Document:

Transition and Production Agreement dated November 14, 2006

 Exhibit 10.23 
 TRANSITION AND PRODUCTION AGREEMENT 
 THIS TRANSITION AND PRODUCTION AGREEMENT (the
“Agreement”), effective as of November 14, 2006, (the “Effective Date”), by and between TherOx, Inc. a Delaware corporation, having a principal place of business at 2400 Michelson Drive,
Irvine, CA 92612 (“TherOx”) and KMC Systems, Inc., a Delaware corporation, having a principal place of business at 220 Daniel Webster Highway, Merrimack, NH 03054 (“KMC”). 
 WHEREAS, TherOx is the owner of certain proprietary technology and expertise in the field of dissolving and stabilizing hyper-elevated
concentrations of oxygen in saline solution, designed to treat ischemic myocardial tissue in heart patients; 
 WHEREAS, KMC is the
owner of certain proprietary technology and expertise in the design, development and manufacture of medical instrumentation and equipment; and 
 WHEREAS, TherOx has designed and developed the NexGen System, referenced in the Proposal (as hereinafter defined), and desires to have KMC assist it in completing the transition to manufacture and to thereafter manufacture the
Clinical Instrument and Instrument (as hereinafter defined) on an exclusive basis, and KMC desires to do so, all in accordance with the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual representations, warranties and covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	 	1.	DEFINITIONS 

 As used in this Agreement: 

1.1 “ATP” shall mean the Acceptance Testing Procedures for the Clinical Instrument or Instrument to be developed by TherOx with the
assistance of KMC. 
 1.2 “Business Day” shall mean a day that is not Saturday, Sunday or a federal, New York
or New Hampshire holiday on which commercial banks are closed for business in New York or New Hampshire. 
 1.3 “Clinical
Instrument” shall mean a clinical production unit of the NexGen System, referenced in the Proposal, consisting of the elements set forth in the Clinical TDP, intended for clinical use only. 
 1.4 “Clinical TDP” shall mean the technical data package for the Clinical Instrument to be developed by TherOx, which includes, without
limitation, detail mechanical drawings, assembly drawings, component specification drawings, bill of materials, schematic and assembly drawings, software, firmware, specifications relating to all of the foregoing, and the ATP for the Clinical
Instruments. 
 1.5 “Customer-Supplied Materials” shall have the meaning set forth in Section 13.1 hereof. 

 1.6 “Dollars” or “$” shall mean United States dollars. 
 1.7 “ECO” shall mean an Engineering Change Order, a standard KMC document used to control incorporation of changes in the TDP or
Clinical TDP. 
 1.8 “Effective Date” shall have the meaning set forth in the title to this Agreement. 
 1.9 “FDA” shall mean the United States Food and Drug Administration or any successor agency thereof. 
 1.10 “Initial Term” shall have the meaning set forth in Section 14.1 hereof. 
 1.11 “Instrument” shall mean a commercial production unit of the NexGen System, referenced in the Proposal, consisting of the elements
set forth in the TDP, together with all future upgrades, modifications and derivatives thereof. 
 1.12 “Intellectual Property”
shall mean all patentable and non-patentable inventions, ideas, discoveries, improvements, design rights, works of authorship, copyrights, trade secrets, know-how and any equivalent developed under this Agreement with respect to the Instrument,
and paid for by TherOx. 
 1.13 “ISO” shall mean maintaining a quality system certified by a notified body to the
International Standards Organization Quality System Standard ISO 13485. 
 1.14 “KMC Work Product” shall have the meaning
set forth in Section 15.2 hereof. 
 1.15 “Proposal” shall mean the KMC Proposal attached hereto as Exhibit A.

 1.16 “Project” shall have the meaning set forth in Section 2.1 hereof. 
 1.17 “Purchase Order” shall mean a binding and irrevocable written purchase order for instruments submitted by TherOx to KMC by
registered mail, telefax or email, addressed to the attention of the KMC Contract Administration Department, containing an express reference to this Agreement, authorizing KMC to manufacture the Instruments under the purchase order (including the
purchase by KMC of materials required for the manufacture of such Instruments), and obligating TherOx to purchase such Instruments from KMC. 
 1.18 “QSR” shall mean the Quality System Regulation 21 of the Code of Federal Regulations, part 820, for the development and manufacture of medical devices and in-vitro diagnostic products. 
 1.19 “Quality Plan” shall mean the KMC Manufacturing Quality Plan to be prepared by KMC and approved by TherOx, which will define the
procedures, practices and requirements for the manufacture of the Clinical Instrument and Instrument by KMC. 
 1.20 “TDP”
shall mean the technical data package for the Instrument to be developed by TherOx with the assistance of KMC, which includes, without limitation, detail mechanical drawings, assembly drawings, component specification drawings, bill of materials,
schematic and assembly drawings, specifications relating to all of the foregoing, and the ATP for the Instruments. 
  

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 1.21 “Term” shall mean the Initial Term and any extension of the Initial Term pursuant
to Section 14.1 hereof. 
 1.22 “Unit Transfer Price” shall have the meaning set forth in Section 9.1 hereof.

 1.23 “Work Request” shall mean a written document proposing changes, or additions of work scope to the then existing
agreed upon scope of services and work to be performed by KMC. A Work Request will state the reason or basis of the request, an estimate of the anticipated costs associated with such change and an estimate of the impact on the schedule and the Unit
Transfer Price. 
 1.24 “Work Product” shall have the meaning set forth in Section 15.1 hereof. 
  

	 	2.	TRANSITION TO MANUFACTURE 

 2.1 TherOx hereby
authorizes KMC to immediately commence the Transition to Production Phase set forth in the Proposal and thereby provide all of the services outlined in the Proposal (the “Project”), and KMC hereby agrees to perform the same, all on
the terms and subject to the conditions of this Agreement and the Proposal. In the event of any inconsistency between the terms or conditions of this Agreement and the Proposal, this Agreement shall control. 
 2.2 At all times, as between the parties, TherOx will have full control, authority and responsibility for design and development. While KMC may make
recommendations with respect to the design and manufacturability of the Instrument, final approval of, and responsibility for, all recommended elements shall remain with TherOx. The functionality of the Instrument and its suitability to perform its
required functions are a result of TherOx approved specifications and, accordingly, are also the responsibility of TherOx. 
 2.3 TherOx
shall use its commercial best efforts to provide promptly the assistance, cooperation, feedback, directions and updates of any documentation and information upon which KMC is providing its services, including but not limited to as outlined in the
Proposal, or as otherwise reasonably requested by KMC from time to time. It is acknowledged and agreed by the parties that KMC’s performance under this Agreement depends upon the full cooperation and performance of TherOx. 
 2.4 TherOx acknowledges that all cost estimates for the services provided by or on behalf of KMC under the Project, as well as any schedules (including
task and phase breakouts) provided by KMC for the Project are made by KMC in good faith, and are based on the information available to KMC as of the date hereof. TherOx further acknowledges that in light of the nature of the Project, KMC cannot and
does not represent or warrant that actual costs, pricing or schedules will not vary from such estimates. 
  

	 	3.	TOOLING AND TEST EQUIPMENT 

 KMC will purchase, with
TherOx’s approval and at TherOx’s expense, or TherOx will supply at its expense, all necessary tooling and test equipment for the build, test and delivery of the Clinical Instrument and the Instrument, including but not limited to the
tooling and test equipment 

  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 
described in the Proposal. All such tooling and test equipment paid for (or supplied) by TherOx in accordance with the provisions of this Agreement shall
remain the property of TherOx. KMC shall safeguard and maintain such tooling and test equipment in the same manner as it does its own tooling and equipment, provided that TherOx shall be responsible for all maintenance beyond ordinary and routine
maintenance and for refurbishment and/or replacement of such tooling and test equipment. All tooling and test equipment developed or owned by KMC prior to this Agreement and all tooling and test equipment not paid for (or supplied) by TherOx shall
remain the property of KMC. 
  

	 	4.	REGULATORY RESPONSIBILITY 

 4.1 TherOx shall be
responsible for all submissions in connection with all necessary regulatory approvals to market, distribute and sell the Instruments. TherOx shall also be responsible for all follow-up communication and actions with regulatory agencies related to
the Instrument, including but not limited to any import and export regulations, device tracking requirements and medical device reporting. KMC shall assist and support these efforts as reasonably required by TherOx and at TherOx’s expense.

 4.2 KMC will be responsible for maintaining an FDA and ISO registered medical device manufacturing facility, in compliance with applicable
QSR regulations. KMC will use commercially reasonable efforts to notify TherOx in advance of FDA or notified body inspections or audits relating to the Instruments. TherOx will have the option to be present at KMC’s facility during any such
inspections or audits. KMC will provide TherOx copies of reports and responses relating to such inspections or audits. 
  

	 	5.	EXCLUSIVITY 

 TherOx (including its affiliates and
their respective licensees) shall, directly and indirectly, throughout the Term, purchase all of the world-wide requirements for the Clinical Instrument and Instrument exclusively from KMC, provided all regulatory requirements and quality standards
provided for in Section 4.2 hereof are maintained, and KMC shall produce for and sell to TherOx (including its affiliates and their respective licensees) all of their world-wide requirements for the Clinical Instrument and Instrument, all on
the terms and subject to the conditions of this Agreement. Notwithstanding the preceding sentence, prior to launch of the Instrument in the U.S., TherOx shall have the right to manufacture not more than [***] ([***]) units of the Instruments and
sell such units outside the U.S. 
 KMC shall not manufacture products utilizing technology in the field of [***] following the termination
or expiration of this Agreement. 
  

	 	6.	PRODUCTION OF INSTRUMENTS 

 6.1 Upon release of the
final TDP by TherOx and receipt of Purchase Orders from TherOx which are accepted in accordance with Section 7.2 hereof, KMC will build, test, label and ship the Clinical Instruments and Instruments in accordance with applicable QSR regulations
(and other applicable FDA regulations and ISO standards as set forth in the Proposal) and the TDP. 
 6.2 Clinical Instruments and
Instruments manufactured by KMC shall be subjected to the applicable ATP prior to shipment, and shall be deemed accepted by TherOx upon meeting the requirements of such ATP, as confirmed by KMC’s written certification provided to TherOx, and
title to the Clinical Instruments and Instruments, and risk of loss thereof, shall transfer to TherOx upon meeting the requirements of such ATP. 
  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 6.3 TherOx will supply to KMC at TherOx’s expense all materials necessary to perform the ATP.

 6.4 The Instruments shall contain such trademarks, tradenames and logos as TherOx may designate from time to time, all of which shall be
free from any claims of any third parties. 
 6.5 KMC and TherOx shall each identify an individual who has the primary responsibility for
maintaining contact and communication with the other with regard to this Agreement. 
 6.6 TherOx may elect to have KMC provide
post-production services in support of the Instrument. These services may include, without limitation: procurement and production of spare parts and/or sub-assemblies, management of spare parts/sub-assembly inventory (including shipments to field
service sites), development of test equipment and procedures for testing of spare parts/sub-assemblies and/or post-warranty repair and refurbishment services. The parties shall negotiate a separate agreement to cover such support services.

  

	 	7.	INSTRUMENT PURCHASE ORDERS 

 7.1 Purchase
Orders. TherOx shall submit Purchase Orders stating (i) the desired quantity of units of the Clinical Instrument and Instrument to be produced under such Purchase Order, (ii) the requested shipping schedule for such Instruments, to
commence not less than ninety (90) calendar days from the date of the Purchase Order and to be in quantities of not less than [***] ([***]) units per month, and (iii) shipment instructions for such Instruments. With the exception of such
quantity, shipping schedule and shipping instructions, all other terms and conditions of any Purchase Order shall be void and of no force or effect. 
 7.2 Response to Purchase Orders. KMC will provide to TherOx a written response to each Purchase Order within ten (10) Business Days of KMC’s receipt of such Purchase Order, indicating either that the
above terms of the Purchase Order respecting quantity, shipping schedule and instructions are acceptable as stated, or setting forth necessary adjustments. If the Purchase Order is in compliance with the binding portion of the forecast set forth in
Section 8.2 and the other terms of this Agreement, then KMC must accept the Purchase Order. If KMC fails to respond to TherOx within said ten (10) Business Days, the Purchase Order shall be deemed accepted by KMC as issued by TherOx with
respect to (i) through (iii) in Section 7.1 hereof. Likewise, if TherOx fails to respond to KMC’s written response within ten (10) Business Days of TherOx’s receipt of such written response, then the modifications to
the Purchase Order set forth in such KMC written response shall be deemed accepted by TherOx. 
 7.3 Initial Order Commitment.
TherOx’s initial Purchase Order consisting of not less than [***] ([***]) units of the Instrument (the “Initial Order”) shall be provided by TherOx to KMC no later than June 1, 2008, or three (3) months following FDA
approval of the Instrument, whichever is later. 
  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 7.4 Continuous Supply. Commencing with the Initial Order and throughout the Term, TherOx shall
provide Purchase Orders for consecutive supply by KMC of at least [***] ([***]) units of the Instrument each month. 
 7.5 Production
Delays. In the event KMC’s production activities under a Purchase Order are interrupted and/or delayed due to TherOx’s decision, action or omission, for any continuous period in excess of thirty (30) calendar days, then KMC
reserves the right to immediately invoice TherOx, at KMC’s then standard sell rate, for all expenses incurred by KMC during the entire period of such delay or interruption. KMC will use commercially reasonable efforts to avoid and/or minimize
such expenses, by using reasonable efforts to reallocate internal resources and attempting to negotiate alternative arrangements with outside suppliers of raw material. 
  

	 	8.	PRODUCTION FORECASTS 

 8.1 Forecast
Requirement. No later than the required issuance date under Section 7.3 hereof for the Initial Order, and at the start of each quarter (i.e. three month period) thereafter throughout the Term (i.e., if the Initial Order is issued on
June 1st then the forecast is due on September 1st, December 1st, March 1st and June 1st), TherOx shall provide KMC with a rolling forecast covering the anticipated delivery of Instruments for the twelve
(12) consecutive month period commencing three (3) months from the date of the forecast (i.e., the forecast issued on June 1st will cover the period from September 1st through August 31st), each of which forecast shall be
consistent with the minimum quantity of Instruments set forth in Section 7.4 hereof. Notwithstanding the foregoing, TherOx shall have no obligation hereunder to provide a rolling forecast to KMC after the date that is ninety (90) calendar
days prior to the termination of the Term. 
 8.2 First 3 Months Binding Purchase Commitment. The first three (3) months of each
rolling forecast shall constitute a firm, binding and irrevocable purchase commitment by TherOx to purchase such quantity of Instruments set forth in the forecast for such quarter and authorization for the purchase by KMC of the materials needed to
manufacture, and manufacture, the Instruments forecasted for such quarter. In furtherance of the immediately preceding sentence, throughout the Term, TherOx shall be deemed to have an outstanding Purchase Order which covers, at a minimum, the number
of units of the Instrument to be delivered during the first quarter of the then twelve (12) month forecast. 
 8.3 Supply of Quantity
in Excess of Forecast. If the quantity of Instruments requested to be delivered under any Purchase Order is in excess of the applicable forecast, KMC shall use its reasonable commercial efforts to supply the entire quantity, subject (among other
factors) to the timely receipt of all additional materials necessary to manufacture such units. The parties hereby acknowledge and agree that in any event, KMC shall not be in breach of its obligations hereunder for not satisfying any such excess
requests by TherOx. 
 8.4 Extensions due to Longer Lead-Time for Materials. The arrangement presented under this Agreement for
production forecasting and scheduling, and the timing of Purchase Order by TherOx and actual manufacture of Instruments by KMC, is predicated upon a maximum material lead-time of less than [***] ([***]) weeks. In the event that material is
identified in the completed design of the Instrument that requires a longer lead-time, KMC and TherOx will make appropriate arrangements for advance material procurements and payment therefore. 
  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

	 	9.	UNIT TRANSFER PRICE FOR THE INSTRUMENT 

 9.1 Unit
Transfer Price. The unit transfer price for each Clinical Instrument and Instrument will be determined based on the formula set forth below (the “Unit Transfer Price”). Exhibit B attached hereto sets forth examples of Unit
Transfer Price calculations. The initial Unit Transfer Price for the Instrument shall be established by KMC following the release of the TDP and the completion of the Clinical Instruments, and shall be subject to further adjustments pursuant to
Section 9.2 below. 
  

					
	 Material Cost
	  	=	  	Total Raw Material Cost X [***]
	 Labor Cost
	  	=	  	Labor Hours X KMC then current Standard Sell Rates
	 Transfer Price
	  	=	  	Material Cost + Labor Cost

 9.2 Adjustments to Unit Transfer Price. 
 (a) Increase in Cost of Raw Materials. In the event the cost of raw materials increases for any reason, including as a result of a delay or
interruption in KMC’s production activities, due to TherOx’s decision, action or omission or a change of vendor pursuant to Section 13.1 hereof, the then Unit Transfer Price shall be increased to reflect such increase in material
cost. 
 (b) Decrease in Cost of Raw Materials. In the event the cost of raw materials decreases for any reason, the then Unit
Transfer Price shall be decreased by KMC by an amount equal to [***] ([***]) of the reduction in the cost of raw materials. 
 (c)
Unrealized Labor Efficiencies. The parties acknowledge and agree that the Unit Transfer Price takes into account the cost of labor for the continuous production of units of the Instrument at a minimum consecutive monthly run-rate of [***]
([***]) units per month. To the extent less than such agreed upon units of the Instrument are produced or such minimum run-rate is interrupted due to TherOx’s decision, action or omission, the then Unit Transfer Price shall be adjusted by KMC
to reflect the negative impact on the labor costs caused by such change. 
 (d) Labor Cost. Provided the minimum Instrument run-rate
under Section 7.4 hereof is maintained, labor costs shall not increase in any calendar year during the Term by more than the cost of living, as measured by the CPI Index for the Boston-Brockton-Nashua region as published by the United States
Department of Labor (or any successor entity or index) (CUURA103SA0), without TherOx’s prior written approval, which approval shall not be unreasonably withheld. 
 (e) Annual Cost Improvements. In the event tooling is acquired which causes a decrease in KMC’s cost of production of the Instruments (raw material and/or labor costs), the party who paid for such tooling
shall be entitled to fully recoup the cost of such tooling by adjusting the Unit Transfer Price as follows: (i) if TherOx paid for such tooling, the then Unit Transfer Price shall be reduced by one hundred percent (100%) of such savings
until TherOx fully recoups the cost of such tooling, and (ii) if KMC paid for such tooling, the then Unit Transfer Price shall remain unchanged until KMC fully recoups the cost of such tooling. After the purchaser of such tooling fully recoups
the cost of such tooling, the then Unit Transfer Price shall be decreased by KMC by an amount equal to [***] ([***]) of the reduction in KMC’s cost of production. 
  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 (f) Auditing of Cost Information. TherOx has the right, upon reasonable notice, to audit
KMC’s costs to verify compliance with Sections 9.1 and 9.2. In no event will such audits occur more than two (2) times per year. 
  

	 	10.	WORK SCOPE CHANGES 

 10.1 Work Scope Changes.
Either TherOx or KMC may, from time to time, propose a change in, or an addition to, the work scope in accordance with this Section. Such proposed change or addition may be a change in the TDP or additional work that is required or recommended to
satisfy the overall goals and requirements of TherOx. 
 10.2 Process for Work Scope Changes. If TherOx proposes such change or elects
to proceed with consideration of any proposed change by KMC, KMC will prepare and submit to TherOx a Work Request. After its receipt of the Work Request, TherOx, in its sole discretion, will determine whether or not to approve the Work Request. If
TherOx determines to proceed with the changes detailed in the Work Request, then within ten (10) Business Days after its receipt of the Work Request, TherOx will notify KMC of that determination by signing and returning to KMC the subject Work
Request. Failure to respond to KMC within such ten (10) Business Days shall constitute a rejection of the Work Request. KMC will implement changes approved by TherOx in accordance with the Work Request and the provisions of Section 10.3
below. All changes to the TDP will be effected by an ECO prepared by KMC and approved by TherOx. 
 10.3 Invoicing for Services Rendered
under Work Request. Unless otherwise stated on the Work Request, KMC will submit invoices to TherOx on a monthly basis for actual expenses incurred, and for services rendered by KMC, in implementing an approved Work Request. If the Work Request
results in a change in the Unit Transfer Price, once the change has been implemented, all subsequent invoices issued by KMC will reflect the amended Unit Transfer Price. 
 10.4 Reimbursement for Unapproved Work Requests. If TherOx asks KMC to prepare a Work Request that is expected to require a substantial amount of estimating effort, TherOx will reimburse KMC for the actual cost
of the estimating effort in the event that the Work Request is not approved by TherOx. KMC shall notify TherOx prior to preparing any Work Request if it will require a substantial amount of estimating effort. 
  

	 	11.	INVOICING 

 11.1 Invoicing. 
 (a) TherOx shall be charged for all services provided by or on behalf of KMC in connection with the Project on a times and materials basis, at KMC’s
then standard hourly and materials rate. KMC shall notify TherOx in advance of any increase in its standard hourly or materials rates. KMC shall invoice on a monthly basis for all labor and material expenditures, as well as travel and outside
services fees. 
 (b) For tooling and test equipment that TherOx expressly authorizes KMC to purchase in writing, in the Clinical TDP, TDP,
or otherwise, KMC shall invoice TherOx upon placing a purchase order for any such tooling or test equipment, at an amount equal to the sum of the submitted order to the supplier, plus [***] ([***]) for KMC’s handling charges. 
  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 (c) Prior to KMC placing purchase orders for any materials, it shall require TherOx, at KMC’s
sole discretion, to either (i) pay an invoice for such materials to be issued by KMC in an amount equal to [***] ([***]) of the actual material cost to be incurred by KMC, or (ii) provide KMC with an irrevocable letter of credit to secure
payment for such materials, issued by a reputable U.S. commercial bank, in an amount equal to [***] ([***]) of the actual material cost to be incurred by KMC, and in form and substance reasonably acceptable to KMC. The letter of credit will, at
TherOx’s option, decrease in value by an amount equal to [***] ([***]) of the cost of materials necessary to manufacture a unit of the Clinical Instrument or Instrument each time an invoice for a Clinical Instrument or Instrument containing
such materials is paid in full by TherOx. KMC shall have the right to drawdown against any letter of credit issued pursuant to this Subsection 11.1(c) upon the failure of TherOx to timely pay an invoice for a Clinical Instrument or Instrument
containing such materials. Within ten (10) Business Days of any drawdown by KMC on the letter of credit, TherOx shall fully replenish the letter of credit, to the full current amount. TherOx’s failure to so replenish the letter of credit
shall be deemed a material breach of this Agreement. Any amounts paid by TherOx for materials under this Subsection 11.1(c) shall be credited against the Unit Transfer Price of the Clinical Instruments or Instruments containing such materials to be
delivered to TherOx, on a pro rata basis. 
 (d) KMC shall invoice TherOx for the Clinical Instruments and Instruments manufactured
hereunder upon successfully completing the ATP, at the then Unit Transfer Price. 
 11.2 Payment. All invoices shall be paid by TherOx, in full, within thirty (30) calendar days of the date of invoice. Failure to make full payment of KMC invoices within the 30- calendar day period provided in this Agreement
shall constitute a material breach by TherOx. Furthermore, KMC may assess TherOx interest at the rate of one and one-half percent (l 1/2%) per month or the maximum rate allowed by applicable law, whichever is lower, on any past due amount, together with its costs of collection (including, without limitation, attorneys’ fees and expenses). All invoices shall be
payable to KMC in Dollars to a bank in the United States designated by KMC. 
 11.3 Dispute of Invoices. If TherOx wishes to
dispute in good faith all or any part of an invoice, TherOx shall provide KMC a notice of the dispute within thirty (30) calendar days of the date of such invoice, and shall timely pay any undisputed portion of the invoice. TherOx and KMC agree
to use all commercially reasonable efforts to resolve any disputes concerning the payment of invoices within thirty (30) calendar days after TherOx has provided such timely notice of dispute. If, notwithstanding such efforts, the parties are
unable to resolve a dispute within such thirty (30) calendar day period, the parties shall submit the dispute to binding arbitration before a single arbitrator mutually agreeable to the parties (provided, however, that if the parties are unable
to mutually agree upon such an arbitrator, within fifteen (15) calendar days of the commencement of an arbitration proceeding, then such arbitrator shall be selected by the American Arbitration Association in accordance with its then prevailing
rules), which arbitration shall be conducted in accordance with the commercial arbitration rules of the American Arbitration Association, to be held in the County of New York, State of New York. The fees and expenses of the arbitrator shall be borne
equally by the parties. In the event the parties have not resolved such a dispute within ninety (90) calendar days after TherOx has provided such notice of dispute, KMC shall have the option to stop work under this Agreement until the dispute
is resolved and TherOx shall have the option to manufacture Instruments or have Instruments manufactured by a manufacturer other than KMC until the dispute is resolved in KMC’s favor. 
  

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 11.4 Taxes. TherOx shall pay all taxes, fees and duties or other amounts, however designated,
including any value added taxes, which are levied or based upon the fees and other amounts charged by KMC to TherOx under this Agreement; provided that the foregoing shall not obligate TherOx to pay any taxes based on the income, gross receipts or
property of KMC. 
  

	 	12.	SHIPMENT & TRANSPORTATION 

 12.1 F.O.B.
Point. All prices are F.O.B. KMC’s plant. TherOx shall be responsible for the payment of all transportation charges incurred in connection with this Agreement. 
 12.2 Shipping Instructions. Normally KMC will ship in accordance with TherOx’s shipping instructions, including, if requested by TherOx, drop shipments to its designated customers. In the absence of
specific instructions, KMC reserves the right to ship by the method it reasonably deems most appropriate to the TherOx facility. 
 12.3
Damage Claims. All claims for loss or breakage and damage, whether concealed or obvious, must be made to the carrier by TherOx within a reasonable time after receipt of the shipment, but in no event shall KMC be responsible for any such loss,
breakage or damage, unless due to KMC’s gross negligence or willful misconduct. 
  

	 	13.	WARRANTY OF KMC 

 13.1 Warranty. KMC warrants
to TherOx that the Clinical Instruments and Instruments manufactured by it hereunder will be free, under normal use and maintenance, from defects in material and workmanship for the shorter of (i) the period of fifteen (15) months from the
date such Clinical Instruments or Instruments meet the requirements of the applicable ATP and TDP or (ii) the period of twelve (12) months from the date of shipment by KMC. KMC also warrants that the Clinical Instruments or Instruments
meet the ATP, TDPs, and have been made in compliance with the Agreement and the Quality Plan. Any materials provided by TherOx from a third party source or as customer furnished or customer directed materials (collectively, “Customer-Supplied
Materials”), and any defect caused by such Customer-Supplied Materials, are excluded from this warranty, and shall be the responsibility of TherOx. Any defects caused by the misuse or faulty maintenance of the Clinical Instrument or Instrument
by TherOx, its customers or any other person or entity other than KMC (or a person under the control of KMC) are also excluded from this warranty and shall be the responsibility of TherOx. Furthermore, in the event any defect is caused by material
provided by a customer directed source, KMC shall have the right to replace such source pursuant to a Work Request as set forth in Section 10.1 hereof, unless TherOx otherwise objects to KMC’s replacement. If TherOx objects to KMC
replacing such source, then thereafter any such materials provided by such source shall be considered Customer-Supplied Materials. 
 13.2
Sole and Exclusive Remedy. As TherOx’s sole and exclusive remedy for any defects in the Clinical Instrument or Instrument, KMC will, at its option, repair or replace without charge, any Clinical Instrument or Instrument manufactured by
it, which is found by KMC to be so defective; provided, however, that (a) the Clinical Instrument or Instrument, subassembly or part involved is returned by transportation designated by KMC to a location designated by KMC and (b) KMC is
notified by TherOx in writing of the defect within the warranty period set forth in Section 13.1 hereof. No allowance will be made for repairs or replacements made without KMC’s written consent. 
  

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 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

 13.3 Disclaimer. OTHER THAN THE WARRANTIES SPECIFIED HEREIN, KMC MAKES NO OTHER
WARRANTIES OF ANY KIND WHATSOEVER, EXPRESSED OR IMPLIED, AND ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED BY KMC AND EXCLUDED FROM THE TERMS OF THIS AGREEMENT. 
  

	 	14.	TERM AND TERMINATION 

 14.1 Term of
Agreement. This Agreement will commence as of the Effective Date and, unless sooner terminated as herein provided, will continue in effect for a period of three (3) years commencing on the date of KMC’s shipment hereunder of the first
Instrument, or delivery of the [***] ([***]) unit of the Instrument, whichever is later (the “Initial Term”). The Initial Term shall automatically extend for additional one (1) year periods unless either party provides the
other party with written notice of termination not later than ninety (90) calendar days prior the end of the Initial Term or any extension thereof. 
 14.2 Termination by Either Party. This Agreement may be terminated at any time by notice in writing to the other party upon the occurrence of one or more of the following events: 
 (a) In the event of a material breach hereunder, then the non-breaching party may terminate this Agreement upon not less than thirty (30) calendar
days (ten (10) calendar days with respect to payment of invoices) prior written notice, setting forth the alleged breach, unless the breach is cured prior to the expiration of such notice period. 
 (b) In the event that TherOx and its affiliates, in good faith, do not commercialize or permanently discontinue the marketing of the Instrument, TherOx
shall have the right to terminate this Agreement upon not less than thirty (30) calendar days prior written notice to KMC; provided, however, if the marketing of the Instrument (or an instrument substantially similar thereto) is directly or
indirectly reinstated by TherOx or any of its affiliates within two (2) years thereafter, then KMC shall have the right to have this Agreement reinstated. If KMC shall elect to so reinstate this Agreement after such termination, then the Term
shall automatically be extended by the amount of time for which this Agreement was terminated. 
 (c) If either party shall file a petition
in bankruptcy, or shall be adjudicated bankrupt, or shall take advantage of the insolvency law of any state or country, or shall make an assignment for the benefit of creditors, or shall have a receiver, trustee or other court officer appointed for
its property, then the other party may terminate this Agreement upon written notice to the other. 
 (d) TherOx shall have the right to
terminate this Agreement upon sixty (60) calendar days written notice if KMC is in breach of (i) any of the regulatory requirements and quality standards provided for in Section 4.2 hereof, or (ii) subject to Section 13
hereof, its timely shipment obligations under an accepted Purchase Order, other than a material breach under Section 14.2(a), unless the breach is cured prior to the expiration of such notice period. 
 14.3 Termination by KMC. In the event KMC’s production activities under a Purchase Order are interrupted and/or delayed due to TherOx’s
decision, action or omission for any continuous period in excess of ninety (90) calendar days, then KMC shall have the right to terminate this Agreement. 
  

 11 

 14.4 Obligations Upon Termination. 
 (a) Neither termination nor expiration of this Agreement shall release any party from fulfilling any obligations which it may have incurred prior to any
such termination or expiration. In the event of any termination of this Agreement, unless otherwise directed by TherOx (in the event of termination hereunder by TherOx) or unless such termination is by KMC, KMC will complete the outstanding
activity. 
 (b) Upon the effective date of termination of this Agreement, TherOx shall pay KMC for all costs and charges incurred
throughout termination, including but not limited to outstanding invoices. In addition to any other amounts due under this Agreement, TherOx shall pay KMC for all expenses incurred by KMC due to non-cancelable material and labor commitments made by
KMC prior to receipt by KMC of a written notice of termination from TherOx or KMC’s issuance of a written notice of termination to TherOx. These expenses may include, but are not limited to, completed but uncompensated production labor hours
expended, inventory and work-in-process, and materials ordered and not returnable or subject to cancellation, actual cancellation charges, restocking fees and other similar charges incurred by KMC, all at KMC’s then standard sell rates less
advance payments, if any, made by TherOx to KMC toward such expenses. KMC will use its commercially reasonable efforts to minimize such termination expenses. 
 (c) Upon payment of all amounts due to KMC under this Agreement, including but not limited to outstanding invoices and termination expenses, KMC shall promptly deliver to TherOx, upon TherOx’s request, the TDP
and such other materials paid for by TherOx, unless TherOx requests that any such materials be destroyed. Until such payment in full, TherOx hereby acknowledges and agrees that KMC shall have a purchase money security interest in the foregoing and
TherOx hereby authorizes KMC to file such documents and notices, as may be necessary to evidence such security interest. 
 (d) Any
termination under this Section 14 shall be in addition to such rights and remedies available to the terminating party under this Agreement, at law, in equity or otherwise. 
 (e) Termination of this Agreement will not relieve the parties hereto of their respective obligations of confidentiality, non-solicitation, or of any
other obligations or liability accrued hereunder prior to such termination. 
  

	 	15.	INTELLECTUAL PROPERTY 

 15.1 Except for the KMC Work
Product, all Intellectual Property conceived and reduced to practice by KMC, either solely or with TherOx, exclusively in the performance by KMC of its services under this Agreement (the “Work Product”) shall, to the extent that
TherOx pays KMC the amounts due under this Agreement, be the sole and exclusive property of TherOx. KMC shall promptly disclose in writing to TherOx all Work Product. TherOx hereby grants to KMC a worldwide, perpetual, royalty-free, non-exclusive
license to use the Work Product owned by TherOx for products that are non-competing with the Instrument. 
 15.2 KMC shall retain ownership
of that portion of the Work Product that is related to manufacturing processes (the “KMC Work Product”). 
  

 12 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
  

	 	16.	INFRINGEMENT 

 Each party hereto shall use
commercially reasonable efforts to not, with actual knowledge, incorporate into the instrument, or the manufacturing processes therefor, any proprietary or confidential technical information of any third party. Each party shall be obligated to
promptly notify the other party of any claims or circumstances concerning infringements, misappropriations, imitation or unauthorized possession, knowledge or use of technology used in the design or manufacture of the Instrument. 
  

	 	17.	NON-SOLICITATION 

 During the Term and for a period
of [***] ([***]) thereafter, neither KMC nor TherOx shall solicit directly or indirectly (whether for its own account or for the account of any other person or entity) for employment of any employees of the other. 
  

	 	18.	REPRESENTATIONS & WARRANTIES 

 Each of the
parties hereto represents and warrants to the other party hereto that: (a) the execution, delivery and performance of this Agreement (i) has been duly authorized and represents its legal, valid and binding obligation, enforceable in
accordance with its terms and (ii) does not contravene any contractual obligation or restriction binding upon or affecting such party; (b) it has the corporate authority to enter into this Agreement and to perform its obligations
hereunder; and (c) it has not and will not enter into agreements or commitments that conflict with the rights granted to the other party under this Agreement. 
  

	 	19.	INSURANCE COVERAGE 

 19.1 Insurance Obligation of
KMC. KMC represents and warrants that it maintains, and shall maintain in good standing throughout the Term, comprehensive general liability insurance in an amount of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. Upon
written request by TherOx, KMC shall deliver to TherOx a certificate of insurance verifying such insurance coverage. 
 19.2 Insurance
Obligation of TherOx. TherOx represents and warrants that it maintains, and shall maintain in good standing throughout the Term, comprehensive general liability insurance in an amount of at least $1,000,000 per occurrence and $2,000,000 in the
aggregate. Upon written request by KMC, TherOx shall deliver to KMC a certificate of insurance verifying such insurance coverage. 
  

	 	20.	INDEMNITY 

 20.1 By TherOx. TherOx agrees to
indemnify, defend and hold harmless KMC and its officers, directors, employees, customers and distributors and agents (the “KMC Indemnitees”) from and against any and all losses, costs, damages, liabilities and expenses of any kind
whatsoever (including all reasonable attorneys’ fees and court costs) (collectively, “Damages”) claimed by or payable to third parties, attributable to any of the Clinical Instrument, Instrument, TherOx’s acts or
omissions, or the services provided by KMC hereunder, except to the extent that same result solely and directly from the negligence or willful misconduct of KMC. In the event any claim is asserted or any suit is filed against an KMC Indemnitee for
which TherOx may be required 

  

 13 

 
to indemnify KMC under this provision, KMC shall give TherOx prompt written notice of same. KMC shall cooperate with TherOx, at TherOx’s reasonable
request and TherOx’s cost and expense, in the defense of any such claim. TherOx shall have the sole right to defend and/or settle such a claim, including selecting counsel of its choice. 
 20.2 By KMC. KMC agrees to indemnify, defend and hold harmless TherOx and its officers, directors, employees, and agents (the “TherOx
Indemnitees”) from and against any and all Damages claimed by or payable to third parties, attributable to injury to persons or damage to property arising out of or in any way connected with the Instrument or the services provided by KMC
hereunder, provided the same result solely and directly from the negligence or willful misconduct of KMC. In the event any claim is asserted or any suit is filed against an TherOx Indemnitee for which KMC may be required to indemnify TherOx under
this provision, TherOx shall give KMC prompt written notice of same and shall cooperate with KMC, at KMC’s reasonable request and KMC’s cost and expense, in the defense of any such claim. KMC shall have the sole right to defend and/or
settle such a claim, including selecting counsel of its choice. 
  

	 	21.	LIMITATION OF LIABILITY 

 21.1 Waiver of
Consequential Damages. Except with regard to amounts payable to third parties pursuant to the indemnification obligations under Section 20 hereof, neither party shall be liable to the other in contract, tort or otherwise for special,
indirect, incidental or consequential damages of any kind or nature. 
 21.2 Limitation on Liability. KMC’s liability on any
claim of any kind, including negligence, for any loss or damage arising out of, connected with, or resulting from this Agreement or performance or breach thereof, shall in no single ease, or in the aggregate, exceed the aggregate Dollar amount paid
by TherOx to KMC under this Agreement. 
  

	 	22.	FORCE MAJEURE 

 Neither party hereto shall be
responsible or liable in any way for failure or delay in carrying out the terms of this Agreement (other than the full and timely payment of all duly issued invoices hereunder) resulting from any cause or circumstance beyond its reasonable control,
including, but not limited to, fire, flood, other natural disasters, war, labor difficulties, interruption of transit, accident, explosion, civil commotion, and acts of any governmental authority; provided, however, that the party so affected shall
give prompt notice thereof to the other party. No such failure or delay shall terminate this Agreement, and each party shall complete its obligations hereunder as promptly as reasonably practicable following cessation of the cause or circumstance of
such failure or delay. 
  

	 	23.	ASSIGNMENT 

 This Agreement shall inure to the
benefit of and bind the parties hereto and their respective successors and permitted assigns. It is specifically agreed, however, that neither party may assign its rights or duties pursuant to this Agreement without the written consent of the other
party, except that either party may, without the other party’s consent, assign or transfer any right, title or interest under this Agreement to an entity with which the assigning party may merge or consolidate, which acquires all or
substantially all of its business, or which controls, is controlled by or is under common control with the assigning party. Any attempted transfer or assignment contrary to the terms of the provision shall be null and void. 
  

 14 

	 	24.	AMENDMENTS 

 This Agreement may only be amended,
modified, changed or assigned by a writing duly executed by KMC and TherOx. The terms of any Purchase Order or other document contrary or in addition to the terms of this Agreement shall be of no force or effect. 
  

	 	25.	ENTIRE AGREEMENT 

 This Agreement, along with its
Attachments and the Quality Plan, constitute the entire understanding between the parties with respect to the subject matter hereof, and shall supersede and nullify all prior or contemporaneous agreements, whether written or oral, relating thereto;
provided, however, that the parties shall continue to be bound by the Confidential Disclosure Agreement executed by the parties, dated as of November 28, 2005, which continues to be in full force and effect in accordance with its terms.

  

	 	26.	NOTICES 

 Any notice required by the Agreement shall
be sent by certified mail, postage prepaid, return receipt requested, or by prepaid courier delivery, or by facsimile, and shall be forwarded to the respective addresses set forth below unless subsequently changed by written notice to the other
party. Such notice, if received, shall be deemed to have been received, if by first class mail, on the tenth (10th) calendar day after posting; if by express courier, on the date of delivery by the courier; and if by telefax, upon transmission
with confirmation of receipt. 
  

			
	For TherOx:	  	TherOx, Inc.
		  	2400 Michelson Drive
		  	Irvine, CA 92612
		  	Attention: President
		  	Fax No.: (949)757-1989
		
	For KMC:	  	KMC Systems, Inc.
		  	220 Daniel Webster Highway
		  	Merrimack, NH 03054
		  	Attention: President
		  	Fax No.: (603) 594-7022
		
	With a copy to:                	  	KMC Systems, Inc.
		  	220 Daniel Webster Highway
		  	Merrimack, NH 03054
		  	Attention: General Counsel
		  	Fax No.: (603)886-2007

  

	 	27.	GOVERNING LAW 

 This Agreement shall be governed,
interpreted and construed in accordance with the internal laws of the State of New York, applicable to contracts made in and entirely performed in such State, and, therefore, without regard to its conflict of laws provisions. The parties hereby
submit to the exclusive jurisdiction of the State and Federal Courts situated in the County of New York, State of New York, with regard to any disputes or claims under, arising out of or in connection with this Agreement. 
  

 15 

	 	28.	RELATIONSHIP OF PARTIES 

 The parties to this
Agreement are independent contractors and not joint venturers or partners. Neither party shall be deemed to be an agent of the other party as a result of any transaction under or related to this Agreement nor shall in any way pledge the other
party’s credit or incur any obligation on behalf of the other party. 
  

	 	29.	WAIVER 

 The failure of either party to insist upon
strict compliance with any of the terms, covenants, or conditions herein shall not be deemed a waiver by such party of such terms, covenants or conditions, nor shall any waiver or relinquishment of any right at any one or more times be deemed a
waiver or relinquishment of such right at any other times, nor shall any single or partial exercise of any right or remedy hereunder preclude any other or a future exercise thereof or the exercise of any other right or remedy granted hereby or by
any related document or by law. 
  

	 	30.	SEVERABILITY 

 The invalidity or unenforceability of
any provision hereof shall in no way affect the validity or enforceability of any other provision. Any provision declared invalid or unenforceable by a court of competent jurisdiction shall be deleted and the remaining terms and conditions of this
Agreement shall remain in full force and effect. 
  

	 	31.	FEES AND EXPENSES 

 Except as otherwise provided in
this Agreement, each of the parties hereto shall pay its own fees and expenses (including, without limitation, the fees of any attorneys, accountants, or other representatives) incurred in connection with this Agreement and the transactions
contemplated hereunder, whether or not such transactions are consummated. 
  

	 	32.	COUNTERPARTS 

 This Agreement may be fully executed
in two (2) original counterparts, each of which shall be deemed an original, but both of which, taken together, shall constitute one and the same instrument. 
  

 16 

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

  

			
	THEROX, INC.
	
	 /s/ Kevin T. Larkin

	By:	 	Kevin T. Larkin
	Title:	 	President and Chief Executive Officer
	
	KMC SYSTEMS, INC.
	
	 /s/ Pat McNallen

	By:	 	Pat McNallen
	Title:	 	President

  

 17 

 Exhibit A 
 KMC Proposal 
  

 18 

 PROPOSAL 
 FOR 
 TherOx, Inc. 
  
  
  
  
  
 [KMC LOGO] 
  

 19 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
 [***] 
  

 20 

 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
 AMENDMENT TO TRANSITION AND
PRODUCTION AGREEMENT 
 THIS AMENDMENT (this “Amendment”) is made to the Transition and Production Agreement (the
“Agreement”) dated November 14, 2006, between TherOx, Inc. (“ThereOx”), and KMC Systems, Inc. (“KMC”). 
 WHEREAS TherOx and KMC desire to clarify the exclusivity obligations to the Agreement. 
 NOW THEREFORE, in consideration of the
mutual promises and covenants set forth herein, TherOx and KMC agree to amend the Agreement as follows: 
  

	 	1.	The final paragraph of Section 5, EXCLUSIVITY, is hereby amended to read: 

 Throughout the Term KMC shall manufacture products utilizing technology in the field of dissolving and stabilizing hyper-elevated concentrations of oxygen in saline solutions solely for the purposes of supplying the
requirements of TherOx for the Clinical Instrument and the Instrument pursuant to this Agreement. KMC shall not manufacture products utilizing technology in the field of [***] following the termination or expiration of this Agreement. 
 IN WITNESS WHEREOF, the parties have caused this Amendment to Transition and Production Agreement to be executed by their respected duly authorized
officers as of the day and year last set forth below. 
  

			
	THEROX, INC.
	
	 /s/    Kevin T. Larkin

	Kevin T. Larkin
	President and Chief Executive Officer
		
	Date:	 	Jan 22, 2008
	
	KMC SYSTEMS, INC.
	
	 /s/    Pat McNallen

	Pat McNallen
	President
		
	Date:	 	Jan 22, 2008

  

 21Unassociated Document

     

    Exhibit
10.1

    LICENSE
AGREEMENT

     

    THIS
LICENSE AGREEMENT (the “Agreement”)
is made and entered into this 28th day of August 2008 (the “Effective
Date”), by and between Aegera Therapeutics Inc., a company organized and
existing under the laws of Canada (“Licensor”),
having a principal place of business located at 810 chemin du Golf, Ile des
Soeurs, Québec H3E 1A8, Canada, and Neurologix, Inc., a Delaware corporation
(“Licensee”),
having a principal place of business located at One Bridge Plaza, Fort Lee, NJ
07024, USA.

     

    RECITALS

     

    WHEREAS,
Licensor is the owner of certain patents and other intellectual property
relating to the X-linked Inhibitor of Apoptosis Protein (“XIAP”);

     

    WHEREAS,
Licensee desires to obtain an exclusive license in the Field (as hereinafter
defined) to develop and commercialize products by using and practicing the
Licensed Methods (as hereinafter defined) and Licensed Patent Rights (as
hereinafter defined); and

     

    WHEREAS,
Licensor is willing to grant such a license to Licensee on the terms set forth
herein.

     

    NOW
THEREFORE, the parties agree as follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

    
      	
              1.1

            	
              “Accounting
      Standards” shall mean United States Generally Accepted Accounting
      Principles, as generally and consistently applied throughout the
      applicable Person’s organization.

            

    

     

    
      	
              1.2

            	
              “Affiliate”
      means, with respect to a specified Person, any other Person, (i) which is
      controlling, controlled by or under common control with, such specified
      Person or (ii) in which such specified Person owns 20% or more of the
      equity or other ownership interests. For purposes of this Section 1.2, the
      term “control” means possession, direct or indirect, of the powers to
      direct, cause or direct or cause the direction of the management and
      policies of a Person, whether through the ownership of voting securities,
      by contract or otherwise.

            

    

     

    
      	
              1.3

            	
              “Confidential
      Information” shall mean all technical and scientific know-how and
      information, non-clinical and clinical trial results, computer programs,
      knowledge, technology, means, methods, processes, practices, formulas,
      techniques, procedures, technical assistance, designs, drawings,
      apparatus, written and oral representations of data, specifications,
      assembly procedures, schematics and other valuable information of whatever
      nature and all other scientific, clinical, regulatory, marketing,
      financial and commercial information or data, whether communicated in
      writing, verbally or electronically, which is provided by a party to the
      other party in connection with this Agreement. For the avoidance of doubt,
      the terms and conditions of this Agreement shall be deemed the
      Confidential Information of both Licensor and
  Licensee.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.4

            	
              “Field”
      means therapeutic or prophylactic use in the treatment of Huntington’s
      Disease by Gene Therapy.

            

    

     

    
      	
              1.5

            	
              “First
      Commercial Sale” means the first sale of any Licensed Product (as
      hereinafter defined) by Licensee or any of its Affiliates or Sublicensees
      following approval of its marketing to the general public by the
      appropriate governmental agency for the country in which the sale was
      made, and, where governmental approval is not required, the first sale in
      that country.

            

    

     

    
      	
              1.6

            	
              “Gene
      Therapy” means the treatment of certain disorders, including, but
      not limited to those caused by genetic anomalies or deficiencies, by
      introducing specific engineered genes into a patient’s
    body.

            

    

     

    
      	
              1.7

            	
              “Improvements”
      means any and all additions, alterations, modifications, design changes
      and other improvements to the Licensed Patent Rights, including subject
      art thereof, and the Technology which are individually developed by
      Licensor, Licensee, any Sublicensee or any Third Party during the
      Term.

            

    

     

    
      	
              1.8

            	
              “License”
      has the meaning set forth in Section
2.2.

            

    

     

    
      	
              1.9

            	
              “Licensed
      Method” means any process or method that is covered by a Valid
      Claim.

            

    

     

    
      	
              1.10

            	
              “Licensed
      Patent Rights” means the patents and patent applications listed in
      Schedule
      A hereto, including divisionals, continuations and, to the extent
      entirely supported by such patents and patent applications,
      continuation-in-part applications, any patents issuing on said
      applications, including reissues and reexaminations thereof, and any
      foreign counterparts thereto.

            

    

     

    
      	
              1.11

            	
              “Licensed
      Product” means a product, the manufacture, use, offer for sale,
      sale or importation of which employs a Licensed Method or the manufacture,
      use, offer for sale, sale or importation of which is covered by a Valid
      Claim.  Once a product becomes a Licensed Product, such product
      shall remain a Licensed Product for all purposes under this
      Agreement.

            

    

     

    
      	
              1.12

            	
              “Net
      Sales” means the total amount invoiced by Licensee or its
      Affiliates or Sublicensees from the sale or distribution of Licensed
      Products in the Territory, less the sum of the following deductions where
      applicable, determined in accordance with the Accounting Standards: sales,
      use, tariff, import/export duties or other excise taxes imposed upon
      particular sales, transportation charges, allowances or credits to
      customers because of rejections or returns and actual amounts credited for
      uncollectible amounts on previously sold Licensed
      Products.  Sales between or among Licensee and its Affiliates or
      Sublicensees shall be excluded from the computation of Net Sales, except
      where such Affiliates or Sublicensees are end users (i.e., where such sale
      is the last sale to the consumer), but Net Sales shall include the
      subsequent final sales to Third Parties by such Affiliates or
      Sublicensees.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    To the
extent that any amount that would otherwise qualify as a deduction in the
calculation of Net Sales is paid by a Third Party pursuant to a separate charge
or invoice, such amount shall not be deducted in the calculation of Net
Sales.  In the case of any sale or other disposal of a Licensed
Product between or among a party and its Affiliates, or Sublicensees, for
resale, Net Sales shall be calculated as above only on the value charged or
invoiced on the first arm’s-length sale thereafter to a Third
Party.  In the case of any sale or other disposal for value, such as
barter or counter-trade, of any Licensed Product, or part thereof, other than in
an arm’s length transaction exclusively for money, Net Sales shall be calculated
as above on the value of the non-cash consideration received or the fair market
price (if higher) of the Licensed Product in the country of sale or
disposal.

     

    Transfers
of samples of the Licensed Product, such as for physician samples and indigent
patient and similar programs (including registration samples), will not be
included for purposes of determining Net Sales; provided
that
no compensation beyond the cost of goods of any such transferred Licensed
Product is received, such sampling and other programs are conducted in a manner
consistent with Licensee’s, its Affiliate’s or it Sublicensee’s normal practices
applied across all of its products and no non-cash consideration or other
benefits (e.g., concessions or agreements with respect to products other than
the Licensed Product) is obtained in exchange for such transferred Licensed
Product.

     

    
      	
              1.13

            	
              “Ottawa
      License Agreement” means the License Agreement between University
      of Ottawa and Aegera (as successor to Apoptogen Inc.), made as of November
      30, 1995, as amended as of October 10,
2000.

            

    

     

    
      	
              1.14

            	
              “Person”
      means an individual, sole proprietorship, partnership, limited
      partnership, limited liability partnership, corporation, limited liability
      company, business trust, joint stock company, trust, unincorporated
      association, joint venture or other similar entity or organization,
      including without limitation, a government or political subdivision,
      department or agency of a
government.

            

    

     

    
      	
              1.15

            	
              “Royalty
      Term” means the period that commences on the Effective Date and
      terminates, on a country-by-country basis, with respect to each Licensed
      Product, on the later to occur of (a) the expiration of the last to expire
      Valid Claim within the Licensed Patent Rights covering such Licensed
      Product, (b) ten (10) years after the First Commercial Sale of such
      Licensed Product in such country or (c) the full prosecution of any claims
      under a properly filed patent
application.

            

    

     

    
      	
              1.16

            	
              “Sublicensee”
      means any Third Party sublicensed by Licensee to make, have made, use,
      offer for sale, sell, have sold, import or have imported Licensed
      Products.

            

    

     

    
      	
              1.17

            	
              “Territory”
      means the entire world except for the People’s Republic of
      China.

            

    

     

    
      	
              1.18

            	
              “Third
      Party” means any Person other than Licensee, Licensor or any of
      their respective Affiliates.

            

    

     

    
      	
              1.19

            	
              “Third
      Party License” means any agreement under which a license to the
      Licensed Patent Rights or Technology is granted by a Third Party to
      Licensor.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              1.20

            	
              “Technology”
      means any and all proprietary processes, trade secrets, technical
      information and know-how claimed in or relating to the Licensed Patent
      Rights, that is necessary or useful to make, use, offer for sale, sell or
      import Licensed Products in the Field and that is owned or controlled by
      Licensor as of the Effective Date.

            

    

     

    
      	
              1.21

            	
              “Valid
      Claim” means (a) any claim of an issued, unexpired patent included
      in the Licensed Patent Rights, which claim has not lapsed, been abandoned,
      been revoked or been held to be invalid or unenforceable by a final
      judgment of a court of competent jurisdiction or other governmental agency
      from which no appeal can be or is taken within the time allowed for appeal
      and which has not been admitted to be invalid or unenforceable through
      reissue, re-examination, disclaimer or otherwise; or (b) any claim of a
      patent application included in the Licensed Patent Rights that has been
      pending for less than seven (7) years and which has not been withdrawn,
      cancelled, abandoned, or finally held to be
  unallowable.

            

    

     

    ARTICLE
II

     

    GRANT

     

    
      	
              2.1

            	
              Subject
      to the terms and conditions of this Agreement and the Ottawa License
      Agreement, Licensor hereby grants to Licensee and its Affiliates in the
      Territory an exclusive license, under the Licensed Patent Rights to make,
      have made, use, offer for sale, sell, have sold, import and have imported
      Licensed Products in the Field in the Territory (the “Product
      License”) during the Term.

            

    

     

    
      	
              2.2

            	
              Subject
      to the terms and conditions of this Agreement and the Ottawa License
      Agreement, Licensor hereby grants to Licensee and its Affiliates an
      exclusive license to use and have used the Technology in connection with
      the manufacture, use, offer for sale, sale and importation of Licensed
      Products in the Field in the Territory (the “Technology
      License” and, together with the Product License, the “License”)
      during the Term.

            

    

     

    
      	
              2.3

            	
              Licensor
      shall retain ownership of any Improvements to the inventions claimed in
      the Licensed Patent Rights and to the Technology that are developed or
      invented by or on behalf of it, its Affiliates or Third Parties (“Licensor
      Improvements”).  Licensor shall promptly notify Licensee,
      in writing, of any Licensor Improvements in the Field in the
      Territory.  In the event that Licensor, its Affiliates or Third
      Parties, makes any such Improvements, and Licensor and Licensee are able
      to determine commercially reasonable terms for a license of such
      Improvements, Licensor, shall grant to Licensee an exclusive license, with
      the right to grant sublicenses, to make, have made, use, offer for sale,
      sell, have sold, import and have imported the Licensor Improvements in the
      Field in the Territory.

            

    

     

    
      	
              2.4

            	
              Licensee
      shall retain ownership of any improvements to the inventions claimed in
      the Licensed Patent Rights and to the Technology that are developed or
      invented by or on behalf of Licensee, its Affiliates and Sublicensees
      (“Licensee
      Improvements”).  Licensee shall promptly notify Licensor,
      in writing, of any Licensee Improvements.  In the event that
      Licensee, or its Affiliates, makes any Improvements to the inventions
      claimed in the Licensed Patent Rights or to the Technology, and Licensor
      and Licensee, or its Affiliates, are able to determine commercially
      reasonable terms for a license of such Improvements, Licensee, or its
      Affiliates, shall grant to Licensor a non-exclusive license, with the
      right to grant sublicenses, to make, have made, use, offer for sale, sell,
      have sold, import and have imported the Licensee Improvements; provided
      that, during the Term, such license shall not permit the manufacture, use,
      offer for sale, sale or importation of Licensed Products in the Field in
      the Territory.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    ARTICLE
III

     

    SUBLICENSES

     

    
      	
              3.1

            	
              Licensee
      shall have the right to grant exclusive and/or non-exclusive sublicenses
      (each a “Sublicense”)
      of the License to Third Parties.  The granting by Licensee of a
      Sublicense shall not relieve Licensee of any of its obligations
      hereunder.

            

    

     

    
      	
              3.2

            	
              Licensee
      shall furnish Licensor with an unredacted copy of any Sublicense within 15
      days after the execution thereof; provided
      that
      the existence and terms of any such Sublicense shall constitute
      Confidential Information of
Licensee.

            

    

     

    
      	
              3.3

            	
              Licensee
      shall provide to Licensor a copy of all information submitted to Licensee
      by Sublicensees that is relevant to the computation of the payments due
      from Licensee to Licensor under this
Agreement.

            

    

     

    
      	
              3.4

            	
              Licensee
      shall obtain from its Affiliates and Sublicensees all licenses and access
      to information and documents necessary for Licensee to grant to Licensor
      the rights and licenses set forth in Section
  2.4.

            

    

     

    
      	
              3.5

            	
              The
      Sublicense shall be consistent with all the relevant terms of this
      Agreement, including Section 2.4, this Article III and Articles VI, IX, X,
      XI, XV and XVI.

            

    

     

    
      	
              3.6

            	
              In
      the event of a material default of a Sublicense by any Sublicensee,
      Licensee will promptly inform Licensor of such
      default.  Notwithstanding any such material default, Licensee
      shall remain responsible for the satisfaction of all obligations of
      Licensee, its Affiliates and Sublicensees under this
      Agreement.

            

    

     

    ARTICLE
IV

     

    INITIATION
and MAINTENANCE FEES

     

    
      	
              4.1

            	
              On
      the Effective Date, Licensee shall pay to Licensor a non-refundable
      initiation fee of ########.*
      This fee is not intended to be, and shall not be construed as, an advance
      against Royalties (as hereinafter
defined).

            

    

     

      
        

      

    

    
      
        *
######## = Material omitted pursuant to a request for Confidential Treatment and
filed separately with the Commission on the date of filing of this Form
8-K.

      

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              4.2

            	
              Commencing
      on January 1, 2009, and on each subsequent January 1 during the Term,
      Licensee shall pay an annual maintenance fee (the “Maintenance
      Fee”) of ########*
      to Licensor. The Maintenance Fee for each calendar year shall be offset
      against Royalties (as hereinafter defined) payable to Licensor based on
      Net Sales occurring in the same calendar
year.

            

    

     

    ARTICLE
V

     

    ROYALTIES

     

    
      	
              5.1

            	
              Within
      sixty (60) days after the end of each calendar quarter during an
      applicable Royalty Term in which Net Sales occur, Licensee shall pay to
      Licensor earned royalties on the Net Sales during such calendar quarter
      (“Royalties”).  The
      Royalties due for any calendar quarter shall be determined as
      follows:

            

    

     

    
      	
               
      

            	
              5.1.1

            	
              On
      the first ######## during such calendar year, Licensee shall pay Royalties
      in an amount equal to ########;

            

    

     

    
      	
               
      

            	
              5.1.2

            	
              On
      the next ######## during such calendar year, Licensee shall pay Royalties
      in an amount equal to ########;

            

    

     

    
      	
               
      

            	
              5.1.3

            	
              On
      Net Sales during such calendar year in excess of ########, Licensee shall
      pay Royalties in an amount equal to
########;

            

    

     

    
      	
               
      

            	
              5.1.4

            	
              Royalties
      shall be payable only once with respect to Net Sales regardless of the
      number of Licensed Patent Rights which cover the Licensed
      Product;

            

    

     

    
      	
               
      

            	
              5.1.5

            	
              On
      a Licensed Product-by-Licensed Product and country-by-country basis, for
      Net Sales of a Licensed Product in a country made during any portion of
      the applicable Royalty Term in which no Valid Claim covers such Licensed
      Product in such country, the royalty rates set forth in Sections 5.1.1
      through 5.1.3 above applicable to such Net Sales shall be reduced to
      ########.

            

    

     

    
      	
               
      

            	
              5.1.6

            	
              To
      the extent that Licensee or any of its Affiliates or Sublicensees
      determines that it is required to obtain in any jurisdiction a license
      from a Third Party to patent rights covering XIAP (excluding, for the
      avoidance of doubt, patent rights covering any delivery vector that may be
      incorporated into a Licensed Product) in order to make, use, offer for
      sale, sell or import a Licensed Product in the Field in such jurisdiction,
      then ######## in such jurisdiction may be deducted from royalties
      otherwise payable to Licensor; provided
      that
      in no event shall the aggregate royalties payable to Licensor in any
      calendar quarter based on Net Sales in such jurisdiction be reduced by
      ######## 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.

            

    

     

    
      
        

      

      
        
          *
######## = Material omitted pursuant to a request for Confidential Treatment and
filed separately with the Commission on the date of filing of this Form
8-K.

           

        

      

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              5.2

            	
              In
      addition to the Royalties payable pursuant to Section 5.1, Licensee shall
      pay Licensor the following milestone payments for each Licensed Product
      (collectively, “Milestone
      Payments”), each of which shall be paid only once for each Licensed
      Product: ########*

            

    

     

    
      	
              5.3

            	
              Royalties
      shall be payable on a Licensed Product-by-Licensed Product and
      country-by-country basis during the applicable Royalty
    Term.

            

    

     

    
      	
              5.4

            	
              All
      monies due to Licensor under this Agreement shall be payable in United
      States dollars by wire transfer to an account to be established by
      Licensor. Licensee shall be responsible for all bank transfer
      charges.  When Licensed Products are sold for monies other than
      United States dollars, the Royalties will first be determined in the
      foreign currency of the country in which such Licensed Products were sold
      and then converted into United States dollars at the exchange rate
      established by Capital One Bank on the last day of the applicable calendar
      quarter.

            

    

     

    
      	
              5.5

            	
              Any
      tax for the account of Licensor required to be withheld by Licensee under
      the laws of any foreign country shall be promptly paid by Licensee for and
      on behalf of Licensor to the appropriate governmental authority, provided
      that Licensee and Licensor shall use reasonably and legal efforts to
      cooperate to minimize such withholding taxes (e.g., by taking advantage of
      applicable tax treaties) and Licensee shall use reasonable commercial
      efforts to furnish Licensor with proof of payment of any such
      tax.  Nothing herein shall require Licensee to be responsible
      for or pay any taxes payable by Licensor, including taxes on the income of
      Licensor.

            

    

     

    
      	
              5.6

            	
              If
      at any time legal restrictions prevent the prompt remittance to Licensor
      of part or all Royalties by Licensee with respect to any country where a
      Licensed Product is sold, Licensee shall have the right and option to make
      such payments by depositing the amount thereof in local currency in
      Licensor ‘s bank account or other depository in such
    country.

            

    

     

    
      
        

      

      
        
          *
######## = Material omitted pursuant to a request for Confidential Treatment and
filed separately with the Commission on the date of filing of this Form
8-K.

        

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              5.7

            	
              In
      the event that any patent or any claim thereof included within the
      Licensed Patent Rights shall be held invalid or unenforceable in a final
      decision by a court of competent jurisdiction from which no appeal has or
      can be taken, any such claim so adjudicated shall thereupon cease to
      constitute a Valid Claim.  Licensee shall not, however, be
      relieved from paying any Royalties that accrued before such decision or
      that are based on another patent or claim not involved in such
      decision.

            

    

     

    ARTICLE
VI

     

    DUE
DILIGENCE

     

    Licensee
shall use, or shall cause its Affiliates or Sublicensees to use, commercially
reasonable efforts to develop and commercialize the Licensed Products throughout
the Territory, including, without limitation, in accordance with the milestones
set forth in Schedule
B attached hereto.

     

    ARTICLE
VII

     

    PATENT
FILING, PROSECUTION AND MAINTENANCE

     

    
      	
              7.1

            	
              Licensor
      shall have the first right to prepare, file, prosecute and maintain the
      Licensed Patent Rights in the United States and in all foreign countries
      within the Territory with counsel selected by Licensor at Licensor’s
      expense.  Licensor shall (i) promptly provide Licensee and its
      counsel with copies of any official communications from the United States
      and any foreign patent office relating to the Licensed Patent Rights, and
      (ii) provide Licensee and its counsel with advance copies of all written
      communications addressed to the United States or any foreign patent office
      relating to the Licensed Patent Rights.  In the event that
      Licensor determines not to prepare, file, prosecute or maintain any patent
      rights constituting Licensed Patent Rights, Licensor shall promptly notify
      Licensee in writing, and, subject to Licensor’s pre-existing contractual
      obligations to Third Parties, Licensee shall have the right to prepare,
      prosecute and maintain any such application or right that is relevant to
      the Field in Licensor’s name and at Licensee’s expense; provided
      that,
      Licensor’s abandonment of a particular patent application in favor of a
      continuation, divisional or other substitute application shall not give
      rise to the foregoing Licensee step-in right.  Licensee shall
      have reasonable opportunities to participate in decisions with respect to
      the filing, prosecution and maintenance of patents and patent applications
      in the Licensed Patent Rights, to the extent such decisions are material
      to the protection of Licensed Products in the Field.  Licensor
      shall consider in good faith any comments timely provided by Licensee with
      respect to the filing, prosecution and maintenance of patents and patent
      applications in the Licensed Patent Rights, to the extent such comments
      are relevant to Licensed Products in the
Field.

            

    

     

    
      	
              7.2

            	
              In
      the event that Licensor advises Licensee in writing that it has determined
      to abandon, any patent application or issued patent licensed under this
      Agreement, and Licensee thereafter exercises its step-in rights with
      respect to the preparation, prosecution and maintenance thereof as set
      forth in Section 7.1 above, Licensee’s license under such abandoned
      Licensed Patent Rights set forth in Section 2.1 shall convert to, and
      thereafter be, a fully paid-up, non-royalty-bearing
    license.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE
VIII

     

    PATENT
INFRINGEMENT

     

    
      	
              8.1

            	
              In
      the event that Licensee learns of the substantial infringement in the
      Field of any patent in the Licensed Patent Rights, Licensee shall so
      notify Licensor, in writing, and shall provide Licensor with evidence of
      such infringement to the extent reasonably available to Licensee (such
      notice is hereinafter referred to as an “Infringement
      Notice”).   Licensor shall have the right, but not
      the obligation, to prosecute at its own expense the alleged infringement
      described in an Infringement Notice; provided
      that, within thirty (30) days after receipt by Licensor of an Infringement
      Notice, Licensor shall notify Licensee, in writing, whether it intends to
      prosecute the alleged infringement described in the Infringement Notice
      (such notice is hereinafter referred to as an “Infringement
      Reply Notice”).

            

    

     

    
      	
              8.2

            	
              Licensee
      shall have the right to prosecute at its own expense any substantial
      infringement in the Field described in an Infringement Notice, and
      Licensee shall be entitled to retain any recovery obtained by such
      prosecution, including any portion of such recovery to which Licensor
      might otherwise be entitled pursuant to this Agreement,  in the
      event that:

            

    

     

    
      	
               
      

            	
              8.2.1

            	
              Licensor
      fails timely to deliver an Infringement Reply Notice to Licensee in
      response to such Infringement
Notice;

            

    

     

    
      	
               
      

            	
              8.2.2

            	
              Licensor’s
      Infringement Reply Notice indicates Licensor’s intention not to take
      reasonable actions to eliminate any substantial infringement in the Field
      described in such Infringement Notice;
or

            

    

     

    
      	
               
      

            	
              8.2.3

            	
              for
      a period greater than three (3) months after receipt of such Infringement
      Notice, Licensor has been unsuccessful in persuading the alleged infringer
      to cease and desist its substantial infringing activity in the Field and,
      as of the end of such three (3) month period, Licensor has not filed or
      has not been diligently prosecuting and enforcing an infringement
      action.

            

    

     

    
      	
              8.3

            	
              If
      either Licensor or Licensee is a necessary or indispensable party to any
      litigation or proceeding against a Third Party alleged to have
      substantially infringed any of the Licensed Patent Rights in the Field,
      the party prosecuting such action shall have the right to bring such
      litigation or proceeding in the other party’s name; provided
      that the party bringing such action shall indemnify the other party
      against any fees, expenses, damages or costs that may be incurred in
      connection with such action.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              8.4

            	
              Neither
      Licensor nor Licensee shall enter into a settlement, compromise, consent
      judgment or other voluntary final disposition of any suit in which
      substantial infringement in the Field of any of the Licensed Patent Rights
      is claimed without the prior written consent of the other party, which
      consent shall not be unreasonably withheld, conditioned or delayed; provided
      that
      such consent shall not be required if such settlement, compromise, consent
      judgment or other voluntary final disposition (i) is for monetary damages
      only, which are payable to Licensor or Licensee or are payable by the
      settling party; (ii) does not admit the invalidity, unenforceability or
      noninfringement of the Licensed Patent Rights with respect to the alleged
      substantial infringement in the Field and (iii) does not conflict with the
      rights of Licensee under this Agreement.  No settlement,
      compromise, consent judgment or other voluntary final disposition of any
      such suit may be entered into by any party to this Agreement without an
      unconditional and full release of the other party to this Agreement, and
      its Affiliates, reasonably acceptable to such party’s
    counsel.

            

    

     

    
      	
              8.5

            	
              In
      any infringement suit that a party may institute to enforce the Licensed
      Patent Rights pursuant to this Agreement, the other party shall, at the
      request and expense of the party initiating such suit, cooperate in all
      reasonable respects and shall use reasonable efforts to cause its
      employees to testify when requested and make available relevant records,
      papers, information, samples, specimens, and the like. Such participation
      shall be at the expense of the party instituting such
    action.

            

    

     

    ARTICLE
IX

     

    PROGRESS
AND ROYALTY REPORTS

     

    
      	
              9.1

            	
              On
      or before each June 30 and December 31 during the Term, Licensee shall
      submit to Licensor a semi-annual progress report describing in reasonable
      detail the activities of Licensee, its Affiliates and Sublicensees related
      to the development and testing of all Licensed Products and the status of
      governmental approvals (including applications therefor) required for
      marketing and distributing each Licensed Product as well as Licensee’s and
      its Affiliates’ and Sublicensees’ expenditures in carrying out such
      activities.  The reports shall cover activities engaged in
      during the six-month period ended, and the status of government approvals
      as of, the date of such report.  Licensee shall require its
      Affiliates and Sublicensees to provide Licensee with information regarding
      their activities and expenditures with respect to Licensed Products
      sufficient for Licensee to provide such reports to
    Licensor.

            

    

     

    
      	
              9.2

            	
              Except
      as otherwise provided in Section 9.3, within sixty (60) days after the end
      of each calendar quarter during the Term, Licensee shall submit to
      Licensor royalty reports (“Quarterly
      Royalty Reports”) describing in reasonable detail, on a Licensed
      Product-by-Licensed Product and country-by-country basis: (a) the gross
      sales of Licensed Products sold by Licensee, its Affiliates and
      Sublicensees during the most recently completed calendar quarter and
      corresponding Net Sales; (b) deductions by category from gross sales taken
      in determining such Net Sales; (c) the number of each type of Licensed
      Product sold during the most recently completed calendar quarter; and (d)
      the Royalties payable pursuant to Section 5.1 of this Agreement for the
      most recently completed calendar quarter, including any reductions and
      deductions applicable pursuant to Sections 5.1.5 and
      5.1.6.  Payment of the full amount of any Royalties or other
      payments due to Licensor for the most recently completed calendar quarter
      shall accompany each Quarterly Royalty Report.  Licensee shall
      require its Affiliates and Sublicensees to provide Licensee with
      information sufficient for Licensee to provide such reports to
      Licensor.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              9.3

            	
              Notwithstanding
      the provisions of Section 9.2, Licensee shall not be required to submit
      Quarterly Royalty Reports for any calendar quarters in which there are no
      Net Sales.  Licensee agrees to report to Licensor the date of
      the First Commercial Sale of each Licensed Product in each
      country.

            

    

     

    
      	
              9.4

            	
              If
      no sales of Licensed Products have been made during any reporting period,
      Licensee shall deliver to Licensor a statement to that
    effect.

            

    

     

    ARTICLE
X

     

    BOOKS
AND RECORDS

     

    
      	
              10.1

            	
              Licensee
      shall keep, and shall require its Affiliates and Sublicensees to keep,
      books and records accurately showing all Licensed Products manufactured,
      used, and/or sold pursuant to this Agreement. Such books and records shall
      be preserved for at least five (5) years from the date of the payment to
      which they pertain and, subject to the terms of Article XI, shall be open
      to inspection by representatives or agents of Licensor during normal
      business hours during the Term (as hereinafter defined) and for six (6)
      months thereafter and upon reasonable advance notice, but in no event more
      than once in any calendar year.

            

    

     

    
      	
              10.2

            	
              Licensor
      shall pay all fees, costs and expenses incurred by Licensor, its agents or
      representatives in connection with the inspection of Licensee’s, its
      Affiliates’ and Sublicensees’ books and records; provided
      that Licensee shall reimburse Licensor for any such fees, costs and
      expenses if, based on such inspection, Licensor correctly determines that
      the Quarterly Royalty Reports submitted to Licensor for any of the three
      most recently completed calendar years underreported, and Licensee
      underpaid, the Royalties actually due Licensor for such calendar year by
      more than five percent (5%) of the Royalties actually
  due.

            

    

     

    ARTICLE
XI

     

    CONFIDENTIALITY

     

    
      	
              11.1

            	
              During
      the Term and for five (5) years thereafter, each party shall maintain in
      confidence the Confidential Information of the other party, and shall not
      disclose, use or grant the use of the Confidential Information of the
      other party or, subject to Section 11.5, disclose the terms of this
      Agreement, except on a need-to-know basis to such party’s Affiliates or
      Sublicensees, and its and their directors, officers and employees, such
      party’s Third Party licensors of intellectual property rights
      (sub)licensed hereunder, and such party’s subcontractors, professional
      consultants, lenders, potential lenders, investors, potential investors,
      acquirors, potential acquirors, collaborators and potential collaborators,
      to the extent such disclosure is reasonably necessary in connection with
      such party’s activities as expressly authorized by this
      Agreement.  To the extent that disclosure to any person is
      authorized by this Agreement, prior to disclosure, the party shall ensure
      that such person is bound by confidentiality obligations with respect to
      Confidential Information at least as stringent as this
      Agreement.  Each party shall notify the other party promptly
      upon discovery of any unauthorized use or disclosure of the other party’s
      Confidential Information.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              11.2

            	
              Notwithstanding
      the foregoing, the confidentiality obligations of Section 11.1 shall not
      include any information that: (a) is or hereafter becomes part of the
      public domain by public use, publication, general knowledge or the like
      through no wrongful act, fault or negligence on the part of receiving
      party; (b) can be demonstrated by documentation or other competent proof
      to have been in the receiving party’s possession prior to disclosure by
      the disclosing party; (c) is subsequently received by the receiving party
      from a Third Party who is not bound by any obligation of confidentiality
      with respect to said information; (d) is generally made available to Third
      Parties by disclosing party without restriction on disclosure; or (e) is
      independently developed by or for the receiving party without reference to
      the disclosing party’s Confidential
Information.

            

    

     

    
      	
              11.3

            	
              The
      confidentiality obligations under Section 11.1 shall not apply to the
      extent that a party is required to disclose information by applicable law,
      regulation or order of a governmental agency or a court of competent
      jurisdiction, including disclosures required under rules promulgated by
      the United States Securities and Exchange Commission (the “SEC”);
      provided,
      however,
      that to the extent practicable, such party (a) shall provide advance
      written notice thereof to the other party and consult with the other party
      prior to such disclosure with respect thereto, and (b) shall provide the
      other party with reasonable assistance, as requested by the other party,
      to object to any such disclosure or to request confidential treatment
      thereof, and (c) shall take reasonable action to avoid and/or minimize the
      extent of such disclosure.

            

    

     

    
      	
              11.4

            	
              In
      addition to disclosures allowed under Section 11.2, each party may
      disclose Confidential Information belonging to the other party to the
      extent such disclosure is necessary in the following instances: (a) filing
      or prosecuting Licensed Patent Rights; (b) regulatory filings for Licensed
      Products; and (c) prosecuting or defending litigation as permitted by this
      Agreement and prosecuting or defending litigation arising under this
      Agreement.

            

    

     

    
      	
              11.5

            	
              In
      the event that this Agreement shall be included in any report, statement
      or other document filed by either party or an Affiliate of either party
      with the SEC or similar regulatory agency in a country other than the
      United States or any stock exchange, such party shall use, or shall cause
      its Affiliate, as the case may be, to use, reasonable efforts to obtain
      confidential treatment from the SEC, similar regulatory agency or stock
      exchange of any financial information or other information of a
      competitive or confidential nature, and shall include in such
      confidentiality request such provisions of this Agreement as may be
      reasonably requested by the other
party.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XII

     

    TERM
OF THE AGREEMENT

     

    Unless
otherwise terminated by operation of law or by the parties in accordance with
this Agreement, this Agreement shall be in force from the Effective Date until
the expiration of the last-to-expire Royalty Term (the “Term”).

     

    ARTICLE
XIII

     

    TERMINATION
BY LICENSOR

     

    
      	
              13.1

            	
              If
      Licensee materially breaches any term or covenant contained in this
      Agreement (a “Default”),
      including, without limitation, by (i) researching, developing or selling
      Licensed Products outside the Field or outside the Territory, (ii) failing
      to pay amounts due Licensor pursuant to Articles IV and V; or (iii)
      failing to comply with the diligence requirements of Article VI, then
      Licensor may give written notice of such Default (“Notice
      of Default”) to Licensee.  To be effective, any Notice of
      Default shall describe in reasonable detail the facts and circumstances
      giving rise to the alleged Default.  If Licensee fails to cure
      such Default within forty five (45) days after receipt of a Notice of
      Default, Licensor shall have the right to terminate this Agreement and the
      License by delivering a second written notice (“Notice
      of Termination”) to Licensee. If a Notice of Termination is
      delivered to Licensee, this Agreement shall automatically terminate as of
      the date of such Notice. Such termination shall not relieve Licensee of
      its obligation to pay any accrued Royalties or other amounts owing at the
      time of such termination and shall not impair any other accrued right of
      Licensor.

            

    

     

    
      	
              13.2

            	
              If
      Licensee becomes insolvent, makes an assignment for the benefit of
      creditors, or if voluntary or involuntary bankruptcy proceedings are
      instituted on behalf of or against Licensee or if a receiver or trustee of
      Licensee’s property is appointed, then Licensor has the right to terminate
      this License.

            

    

     

    ARTICLE
XIV

     

    TERMINATION
BY LICENSEE

     

    Licensee
has the right at any time to terminate this Agreement by giving notice, in
writing, to Licensor stating that this Agreement is terminated. Such notice
shall be effective ninety (90) days after the effective date of such
notice.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XV

     

    EFFECT
OF TERMINATION, DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION

     

    
      	
              15.1

            	
              If
      this Agreement is terminated by Licensor pursuant to Article XIII or is
      terminated by Licensee pursuant to Article XIV, all licenses granted by
      Licensor to Licensee hereunder shall terminate and revert to Licensor and
      Licensee shall promptly return to Licensor all relevant records, materials
      and Confidential Information provided by Licensor concerning the Licensed
      Patent Rights, Technology or Licensed Products in the possession or
      control of Licensee, its Affiliates or, subject to Section 15.3, its
      Sublicensees.  Notwithstanding the foregoing, Licensee shall be
      permitted to maintain one (1) copy of all records, materials and
      Confidential Information in its legal files solely for monitoring its
      compliance with the terms of this Agreement and shall not be required to
      delete or destroy digital
materials.

            

    

     

    
      	
              15.2

            	
              If
      this Agreement is terminated by Licensor pursuant to Article XIII or is
      terminated by Licensee pursuant to Article XIV, and Licensor and Licensee,
      or its Affiliates, are able to determine commercially reasonable terms for
      the assignments and grants described below, Licensee, or its Affiliates,
      shall:

            

    

     

    
      	
               
      

            	
              15.2.1

            	
              assign
      and surrender to Licensor all regulatory approvals, regulatory dossiers
      and regulatory materials for all Licensed Products.  If
      Licensee, or its Affiliates, agree to assign and surrender such
      information to Licensor, Licensee, or its Affiliates, shall take all
      actions reasonably necessary to timely effect the transfer of each such
      items to Licensor, including, without limitation, by making such filings
      as may be required with regulatory authorities and other governmental
      authorities in the Territory that may be necessary to record such
      assignment or effect such transfer.

            

    

     

    
      	
               
      

            	
              15.2.2

            	
              assign
      to Licensor, to the extent assignable and at Licensor’s request,
      Licensee’s, or its Affiliates’, rights in any or all Third Party
      agreements for licenses, services or supplies necessary for the
      development or commercialization of all Licensed Products, including
      without limitation, any agreements with a Third Party regarding the
      manufacture of Licensed Products.  Licensor and Licensee hereby
      acknowledge and agree that any assignment shall be limited by the rights
      and conditions contained in the Third Party agreements.  To the
      extent that any Third Party agreement is not assignable by Licensee, or
      its Affiliates, then such agreement will not be assigned, and upon the
      request of Licensor, Licensee, or its Affiliates, will cooperate in good
      faith and use commercially reasonable efforts to allow Licensor to obtain
      and to enjoy the benefits of such agreement in the form of a license or
      other right to the extent held by Licensee, or its Affiliates, subject to
      such Third Party’s rights

            

    

     

    
      	
               
      

            	
              15.2.3

            	
              grant
      a license to Licensor, including the right to grant and authorize the
      grant of sublicenses, under any patent rights and know-how owned or
      controlled by Licensee, or its Affiliates, to make, have made, use, offer
      for sale, sell and import Licensed
Products.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              15.3

            	
              In
      the event of a termination pursuant to Article XIII that is not based on
      any failure by the Sublicensee to comply with relevant terms of this
      Agreement, the Sublicensee shall be entitled to retain its Sublicense
      subject to the Sublicensee’s continued performance of all obligations
      under such Sublicense and the Sublicensee’s performance of all obligations
      of Licensee under this Agreement with respect to the rights granted under
      the Sublicense, including without limitation all reporting and payment
      obligations hereunder with respect to the rights granted under the
      Sublicense.  For the avoidance of doubt, Licensor shall not have
      any obligation to assume or perform any of Licensee’s obligations under
      any such continuing Sublicense.

            

    

     

    
      	
              15.4

            	
              For
      a period of six (6) months following the termination of this Agreement,
      Licensee, or its Affiliates, shall have the right to sell all previously
      made or partially made Licensed Products; provided, that, Licensee shall
      pay Royalties on such sales and shall provide reports in accordance with
      Section 9.2 with respect to such
sales.

            

    

     

    
      	
              15.5

            	
              ANY
      LICENSE OR ASSIGNMENT, AND THE ASSOCIATED PATENT RIGHTS, GRANTED BY
      LICENSEE, OR ITS AFFILIATES, TO LICENSOR ARE PROVIDED WITHOUT WARRANTY OF
      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OR,
      EXCEPT AS EXPRESSLY PROVIDED IN SUCH LICENSE OR ASSIGNMENT, ANY OTHER
      WARRANTY, EXPRESS OR IMPLIED.

            

    

     

    
      	
              15.6

            	
              IN
      NO EVENT WILL LICENSEE, OR ITS AFFILIATES, BE LIABLE FOR ANY INCIDENTAL,
      SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE GRANTING OF ANY
      LICENSE OR ASSIGNMENT, OR THE USE OF THE ASSOCIATED PATENT RIGHTS, FROM
      LICENSEE, OR ITS AFFILIATES, TO
LICENSOR.

            

    

     

    
      	
              15.7

            	
              The
      rights and obligations set forth in Articles X, XI, XV, XVII, XVIII, XIX
      and XXIII  of this Agreement shall survive the termination
      hereof.

            

    

     

    ARTICLE
XVI

     

    PATENT
MARKING

     

    Licensee
shall mark, and cause its Affiliates and Sublicensees to mark, all Licensed
Products made, used or sold pursuant to this Agreement, or their containers, in
accordance with the applicable patent marking laws in the jurisdictions in which
such Licensed Product is sold.

     

    ARTICLE
XVII

     

    USE
OF NAMES AND TRADEMARKS

     

    Nothing
contained in this Agreement shall be construed as conferring any right to use in
advertising, publicity, or other promotional activities any name, trade name,
trademark, or other designation of either party hereto or either party’s
employees (including contraction, abbreviation or simulation of any of the
foregoing).  Notwithstanding the foregoing, the parties shall issue a
mutually agreed joint press release upon the execution of this Agreement, and
Licensor shall be entitled to publicly announce the receipt by Licensor of the
milestone payments set forth in Section 5.2.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XVIII

     

    WARRANTY
DISCLAIMERS

     

    
      	
              18.1

            	
              THIS
      LICENSE AND THE ASSOCIATED PATENT RIGHTS ARE PROVIDED WITHOUT WARRANTY OF
      MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OR,
      EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, ANY OTHER WARRANTY,
      EXPRESS OR IMPLIED.

            

    

     

    
      	
              18.2

            	
              IN
      NO EVENT WILL LICENSOR OR LICENSEE BE LIABLE FOR ANY INCIDENTAL, SPECIAL
      OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS LICENSE OR THE
      USE OF LICENSED PRODUCTS OR THE USE OR THE PRACTICE OF LICENSED
      METHODS.

            

    

     

    ARTICLE
XIX

     

    REPRESENTATIONS,
WARRANTIES, COVENANTS AND INDEMNIFICATION

     

    
      	
              19.1

            	
              Licensor
      represents and warrants to Licensee as of the Effective Date
      that:

            

    

     

    
      
        	  	
                19.1.1

              	
                it
      has the necessary right, title and power to grant the License and other
      licenses and rights granted hereunder to
  Licensee;

              

      

    

     

    
      	 	
              
                19.1.2

              

            	
              
                it
      has not granted any option, license, right or interest in or to the
      Licensed Patent Rights in the Field in the Territory and the execution and
      delivery of this Agreement and the performance of its obligations
      hereunder do not violate or breach any other agreement to which Licensor
      is bound;

              

            

    

     

    
      	  	
              
                19.1.3

              

            	
              
                to
      the best of Licensor’s knowledge, no claim has been made alleging that any
      Licensed Product in the Field in the Territory infringes or otherwise
      violates any intellectual property or proprietary right of any Third
      Party;

              

            

    

     

    
      	  	
              
                19.1.4

              

            	
              
                to
      the best of Licensor’s knowledge, no Person (excluding, for this purpose,
      Licensee or its Affiliates) is infringing the Licensed Patent Rights in
      the Field in the Territory;

              

            

    

     

    
      	  	
              
                19.1.5

              

            	
              
                the
      true inventors of the subject matter claimed are named in the patents and
      patent applications within the Licensed Patent Rights, and all such
      inventors have irrevocably assigned all their rights and interests therein
      to Licensor; and

              

            

    

     

    
      	  	
              
                19.1.6

              

            	
              
                no
      patent application within the Licensed Patent Rights is the subject of any
      pending interference, opposition, cancellation, protest or other challenge
      or adversarial proceeding.

              

            

    

     

    
      	
              19.2

            	
              Licensor
      shall indemnify, hold harmless and defend, Licensee, its officers,
      directors, employees, agents, representatives, Affiliates and Sublicensees
      (collectively, “Licensee
      Indemnitees”) from and against any liabilities, claims, suits,
      losses, damages, costs, fees, and expenses (collectively, “Claims”)
      resulting from or arising out of any breach of this Agreement by
      Licensor.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              19.3

            	
              A
      Licensee Indemnitee shall promptly notify Licensor of any Claim with
      respect to which such Licensee Indemnitee is seeking indemnification
      hereunder and permit Licensor, at Licensor's cost, to defend against such
      Claim, and shall reasonably cooperate in the defense
      thereof.  Neither Licensor nor Licensee Indemnitees shall enter
      into, or permit, any settlement of any Claim without the express written
      consent of the other, which consent shall not be unreasonably withheld,
      conditioned or delayed. Each Licensee Indemnitee may, at its option and
      expense, have its own counsel participate in any proceeding which is under
      the direction of Licensor and will reasonably cooperate with Licensor or
      its insurer in the disposition of any such matter; provided,
      that, if Licensor shall not defend such Claim, such Licensee Indemnitee
      shall have the right to defend such Claim on its own behalf and recover
      from Licensor all reasonable attorneys' fees and expenses incurred by it
      during the course of such defense.

            

    

     

    
      	
              19.4

            	
              Licensee
      shall indemnify, hold harmless and defend Licensor, its officers,
      directors employees, agents, representatives and Affiliates (collectively,
      “Licensor
      Indemnitees”) from and against any and all Claims resulting from or
      arising out of any breach of this Agreement by Licensee or resulting from
      any Licensed Product developed, manufactured and/or commercialized by
      Licensee, its Affiliates and/or Sublicensees, including without limitation
      any Claims brought by Third Parties against any Licensor Indemnitee based
      on such development, manufacture or
  commercialization.

            

    

     

    
      	
              19.5

            	
              A
      Licensor Indemnitee shall promptly notify Licensor of any Claim with
      respect to which such Licensor Indemnitee is seeking indemnification
      hereunder and permit Licensee, at Licensee's cost, to defend against such
      Claim, and shall reasonably cooperate in the defense thereof. Neither
      Licensee nor Licensor Indemnitees shall enter into, or permit, any
      settlement of any Claim without the express written consent of the other,
      which consent shall not be unreasonably withheld, conditioned or delayed.
      Each Licensor Indemnitee may, at its option and expense, have its own
      counsel participate in any proceeding which is under the direction of
      Licensee and will cooperate with Licensee or its insurer in the
      disposition of any such matter; provided,
      that if Licensee shall not defend such Claim, such Licensor Indemnitee
      shall have the right to defend such Claim on its own behalf and recover
      from Licensee all reasonable attorneys' fees and expenses incurred by it
      during the course of such defense.

            

    

     

    
      	
              19.6

            	
              Licensee
      shall use reasonable commercial efforts to insure its activities in
      connection with the work under this Agreement and obtain, keep in force
      and maintain Comprehensive or Commercial Form General Liability Insurance
      (contractual liability included) with limits as
  follows:

            

    

     

    
      
        	  	
                19.6.1

              	
                each
      occurrence        ########*

              

      

    

     

    
      
        

      

      
        
          *
######## = Material omitted pursuant to a request for Confidential Treatment and
filed separately with the Commission on the date of filing of this Form
8-K.

        

      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      
        	  	
                19.6.2

              	
                products/completed
      operations aggregate     ########*

              

      

    

     

    
      	  	
              
                19.6.3

              

            	
              
                general
      aggregate (commercial form only)      ########

              

            

    

     

    
      	
              19.7

            	
              Licensee
      shall furnish Licensor with certificates of insurance evidencing
      compliance with Section 19.6. Licensee shall not be required to insure its
      activities relative to the products’ liability risks until commencing use
      of Licensed Products in human subjects.  Such insurance
      shall:

            

    

     

    
      	
               
      

            	
              19.7.1

            	
              provide
      for thirty (30) day advance written notice to Licensor of any
      modification;

            

    

     

    
      	  	
              19.7.2

            	
              indicate
      that Licensor has been endorsed as an additional Insured under the
      insurance policies referred to under Paragraph 19.6;
  and

            

    

     

    
      	  	
              19.7.3

            	
              include
      a provision that the coverages will be primary and will not participate
      with nor will be excess over any valid and collective insurance or program
      of self-insurance carried or maintained by
  Licensor.

            

    

     

    
      	
              19.8

            	
              Licensee
      shall maintain the insurance policies required by this Article XIX during
      the Term and, if applicable, thereafter during the period in which any
      product, process, or service, relating or developed pursuant to this
      Agreement is being commercially distributed or sold by Licensee or an
      Affiliate of Licensee.

            

    

     

    
      	
              19.9

            	
              Licensee’s
      obligations under this Agreement, including it indemnification obligations
      under this Article XIX, shall not in any manner be limited by the limits
      of any insurance policy maintained by Licensee pursuant to this Article
      XIX.

            

    

     

    
      	
              19.10

            	
              Licensor
      shall use reasonable commercial efforts to insure its activities in
      connection with the work under this Agreement and obtain, keep in force
      and maintain Comprehensive or Commercial Form General Liability Insurance
      (contractual liability included) with limits of at least ######## for each
      occurrence and ######## in the aggregate.  Licensor shall
      maintain the insurance policies required by this Article XIX during the
      Term.

            

    

     

    ARTICLE
XX

     

    NOTICES

     

    All
notices or other communications required or permitted hereunder shall be in
writing and shall be deemed given, submitted or delivered (i) when delivered
personally or by private courier, (ii) when actually delivered by registered or
certified United States mail, return receipt requested, or (iii) when sent by
facsimile transmission (provided, that it is confirmed by a means specified in
clause (i) or (ii)), to the following address, or to such other address as such
party may indicate by a notice delivered to the other party hereto:

     

    
      
        

      

      
        
          *
######## = Material omitted pursuant to a request for Confidential Treatment and
filed separately with the Commission on the date of filing of this Form
8-K.

        

      

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    If to
Licensee:

     

    Neurologix,
Inc.

    One
Bridge Plaza

    Fort Lee,
New Jersey 07024

    USA

    Attention:
Marc Panoff

    Fax
Number: (201) 592-0366

     

    With a
copy to:

     

    Katten
Muchin Rosenman LLP

    575
Madison Avenue

    New York,
New York 10022

    USA

    Attention:
Evan L. Greebel, Esq.

    Fax
Number: (212) 940-8776

     

     

    If to
Licensor:

     

    Aegera
Therapeutics Inc.

    810
chemin du Golf

    Ile des
Soeurs

    Québec
H3E 1A8

    Canada                      

    Attn:  President
and Chief Executive Officer

    Fax
Number:  (514) 288-9280

     

    With a
copy to:

     

    WilmerHale

    60 State
Street

    Boston,
Massachusetts 02109

    USA

    Attention:  Steven
D. Barrett, Esq.

    Fax
Number (617) 526-5000

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XXI

     

    ASSIGNABILITY

     

    
      	
              21.1

            	
              This
      Agreement and all of the provisions hereof shall be binding upon and inure
      to the benefit of the parties hereto and their respective successors and
      permitted assigns.  This Agreement and the rights and duties
      hereunder may not be assigned by either party without the prior written
      consent of the other, which consent will not be unreasonably
      withheld.  Notwithstanding the foregoing, either party may
      assign this License Agreement without the consent of the other party to
      (i) an Affiliate; (ii) a successor-in-interest in the event of a merger or
      consolidation; (iii) a purchaser of a majority of the assigning party’s
      stock or substantially all of assigning party’s assets or business; or
      (iv) any limited liability company, partnership, corporation or similar
      entity in the Territory in which the assigning party has an equity or
      profits ownership or participation and as to the other owners thereof the
      assigning party controls the disposition of all rights under the License
      granted herein; provided
      that any successor-in-interest or assignee is financially solvent, validly
      existing and in good standing under the laws of its state of organization
      on the date of such assignment, and agrees to assume all of the assigning
      party’s obligations under this Agreement.  The assigning party
      shall remain primarily liable for its obligations hereunder
      notwithstanding any assignment permitted
  hereunder.

            

    

     

    
      	
              21.2

            	
              Notwithstanding
      anything contained in this Agreement to the contrary, nothing in this
      Agreement, expressed or implied, is intended to confer on any Person other
      than the parties hereto or their respective successors and permitted
      assigns any rights or remedies under or by reason of this
      Agreement.

            

    

     

    ARTICLE
XXII

     

    FURTHER
ASSURANCES

     

    From and
after the date hereof, each party shall, at any time and from time to time,
make, execute and deliver, or cause to be made, executed and delivered, for no
additional consideration but at the cost and expense of the requesting party
(excluding any internal costs incurred, such as having any of the following
reviewed by counsel) such assignments, licenses, filings and other instruments,
agreements, consents and assurances and take or cause to be taken all such
actions as the other party or its counsel may reasonably request for the
effectual consummation and confirmation of this Agreement and the transactions
contemplated hereby.

     

    ARTICLE
XXIII

     

    GOVERNING
LAWS

     

    THIS
AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, without regard or giving effect to any conflict of laws or
similar principles, but the scope and validity of any patent or patent
application shall be governed by the applicable laws of the country of such
patent or patent application.  Each of the parties hereto irrevocably
and unconditionally submits to the exclusive jurisdiction of the United States
District Court for the Southern District of New York or, if such court will not
accept jurisdiction, the Supreme Court of the State of New York, New York
County, or any court of competent civil jurisdiction sitting in New York County,
New York.  In any action, suit or other proceeding, each of the
parties hereto irrevocably and unconditionally waives and agrees not to assert
by way of motion, as a defense or otherwise any claims that it is not subject to
the jurisdiction of the above courts, that such action or suit is brought in an
inconvenient forum or that the venue of such action, suit or other proceeding is
improper.  Each of the parties hereto also agrees that any final and
unappealable judgment against a party hereto in connection with any action, suit
or other proceeding shall be conclusive and binding on such party and that such
award or judgment may be enforced in any court of competent jurisdiction, either
within or outside of the United States.  A certified or exemplified
copy of such award or judgment shall be conclusive evidence of the fact and
amount of such award or judgment.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XXIV

     

    EXPORT
CONTROL LAWS

     

    Licensee
shall observe all applicable United States and foreign laws with respect to the
transfer of Licensed Products and related technical data to foreign countries,
including, without limitation, the International Traffic in Arms Regulations
(ITAR) and the Export Administration Regulations.

     

    ARTICLE
XXV

     

    FORCE
MAJEURE

     

    The
parties to this Agreement shall be excused from any performance required
hereunder if such performance is rendered impossible or unfeasible due to any
catastrophe or other major event beyond their reasonable control, including,
without limitation, war, riot, insurrection laws, proclamations, edicts,
ordinances, regulations, strikes, lockouts or other serious labor disputes, and
floods, fires, explosions, or other natural disasters. When such events have
abated, the parties’ respective obligations hereunder shall resume.

     

    ARTICLE
XXVI

     

    MISCELLANEOUS

     

    
      	
              26.1

            	
              All
      rights and licenses granted under or pursuant to this Agreement by
      Licensor to Licensee are, and shall otherwise be deemed to be, for
      purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right
      to “intellectual property” as defined under Section 101 of the U.S.
      Bankruptcy Code. In the event of a declaration of bankruptcy by Licensor,
      the parties agree that Licensee, as licensee of such rights under this
      Agreement, shall retain and may fully exercise all of its rights and
      elections under the U.S. Bankruptcy
Code.

            

    

     

    
      	
              26.2

            	
              The
      headings of the several sections 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.

            

    

     

    
      	
              26.3

            	
              This
      Agreement may be amended, modified, superseded or cancelled, in whole or
      in part, only by a written instrument duly executed by each of the parties
      hereto.  No failure, delay or omission by any party in
      exercising any right, power or privilege hereunder shall operate as a
      waiver thereof.  Nor will any waiver on the part of either party
      of any right or privilege under this Agreement constitute a continuing
      waiver or a waiver of any other right or privilege, nor will any single or
      partial exercise of any right or privilege preclude any other or further
      exercise thereof or the exercise of any other right or privilege under
      this Agreement.  The rights and remedies herein provided shall
      be cumulative and not exclusive of any rights or remedies provided by
      law.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	
              26.4

            	
              This
      Agreement embodies the entire understanding of the parties and shall
      supersede all previous communications, representations or understandings,
      either oral or written, between the parties relating to the subject matter
      hereof.

            

    

     

    
      	
              26.5

            	
              This
      Agreement may be executed in counterparts, each of which shall be deemed
      an original and all of which shall together constitute one and the same
      instrument.

            

    

     

    
      	
              26.6

            	
              Except
      as expressly set forth herein, all expenses incurred by the parties in
      connection with this Agreement shall be borne wholly by the party
      incurring such expense.

            

    

     

    
      	
              26.7

            	
              Each
      of Licensee and Licensor acknowledges that obligations under this
      Agreement may be performed by Affiliates of the other party or, in the
      case of Licensee, by Sublicensees.

            

    

     

    
      	
              26.8

            	
              If
      any provisions contained in this Agreement are or become invalid, are
      ruled illegal by any court of competent jurisdiction or are deemed
      unenforceable under then current applicable law from time to time in
      effect during the term hereof, it is the intention of the parties that the
      remainder of this Agreement shall not be affected thereby, provided that a
      party’s rights under this Agreement are not materially affected. It is
      further the intention of the parties that in lieu of each such provision
      which is invalid, illegal, or unenforceable, there be substituted or added
      as part of this Agreement a provision which shall be as similar as
      possible in economic and business objectives as intended by the parties to
      such invalid, illegal or unenforceable, provision, but shall be valid,
      legal and enforceable.

            

    

     

    [Signature
Page Follows]

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year set forth above.

     

    
      
        	 	
                LICENSOR:

              	 
	 	 	 
	 	
                AEGERA
      THERAPEUTICS INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Donald
      Olds	 
	 	 	Name: Donald
      Olds	 
	 	 	Title: COO/CFO	 
	 	 	 	 

      

      
        	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Michael
      J. Berendt	 
	 	 	Name: Michael
      J. Berendt	 
	 	 	Title: President
      & CEO	 
	 	 	 	 
	 	 	 	 

      

      
        	 	
                LICENSEE:

              	 
	 	 	 
	 	
                NEUROLOGIX,
      INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ John
      E. Mordock	 
	 	 	Name: John
      E. Mordock	 
	 	 	Title: President
      & Chief Executive Officer	 
	 	 	 	 

      

      
        	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Marc
      L. Panoff	 
	 	 	Name: Marc
      L. Panoff	 
	 	 	Title: Chief
      Financial Officer	 
	 	 	 	 

      

       

      
        23

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