KERYX BIOPHARMACEUTICALS INC
<DOCUMENT>
<TYPE>EX-10.34
<SEQUENCE>6
<FILENAME>ex1034.htm
<TEXT>
<html>
<head>
<title>Public Health Service Patent License Agreement</title>
</head>
<body>
<p align="right"><b>Exhibit 10.34</b></p>

<p align="center"><b><font size="2" face="Times New Roman">PUBLIC HEALTH SERVICE</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">PATENT LICENSE AGREEMENT-<i>EXCLUSIVE</i></font></b></p>

<p align="center"><font size="2" face="Times New Roman">COVER PAGE</font></p>

<p><font size="2" face="Times New Roman">For PHS internal use only:</font></p>

<p style="margin-left: 50"><i><font size="2" face="Times New Roman">Patent License Number:</font></i></p>

<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 07/492,468 filed 3/13/90; &ldquo;06-Substituted Guanine
Compounds And Methods For Depleting 06-Alkylguanine-DNA Alkyltransferase Levels&rdquo; Issued 2/25/92 U.S. Pat.
5,091,430</font></p>

<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 07/616,913 filed 11/21/90; &ldquo;06-Benzylated Guanine,
Guanosine and 2&rsquo;-Deoxyguanosine Compounds Possessing 06-Alkylguanine-DNA Alkyltransferase Depleting Activity&rdquo; CIP of
&lsquo;468 issued 10/4/94 U.S. Pat. 5,352,669</font></p>

<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 07/805,634 filed 12/21/91; &ldquo;06-Substituted Guanine
Compounds And Methods For Depleting 06-Alkylguanine-DNA Alkyltransferase Levels&rdquo; DIV of &lsquo;468, issued 10/25/94 U.S. Pat.
5,358,952</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 07/875,438 filed 4/29/92; &ldquo;06-Substituted Guanine
Compounds and Methods for Depleting Derivatives 06 Alkylguanine-DNA Alkyltransferase Levels&rdquo; CIP of &lsquo;634 Abandoned
8/19/94</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 08/255,190 filed 6/7/94; &ldquo;06-Substituted Guanine
Compounds And Methods For Depleting 06-Alkylguanine-DNA Alkyltransferase&rdquo; CIP of &lsquo;438, and &lsquo;913 issued 11/25/97
U.S. Pat. 5691,307.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 08/283,953 filed 8/1/94; &ldquo;Substituted 06-Benzylguanines
And 6(4)-Benzyloxpyrimidines&rdquo; issued 6/11/96 U.S. Pat. 5,525,606, and PCT/US95/09702 filed 7/31/95 (based on parent
application 08/283.953.&nbsp; National Stage filed in Europe (EPO Application No. 9592837.7.&nbsp; Validated in all countries,
except Finland, under the European Patent Convention), Canada (Canadian Application No. 2,195,856), Japan (Japanese Application No.
506694/1996), Australia (Australian Serial No. 32079/95, Issued Patent No. 702711) and U.S. Application No. 08/849,223, Issued
9/28/99 as U.S. Patent No. 5,958,932). &nbsp; Divisional of EP &lsquo;837.7, Application No. 01108585.9 filed 4/5/01.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 08/661,923 filed 6/11/96, issued 5/19/98 as 5,753,668;
&ldquo;Substituted Benzyloxpyrimidines and Their Inactivation of 06-Alkylguanine-DNA Alkyltransferase&rdquo; DIV of parent
application 08/283.953.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 08/927, 846 filed 9/11/97.&nbsp; Issued 6/29/99 as 5,916,894;
&ldquo;Substituted 06-Benzylguanines And 6(4) - Benzyloxpyrimidines&rdquo; DIV of parent application 08/283,953.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 08/318,238 filed 5/25/99.&nbsp; Issued 1/9/01 as 6,172,070;
&ldquo;Substituted 06-Benzylguanines And 6(4) - Benzyloxpyrimidines&rdquo; DIV of parent application 08/283.953.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application Serial No. 08/849,223 filed 7/31/95.&nbsp; Issued 9/28/99 as 5,958,932;
&ldquo;Substituted 06-Benzylguanines And 6(4) - Benzyloxpyrimidines&rdquo; CIP of parent application 08/283,953.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application No. 09/590,187, filed 6/9/00, U.S. Patent 6,303,604, issued 10/16/0l U.S.
Application Serial No. 09/333,047 filed 6/15/99 (Allowed) &ldquo;Pharmaceutical Composition Comprising
2,4-Diamino-6-Benzyloxy-Triazine And Inactivation of 06-Alkylguanine-DNA-Alkyltransferase.&rdquo;</font></p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application No. 09/333,047, filed 6/15/99, U.S. Patent 6,333,331, issued 12/25/01
&ldquo;Substituted 06-Benzylguanines.&rdquo;</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">U.S. Application No. 09/928,410; filed 8/14/01 &ldquo;Substituted 06
Benzyl-B-Aza-Guanines&rdquo; Pending.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">Licensee:&nbsp; Procept, Inc.</font> <font size="2">(formerly named Pacific
<font face="Times New Roman">Pharmaceuticals</font>, Inc.)</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">Cooperative Research and Development Agreement (CRADA) Number (if applicable):&nbsp;
#0303</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman"><i>Additional
Remarks</i>:</font></p>



<p style="margin-left: 50"><b><font size="2" face="Times New Roman">PHS</font></b><font size="2">, by executing interinstitutional agreements between the
Milton S. Hershey Medical Center of Pennsylvania State University (L-067-02/0), and the University of Chicago (L-086-02/0), has
obtained the exclusive license to, including the right to <b>Sublicense</b>, the <b>Licensed Patent Rights</b> listed in
Appendix&nbsp;A.&nbsp; Once executed, the terms and conditions of this Agreement shall supersede, and thereby terminate, the terms
and conditions of the previous license agreement between the <b>Licensee</b> and the Pennsylvania State University, made effective
on February 6, 1998</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman"><i>Public Benefit(s</i>):</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">Procept agrees that subsequent to market approval by the Food and Drug Administration
(<b>FDA</b>), to make reasonable quantities of <b>Licensed Product(s)</b> or materials produced through the use of <b>Licensed
Process(es)</b> available on a compassionate use basis, to patients, either through the patient&rsquo;s physicians) and/or the
medical center treating the patient; and Procept further agrees, after their <b>First Commercial Sale</b>, and to develop written
educational materials (e.g., brochures, advertisements, etc.) directed to patients and physicians detailing the <b>Licensed
Product(s)</b> and/or medical aspects of using 06-Benzylguanine and/or its derivatives as a therapeutic modality for the treatment
of human cancers.</font></p>



<p style="margin-left: 50"><font size="2" face="Times New Roman">This Patent License <b>Agreement</b>, hereinafter referred to as the
&ldquo;<b>Agreement</b>&rdquo;, consists of this Cover Page, an attached <b>Agreement</b>, a Signature Page, Appendix&nbsp;A (List
of Patent(s) and/or Patent Application(s)), Appendix&nbsp;B (Fields of Use and Territory), Appendix&nbsp;C (Royalties),
Appendix&nbsp;D (Modifications), Appendix&nbsp;E (<b>Benchmarks</b>), Appendix&nbsp;F (<b>Commercial Development Plan</b>),
Appendix&nbsp;G (<b>Sublicense Agreement</b> ), Appendix&nbsp;H (Amendment to said <b>Sublicense Agreement</b>) and Appendix&nbsp;I
(<b>Release Agreement</b> and its Relevant Exhibits).&nbsp; The <b>Parties</b> to this Agreement are:</font></p>



<table border="1" cellpadding="7" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="689">
  <tr>
    <td width="89" valign="top" style="border-style: none; border-width: medium">



<p style="margin-left: 50"><font size="2" face="Times New Roman">1)</font></p>



    </td>
    <td width="597" style="border-style: none; border-width: medium"><font size="2" face="Times New Roman">The National
Institutes of Health (&ldquo;NIH&rdquo;), the Centers for Disease Control and Prevention (&ldquo;CDC&rdquo;), or the Food and Drug
Administration (&ldquo;<b>FDA</b>&rdquo;), hereinafter singly or collectively referred to as &ldquo;<b>PHS</b>&rdquo;, agencies of
the United States Public Health Service within the Department of Health and Human Services (&ldquo;<b>DHHS</b>&rdquo;);
and</font></td>
  </tr>
  <tr>
    <td width="89" valign="top" style="border-style: none; border-width: medium">



<p style="margin-left: 50"><font size="2" face="Times New Roman">2)</font></p>



    </td>
    <td width="597" style="border-style: none; border-width: medium"><font size="2" face="Times New Roman"> <b>Procept,
Inc.</b>, having offices at the address indicated on the Signature Page, hereinafter referred to as
&ldquo;<b>Licensee</b>&rdquo;.</font></td>
  </tr>
</table>
&nbsp;<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>

<p align="center"><b><font size="2" face="Times New Roman">PHS PATENT LICENSE AGREEMENT-<i>EXCLUSIVE</i></font></b></p>





<p><b><font size="2" face="Times New Roman">PHS </font></b><font size="2">and <b>Licensee</b> agree as follows:</font></p>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15"><font size="2" face="Times New Roman">
    l.</font></td>
    <td style="border-style: none; border-width: medium" width="674" colspan="2"><font size="2" face="Times New Roman">
<u>BACKGROUND</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">1.01</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">In the course of fundamental research
programs at the <b>PHS</b>, Robert C. Moschel (<b>PHS</b>), Anthony Pegg (Milton S. Hershey Medical Center of Pennsylvania State
University, (<b>PSU</b>)), and Eileen Dolan (Milton S. Hershey Medical of Pennsylvania State University Center and the University
of Chicago (<b>UC</b>), whereas <b>UC</b>, under an agreement with its affiliated corporation, ARCH Development Corporation has the
right to license Licensed Patents and other intellectual property owned by ARCH ), made or reduced to practice certain inventions
which are included within the <b>Licensed Patent Rights</b>, as defined in Paragraph 2.06 below.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    1.02</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman"> <b>PHS</b>, by executing
interinstitutional agreements with <b>PSU</b> (L-067-02/0), and <b>UC</b> (L-086-02/0), has obtained the exclusive license,
including the right to sublicense, the <b>Licensed Patent Rights</b> listed in Appendix&nbsp;A.&nbsp; Once executed, the terms and
conditions of this <b>Agreement</b> shall supersede, and thereby terminate the terms and conditions of the previous license
agreement between Pacific Pharmaceuticals, Inc. (now <b>Procept, Inc.</b>) and <b>PSU</b>, made effective on February 6, 1998,
<i>provided that,</i> the sublicense agreement, including its associated amendment, by and between <b>AOI Pharmaceuticals, Inc.</b>
(&ldquo;<b>Sublicensee</b>&rdquo;) and <b>Licensee</b> made effective on October 13, 2000, and attached as Appendices G and H (such
sublicense agreement and its associated amendment, the &ldquo;<b>Sublicensee Agreement</b>&rdquo;), shall continue to remain in
full force and effect.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">1.03</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">By assignment of rights from
<b>PHS</b> employees and other inventors, <b>DHHS</b>, on behalf of the United States <b>Government</b>, owns intellectual property
rights claimed in any United States and/or foreign patent applications or patents corresponding to the assigned inventions.&nbsp;
<b>DHHS</b> also owns any tangible embodiments of these inventions actually reduced to practice by <b>PHS</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">1.04</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&nbsp;The Secretary of <b>DHHS</b> has
delegated to <b>PHS</b> the authority to enter into this <b>Agreement</b> for the licensing of rights to these
inventions.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">1.05</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&nbsp;<b>PHS</b> desires to transfer these
inventions to the private sector through commercialization licenses to facilitate the commercial development of products and
processes for public use and benefit.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">1.06</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&nbsp;<b>Licensee</b> desires to acquire
commercialization rights to certain of these inventions in order to develop processes, methods, and/or marketable products for
public use and benefit.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">2.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" colspan="2"><font size="2" face="Times New Roman">&nbsp;<u>DEFINITIONS</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    2.01 </font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">
    &#147;<b>Affiliate</b>&rdquo; means,
with respect to any organization that can exercise independent legal standing, including a corporation, association, joint venture,
partnership, trust, university, business, individual, government or political subdivision thereof (any such organization, an
&ldquo;<b>Entity</b>&rdquo;), any <b>Entity</b> that directly or indirectly controls, is controlled by, or is under common control
with such <b>Entity</b>.&nbsp; &ldquo;Control&rdquo; for this purpose shall mean control of more than fifty percent (50%) of the
voting securities of an <b>Entity</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font face="Times New Roman" size="2">2.02</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">
    &#147;<b>Benchmarks</b>&rdquo; mean
the performance milestones that are set forth in Appendix&nbsp;E.</font></td>
  </tr>
</table>



<p>&nbsp;</p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always">
<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font face="Times New Roman" size="2">2.03</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Commercial Development
Plan</b>&rdquo; means the written commercialization plan attached as Appendix&nbsp;F.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    2.04 </font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>First Commercial
Sale</b>&rdquo; means the initial transfer by or on behalf of <b>Licensee</b> or its sublicensees of <b>Licensed Products</b> or
the initial practice of a <b>Licensed Process</b> by or on behalf of <b>Licensee</b> or its sublicensees in exchange for cash or
some equivalent to which value can be assigned for the purpose of determining <b>Net Sales</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    2.05 </font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Government</b>&rdquo; means
the <b>Government</b> of the United States of America.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    2.06</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Licensed Fields of
Use</b>&rdquo; means the fields of use identified in Appendix&nbsp;B.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    2.07</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Licensed Patent
Rights</b>&rdquo; shall mean:</font><ol style="font-size: 10pt" type="a">
      <li>



<p style="margin-top: 10"><font size="2" face="Times New Roman">Patent
applications (including provisional patent applications and PCT patent
applications) and/or patents listed in Appendix&nbsp;A, all divisions and
continuations of these applications, all patents issuing from such applications,
divisions, and continuations, and any reissues, reexaminations, and extensions
of all such patents;</font></p>



      </li>
      <li>



<p style="margin-top: 10"><font size="2" face="Times New Roman">to the extent that
the following contain one or more claims directed to the invention or inventions disclosed in a) above:&nbsp; i)
continuations-in-part of a) above; ii) all divisions and continuations of these continuations-in-part; iii) all patents issuing
from such continuations-in-part, divisions, and continuations; iv) priority patent applications) of a) above; and v) any reissues,
reexaminations, and extensions of alt such patents;</font></p>



      </li>
      <li>



<p style="margin-top: 10"><font size="2" face="Times New Roman">to the extent
that the following contain one or more claims directed to the invention or
inventions disclosed in a) above:&nbsp; all counterpart foreign and U.S. patent
applications and patents to a) and b) above, including those listed in
Appendix&nbsp;A.</font></p>



      </li>
    </ol>



<p style="margin-top: 10"> <b><font size="2">Licensed
Patent Rights </font></b><font size="2">shall not include b) or c) above to the extent that they contain one or more claims directed
to new matter which is not the subject matter disclosed in a) above.</font></p>



    </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font size="2">&nbsp;</font><font size="2" face="Times New Roman">2.08</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Licensed
Process(es)</b>&rdquo; means processes which, in the course of being practiced would be within the scope of one or more claims of
the <b>Licensed Patent Rights</b> that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable
judgment of a court of competent jurisdiction.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font size="2">&nbsp;</font><font size="2" face="Times New Roman">2.09</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Licensed
Product(s)</b>&rdquo; means tangible materials which, in the course of manufacture, use, sale, or importation would be within the
scope of one or more claims of the <b>Licensed Patent Rights</b> that have not been held unpatentable, invalid or unenforceable by
an unappealed or unappealable judgment of a court of competent jurisdiction.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font size="2">&nbsp;</font><font size="2" face="Times New Roman">2.10 </font>
    </td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Licensed
Territory</b>&rdquo; means the geographical area identified in Appendix&nbsp;B.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font size="2">&nbsp;</font><font size="2" face="Times New Roman">2.11</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Net Sales</b>&rdquo; means
the total gross receipts actually received for sales of <b>Licensed Products</b> or practice of <b>Licensed Processes</b> by
<b>Licensee</b>, any of its <b>Affiliates</b>, its Sublicensee or any other sublicensee(s), and from leasing, renting, or otherwise
making <b>Licensed Products</b> available to others without sale or other dispositions, whether invoiced or not, less returns and
allowances, packing costs, insurance costs, freight out, taxes or excise duties imposed on the transaction (if separately
invoiced), and wholesaler and cash discounts in amounts customary in the trade to the extent actually granted.&nbsp; No deductions
shall be made for commissions paid to individuals, whether they be with independent sales agencies or regularly employed by
<b>Licensee</b>, <b>Sublicensee</b> or sublicensee(s), and on its payroll, or for the cost of collections.</font></td>
  </tr>
</table>
<hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<p>&nbsp;</p>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font size="2">&nbsp;</font><font size="2" face="Times New Roman">2.12</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Practical
Application</b>&rdquo; means to manufacture in the case of a composition or product, to practice in the case of a process or
method, or to operate in the case of a machine or system; and in each case, under such conditions as to establish that the
invention is being utilized and that its benefits are to the extent permitted by law or <b>Government</b> regulations available to
the public on reasonable terms.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    2.13</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">&ldquo;<b>Research License</b>&rdquo;
means a nontransferable, nonexclusive license to make and to use the <b>Licensed Products</b> or <b>Licensed Processes</b> as
defined by the <b>Licensed Patent Rights</b> for purposes of research and not for purposes of commercial manufacture or
distribution or in lieu of purchase.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2">
    <td style="border-style: none; border-width: medium" width="15" valign="top">
    <font size="2" face="Times New Roman">
    3.</font></td>
    </font>
    <td style="border-style: none; border-width: medium" width="674" valign="top" colspan="2">
    <font size="2"> <u>GRANT OF
RIGHTS</u></font></td>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    3.01</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman"> <b>PHS</b> hereby grants and
<b>Licensee</b> accepts, subject to the terms and conditions of this <b>Agreement</b>, an exclusive license under the <b>Licensed
Patent Rights</b> in the <b>Licensed Territory</b> to make and have made, to use and have used, to sell and have sold, to offer to
sell, and to import any <b>Licensed Products</b> in the <b>Licensed Fields of Use</b> and to practice and have practiced any
<b>Licensed Processes</b> in the <b>Licensed Fields of Use</b>.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    3.02</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">This Agreement confers no license or
rights by implication, estoppel, or otherwise under any patent applications or patents of <b>PHS</b> other than <b>Licensed Patent
Rights</b> regardless of whether such patents are dominant or subordinate to <b>Licensed Patent Rights</b>.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15" valign="top"><font size="2" face="Times New Roman">4.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" colspan="2"><font size="2" face="Times New Roman">
<u>SUBLICENSING</u></font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    4.01</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">Upon written approval by <b>PHS</b>,
<b>Licensee</b> and <b>Sublicensee</b> may enter into sublicensing agreements under the <b>Licensed Patent Rights</b>.&nbsp;
Notwithstanding anything else stated herein, <b>PHS</b> acknowledges that this <b>Agreement</b> does not terminate, alter or
supersede the <b>Sublicensee Agreement</b> that existed and continues to exist between <b>Licensee</b> and <b>Sublicensee</b>, and
listed in Appendices G and H respectively, pursuant to Section 1.02 of this <b>Agreement</b>.&nbsp; <b>PHS</b> hereby approves the
<b>Sublicensee Agreement</b> in the event of termination of this <b>Agreement</b> under Article 13.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    4.02</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees that any
sublicenses granted by it shall provide that the obligations to <b>PHS</b> of Paragraphs 5.0l-5.04, 8.01, 9.02, 10.01, 10.02,
12.05, and 13.07-13.09 of this <b>Agreement</b> shall be binding upon the sublicensee(s) as if it were a party to this
<b>Agreement</b>.&nbsp; <b>Licensee</b> further agrees to attach copies of these Paragraphs to all sublicense
agreements.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    4.03</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman">Any sublicenses granted by
<b>Licensee</b> shall provide for the termination of the sublicense or the conversion to a license directly between such
sublicensee(s) and <b>PHS</b>, at the option of the <b>Sublicensee</b>, upon termination of this <b>Agreement</b> under Article 13,
and shall be under substantially similar terms of this <b>Agreement</b>, wherein all considerations are in cash.&nbsp; Such
conversion is subject to <b>PHS</b> approval and contingent upon acceptance by the <b>Sublicensee</b> of the remaining provisions
of this <b>Agreement</b>.</font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    4.04</font></td>
    <td style="border-style: none; border-width: medium" width="648"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to forward to
<b>PHS</b> a copy of each fully executed sublicense agreement postmarked within thirty (30) days of the execution of such
agreement.&nbsp; To the extent permitted by law, <b>PHS</b> agrees to maintain each such sublicense agreement in
confidence.</font></td>
    </font>
  </tr>
  </table>



<p>&nbsp;</p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15">
    <font size="2" face="Times New Roman">
    5.</font></td>
    <td style="border-style: none; border-width: medium" width="951" valign="top" colspan="3">
    <font size="2" face="Times New Roman"> <u>STATUTORY AND PHS REQUIREMENTS AND
    RESERVED GOVERNMENT RIGHTS</u></font></td>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font size="2" face="Times New Roman">
    5.01</font></td>
    <td style="border-style: none; border-width: medium" width="1" valign="top"><font size="2" face="Times New Roman">
    (a)</font></td>
    </font>
    <td style="border-style: none; border-width: medium" width="924" valign="top"><font size="2" face="Times New Roman"> <b>PHS</b> reserves on behalf of the <b>Government</b> an
irrevocable, nonexclusive, nontransferable, royalty-free license for the practice of all inventions licensed under the <b>Licensed
Patent Rights</b> throughout the world by or on behalf of the <b>Government</b> and on behalf of any foreign government or
international organization pursuant to any existing or future treaty or agreement to which the <b>Government</b> is a
signatory.&nbsp; Prior to the <b>First Commercial Sale</b>, <b>Licensee</b> agrees to provide <b>PHS</b> reasonable quantities of
<b>Licensed Products</b> or materials made through the <b>Licensed Processes</b> for <b>PHS</b> research use.</font></td>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="1" valign="top"><font size="2" face="Times New Roman">
    (b)</font></td>
    </font>
    <td style="border-style: none; border-width: medium" width="924" valign="top"><font size="2" face="Times New Roman">In the event that
<b>Licensed Patent Rights</b> are Subject Inventions made under a Cooperative Research and Development Agreement (CRADA),
<b>Licensee</b> grants to the <b>Government</b>, pursuant to 15 U.S.C. 3710a(b)(1)(A), a nonexclusive, nontransferable,
irrevocable, paid-up license to practice <b>Licensed Patent Rights</b> or have <b>Licensed Patent Rights</b> practiced throughout
the world by or on behalf of the <b>Government</b>.&nbsp; In the exercise of such license, the <b>Government</b> shall not publicly
disclose trade secrets or commercial or financial information that is privileged or confidential within the meaning of 5 U.S.C.
552(b)(4) or which would be considered as such if it had been obtained from a non-Federal party.&nbsp; Prior to the <b>First
Commercial Sale</b>, <b>Licensee</b> agrees to provide <b>PHS</b> reasonable quantities of <b>Licensed Products</b> or materials
made through the <b>Licensed Processes</b> for <b>PHS</b> research use.</font></td>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    5.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" colspan="2"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees that products
used or sold in the United States embodying <b>Licensed Products</b> or produced through use of <b>Licensed Processes</b> shall be
manufactured substantially in the United States, unless a written waiver is obtained in advance from <b>PHS</b>.</font></td>
    </font>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    5.03</font></td>
    <td style="border-style: none; border-width: medium" width="648" colspan="2"><font size="2" face="Times New Roman"> <b>Licensee</b> acknowledges that
<b>PHS</b> may enter into future Cooperative Research and Development <b>Agreements</b> (CRADAs) under the Federal Technology
Transfer Act of 1986 that relate to the subject matter of this <b>Agreement</b>.&nbsp; <b>Licensee</b> agrees not to unreasonably
deny requests for a <b>Research License</b> from such future collaborators with <b>PHS</b> when acquiring such rights is necessary
in order to make a Cooperative Research and Development <b>Agreement</b> (CRADA) project feasible.&nbsp; <b>Licensee</b> may
request an opportunity to join as a party to the proposed Cooperative Research and Development <b>Agreement</b> (CRADA).</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top"><font size="2" face="Times New Roman">
    5.04</font></td>
    <td style="border-style: none; border-width: medium" width="24" valign="top">
    <font face="Times New Roman" size="2">(a)</font></td>
    <td style="border-style: none; border-width: medium" width="624"><font size="2" face="Times New Roman">&nbsp;In addition to the reserved license of Paragraph 5.01 above,
<b>PHS</b> reserves the right to grant nonexclusive <b>Research Licenses</b> directly or to require <b>Licensee</b> to grant
nonexclusive <b>Research Licenses</b> on reasonable terms.&nbsp; The purpose of this <b>Research License</b> is to encourage basic
research, whether conducted at an academic or corporate facility.&nbsp; In order to safeguard the <b>Licensed Patent Rights</b>,
however, <b>PHS</b> shall consult with <b>Licensee</b> before granting to commercial entities a <b>Research License</b> or
providing to them research samples of materials made through the <b>Licensed Processes</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top">
    <font face="Times New Roman" size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="24" valign="top">
    <font face="Times New Roman" size="2">(b)</font></td>
    <td style="border-style: none; border-width: medium" width="624"><font size="2" face="Times New Roman">In exceptional
circumstances, and in the event that <b>Licensed Patent Rights</b> are Subject Inventions made under a Cooperative Research and
Development <b>Agreement</b> (CRADA), the <b>Government</b>, pursuant to 15 U.S.C. 3710a(b)(1)(B), retains the right to require the
<b>Licensee</b> to grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense to use <b>Licensed
Patent Rights</b> in <b>Licensee</b>&rsquo;s field of use on terms that are reasonable under the circumstances; or if
<b>Licensee</b> fails to grant such a license, the <b>Government</b> retains the right to grant the license itself.&nbsp; The
exercise of such rights by the <b>Government</b> shall only be in exceptional circumstances and only if the <b>Government</b>
determines (i) the action is necessary to meet health or safety needs that are not reasonably satisfied by <b>Licensee</b>; (ii)
the action is necessary to meet requirements for public use specified by Federal regulations, and such requirements are not
reasonably satisfied by the <b>Licensee</b>; or (iii) the <b>Licensee</b> has failed to comply with an agreement containing
provisions described in 15 U.S.C. 3710a(c)(4)(B).&nbsp; The determination made by the <b>Government</b> under this Article is
subject to administrative appeal and judicial review under 35 U.S.C. 203(2).</font></td>
  </tr>
</table>
<font size="2" face="Times New Roman">
<p>&nbsp;</p>
<hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725" height="419">
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15" height="13">
    <font size="2">6.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" colspan="2" height="13"><font size="2" face="Times New Roman"> <u>ROYALTIES
AND REIMBURSEMENT</u></font></td>
    </font>
  </tr>
  <tr>
    <font size="2" face="Times New Roman">
    <td style="border-style: none; border-width: medium" width="15" height="28">&nbsp;</td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="28">
    <font size="2">6.01</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="28"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to pay to
<b>PHS</b> a noncreditable, nonrefundable license issue royalty as set forth in Appendix&nbsp;C within thirty (30) days from the
date that this <b>Agreement</b> becomes effective.</font></td>
    </font>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="73">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="73">
    <font size="2">6.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="73"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to pay to
<b>PHS</b> a nonrefundable minimum annual royalty as set forth in Appendix&nbsp;C.&nbsp; The minimum annual royalty is due and
payable on January 1 of each calendar year and may be credited against any earned royalties due for sales made in that year.&nbsp;
The minimum annual royalty due for the first calendar year of this <b>Agreement</b> may be prorated according to the fraction of
the calendar year remaining between the effective date of this <b>Agreement</b> and the next subsequent January 1.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="13">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="13">
    <font size="2">6.03.</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="13"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to pay
<b>PHS</b> earned royalties as set forth in Appendix&nbsp;C.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="13">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="13">
    <font size="2">6.04</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="13"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to pay
<b>PHS</b> benchmark royalties as set forth in Appendix&nbsp;C.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="13">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="13">
    <font size="2">6.05</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="13"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to pay
<b>PHS</b> sublicensing royalties as set forth in Appendix&nbsp;C.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="13">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="13">
    <font size="2">6.06</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="13"><font size="2" face="Times New Roman">A patent or patent application
licensed under this <b>Agreement</b> shall cease to fall within the <b>Licensed Patent Rights</b> for the purpose of computing
earned royalty payments in any given country on the earliest of the dates that a) the application has been abandoned and not
continued, b) the patent expires or irrevocably lapses, or c) the claim has been held to be invalid or unenforceable by an
unappealed or unappealable decision of a court of competent jurisdiction or administrative agency.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">6.07</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">No multiple royalties shall be
payable because any <b>Licensed Products</b> or <b>Licensed Processes</b> are covered by more than one of the <b>Licensed Patent
Rights</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">6.08</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">On sales of <b>Licensed Products</b>
by <b>Licensee</b> or on sales made in other than an arm&rsquo;s-length transaction, the value of the <b>Net Sales</b> attributed
under this Article 6 to such a transaction shall be that which would have been received in an arm&rsquo;s-length transaction, based
on sales of like quantity and quality products on or about the time of such transaction.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">6.09</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">With regard to expenses associated
with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the <b>Licensed
Patent Rights</b> incurred by <b>PHS</b> prior to the effective date of this <b>Agreement</b>, <b>Licensee</b> shall pay to
<b>PHS</b>, as an additional royalty, within sixty (60) days of <b>PHS</b>&rsquo;s submission of a statement and request for
payment to <b>Licensee</b>, an amount equivalent to such patent expenses previously incurred by <b>PHS</b> unless such expenses are
disputed in good faith by <b>Licensee</b>, in which case the parties will attempt to resolve amicably the dispute pursuant to
paragraph 14.12.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">6.10</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">With regard to expenses associated
with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the <b>Licensed
Patent Rights</b> incurred by <b>PHS</b> on or after the effective date of this <b>Agreement</b>, <b>PHS</b>, at its sole option,
may require <b>Licensee</b>:</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    </td>
    <td style="border-style: none; border-width: medium" width="648" height="17">
    </td>
  </tr>
</table>



<p>&nbsp;</p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>
<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="32" valign="top">
    <font size="2">&nbsp;(a)</font></td>
    <td style="border-style: none; border-width: medium" width="616" height="17"><font size="2" face="Times New Roman">to pay <b>PHS</b> on an
annual basis, within sixty (60) days of <b>PHS</b>&rsquo;s submission of a statement and request for payment, a royalty amount
equivalent to all such patent expenses incurred during the previous calendar year(s); or</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="32" valign="top">
    <font size="2">&nbsp;(b)</font></td>
    <td style="border-style: none; border-width: medium" width="616" height="17"><font size="2" face="Times New Roman">to pay such expenses
directly to the law firm employed by <b>PHS</b> to handle such functions.&nbsp; However, in such event, <b>PHS</b> and not
<b>Licensee</b> shall be the client of such law firm.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">&nbsp;
    </td>
    <td style="border-style: none; border-width: medium" width="648" height="17" colspan="2"><font size="2" face="Times New Roman">In limited circumstances, <b>Licensee</b> may be given the right to assume responsibility for the preparation, filing, prosecution,
or maintenance of any patent application or patent included with the <b>Licensed Patent Rights</b>.&nbsp; In that event,
<b>Licensee</b> shall directly pay the attorneys or agents engaged to prepare, file, prosecute, or maintain such patent
applications or patents and shall provide to <b>PHS</b> copies of each invoice associated with such services as well as
documentation that such invoices have been paid.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    6.11</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17" colspan="2"><font size="2" face="Times New Roman"> <b>Licensee</b> may elect to
surrender its rights in any country of the <b>Licensed Territory</b> under any <b>Licensed Patent Rights</b> upon ninety (90) days
written notice to <b>PHS</b> and owe no payment obligation under Article 6.10 for patent-related expenses incurred in that country
after ninety (90) days of the effective date of such written notice.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;7.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="3"><font size="2" face="Times New Roman"> <u>PATENT
FILING, PROSECUTION, AND MAINTENANCE</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    7.01 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17" colspan="2"><font size="2" face="Times New Roman">Except as otherwise provided in this
Article 7, <b>PHS</b> agrees to take responsibility for, but to consult with, the <b>Licensee</b> in the preparation, filing,
prosecution, and maintenance of any and all patent applications or patents included in the <b>Licensed Patent Rights</b> and shall
furnish copies of relevant patent-related documents to <b>Licensee</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    7.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17" colspan="2"><font size="2" face="Times New Roman">Upon <b>PHS</b>&rsquo;s written
request, <b>Licensee</b> shall assume the responsibility for the preparation, filing, prosecution, and maintenance of any and all
patent applications or patents included in the <b>Licensed Patent Rights</b> and shall on an ongoing basis promptly furnish copies
of all patent-related documents to <b>PHS</b>.&nbsp; In such event, <b>Licensee</b> shall, subject to the prior approval of
<b>PHS</b>, select registered patent attorneys or patent agents to provide such services on behalf of <b>Licensee</b> and
<b>PHS</b>.&nbsp; <b>PHS</b> shall provide appropriate powers of attorney and other documents necessary to undertake such actions
to the patent attorneys or patent agents providing such services.&nbsp; <b>Licensee</b> and its attorneys or agents shall consult
with <b>PHS</b> in all aspects of the preparation, filing, prosecution and maintenance of patent applications and patents included
within the <b>Licensed Patent Rights</b> and shall provide <b>PHS</b> sufficient opportunity to comment on any document that
<b>Licensee</b> intends to file or to cause to be filed with the relevant intellectual property or patent office.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    7.03 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17" colspan="2"><font size="2" face="Times New Roman">At any time, <b>PHS</b> may provide
<b>Licensee</b> with written notice that <b>PHS</b> wishes to assume control of the preparation, filing, prosecution, and
maintenance of any and all patent applications or patents included in the <b>Licensed Patent Rights</b>.&nbsp; If <b>PHS</b> elects
to assume such responsibilities, <b>Licensee</b> agrees to cooperate fully with <b>PHS</b>, its attorneys, and agents in the
preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the <b>Licensed Patent
Rights</b> and to provide <b>PHS</b> with complete copies of any and all documents or other materials that <b>PHS</b> deems
necessary to undertake such responsibilities.&nbsp; <b>Licensee</b> shall be responsible for all costs associated with transferring
patent prosecution responsibilities to an attorney or agent of <b>PHS</b>&rsquo;s choice.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    7.04</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17" colspan="2"><font size="2" face="Times New Roman">Each party shall promptly inform the
other as to all matters that come to its attention that may affect the preparation, filing, prosecution, or maintenance of the
<b>Licensed Patent Rights</b> and permit each other to provide comments and suggestions with respect to the preparation, filing,
prosecution, and maintenance of <b>Licensed Patent Rights</b>, which comments and suggestions shall be considered by the other
party.</font></td>
  </tr>
</table>



<p>&nbsp;</p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>
<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;8.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="2"><font size="2" face="Times New Roman">
<u>RECORDKEEPING</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    8.01</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to keep
accurate and correct records of <b>Licensed Products</b> made, used, sold, or imported and <b>Licensed Processes</b> practiced
under this <b>Agreement</b> appropriate to determine the amount of royalties due <b>PHS</b>.&nbsp; Such records shall be retained
for at least five (5) years following a given reporting period and shall be available during normal business hours, and upon
reasonable written notice for inspection at the expense of <b>PHS</b>, by an accountant or other designated auditor selected by
<b>PHS</b> for the sole purpose of verifying reports and payments hereunder.&nbsp; The accountant or auditor shall only disclose to
<b>PHS</b> information relating to the accuracy of reports and payments made under this <b>Agreement</b>.&nbsp; If an inspection
shows an underreporting or underpayment in excess of five percent (5%)for any twelve (12) month period, then <b>Licensee</b> shall
reimburse <b>PHS</b> for the cost of the inspection at the time <b>Licensee</b> pays the unreported royalties, including any late
charges as required by Paragraph 9.08 of this <b>Agreement</b>.&nbsp; All payments required under this Paragraph shall be due
within thirty (30) days of the date <b>PHS</b> provides <b>Licensee</b> notice of the payment due.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">&nbsp;<font size="2" face="Times New Roman">8.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to have an
audit of sales and royalties conducted by an independent auditor at least every two (2) years if annual sales of the <b>Licensed
Product</b> or <b>Licensed Processes</b> are over two (2) million dollars.&nbsp; The audit shall address, at a minimum, the amount
of gross sales by or on behalf of <b>Licensee</b> during the audit period, terms of the license as to percentage or fixed royalty
to be remitted to the <b>Government</b>, the amount of royalty funds owed to the <b>Government</b> under this <b>Agreement</b>, and
whether the royalty amount owed has been paid to the <b>Government</b> and is reflected in the records of the
<b>Licensee</b>.&nbsp; The audit shall also indicate the <b>PHS</b> license number, product, and the time period being
audited.&nbsp; A report certified by the auditor shall be submitted promptly by the auditor directly to <b>PHS</b> on
completion.&nbsp; <b>Licensee</b> shall pay for the entire cost of the audit.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;9.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="2"><font size="2" face="Times New Roman"> <u>REPORTS ON
PROGRESS, BENCHMARKS, SALES, AND PAYMENTS</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    9.01 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">Prior to signing this
<b>Agreement</b>, <b>Licensee</b> has provided to <b>PHS</b> the <b>Commercial Development Plan</b> at Appendix&nbsp;F, under which
<b>Licensee</b> intends to bring the subject matter of the <b>Licensed Patent Rights</b> to the point of <b>Practical
Application</b>.&nbsp; This <b>Commercial Development Plan</b> is hereby incorporated by reference into this
<b>Agreement</b>.&nbsp; Based on this plan, performance <b>Benchmarks</b> are determined as specified in
Appendix&nbsp;E.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    9.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">&nbsp;<b>Licensee</b> shall provide written
annual reports on its product development progress or efforts to commercialize under the <b>Commercial Development Plan</b> for
each of the <b>Licensed Fields of Use</b> within sixty (60) days after December 31 of each calendar year.&nbsp; These progress
reports shall include, but not be limited to:&nbsp; progress on research and development, status of applications for regulatory
approvals, manufacturing, sublicensing, marketing, importing, and sales during the preceding calendar year, as well as plans for
the present calendar year.&nbsp; <b>PHS</b> also encourages these reports to include information on any of <b>Licensee</b>&rsquo;s
public service activities that relate to the <b>Licensed Patent Rights</b>.&nbsp; If reported progress differs from that projected
in the <b>Commercial Development Plan</b> and <b>Benchmarks</b>, <b>Licensee</b> shall explain the reasons for such
differences.&nbsp; In any such annual report, <b>Licensee</b> may propose amendments to the <b>Commercial Development Plan</b>,
acceptance of which by <b>PHS</b> may not be denied unreasonably.&nbsp; <b>Licensee</b> agrees to provide any additional
information reasonably required by <b>PHS</b> to evaluate <b>Licensee</b>&rsquo;s performance under this <b>Agreement</b>.&nbsp;
<b>Licensee</b> may amend the <b>Benchmarks</b> at any time upon written consent by <b>PHS</b>.&nbsp; <b>PHS</b> shall not
unreasonably withhold approval of any request of <b>Licensee</b> to extend the time periods of this schedule if such request is
supported by a reasonable showing by <b>Licensee</b> of diligence in its performance under the <b>Commercial Development Plan</b>
and toward bringing the <b>Licensed Products</b> to the point of <b>Practical Application</b> as defined in 37 CFR 404.3(d).&nbsp;
<b>Licensee</b> shall amend the <b>Commercial Development Plan</b> and <b>Benchmarks</b> at the request of <b>PHS</b> to address
any <b>Licensed Fields of Use</b> not specifically addressed in the plan originally submitted.</font></td>
  </tr>
</table>



<p>&nbsp;</p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>
<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    9.03</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> shall report to
<b>PHS</b> the dates for achieving <b>Benchmarks</b> specified in Appendix&nbsp;E and the <b>First Commercial Sale</b> in each
country in the <b>Licensed Territory</b> within thirty (30) days of such occurrences.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    9.04</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> shall submit to
<b>PHS</b> within sixty (60) days after each calendar half-year ending June 30 and December 31 a royalty report setting forth for
the preceding half-year period the amount of the <b>Licensed Products</b> sold or <b>Licensed Processes</b> practiced by or on
behalf of <b>Licensee</b> in each country within the <b>Licensed Territory</b>, the <b>Net Sales</b>, and the amount of royalty
accordingly due.&nbsp; With each such royalty report, <b>Licensee</b> shall submit payment of the earned royalties due.&nbsp; If no
earned royalties are due to <b>PHS</b> fox any reporting period, the written report shall so state.&nbsp; The royalty report shall
be certified as correct by an authorized officer of <b>Licensee</b> and shall include a detailed listing of all deductions made
under Paragraph 2.10 to determine <b>Net Sales</b> made under Article 6 to determine royalties due.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font face="Times New Roman" size="2">9.05</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to forward
semi-annually to <b>PHS</b> a copy of such reports received by <b>Licensee</b> from its sublicensees during the preceding half-year
period as shall be pertinent to a royalty accounting to <b>PHS</b> by <b>Licensee</b> for activities under the
sublicense.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font face="Times New Roman" size="2">9.06</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">Royalties due under Article 6 shall
be paid in U.S. dollars.&nbsp; For conversion of foreign currency to U.S. dollars, the conversion rate shall be the New York
foreign exchange rate quoted in <i>The Wall Street Journal</i> on the day that the payment is due.&nbsp; All checks and bank drafts
shall be drawn on United States banks and shall be payable, as appropriate, to &ldquo;NIH/Patent Licensing.&rdquo; All such
payments shall be sent to the following address:&nbsp; NIH, P.O. Box 360120, Pittsburgh, Pennsylvania 15251-6120.&nbsp; Any loss of
exchange, value, taxes, or other expenses incurred in the transfer or conversion to U.S. dollars shall be paid entirely by
<b>Licensee</b>.&nbsp; The royalty report required by Paragraph 9.04 of this <b>Agreement</b> shall accompany each such payment,
and a copy of such report shall also be mailed to <b>PHS</b> at its address for notices indicated on the Signature Page of this
<b>Agreement</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font face="Times New Roman" size="2">9.07</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> shall be solely
    responsible for determining if any tax on royalty income is owed outside the United States and shall pay any such tax and be
responsible for all filings with appropriate agencies of foreign governments.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font face="Times New Roman" size="2">9.08</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">&nbsp;Interest and penalties may be
assessed by <b>PHS</b> on any overdue payments in accordance with the Federal Debt Collection Act.&nbsp; The payment of such late
charges shall not prevent <b>PHS</b> from exercising any other rights it may have as a consequence of the lateness of any
payment.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font face="Times New Roman" size="2">9.09</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">
    All plans and reports required by this Article 9 and marked &#147;confidential&#148;
    by <b>Licensee</b> shall, to the extent permitted by law, be treated by
<b>PHS</b> as commercial and financial information obtained from a person and as
    privileged and confidential, and any proposed disclosure of such records by
    the <b>PHS</b> under the Freedom of Information Act (FOIA), 5 U.S.C. &#167;552
    shall be subject to the predisclosure notification requirements of 45 CFR
    &#167;5.65(d).</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" valign="top">
    <font size="2">10.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" colspan="2"><font size="2" face="Times New Roman">
<u>PERFORMANCE</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    10.01</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> shall use its reasonable best
efforts to bring the <b>Licensed Products</b> and <b>Licensed Processes</b> to <b>Practical Application</b>.&nbsp;
&ldquo;Reasonable best efforts&rdquo; for the purposes of this provision shall include commercially reasonable best efforts to
adhere to the <b>Commercial Development Plan</b> at Appendix&nbsp;F and perform the <b>Benchmarks</b> at Appendix&nbsp;E.&nbsp; The
efforts of a sublicensee shall be considered the efforts of <b>Licensee</b>.</font></td>
  </tr>
</table>
<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<p>&nbsp;</p>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    10.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">Upon the <b>First Commercial Sale</b>, until the
expiration of this <b>Agreement</b>, <b>Licensee</b> shall use its reasonable best efforts to make <b>Licensed Products</b> and
<b>Licensed Processes</b> reasonably accessible to the United States public.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">11.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="2"><font size="2" face="Times New Roman">&nbsp;<u>INFRINGEMENT AND PATENT
ENFORCEMENT</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    11.01</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> and <b>Licensee</b> agree to notify
each other promptly of each infringement or possible infringement of the <b>Licensed Patent Rights</b>, as well as any facts which
may affect the validity, scope, or enforceability of the <b>Licensed Patent Rights</b> of which either <b>Party</b> becomes
aware.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    11.02 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">Pursuant to this <b>Agreement</b> and the
provisions of Chapter 29 of title 35, United States Code, <b>Licensee</b> may:&nbsp; a) bring suit in its own name, at its own
expense, and on its own behalf for infringement of presumably valid claims in the <b>Licensed Patent Rights</b>; b) in any such
suit, enjoin infringement and collect for its use, damages, profits, and awards of whatever nature recoverable for such
infringement; and c) settle any claim or suit for infringement of the <b>Licensed Patent Rights</b> <i>provided, however,</i> that
<b>PHS</b> and appropriate <b>Government</b> authorities shall have the first right to take such actions.&nbsp; If <b>Licensee</b>
desires to initiate a suit for patent infringement, <b>Licensee</b> shall notify <b>PHS</b> in writing.&nbsp; If <b>PHS</b> does
not notify <b>Licensee</b> of its intent to pursue legal action within ninety (90) days, <b>Licensee</b> will be free to initiate
suit.&nbsp; <b>PHS</b> shall have a continuing right to intervene in such suit at its own expense and may consult with
<b>Licensee</b> in such litigation.&nbsp; <b>Licensee</b> shall take no action to compel the <b>Government</b> either to initiate
or to join in any such suit for patent infringement.&nbsp; <b>Licensee</b> may request the <b>Government</b> to initiate or join in
any such suit if necessary to avoid dismissal of the suit.&nbsp; Should the <b>Government</b> be made a party to any such suit,
<b>Licensee</b> shall reimburse the <b>Government</b> for any costs, expenses, or fees which the <b>Government</b> incurs as a
result of such motion or other action, including any and all costs incurred by the <b>Government</b> in opposing any such motion or
other action.&nbsp; In all cases, <b>Licensee</b> agrees to keep <b>PHS</b> reasonably apprised of the status and progress of any
litigation.&nbsp; Before <b>Licensee</b> commences an infringement action, <b>Licensee</b> shall notify <b>PHS</b> and give careful
consideration to the views of <b>PHS</b> and to any potential effects of the litigation on the public health in deciding whether to
bring suit.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    11.03</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">In the event that a declaratory judgment action
alleging invalidity or non-infringement of any of the <b>Licensed Patent Rights</b> shall be brought against <b>Licensee</b> or
raised by way of counterclaim or affirmative defense in an infringement suit brought by <b>Licensee</b> under Paragraph 11.02,
pursuant to this <b>Agreement</b> and the provisions of Chapter 29 of Title 35, United States Code or other statutes,
<b>Licensee</b> may:&nbsp; a) defend the suit in its own name, at its own expense, and on its own behalf for presumably valid
claims in the <b>Licensed Patent Rights</b>; b) in any such suit, ultimately enjoin infringement and collect for its use, damages,
profits, and awards of whatever nature recoverable for such infringement; and c) settle any claim or suit for declaratory judgment
involving the <b>Licensed Patent Rights</b>-<i>provided, however,</i> that <b>PHS</b> and appropriate <b>Government</b> authorities
shall have the first right to take such actions and shall have a continuing right to intervene in such suit.&nbsp; If <b>PHS</b>
does not notify <b>Licensee</b> of its intent to respond to the legal action within a reasonable time, <b>Licensee</b> will be free
to do so, and <b>PHS</b> and any appropriate government authorities may only intervene at their own expense and may consult with
<b>Licensee</b> in such legal action.&nbsp; <b>Licensee</b> shall take no action to compel the <b>Government</b> either to initiate
or to join in any such declaratory judgment action.&nbsp; <b>Licensee</b> may request the <b>Government</b> to initiate or to join
any such suit if necessary to avoid dismissal of the suit.&nbsp; Should the <b>Government</b> be made a party to any such suit by
motion or any other action of <b>Licensee</b>, <b>Licensee</b> shall reimburse the <b>Government</b> for any costs, expenses, or
fees which the <b>Government</b> incurs as a result of such motion or other action.&nbsp; If <b>Licensee</b> elects not to defend
against such declaratory judgment action, <b>PHS</b>, at its option, may do so at its own expense.&nbsp; In all cases,
<b>Licensee</b> agrees to keep <b>PHS</b> reasonably apprised of the status and progress of any litigation.&nbsp; Before
<b>Licensee</b> commences an infringement action, <b>Licensee</b> shall notify <b>PHS</b> and give careful consideration to the
views of <b>PHS</b> and to any potential effects of the litigation on the public health in deciding whether to bring
suit.</font></td>
  </tr>
</table>



<p>&nbsp;</p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>
<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    11.04</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">In any action under Paragraphs 11.02 or 11.03,
the expenses including costs, fees, attorney fees, and disbursements, shall be paid by <b>Licensee</b>.&nbsp; The value of any
recovery made by <b>Licensee</b> through court judgment or settlement shall be treated as <b>Net Sales</b> and subject to earned
royalties.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    11.05 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> shall cooperate fully with
<b>Licensee</b> in connection with any action under Paragraphs 11.02 or 11.03.&nbsp; <b>PHS</b> agrees promptly to provide access
to all necessary documents and to render reasonable assistance in response to a request by <b>Licensee</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">12.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="2"><font size="2" face="Times New Roman"> <u>NEGATION OF WARRANTIES
AND INDEMNIFICATION</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    12.01</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> offers no warranties other than those
specified in Articles 1 and 4.01.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    12.02 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> does not warrant the validity of the
<b>Licensed Patent Rights</b> and makes no representations whatsoever with regard to the scope of the <b>Licensed Patent
Rights</b>, or that the <b>Licensed Patent Rights</b> may be exploited without infringing other patents or other intellectual
property rights of third parties.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    12.03</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> MAKES NO WARRANTIES, EXPRESSED OR
IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER DEFINED BY THE CLAIMS OF THE <b>LICENSED
PATENT RIGHTS</b> OR TANGIBLE MATERIALS RELATED THERETO.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    12.04</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> does not represent that it will
commence legal actions against third parties infringing the <b>Licensed Patent Rights</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    12.05</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> shall indemnify and hold
<b>PHS</b>, its employees, students, fellows, agents, and consultants harmless from and against all liability, demands, damages,
expenses, and losses, including but not limited to death, personal injury, illness, or property damage in connection with or
arising out of a) the use by or on behalf of <b>Licensee</b>, its sublicensees, directors, employees, or third parties of any
<b>Licensed Patent Rights</b>; or b) the design, manufacture, distribution, or use of any <b>Licensed Products</b>, <b>Licensed
Processes</b> or materials by <b>Licensee</b>, or other products or processes developed in connection with or arising out of the
<b>Licensed Patent Rights</b>.&nbsp; <b>Licensee</b> agrees to maintain a liability insurance program consistent with sound
business practice.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">13.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="2"><font size="2" face="Times New Roman">&nbsp;<u>TERM, TERMINATION, AND
MODIFICATION OF RIGHTS</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font face="Times New Roman" size="2">13.01</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">This <b>Agreement</b> is effective when signed
by the <b>Parties</b>, except that the noncreditable, nonrefundable licensee issue royalty fee in the amount of Eighty-Five
Thousand Eight Hundred and Fifty-Eight Dollars and Fifty-Four Cents ($85,858.54 U.S. Dollars) for outstanding patent prosecution
costs owed to <b>PHS</b> under this <b>Agreement</b> will be held in escrow by <b>Licensee</b> until the execution of a release
agreements) by <b>PSU</b> and <b>UC</b> that is substantially similar to the <b>Release Agreement</b> attached hereto as
Appendix&nbsp;I, and shall extend to the expiration of the last to expire of the <b>Licensed Patent Rights</b> unless sooner
terminated as provided in this Article 13.</font></td>
  </tr>
</table>
<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17">
    <font size="2">13.02</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">In the event that <b>Licensee</b> is in default
in the performance of any material obligations under this <b>Agreement</b>, including but not limited to the obligations listed in
Article 13.05, and if the default has not been remedied within ninety (90) days after the date on which License receives notice in
writing of such default, <b>PHS</b> may terminate this <b>Agreement</b> by written notice and pursue outstanding amounts owed
through procedures provided by the Federal Debt Collection Act.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    13.03</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">&nbsp;In the event tat <b>Licensee</b> becomes
insolvent, files a petition in bankruptcy, has such a petition filed against it, determines to file a petition in bankruptcy, or
receives notice of a third party&rsquo;s intention to file an involuntary petition in bankruptcy, <b>Licensee</b> shall immediately
notify <b>PHS</b> in writing.&nbsp; Furthermore, <b>PHS</b> shall have the right to terminate this <b>Agreement</b> immediately
upon <b>Licensee</b>&rsquo;s receipt of written notice.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    13.04 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> shall have a unilateral right to
terminate this <b>Agreement</b> and/or any licenses in any country or territory by giving <b>PHS</b> sixty (60) days written notice
to that effect.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    13.05</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> shall specifically have the right to
terminate or modify, at its option, this <b>Agreement</b>, if <b>PHS</b> determines that the <b>Licensee</b>:&nbsp; 1) is not using
its commercially reasonable best efforts to execute the <b>Commercial Development Plan</b> submitted with its request for a license
and the <b>Licensee</b> cannot otherwise demonstrate to <b>PHS</b>&rsquo; reasonable satisfaction that the <b>Licensee</b> has
taken, or can be expected to take within a reasonable time, effective steps to achieve <b>Practical Application</b> of the
<b>Licensed Products</b> or <b>Licensed Processes</b>; 2) has not used its commercially reasonable best efforts to achieve the
<b>Benchmarks</b> as may be modified under Paragraph 9.02; 3) has willfully made a false statement of, or willfully omitted, a
material fact in the license application or in any report required by the license <b>Agreement</b>; 4) has committed a material
breach of a covenant or agreement contained in the license; 5) is not keeping <b>Licensed Products</b> or <b>Licensed Processes</b>
reasonably available to the public after commercial use commences; 6) cannot reasonably satisfy unmet health and safety needs; or
7) cannot reasonably justify a failure to comply with the domestic production requirement of Paragraph 5.02 unless waived.&nbsp; In
making this determination, <b>PHS</b> will take into account the normal course of such commercial development programs conducted
with sound and reasonable business practices and judgment and the annual reports submitted by <b>Licensee</b> under Paragraph
9.02.&nbsp; Prior to invoking this right, <b>PHS</b> shall give written notice to <b>Licensee</b> providing <b>Licensee</b>
specific notice of, and a ninety (90) day opportunity to respond to, <b>PHS</b>&rsquo; concerns as to the previous items 1) to
7).&nbsp; If <b>Licensee</b> fails to alleviate <b>PHS</b>&rsquo; concerns as to the previous items 1) to 7) or fails to initiate
corrective action to <b>PHS</b>&rsquo; reasonable satisfaction, <b>PHS</b> may terminate this <b>Agreement</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    13.06</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">When the public health and safety so require,
and after written notice to <b>Licensee</b> providing <b>Licensee</b> a sixty (60) day opportunity to respond, <b>PHS</b> shall
have the right to require <b>Licensee</b> to grant sublicenses to responsible applicants, on reasonable terms, in any <b>Licensed
Fields of Use</b> under the <b>Licensed Patent Rights</b>, unless <b>Licensee</b> can reasonably demonstrate that the granting of
the sublicense would not materially increase the availability to the public of the subject matter of the <b>Licensed Patent
Rights</b>.&nbsp; <b>PHS</b> will not require the granting of a sublicense unless the responsible applicant has first negotiated in
good faith with <b>Licensee</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    13.07 </font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman"> <b>PHS</b> reserves the right according to 35
U.S.C. &sect;209(f)(4) to terminate or modify this <b>Agreement</b> if it is determined that such action is necessary to meet
requirements for public use specified by federal regulations issued after the date of the license and such requirements are not
reasonably satisfied by <b>Licensee</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="26" valign="top" height="17"><font size="2" face="Times New Roman">
    13.08</font></td>
    <td style="border-style: none; border-width: medium" width="648" height="17"><font size="2" face="Times New Roman">Within thirty (30) days of receipt of written
notice of <b>PHS</b>&rsquo;s unilateral decision to modify or terminate this <b>Agreement</b>, <b>Licensee</b> may, consistent with
the provisions of 37 CFR 404.11, appeal the decision by written submission to the designated <b>PHS</b> official.&nbsp; The
decision of the designated <b>PHS</b> official shall be the final agency decision.&nbsp; <b>Licensee</b> may thereafter exercise
any and all administrative or judicial remedies that may be available.</font></td>
  </tr>
</table>



<p><font face="Times New Roman" size="2">&nbsp;</font></p>



<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>
<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    13.09</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">Within ninety (90) days of expiration or
termination of this <b>Agreement</b> under this Article 13, a final report shall be submitted by <b>Licensee</b>.&nbsp; Any royalty
payments, including those incurred but not yet paid (such as the full minimum annual royalty), and those related to patent expense,
due to <b>PHS</b> shall become immediately due and payable upon termination or expiration.&nbsp; If terminated under this Article
13, sublicensees may elect to convert their sublicenses to direct licenses with <b>PHS</b> pursuant to Paragraph 4.03.&nbsp; Unless
otherwise specifically provided for under this <b>Agreement</b>, upon termination or expiration of this <b>Agreement</b>,
<b>Licensee</b> shall return all <b>Licensed Products</b> or other materials included within the <b>Licensed Patent Rights</b> to
<b>PHS</b> or provide <b>PHS</b> with certification of the destruction thereof.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">14.</font></td>
    <td style="border-style: none; border-width: medium" width="674" valign="top" height="17" colspan="2"><font size="2" face="Times New Roman"> <u>GENERAL
PROVISIONS</u></font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.01</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">Neither <b>Party</b> may waive or release any of
its rights or interests in this <b>Agreement</b> except in writing.&nbsp; The failure of the <b>Government</b> to assert a right
hereunder or to insist upon compliance with any term or condition of this <b>Agreement</b> shall not constitute a waiver of that
right by the <b>Government</b> or excuse a similar subsequent failure to perform any such term or condition by
<b>Licensee</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.02 </font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">This Agreement constitutes the entire agreement
between the <b>Parties</b> relating to the subject matter of the <b>Licensed Patent Rights</b>, and all prior negotiations,
representations, agreements, and understandings are merged into, extinguished by, and completely expressed by this
<b>Agreement</b>.&nbsp; It is the mutual desire of the <b>Licensee</b> and the <b>PHS</b> that the terms of this <b>Agreement</b>,
shall become effective according to the conditions set forth in Section 13, and once executed, shall supersede, and thereby
terminate the terms and conditions of the following listed agreements, but not the <b>Sublicense Agreement</b>,
including:</font><ol style="font-size: 10pt" type="I">
      <li>



<p style="margin-top: 10"><font size="2" face="Times New Roman">The
exclusive license agreement between the <b>Licensee</b> and <b>PSU</b>, executed February 6, 1998;</font></p>



      </li>
      <li>



<p style="margin-top: 10"><font size="2" face="Times New Roman">The Interinstitutional agreement between <b>PHS</b> and <b>PSU</b> (L-094-91/0), executed on May 20, 1997, but not its replacement
agreements between <b>PHS</b> and <b>PSU</b> executed January 29, 2002; and L-086-02/0 between <b>PHS</b> and <b>UC</b> executed
January 30, 2002;</font></p>



      </li>
      <li>



<p style="margin-top: 10"><font size="2" face="Times New Roman">The agreement between
<b>PSU</b> and the <b>UC</b>, executed on May I6, 1997.</font></p>



      </li>
    </ol>
    </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"> <b><font size=
"2">PHS </font></b><font size="2">acknowledges the <b>Release Agreement</b> listed as Appendix&nbsp;I and its relevant Exhibits, of
this <b>Agreement</b>, entered into by and among the <b>Licensee</b>, the <b>Sublicensee</b>, <b>PSU</b>, <b>UC</b> and
<b>PHS</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.03</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">The provisions of this <b>Agreement</b> are
severable, and in the event that any provision of this <b>Agreement</b> shall be determined to be invalid or unenforceable under
any controlling body of law, such determination shall not in any way affect the validity or enforceability of the remaining
provisions of this <b>Agreement</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.04</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">If either <b>Party</b> desires a modification to
this <b>Agreement</b>, the <b>Parties</b> shall, upon reasonable notice of the proposed modification by the <b>Party</b> desiring
the change, confer in good faith to determine the desirability of such modification.&nbsp; No modification will be effective until
a written amendment is signed by the signatories to this <b>Agreement</b> or their designees.</font></td>
  </tr>
</table>
<font size="2" face="Times New Roman">
<p>&nbsp;</p>
<hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.05</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">The construction, validity, performance, and
effect of this <b>Agreement</b> shall be governed by Federal law as applied by the Federal courts in the District of
Columbia.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.06 </font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">All notices required or permitted by this
<b>Agreement</b> shall be given by prepaid, first class, registered or certified mail or by an express/overnight delivery service
provided by a commercial carrier, properly addressed to the other <b>Party</b> at the address designated on the following Signature
Page, or to such other address as may be designated in writing by such other <b>Party</b>.&nbsp; Notices shall be considered timely
if such notices are received on or before the established deadline date or sent on or before the deadline date as verifiable by
U.S. Postal Service postmark or dated receipt from a commercial carrier.&nbsp; <b>Parties</b> should request a legibly dated U.S.
Postal Service postmark or obtain a dated receipt from a commercial carrier or the U.S. Postal Service.&nbsp; Private metered
postmarks shall not be acceptable as proof of timely mailing.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.07 </font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">This Agreement shall not be assigned by
<b>Licensee</b> except:&nbsp; a) with the prior written consent of <b>PHS</b>, such consent not to be withheld unreasonably; or b)
as part of a sale or transfer of substantially the entire business of <b>Licensee</b> relating to operations which concern this
<b>Agreement</b>.&nbsp; <b>Licensee</b> shall notify <b>PHS</b> within ten (10) days of any assignment of this <b>Agreement</b> by
<b>Licensee</b>, and <b>Licensee</b> shall pay <b>PHS</b>, as an additional royalty, twenty thousand U.S. dollars ($20,000 U.S.)
for an assignment of this <b>Agreement</b> within thirty (30) days of such assignment.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.08</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees in its use of any
<b>PHS</b>-supplied materials to comply with all applicable statutes, regulations, and guidelines, including <b>PHS</b> and
<b>DHHS</b> regulations and guidelines.&nbsp; <b>Licensee</b> agrees not to use the materials for research involving human subjects
or clinical trials in the United States without complying with 21 CFR Part 50 and 45 CFR Part 46.&nbsp; <b>Licensee</b> agrees not
to use the materials for research involving human subjects or clinical trials outside of the United States without notifying
<b>PHS</b>, in writing, of such research or trials and complying with the applicable regulations of the appropriate national
control authorities.&nbsp; Written notification to <b>PHS</b> of research involving human subjects or clinical trials outside of
the United States shall be given no later than sixty (60) days prior to commencement of such research or trials.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.09 </font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> acknowledges that it is subject
to and agrees to abide by the United States laws and regulations (including the Export Administration Act of 1979 and Arms Export
Control Act) controlling the export of technical data, computer software, laboratory prototypes, biological material, and other
commodities.&nbsp; The transfer of such items may require a license from the cognizant Agency of the U.S. <b>Government</b> or
written assurances by <b>Licensee</b> that it shall not export such items to certain foreign countries without prior approval of
such agency.&nbsp; <b>PHS</b> neither represents that a license is or is not required or that, if required, it shall be
issued.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.10</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman"> <b>Licensee</b> agrees to mark the <b>Licensed
Products</b> or their packaging sold in the United States with all applicable U.S. patent numbers and similarly to indicate
&ldquo;Patent Pending&rdquo; status.&nbsp; All <b>Licensed Products</b> manufactured in, shipped to, or sold in other countries
shall be marked in such a manner as to preserve <b>PHS</b> patent rights in such countries.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.11 </font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">By entering into this <b>Agreement</b>,
<b>PHS</b> does not directly or indirectly endorse any product or service provided, or to be provided, by <b>Licensee</b> whether
directly or indirectly related to this <b>Agreement</b>.&nbsp; <b>Licensee</b> shall not state or imply that this <b>Agreement</b>
is an endorsement by the <b>Government</b>, <b>PHS</b>, any other <b>Government</b> organizational unit, or any <b>Government</b>
employee.&nbsp; Additionally, <b>Licensee</b> shall not use the names of NIH, CDC, <b>PHS</b>, or <b>DHHS</b> or the
<b>Government</b> or their employees in any advertising, promotional, or sales literature without the prior written consent of
<b>PHS</b>.</font></td>
  </tr>
</table>
<font size="2" face="Times New Roman">
<hr size="1" color="#000080" STYLE="page-break-after: always"></font>



<table border="1" cellpadding="6" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="725">
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.12</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">The <b>Parties</b> agree to attempt to settle
amicably any controversy or claim arising under this <b>Agreement</b> or a breach of this <b>Agreement</b>, except for appeals of
modifications or termination decisions provided for in Article 13.&nbsp; <b>Licensee</b> agrees first to appeal any such unsettled
claims or controversies to the designated <b>PHS</b> official, or designee, whose decision shall be considered the final agency
decision.&nbsp; Thereafter, <b>Licensee</b> may exercise any administrative or judicial remedies that may be available.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.13</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">Nothing relating to the grant of a license, nor
the grant itself, shall be construed to confer upon any person any immunity from or defenses under the antitrust laws or from a
charge of patent misuse, and the acquisition and use of rights pursuant to 37 CFR Part 404 shall not be immunized from the
operation of state or Federal law by reason of the source of the grant.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.14 </font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">Paragraphs 4.03, 8.01, 9.05-9.07, 12.01-12.05,
13.08, 13.09, and 14.12 of this <b>Agreement</b> shall survive termination of this <b>Agreement</b>.</font></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="15" height="17">
    <font size="2">&nbsp;</font></td>
    <td style="border-style: none; border-width: medium" width="30" valign="top" height="17"><font size="2" face="Times New Roman">
    14.15</font></td>
    <td style="border-style: none; border-width: medium" width="644" height="17"><font size="2" face="Times New Roman">Procept agrees that subsequent to market
approval by the Food and Drug Administration (<b>FDA</b>), to make reasonable quantities of <b>Licensed Product(s)</b> or materials
produced through the use of <b>Licensed Process(es)</b> available on a compassionate use basis, to patients, either through the
patient&rsquo;s physicians) and/or the medical center treating the patient; and Procept further agrees, after their <b>First
Commercial Sale</b>, and to develop written educational materials (e.g., brochures, advertisements, etc.) directed to patients and
physicians detailing the <b>Licensed Product(s)</b> and/or medical aspects of using 06-Benzylguanine and/or its derivatives as a
therapeutic modality for the treatment of human cancers.</font></td>
  </tr>
</table>



<p align="center">&nbsp;</p>



<p align="center"><b><font size="2" face="Times New Roman">SIGNATURES BEGIN ON NEXT PAGE</font></b></p>



&nbsp;<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>
<p>



<font size="2" face="Times New Roman"><br clear="all" />
</font>

</p>

<p align="center"><b><font size="2" face="Times New Roman">PHS PATENT LICENSE AGREEMENT-<i>EXCLUSIVE</i></font></b></p>

<p align="center"><b><font size="2" face="Times New Roman"></font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">SIGNATURE PAGE</font></b></p>







<p><font size="2" face="Times New Roman">For <b>PHS</b>:</font></p>





<p><u><font size="3" face="Times New Roman">/s/ Jack Spiegel, Ph.D.</font></u><u><font size=
"2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>2/2/02<br>
  </u></font><font size="2" face="Times New Roman">Jack Spiegel, Ph.D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Date<br>
  </font><font size="2" face="Times New Roman">Director, Division of Technology Development and Transfer<br>
  Office of Technology Transfer<br>
  National Institutes of Health</font></p>

<p><font size="2" face="Times New Roman">Mailing Address for Notices:<br>
  Office of Technology Transfer<br>
  National Institutes of Health<br>
  6011 Executive Boulevard, Suite 325<br>
  </font><font size="2" face="Times New Roman">Rockville, Maryland 20852-3804 U.S.A.</font></p>

<p><font size="2" face="Times New Roman">For <b>Licensee</b> (Upon, information and belief, the undersigned expressly certifies or
affirms that the contents of any statements of <b>Licensee</b> made or referred to in this document are truthful and
accurate.):</font></p>



<p><font size="2" face="Times New Roman">by:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Procept, Inc.</b></font></p>





<p><u><font size="3" face="Times New Roman">/s/ Salvatore A. Bucci&nbsp;&nbsp;</font></u> <u><font size=
"2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u>
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>2/2/02<br>
  </u></font><font size="2" face="Times New Roman">Salvatore A.&nbsp; Bucci&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Date<br>
  </font><font size="2" face="Times New Roman">President and Chief Executive Officer</font></p>



<p><font size="2" face="Times New Roman">Official and Mailing Address for Notices:<br>
</font><u><font size="2" face="Times New Roman">369 Lexington Avenue, 10<sup>th</sup> Floor<br>
  New York, NY 10017<br>
  </font><br>
  </u><font size="2" face="Times New Roman">Any false or misleading statements made, presented, or submitted to the <b>Government</b>,
  including any relevant omissions, under this <b>Agreement</b> and during the course of negotiation of this <b>Agreement</b> are subject
  to all applicable civil and criminal statutes including Federal statutes 31 U.S.C. &sect;&sect;3801-3812 (civil liability) and 18 U.S.C.
  &sect;1001 (criminal liability including fines) and/or imprisonment).</font></p>

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