Item 1.02. Termination of a Material Definitive Agreement.

On August 7, 2009, Neurobiological Technologies, Inc. (the "Company") entered into an agreement to terminate its the license and cooperation agreement with Merz Pharmaceuticals GmbH ("Merz") and Children's Medical Center Corporation ("CMCC"), effective as of July 31, 2009. Pursuant to the termination agreement, Merz will make a final payment to the Company of $4.9 million in satisfaction of all its royalty and other obligations under the license and cooperation agreement. The Company expects to receive this payment within 10 days. Pursuant to the termination agreement, the Company and Merz also agreed to a mutual release of all claims related to the license and cooperation agreement. The termination of the agreement with respect to the Company does not affect the rights and obligations flowing between Merz and CMCC under the amended agreement.

The foregoing is a summary of the termination agreement. It is qualified in its entirety by the text of the agreement, a copy of which will be filed as an exhibit to the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2009.