 
	 	 	 	 	 	 	 	 
	CarboGen Holding AG

	 	Dr. Michael
Ahrweiler,
 Schachenallee
29, CH-5001 
Aarau,
Switzerland
	 	OXIGON

Manufacture
	 	 	223,500.00	 
	 
	 	 	 	 	 	 	 	 
	New York University

	 	Abram M. Goldfinger,

Executive Director,
Industrial

Liaison/Technology
Transfer,
 New York
University, 650 First

Avenue, 6th
 Floor, New York,

 NY 10016
	 	Beta-Vax

Terminated License
	 	 	291,135.00	 
	 
	 	 	 	 	 	 	 	 
	Institute for the Study
of Aging

	 	Sue Reynolds, ISOA,
1414 
Avenue of the
Americas Suite
1502, New
York, NY 10019
	 	OXIGON Testing
	 	 	570,000.00	 
	 
	 	 	 	 	 	 	 	 
	Wind River Partners
LLC*

	 	Harvey L. Kellman,
Managing 
Director, Wind
River Partners,
 LLC, P.O.
Box 344, Morris 
Plains, New
Jersey 07950
	 	Consulting
	 	 	255,000.00	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	TOTAL

	 	 	 	 	 	 	1,623,730.00	 
	 

	 		
	*	 	Accrued unpaid monthly retainer

 

 

Annex V

Claims

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	$ AMOUNT
	PAYEE	 	DATE	 	SERVICE	 	PAID
	 
	Advance for payment of MindGenix Otsuka
Study

	 	2/23/2005
	 	MindGenix
	 	 	25,000.00	 
	Eitan Pearl Latzer Cohen Zedek LLP

	 	3/2/2005
	 	Patents	 	 	775.00	 
	Premium Assignment

	 	3/21/2005
	 	D&O Insurance
	 	 	814.79	 
	Premium Assignment

	 	3/21/2005
	 	D&O Insurance
	 	 	814.79	 
	Pearl Cohen Zedek .

	 	4/7/2005
	 	Patents
	 	 	1,246.05	 
	Dr. Cheryl-Fitzer Attas

	 	4/15/2005
	 	Patents
	 	 	2,000.00	 
	Browdy & Neimark

	 	5/4/2005
	 	Patents
	 	 	1,430.00	 
	Premium Assignment

	 	5/13/2005
	 	D&O Insurance
	 	 	4,289.46	 
	Pearl Cohen Zedek

	 	5/23/2005
	 	Patents
	 	 	1,258.91	 
	Office Suite Office Group

	 	5/7/2005
	 	Rent
	 	 	1,606.00	 
	State Insurance Fund

	 	5/7/2005
	 	Employee Disability
	 	 	1,957.88	 
	Premium Assignment

	 	5/10/2005
	 	D&O Insurance
	 	 	2,236.29	 
	Pearl Cohen Zedek

	 	6/7/2005
	 	Patents
	 	 	16,976.30	 
	 
	Total paid for Mindset/MindGenix Benefit =

	 	 	 	 	 	 	60,405.47exv10w5

 

Exhibit 10.5

Confidential Treatment has been requested

for portions of this document marked with asterisks.

LICENSE AGREEMENT

     This Agreement, effective as of August 10, 1998 (the “Effective Date”), is by and between:

     New York University (hereinafter “NYU”), 550 First Avenue, New York, N.Y. 10016

AND

     Mindset Limited (hereinafter “CORPORATION”), a corporation organized and existing under the
laws of the British Virgin Islands, having an office at 1 Beit Eshel St., Old Katamon, Jerusalem
93227, ISRAEL.

RECITALS

     WHEREAS, Dr. Miguel A. Pappolla (hereinafter “the SAMSF Scientist”) of The South Alabama
Medical Science Foundation (“SAMSF”) and/or Dr. Blas Frangione and Dr. Jorge Ghiso (hereinafter
“the NYU Scientists”) have made certain inventions relating to use of melatonin and melatonin
analogs in the prevention or treatment of amyloid-related disorders and in the use of melatonin
analogs as anti-oxidants, all as more particularly described in pending U.S. patent applications
owned by SAMSF and/or NYU, identified in annexed Appendix I and forming an integral part hereof
(hereinafter “the Pre-Existing Inventions”);

     WHEREAS, by a Research and License Agreement made as of the tenth day of August 1998 between
SAMSF and Corporation (the “SAMSF Agreement”), SAMSF has agreed to undertake the Research Project
(as hereinafter defined);

     WHEREAS, subject to the terms and conditions hereinafter set forth, NYU is willing to grant to
CORPORATION and CORPORATION is willing to accept from NYU the License (as hereinafter defined);

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the
parties hereto hereby agree as follows:

     1. Definitions

     a. “Calendar Year” shall mean any consecutive period of twelve months commencing on the first
day of January of any year.

     b. “Corporation Entity” shall mean any company or other legal entity which controls, or is
controlled by, or is under common control with, CORPORATION; control means the holding of twenty
five and one tenth percent (25.1%) or more of (i) the capital and/or (ii) the voting rights and/or
(iii) the right to elect or appoint directors.

     c. “Date of First Commercial Sale” shall have the meaning set forth in Section 6.a. hereof.

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

     d. “Field” shall mean research, development and testing within pharmaceutical,
biotechnological and diagnostic development programs in the field of Alzheimer’s Disease and other
central nervous system and neurodegenerative diseases, and in the field of all other possible
utilities for melatonin analogs.

     e. “License” shall mean the exclusive worldwide license to practice NYU’s share in the
University Research Technology (as hereinafter defined) for the development, manufacture, use and
sale of the Licensed Products (as hereinafter defined).

     f. “Licensed Products” shall mean all products, drugs, diagnostic reagents, diagnostic
methods, therapeutic agents and therapeutic methods covered by a claim of any unexpired UNIVERSITY
Patents (as hereinafter defined) which has not been disclaimed or held invalid by a court of
competent jurisdiction from which no appeal has been or can be taken.

     g. “Net Sales” shall mean the total amount invoiced in connection with sales of the Licensed
Products to any person or entity that is not a Corporation Entity or a licensee or sublicensee of
CORPORATION or a Corporation Entity, after deduction of all of the following to the extent
applicable to such sales:

	 	i)	 	all trade, case and quantity credits, discounts, refunds or
rebates;
	 
	 	ii)	 	allowances or credits for returns;
	 
	 	iii)	 	sales commissions; and
	 
	 	iv)	 	sales taxes (including value-added tax).

     h. “University Know-How” shall mean the Pre-Existing Inventions and any information and
materials including, but not limited to, pharmaceutical, chemical, biological and biochemical
products, technical and non-technical data, materials, methods and processes and any drawings,
plans, diagrams, specifications, software, and/or other documents containing such information,
discovered, developed or acquired by, or on behalf of students or employees of SAMSF pursuant to
the SAMSF Agreement during the term and in the course of the Research Project, with the exception
of any such know-how which is Corporation Know-How as hereinafter defined.

     i. “CORPORATION Know-How” shall mean any information and materials including, but not limited
to, pharmaceutical, chemical, biological and biochemical products, technical and non-technical
data, materials, methods and processes and any drawings, plans, diagrams, specification, software
and/or other documents containing such information discovered, developed or acquired by, or on
behalf of students or employees of Corporation during the term and in the course of the Research
Project.

     j. “UNIVERSITY Patents” shall mean all United States and foreign patents and patent
applications, and any divisions, continuations, in whole or in part, reissues, renewals and
extensions thereof, and pending applications therefor:

- 2 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	(1)	 	which claim Pre-Existing Inventions and which are identified on
annexed Appendix I; or
	 
	 	(2)	 	which claim inventions that are made, in whole or in part, by
students or employees of SAMSF during the term and in the course of the
Research Project;

with the exception of all such patents which are CORPORATION Patents as hereinafter defined.

     k. “CORPORATION Patents” shall mean all United States and foreign patents and patent
applications, and any divisions, continuations, in whole or in part, reissues, renewals and
extensions thereof, and pending applications therefor which claim inventions that are made, in
whole or in part, by students or employees of CORPORATION.

     l. “Payment Term” shall mean the period of time commencing on the Effective Date and
continuing on a country-by-country basis, if not previously terminated under the terms of this
Agreement, for fifteen (15) years) from the Date of First Commercial Sale in such country or until
the expiration date of the last to expire of the UNIVERSITY Patents, whichever shall be later.

     m. “Research Project” shall mean the investigations at SAMSF during the Research Period into
the Field under the supervision of the SAMSF Scientist in accordance with the research program,
described in annexed Appendix II, which forms an integral part hereof.

     n. “Research Technology” shall mean all UNIVERSITY Patents, UNIVERSITY Know-How, CORPORATION
Patents and CORPORATION Know-How.

     o. “CORPORATION Research Technology” shall mean all CORPORATION Patents and all CORPORATION
Know-How.

     p. “UNIVERSITY Research Technology” shall mean all UNIVERSITY Patents and all UNIVERSITY
Know-How.

     2. Effective Date

     This Agreement shall be effective as of the Effective Date and shall remain in full force and
effect until it expires or is terminated in accordance with Section 15 hereof.

3. Title

     a. It is hereby agreed that all right, title and interest, in and to the CORPORATION Research
Technology, and in and to any drawings, plans, diagrams, specifications, software, and other
documents containing any of the CORPORATION Research Technology shall vest solely in CORPORATION.

     b. Subject to the License granted to CORPORATION hereunder, it is hereby agreed that all
right, title and interest, in and to the UNIVERSITY Research Technology, and in and to

- 3 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

any drawings, plans, diagrams, specifications, software, or other documents containing any of
the UNIVERSITY Research Technology, shall vest solely in SAMSF and/or NYU.

     4. Patents and Patent Applications

     a. At the initiative of CORPORATION or NYU, the parties shall consult with each other
regarding the prosecution of all patent applications with respect to the University Research
Technology. Any patent applications relating to the Pre-Existing Inventions shall be filed,
prosecuted and maintained by Jaeckle, Fleischmann & Mugel, LLP or such other patent counsel
selected by SAMSF and CORPORATION. All other patent applications shall be filed, prosecuted and
maintained by the law firm of Browdy and Neimark or by other patent counsel jointly selected by NYU
and CORPORATION. Copies of all such patent applications and patent office actions shall be
forwarded to each of NYU and CORPORATION. NYU and CORPORATION shall each also have the right to
have such patent applications and patent office actions independently reviewed by other patent
counsel separately retained by SAMSF, NYU or CORPORATION, upon prior notice to and consent of the
other parties, which consent shall not unreasonably be withheld and at the cost of the party
retaining such counsel.

     b. Upon prior written approval by CORPORATION, all applications and proceedings with respect
to the UNIVERSITY Patents shall be filed, prosecuted and maintained by SAMSF and/or NYU at the
expense of CORPORATION. Against the submission of invoices, CORPORATION shall reimburse NYU for
all costs and fees incurred by NYU during the term of this Agreement, in connection with the
filing, maintenance, prosecution and protection and the like of the UNIVERSITY Patents.

     c. NYU and CORPORATION shall assist, and cause their respective employees and consultants to
assist, each other in assembling inventorship information and data for the filing and prosecution
of patent applications on inventions pertaining to the Research Technology.

     d. If, at any time during the term of this Agreement, CORPORATION decides that it is
undesirable, as to one or more countries, to prosecute or maintain any patents or patent
applications within the UNIVERSITY Patents, it shall give prompt written notice thereof to NYU, and
upon receipt of such notice, CORPORATION shall be released from its obligations to bear all of the
expenses to be incurred thereafter as to such countries in conjunction with such patent(s) or
patent application(s) and such patent(s) or application(s) shall be deleted from the Research
Technology and subject to the rights of SAMSF in relation thereto NYU shall, be free to grant
rights in and to such subject matter deleted from the Research Technology in such countries to
third parties, without further notice or obligation to CORPORATION, and the CORPORATION shall have
no rights whatsoever to exploit such subject matter deleted from the Research Technology in such
countries.

     e. Nothing herein contained shall be deemed to be a warranty by NYU

	 	i)	 	that NYU can or will be able to obtain any patent or patents on
any patent application or applications in the UNIVERSITY Patents or any portion
thereof, or that any of the UNIVERSITY Patents will afford adequate or
commercially worthwhile protection, or

- 4 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	ii)	 	that the manufacture, use, or sale of any element of the
University Research Technology or any Licensed Product will not infringe any
patent(s) of a third party.

     5. Grant of License

     a. Subject to the terms and conditions hereinafter set forth and subject to all United States
Government rights whether now existing or to arise after the date hereof, NYU hereby grants to
CORPORATION and CORPORATION hereby accepts from NYU the License.

     b. The License granted to CORPORATION in Section 5.a. hereof shall commence upon the Effective
Date and shall remain in force on a country-by-country basis, if not previously terminated under
the terms of this Agreement, for fifteen (15) years from the Date of First Commercial Sale in such
country or until the expiration date of the last to expire of the UNIVERSITY Patents whichever
shall be later.

     c. CORPORATION shall be entitled to grant sublicenses under the License on terms and
conditions in compliance and not inconsistent with the terms and conditions of this Agreement
(except that the rate of royalty may be at higher rates than those set forth in this Agreement) (i)
to a Corporation Entity or (ii) to other third parties for consideration and in an arms-length
transaction. All sublicenses shall only be granted by CORPORATION under a written agreement, a
copy of which shall be provided by CORPORATION under a written agreement, a copy of which shall be
provided by CORPORATION to NYU as soon as practicable after the signing thereof. Each sublicense
granted by CORPORATION hereunder shall be subject and subordinate to the terms and conditions of
this License Agreement and shall contain (inter-alia) the following provisions:

	 	(1)	 	the sublicense shall expire automatically on the termination of
the License;
	 
	 	(2)	 	the sublicense shall not be assignable, in whole or in part;
	 
	 	(3)	 	the sublicensee shall not grant further sublicenses; and
	 
	 	(4)	 	both during the term of the sublicense and thereafter the
sublicensee shall agree to a confidentiality obligation similar to that imposed
on CORPORATION in Section 8 below, and that the sublicensee shall impose on its
employees, both during the terms of their employment and thereafter, a similar
undertaking of confidentiality; and
	 
	 	(5)	 	the sublicense agreement shall include the text of Sections 13
and 14 of this Agreement and shall state that NYU is an intended third party
beneficiaries of such sublicense agreement for the purpose of enforcing such
indemnification and insurance provisions.

     6. Payments for License

     a. In consideration for the License granted herein, and during the Payment Term, with respect
to each Licensed Product, CORPORATION shall pay to NYU a royalty of *** of

- 5 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

the Net Sales of CORPORATION or of Corporation Entity or of a licensee or sublicensee of
CORPORATION or Corporation Entity. CORPORATION shall inform NYU in writing of the Date of First
Commercial Sale with respect to each Licensed Product in each country as soon as practicable after
making of each such first commercial sale.

     b. For the purpose of computing the royalties due to NYU hereunder, the year shall be divided
into two parts ending on June 30 and December 31. Not later than ninety (90) days after each
December and June in each Calendar Year during the Payment Term, CORPORATION shall submit to NYU a
full and detailed report of royalties or payments due NYU under the terms of this Agreement for the
preceding half year (hereinafter “the Half-Year Report”), setting forth the Net Sales upon which
such royalties are computed and including at least

	 	i)	 	the quantity of Licensed Products used, sold, transferred or
otherwise disposed of;
	 
	 	ii)	 	the selling price of each Licensed Product and Assigned
Product;
	 
	 	iii)	 	the deductions permitted under subsection 1.g. hereof to arrive
at Net Sales; and
	 
	 	iv)	 	the royalty computations and subject of payment.

If no royalties or other payments are due, a statement shall be sent to NYU stating such fact.
Payment of the full amount of any royalties or other payments due to NYU for the preceding half
year shall be made on even date with each Half-Year Report on royalties and payments. CORPORATION
shall keep for a period of at least six (6) years after the date of entry, full, accurate and
complete books and records consistent with sound business and accounting practices and in such form
and in such detail as to enable the determination of the amounts due to NYU from CORPORATION
pursuant to the terms of this Agreement.

     c. Within ninety (90) days after the end of each Calendar Year, commencing on the Date of
First Commercial Sale CORPORATION shall furnish NYU with a report (hereinafter “the Annual
Report”), certified by the President or Chief Financial Officer of CORPORATION relating to the
royalties and other payments due to NYU pursuant to this Agreement in respect of the Calendar Year
covered by such Annual Report and containing the same details as those specified in Section 7.b.
above in respect of the Half-Year Report.

     d. On reasonable notice and during regular business hours, NYU or the authorized
representative of NYU shall each have the right to inspect the books of accounts, records and other
relevant documentation of CORPORATION or of Corporation Entity and the licensees or sublicensees of
CORPORATION insofar as they relate to the production, marketing and sale of the Licensed Products,
in order to ascertain or verify the amount of royalties and other payments due to NYU hereunder,
and the accuracy of the information provided to NYU in the aforementioned reports.

- 6 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

     7. Method of Payment

     a. Royalties and other payments due to NYU hereunder shall be paid to NYU in United States
dollars. Any such royalties on or other payments relating to transactions in a foreign currency
shall be converted into United States dollars based on the closing buying rate of the Morgan
Guaranty Trust Company of New York applicable to transactions under exchange regulations for the
particular currency on the last business day of the accounting period for which such royalty or
other payment is due.

     8. Confidential Information

     a. Except as otherwise provided in Section 8.c. and Section 9 below, NYU shall maintain any
and all of the University Research Technology in confidence and shall not release or disclose any
tangible or intangible component thereof to any third party without first receiving the prior
written consent of CORPORATION to said release or disclosure.

     b. Except as otherwise provided in Section 8.c. and 8.d. below, CORPORATION shall maintain any
and all of the University Research Technology in confidence and shall not release or disclose any
tangible or intangible component thereof to any third party without first receiving the prior
written consent of NYU to said release or disclosure.

     c. The obligations of confidentiality on NYU set forth in Section 8.a. and b. shall not apply
to any component of the University Research Technology which was part of the public domain prior to
the Effective Date of this Agreement or which becomes a part of the public domain not due to some
unauthorized act by or omission of the receiving party after the effective date of this Agreement
or which his disclosed to the receiving party by a third party who has the right to make such
disclosure.

     d. The provisions of Section 8.b. notwithstanding, CORPORATION may disclose the UNIVERSITY
Research Technology to third parties who need to know the same in order to secure regulatory
approval for the sale of Licensed Products.

     9. Publication

     a. Prior to submission for publication of a manuscript describing the results of any aspect of
the University Research Technology which is not part of the public domain, NYU shall send
CORPORATION a copy of the manuscript to be submitted, and shall allow CORPORATION thirty (30) days
from the date of such mailing to determine whether the manuscript contains such subject matter for
which patent protection should be sought prior to publication of such manuscript, for the purpose
of protecting an invention made by the NYU Scientists. Should CORPORATION believe the subject
matter of the manuscript contains a patentable invention, then, prior to the expiration of such
30-day period from the mailing date of such manuscript to CORPORATION by NYU, CORPORATION shall
give written notification to the sender of the manuscript of its determination that such manuscript
contains patentable subject matter for which patent protection should be sought.

     b. After the expiration of such 30-day period from the date of mailing such manuscript to
CORPORATION, unless NYU has received the written notice specified above

- 7 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

from CORPORATION, NYU shall be free to submit such manuscript for publication to publish the
disclosed research results in any manner consistent with academic standards.

     c. Upon receipt of such written notice from CORPORATION, NYU will thereafter delay submission
of the manuscript for an additional period of up to sixty (60) days to permit the preparation and
filing in accordance with Section 4. hereof of a U.S. patent application by CORPORATION on the
subject matter to be disclosed in such grant proposal or manuscript. After expiration of such
60-day period, or the filing of a patent application on each such invention, whichever shall occur
first, NYU shall be free to submit the manuscript and to publish the disclosed results.

     10. Infringement of CORPORATION Patents

     a. In the event that NYU acquires information that a third party is infringing one or more of
the CORPORATION Patents, the party acquiring such information shall promptly notify CORPORATION in
writing of such infringement.

     b. NYU shall cooperate and shall endeavor to cause the NYU Scientists to cooperate with
CORPORATION at the request of COOPERATION, including by giving testimony and producing documents
lawfully requested, in the prosecution of any suit by CORPORATION for infringement of the
CORPORATION Patents; provided, that CORPORATION shall pay all reasonable expenses (including
attorneys’ fees) incurred by NYU in connection with such cooperation.

     11. Infringement of UNIVERSITY Patent

     a. In the event a party to this Agreement acquires information that a third party is
infringing one or more of the UNIVERSITY Patents, the party acquiring such information shall
promptly notify the other party to the Agreement in writing of such infringement.

     b. In the event of an infringement of a UNIVERSITY Patent, CORPORATION shall be entitled but
not required to bring suit against the infringer. Should CORPORATION elect to bring suit against
an infringer and NYU is joined as a party plaintiff in any such suit, NYU shall have the right to
approve the counsel selected by CORPORATION to represent CORPORATION and NYU such approval not to
be unreasonably withheld. The expenses of such suit or suits that CORPORATION elects to bring,
including any expenses of NYU incurred in conjunction with the prosecution of such suit or the
settlement thereof, shall be paid for entirely by CORPORATION and CORPORATION shall hold NYU free,
clear and harmless from and against any and all costs of such litigation, including attorneys’
fees. CORPORATION shall not compromise or settle such litigation without the prior written consent
of NYU which shall not be unreasonably withheld.

     c. In the event CORPORATION exercises the right to sue herein conferred, it shall have the
right to first reimburse itself out of any sums recovered in such suit or in settlement thereof for
all costs and expenses of every kind and character, including reasonable attorneys’ fees,
necessarily involved in the prosecution of any such suit, and if after such reimbursement, any
funds shall remain from said recovery, CORPORATION shall promptly pay to NYU an amount equal to
twenty-five per cent (25%) of such remainder or four and one half per cent

- 8 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

(4.5%) of the Net Sales of the infringer, whichever is the lesser and CORPORATION shall be
entitled to receive and retain the balance of the remainder of such recovery.

     d. If CORPORATION does not bring suit against said infringer pursuant to Section 11.b. herein,
or has not commenced negotiations with said infringer for discontinuance of said infringement,
within ninety (90) days after receipt of such notice, NYU shall have the right, but shall not be
obligated, to bring suit for such infringement. Should NYU elect to bring suit against an
infringer and CORPORATION is joined as a party plaintiff in any such suit, CORPORATION shall have
the right to approve the counsel selected by NYU to represent NYU and CORPORATION, and NYU shall
hold CORPORATION free, clear and harmless from and against any and all costs and expenses of such
litigation, including attorneys’ fees. If CORPORATION has commenced negotiations with an alleged
infringer of the UNIVERSITY patent for discontinuance of such infringement within such 90-day
period, CORPORATION shall have an additional ninety (90) days from the termination of such initial
90-day period to conclude its negotiations before NYU may bring suit for such infringement. In the
event NYU brings suit for infringement of any UNIVERSITY Patent, NYU shall have the right to first
reimburse themselves out of any sums recovered in such suit or settlement thereof for all costs and
expenses of every kind and character, including reasonable attorneys’ fees necessarily involved in
the prosecution of such suit, and if after such reimbursement, any funds shall remain from said
recovery, NYU shall promptly pay to CORPORATION an amount equal to fifty percent (50%) of such
remainder and NYU shall be entitled to receive and retain the balance of the remainder of such
recovery.

     e. Each party shall always have the right to be represented by counsel of its own selection in
any suit for infringement of the UNIVERSITY Patents instituted by any other party to this Agreement
under the terms hereof. The expense of such counsel shall be borne by such party.

     f. CORPORATION agrees to cooperate fully with NYU at the request of NYU, including, by giving
testimony and producing documents lawfully requested in the prosecution of any suit by NYU for
infringement of the UNIVERSITY Patents; provided, NYU shall pay all reasonable expenses (including
attorneys’ fees) incurred by CORPORATION in connection with such cooperation.

     12. Clinical Trials

     a. Corporation shall determine the timing and selection of sites for conducting clinical
trials in relation to the University Research Technology.

     13. Liability and Indemnification

     a. CORPORATION shall indemnify, defend and hold harmless NYU and its trustees, officers,
medical and professional staff, employees, students and agents and their respective successors,
heirs and assigns (the “Indemnitees”), against any liability, damage, loss or expense (including
reasonable attorneys’ fees and expenses of litigation) incurred by or imposed upon the Indemnitees
or any one of them in connection with any claims, suits, actions, demands or judgments (i) arising
out of the design, production, manufacture, sale, use in

- 9 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

commerce or in human clinical trials, lease, or promotion by CORPORATION or by licensees or
sublicensees, Corporation Entity or agent of CORPORATION of any Licensed Product, process or
service relating to, or developed pursuant to, this Agreement or (ii) arising out of any other
activities to be carried out pursuant to this Agreement.

     b. With respect to an Indemnitee, CORPORATION’s indemnification under subsection a. of this
Section 13 shall not apply to any liability, damage, loss or expense to the extent that it is
attributable to the negligent activities or willful default of any such Indemnitee.

     c. CORPORATION agrees, at its own expense, to provide attorneys reasonably acceptable to NYU
to defend against any actions brought or filed against any Indemnitee with respect to the subject
of indemnity to which such Indemnitee is entitled hereunder, whether or not such actions are
rightfully brought and CORPORATION shall have conduct of the defense to any such actions.

     14. Security for Indemnification

     a. At such time as any Licensed Product, process or service relating to, or developed pursuant
to, this Agreement is being commercially distributed or sold (other than for the purpose of
obtaining regulatory approvals) by CORPORATION or by a licensee or sublicensee, Corporation Entity
or agent of CORPORATION, CORPORATION shall at its sole costs and expense, procure and maintain
policies of comprehensive general liability insurance in amounts not less than $1,000.000 per
incident and $5,000,000 annual aggregate and naming the Indemnitees as additional insureds. Such
comprehensive general liability insurance shall provide (i) product liability coverage and (ii)
broad form contractual liability coverage for CORPORATION’S indemnification under Section 13 of
this Agreement. If CORPORATION elects to self-insure all or part of the limits described above
(including deductibles or retentions which are in excess of $250,000 annual aggregate) such
self-insurance program must be acceptable to NYU. The minimum amounts of insurance coverage
required under this Section 14 shall not be construed to create a limit of CORPORATION’s liability
with respect to its indemnification under Section 13 of this Agreement.

     b. CORPORATION shall provide NYU with written evidence of such insurance upon request of NYU.
CORPORATION shall provide USA and NYU with written notice at least ten (10) days prior to the
cancellation, non-renewal or material change in such insurance; if CORPORATION does not obtain
replacement insurance providing comparable coverage within such ten (10) day period, NYU shall have
the right to terminate this Agreement effective at the end of such sixty (60) day period without
notice or any additional waiting periods.

     c. CORPORATION shall maintain such comprehensive general liability insurance beyond the
expiration or termination of this Agreement during (i) the period that any product, process or
service, relating to, or developed pursuant to, this Agreement is being commercially distributed or
sold (other than for the purpose of obtaining regulatory approvals) by CORPORATION or by a
licensee, Corporation Entity or agent of CORPORATION and (ii) a reasonable period after the period
referred to in (c) (i) above which in no event shall be less than fifteen (15) years.

- 10 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

     15. Expiry and Termination

     a. Unless earlier terminated pursuant to this Section 15, this Agreement shall expire upon the
expiration of the Payment Term in all countries.

     b. At any time prior to expiration of this Agreement, either party may terminate this
Agreement forthwith for cause, as “cause” is described below, by giving written notice to the other
party. Cause for termination by one party of this Agreement shall be deemed to exist if the other
party materially breaches or defaults in the performance or observance of any of the provisions of
this Agreement and such breach or default is not cured within sixty (60) days or, in the case of
failure to pay any amounts due hereunder, thirty (30) days (unless otherwise specified herein)
after the giving of notice by the other party specifying such breach or default, or if either party
discontinues its business or becomes insolvent or bankrupt.

     c. Any amount payable hereunder by one of the parties to the other, which has not been paid by
the date on which such payment is due, shall bear interest from such date until the date on which
such payment is made, at the rate of two percent (2%) per annum in excess of the prime rate
prevailing at the Citibank, N.A., in New York, during the period of arrears and such amount and the
interest thereon may be set off against any amount due, whether in terms of this Agreement or
otherwise, to the party in default by any non-defaulting party.

     d. Upon termination of this Agreement for any reason and prior to expiration as set forth in
Section 15.a. hereof, all rights in and to the UNIVERSITY Research Technology shall revert to SAMSF
and/or NYU, and CORPORATION shall not be entitled to make any further use whatsoever of the
UNIVERSITY Research Technology.

     e. Termination of this Agreement shall not relieve either party of any obligation to the other
party incurred prior to such termination.

     f. Sections 3, 8, 13, 14, 15 and 19 hereof shall survive and remain in full force and effect
after any termination, cancellation or expiration of this Agreement.

     16. Representation and Warranties by CORPORATION

     CORPORATION hereby represents and warrants to NYU as follows:

	 	(1)	 	CORPORATION is a corporation duly organized, validly existing
and in good standing under the laws of the British Virgin Islands. CORPORATION
has been granted all requisite power and authority to carry on its business and
to own and operate its properties and assets. The execution, delivery and
performance of this Agreement have been duly authorized by the Board of
Directors of CORPORATION.
	 
	 	(2)	 	There is no pending or, to CORPORATION’s knowledge, threatened
litigation involving CORPORATION which would have any effect on this Agreement
or on CORPORATION’s ability to perform its obligation hereunder; and

- 11 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	(3)	 	There is no indenture, contract, or agreement to which
CORPORATION is a party or by which CORPORATION is bound which prohibits or
would prohibit the execution and delivery by CORPORATION of this Agreement or
the performance or observance by CORPORATION of any term or condition of this
Agreement.

     17. Representations and Warranties by NYU

     NYU hereby represents and warrants to CORPORATION as follows:

	 	(1)	 	NYU is a corporation duly organized, validly existing and in
good standing under the laws of the State of New York. NYU has been granted
all requisite power and authority to carry on its business and to own and
operate its properties and assets. The execution, delivery and performance of
this Agreement have been duly authorized by the Board of Trustees of NYU.
	 
	 	(2)	 	There is no pending or, to NYU’s knowledge, threatened
litigation involving NYU which would have any effect on this Agreement or on
NYU’s ability to perform its obligations hereunder; and
	 
	 	(3)	 	There is no indenture, contract, or agreement to which NYU is a
party or by which NYU is bound which prohibits or would prohibit the execution
and delivery by NYU of this Agreement or the performance or observance by NYU
of any term or condition of this Agreement.

     18. No Assignment

     Except as specifically provided herein, neither CORPORATION nor NYU shall have the right to
assign, delegate or transfer at any time to any party, in whole or in part, any or all of the
rights, duties and interest herein granted without first obtaining the written consent of the other
to such assignment.

     19. Use of Name

     Without the prior written consent of the other party, neither CORPORATION nor NYU shall use
the name of any of the others or any adaptation thereof or of any staff member, employee or student
of the others:

	 	i)	 	in any product labeling, advertising, promotional or sales
literature;
	 
	 	ii)	 	in connection with any public or private offering or in
conjunction with any application for regulatory approval, unless disclosure is
otherwise required by law, in which case any of the three may make factual
statements concerning the Agreement or file copies of the Agreement after
providing the others with an opportunity to comment and reasonable time within
which to do so on such statement in draft.

- 12 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

Except as provided herein, neither NYU nor CORPORATION will issue public announcements about this
Agreement or the status or existence of the Research Project without prior written approval of the
others.

     20. Miscellaneous

     a. In carrying out this Agreement the parties shall comply with all local, state and federal
laws and regulations including but not limited to, the provisions of Title 35 United States Code
^U200 et seq. and 15 C.F.R. ^U268 et seq.

     b. If any provision of this Agreement is determined to be invalid or void, the remaining
provisions shall remain in effect.

     c. This Agreement shall be deemed to have been made in the State of New York and shall be
governed and interpreted in all respects under the laws of the State of New York.

     d. Any dispute arising under this Agreement shall be resolved in an action in the courts of
New York State or the federal courts located in New York State, and the parties hereby consent to
personal jurisdiction of such courts in any action.

     e. All payments or notices required or permitted to be given under this Agreement shall be
given in writing and shall be effective when either personally delivered or deposited, postage
prepaid, with a national postal service by registered or certified mail (airmail if international),
addressed as follows:

			
	          To NYU:	 	New York University Medical Center

550 First Avenue

New York, N.Y. 10016

Attention: Isaac T. Kohlberg

                 Vice President for Industrial Liaison

                 and

Office of Legal Counsel

New York University

Bobst Library

70 Washington Square South

New York, N.Y. 10012

Attention: Annette B. Johnson

                 Senior Counsel for Medical Center Affairs

- 13 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

			
	To CORPORATION:	 	MINDSET LIMITED

1 Beit Eshel St.
Old Katamon

Jerusalem 93227, ISRAEL

Attention: Dr. Daniel Chain

or such other address or addresses as any party may hereafter specify by written notice to the
others. Such notices and communications shall be deemed effective on the date of delivery or
fourteen (14) days after having been sent by registered or certified mail, whichever is earlier.

     f. This Agreement (and the annexed Appendices) constitute the entire Agreement between the
parties and no variation, modification or waiver of any of the terms or conditions hereof shall be
deemed valid unless made in writing and signed by all parties hereto. This Agreement supersedes
any and all prior agreements or understandings, whether oral or written, between CORPORATION and
NYU.

     g. No waiver by any party of any non-performance or violation by any other party of any of the
covenants, obligations or agreements of such other party hereunder shall be deemed to be a waiver
of any subsequent violation or non-performance of the same or any other covenant, agreement or
obligation, nor shall forbearance by any party be deemed to be a waiver by such party of its rights
or remedies with respect to such violation or non-performance.

     h. The descriptive headings contained in this Agreement are included for convenience and
reference only and shall not be held to expand, modify or aid in the interpretation, construction
or meaning of this Agreement.

     i. It is not the intent of the parties to create a partnership or joint venture or to assume
partnership responsibility or liability. The obligations of the parties shall be limited to those
set out herein and such obligations shall be several an not joint.

- 14 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date
and year first above written.

	 	 	 	 	 
	 

	 	 	 	NEW YORK UNIVERSITY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Illegible
	 
	 	 	 	 
	 

	 	Title:
	 	Vice President for Industrial Liaison
	 
	 	 	 	 
	 

	 	Date:
	 	8-10-98
	 
	 	 	 	 
	 

	 	 	 	MINDSET, LIMITED
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Chain
	 
	 	 	 	 
	 

	 	Title:
	 	President
	 
	 	 	 	 
	 

	 	Date:
	 	August 9th, 1998

- 15 -

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

Appendix I

U.S. Patent Application Serial No. 08/801,301, filed February 18, 1997 entitled USE OF MELATONIN To
PREVENT CYTOTOXIC EFFECTS OF AMYLOID PROTEIN by Pappolla.

U.S. Provisional Patent Application Serial No. 60/075,555 filed February 23, 1998 entitled USE OF
3-INDOL-PROPRIONIC ACID by Pappolla.

U.S. Provisional Patent Application Serial No. 60/079,349 filed March 25, 1998 entitled INHIBITION
OF ALZHEIMER BETA-FIBRILLOGENESIS BY MELATONIN by Pappolla.

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

AMENDMENT TO LICENSE AGREEMENT

     This Amendment, effective as of                     , 2002 is by and between NEW YORK UNIVERSITY (“NYU”), a
corporation organized and existing under the laws of the State of New York MINDSET LIMITED, a
corporation organized and existing under the laws of the British Virgin Islands and MINDSET
BIOPHARMACEUTICALS (USA), INC. (“CORPORATION”), a Delaware corporation having a address at 1450
Broadway, 41st Floor, New York, NY 10018.

RECITALS

     WHEREAS, NYU and Mindset Limited (“Mindset”) entered into a License Agreement with an
effective date of August 10, 1998 (the “Principal Agreement”);

     WHEREAS, Mindset assigned the benefit and obligations of the Principal Agreement to
CORPORATION;

     WHEREAS, the parties hereto wish to amend the Principal Agreement;

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the
parties hereto hereby agree as follows:

	1.	 	Definitions Capitalized terms not otherwise defined herein shall have the same
respective meanings given to them by the Principal Agreement.
	 
	2.	 	It is the parties’ understanding that all rights conferred by NYU under the Principal
Agreement presently rest solely with CORPORATION. It is the, parties’ further understanding
that no sublicenses have been granted by CORPORATION, by Mindset or by any other entity. It
is the parties’ further understanding that the Principal Agreement confers no rights to
Mindset or to any other Corporation Entity, except to the extent that a Corporation Entity may
secure rights by virtue of a sublicense from CORPORATION in accordance with the provisions of
Section 5c. It is the parties’ further understanding that a Corporation Entity who is a
sublicensee of CORPORATION may not assign the sublicense to any other entity and may not grant
further sublicenses. Since the Principal Agreement may have contained language which is
inconsistent with this understanding and to further clarify the Modified Principal Agreement,
Section 6d. of the Principal Agreement is hereby amended as follows:

	 	2.1	 	Section 6d. shall be amended by substituting “of CORPORATION, of any
Corporation Entity, and/or of any sublicensee of CORPORATION” for “of CORPORATION or of
Corporation Entity and the licensees or sublicensees of CORPORATION” in the fourth,
fifth and sixth lines thereof.

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	2.	 	Amendments

	 	2.1	 	Section 1.b shall be amended by substituting “over fifty percent” for
“twenty-five and one tenth percent (25.1%)” in the third line thereof.
	 
	 	2.2	 	Section 6a. of the Principal Agreement shall be deleted and the following shall
be substituted therefor:

	 	 	“In consideration for the License granted herein, and during the Payment Term, CORPORATION
shall make the following payments to NYU:

	 	(i)	 	With respect to each Licensed Product, CORPORATION shall pay to NYU a royalty
of *** of Net Sates of CORPORATION and a royalty of *** of Net Sales of a sublicensee
of CORPORATION or Corporation Entity, provided always as follows:

	 	(A)	 	If at any time on or after January 1, 2009 any Licensed Product
is in clinical development for any disease indication, but no Licensed Product
is then being sold commercially as an approved drug, CORPORATION shall pay an
annual minimum royalty payment of *** or a proportionate part thereof for the
relevant part of the first applicable year if such condition is satisfied after
January 1 in such year.
	 
	 	(B)	 	If on or after January 1, 2009 there is no Licensed Product in
clinical development for any disease indication and/or if at any time on or
after January 1, 2009 any Licensed Product is being sold commercially as an
approved drug, CORPORATION shall pay an aggregate annual minimum royalty
payment of *** or a proportionate part thereof for the relevant part of any
applicable year if the condition contained in paragraph A above or the second
condition contained in this paragraph (B) is satisfied after January 1 in such
year.
	 
	 	(C)	 	All minimum royalty payments shall be credited against the
percentage royalty payable with respect to Net Sales for the year for which the
minimum royalty is due but may not be credited against any percentage royalties
payable in respect of Net Sales in any other year.
	 
	 	(D)	 	Minimum royalty payments shall be made as specified in Section
6b. hereof except that, if the royalty payments based on Net Sales paid
pursuant to Section 6a. hereof for the first six (6) months of the year exceed
the minimum royalty payment for that year, no further minimum royalty payment
shall be made for that year.
	 
	 	(E)	 	CORPORATION shall inform NYU in writing of the Date of First
Commercial Sale with respect to each Licensed Product in each country as soon
as practicable after making of each such first commercial sale.

	 	(ii)	 	CORPORATION shall make the following further payments to NYU:

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	(A)	 	In connection with Alzheimer’s Disease (“AD”), subject to the
provisions of Sections 6(a)(ii)(C), (D) and (E) hereof:

	 	(1)	 	On the execution of this Amendment the sum of
fifty thousand dollars ($50,000);
	 
	 	(2)	 	On the commencement of the first Phase I trial
of an AD Licensed Product anywhere in the world, the sum of fifty
thousand dollars ($50,000);
	 
	 	(3)	 	On the commencement of the first Phase II trial
of an AD Licensed Product anywhere in the world, the sum of ***, but if
CORPORATION funds a portion or all of the first Phase II trial of an AD
Licensed Product, CORPORATION may defer payment of an amount equal to
*** multiplied by a fraction, the numerator of which is equal to the
costs contributed by CORPORATION to the total costs of such trial and
the denominator of which is equal to the total costs of such trial,
until the first payment pursuant to paragraph (4) hereof is due.
	 
	 	(4)	 	On the commencement of the first Phase III
trial of an AD Licensed Product anywhere in the world, the sum of ***,
but if CORPORATION funds a portion or all of the first Phase III trial
of an AD Licensed Product, CORPORATION may defer payment of an amount
equal to *** multiplied by a fraction, the numerator of which is equal
to the costs contributed by CORPORATION to the total costs of such
trial, and the denominator of which is equal to the total costs of such
trial, until the first payment pursuant to paragraph (5) hereof is due;
and
	 
	 	(5)	 	On the date of approval of the first New Drug
Application related to an AD Licensed Product by the US Food and Drug
Administration or the earlier approval of an equivalent application by
an equivalent non-US regulatory agency anywhere in the world, the sum
of *** but, if CORPORATION shall elect to fund the cost of marketing of
such Licensed Product itself in whole or in part and shall give notice
in writing of such election to NYU no more than three (3) months after
the date of the relevant approval, payment of that portion of said ***
calculated by multiplying said sum by a fraction the numerator of which
is the amount of such cost funded by CORPORATION and the denominator of
which is the total cost of such marketing may be deferred until twelve
(12) months after the date of the relevant approval.
	 
	 	(6)	 	All payments made pursuant to the provisions of
this Section 6a.(ii)(A) shall be credited against and deducted from any

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	 	 	payments otherwise due pursuant to the provisions of Sections
6a.(ii)(C), (D) and (E).

	 	(B)	 	In connection with all indications other than AD:

	 	(1)	 	On the date of approval of the first New Drug
Application related to non-AD Licensed Product, which is a non-orphan
drug, by US Federal Drug Administration or the earlier approval of an
equivalent application by an equivalent non-US regulatory agency
anywhere in the world, the sum of ***;
	 
	 	(2)	 	On the date of approval related to a non-AD
Licensed Product, which is an orphan drug by the US Food and Drug
Administration or the earlier approval by an equivalent non-US
regulatory agency anywhere in the world, the sum of ***.

	 	(C)	 	CORPORATION shall pay to NYU an amount equal to *** of payments
and ***, other than royalties, received by CORPORATION from a sublicensee or
any other entity receiving rights to the Research Technology under an agreement
executed prior to the commencement of a Phase I clinical trial of a Licensed
Product, provided always as follows:

	 	(1)	 	There shall not be included in the calculation
of any such payment any amounts paid to CORPORATION for or towards the
cost of research or development under a written agreement with a
detailed budget for such research or development or by way of equity
investment (including, without limitation, debt convertible into or
exchangeable for equity) in CORPORATION; at a price for such equity
that an unconnected third party would pay on a venture capital basis,
but not less than the price per share paid by the last preceding
investor on such basis, with any excess over such price being included
in he calculation of such payment; and
	 
	 	(2)	 	CORPORATION will provide NYU with a copy of the
written agreement and detailed budget providing for such research and
development described in the section above within thirty (30) days of
CORPORATION’S receipt of payment for such research and development; and
(3) All payments made pursuant to the provisions of this Section
6a.(ii)(C) shall be credited against and deducted from any payments
otherwise due pursuant to the provisions of Section 6(a)(ii)(A) hereof.
	 
	 	(4)	 	All payments, other than royalties, received by
CORPORATION from a sublicensee or any other entity receiving any rights
to the Research Technology shall be promptly disclosed in writing to
NYU along with a calculation of the amount payable to NYU and

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	 	 	along with copies of any relevant written agreements contemplated in
6a.(ii)(C)(1) hereof.

	 	(D)	 	CORPORATION shall pay to NYU an amount equal to *** of
payments, and *** other than royalties, received by CORPORATION from a
sublicensee or any other entity receiving rights to the Research Technology
under an agreement executed concurrently with or after the commencement of a
Phase I clinical trial, but before the commencement of a Phase II clinical
trial, of a Licensed Product, subject to the provisos specified in Section
6a.(ii)(C) hereof.
	 
	 	(E)	 	CORPORATION shall pay to NYU an amount equal to *** of payments
and ***, other than royalties, received by CORPORATION from a sublicensee or
any other entity receiving rights to the Research Technology under an agreement
executed concurrently with or after the commencement of a Phase II clinical
trial of a Licensed Product, subject to the provisos specified in Section
6a.(ii)(C) hereof.

	 	(iii)	 	The following provisions shall apply to this Section 6a.:

	 	(A)	 	All payments to be made pursuant to the provisions of
sub-paragraph (ii) of this Section 6a, other than the payment specified in
clause (A)(1) of sub-paragraph (ii), shall be paid by CORPORATION to NYU within
sixty (60) days of the occurrence of the relevant event or the receipt by
CORPORATION of the relevant payment.
	 
	 	(B)	 	For the purposes of sub clauses (3), (4) and (5) of clause (A)
of sub-paragraph (iii) of this Section 6a., the ratio of costs contributed by
CORPORATION to total costs shall be calculated as follows:

	 	(1)	 	If the agreement between CORPORATION and such
sublicensee or other entity specifies the proportion of costs to be
borne by each party, then the proportion borne by CORPORATION to the
total cost, pursuant to such agreement, shall constitute the relevant
fraction.
	 
	 	(2)	 	If the agreement between CORPORATION and such
sublicensee or other entity does not specify such proportions, then, in
each such case, CORPORATION shall make a good faith estimate of the
proportion of costs being borne by each party and shall give notice in
writing to NYU of such estimate, specifying how CORPORATION arrived at
such estimate and the proportion borne by CORPORATION to the total
cost, pursuant to such estimate shall constitute the relevant fraction.
	 
	 	(3)	 	With regard to the trials contemplated in
Sections 8a.(ii)(A)(3) and 8a.(ii)(A)(4) hereof if, at the termination
of the relevant trial, the event to which payment is deferred shall not
have occurred,

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

	 	 	 	CORPORATION shall provide to NYU in writing details of the actual
costs of the relevant trial, details of the actual costs of the
relevant trial borne by CORPORATION, and details of the actual costs
of the relevant trial borne by each sublicensee and/or each other
entity respectively. If it shall appear that the actual proportion
borne by CORPORATION of the total cost differs from the fraction as
provided by the agreement contemplated in Section 8a.(iii)(B)(1) or
as provided by the estimate contemplated in Section 8a.(iii)(B)(1),
then CORPORATION shall make the necessary payment to NYU or
CORPORATION may apply any overpayment to NYU as a credit against
future milestone payments due to NYU, as the case may be.

	3.	 	Diligence. The following new paragraph shall be inserted as Section 20.j:

	 	(j)	 	CORPORATION shall exercise or shall require its sublicensees to exercise
continuous and commercially reasonable efforts to develop and market Licensed Products.
Within sixty (60) days after the end of each Calendar Year, CORPORATION shall provide
NYU with a written report detailing the efforts of CORPORATION and the efforts of its
sublicensees to develop and market Licensed Products during such Calendar Year.

	4.	 	Substitution of Mindset Biopharmaceuticals (USA), Inc. It is hereby agreed that
henceforth the Principal Agreement shall be read, construed and take effect for all the
purposes thereof as if Mindset Biopharmaceuticals (USA), Inc. were the party thereto and not
Mindset Limited
	 
	5.	 	Except as otherwise provided herein, the Principal Agreement shall remain in full force and
effect.

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	NEW YORK UNIVERSITY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Abram M. Goldfinger
 

Abram M. Goldfinger
	 	 
	 

	 	Title:
	 	Executive Director Industrial Liaison/Technology
Transfer	 	 
	 
	 	 	 	 	 	 
	 	 	MINDSET BIOPHARMACEUTICALS (USA), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Daniel Chain
 

Daniel Chain
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	MINDSET BIOPHARMACEUTICALS (USA), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Michael Schickler
 

Michael Schickler
	 	 
	 

	 	Title:
	 	Chairman	 	 
	 
	 	 	 	 	 	 
	 	 	MINDSET LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Daniel Chain
 

Daniel Chain
	 	 
	 

	 	Title:
	 	President	 	 

 

 

Confidential Treatment has been requested

for portions of this document marked with asterisks.

January 11, 2006

Abram M. Goldfinger

Executive Director,

Industrial Liaison/Technology Transfer

New York University

650 First Avenue, 6th Floor

New York, NY 10016

Dear Abram:

This is to memorialize our agreement that paragraph 2.2 (ii) A (2) of the 2002 Amendment of the
August 10, 1998 License Agreement between Mindset Limited (now Intellect Neurosciences, Inc.) and
New York University (NYU) has been amended to read as follows:

(2) On the commencement of the first Phase I trial of an AD Licensed Product anywhere in the world,
the sum of fifty thousand dollars ($50,000) to be paid in five equal and consecutive monthly
installments of ten thousand dollars ($10,000.00) each. The first installment shall be due sixty
days after the Phase One trial commenced.

Intellect confirms that the first Phase I trial of an AD Licensed Product commenced on December 1,
2005, and that the above $10,000 payments shall be made on or before the 1st day of
February, March, April, May, and June, 2006.

All other terms of the above License Agreement shall remain unchanged.

Best regards,

/s/ Daniel Chain

Daniel Chain, Ph.D.

President, Chairman & CEO

Agreed for NYU:

	 	 	 	 	 
	/s/ Abram Goldfinger

	 	 	 	1/17/06
	 

	 	 	 	 
	Abram Goldfinger

	 	 	 	Date
	Executive Director, Industrial
	 	 	 	 
	Liaison/Technology Transfer
	 	 	 	 

Intellect Neurosciences Inc., 7 west 18th Street, 9th floor, New York, NY, 10011,USA

Office: +1-646-7922235 Fax: +1-646-7922236

Website: www.IntellectNeurosciences.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]