Estate of Burton W. Kanter, Deceased, Joshua S. Kanter, Executor, and Naomi R. Kanter, et al. - Page 344

                                                -403-                                                   
            definition, it is hard to visualize that [IRC] obtained ownership                           

                  156(...continued)                                                                     
                  division, continuation, and continuation-in-part.                                     
                        b.  Any patent which is a reissue or an extension                               
                  of, a patent of addition to, any patent defined in (a)                                
                  above;                                                                                
                        c.  Any patent application or patent corresponding                              
                  to any patent application or patent identified in (a)                                 
                  or (b) above which is hereafter filed or issued in any                                
                  country.                                                                              
            In the licensing agreement between Newport and IRC, entered into                            
            in 1979, the research to be undertaken by Newport was described                             
            as follows:                                                                                 
                  The research which is the subject of this Agreement                                   
                  will include, but is not limited to the areas of:                                     
                  chemical synthesis and analysis of compounds to be                                    
                  agreed upon; research and development of pharmaceutical                               
                  dosage forms and methods of quality control testing for                               
                  identity, purity and stability; preclinical                                           
                  toxicological, pharmacological and biochemical studies                                
                  in tissue culture and animal models to determine safety                               
                  efficacy and method of action and to provide guidelines                               
                  for the investigation of potential applicability to                                   
                  human subjects; toxicological, pharmacological and                                    
                  biochemical studies in human subjects to determine                                    
                  safety and degree of tolerance in man; and clinical                                   
                  trials to determine range of clinical potential and                                   
                  conditions for obtaining maximum therapeutic benefit at                               
                  minimum risk in clinical usage.                                                       
                  This shall be a fixed price contract and Newport will                                 
                  provide to * * * [IRC] data on NPT-15392 and such other                               
                  substances as may be agreed to, establishing the acute                                
                  toxicity (single dose administration to two species);                                 
                  subacute toxicity (multiple dose administration in two                                
                  species for 90 days); single dose administration to                                   
                  humans designed to establish the level at which the                                   
                  drug may be safely administered (including laboratory                                 
                  and physical measurements of potential side effects)                                  
                  and the results of efficacy testing in at least 12                                    
                  patients in which laboratory parameters of the immune                                 
                  response are measured.                                                                




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