Document:

Exhibit
      10.5

    Portions
      herein identified by [***] have been omitted pursuant to a request for
      confidential treatment under Rule 406 of the Securities Act of 1933. A complete
      copy of this document has been filed separately with the Securities and Exchange
      Commission.

    

    PATENT
      AND TECHNOLOGY LICENSE AGREEMENT

    This
      fifty-two (52) page AGREEMENT ("AGREEMENT") is made on this 24th
      day of
      August, 2004, by and between THE BOARD OF REGENTS ("BOARD") of THE UNIVERSITY
      OF
      TEXAS SYSTEM ("SYSTEM"), an agency of the State of Texas, whose address is
      201
      West 7th Street, Austin, Texas 78701, on behalf of THE UNIVERSITY OF TEXAS
      M. D.
      ANDERSON CANCER CENTER ("UTMDACC"), a component institution of SYSTEM, The
      Texas
      A&M University System (“A&M”), an agency of the State of Texas located
      at College Station, Texas 77843, and Ziopharm
      Inc., a Delaware corporation having a principal place of business located at
      787
      Seventh Avenue, 48th Floor, New York, NY 10019 ("LICENSEE").

    TABLE
      OF CONTENTS

    
      
        	
                RECITALS
                  

              	
                Page
                  2

              
	
                I.
                  EFFECTIVE DATE 

              	
                Page
                  2 

              
	
                II.
                  DEFINITIONS

              	
                Page
                  2 

              
	
                III.
                  LICENSE

              	
                Page
                  6 

              
	
                IV.
                  CONSIDERATION, PAYMENTS AND REPORTS

              	
                Page
                  8 

              
	
                V.
                  SPONSORED RESEARCH

              	
                Page
                  16 

              
	
                VI.
                  PATENTS AND INVENTIONS 

              	
                Page
                  17 

              
	
                VII.
                  INFRINGEMENT BY THIRD PARTIES

              	
                Page
                  19 

              
	
                VIII.
                  PATENT MARKING

              	
                Page
                  20 

              
	
                IX.
                  INDEMNIFICATION AND INSURANCE

              	
                Page
                  20 

              
	
                X.
                  USE OF BOARD AND UTMDACC'S NAME 

              	
                Page
                  22

              
	
                XI.
                  CONFIDENTIAL INFORMATION AND PUBLICATION

              	
                Page
                  23 

              
	
                XII.
                  ASSIGNMENT

              	
                Page
                  24 

              
	
                XIII.
                  TERM AND TERMINATION

              	
                Page
                  24 

              
	
                XIV.
                  DUE DILIGENCE

              	
                Page
                  26 

              
	
                XV.
                  WARRANTY: SUPERIOR RIGHTS

              	
                Page
                  27

              
	
                XVI.
                  GENERAL 

              	
                Page
                  29 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                SIGNATURES

              	
                Page
                  32 

              
	
                EXHIBIT
                  I—PATENT RIGHTS

              	
                Page
                  33

              
	
                EXHIBIT
                  II—IMPROVEMENTS
                  AND NEW INVENTIONS FROM SPONSORED RESEARCH

              	
                Page
                  34

              
	
                EXHIBIT
                  III—STOCK PURCHASE AGREEMENT

              	
                Page
                  35

              
	
                EXHIBIT
                  IV—PREVIOUS AGREEMENTS

              	
                Page
                  42

              
	
                EXHIBIT
                  V—OPTION

              	
                Page
                  43

              

      

    

    

    RECITALS

    
      	
              A.

            	
              BOARD
                and A&M own certain PATENT RIGHTS and TECHNOLOGY RIGHTS related to
                LICENSED SUBJECT MATTER developed at UTMDACC and
                A&M.

            

    

    
      	
              B.

            	
              BOARD,
                through UTMDACC, and A&M desire to have the LICENSED SUBJECT MATTER
                developed in the LICENSED FIELD and used for the benefit of LICENSEE,
                BOARD, SYSTEM, UTMDACC, A&M, the inventor(s), and the
                public.

            

    

    
      	
              C.

            	
              UTMDACC,
                through an executed Commercialization Agreement (as amended) with
                A&M
                has the authority to negotiate the license contemplated
                hereby.

            

    

    
      	
              D.

            	
              LICENSEE
                wishes to obtain a license from BOARD and A&M to practice LICENSED
                SUBJECT MATTER.

            

    

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

    

    I.    EFFECTIVE
      DATE

    
      	
              1.1

            	
              This
                AGREEMENT is effective as of the date written above ("EFFECTIVE
                DATE").

            

    

    

    II.    DEFINITIONS

    As
      used
      in this AGREEMENT, the following terms have the meanings indicated:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	
              2.1

            	
              AFFILIATE
                means any business entity more than fifty percent (50%) owned by
                LICENSEE,
                any business entity which owns more than fifty percent (50%) of LICENSEE,
                or any business entity that is more than fifty percent (50%) owned
                by a
                business entity that owns more than fifty percent (50%) of
                LICENSEE.

            

    

    
      	
              2.2

            	
              FDA
                means
                United States Food and Drug
                Administration.

            

    

    
      	
              2.3

            	
              IMPROVEMENTS
                means
                Board’s and A&M’s rights to any inventions (whether patentable or
                not), information and data, or subsequent reductions to practice
                of the
                PATENT RIGHTS listed in Exhibit I that (1) the manufacture, use or
                sale of
                which would infringe an issued or pending claim within PATENT RIGHTS
                listed on Exhibit I; (2) are conceived or reduced to practice as
                of the
                EFFECTIVE DATE, or after the EFFECTIVE DATE and before the fifth
                anniversary thereof, by
                any of the inventors listed in Exhibit I while such inventors are
                employed
                at UTMDACC or A&M, or those working under their direction while
                employed at UTMDACC
                or
                A&M;
                (3) are not obligated to a third party
                by
                a written agreement in effect prior to the EFFECTIVE DATE, and which
                are
                set forth on the attached Exhibit IV; and (4) are known to UTMDACC’s or
                A&M’s respective technology transfer offices, any of which shall be
                added to Exhibit II and made a part hereof. 

            

    

    
      	
              2.4

            	
              IND
                means
                Investigational New Drug Application as defined by the rules and
                regulations of the FDA.

            

    

    
      	
              2.5

            	
              LICENSED
                FIELD
                means all human and animal uses.

            

    

    
      	
              2.6

            	
              LICENSED
                PRODUCTS
                means any
                product or service that is covered in whole or in part by a VALID
                CLAIM
                contained in the PATENT RIGHTS in the country in which the product
                is
                made, used, leased or sold.
                

            

    

    
       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                2.7

              	
                LICENSED
                  SUBJECT MATTER
                  means PATENT RIGHTS, IMPROVEMENTS and TECHNOLOGY RIGHTS within
                  LICENSED
                  FIELD.

              

      

    

    
      	
              2.8

            	
              LICENSED
                TERRITORY
                means worldwide.

            

    

    
      	
              2.9

            	
              LICENSOR
                means
                collectively, the BOARD, UTMDACC, and
                A&M.

            

    

    
      	
              2.10

            	
              MAJOR
                MARKET COUNTRY
                means the United States of America, Japan, Canada and the European
                Union.

            

    

    
      	
              2.11

            	
              NDA
                means New Drug Application as defined by the rules and regulations
                of the
                FDA.

            

    

    
      	
              2.12

            	
              NET
                SALES
                means the gross revenues received by LICENSEE or a sublicensee, as
                appropriate, from a SALE less sales discounts actually granted, sales
                and/or use taxes actually paid, import and/or export duties actually
                paid,
                outbound transportation actually prepaid or allowed, and amounts
                actually
                allowed or credited due to returns (not exceeding the original billing
                or
                invoice amount), all as recorded by LICENSEE or sublicensee, as
                appropriate, in their official books and records in accordance with
                generally accepted accounting practices and consistent with LICENSEE’s or
                sublicensee’s, as appropriate, published financial statements and/or
                regulatory filings with the United States Securities and Exchange
                Commission.

            

    

    
      	
              2.13

            	
              PATENT
                RIGHTS
                means BOARD's and A&M’s rights in information or discoveries described
                in invention disclosures on Exhibit I or in the subsequent reductions
                to
                practice of such information or discoveries (so long as such subsequent
                reductions to practice are not obligated to a third party), or claimed
                in
                any patents, and/or patent applications, whether domestic or foreign,
                based on such invention disclosures and such reductions to practice
                (that
                are not obligated to a third party) and all domestic and foreign
                divisionals, continuations, continuations-in-part, reissues,
                reexaminations or extensions thereof, including any foreign counterparts
                thereto and any letters patent that issue thereon, including but
                not
                limited to: (a) Provisional Application entitled, “Compounds and Methods
                for the Treatment of Cancer” filed July 16, 2004; (b) U.S. Application
                Serial Number 60/346,492 filed January 7, 2002; (c) WO 2003/057012
                filed
                January 7, 2003; (d) U.S. Application Serial Number 10/337,969 filed
                January 7, 2003; and (e) national stage filings for MDA01-063 in
                Europe,
                Japan, Canada and Australia.

            

    

    
       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                2.14

              	
                PHASE
                  1
                  means a human clinical trial, the principal purpose of which is
                  to
                  determine toxicity, absorption, metabolism and/or safe dosage range
                  in
                  patients with the disease target being studied as required in 21
                  C.F.R.
                  §312 or a similar regulatory requirement in any MAJOR MARKET COUNTRY.
                  

              

      

    

    
      	
              2.15

            	
              PHASE
                2 means
                a controlled clinical study conducted to obtain preliminary data
                on
                effectiveness of an investigational new drug for a particular indication,
                as required in 21 C.F.R. §312 or a similar regulatory requirement in any
                MAJOR MARKET COUNTRY.

            

    

    
      	
              2.16

            	
              PHASE
                3 means
                a human clinical trial, the principal purpose of which is to establish
                safety and efficacy in patients with the disease target being studied
                as
                required in 21 C.F.R. §312 or a similar regulatory requirement in any
                MAJOR MARKET COUNTRY. A PHASE 3 study shall also include a PIVOTAL
                STUDY.
                

            

    

    
      	
              2.17

            	
              PIVOTAL STUDY
                means human clinical trial intended to provide the substantial evidence
                of
                efficacy necessary to support the filing of an approvable NDA whether
                or
                not such study is a traditional PHASE 3 study (e.g., a combined PHASE
                2/PHASE 3 study, or any PHASE 2 study in lieu of a PHASE 3 study)
                or a
                similar trial conducted in any MAJOR MARKET COUNTRY leading to an
                approval
                in any such MAJOR MARKET COUNTRY.

            

    

    
       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                2.18

              	
                SALE
                  or SOLD
                  means the transfer or disposition of a LICENSED PRODUCT or product
                  for
                  which royalties are due under Section 4.1(c) (“Section 4.1(c) Product”) ,
                  or sold for value to a party other than LICENSEE or
                  AFFILIATE.

              

      

    

    
      	
              2.19

            	
              TECHNOLOGY
                RIGHTS
                means BOARD's and A&M’s rights in any technical information, know-how,
                processes, procedures, compositions, devices, methods, formulae,
                protocols, techniques, software, designs, drawings or data created
                by the
                inventor(s) listed in Exhibit I while employed at UTMDACC or A&M,
                respectively, or by individuals working under the direction of such
                inventors at UTMDACC or A&M, which are not claimed in PATENT RIGHTS
                but that are necessary for practicing PATENT
                RIGHTS.

            

    

    
      	
              2.20

            	
              VALID
                CLAIM means,
                an issued claim of any unexpired patent or claim of any pending patent
                application included among the PATENT RIGHTS, which patent has not
                been
                held unenforceable, unpatentable or invalid by a decision of a court
                or
                governmental body of competent jurisdiction, unappealable or unappealed
                within the time allowed for appeal, which has not been rendered
                unenforceable through disclaimer or otherwise, and which has not
                been lost
                through an interference proceeding or
                abandoned.

            

    

    

    III. LICENSE
      GRANT

    
      	
              3.1

            	
              BOARD,
                through UTMDACC, and A&M hereby grant to LICENSEE, and LICENSEE hereby
                accepts, a royalty-bearing, exclusive license under LICENSED SUBJECT
                MATTER to make, have made, manufacture, have manufactured, use, import,
                offer to sell, sell and/or have sold products within LICENSED TERRITORY
                for use within LICENSED FIELD. This
                grant is subject to Sections 15.2 and 15.3 herein below, the payment
                by
                LICENSEE to UTMDACC of all consideration as provided herein, and
                is
                further subject to the following rights retained by BOARD, UTMDACC
                and
                A&M to: 

            

    

    
       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (a)

              	
                publish
                  the general scientific findings from research related to LICENSED
                  SUBJECT
                  MATTER, subject to the terms of Article XI-Confidential Information
                  and
                  Publication; and 

              

      

    

    
      	 	
              (b)

            	
              use
                LICENSED SUBJECT MATTER solely for its own internal, non-commercial
                research, teaching, and other educationally-related purposes;
                and

            

    

    
      	 	
              (c)

            	
              request
                that the LICENSEE transfer LICENSED SUBJECT MATTER to academic or
                research
                institutions for non-commercial research use or for purposes of
                collaboration upon terms reasonably acceptable to the LICENSEE and
                such
                third party; provided, however, that LICENSEE will not unreasonably
                withhold consent to UTMDACC and A&M’s use of the LICENSED SUBJECT
                MATTER in collaborations between UTMDACC, A&M, and/or the National
                Cancer Institute (NCI).

            

    

    
      	
              3.2

            	
              LICENSEE
                may extend the license granted herein to any AFFILIATE provided that
                the
                AFFILIATE consents in writing to be bound by this AGREEMENT to the
                same
                extent as LICENSEE. LICENSEE agrees to deliver such contract to UTMDACC
                within 30 calendar days following execution
                thereof.

            

    

    
      	
              3.3

            	
              LICENSEE
                may grant sublicenses under LICENSED SUBJECT MATTER consistent with
                the
                terms of this AGREEMENT, provided that LICENSEE is responsible for
                its
                sublicensees relevant to this AGREEMENT, and for diligently collecting
                all
                amounts due LICENSEE from sublicensees. If a sublicensee pursuant
                hereto
                becomes bankrupt, insolvent or is placed in the hands of a receiver
                or
                trustee, LICENSEE, to the extent allowed under applicable law and
                in a
                timely manner, agrees to use all commercially reasonable efforts
                to
                collect all consideration owed to LICENSEE and to have the sublicense
                agreement confirmed or rejected by a court of proper jurisdiction.
                

            

    

    
       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	
                3.4

              	
                LICENSEE
                  shall deliver to UTMDACC a true and correct copy of each sublicense
                  granted by LICENSEE, and any modification or termination thereof,
                  within
                  30 calendar days after execution, modification, or
                  termination.

              

      

    

    
      	
              3.5

            	
              If
                this AGREEMENT is terminated pursuant to Article XIII-Term and
                Termination, BOARD, UTMDACC and A&M agree to accept as successors to
                LICENSEE, existing sublicensees in good standing at the date of
                termination provided that each such sublicensee consents in writing
                to be
                bound by all of the terms and conditions of this
                AGREEMENT.

            

    

    
      	
              3.6

            	
              UTMDACC
                and A&M shall promptly disclose any IMPROVEMENTS to LICENSEE, which
                IMPROVEMENTS will be added to Exhibit II, considered as PATENT RIGHTS
                hereunder and made a part hereof. 

            

    

    

    IV. CONSIDERATION,
      PAYMENTS AND REPORTS 

    
      	
              4.1

            	
              In
                consideration for the rights granted to the LICENSEE hereunder, the
                LICENSEE agrees to make the following payments or issue the following
                shares and options:

            

    

    
      	 	
              (a)

            	
              As
                partial consideration for the rights granted by the LICENSORS to
                LICENSEE
                under this AGREEMENT, LICENSEE will issue to the LICENSORS the following
                securities, which will be allocated among the LICENSORS as they shall
                direct LICENSEE in writing:

            

    

    
       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (i)

              	
                Five
                  Hundred Thousand (500,000) shares (the “SHARES”) of LICENSEE’s common
                  stock, par value of $0.001 per share (the “COMMON STOCK”); LICENSEE
                  represents and warrants to LICENSORS that the SHARES equal ten
                  percent
                  (10%) of the outstanding shares of COMMON STOCK of the LICENSEE
                  as of the
                  EFFECTIVE DATE; LICENSEE will issue the SHARES within 30 days of
                  the
                  EFFECTIVE DATE pursuant to the Stock Purchase Agreement attached
                  hereto as
                  Exhibit III; and 

              

      

    

    
      	 	
              (ii)
                

            	
              Stock
                options (the “OPTIONS”) to purchase One Hundred Thousand (100,000) shares
                of COMMON STOCK at an exercise price (the “EXERCISE PRICE”) equal to
                $0.001 per share; the OPTIONS will expire on the fifteenth anniversary
                hereof. LICENSEE represents and warrants to the LICENSORS that the
                shares
                subject to the OPTIONS equal two percent (2%) of outstanding COMMON
                STOCK
                of LICENSEE as of the EFFECTIVE DATE. The OPTIONS will vest and become
                exercisable according to the following schedule: (A) fifty percent
                (50%)
                upon completion of the dosing of the last patient for both
                the blood and solid tumor
                PHASE 1 trials for
                the first LICENSED
                PRODUCT; (B) twenty-five percent (25%) upon enrollment of
                the first
                patient in a multi-center PIVOTAL STUDY for a LICENSED PRODUCT; and
                (C) twenty-five percent (25%) upon the filing of an IND on
                any
                LICENSED PRODUCT that is covered by the PATENT RIGHTS entitled
                “Arsenic-Lipid Derivatives as a Treatment for Cancer” (MDA04-076). The
                OPTIONS shall be in the form attached hereto as Exhibit V;
                and

            

    

    
       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (b)

              	
                The
                  LICENSEE agrees to pay UTMDACC non-refundable quarterly royalties
                  in an
                  amount equal to [***] percent ([***]%) of NET SALES by the LICENSEE
                  of a
                  LICENSED PRODUCT, and either (i) [***] percent ([***]%) of NET
                  SALES by
                  any sublicensee of a LICENSED PRODUCT, or (ii) in the event of
                  a
                  sublicense prior to a PIVOTAL TRIAL, [***]% of any royalties received
                  by
                  LICENSEE from such sublicensee;
                  and

              

      

    

    
      	 	
              (c)

            	
              In
                a country in which no patent application included in PATENT RIGHTS
                is
                filed (but there is a product or service manufactured, used or sold
                in
                such country that if manufactured, used or sold in any MAJOR MARKET
                COUNTRY would be covered by a VALID CLAIM within PATENT RIGHTS in
                such
                country) and/or in which no patent included in PATENT RIGHTS has
                issued
                that would provide the LICENSEE with protection from competition,
                LICENSEE
                agrees to pay UTMDACC non-refundable royalties equal to [***] percent
                ([***]%) of NET SALES by LICENSEE or any sublicensee in such country;
                and

            

    

    
      	 	
              (d)

            	
              LICENSEE
                shall reimburse UTMDACC for all documented out-of-pocket expenses
                incurred
                by UTMDACC and A&M in filing, prosecuting, enforcing and maintaining
                PATENT RIGHTS prior to the date on which LICENSEE assumes control
                of the
                prosecution of the PATENT RIGHTS, such amount not to exceed $[***]
                (the
                “PATENT EXPENSES”). UTMDACC will invoice LICENSEE within 30 calendar days
                of the EFFECTIVE DATE for the PATENT EXPENSES. The invoiced amounts
                will
                be due and payable by LICENSEE within 30 calendar days of invoice;
                and

            

    

    
       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (e)

              	
                LICENSEE
                  shall pay UTMDACC a nonrefundable license fee in the amount of
                  $125,000.
                  This fee will not reduce the amount of any other payment provided
                  for in
                  this ARTICLE IV, and is due and payable within 30 calendar days
                  after the
                  LICENSEE has received an invoice for the amount from UTMDACC;
                  and

              

      

    

    
      	 	
              (f)

            	
              LICENSEE
                shall pay UTMDACC the following milestone fees, which shall be due
                and
                payable within 30 calendar days of such milestone event, whether
                such
                milestone event is achieved by the LICENSEE, its AFFILIATE
                or
                sublicensee:

            

    

    
      	 	
              (i)

            	
              $100,000
                upon the dosing of the first patient in the first company sponsored
                PHASE
                1 clinical trial of the first LICENSED
                PRODUCT;

            

    

    
      	 	
              (ii)

            	
              $[***]
                upon [***] of the first LICENSED
                PRODUCT;

            

    

    
      	 	
              (iii)

            	
              $[***]
                upon [***] of the first LICENSED
                PRODUCT;

            

    

    
      	 	
              (iv)

            	
              $[***]
                [***] for a LICENSED PRODUCT; and

            

    

    
      	 	
              (v)

            	
              $[***]
                [***] of the first LICENSED PRODUCT in a
                MAJOR MARKET COUNTRY.

            

    

    (g)    In
      the
      event that the LICENSEE sublicenses its rights in any jurisdiction prior to
      the
      commencement of a PIVOTAL STUDY, then the LICENSEE shall pay UTMDACC the [***]
      percent ([***]%) of all consideration received from such sublicense other than
      (i) payments received by LICENSEE from a sublicense as a result of the purchase
      or sale of debt or equity securities of LICENSEE by such sublicense, and (ii)
      payments for research and development of the LICENSED PRODUCTS; and (iii)
      royalties received from such sublicensee for the sale of LICENSED PRODUCTS
      (as
      this is addressed previously in this Section); provided, however, that any
      such
      sublicense payments shall be fully creditable against the milestone payments
      described in section 4.1(f). For purposes of clarity, UTMDACC shall be entitled
      to the receive the greater of (1) the amounts owed to UTMDACC as a result of
      a
      sublicense prior to a PIVOTAL TRIAL pursuant to this Section 4.1(g) and (2)
      the
      milestone payments owed to UTMDACC pursuant to Section 4.1(f).

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              4.2

            	
              Notwithstanding
                the consideration due LICENSORS in Section
                4.1:

            

    

    
      	 	
              (a)

            	
              No
                multiple royalties shall be payable because the use, lease or sale
                of any
                LICENSED PRODUCT or Section 4.1(c) Product is, or shall be, covered
                by
                more than one valid and unexpired claim contained in the PATENT
                RIGHTS;
                and

            

    

    
      	 	
              (b)

            	
              In
                the event that a LICENSED PRODUCT or Section 4.1(c) Product is sold
                in the
                form of a combination product containing one or more products or
                technologies which are themselves not a LICENSED PRODUCT, the NET
                SALES
                for such combination product shall be calculated by multiplying the
                sales
                price of such combination product by the fraction A/(A+B) where A
                is the
                invoice price of the LICENSED PRODUCT (or if sold to an AFFILIATE,
                A shall
                be the fair market value of the LICENSED PRODUCT), and B is the total
                invoice price of the other products or technologies (or if sold to
                an
                AFFILIATE, B shall be the fair market value of the LICENSED PRODUCT).
                In
                the case of a combination product which includes one or more LICENSED
                PRODUCTS, the NET
                SALES
                for such combination product upon which the royalty due to UTMDACC
                is
                based shall not be less than the normal aggregate NET
                SALES
                for such LICENSED PRODUCT; and

            

    

    
       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (c)

              	
                To
                  the extent that the LICENSEE or any sublicensee is required, by
                  order or
                  judgment of any court to obtain in any jurisdiction any license
                  from a
                  third party in order to practice the rights granted to the LICENSEE
                  by the
                  LICENSORS hereunder under issued patents in such jurisdiction,
                  then up to
                  [***] percent ([***]%) of the royalties payable to such third party
                  may be
                  deducted from royalties otherwise payable to UTMDACC from the LICENSEE
                  or
                  sublicensee in that jurisdiction, provided that in no event shall
                  the
                  royalties payable to UTMDACC pursuant to Section 4.1 in any quarterly
                  period in such jurisdiction be reduced by more than [***] percent
                  ([***]%)
                  as a result of any such deduction;
                  and

              

      

    

    
      	 	
              (d)

            	
              LICENSEE’s
                royalty obligations under Section 4.1(b) shall terminate, on a
                country-by-country basis, with respect to each LICENSED PRODUCT upon
                the
                expiration date in such country of the last to expire of any patent
                included in the PATENT RIGHTS covering the sale of such LICENSED
                PRODUCT
                in such country; and

            

    

    
      	 	
              (e)

            	
              LICENSEE’s
                royalty obligations under Section 4.1(c) shall terminate, on a
                country-by-country basis ten years after commercialization of Section
                4.1(c) Product in such country.

            

    

    
      	
              4.3

            	
              Unless
                otherwise provided, all payments pursuant to Section 4.1 shall be
                payable
                within 30 calendar days after March 31, June 30, September 30 and
                December
                31 of each year during the term of this AGREEMENT, at which time
                LICENSEE
                will also deliver to UTMDACC a true and accurate report, giving such
                particulars of the business conducted by LICENSEE and its sublicensees,
                if
                any exist, during the preceding three calendar months under this
                AGREEMENT
                as necessary for UTMDACC to account for LICENSEE's payments hereunder.
                This report will include pertinent data, including, but not limited
                to:
                

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (a)    accounting
      methodologies used to account for and calculate the items included in the report
      and any differences in such accounting methodologies used by LICENSEE since
      the
      previous report; and

    (b)    a
      list of
      LICENSED PRODUCTS and Section 4.1(c) Products produced for the preceding six
      calendar months categorized by the technology it relates to under PATENT RIGHTS;
      and

    (c)    total
      quantities of LICENSED PRODUCTS and Section 4.1(c) Products produced by the
      category listed in Section 4.2(b); and

    (d)    total
      SALES by the category listed in Section 4.2(b); and 

    (e)    the
      calculation of NET SALES by the category listed in Section 4.2(b);
      and

    
      	 	
              (f)

            	
              the
                royalties so computed and due UTMDACC by the category listed in Section
                4.2(b); and

            

    

    
      	 	
              (g)

            	
              all
                consideration received from each sublicensee or assignee related
                to this
                license and payments due UTMDACC;
                and

            

    

    (h)    all
      other
      amounts due UTMDACC herein.

    Simultaneously
      with the delivery of each such report, LICENSEE agrees to pay UTMDACC the amount
      due, if any, for the period of such report. This report shall be regardless
      of
      whether any payments are due.

    
      	
              4.4

            	
              During
                the term of this AGREEMENT and for one year thereafter, LICENSEE
                agrees to
                keep complete and accurate records of its and its sublicensees' SALES
                and
                NET SALES in sufficient detail to enable the royalties and other
                payments
                due hereunder to be determined. LICENSEE agrees to permit UTMDACC
                or its
                representatives, at UTMDACC's expense, to periodically examine LICENSEE’s
                books, ledgers, and records during regular business hours for the
                purpose
                of and to the extent necessary to verify any report required under
                this
                AGREEMENT. If any amounts due UTMDACC are determined to have been
                underpaid in an amount equal to or greater than [***] percent ([***]%)
                of
                the total amount due during the period so examined, then LICENSEE
                will pay
                the cost of the examination plus accrued interest at the highest
                allowable
                rate.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      
        	4.5	Within 30 calendar days following each anniversary
                of the
                EFFECTIVE DATE, LICENSEE will deliver to UTMDACC a written progress
                report
                as to LICENSEE's (and any sublicensee’s) efforts and accomplishments
                during the preceding year in diligently commercializing LICENSED
                SUBJECT
                MATTER in the LICENSED TERRITORY and LICENSEE's (and sublicensees')
                commercialization plans for the upcoming year. Any such reports provided
                pursuant to this Section 4.5 shall be treated as Confidential Information
                pursuant to Article XI.

      

      
        	
                4.6

              	
                All
                  amounts payable hereunder by LICENSEE will be paid in United States
                  funds
                  without deductions for taxes, assessments, fees, or charges of
                  any kind.
                  Checks are to be made payable to The University of Texas M. D.
                  Anderson
                  Cancer Center, and sent by United States mail to Box 297402, Houston,
                  Texas 77297, Attention: Manager, Sponsored Programs or by wire
                  transfer
                  to:

              

      

    

    BANK
      ONE
      TEXAS 
      910
        TRAVIS

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    HOUSTON,
      TEXAS 77002

    SWIFT:
      [***]

    ABA
      ROUTING NO: 
      [***]

    ACCOUNT
      NAME: UNIV.
      OF
      TEXAS M. D. ANDERSON CANCER CENTER

    ACCOUNT
      NO:       [***]

    REFERENCE:    include
      title and EFFECTIVE DATE of AGREEMENT and type of payment (e.g., license
      documentation fee, milestone payment, royalty [including applicable
      patent/application identified by UTMDACC reference number and patent number
      or
      application serial number], or maintenance fee, etc.). 

    

    V. SPONSORED
      RESEARCH

    
      	
              5.1

            	
              Within
                60 days of the EFFECTIVE DATE, the parties shall enter into a sponsored
                research agreement related to the LICENSED SUBJECT MATTER for $100,000
                annually with UTMDACC to support work with Dr. Verstovsek and a separate
                sponsored research agreement for $100,000 annually with A&M to support
                work with Dr. Zingaro. LICENSEE shall maintain such sponsored research
                agreements for at least a period of two years. For clarity, the total
                amount of each sponsored research agreement for the two year period
                will
                be $200,000.

            

    

    
      	
              5.2

            	
              If
                LICENSEE desires to sponsor additional research for or related to
                the
                LICENSED SUBJECT MATTER, and particularly where LICENSEE receives
                payments
                for sponsored research pursuant to a sublicense under this AGREEMENT,
                LICENSEE (a) will notify UTMDACC and A&M in writing of all
                opportunities to conduct this sponsored research (including clinical
                trials, if applicable), (b) solicit research and/or clinical proposals
                from UTMDACC and A&M for this purpose, and (c) will give good faith
                consideration to funding the proposals at UTMDACC and/or
                A&M.

            

    

    
       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                5.3

              	
                LICENSOR
                  agrees that any and all intellectual property or know-how that
                  arises out
                  of the sponsored research as described in Section 5.1 shall be
                  added to
                  Exhibit II, considered as PATENT RIGHTS hereunder and be made a
                  part of
                  this AGREEMENT.

              

      

    

    

    VI. PATENTS
      AND INVENTIONS

    
      	
              6.1

            	
              Following
                the EFFECTIVE DATE, LICENSEE shall be responsible for preparing,
                filing,
                prosecuting and maintaining the patent applications and patents included
                within the PATENT
                RIGHTS and
                for paying all associated costs using patent counsel reasonably acceptable
                to UTMDACC, which shall initially be Ropes & Gray. LICENSEE will
                directly notify and provide copies to UTMDACC and their selected
                outside
                patent counsel, at no cost to LICENSEE, of any official communications
                from United States and foreign patent offices relating to said prosecution
                within 30 days of receipt as well as copies of communications to
                the
                various patent offices so that UTMDACC may be informed and apprised
                of the
                continuing prosecution of the patent applications and patents included
                within the PATENT
                RIGHTS. LICENSEE
                shall give UTMDACC at least 10 business days to review and comment
                on any
                communications to the various patent offices. Additionally,
                LICENSEE shall direct their counsel to consult with UTMDACC’s outside
                patent counsel on patent strategy related to the PATENT RIGHTS.
                

            

    

    
      	
              6.2

            	
              LICENSEE
                shall keep UTMDACC informed as to their plans to file and UTMDACC
                will
                have reasonable opportunities to participate in decision making on
                decisions affecting filing, prosecution and maintenance of the patent
                applications and patents included within the PATENT
                RIGHTS,
                including, without limitation reasonable opportunity to review the
                abandonment of any patent applications and patents or change of inventors
                on patent applications and patents included within the PATENT
                RIGHTS,
                and LICENSEE will use reasonable efforts to incorporate UTMDACC’s
                reasonable suggestions regarding said prosecution. Additionally,
                LICENSEE
                will use reasonable efforts to amend any patent application to include
                claims reasonably requested by UTMDACC to protect LICENSED
                SUBJECT MATTER.
                No case will be abandoned without giving UTMDACC at least 30 days
                notice
                and opportunity to pursue the application. If LICENSEE notifies UTMDACC
                that it does not intend to file in any national jurisdiction, pay
                the cost
                of any application or of LICENSEE’s plans to abandon an application or
                patent within PATENT RIGHTS, then UTMDACC and/or A&M may file or
                pursue such application in that national jurisdiction, if applicable,
                at
                its own expense and LICENSEE will have no further rights to such
                application or patent.

            

    

    
       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	
                6.3

              	
                If
                  UTMDACC reasonably demonstrates that it is not being adequately
                  informed
                  or apprised of the continuing prosecution of patent applications
                  and
                  patents included within the PATENT
                  RIGHTS
                  or
                  that it is not being provided with reasonable opportunities to
                  participate
                  in decision making as indicated in the above paragraph, UTMDACC
                  shall be
                  entitled to engage, at LICENSEE’s reasonable expense, independent patent
                  counsel to review and evaluate patent prosecution and filing of
                  patents
                  and patent applications included in PATENT RIGHTS. Henceforth UTMDACC
                  and
                  LICENSEE shall share responsibility for patent prosecution, with
                  LICENSEE
                  reimbursing UTMDACC in full for any reasonable patent expenses
                  incurred by
                  UTMDACC.

              

      

    

    
      	
              6.4

            	
              The
                Parties agree that they share a common legal interest to get valid
                enforceable patents and that UTMDACC, A&M and LICENSEE will keep all
                privileged information received pursuant to this Article VI
                confidential.

            

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    VII. INFRINGEMENT
      BY THIRD PARTIES

    
      	
              7.1

            	
              If
                either LICENSEE or UTMDACC or A&M becomes aware of a product made,
                used or sold in the LICENSED
                TERRITORY,
                which it believes infringes an issued VALID
                CLAIM,
                the Party obtaining such knowledge shall promptly advise the other
                Parties
                of all relevant facts and circumstances pertaining to the potential
                infringement. LICENSEE shall have the first right to enforce any
                patent
                rights against such infringement, at its own expense. The LICENSORS
                shall
                cooperate with LICENSEE in such effort, at LICENSEE's expense, including
                being joined as a party to such action, if necessary. After
                reimbursement of LICENSEE’s reasonable legal costs and expenses related to
                such recovery, LICENSEE agrees to pay UTMDACC [***] percent ([***]%)
                of
                any award for punitive damages and: (a) [***] percent ([***]%) of
                any
                monetary recovery that is for sales of LICENSED PRODUCTS lost due
                to the
                infringement; or (b) [***] percent ([***]%) of reasonable royalties
                awarded in any recovery in which the award is for reasonable
                royalties.

            

    

    
      	
              7.2

            	
              If
                LICENSEE fails, within six (6) months after receiving notice from
                UTMDACC
                and/or A&M of a potential infringement, or providing UTMDACC and
                A&M with notice of such infringement, to either (a) terminate such
                infringement or (b) institute an action to prevent continuation thereof
                and, thereafter to prosecute such action diligently, or if LICENSEE
                notifies UTMDACC and A&M that it does not plan to terminate the
                infringement or institute such action, then UTMDACC and A&M shall have
                the right to do so at its own expense; provided however, that UTMDACC
                and
                A&M first consult with LICENSEE and gives due consideration to
                LICENSEE’s reasons for not instituting actions to terminate or otherwise
                prevent continuation of such infringement. If UTMDACC and/or A&M
                decide to pursue such infringement, LICENSEE shall cooperate with
                UTMDACC
                and/or A&M in such effort including being joined as a party to such
                action if necessary. UTMDACC and/or A&M shall be entitled to retain
                all damages or costs awarded in such
                action.

            

    

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    VIII. PATENT
      MARKING

    
      	
              8.1

            	
              LICENSEE
                agrees that all packaging containing individual LICENSED PRODUCT(S),
                documentation therefor, and when possible for actual LICENSED PRODUCT(S)
                SOLD by LICENSEE, AFFILIATES, and/or sublicensees of LICENSEE will
                be
                permanently and legibly marked with the number of any applicable
                patent(s)
                licensed hereunder in accordance with each country's patent laws,
                including Title 35, United States
                Code.

            

    

    

    IX. INDEMNIFICATION
      AND INSURANCE

    
      
        	9.1	LICENSEE agrees to hold harmless and indemnify
                BOARD,
                SYSTEM, UTMDACC, A&M, their Regents, officers, employees, students and
                agents from and against any third-party claims, demands, or causes
                of
                action whatsoever, costs of suit and reasonable attorney’s fees, including
                without limitation, those costs arising on account of any injury
                or death
                of persons or damage to property (“CLAIMS”) caused by, or arising out of,
                or resulting from, the exercise or practice of the rights granted
                hereunder by LICENSEE, its officers, its AFFILIATES or their officers,
                employees, agents or representatives, other than with respect to
                CLAIMS
                arising out of or resulting from the willful misconduct or gross
                negligence of a LICENSOR.

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	
                9.2

              	
                In
                  no event shall BOARD, SYSTEM, UTMDACC or A&M be liable for any
                  indirect, special, consequential or punitive damages (including,
                  without
                  limitation, damages for loss of profits or expected savings or
                  other
                  economic losses, or for injury to persons or property) arising
                  out of, or
                  in connection with, this AGREEMENT or its subject matter, regardless
                  of
                  whether BOARD, SYSTEM, UTMDACC or A&M knows or should know of the
                  possibility of such damages. 

              

      

      
        	9.3	Beginning at the time when any LICENSED SUBJECT
                MATTER is
                being distributed or sold (including for the purpose of obtaining
                regulatory approvals) by LICENSEE or by a sublicensee, LICENSEE shall,
                at
                its sole cost and expense, procure and maintain commercial general
                liability insurance in amounts not less than $2,000,000 per incident
                and
                $2,000,000 annual aggregate, and LICENSEE shall use reasonable efforts
                to
                have the BOARD, SYSTEM, UTMDACC, A&M, their Regents, officers, and
                employees named as additional insureds. Such commercial general liability
                insurance shall provide: (i) product liability coverage; (ii) broad
                form
                contractual liability coverage for LICENSEE's indemnification under
                this
                AGREEMENT; and (iii) coverage for litigation costs. The minimum amounts
                of
                insurance coverage required herein shall not be construed to create
                a
                limit of LICENSEE's liability with respect to its indemnification
                under
                this AGREEMENT.

      

    

    
      
        	
                9.4

              	
                LICENSEE
                  shall provide UTMDACC and A&M with written evidence of such insurance
                  within 30 days of its procurement. Additionally, LICENSEE shall
                  provide
                  UTMDACC and A&M with written notice of at least fifteen (15) days
                  prior to the cancellation, non-renewal or material change in such
                  insurance. 

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	9.5	LICENSEE shall maintain such commercial general
                liability
                insurance beyond the expiration or termination of this AGREEMENT
                during:
                (i) the period that any LICENSED SUBJECT MATTER developed pursuant
                to this
                AGREEMENT is being commercially distributed or sold by LICENSEE or
                by a
                sublicensee or agent of LICENSEE; and (ii) the five (5) year period
                immediately after such period.

      

    

    
      
         

        X. USE
          OF
          BOARD AND UTMDACC’S NAME

      

    

    
      
        	
                10.1

              	
                LICENSEE
                  will not use the name of (or the name of any employee of) UTMDACC,
                  SYSTEM,
                  BOARD or A&M in any advertising, promotional or sales literature, on
                  its Web site, without the advance express written consent of the
                  following:

              

      

         

        In
          the
          case of UTMDACC:

         

      

    

    M.
      D.
      Anderson Services Corporation

    7505
      S.
      Main, Suite 500, Unit 0525

    Houston,
      TX 77030

    ATTENTION:
      Natalie Wright

    Email:
      nwright@mdanderson.org

     

    In
      the
      case of A&M:

     

    Executive
      Director

    Technology
      License Office

    The
      Texas
      A&M University System

    3369
      TAMU

    College
      Station, Texas 77843-3369

     

    Notwithstanding
      the above, LICENSEE may use the name of (or name of employee of) UTMDACC,
      SYSTEM, BOARD or A&M in routine business correspondence, or as may be
      required by law, rule or regulation in connection with any financing without
      express written consent.

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    XI. CONFIDENTIAL
      INFORMATION AND PUBLICATION

    
      	
              11.1

            	
              UTMDACC,
                A&M and LICENSEE each agree that all information related to this
                AGREEMENT and contained in documents marked "confidential" and forwarded
                to one by the other (i) are to be received in strict confidence,
                (ii) are
                to be used only for the purposes of this AGREEMENT, which may include
                disclosure of certain confidential information to the FDA and foreign
                regulatory agencies and which disclosures shall be expressly permitted
                hereunder and (iii) are not to be disclosed by the recipient party
                (except
                as required by law or court order), its agents or employees without
                the
                prior written consent of the other party, except to the extent that
                the
                recipient party can establish competent written proof that such
                information:

            

    

    
      	 	
              (a)

            	
              was
                in the public domain at the time of disclosure;
                or

            

    

    
      	 	
              (b)

            	
              later
                became part of the public domain through no act or omission of the
                recipient party, its employees, agents, successors or assigns;
                or

            

    

    
      	 	
              (c)

            	
              was
                lawfully disclosed to the recipient party by a third party having
                the
                right to disclose it and not under an obligation of confidence to
                the
                disclosing party; or

            

    

    
      	 	
              (d)

            	
              was
                already known by the recipient party at the time of disclosure;
                or

            

    

    
      	 	
              (e)

            	
              was
                independently developed by the recipient without use of the other
                party’s
                confidential information; or 

            

    

    
      	 	
              (f)

            	
              is
                required by law or regulation to be disclosed.

            

    

    
      	
              11.2

            	
              Each
                party’s obligation of confidence hereunder will be fulfilled by using at
                least the same degree of care with the other party's confidential
                information as it uses to protect its own confidential information,
                but
                always at least a reasonable degree of care. This obligation will
                exist
                while this AGREEMENT is in force and for a period of three (3) years
                thereafter.

            

    

    
       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        	
                11.3

              	
                UTMDACC
                  and A&M reserve the right to publish the general scientific findings
                  from research related to LICENSED SUBJECT MATTER, with due regard
                  to the
                  protection of LICENSEE’s confidential information. UTMDACC and A&M
                  will submit the manuscript of any proposed publication to LICENSEE
                  at
                  least 30 calendar days before publication, and LICENSEE shall have
                  the
                  right to review and comment upon the publication in order to protect
                  LICENSEE’s confidential information and to protect any potential
                  inventions set forth therein. Upon LICENSEE’s request, publication may be
                  delayed up to 60 additional calendar days to enable LICENSEE to
                  secure
                  adequate intellectual property protection on inventions of UTMDACC
                  and/or
                  A&M that may be set forth in the publication and to which LICENSEE
                  has
                  rights under this AGREEMENT.

              

      

    

    

    XII. ASSIGNMENT

    
      	
              12.1

            	
              Except
                in connection with a merger, acquisition, sale or transfer of all
                or
                substantially all of LICENSEE's assets to a third party or an AFFILIATE,
                this AGREEMENT may not be assigned by LICENSEE without the prior
                written
                consent of UTMDACC and A&M, which will not be unreasonably
                withheld.

            

    

    

    XIII. TERM
      AND TERMINATION

    
      	
              13.1

            	
              Subject
                to Sections 13.2 and 13.3 hereinbelow, the term of this AGREEMENT
                is from
                the EFFECTIVE DATE until the expiration of the last VALID CLAIM contained
                in the PATENT RIGHTS. 

            

    

    
       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	
                13.2

              	
                Subject
                  to any rights herein which survive termination, this AGREEMENT
                  will
                  earlier terminate in its
                  entirety:

              

      

    

    
      	 	
              (a)

            	
              automatically,
                if LICENSEE becomes bankrupt or insolvent and/or if the business
                of
                LICENSEE shall be placed in the hands of a receiver, assignee, or
                trustee,
                whether by voluntary act of LICENSEE or otherwise;
                or

            

    

    
      	 	
              (b)

            	
              upon
                30 calendar days written notice from UTMDACC, if LICENSEE breaches
                or
                defaults on the payment or report obligations of ARTICLE IV, or use
                of
                name obligations of ARTICLE X unless, before the end of the such
                30-calendar day notice period, LICENSEE has cured the default or
                breach to
                UTMDACC’s satisfaction, and so notifies UTMDACC, stating the manner of the
                cure; or 

            

    

    
      	 	
              (c)

            	
              upon
                90 calendar days written notice from UTMDACC if LICENSEE breaches
                or
                defaults on any other material obligation under this AGREEMENT, unless,
                before the end of the such 90 calendar-day notice period, LICENSEE
                has
                cured the default or breach to UTMDACC’s satisfaction and so notifies
                UTMDACC, stating the manner of the cure; or

            

    

    
      	 	
              (d)

            	
              at
                any time by mutual written agreement between LICENSEE, UTMDACC and
                A&M, subject to any terms herein which survive termination;
                or

            

    

    
      	 	
              (e)

            	
              at
                any time upon 90 days written notice from the LICENSEE to UTMDACC
                and
                A&M; or

            

    

    
      	 	
              (f)

            	
              if
                LICENSEE has defaulted or been late on its payment obligations pursuant
                to
                the terms of this AGREEMENT on any three occasions in a 12 month
                period.

            

    

    13.3   Upon
      termination of this AGREEMENT:

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (a)

            	
              nothing
                herein will be construed to release either party of any obligation
                maturing prior to the effective date of the termination;
                and

            

    

    
      	 	
              (b)

            	
              LICENSEE
                covenants and agrees to be bound by the provisions of Articles IX
                (Indemnification and Insurance), X (Use of Board and UTMDACC’s Name), and
                XI (Confidential Information and Publication);
                and

            

    

    
      	 	
              (c)

            	
              LICENSEE
                may, after the effective date of the termination, sell all LICENSED
                PRODUCTS and parts therefor that it has on hand at the date of
                termination, if, to the extent covered by an issued VALID CLAIM,
                LICENSEE
                pays the earned royalty thereon and any other amounts due pursuant
                to
                Article IV of this AGREEMENT as a result of such SALES; and
                

            

    

    
      	 	
              (d)

            	
              LICENSEE
                shall grant to BOARD and UTMDACC an option to negotiate a nonexclusive,
                royalty bearing license with the right to sublicense others with
                respect
                to improvements made by LICENSEE in the LICENSED SUBJECT MATTER;
                and

            

    

    
      	 	
              (e)

            	
              Subject
                to Section 13.4(c), LICENSEE agrees to cease and desist any use and
                all
                SALE of the LICENSED SUBJECT MATTER and LICENSED PRODUCTS to the
                extent
                covered by an issued VALID
                CLAIM.

            

    

    

    XIV.
       DUE
      DILIGENCE

    
      	
              14.1

            	
              LICENSEE
                shall use all commercially reasonable efforts to bring LICENSED
                PRODUCTS
                to
                market in the MAJOR MARKET COUNTRIES through a thorough, vigorous
                and
                diligent program for exploitation of the LICENSED
                SUBJECT MATTER, including
                without limitation conducting pre-clinical and clinical, and
                shall continue active, diligent marketing efforts for LICENSED
                PRODUCTS
                throughout the life of this
                AGREEMENT.

            

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    XV. WARRANTY:
      SUPERIOR-RIGHTS

    
      	
              15.1

            	
              Except
                for the rights, if any, of the Government of the United States of
                America
                as set forth below, BOARD and A&M represent and warrant their belief
                that (a) they are the owner of the entire right, title, and interest
                in
                and to LICENSED SUBJECT MATTER, (b) they have the sole right to grant
                licenses thereunder, and (c) they have not knowingly granted a license
                thereunder to any other entity that would restrict rights granted
                hereunder except as stated herein.

            

    

    
      	
              15.2

            	
              LICENSEE
                understands that the LICENSED SUBJECT MATTER may have been developed
                under
                a funding agreement with the Government of the United States of America
                and, if so, that the Government may have certain rights relative
                thereto.
                This AGREEMENT is explicitly made subject to the Government's rights
                under
                any such agreement and any applicable law or regulation, including
                P.L.
                96-517 as amended by P.L. 98-620. To the extent that there is a conflict
                between any such agreement, applicable law or regulation and this
                AGREEMENT, the terms of such Government agreement, applicable law
                or
                regulation shall prevail.

            

    

    
      	
              15.3

            	
              As
                of the EFFECTIVE DATE, to the knowledge and belief of UTMDACC’s and
                A&M’s respective offices of technology transfer, there is no claim,
                pending or threatened, of infringement, interference or invalidity
                regarding, any part or all of the PATENT RIGHTS and their use as
                contemplated in the underlying patent applications as presently
                drafted.

            

    

    
       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      
        	
                15.4

              	
                LICENSEE
                  UNDERSTANDS AND AGREES THAT BOARD, UTMDACC AND A&M, BY
                  THIS AGREEMENT,
                  MAKE NO REPRESENTATIONS AND MAKE NO WARRANTIES OF ANY KIND, EITHER
                  EXPRESS
                  OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY
                  OR
                  FITNESS FOR A PARTICULAR PURPOSE OR AS TO THE OPERABILITY OR FITNESS
                  FOR
                  ANY USE, SAFETY, EFFICACY, APPROVABILITY BY REGULATORY AUTHORITIES,
                  TIME
                  AND COST OF DEVELOPMENT, PATENTABILITY, AND/OR BREADTH OF THE LICENSED
                  SUBJECT MATTER. BOARD, UTMDACC AND A&M, BY THIS AGREEMENT, ALSO MAKE
                  NO REPRESENTATION AS TO WHETHER ANY PATENT COVERED BY PATENT RIGHTS
                  IS
                  VALID OR AS TO WHETHER THERE ARE ANY PATENTS NOW HELD, OR WHICH
                  WILL BE
                  HELD, BY OTHERS OR BY BOARD OR A&M DIRECTED TO LICENSED SUBJECT
                  MATTER, NOR DOES BOARD, UTMDACC OR A&M MAKE ANY REPRESENTATION THAT
                  THE INVENTIONS CONTAINED IN PATENT RIGHTS DO NOT INFRINGE ANY OTHER
                  PATENTS NOW HELD OR THAT WILL BE HELD BY OTHERS OR BY BOARD OR
                  A&M.

              

      

    

    
      	
              15.5

            	
              LICENSEE,
                by execution hereof, acknowledges, covenants and agrees that LICENSEE
                has
                not been induced in any way by BOARD, SYSTEM, UTMDACC, A&M or
                employees thereof to enter into this AGREEMENT, and further warrants
                and
                represents that (a) LICENSEE has conducted sufficient due diligence
                with
                respect to all items and issues pertaining to this AGREEMENT; and
                (b)
                LICENSEE has adequate knowledge and expertise, or has used knowledgeable
                and expert consultants, to adequately conduct such due diligence,
                and
                agrees to accept all risks inherent
                herein.

            

    

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    XVI. GENERAL

    
      	
              16.1

            	
              This
                AGREEMENT constitutes the entire and only agreement between the parties
                for LICENSED SUBJECT MATTER and all other prior negotiations,
                representations, agreements and understandings are superseded hereby.
                No
                agreements altering or supplementing the terms hereof will be made
                except
                by a written document signed by both
                parties.

            

    

    
      	
              16.2

            	
              Any
                notice required by this AGREEMENT must be given by prepaid, first
                class,
                certified mail, return receipt requested, or other overnight delivery
                service and addressed in the case of UTMDACC
                to:

            

    

    The
      University of Texas M. D. Anderson Cancer Center

    Office
      of
      Technology Commercialization

    7515
      S.
      Main, Suite 490, Unit 0510

    Houston,
      Texas 77030

    ATTENTION:
      William J. Doty

     

    or
      in the
      case of A&M to:

     

    Executive
      Director

    Technology
      Licensing Office

    The
      Texas
      A&M University System

    3369
      TAMU

    College
      Station, Texas 77843-3369

     

    or
      in the
      case of LICENSEE to:

     

    Ziopharm,
      Inc.

    787
      Seventh Avenue, 48th
      floor

    New
      York,
      NY 10019

    ATTENTION:
      President

     

    or
      other
      addresses as may be given from time to time under the terms of this notice
      provision.

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	
              16.3

            	
              LICENSEE
                must comply with all applicable federal, state and local laws and
                regulations in connection with its activities pursuant to this
                AGREEMENT.

            

    

    
      	
              16.4

            	
              This
                AGREEMENT will be construed and enforced in accordance with the laws
                of
                the United States of America and of the State of Texas, without regard
                to
                its conflict of law provisions. 

            

    

    
      	
              16.5

            	
              Any
                dispute or controversy arising out of or relating to this AGREEMENT,
                its
                construction or its actual or alleged breach will be decided by mediation.
                If the mediation does not result in a resolution of such dispute
                or
                controversy, it will be finally decided by an appropriate method
                of
                alternate dispute resolution, including without limitation, arbitration,
                conducted in the city of Houston, Harris County, Texas, in accordance
                with
                the applicable, then current, procedures of the American Arbitration
                Association. The arbitration panel will include members knowledgeable
                in
                the evaluation of the LICENSED SUBJECT MATTER. Judgment upon the
                award
                rendered may be entered in the highest court or forum having jurisdiction,
                state or federal. The provisions of this Section 16.5 will not apply
                to
                decisions on the validity of patent claims or to any dispute or
                controversy as to which any treaty or law prohibits such arbitration.
                The
                decision of the arbitration must be sanctioned by a court of law
                having
                jurisdiction to be binding upon and enforceable by the
                parties.

            

    

    
      	
              16.6

            	
              Failure
                of BOARD, UTMDACC or A&M to enforce a right under this AGREEMENT will
                not act as a waiver of right or the ability to later assert that
                right
                relative to the particular situation
                involved.

            

    

    
      	
              16.7

            	
              LICENSEE
                represents and warrants to LICENSORS that it is authorized to issue
                20,000,000 shares
                of COMMON
                STOCK,
                of which 5,000,000 are issued and outstanding as of the EFFECTIVE
                DATE,
                and 5,000,000 shares of PREFERRED
                STOCK,
                none of which are currently issued and outstanding. In addition,
                LICENSEE
                has
                issued options to purchase 863,875 shares of Common Stock, which
                options
                vest, if at all, upon the occurrence of milestone and other
                events.

            

    

    
       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      
        	
                16.8

              	
                Headings
                  included herein are for convenience only and will not be used to
                  construe
                  this AGREEMENT.

              

      

    

    
      	
              16.9

            	
              If
                any part of this AGREEMENT is for any reason found to be unenforceable,
                all other parts nevertheless will remain enforceable.
                

            

    

    
      	
              16.10

            	
              This
                AGREEMENT will not be binding upon the parties until it has been
                signed
                below on behalf of each party, in which event, it shall be effective
                as of
                the date recited on page one.

            

    

    
      	
              16.11

            	
              Each
                party hereto shall be excused from any breach of this AGREEMENT which
                is
                proximately caused by governmental regulation, act of war, strike,
                act of
                God or other similar circumstance normally deemed outside the control
                of
                the parties.

            

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused their duly authorized representatives to execute
      this
      AGREEMENT.

     

    
      
        	 	
                BOARD
                  OF REGENTS OF THE
UNIVERSITY
                  OF TEXAS SYSTEM 

              	 	 	ZIOPHARM, INC.
	 	 	 	 	 
	By 	/s/ John
                Mendelsohn, M.D.	 	 By	/s/ Jonathan
                Lewis
	 	
                
                  

                

                John Mendelsohn, M.D.

                President

                The
                  University of Texas

                M.
                  D. Anderson Cancer Center

              	 	 	
                
                  

                

                Name: Jonathan Lewis, M.D.

                Title: Chief Executive Officer

              
	
                Date:  8/17/04

              	 	Date: 8/16/04

      

    

     

    
      	
            	
              
                THE
                  UNIVERSITY OF TEXAS 

                M.
                  D. ANDERSON CANCER CENTER

              

            	 	 	THE TEXAS A&M UNIVERSITY
              SYSTEM
	 	 	 	 	 
	By 	/s/ Leon
              Leach	 	 By	/s/ 
	 	
              
                

              

              Leon Leach

              
                Executive
                  Vice President

                The
                  University of Texas

                M.
                  D. Anderson Cancer Center

              

            	 	 	
              
                

              

              Name: 

              Title: Vice Chancellor

            
	
              Date:  8/17/04

            	 	Date: 8/16/04

    

     

    
      	Approved as to Content:
	 	 	 
	 	 	 	 	 
	By 	/s/ William
              J. Doty	 	 	 
	 	
              
                

              

              William J. Doty

              
                Managing
                  Director, Technology 

                Commercialization

                M.
                  D. Anderson Cancer Center

              

            	 	 	
               

            
	
              Date:  8/24/04

            	 	 

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    MDA01-063
      “New Organic Arsenic Derivatives as a Treatment for Cancer,” Srdan Verstovsek,
      M.D., Ph.D., Ralph A. Zingaro Ph.D., Emil J. Freireich, M.D., Hatice Duzkale,
      M.D., Hagop M. Kantarjian, M.D.

    

    MDA04-076
      “Arsenic-Lipid Derivatives as a Treatment for Cancer,” Srdan Verstovsek, M.D.,
      Ph.D., Ralph A. Zingaro Ph.D., Hagop M. Kantarjian, M.D., M.
      Gao

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    EXHIBIT
      II

    

      IMPROVEMENTS
        AND NEW INVENTIONS FROM

      SPONSORED
        RESEARCH

    

    
 

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

       

      

        EXHIBIT
          III

         

        STOCK
          PURCHASE AGREEMENT

        

        THIS
          STOCK PURCHASE AGREEMENT ("Agreement")
          is
          entered into as of August 24, 2004, by and between the undersigned (the
          "Purchaser") Ziopharm, Inc., a
          Delaware Corporation having a business address at 787 Seventh Avenue, New
          York,
          NY 10019 (the “Corporation”).

        

        R E C I T A L S

        

        WHEREAS,
          the Corporation and the Purchaser have entered into a License Agreement
          of even
          date herewith (the “License Agreement”);

        

        WHEREAS,
          as partial consideration for the License Agreement, the Corporation has
          agreed
          to issue to the Purchaser the number of shares of common stock, par value
          $.001
          per share, of the Corporation (which class of shares is referred to herein
          as
          "Common
          Stock")
          set
          forth on the signature page hereof; 

        

        AGREEMENT

        

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

        

        1.    Issuance
          and Acquisition of Stock.

        

        (a)    In
          consideration of the license granted by the Purchaser under the License
          Agreement and for no other remuneration, immediately after the execution
          of this
          Agreement by the parties, the Corporation shall transfer to the Purchaser,
          and
          the Purchaser shall acquire from the Corporation, the number of shares
          of Common
          Stock listed beside the Purchaser's name on the signature page hereto (the
          "Stock").

        

        (b)    Within
          10
          days of the execution of this Agreement, the Corporation shall deliver
          to the
          Purchaser a certificate or certificates evidencing the Stock, registered
          in the
          name of the Purchaser.

        

        2.    Violation
          Of Transfer Provisions.
          The
          Corporation shall not be required to transfer on its books any shares of
          Stock
          which shall have been sold, transferred, assigned or pledged in violation
          of any
          of the provisions of this Agreement or to treat as owner of such shares
          or to
          accord the right to vote as such owner or to pay dividends to any transferee
          to
          whom such shares shall have been so sold, transferred, assigned or
          pledged.

        

        3.    Rights
          as Stockholder.
          During
          the term of this Agreement, except as otherwise provided herein, the Purchaser
          shall exercise all rights and privileges of a stockholder of the Corporation
          with respect to the Stock. Corporation will provide Purchaser with all
          reports
          and notices it is obligated in the future to provide generally to holders
          of its
          Common Stock or any of its preferred stock. 

        

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

        4.    Representations
          and Warranties by the Corporation. 

        

        The
          Corporation represents, warrants and covenants with the Purchaser as
          follows:

        

        (a)    The
          Corporation has all necessary power and capacity to execute and deliver
          this
          Agreement, to perform its obligations hereunder and to consummate the
          transaction contemplated hereby. This Agreement has been validly executed
          and
          delivered by the Corporation and constitutes the legal, valid and binding
          obligation of the Corporation, enforceable against the Corporation in accordance
          with its terms. The execution and delivery of this Agreement by the Corporation
          do not and the performance of its obligations under this Agreement will
          not
          conflict with or result in any breach or constitute a default under any
          contracts to which the Corporation is a party or by which the Corporation
          or any
          property or asset of the Corporation is bound or affected.

        

        (b)    The
          Corporation has good title to the Stock and owns the Stock free and clear
          of any
          security interests, liens, claims, pledges, options, rights of first refusal,
          agreements, limitations on voting rights, charges and other encumbrances
          of any
          nature whatsoever (collectively, “Liens”) other than restrictions on transfer
          imposed under the Securities Act of 1933, as amended (the “Securities Act”).
          Upon delivery thereof to the Purchaser, the Purchaser shall acquire good
          title
          to the Stock, free and clear of any liens other than the restrictions set
          forth
          in this Agreement and under the Securities Act. The Stock is validly issued,
          fully paid and non-assessable. The Corporation is transferring the Stock
          to the
          Purchaser hereunder pursuant to a valid exemption from registration under
          the
          Securities Act. 

        

        (c)    The
          Corporation is a corporation duly organized, validly existing, and in good
          standing under the laws of the State of Delaware. The Corporation has all
          requisite corporate power and authority to own and operate its properties
          and
          assets and to carry on its business as now conducted. The Corporation is
          duly
          qualified, is authorized to transact business, and is in good standing
          as a
          foreign corporation in all jurisdictions in which the nature of its activities
          and of its properties (both owned and leased) makes such qualification
          necessary, except for those jurisdictions in which failure to do so would
          not
          have a material adverse effect on the Corporation or its business and
          properties. Immediately
          prior to the issuance of the Stock as contemplated by this
          Agreement,
          the
          authorized capital stock of the Corporation will consist of: (i) 20,000,000
          shares of Common Stock, par value $0.001 per share, of which 5,000,000
          shares
          are issued and outstanding, and (ii) 5,000,000 shares of Preferred Stock,
          par
          value $0.001 per share, none of which are issued and outstanding. No other
          shares of capital stock are outstanding. Company has issued options to
          purchase
          863,875 shares of Common Stock, which options vest, if at all, upon the
          occurrence of milestone and other events. All issued and outstanding shares
          of
          the Company's Common Stock have been duly and validly authorized and issued,
          and
          are fully paid and are nonassessable.

        

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

        5.    Representations
          and Warranties by the Purchaser.

         

        The
          Purchaser represents, warrants and covenants with the Corporation as
          follows:

        

        (a)    The
          Purchaser has all necessary power and capacity to execute and deliver this
          Agreement, to perform its obligations hereunder and to consummate the
          transaction contemplated hereby. This Agreement has been validly executed
          and
          delivered by the Purchaser and constitutes the legal, valid and binding
          obligation of the Purchaser, enforceable against the Purchaser in accordance
          with its terms. The execution and delivery of this Agreement by the Purchaser
          do
          not and the performance of its obligations under this Agreement will not
          conflict with or result in any breach or constitute a default under any
          contracts to which the Purchaser is a party or by which the Purchaser or
          any
          property or asset of the Purchaser is bound or affected. 

         

        (b)    The
          Stock
          will be acquired by the Purchaser for his own account with the Purchaser's
          own
          funds for investment purposes and for the Purchaser's own account, not
          as a
          nominee or agent for any other person, firm or corporation, and not with
          a view
          to the sale or distribution of all or any part thereof, and the Purchaser
          has no
          present intention of selling, granting any participation in, or otherwise
          distributing, any or all of the Stock. The Purchaser does not have any
          contract,
          undertaking, agreement or arrangement with any person, firm or corporation
          to
          sell, transfer or grant any participation to any person, firm or corporation
          with respect to any or all of the Stock.

        

        (c)    The
          Purchaser understands that the Stock will not be registered under the Securities
          Act of 1933, as amended (the "Securities Act"), and that the Stock is being
          issued and sold to the Purchaser based upon an exemption from registration
          predicated in part on the accuracy and completeness of the Purchaser's
          representations and warranties appearing herein.

        

        (d)    The
          Purchaser agrees that in no event will the Purchaser sell, transfer, assign
          or
          pledge all or any part of the Stock or any interest therein, unless and
          until
          (i) the Purchaser shall have furnished the Corporation with an opinion
          of
          counsel satisfactory in form and content to the Corporation to the effect
          that
          (A) such disposition will not require registration of the Stock under the
          Securities Act or compliance with applicable state securities laws, or
          (B)
          appropriate action necessary for compliance with the Securities Act and
          applicable state securities laws has been taken; (ii) the Corporation shall
          have
          waived, expressly and in writing, its right under clause (i) of this subsection;
          and (iii) the proposed transferee of the Stock shall have provided the
          Corporation with a written agreement or undertaking by which such transferee
          agrees to be bound by all terms, conditions and limitations of this Agreement
          applicable to such transferee's transferor as if such transferee were a
          party
          hereto. The requirement of subparagraph (iii) shall not apply to any transfer
          (A) pursuant to an offering registered under the Securities Act, (B) pursuant
          to
          Rule 144 under the Securities Act or (C) effected in a market transaction
          otherwise exempt from registration under the Securities Act. Subject to
          applicable law, in the event of the Purchaser’s death, the Corporation will
          cooperate with the executor of the Purchaser’s estate to transfer the Stock to
          the appropriate parties. Subject to the terms of this Agreement and applicable
          laws, rules and regulations, the Corporation hereby acknowledges and agrees
          that
          Purchaser may transfer any of the stock to its employees and former employees
          pursuant to its current and future policies and practices regarding transfer
          of
          equity received in consideration of a license. 

        

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

        (e)    The
          Purchaser is able to fend for himself in connection with the transactions
          contemplated by this Agreement, has such knowledge and experience in financial
          and business matters (including investments in development stage biotechnology
          companies) as to be capable of evaluating the merits and risks of its investment
          in the Corporation, has the ability to bear the economic risks of its investment
          for an indefinite period of time and can afford a complete loss of its
          investment and has had the opportunity prior to the Purchaser's purchase
          of the
          Stock to ask questions of and receive answers from representatives of the
          Corporation concerning the finances, operations and business of the Corporation.
          The Purchaser acknowledges and agrees that (i) except for the Corporation’s
          representations and covenants herein and in the License Agreement, it is
          not
          relying upon any statement, promise or assurance of the Corporation or
          any
          investor in the Corporation (or any representative of the Corporation or
          any
          such investor) in arriving at the Purchaser's decision to purchase the
          Stock,
          and has not otherwise been induced to purchase the Stock by the Corporation
          or
          any such investor (or any representative of the Corporation or any such
          investor); and that (ii) it has decided to purchase the Stock based upon
          the
          Purchaser's own analysis of the merits and risks of investing in the Corporation
          without the intervention or assistance of any other person, firm or
          corporation.

        

        (f)    The
          Purchaser understands and acknowledges that the Purchaser will not be permitted
          to sell, transfer, assign or pledge the Stock until it is registered under
          the
          Securities Act or an exemption from the registration and prospectus delivery
          requirements of the Securities Act is available to the Purchaser, and that
          there
          is no assurance that such an exemption from registration will ever be available
          or that the Purchaser will ever be able to sell any of the Stock.

        

        (g)    All
          certificates representing the Stock and, until such time as the Stock is
          sold in
          an offering which is registered under the Securities Act or the Corporation
          shall have received an opinion of counsel satisfactory in form and content
          to
          the Corporation that such registration is not required in connection with
          a
          resale (or subsequent resale) of the Stock, all certificates issued in
          transfer
          thereof or substitution therefor, shall, where applicable, have endorsed
          thereon
          the following (or substantially equivalent) legends:

        

        (i)    THE
          SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
          THE
          SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES OR "BLUE SKY"
          LAWS,
          AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE
          TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT
          TO
          THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO
          ZIOPHARM,
          INC. THAT SUCH REGISTRATION IS NOT REQUIRED. ANY SUCH TRANSFER MAY ALSO
          BE
          SUBJECT TO APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS.

        

        (ii)    Any
          legend required to be placed thereon by any applicable state securities
          law.

        

        
          
            
            

          

          
            38

            
              

            

          

          
            
            

          

        

        (h)    The
          Corporation shall not be obligated to transfer any of the Stock if counsel
          for
          the Corporation determines that any applicable registration requirement
          under
          the Securities Act or any other applicable requirement of federal or state
          law
          has not been met.

        

        6.    General
          Provisions.

        

        (a)    No
          Assignments.
          The
          Purchaser shall not transfer, assign or encumber any of its rights, privileges,
          duties or obligations under this Agreement without the prior written consent
          of
          the Corporation, and any attempt to so transfer, assign or encumber shall
          be
          void.

        

        (b)    Notices.
          All
          notices and other communications which are required or permitted to be
          given
          pursuant to the terms of this Agreement shall be in writing and shall be
          sufficiently given (i) if personally delivered, (ii) if sent by telex or
          facsimile, provided that "answer-back" confirmation is received by the
          sender or
          (iii) upon receipt, if sent by registered or certified mail, postage paid
          return
          receipt requested in any case addressed as follows:

        

        (i)    If
          to the
          Corporation:

         

        Ziopharm,
          Inc.

        787
          Seventh Avenue, 48th
          Floor

        New
          York,
          NY 10019

        Attn:
          President

         

        (ii)    If
          to the
          Purchaser, to the address set forth on the signature page of this
          Agreement.

        

        The
          address of a party, for the purposes of this Section 7(b)(ii), may be changed
          by
          giving written notice to the other party of such change in the manner provided
          herein for giving notice. Unless and until such written notice is received,
          the
          addresses as provided herein shall be deemed to continue in effect for
          all
          purposes hereunder.

        

        (c)    Standoff
          Agreement.
          The
          Purchaser agrees that, in connection with each underwritten public offering
          registered under the Securities Act of shares of Common Stock or other
          equity
          securities of the Corporation by or on behalf of the Corporation, the Purchaser
          shall not sell or transfer, or offer to sell or transfer, any shares of
          Common
          Stock or other equity securities of the Corporation for such period of
          time as
          all of the officers, directors and significant stock holders are also similarly
          bound.

        

        (d)    Choice
          of Law; Consent to Jurisdiction.
          This
          Agreement shall be governed by and construed in accordance with the internal
          laws (without giving effect to the conflicts of law principles) of the
          State of
          New York. 

        

        (e)    Severability.
          The
          parties hereto agree that the terms and provisions in this Agreement are
          reasonable and shall be binding and enforceable in accordance with the
          terms
          hereof and, in any event, that the terms and provisions of this Agreement
          shall
          be enforced to the fullest extent permissible under law. In the event that
          any
          term or provision of this Agreement shall for any reason be adjudged to
          be
          unenforceable or invalid, then such unenforceable or invalid term or provision
          shall not affect the enforceability or validity of the remaining terms
          and
          provisions of this Agreement, and the parties hereto hereby agree to replace
          such unenforceable or invalid term or provision with an enforceable and
          valid
          arrangement which, in its economic effect, shall be as close as possible
          to the
          unenforceable or invalid term or provision.

        

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

        

        (f)    Successors.
          All
          references in this Agreement to the Corporation shall include any and all
          successors in interest to the Corporation, whether by merger, consolidation,
          sale of all or substantially all assets or otherwise, and this Agreement
          shall
          inure to the benefit of the successors and assigns of the Corporation and,
          subject to the terms herein set forth, shall be binding upon the Purchaser,
          its
          successors and permitted assigns.

        

        (g)    Counterparts.
          This
          Agreement may be executed in two counterparts, each of which shall be deemed
          an
          original, but which together shall constitute one and the same
          instrument.

        

        (h)    Modification,
          Amendment and Waiver.
          No
          modification, amendment or waiver of any provision of this Agreement shall
          be
          effective against the Corporation unless the same shall be in a written
          instrument signed by an officer of the Corporation on its behalf and such
          instrument is approved by its Board of Directors. The failure at any time
          to
          enforce any of the provisions of this Agreement shall in no way be construed
          as
          a waiver of such provisions and shall not affect the right of either party
          thereafter to enforce each and every provision hereof in accordance with
          its
          terms.

        

        (i)    Further
          Assurances.
          The
          parties agree to execute such further instruments and to take such further
          action as may reasonably be necessary to carry out the intent of this
          Agreement.

        

        (j)    Integration.
          This
          Agreement constitutes the entire agreement of the parties with respect
          to the
          subject matter hereof.

        

        (k)    Headings.
          The
          headings of the Sections and paragraphs of this Agreement have been inserted
          for
          convenience of reference only and do not constitute a part of this
          Agreement.

        

        (l)    Gender
          and Number.
          As used
          in this Agreement, the masculine, feminine or neuter gender, and the singular
          or
          plural, shall be deemed to include the others whenever and wherever the
          context
          so requires. Additionally, unless the context requires otherwise, "or"
          is not
          exclusive.

        

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
          or caused
          this Agreement to be duly executed by their respective officers, partners
          or
          other representatives, thereunto duly authorized, all as of the day and
          year
          first above written.

         

        
          
            	 	 	 
	 	ZIOPHARM,
                    INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                    
Name:
                    Jonathan Lewis, M.D.
	 	Title:
                     Chief
                    Executive Officer

          

          
            	 	 	 
	 	PURCHASER:
	 
 	 
 	 
 
	 	By:	 
	 	Name: 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	EIN/SS#:	 
	 	
                  
	 	 

          

        

         

        

        NUMBER
          OF
          SHARES OF
COMMON
          STOCK PURCHASED:   ______

         

        

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        

        EXHIBIT
          IV

        PREVIOUS
          AGREEMENTS

        

        
          
            	 	
                    ·

                  	
                    SPORE
                      Grant for work by Dr. Verstovsek: Leukemia SPORE Development
                      Program:

                  

          

          
            	 	 	 

          

          
            	 	 	
                    Development
                      of Organic Arsenic Derivatives as New Therapy for
                      Leukemia.

                  

          

          
            	 	 	 

          

        

        
          	 	
                  ·

                	
                  Career
                    Development Award to Dr. Verstovsek from UTMDACC for work with
                    arsenicals
                    

                

        

        

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

        

        EXHIBIT
          V

         

        THE
          SECURITIES REPRESENTED BY THIS OPTION ARE NOT TRANSFERABLE WITHOUT THE
          EXPRESS
          WRITTEN CONSENT OF ZIOPHARM, INC. (THE "COMPANY") AND HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
          LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR
          OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
          WITH
          RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN EXEMPTION FROM SUCH ACT.
          ANY SUCH
          TRANSFER MAY ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES
          LAWS.

        

        ZIOPHARM,
          INC.

        

        Option
          for the Purchase of Shares of 

        Common
          Stock

        
          
            	
                    No.
                      MDACC-1

                  	
                    50,000
                      Shares

                  

          

        

        

        FOR
          VALUE
          RECEIVED, ZIOPHARM, INC., a Delaware corporation (the "Company"), hereby
          certifies that [_____________________] or its registered assigns (the "Holder")
          is entitled to purchase from the Company, subject to the provisions of
          this
          Option, at any time following the Vesting Date (as defined below) and prior
          to
          5:00 P.M. Eastern Standard Time on the date that is five years from the
          Vesting
          Date (the "Termination Date"), Fifty Thousand (50,000) fully paid and
          non-assessable shares of the Common Stock, $.001 par value, of the Company
          ("Common Stock") at an initial per share exercise price equal to
$0.001(the
          "Per
          Share Exercise Price"), or an aggregate exercise price of $500.00(the
          "Aggregate Exercise Price"). The shares of Common Stock deliverable upon
          such
          exercise are sometimes referred to in this Option as the "Option Shares."
          

        

        1)    Exercise
          of Option.

        (a)    Following
          the Vesting Date and prior to the Termination Date, this Option may be
          exercised
          in whole or in part, from time to time, by the Holder by presentation and
          surrender of this Option (with the subscription form attached to this Option
          duly executed) at the address set forth in Section 8 of this Option, together
          with payment, by certified or official bank check or wire transfer payable
          to
          the order of the Company, of the Aggregate Exercise Price or the proportionate
          part of such Aggregate Exercise Price if exercised in part.

        

        (b)    If
          this
          Option is exercised only in part, the Company shall, upon presentation
          of this
          Option upon such exercise, execute and deliver (with the certificate for
          the
          Option Shares purchased) a new Option evidencing the rights of the Holder
          of
          this Option to purchase the balance of the Option Shares purchasable under
          this
          Option upon the same terms and conditions as set forth in this Option.
          Upon
          proper exercise of this Option, the Company promptly shall deliver certificates
          for the Option Shares to the Holder duly legended as authorized by the
          subscription form. No fractional shares shall be issued upon exercise of
          this
          Option. Any fractional number of shares called for upon exercise of this
          Option
          shall be rounded down to the nearest whole share.

        

        
          
            
            

          

          
            43

            
              

            

          

          
            
            

          

        

        2)    Vesting
          of Option.
          The
          Option shall vest and become exercisable for a percentage of the Option
          Shares
          as follows: (A) fifty percent (50%) upon completion of the dosing of the
          last
          patient for both
          the
          blood and solid tumor
          PHASE 1
          trials for
          the
          first LICENSED
          PRODUCT; (B) [***] percent ([***]%) upon enrollment of the first patient
          in a
          multi-center PIVOTAL STUDY for a LICENSED PRODUCT; and (C) [***] percent
          ([***]%) upon the filing of an IND on any LICENSED PRODUCT that is covered
          by
          the PATENT RIGHTS entitled “Arsenic-Lipid Derivatives as a Treatment for Cancer”
          (MDA04-076). The date any percentage begins exercisable shall be deemed
          the
“Vesting Date” with respect to such percentage. The Option shall remain
          exercisable for five years from the respective Vesting Dates for each given
          percentage of Option Shares and shall thereafter become void. Each fully
          capitalized term in this Section 2 shall have the meaning assigned to it
          in the
          Patent and Technology License Agreement of even date herewith among the
          Board of
          Regents of the University of Texas System, The University of Texas M. D.
          Anderson Cancer Center, The Texas A&M University System and the
          Company

        

        3)    Adjustment.

         

        (a)    In
          case
          the Company shall (i) pay a dividend or make a distribution on its capital
          stock
          in shares of Common Stock or any other capital stock, (ii) subdivide its
          outstanding shares of Common Stock into a greater number of shares, (iii)
          combine its outstanding shares of Common Stock into a smaller number of
          shares
          or (iv) reclassify its Common Stock or effect a capital reorganization
          of the
          Company,
          or
          in
          case of the consolidation of the Company with or the merger of the Company
          with
          or into any other company or of the sale of the properties and assets of
          the
          Company as, or substantially as, an entirety to any other company,
          then the
          number and type of unexercised Option Shares subject to this Option shall
          be
          proportionately adjusted so that the Holder shall be entitled to receive
          the
          aggregate number and type of shares or other property that, if the unexercised
          Option Shares had been exercised in full immediately prior to such time,
          the
          Holder would have owned upon such exercise and been entitled to receive
          upon
          such dividend, subdivision, combination, reclassification or recapitalization.
          Whenever the number of shares issuable upon exercise of this Option is
          adjusted
          pursuant to this Section 3(a), the Per Share Exercise Price shall simultaneously
          be adjusted by multiplying the number of unexercised Option Shares issuable
          upon
          exercise of this Option by the Per Share Exercise Price in effect on the
          date
          thereof and dividing the product so obtained by the number of Option Shares
          issuable upon exercise of the Option immediately following the adjustments
          made
          in 3(a) above. Such adjustment shall be made successively whenever any
          event
          listed in this paragraph 3(a) shall occur. An adjustment made pursuant
          to this
          Subsection 3(a) shall become effective immediately after the record date
          in the
          case of a dividend or distribution and shall become effective immediately
          after
          the effective date in the case of a subdivision, combination or
          reclassification.

        

        
          
            
            

          

          
            44

            
              

            

          

          
            
            

          

        

        (b)    If,
          as a
          result of an adjustment made pursuant to this Section 3, the Holder shall
          become
          entitled to receive shares of two or more classes of capital stock or shares
          of
          Common Stock and other capital stock of the Company upon surrender of this
          Option , the Board of Directors (whose determination shall be conclusive
          and
          shall be described in a written notice to the Holder promptly after such
          adjustment) shall determine the allocation of the adjusted Per Share Exercise
          Price between or among shares or such classes of capital stock or shares
          of
          Common Stock and other capital stock.

        

        (c)    When
          any
          adjustment is required to be made in the number or kind of shares purchasable
          upon exercise of the Option, the Company shall promptly notify the Holder
          of
          such event and of the number of shares of securities or property thereafter
          purchasable upon exercise of the Option. Whenever the Company intends to
          declare
          a dividend or other distribution on its Common Stock, it shall provide
          Company
          notice at least thirty (30) days prior to the record date for such dividend
          or
          distribution.

        

        4)    Reservation
          of Option Shares; Fully Paid Shares; Taxes.
          The
          Company hereby undertakes until expiration of this Option to reserve for
          issuance or delivery upon exercise of this Option, such number of shares
          of the
          Common Stock as shall be required for issuance and/or delivery upon exercise
          of
          this Option in full, and agrees that all Option Shares so issued and/or
          delivered will be validly issued, fully-paid and non-assessable, and further
          agrees to pay all taxes and charges that may be imposed upon such issuance
          and/or delivery.

        

        5)    Limited
          Transferability.
          This
          Option may not be sold, transferred, assigned or hypothecated by the Holder
          except in compliance with the provisions of the Securities Act of 1933,
          as
          amended (the "Act"), and the applicable state securities or "blue sky"
          laws, and
          is so transferable only upon the books of the Company which the Company
          shall
          cause to be maintained for such purpose. The Company may treat the registered
          holder of this Option as such holder appears on the Company's books at
          any time
          as the holder for all purposes. All Options issued upon the transfer or
          assignment of this Option will be dated the same date as this Option, and
          all
          rights of the holder of such Option shall be identical to those of the
          Holder
          and upon such transfer or assignment, the Holder shall have no further
          rights
          under this Option.

        

        6)    Loss,
          etc., of Option.
          Upon
          receipt of evidence satisfactory to the Company of the loss, theft, destruction
          or mutilation of this Option, and of indemnity satisfactory to the Company,
          if
          lost, stolen or destroyed, and upon surrender and cancellation of this
          Option,
          if mutilated, the Company shall execute and deliver to the Holder a new
          Option
          of like date, tenor and denomination.

        

        7)    Status
          of Holder.
          This
          Option does not confer upon the Holder any right to vote or to consent
          to or
          receive notice as a stockholder of the Company, as such, in respect of
          any
          matters whatsoever, or any other rights or liabilities as a stockholder,
          prior
          to the exercise of this Option. If this Option is exercised only in part,
          the
          Holder shall have no such rights or liabilities with respect to any unexercised
          portion of this Option.

         

        
          
            
            

          

          
            45

            
              

            

          

          
            
            

          

        

        8)    Notices.
          No
          notice or other communication under this Option shall be effective unless,
          but
          any notice or other communication shall be effective and shall be deemed
          to have
          been given if, the same is in writing and is mailed by first-class mail,
          postage
          prepaid, addressed to:

        

        If
          to the
          Holder:

         

        If
          to the
          Company:   Ziopharm,
          Inc.

        787
          Seventh Avenue, 48th
          Floor

        New
          York,
          NY 10019

        Attn:
          Secretary

         

        9)    Investment
          Intent.

        

        (a)    The
          Holder represents by accepting this Option that it understands that this
          Option
          and any securities obtainable upon exercise of this Option have not been
          registered for sale under Federal or state securities laws and are being
          offered
          and sold to the Holder pursuant to one or more exemptions from the registration
          requirements of such securities laws. The Holder is an "accredited investor"
          within the meaning of Regulation D under the Act. In the absence of an
          effective
          registration of such securities or an exemption from such registration
          any
          certificates for such securities shall bear the legend set forth on the
          first
          page of this Option. The Holder understands that it must bear the economic
          risk
          of its investment in this Option and any securities obtainable upon exercise
          of
          this Option for an indefinite period of time, as this Option and such securities
          have not been registered under Federal or state securities laws and therefore
          cannot be sold unless subsequently registered under such laws, unless as
          exemption from such registration is available.

        

        (b)    The
          Holder, by its acceptance of this Option, represents to the Company that
          it is
          acquiring this Option and will acquire any securities obtainable upon exercise
          of this Option for its own account for investment and not with a view to,
          or for
          sale in connection with, any distribution of such securities in violation
          of the
          Act. The Holder agrees that this Option and any such securities will not
          be sold
          or otherwise transferred unless (i) a registration statement with respect
          to
          such transfer is effective under the Act and any applicable state securities
          laws or (ii) such sale or transfer is made pursuant to one or more exemptions
          from the Act.

        

        10)    Headings.
          The
          headings of this Option have been inserted as a matter of convenience and
          shall
          not affect the construction of this Option.

         

        
          
            
            

          

          
            46

            
              

            

          

          
            
            

          

        

        
           

        

        11)    Applicable
          Law.
          This
          Option shall be governed by and construed in accordance with the laws of
          the
          State of New York, without regard to principles of conflicts of law. The
          parties
          agree to settle any disputes through binding arbitration in the city, county
          and
          State of New York.

        

        The
          Company has caused this Option to be signed by its President and attested
          by its
          Secretary on ____________, 2004.

        

        
          
            	 	 	 
	 	ZIOPHARM INC.
	 
 	 
 	 
 
	Date: 	By:  	/s/ 
	 	
                    
Name:
                    Jonathan Lewis, M.D.
	 	Title: Chief
                    Executive Officer
	 	 
	ATTEST:	 
	
                  	 
	
                    

                    David
                      M. Tanen

                    Secretary

                  	 

          

         

        
          
            
            

          

          
            47

            
              

            

          

          
            
            

          

        

        SUBSCRIPTION

         

        The
          undersigned, ___________________, pursuant to the provisions of the foregoing
          Option, hereby elects to exercise the foregoing Option to the extent of
          purchasing ____________________ shares of Common Stock under such Option
          and
          hereby makes payment of $___________ by certified or official bank check
          in
          payment of the exercise price for such Option .

        

        The
          undersigned hereby represents and warrants to the Company that the undersigned
          is acquiring the shares of the Company's Common Stock pursuant to exercise
          of
          the foregoing Option for investment purposes only. The undersigned hereby
          further acknowledges that the undersigned understands that such shares
          (a) have
          not been registered under the Securities Act of 1933, as amended (the "Act"),
          and are being issued to the undersigned by the Company in reliance upon
          the
          foregoing representation and warranty and (b) may not be resold except
          in
          accordance with the requirements of the Act, including Rule 144 under the
          Act,
          if applicable. The undersigned further consents to the placing of a legend
          on
          the certificates for the shares being purchased to the foregoing
          effect.

        

        

        
          	
                  Date:

                	
                  _______________

                	 	
                  Signature:

                	
                  ____________________

                
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
                  Address:

                	
                  ______________________

                

        

        

        

        
          
            
            

          

          
            48

            
              

            

          

          
            
            

          

        

        ASSIGNMENT

         

        FOR
          VALUE
          RECEIVED, _______________ hereby sells, assigns and transfers unto
          ____________________ the foregoing Option and all rights evidenced by such
          Option, and does irrevocably constitute and appoint _____________________,
          attorney, to transfer such Option on the books of
          ____________________.

        

        

        
          	
                  Date:

                	
                  _______________

                	 	
                  Signature:

                	
                  ____________________

                
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
                  Address:

                	
                  ______________________

                

        

        

        

         

        
          
            
            

          

          
            49

            
              

            

          

          
            
            

          

        

        PARTIAL
          ASSIGNMENT

        

        

        FOR
          VALUE
          RECEIVED, _______________ hereby assigns and transfers unto ____________________
          the right to purchase _______ shares of the Common Stock of ZIOPHARM, INC.
          covered by the foregoing Option, and a proportionate part of such Option
          and the
          rights evidenced by such Option, and does irrevocably constitute and appoint
          ____________________, attorney, to transfer that part of such Option on
          the
          books of ZIOPHARM, INC.

        

        

        
          	
                  Date:

                	
                  _______________

                	 	
                  Signature:

                	
                  ____________________

                
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
                  Address:

                	
                  ______________________

                

        

        
 

        
          
            
            

          

          
            50Exhibit
        10.6

       

      Portions
        herein identified by [***] have been omitted pursuant to a request for
        confidential treatment under Rule 406 of the Securities Act of 1933. A complete
        copy of this document has been filed separately with the Securities and Exchange
        Commission.

      

      LICENSE
        AGREEMENT

      

      This
        License Agreement (hereinafter referred to as this "Agreement"), effective
        as of
October
        15, 2004 2004, (the “Effective Date”), is entered into by and between DEKK-TEK,
        Inc., having an address at 4200 Canal Street, Suite A, New Orleans, LA, 70119
        (the “Licensor”) and ZIOPHARM, Inc., having an address at 300 George St., Suite
        5, New Haven, CT 06511 (the "Company").

      

      WHEREAS,
        the
        Licensor has certain proprietary rights and intellectual property with respect
        to Technology; and

       

      WHEREAS,
        the
        Company desires to obtain from the Licensor, and the Licensor desires to
        grant
        to the Company, an exclusive, world-wide, royalty bearing license to develop
        and
        commercialize the Technology on the terms and conditions set forth herein;
        and

       

      NOW,
        THEREFORE, in
        consideration of the foregoing premises, the mutual promises and covenants
        of
        the Parties contained herein, and other good and valuable consideration,
        the
        receipt and sufficiency of which are hereby acknowledged, the Parties hereto,
        intending to be legally bound, do hereby agree as follows:

       

      ARTICLE
        1 - DEFINITIONS

      

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

      

      1.1    "Affiliate"
        shall mean, with respect to any Entity (as hereinafter defined), any Entity
        that
        directly or indirectly Controls, is Controlled by, or is under common Control
        with such Entity. 

      

      1.1.1    “Control”
        shall mean, for this purpose, direct or indirect control of more than fifty
        percent (50%) of the voting securities of an Entity or, if such Entity does
        not
        have outstanding voting securities, more than 50% of the directorships or
        similar positions with respect to such Entity.

      

      
        
          
          

        

        
          Page
            1 of
            18

          
            

          

        

        
          
          

        

      

      1.1.2    “Entity”
        shall mean any corporation, association, joint venture, partnership, trust,
        university, business, individual, government or political subdivision thereof,
        including an agency, or any other organization that can exercise independent
        legal standing.

      

      1.2    “FDA”
        shall mean the United States Food and Drug Administration
         

      

      1.3    “Improvements”
        shall mean any inventions (whether patentable or not), information
        and data that are developed by or on behalf of the Licensor during the term
        of
        this Agreement, the manufacture, use or sale of which would infringe an issued
        or pending claim within the existing Patent Rights.

      

      1.4    “IND”
        shall mean Investigational New Drug Application as defined by the rules and
        regulations of the FDA.

      

      1.5    “Know-how”
        shall mean all tangible information (other than those contained in the Patent
        Rights) whether patentable or not and all physical objects related to the
        Patent
        Rights or the Licensed Product, including but not limited to formulations,
        materials, data, drawings and sketches, designs, testing and test result,
        regulatory information of a like nature, owned or controlled by
        Licensor.

      

      1.6    “Licensed
        Product(s)” shall mean any product, the manufacture, use, lease or sale of which
        is covered in whole or in part by a Valid Claim contained in the Patent Rights
        in the country in which the product is made, used, leased or sold.

      

      1.7    “NDA”
        shall mean New Drug Application as defined by the rules and regulations of
        the
        FDA.

      

      1.8    “Net
        Sales” shall mean the total gross receipts for sales of Licensed Products by or
        on behalf of the Company of any of its Affiliates or any sublicensee, less
        the
        sum of the following: (a) usual trade discounts to customers; (b) sales,
        tariff
        duties and/or use taxes directly imposed and with reference to particular
        sales;
        (c) outbound transportation prepaid or allowed and transportation insurance;
        (d)
        amounts allowed or credited on returns; (e) bad debt deductions actually
        written
        off during the accounting period; (f) sales commissions; and (g) packaging
        and
        freight charges. For purposes of determining Net Sales, a Licensed Product
        shall
        not include transfers, uses or dispositions for charitable, promotional,
        pre-clinical, clinical, regulatory or governmental purposes. For purposes
        of
        calculating Net Sales, sales between or among the Company or its Affiliates
        shall be excluded from the computation of Net Sales, but sales by the Company
        or
        its Affiliates to third parties shall be included in the computation of Net
        Sales.

      

      1.9    “Patent
        Rights” shall mean all of Licensor’s interest in:
         

      

      1.9.1    All
        United States and foreign patents and patent applications and invention
        disclosures set forth in Appendix A;

      

      
        
          
          

        

        
          Page
            2 of
            18

          
            

          

        

        
          
          

        

      

      1.9.2    All
        United States and foreign patents and patent applications which cover an
        invention included in the patents and/or patent applications or invention
        disclosures set forth in Appendix A;

      

      1.9.3    All
        United States and foreign patents and patent applications which cover an
        Improvement;

      

      1.9.4    Any
        continuations, divisionals, re-issue applications, continuation-in-part
        applications, re-examinations or extensions or any other later filed
        applications of any of the foregoing patent applications/patents set forth
        in
1.9.1-1.9.3;
        and

      

      1.9.5
        Any
        United States and/or foreign patents issuing from any of the foregoing patent
        applications/patents set forth in 1.9.1-1.9.4.

      

      1.10   “Phase
        II” shall mean a controlled clinical study in the United States conducted to
        obtain preliminary data on effectiveness of an investigational new drug for
        a
        particular indication, as required in 21 C.F.R. Sec. 312.

      

      1.11   “Phase
        III” shall mean a controlled clinical study in the United States, the principal
        purpose of which is to establish pivotal safety and pivotal efficacy in patients
        with the disease target being studied, as required in 21 C.F.R.
        Sec,312.

      

      1.12   “Technology”
        means Patent Rights, Improvements and Know-how.

      

      1.13   “Valid
        Claim” means an issued claim of any unexpired patent included in 

      Patent
        Rights, which patent has not been held unenforceable, unpatentable or invalid
        by
        a decision of a court of a governmental body of competent jurisdiction,
        unappealable or uanppealed within the time allowed for appeal, which has
        not
        been rendered unenforceable through disclaimer or otherwise, and which has
        not
        been lost through an interference proceeding or abandoned. 

      

      ARTICLE
        2 - GRANT

       

      2.1    The
        Licensor hereby grants to the Company and the Company accepts, subject to
        the
        terms and conditions of this Agreement, an exclusive worldwide license in
        all
        fields of use to utilize the Technology, and to make, have made, use, have
        used,
        lease, import, offer to sell, sell, and/or have sold the Licensed Products,
        to
        the full end of the term for which the Patent Rights are granted, unless
        sooner
        terminated as hereinafter provided. Company may extend the license granted
        herein to any Affiliate, provided that the Affiliate consents in writing
        to be
        bound by this Agreement to the same extent as Company.

      

      2.2    To
        the
        best of Licensor’s knowledge and belief and upon due inquiry, the Licensor has
        all right, title, and interest in and to the Patent Rights, including exclusive,
        absolute, irrevocable right, title and interest thereto, free and clear of
        all
        liens, charges, encumbrances or other restrictions or limitations of any
        kind
        whatsoever and to best of Licensor’s knowledge and belief, and upon due inquiry,
        there are no licenses, options, restrictions, liens, rights of third parties,
        disputes, royalty obligations, proceedings or claims relating to, affecting,
        or
        limiting its rights or the rights of the Company under this Agreement with
        respect to any part or all of the Patent Rights and their use as contemplated
        in
        the underlying patent applications as presently drafted. 

      

      
        
          
          

        

        
          Page
            3 of
            18

          
            

          

        

        
          
          

        

      

      2.3    To
        the
        best of Licensor’s knowledge and belief and upon due inquiry, there is no claim,
        pending or threatened, of infringement, interference or invalidity regarding,
        any part or all of the Patent Rights and their use as contemplated in the
        underlying patent applications as presently drafted. The validity or
        enforceability of any of the Patent Rights or Technology has not been questioned
        in any litigation, governmental inquiry or proceeding to which the Licensor
        is a
        party and, to the knowledge of the Licensor, not such litigation, governmental
        inquiry or proceeding is threatened. 

      

      2.4    The
        Licensor grants to the Company and its Affiliates the right to grant sublicenses
        to third- parties under the license granted hereunder. 

      

      2.4.1    Within
        thirty (30) days after execution or receipt thereof, as applicable, the Company
        shall provide the Licensor with a confidential copy of each sublicense issued
        hereunder.

      

      2.4.2    Upon
        the
        termination of this Agreement, Licensor agrees to accept existing sublicensees
        under the terms of such sublicense provided that such sublicensee is in good
        standing, or restores its good standing within 90 days from the termination
        of
        this Agreement. 

      

      2.5    Upon
        execution of this Agreement, Licensor shall promptly provide Know-how to
        Company. Additionally, Licensor will promptly disclose to Company any
        Improvements. 

      

      ARTICLE
        3 - DUE DILIGENCE

      

      3.1    The
        Company, by itself or through its affiliates or sublicensees shall use all
        reasonable commercial efforts to bring a product incorporating the Technology
        to
        market through a thorough, vigorous and diligent program. Such program shall
        include the preclinical and clinical development of the product, including
        research and development, manufacturing, laboratory and clinical testing
        and
        marketing. On or before each anniversary of this Agreement until the Company
        markets a product incorporating the Technology, Licensor may request in writing
        that the Company submit a report covering the preceding year, regarding the
        Technology development progress. Should Licensor believe the Company is not
        using all reasonable commercial efforts to bring a product incorporating
        the
        Technology to market, the Licensor will notify the Company of such concern
        and
        the Company and the Licensor will meet to discuss such concerns. If as a
        result
        of such meeting the Licensor is not satisfied the Company is using all
        reasonable commercial efforts to bring a product incorporating the Technology
        to
        market, the parties shall proceed to dispute resolution in accordance with
        Section 8.1 of this Agreement. 

      

      
        
          
          

        

        
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      ARTICLE
        4 - ROYALTIES AND OTHER CONSIDERATION

       

      4.1    As
        partial consideration for the rights granted by Licensor to Company,
        Company will issue to the Licensor stock options (“Options”) to purchase a total
        of 50,000 shares (the “Shares”) of the Company’s common stock (the “Common
        Stock”) at an exercise price per share equal to $0.01 per share, equal to one
        percent (1%) of the outstanding shares of Common Stock of the Company on
        a fully
        diluted basis as of the Effective Date. The Options will vest and become
        exercisable in accordance with the following schedule:

      (i)
        12,500
        Shares upon the Effective Date;

      (ii)
        [***]
        Shares
        [***] of Licensed Product in the United States [***]; and

      (iii)
        [***] Shares upon the final approval by the FDA of the first NDA submitted
        by
        the Company or its sublicensee for a Licensed Product. 

      
        	(i)     	
                The
                  Options shall be granted under a Stock Option Agreement containing
                  such
                  terms and conditions as are customary for the Company.
                  

              

      

      
        	(ii)     	
                Upon
                  the occurrence of a Change of Control as defined below, all unvested
                  Options shall be accelerated and deemed to have vested as of the
                  date of
                  such Change of Control. For purposes of this section, “Change of Control”
                  shall mean (a) the acquisition, directly or indirectly, following
                  the date
                  hereof by any person (as such term is defined in Section 13(d)
                  and
                  14(d)(2) of the Securities Exchange Act of 1934, as amended), in
                  one
                  transaction or a series of related transactions, of securities
                  of the
                  Company representing in excess of fifty percent (50%) or more of
                  the
                  combined voting power of the Company’s then outstanding securities if such
                  person or his or its affiliate(s) do not own in excess of 50% of
                  such
                  voting power on the date of this Agreement, or (b) the future disposition
                  by the Company (whether direct or indirect, by sale of assets or
                  stock,
                  merger, consolidation or otherwise) of all or substantially all
                  of its
                  business and/or assets in one transaction or series of related
                  transactions (other than a merger effected exclusively for the
                  purpose of
                  changing the domicile of the
                  Company).

              

      

      

      4.2    The
        Company agrees to pay to Licensor royalties in an amount equal to [***] percent
        [***] of Net Sales by the Company, or any Affiliate of the Company, or any
        sublicensee thereof, of Licensed Products. The royalty obligations under
        this
        Section 4.2 shall
        terminate, on a country-by-country basis, with respect to each Licensed Product
        upon the expiration date in such country of the last to expire of any patent
        included in the Patent Rights covering the sale of such Licensed Product
        in such
        country. Any payments pursuant to this section shall be payable on an annual
        basis within thirty (30) calendar days of the end of the prior
        year.

      

      
        
          
          

        

        
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      4.3    On
        sales
        of Licensed Products by the Company to Affiliates or related parties that
        are
        end users of such Licensed Products, the value of Net Sales attributed under
        this Article 4 shall be that which would have been received in an arms-length
        transaction, based on sales of like quantity and quality products at or about
        the time of such transaction.

      

      4.4    No
        multiple royalties shall be payable because the use, lease or sale of any
        Licensed Product is, or shall be, covered by more than one valid and unexpired
        claim contained in the Patent Rights. 

      

      4.5    In
        the
        event that a Licensed Product is sold in the form of a combination product
        containing one or more products or technologies which are themselves not
        a
        Licensed Product, the Net Sales for such combination product shall be calculated
        by multiplying the sales price of such combination product by the fraction
        A/(A+B) where A is the invoice price of the Licensed Product or the Fair
        Market
        Value of the Licensed Product if sold to an Affiliate and B is the total
        invoice
        price of the other products or technologies or the Fair Market Value of the
        other products or technologies if purchased from an Affiliate. 

      

      4.6    All
        payments under this Agreement shall be paid in United States dollars. Royalty
        payments shall be paid in United States dollars in New York, New York or
        at such
        other place as Licensor may reasonably designate consistent with the laws
        and
        regulations controlling in any foreign country. Any withholding taxes which
        the
        Company, its Affiliate or any sublicensee shall be required by law to withhold
        on remittance of the royalty payments shall be deducted from such royalty
        payment to Licensor. The Company shall furnish Licensor with the original
        copies
        of all official receipts for such taxes. If any currency conversion shall
        be
        required in connection with the payment of royalties hereunder, such conversion
        shall be made by using the exchange rate prevailing at Citibank, N.A. in
        New
        York, New York on the last business day of the calendar quarterly reporting
        period to which such royalty payments relate.

      

      4.7    The
        Company shall pay Licensor a nonrefundable licensee fee in the amount of
        $50,000, which is due and payable within fifteen (15) calendar days after
        the
        Company has received an invoice of the amount from Licensor.

      

      4.8    The
        Company shall pay Licensor a fee in the amount of $[***] upon the issuance
        of a United States patent included in Patent Rights which covers the use
        of a
        lysine salt of isophosphoramide mustard to treat cancer.

      

      4.9    The
        Company shall pay to Licensor the following milestone payments for the
        particular milestone event achieved by the Company, its Affiliate or a
        sublicensee, which shall be due and payable within thirty (30) calendar days
        of
        such milestone event:

      

      4.9.1    [***]
        Dollars ($[***]) upon [***]of Licensed Product in the United
        States;

      

      4.9.2    [***]
        Dollars ($[***]) upon [***] of Licensed Product in the United
        States;

      

      
        
          
          

        

        
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      4.9.3    [***]
        Dollars ($[***]) upon [***] Licensed Product; and

      

      4.9.4    [***]
        Dollars ($[***]) upon the final approval by the FDA of the first NDA for
        a
        Licensed Product, which milestone payment shall be fully creditable against
        future royalties payments hereunder. 

      

      4.10   To
        the
        extent that the Company or any Affiliate of the Company or any sublicensee
        thereof needs to obtain in any jurisdiction any license from a third party
        in
        order to practice the rights purported to be granted to the Company by Licensor
        hereunder under issued patents in such jurisdiction, then up to [***] percent
        ([***]%) of the royalties payable under such license in such jurisdiction
        may be
        deducted from royalties otherwise payable to Licensor hereunder, provided
        that
        in no event shall the aggregate royalties payable to Licensor in any semi-annual
        period in such jurisdiction be reduced by more than [***] percent ([***]%)
        as a
        result of any such deduction, provided further that any excess deduction
        remaining as a result of such limitation may be carried forward to subsequent
        periods. 

      

      4.11   From
        and
        after the termination of royalty obligations in accordance with Section 4.2
        of
        this Agreement, Company will have a paid up, royalty-free license under
        Technology to make, have made, use, have used, sell and have sold products.
        

      

      4.12   Upon
        approval by Company of invoices attributable to the pharmacokinetic analysis
        of
        samples from a phase I study of Technology, Company shall reimburse Licensor
        for
        moneys paid by Licensor to conduct such analysis, in an amount not to exceed
        [***] Dollars ($[***]).

       

      ARTICLE
        5 - REPORTS AND RECORDS

      

      5.1    The
        Company shall keep full, true and accurate books of account containing all
        particulars that may be necessary for the purpose of showing the amounts
        payable
        to the Licensor by way of royalty and other payments as aforesaid. Said books
        of
        account shall be kept at the Company's principal place of business and the
        supporting data shall be open up to twice per year upon reasonable notice
        to the
        Company, for two (2) years following the end of the calendar year to which
        they
        pertain, for inspection by the Licensors’ internal audit division and/or by
        another designated auditor selected by the Licensor, except one to whom the
        Company has reasonable objection, for the purpose of verifying the Company's
        royalty statement and any other payment reports required under this License
        Agreement. If an inspection shows an under reporting or underpayment in excess
        of the greater of $[***] or [***] percent ([***]%) of royalties payable for
        any
        twelve (12) month period, then the Company shall reimburse the Licensor for
        the
        reasonable cost of the inspection at the time the Company pays the unreported
        royalties, including any late charges as required by section 5.4 of this
        Agreement. All payments required under this Article 5 shall be due within
        sixty
        (60) days of the date the Licensor provides the Company notice of the payment
        due.

      

      
        
          
          

        

        
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      5.2    Within
        sixty (60) days from the end of each quarter of each calendar year for which
        royalties are due hereunder, the Company shall deliver to the Licensor complete
        and accurate reports, giving such particulars of the business conducted by
        the
        Company during the preceding quarter under this License Agreement as shall
        be
        pertinent to a royalty accounting hereunder. These shall include at least
        the
        following:

      

      5.2.1    All
        Licensed Products used, leased or sold, by or for the Company or its Affiliates
        or sublicensees.

      

      5.2.2    Total
        amounts invoiced for Licensed Products used, leased or sold, by or for the
        Company or its Affiliates or sublicensees.

      

      5.2.3    Deductions
        applicable in computed "Net Sales" as defined in Section 1.8.

      

      5.2.4    Total
        royalties due based on Net Sales by or for the Company or its Affiliates
        or
        sublicensees.

      

      5.2.5    All
        other
        amounts due Licensor hereunder. 

      

      5.3    With
        each
        such report submitted, the Company shall pay to the Licensor the royalties
        due
        and payable under this Agreement. If no royalties shall be due, the Company
        shall not be required to make a report pursuant to this Article 5.

      

      5.4    Amounts
        which are not paid when due and which are not the subject of a bona fide
        dispute
        shall accrue interest from the due date until paid, at a rate equal to the
        then
        prevailing prime rate of Citibank, N.A., plus [***] percent
        ([***]%).

      

      5.5    The
        Licensor agrees to hold in confidence each report delivered by the Company
        pursuant to this Article 5. Notwithstanding the foregoing, the Licensor may
        disclose any such information required to be disclosed pursuant to any judicial,
        administrative or governmental request, subpoena, requirement or order, provided
        that the Licensor takes reasonable steps to provide the Company with the
        opportunity to contest such request, subpoena, requirement or order.

       

      ARTICLE
        6 - PATENT PROSECUTION AND MAINTENANCE

      

      6.1    The
        Company shall be responsible for prosecution and maintenance of the intellectual
        property included in the Patent Rights including, but not limited to, the
        filing
        of patent applications which may be required or desirable. The Company agrees
        to
        keep the Licensor reasonably well informed with respect to the status and
        progress of any such applications, prosecutions and maintenance activities
        and
        to consult in good faith with the Licensor and use reasonable efforts to
        incorporate Licensor’s reasonable suggestions regarding such prosecution. Both
        parties agree to provide reasonable cooperation to each other to facilitate
        the
        application and prosecution of patents pursuant to this Agreement.

      

      
        
          
          

        

        
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      6.2    The
        Company may, in its discretion, elect to abandon any patent applications
        or
        issued patent in the Patent Rights or not file a patent application in any
        national jurisdiction. 
        Prior to
        any such abandonment or decisions not to file in certain countries, the Company
        shall give Licensor at least sixty (60) days notice and a reasonable opportunity
        to take over prosecution of such Patent Rights. In such event, Licensor shall
        have the right, but not the obligation, to commence or continue such prosecution
        and to maintain any such Patent Rights under its own control and at its expense
        and the Company shall then have no further rights to such Patent Rights and
        no
        further royalty or other obligation to Licensor in connection therewith.
        

       

      ARTICLE
        7 - TERMINATION

      

      7.1    Should
        the Company fail to make payment to the Licensor of royalties due in accordance
        with the terms of this Agreement which are not the subject of a bona fide
        dispute between the Licensor and the Company, the Licensor shall have the
        right
        to terminate this License Agreement within sixty (60) days after giving said
        notice of termination unless the Company shall pay to the Licensor, within
        the
        60-day period, all such royalties due and payable. Upon the expiration of
        the
        60-day period, if the Company shall not have paid all such royalties due
        and
        payable, the rights, privileges and license granted hereunder shall, at the
        option of the Licensor, immediately terminate. In the event of a bona fide
        dispute over royalties, the parties shall resolve such dispute in accordance
        with Article 8.

      

      7.2    Upon
        any
        material breach or default of this License Agreement by the Company, other
        than
        as set forth in Section 7.1 above, the Licensor shall have the right to
        terminate this Agreement and the rights, privileges and license granted
        hereunder upon giving sixty (60) days notice to the Company. Such termination
        shall become effective immediately unless the Company shall have cured any
        such
        breach or default prior to the expiration of such sixty (60) day
        period.

      

      7.3    The
        Company shall have the right at any time to terminate this Agreement in whole
        or
        as to any country by giving thirty (30) days notice thereof in writing to
        the
        Licensor. 

      

      7.4    Upon
        termination of this Agreement for any reason, nothing herein shall be construed
        to release either party from any obligation that matured prior to the effective
        date of such termination or obligations under Sections 2.4.2, 4.11 and Articles
        5,8,9, 10 and 14. The Company, its Affiliates and/or any sublicensee thereof
        may, however, after the effective date of such termination and continuing
        for a
        period not to exceed six (6) months thereafter, sell all completed Licensed
        Products, and any Licensed Products in the process of manufacture at the
        time of
        such termination, provided that the Company shall pay or cause to be paid
        to the
        Licensor the royalties thereon as required by Article 4 of this License
        Agreement and shall submit the reports required by Article 5 hereof on the
        sales
        of Licensed Products.

      

      
        
          
          

        

        
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      ARTICLE
        8 - DISPUTE RESOLUTION

      

      8.1    Any
        dispute or controversy arising out of or relating to this Agreement, its
        construction or its actual or alleged breach will be decided by mediation.
        If
        the mediation does not result in a resolution of such dispute or controversy,
        it
        will be finally decided by an appropriate method of alternate dispute
        resolution, including without limitation, arbitration, in accordance with
        the
        applicable, then current, procedures of the American Arbitration Association.
        The arbitration panel will include members knowledgeable in the evaluation
        of
        the Technology. Judgment upon the award rendered may be entered into the
        highest
        court or forum having jurisdiction, state or federal. The provisions of this
        Section 8.1 will not apply to decisions on the validity of patent claims
        or to
        any dispute or controversy as to which any treaty or law prohibits such
        arbitration. The decision of the arbitration must be sanctioned by a court
        of
        law having jurisdiction to be binding upon and enforceable by the parties.
        

      

      

      ARTICLE
        9 - INFRINGEMENT AND OTHER ACTIONS

      

      9.1    During
        the term of this Agreement, the Company and the Licensor shall promptly provide
        written notice, to the other party, of any alleged infringement by a third
        party
        of the Patent Rights and provide such other party with any available evidence
        of
        such infringement. In the event that a claim or suit is asserted or brought
        against the Company alleging that the manufacture or sale of any Licensed
        Product by the Company, an Affiliate of the Company, or any sublicensee,
        or the
        use of such Licensed Product by any customer of any of the foregoing, infringes
        proprietary rights of a third party, the Company may, in its sole discretion,
        modify such Licensed Product to avoid such infringement and/or may settle
        on
        terms that it deems advisable in its sole discretion, subject to paragraph
        9.2. 

      

      9.2    The
        Company shall have the right, but not the obligation, to prosecute and/or
        defend, at its own expense and utilizing counsel of its choice, any infringement
        of, and/or challenge to, the Patent Rights occurring during the term of the
        Agreement. In furtherance of such right, the Licensor hereby agrees that
        the
        Company may join the Licensor as a party in any such suit, without expense
        to
        the Licensor. 

       

      9.3    Any
        recovery of damages by the Company, in any such suit, shall be applied first
        in
        satisfaction of any unreimbursed expenses and legal fees of the Company relating
        to the suit and then to the Licensor for any royalties credited in accordance
        with Section 9.4. The balance remaining from any such recovery shall be treated
        as Net Sales and shared in accordance with Article 4 hereof. 

      

      9.4    The
        Company may credit up to fifty percent (50%) of any litigation costs incurred
        by
        the Company in any country pursuant to this Article 9 and up to 50% of all
        amounts paid in judgment or settlement of litigation within this Article
        9 scope
        against royalties thereafter payable to the Licensor hereunder for such country
        and apply the same toward one-half of its actual, reasonable out-of-pocket
        litigation costs. If one-half of such litigation costs in such country exceeds
        50% of royalties payable to the Licensor in any year in which such costs
        are
        incurred than the amount of such costs, expenses and amounts paid in judgment
        or
        settlement, in excess of such 50% of the royalties payable shall be carried
        over
        and credited against royalty payments in future years for such country.

      

      
        
          
          

        

        
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      9.5    If
        within
        six (6) months after receiving notice of any alleged infringement, the Company
        shall have been unsuccessful in persuading the alleged infringer to desist,
        or
        shall not have brought and shall not be diligently prosecuting an infringement
        action, or if the Company shall notify the Licensor, at any time prior thereto,
        of its intention not to bring suit against the alleged infringer, then, and
        in
        those events only, the Licensor shall have the right, but not the obligation,
        to
        prosecute, at its own expense and utilizing counsel of its choice, any
        infringement of the Patent Rights. The total cost of any such infringement
        action commenced solely by the Licensor shall be borne by the Licensor and
        the
        Licensor shall keep any recovery or damages for infringement or otherwise
        derived therefrom and such shall not be applicable to any royalty obligation
        of
        the Company.

      

      9.7    In
        any
        suit to enforce and/or defend the Patent Rights pursuant to this License
        Agreement, the party not in control of such suit shall, at the request and
        reasonable expense of the controlling party, cooperate in all respects and,
        to
        the extent possible, have its employees testify when requested and make
        available relevant records, papers, information, samples, specimens, and
        the
        like.

       

      ARTICLE
        10 - INDEMNITY

      

      10.1   The
        Company agrees to defend, indemnify and hold the Licensor harmless from and
        against all third party claims, demands or causes of action arising on account
        of any injury or death of persons or damage to property (“Claims”) caused by or
        arising out of or resulting from the exercise or practice of the rights granted
        hereunder by Company or its Affiliates to the extent not due to the Licensor’s
        negligence of willful misconduct and provided that prompt written notice
        of such
        Claim is provided to Company. The Company agrees that any sublicense agreement
        it enters relative to the Licensed Products shall contain a covenant by such
        sub-licensee providing for the indemnification of the Licensor as provided
        in
        this Article.

       

      ARTICLE
        11 - ASSIGNMENT

      

      This
        Agreement and the rights and duties appertaining hereto may not be assigned
        by
        either party without first obtaining the written consent of the other which
        consent shall not be unreasonably withheld. Any such purported assignment,
        without the written consent of the other party, shall be null and of no effect.
        Notwithstanding the foregoing, the Company may assign this Agreement without
        the
        consent of the Licensor (i) to a purchaser, merging or consolidating
        corporation, or acquiror of substantially all of the Company's assets or
        business to which this Agreement pertains and/or pursuant to any reorganization
        qualifying under section 368 of the Internal Revenue Code of 1986 as amended,
        as
        may be in effect at such time, or (ii) to an Affiliate of the Company,
provided
        that such assignee consents in writing to be bound by this Agreement to the
        same
        extent as Company.

      

      
        
          
          

        

        
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      ARTICLE
        12 - USE OF NAMES

      

      12.1    Except
        as
        required by law, the Company or its Affiliates shall not use in advertising,
        publicity, or other promotional activities any name, trade name, trademark,
        or
        other designation of the Licensor or any of its units (including contraction,
        abbreviation or simulation of any of the foregoing) without the prior, written
        consent of the Licensor which shall not be unreasonably withheld; provided,
        however,
        that
        the Licensor acknowledges and agrees that the Company may use the names of
        the
        Licensor in various documents used by the Company for capital raising and
        financing without such prior written consent. Except as required by law,
        neither
        party shall disclose to a third party the terms of this Agreement, except
        to the
        extent that such other party is under confidence and needs to know the terms
        of
        this Agreement for business reasons.

      

      ARTICLE
        13 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

      

      13.1    Any
        payment, notice or other communication required or permitted to be given
        pursuant to this Agreement shall be in writing and sent by certified first
        class
        mail, postage prepaid, by hand delivery or by facsimile if confirmed in writing,
        or by overnight courier, in each case effective upon receipt, at the addresses
        below or as otherwise designated by written notice given to the other
        party:

      

      In
        the
        case of Licensor:

      

      Name:
        _______________________

      Title:
        ________________________

       

      Tel:
        

      Fax:

      

      In
        the
        case of the Company:

      

      Dr.
        Jonathan Lewis

      Chief
        Executive Officer

      ZioPharm,
        Inc.

      300
        George St.

      New
        Haven, CT 06511

      Tel:
        (203) 848-6969

      Fax:
        (203) 848-6007

      

      
        
          
          

        

        
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      ARTICLE
        14 - CONFIDENTIALITY AND PUBLICATION

      

      14.1    Licensor
        and Company each agree that all information related to this Agreement and
        contained in documents marked “confidential” and forwarded to one by the other
        (i) are to be received in strict confidence, (ii) are to be used only for
        the
        purposes of this Agreement, which may include disclosure of certain confidential
        information to the FDA and foreign regulatory agencies and which disclosures
        shall be expressly permitted hereunder and (iii) except as set forth in
14.1
        (ii)
        above, are not to be disclosed by the recipient party (except as required
        by law
        or court order and then only provided reasonable notice of the impending
        disclosure is provided to the disclosing party), its agents or employees
        without
        the prior written consent of the other party, except to the extent that the
        recipient party can establish that such information:

      
        	(a)    	
                was
                  in the public domain at the time of disclosure;
                  or

              

      

      
        	(b)    	
                later
                  became part of the public domain through no fault of the recipient
                  party,
                  its employees, agents, successors or assigns;
                  or

              

      

      
        	(c)    	
                was
                  lawfully disclosed to the recipient party by a third party having
                  the
                  right to disclose it and not under an obligation of confidence
                  to the
                  disclosing party; or 

              

      

      
        	(d)    	
                was
                  already known by the recipient party at the time of disclosure;
                  or

              

      

      
        	(e)    	
                was
                  independently developed by the recipient without use of the other
                  party’s
                  confidential information. 

              

      

      

      14.2    Each
        party’s obligation of confidence under this Article 14 will be fulfilled by
        using at least the same degree of care with the other party’s confidential
        information as it uses to protect its own confidential information, but always
        a
        reasonable degree of care. This obligation will exist while this Agreement
        is in
        force and for a period of three (3) years thereafter. 

      

      14.3    Licensor
        reserves the right to publish the general scientific findings from research
        related to Technology, with due regard to the protection of Company’s
        confidential information. Licensor will submit the manuscript of any proposed
        publication to Company at least thirty (30) calendar days before publication
        in
        order that Company have the right to delete its confidential information
        review
        and protect any potential inventions set forth therein. Upon Company’s request,
        publication may be delayed up to sixty (60) additional days to enable Company
        to
        secure adequate intellectual property protection on inventions of Licensor
        that
        may be set forth in the publication and to which Company has rights under
        this
        Agreement. 

      

      ARTICLE
        15 - REPRESENTATIONS AND WARRANTIES

      

      15.1    The
        Licensor represents and warrants to the Company, (i)
        as
        of the
        date of this Agreement and (ii)
        as
        of the
        date of each payment to be made by the Company to the Licensor under Article
        4
        hereof
        solely
        with respect to items under the control of Licensor,
        that:

       

      15.2    The
        Licensor is a corporation
        duly
        organized, validly existing and in good standing under the laws of the
State
        of
        Delaware, the Licensor has the requisite corporate power and authority to
        execute and deliver this Agreement and this Agreement is enforceable against
        the
        Licensor upon its terms.

       

      
        
          
          

        

        
          Page
            13
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      15.3    The
        execution and delivery of this Agreement and the other agreements contemplated
        hereby do not, and the consummation of the transactions contemplated hereby
        and
        thereby will not, (i) conflict
        with, or result in any violation or breach of any provision of the certificate
        of incorporation or bylaws of the Licensor, or (ii) 
        result
        in (x) any violation or breach of, constitute (with or without notice or
        lapse
        of time or both) a default under or conflict with (or give rise to a right
        of
        termination, amendment, cancellation or acceleration of any material obligation
        or loss of any benefit under) the provisions of any lease, contract or other
        agreement to which the Licensor is a party or by which it or any of its
        properties or assets is otherwise bound or (y) the imposition of any
        lien,
        pledge, hypothecation, mortgage, security interest, claim, lease, charge,
        option, right of first refusal or first offer, easement, servitude, transfer
        restriction, voting requirement or any other encumbrance, restriction or
        limitation on any of the properties or assets of the Licensor. 

       

      15.4    No
        consent, approval or authorization of, or declaration or filing with, any
        Governmental Authority or Person (a “Consent”) is required on the part of the
        Licensor in connection with its execution, delivery and performance of this
        Agreement or the consummation of the transactions contemplated hereby or
        in
        connection with the Technology. 

       

      15.5    No
        oral
        or written communication has been received by the Licensor, and no
        investigation, regulatory enforcement action (including seizure, injunction,
        civil penalty or criminal action) or any related Governmental Authority review
        is or, in respect of any Technology , was at any time pending or, to the
        knowledge of the Licensor is threatened by any Governmental Authority with
        respect to (i) any
        alleged or actual violation by the Licensor of any permit, Law or other
        requirement of any Governmental Authority relating to the operations conducted
        by the Licensor with respect to any Technology or (ii) any
        alleged or actual failure to have or maintain in effect all permits required
        in
        connection with the operations conducted by the Licensor with respect to
        any
        Technology. The Licensor has not received from the Federal Drug Administration
        (“FDA”), the U.S. Drug Enforcement Administration (“DEA” or any similar state,
        local or foreign Governmental Authority any written notice (i) regarding
        the approvability or approval of any of the Technology , or (ii) alleging
        any violation by the Licensor of any Law relating to any of the Technology.
        No
        product incorporating Technology has been withdrawn, suspended or discontinued
        by the Licensor as a result of any action by the FDA, the DEA or any similar
        state, local or foreign Governmental Authority, either within or outside
        the
        U.S. (whether voluntarily or otherwise.

       

      15.6    There
        are
        no suits or actions, administrative, arbitration or other proceedings, or
        governmental investigations pending or, to the knowledge of the Licensor,
        threatened against or affecting the Licensor with respect to the Technology.
        No
        Entity has notified the Licensor of any material claim against the Licensor
        alleging any personal property or economic injury, loss or damage incurred
        as a
        result of or relating to the use of the Technology. There is no judgment,
        order,
        injunction, decree, writ or award against the Licensor that is not satisfied
        and
        remains outstanding with respect to any Technology.

       

      
        
          
          

        

        
          Page
            14
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      15.7    The
        US
        and foreign patent applications and patents and invention disclosures itemized
        on Appendix A set forth all of the patents and patent applications and
        inventions relating to isophosphoramide mustard compounds, owned
        by,
        or licensed to, the Licensor as of the date of this Agreement. 

      

      15.8    The
        Licensor has taken all reasonable actions necessary or appropriate to preserve
        the confidentiality of all trade secrets, proprietary and other confidential
        information material to the business and operations of the
        Licensor.

      

      15.9    There
        are
        no licenses, options, restrictions, liens, rights of third parties, disputes,
        royalty obligations, proceedings or claims relating to, affecting, or limiting
        the Licensor’s rights or the rights of the Company under this Agreement after
        giving effect to this Agreement, or which may lead to a claim of infringement
        or
        invalidity regarding, any part or all of the Technology or its use.

       

      15.9    The
        Technology was not supported in whole or part by funding or grants by any
        federal or state agency. The Licensor has provided the Company with copies
        of
        all documents reflecting support or funding for all or part of the research
        leading to the Technology, and has listed all funding agencies on Appendix
        B.

       

      ARTICLE
        16 - MISCELLANEOUS PROVISIONS

      

      16.1    This
        License Agreement shall be construed, governed, interpreted and applied in
        accordance with the laws of the State of Connecticut, without regard to
        principles of conflicts of laws.

      

      16.2    The
        parties hereto acknowledge that this Agreement, including the Appendices
        and
        documents incorporated by reference, sets forth the entire agreement and
        understanding of the parties hereto as to the subject matter hereof, supersedes
        all previous communications, representations or understandings, either oral
        or
        written between the parties relating to the subject matter hereof, and shall
        not
        be subject to any change of modification except by the execution of a written
        instrument subscribed to by the parties hereto.

      

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

      

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

      

      
        
          
          

        

        
          Page
            15
            of 18

          
            

          

        

        
          
          

        

      

      16.5    The
        headings of the several articles are inserted for convenience of reference
        only
        and are not intended to be a part of or to affect the meaning or interpretation
        of this Agreement.

      

      16.6    This
        Agreement will not be binding upon the parties until it has been signed below
        on
        behalf of each party, in which event, it shall be effective as of the date
        recited on page one.

       

      16.7    Each
        party hereto shall be excused from any breach of this Agreement which is
        proximately caused by governmental regulation, act of war, strike, act of
        God or
        other similar circumstance normally deemed outside the control of the
        parties.  

       

      IN
        WITNESS WHEREOF,
        the
        parties hereto have executed this License Agreement, in triplicate by proper
        persons thereunto duly authorized.

       

      
        
          	ZIOPHARM,
                  INC.	 	DEKK-TEK
	 	 	 	 	 
	 	 	 	 	 
	By: 	/s/ Jonathan
                  Lewis	 	By:	/s/ Lee
                  Roy Morgan
	 	
                  

                	 	 	
                  

                
	Name: 	Jonathan Lewis	 	Name:	Lee Roy Morgan
	 	
                  

                	 	
                	
                  

                
	Title:	CEO	 	Title:	CEO
	 	
                  

                	 	
                	
                  

                
	Date:	11/9/04	 	Date:	10/15/04
	 	
                  

                	 	
                	
                  

                

        

      
        
          
          

        

        
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      APPENDIX
        A

      

      

      (All
        United States and foreign patents and patent applications and invention
        disclosures to be listed here)

      

      

      

      
        
          
          

        

        
          Page
            17
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      APPENDIX
        B

      

      None

       

       

       

      
        
          
          

        

        
          Page
            18
            of 18

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