In July 2006, a License Agreement was signed with Medtronic, Inc. (‘Medtronic’) a major U.S. medical technology company. In the terms of the agreement, Resverlogix grants to Medtronic the exclusive, worldwide rights to develop and commercialize its ReVas™ technology with drug eluting stents (DES). As per the agreement, after successful completion of a technology development program and a joint decision to initiate product development, Medtronic would make an initial cash payment to Resverlogix and could make additional payments upon successful completion of certain pre-defined milestones. Resverlogix would then be eligible to receive royalties on sales of any ReVas™ therapeutic component of novel drug-device combinations that result from this license.

Assuming the development of a successful commercial product with regulatory approval and broad market acceptance, Resverlogix would be eligible under the terms of the agreement to receive up to U.S. $291 million in combined payments.