Document:

Pitt License

 Exhibit 10.17 
 ***Text Omitted and Filed Separately 
 Confidential Treatment Requested 
 Under 17 CFR §§ 200. 80(b)(4) and 230.406 
 NON-EXCLUSIVE LICENSE AGREEMENT 
 This Agreement is made and entered into as of the 1st day of
November, 2007 (“Effective Date”), by and between the University of Pittsburgh – Of the Commonwealth System of Higher Education, a non-profit corporation, organized and existing under the laws of the Commonwealth of Pennsylvania,
having an office at 200 Gardner Steel Conference Center, Thackeray and O’Hara Street, Pittsburgh, Pennsylvania 15260 (“University”), and Precision Therapeutics, Inc, having its principal office at 2516 Jane Street, Pittsburgh, PA
15203 (“Licensee”). 
 WHEREAS, University is the joint owner by assignment with Carnegie Mellon University of certain Patent
Rights, entitled “A Method and Apparatus for Holding Cells (Case 00113),” developed by Dr. Joel Greenberger of University Faculty and Drs. Michael Domach and Paul DiMilla of Carnegie Mellon University, and University has the right to
grant licenses under such Patent Rights; 
 WHEREAS, University desires to have the Patent Rights utilized in the public interest;

 WHEREAS, Licensee has represented to University, to induce University to enter into this Agreement, that Licensee is experienced in the
development, production, manufacture, marketing and sale of products and/or the use of similar products to the Licensed Technology and that Licensee shall commit itself to a thorough, vigorous and diligent program of exploiting the Patent Rights so
that public utilization results therefrom; and 
 WHEREAS, Licensee desires to obtain a non-exclusive license under the Patent Rights upon
the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained
herein, the parties hereto, intending to be legally bound, agree as follows: 
 ARTICLE 1 
 Definitions 
 For purposes of this
Agreement, the following words and phrases shall have the following meanings: 
  

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 1.1 “Affiliate(s)” shall mean, with respect to University, any clinical or research entity that
is operated or managed as a facility under the UPMC Health System, whether or not owned by University and with respect to Licensee any corporation or other business entity controlled by, controlling, or under common control with Licensee. For this
purpose, “control” means direct or indirect beneficial ownership of at least fifty percent (50%) of the voting stock, or at least fifty percent (50%) interest in the income of such corporation or other business. 
 1.2 “Cancer Diagnostics Field” shall mean diagnostic assays to determine therapeutic efficacy of then-available chemotherapeutics or biologics
on cancer or screening assays for the detection of cancer. 
 1.3 “Commercially Reasonable Best Efforts” shall mean that Licensee
shall use commercially reasonable efforts consistent with those used by comparable companies of similar size at a similar stage in the United States in research and development projects for methods or compositions reasonably considered to have
commercial value and risk reasonably comparable to the Licensed Technology. 
 1.4 “Drug Development Field” shall mean research
conducted to measure the effect of pre-clinical, clinical or commercial stage cancer agents on primary or early passage cell strains. 
 1.5
“Field” shall mean human and veterinary cellular imaging in the Cancer Diagnostics Field and the Drug Development Field. 
 1.6
“Licensed Technology” shall mean any product or part thereof or service which is: 
 (a) Covered in whole or in part
by an issued, unexpired or pending claim contained in the Patent Rights in the country in which any such product or part thereof is made, used or sold or in which any such service is used or sold; or 
 (b) Manufactured by using a process or is employed to practice a process which is covered in whole or in part by an issued, unexpired
claim or a pending claim contained in the Patent Rights in the country in which any such process that is 

  

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included in Licensed Technology is used or in which such product or part thereof is used or sold. 
 1.7 “Licensee” shall mean Precision Therapeutics, Inc., and its Affiliate(s). 
 1.8 “Net Sales” shall mean Licensee’s and sublicensee’s invoice price for products or processes included in Licensed Technology and
produced hereunder less the sum of the following: 
 (a) Third party payor credit or allowance amounts associated with
revenues of Licensed Technology; 
 (b) Actual cost of freight charges or freight absorption, separately stated in such
invoice; 
 (c) Actual trade, quantity, volume-based or cash discounts, allowances and credits that are allowed, if any; and

 (d) Sales taxes, tariff duties and/or use taxes separately stated on each invoice. 
 Each of the deductions set forth above shall be reasonable and customary, and shall be determined on an accrual basis in accordance with United States
Generally Accepted Accounting Principles (GAAP). 
 1.9 “Non-Commercial Research and Education Purposes” shall mean use of Patent
Rights (including distribution of biological materials covered by the Patent Rights) for academic research or other not-for-profit scholarly purposes which are undertaken at a non-profit or governmental institution that does not use the Patent
Rights in the production or manufacture of products for sale or the performance of services for a fee. 
 1.10 “Patent Rights”
shall mean University intellectual property described below: 
 (a) The United States and foreign patents and/or patent
applications listed in Exhibit A; 
  

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 (b) United States and foreign patents issued from the applications listed in Exhibit A
and from divisionals, continuations, continuations-in-part, reexaminations, extensions and reissues of the patents and/or applications listed in Exhibit A; 
 (c) Claims of all U.S. and foreign continuation, continuation-in-part, reexamination, reissue, extension and divisional applications, and of the resulting patents, which are directed to subject matter specifically
described in the U.S. and foreign applications listed in Exhibit A; 
 (d) Claims of all foreign patent applications, and of
the resulting patents, which are directed to subject matter specifically described in the United States patents and/or patent applications described in (a), (b) or (c) above. 
 ARTICLE 2 
 Grant 
 2.1 University hereby grants to Licensee, the right and worldwide non-exclusive license (with the right to grant sublicenses in accordance with
Section 2.3) in the Field to make, have made, use, sell, offer for sale, and import the Licensed Technology and to practice under the Patent Rights to the end of the term for which the Patent Rights are granted, unless this Agreement is
terminated sooner as provided herein. The license granted hereby is subject to the rights of the United States government, if any, as set forth in 35 U.S.C. §200, et seq. 
 2.2 University reserves the royalty-free, non-exclusive right to practice under the Patent Rights and to use the Licensed Technology for its own
Non-Commercial Research and Education Purposes. 
 2.3 Licensee shall have the right to sublicense the Patent Rights to third party
sublicensees and end-user customers of Licensee when the sale or license of Licensee’s products, services or intellectual property require the practice of the Patent Rights. Such sublicensees shall have no further rights to sublicense, and
Licensee agrees that any sublicense granted in connection with this Section 2.3 shall be consistent with all Licensee’s obligations to the University contained in this Agreement. 
  

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 2.4 The license granted hereunder shall not be construed to confer any rights upon Licensee or any
sublicense under Section 2.3 by implication, estoppel or otherwise as to any Patent Rights or technology not specifically set forth in Exhibit A hereof. 
 2.5 Any sublicense granted under this Agreement shall survive termination of this Agreement provided that the applicable sublicensee agrees in writing to assume all of the obligations of this Agreement including:
(i) the obligation to pay to University all payments that would have been payable to the University by Licensee under the Agreement had the Agreement not terminated; and (ii) compliance with all other non-financial terms of the Agreement.

 ARTICLE 3 
 Due Diligence

 3.1 Licensee shall use Commercially Reasonable Best Efforts to bring the Licensed Technology to market through a thorough, vigorous
and diligent program for exploitation of the Patent Rights and to continue active, diligent marketing efforts for the Licensed Technology throughout the pendency of this Agreement. 
 3.2 Licensee’s failure to perform in accordance with Section 3.1 shall be grounds for University to terminate this Agreement pursuant to
Article 9 and upon termination all rights and interest to the Licensed Technology and Patent Rights shall revert to University. 
 ARTICLE 4

 Royalties and Other License Consideration 
 4.1 In consideration of the rights, privileges and license granted by University hereunder, Licensee shall pay royalties and other monetary consideration as follows: 
 (a) Initial license fee, nonrefundable and noncreditable against royalties, of [***] due immediately upon execution of this Agreement;

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

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 (b) Annual maintenance fee, non-refundable and non-creditable against royalties of [***]
due on each yearly anniversary of the Effective Date of this Agreement; 
 (c) Royalties in an amount equal to either
(i) [***] of Net Sales for Licensed Technology in the Cancer Diagnostics Field; or (ii) [***] of Net Sales for Licensed Technology in the Drug Development Field; and 
 (d) Beginning with the first commercial sale of a product using the Licensed Technology, a minimum royalty in the amount of [***] per
calendar year, but only to the extent such minimum royalty is greater than the aggregate annual royalty computed in accordance with Section 4.1(c), (annually) calculated initially on the first anniversary of the execution of this Agreement for
the previous twelve (12) month period. 
 In the event that Licensed Technology is sold or sublicensed as a combination product with
other products and services of Licensee (a “Combination Product”), the Net Sales for purposes of royalty payments on the Combination Product shall be determined by multiplying the total Net Sales of the Combination Product by the fraction
A/(A+B), where “A” is the average Net Sales of the product or service covered by a Licensed Technology when sold separately in finished form in such country during the applicable calendar quarter; and “B” is the net sales of the
other product(s) or service(s) making up the Combination Product when sold separately during the calendar quarter. In the event that such average invoice price cannot be determined for both the Licensed Technology and the other products and
services, the Parties will negotiate in good faith regarding the calculation of Net Sales, as applicable, for the applicable Licensed Technology, based on the relative value contributed by each product and/or service. 
 4.2 Royalty payments, pursuant to Section 4.1(c) above, shall be paid to University in United States dollars and directed to the address set forth
in Section 12 hereof within forty-five (45) days after each March 31, June 30, September 30 and December 31. The minimum royalty, pursuant to Section 4.1(d) above, if any, shall be paid to University
within forty- 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

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five (45) days of the anniversary date of this Agreement each year during the pendency of this Agreement. Licensee’s royalty payment obligations
shall continue on a Licensed Technology-by-Licensed Technology basis and a country-by-country basis until the expiration of the last-to-expire issued claim of the Patent Rights that, but for the licenses granted in this Agreement, would be infringed
by the sale of such Licensed Technology in such country. 
 4.3 Payments pursuant to this Agreement which are overdue shall bear interest
calculated from the due date until payment is received at the higher of: (a) the rate of eight percent (8%) per annum; or (b) “prime” plus two percent (2%). Interest shall be compounded annually, and the “prime”
rate used to calculate interest shall be the rate published in the “Wall Street Journal” on the first business day of each year for which such payments are due. 
 4.4 Licensee shall sell Licensed Technology to University and its Affiliates upon request at such price(s) and on such terms and conditions as such products and/or processes are made available to Licensee’s
similarly situated most favored customer. 
 ARTICLE 5 
 Reports 
 5.1 Within forty-five (45) days after each
March 31, June 30, September 30 and December 31 of each year during the term of this Agreement, Licensee shall deliver to University true, accurate and detailed reports of the following information in a form acceptable
to University: 
 (a) Number of Licensed Technology products manufactured and sold by Licensee; 
 (b) Total billings for all such products; 
 (c) Accounting for all Licensed Technology processes used or sold by Licensee; 
 (d)
Deductions set forth in Section 1.8; and 
 (e) Total royalties due. 
  

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 5.2 If no royalties shall be due hereunder, Licensee shall so advise University in writing within thirty
(30) days after the end of any calendar quarter for which no royalties are due. 
 5.3 Licensee shall keep full, true and accurate books
of account, in accordance with generally accepted accounting principles, containing all information that may be necessary for the purpose of determining amounts payable to University hereunder. Such books of account shall be kept at Licensee’s
principal place of business. Such books and the supporting data related thereto shall be open at all reasonable times for three (3) years following the end of the calendar year to which they pertain to the inspection of University or its agents
for the purpose of verifying Licensee’s royalty statement or compliance in other respects with this Agreement. The fees and expenses of University’s representatives shall be borne by University, however, if an error of more than five
percent (5%) of the total payments due or owing for any year is discovered, then Licensee shall bear the fees and expenses of University’s representatives. 
 5.4 Any reports provided by Licensee pursuant to this Article 5 will be held in strict confidence by the University and not disclosed to any third party and the University will use such reports only for the purpose of
this Agreement. Each party shall treat as confidential and not disclose the terms of this Agreement or information related thereto, except to the extent such information is required to be disclosed by any applicable laws or regulations, including
the rules of any applicable security exchange; provided, however, that the disclosing party shall provide such other party with notice of such disclosure in advance thereof to the extent practicable. 
 ARTICLE 6 
 Patent Prosecution and
Infringement Actions 
 6.1 University has or may apply for, seek prompt issuance of and shall use reasonable efforts to maintain during
the term of this Agreement, the Patent Rights. In the event University desires to cease paying maintenance fees for, or otherwise abandons, any of the Patent Rights in any country, University shall provide Licensee with written notice thereof, which
notice shall be provided to Licensee at least thirty (30) days before the 

  

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maintenance fees in question are due. In such event, Licensee shall have the right, but not the obligation, to pay any such maintenance fees on behalf of
University. 
 6.2 Licensee shall inform University promptly in writing of any alleged infringement of the Patent Rights by a third party and
of any available evidence thereof. 
 6.3 In any infringement suit University may institute to enforce the Patent Rights pursuant to this
Agreement, Licensee shall, at the request of University, cooperate in all respects and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples, specimens, and the like.

 6.4 Licensee shall be responsible for no greater than Fifty Percent (50.0%) of all fees and costs, including attorneys’ fees,
relating to the filing, prosecution and maintenance of the Patent Rights incurred prior to or after the Effective Date and not otherwise reimbursed by a third party to University. Additionally, Licensee shall be liable for no greater than Fifty
Percent (50.0%) of University’s out-of-pocket filing, prosecution, and maintenance costs (including all attorneys’ fees and costs), for any and all patent prosecution and maintenance actions that will be taken by patent counsel after
the term of this Agreement but in response to any instructions that were sent during the term of this Agreement from University to patent counsel relating to the Patent Rights. Fees and costs incurred after the Effective Date shall be paid by
Licensee within forty-five (45) days after receipt of University’s invoice therefore. Payments pursuant to this Section 6.4 are not creditable against royalties. 
 6.5 If University enters into another Non-Exclusive License Agreement for the Patent Rights with any third party (“Other Licensee”),
Licensee’s obligation to reimburse University under Section 6.4 shall be reduced such that Licensee and such Other Licensee(s) shall pay a pro-rata share of all future patent costs incurred after the execution of said agreement. The
pro-rata share shall be equal to the total future patent costs incurred divided by the number of licensees for the Patent Rights at the time such costs are incurred. 
  

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 6.6 Notwithstanding the obligations set forth in Sections 6.4 and 6.5 above, in no event shall Licensee
be required to reimburse patent costs incurred by the University in excess of Twelve Thousand Dollars ($12,000) per calendar year. 
 ARTICLE
7 
 Indemnification/Insurance/Limitation of Liability 
 7.1 Licensee shall at all times during the term of this Agreement and thereafter indemnify, defend and hold University, its trustees, officers, employees and affiliates harmless against all third party claims and
expenses, including legal expenses and reasonable attorneys’ fees, arising out of the death of or injury to any person or persons or out of any damage to property or the environment, and against any other claim, proceeding, demand, expense and
liability of any kind whatsoever resulting from the production, manufacture, sale, use, lease, consumption or advertisement of the Licensed Technology or arising from any obligation of Licensee hereunder. Licensee’s agreement to indemnify,
defend and hold University harmless is conditioned on University: (i) providing written notice to the Licensee of any third party claim arising out of the indemnified activities within forty-five (45) days after University has knowledge of
such claim; (ii) permitting Licensee to assume full responsibility to investigate, prepare for and defend against any such claim; and (iii) assisting Licensee, at Licensee’s reasonable expense, in the investigation of, preparation for
and defense of any claim; and (iv) not compromising or settling such claim without Licensee’s written consent, such consent not to be unreasonably withheld. 
 7.2 Licensee shall obtain and carry in full force and effect, liability insurance which shall protect Licensee and University in regard to events covered by Section 7.1 above, as provided below: 
  

							
	COVERAGE	 		  	LIMITS
				
	(a)	 	Commercial General Liability, including but not limited to, Products, Contractual, Fire, Legal and Personal Injury	 	            	  	$1,000,000 Combined Single Limits for Bodily Injury and Property Damage
				
	(b)	 	Products Liability	 		  	$5,000,000

  

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 The University of Pittsburgh is to be named as an additional insured with respect to
insurance policies identified in Sections 7.2(a) and 7.2(b) above. 
 Certificates of insurance evidencing the coverage
required above shall be filed with University’s Office of Risk Management, 1817 Cathedral of Learning, Pittsburgh, PA 15260, no later than fifteen (15) days after execution of this Agreement and on or before July 1 of each subsequent
year during the pendency of this Agreement. Such certificates shall provide that the insurer will give University not less than thirty (30) days advance written notice of any material changes in or cancellation of coverage. 
 7.3 The University represents to Licensee that: (a) it is the joint owner with Carnegie Mellon University by assignment from the inventors of the
Patent Rights; (b) it has the right and authority to grant the licenses in this Agreement under such Patent Rights; (c) as of the Effective Date of this License Agreement, the University’s Office of Technology Management has not been
served with a complaint alleging infringement of a third party’s patent rights arising from the University’s use or practice of the Patent Rights; and (d) it has complied with all obligations to elect rights in the Patent Rights from
the United States government, if any, as set forth in 35 U.S.C. §200, et seq. or comparable state law. 
 7.4 EXCEPT AS SET FORTH UNDER
SECTION 7.3, ABOVE, UNIVERSITY MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS
CLAIMS, ISSUED OR PENDING. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY GIVEN BY UNIVERSITY THAT THE PRACTICE BY LICENSEE OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY.
UNIVERSITY ADDITIONALLY DISCLAIMS ALL OBLIGATIONS AND LIABILITIES ON THE PART OF UNIVERSITY FOR DAMAGES, INCLUDING, BUT NOT LIMITED TO, DIRECT, INDIRECT, SPECIAL AND CONSEQUENTIAL DAMAGES, 

  

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ATTORNEYS’ AND EXPERTS’ FEES, AND COURT COSTS (EVEN IF UNIVERSITY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, FEES OR COSTS), ARISING OUT
OF OR IN CONNECTION WITH THE MANUFACTURE, USE OR SALE OF THE PRODUCT(S) AND SERVICE(S) BY LICENSEE, ITS AFFILIATES OR SUBLICENSEES LICENSED UNDER THIS AGREEMENT. SUBJECT TO THE TERMS OF THIS AGREEMENT, LICENSEE ASSUMES ALL RESPONSIBILITY AND
LIABILITY FOR LOSS OR DAMAGE CAUSED BY A PRODUCT THAT IS MANUFACTURED, USED OR SOLD BY LICENSEE WHICH IS LICENSED TECHNOLOGY HEREUNDER. 
 ARTICLE 8 
 Assignment 
 8.1 This Agreement is not assignable without the prior written consent of University, which shall not be unreasonably withheld, and any attempt to assign without such consent shall be null and void. Notwithstanding the foregoing, Licensee
may assign this Agreement, without prior consent, to its Affiliates and to a third party in connection with any merger or sale of all or substantially all of its assets or capital stock. 
 ARTICLE 9 
 Termination 
 9.1 University shall have the right to terminate this Agreement, upon written notice, if: 
 (a) Licensee defaults in the performance of any of the obligations herein contained and such default has not been cured within forty-five
(45) days after receiving written notice thereof from University; 
 (b) Licensee ceases to carry out its business,
becomes bankrupt or legally insolvent, applies for or consents to the appointment of a trustee, receiver or liquidator of its assets or seeks relief under any law for the aid of debtors; or 
 (c) Licensee directly or indirectly challenges or causes to be challenged the validity or enforceability of Licensor’s Patent Rights
or Licensor’s ownership of the Patent Rights anywhere in the world (except in the defense of any action initiated by Licensor). 
  

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 9.2 Licensee may terminate this Agreement upon six (6) months prior written notice to University and
upon payment of all amounts due University through the effective date of termination. 
 9.3 Upon termination of this Agreement, neither
party shall be released from any obligation that matured prior to the effective date of such termination. Licensee may, however, after the effective date of such termination, sell all products under the Licensed Technology which Licensee produced
prior to the effective date of such termination, provided that Licensee shall pay to University the royalties thereon as required by Article 4 hereof and submit the reports required by Article 5 hereof. The provisions of Article 1, 2.5, 5.4, 7, 9,
and 11 shall survive termination of this Agreement. 
 ARTICLE 10 
 Notices 
 Any notice or communication pursuant to this Agreement shall be
sufficiently made or given if sent by certified or registered mail, postage prepaid, or by overnight carrier, with proof of delivery by receipt, addressed to the address below or as either party shall designate by written notice to the other party.

 In the case of University: 
 Associate Vice Chancellor for Technology 
 Management and Commercialization 
 Office of Technology Management 
 University of Pittsburgh 
 200 Gardner Steel Conference Center 
 Thackeray & O’Hara Streets 
 Pittsburgh, PA 15260 
 In the case of Licensee: 
 Precision Therapeutics, Inc. 
 2516 Jane Street 
 Pittsburgh, PA 15203 
 Attention: Chief Executive Officer 
  

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 ARTICLE 11 
 Miscellaneous 
 11.1 This Agreement may not be amended or modified except by the execution of a
written instrument signed by the parties hereto. 
 11.2 This Agreement shall be construed and interpreted in accordance with the laws of the
Commonwealth of Pennsylvania. The forum for any action relating to this Agreement shall be the Courts of Allegheny County, Pennsylvania, or, if in a federal proceeding, the United States District Court for the Western District of Pennsylvania.

 11.3 The parties acknowledge that this Agreement and the Exhibits hereto set forth the entire understanding and intentions of the parties
hereto as to the subject matter hereof and supersedes all previous understandings between the parties, written or oral, regarding such subject matter. 
 11.4 Nothing contained in this Agreement shall be construed as conferring upon either party any right to use in advertising, publicity or other promotional activities any name, trade name, trademark, or other
designation of the other party, including any contraction, abbreviation, or simulation of any of the foregoing. Without the express written approval of the other party, neither party shall use any designation of the other party in any promotional
activity associated with this Agreement or the Licensed Technology. Neither party shall issue any press release or make any public statement in regard to this Agreement without the prior written approval of the other party, except as required by
applicable laws or regulations, including the rules of any applicable securities exchange. 
 11.5 If one or more of the provisions of this
Agreement shall be held invalid, illegal or unenforceable, the remaining provisions shall not in any way be affected or impaired thereby. In the event any provision is held illegal or unenforceable, the parties shall use reasonable efforts to
substitute a valid, legal and enforceable provision which, insofar as is practical, implements purposes of the provision held invalid, illegal or unenforceable. 
 11.6 Failure at any time to require performance of any of the provisions herein shall not waive or diminish a party’s right thereafter to demand compliance therewith or with any other provision. Waiver of any
default shall not waive any other default. A party shall not be 

  

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deemed to have waived any rights hereunder unless such waiver is in writing and signed by a duly authorized officer of the party making such waiver.

 11.7 This Agreement is intended for the parties hereto and no other party may claim rights hereunder, whether as a third party beneficiary
or otherwise. 
 [remainder of page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the parties have set their hands and seals as of the date set forth on the first page
hereof. 
  

			
	UNIVERSITY OF PITTSBURGH – OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION
		
	By	 	/s/ Jerome Cochran
		 	 Jerome Cochran
 Executive Vice
Chancellor

	
	Precision Therapeutics, Inc.
		
	By	 	/s/ Sharon Kim
		 	Name Sharon Kim
		 	Title VP, Business Development

  

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 EXHIBIT A 
 Patent Rights 
  

					
		 	 METHOD AND APPARATUS FOR HOLDING CELLS
 US Patent
6,008,010
 Filed: November 1, 1996.
 Issued:
December 28, 1999
	 	
			
		 	 A METHOD AND APPARATUS FOR HOLDING CELLS
 Australian Patent 742909
 Filed: October 31, 1997
 Issued: May 2, 2002
 Priority: November 1, 1996
	 	
			
		 	 A METHOD AND APPARATUS FOR HOLDING CELLS
 Australian Divisional Patent 772487
 Filed: February 2, 2002
 Issued: June 21, 2004
 Priority: November 1, 1996
	 	
			
		 	 METHOD AND APPARATUS FOR HOLDING CELLS
 US
continuation application 09/292,056
         Filed: April 14, 1999
 Pending
 Priority: November 1, 1996
	 	
			
		 	 METHOD AND APPARATUS FOR HOLDING CELLS
         US continuation II application 10/114,892
 Filed: April 2, 2002
 Pending
 Priority: November 1, 1996
	 	
			
		 	 METHOD AND APPARATUS FOR HOLDING CELLS
         EPO patent application 97946422.9
 Filed: October 31, 1997
 Pending
 Priority: November 1, 1996
	 	
			
		 	 A METHOD AND APPARATUS FOR HOLDING CELLS
         Canadian patent application 2,239,815
 Filed: October 31, 1997
 Pending
 Priority: November 1, 1996
	 	
			
		 	 METHOD AND APPARATUS FOR HOLDING CELLS
         Japanese patent application HEI. 10-521601
 Filed: October 31, 1997
 Pending
 Priority: November 1, 1996.
	 	
			
		 	 METHOD AND APPARATUS FOR HOLDING CELLS
         PCT/US97/19834
 Expired
 Priority: November 1, 1996.Separation Letter

 Exhibit 10.1 
  

			
	

	  	 Cardinal Health
 7000 Cardinal Place
 Dublin, OH 43017 614-757-5000 main
  
 www.cardinal.com

 November 2, 2007 
 Mark Parrish 
 7000 Cardinal Place 
 Dublin, Ohio 43017

 Dear Mark: 
 In accordance with our discussions, this letter
will serve to specify the terms of your separation from Cardinal Health, Inc. (the “Company”) under your offer letter dated November 8, 2006 (“Offer Letter”). All terms and conditions of the Offer Letter remain in force and
are supplemented by the terms of this letter. In addition, you acknowledge that you are bound by the Confidentiality and Business Protection Agreement effective as of November 8, 2006, and that the same remains in full force and effect and
survives the termination of your employment with the Company. 
  

	 	1.	You will cease to be an officer of Cardinal Health, Inc. and any of its affiliates on November 5, 2007. You agree to provide a letter of resignation to this effect. Your
separation as an employee of Cardinal Health, Inc. will be effective November 30, 2007 (“Date of Termination”). This date will be your last day of active full-time employment. By signing below, you acknowledge your resignation from
all positions with the Company and its affiliates effective on the Date of Termination. 

  

	 	2.	The termination of your employment will qualify as a Payment Termination as set forth in Paragraph 8 of the Offer Letter, entitling you to the severance benefits set forth therein.
The first seven (7) months of severance payments shall be payable as soon as administratively practicable after June 1, 2008, with interest to the date of payment at the Prime Rate as published in the Wall Street Journal on the Date of
Termination, as described in the Offer Letter. The date of payment for the first seven (7) months of severance is expected to be June 13, 2008, with subsequent installments payable on the first regular payroll date of each month
thereafter. 

  

	 	3.	In accordance with the provisions of the Offer Letter, your termination will be considered to qualify as a “retirement” under the terms of your outstanding equity awards.
A schedule is attached to this letter setting forth the portion of such equity awards that will vest as a result of your termination and specifying the date of expiration of your outstanding options. 

  

	 	4.	In addition to the severance payments described above, you will be paid for any unused accrued PTO as of the Date of Termination. 

  

	 	5.	The Company will also subsidize the continued coverage of you and any family members covered at the Date of Termination under the health and medical benefit plan of the Company
(including prescription drug, dental and vision coverage, as applicable) for the one year period of your severance payments at the same level of employer contribution applicable to similarly situated active employees of the Company during the
severance period. This subsidy will be taxable as additional income to you during the severance period. In addition, it is agreed that your continued health and medical coverage is provided in accordance with Internal Revenue Code
Section 4980B, commonly referred to as “COBRA coverage,” with your COBRA coverage commencing on December 1, 2007. 

	 	6.	Under the terms of the FY 2006 – FY 2008 Long-Term Incentive Cash Program, you will not be eligible for the payment of an award. In addition, you will not be eligible for a
payment under the Amended and Restated Management Incentive Plan for FY 2008 or under the Long-Term Incentive Cash Program for FY 2008 – FY 2010. 

  

	 	7.	The Company will provide you with reasonable outplacement services for a period of time not exceeding one year from the Date of Termination. 

  

	 	8.	In consideration of the additional benefits provided hereunder, including but not limited to the subsidy for your COBRA coverage and outplacement services, you agree to execute,
simultaneously herewith, a release in the form attached as Exhibit “A”. 

  

	 	9.	Finally, you will have the opportunity to review in advance the internal and external announcements regarding your separation from the Company, which are expected to occur on
November 5, 2007. 

 Mark, please indicate your agreement by signing below. 
  

	
	Sincerely,
	
	 /s/ R. Kerry Clark
  

	 R. Kerry Clark
 President & Chief Executive
Officer

 Enclosures 
  

					
	Agreed to and accepted:	 		 	
			
	/s/ Mark W. Parrish	 		 	 Nov. 4, 2007

	Mark Parrish	 		 	Date

 Schedule to Separation Agreement dated Oct 31, 2007 
 Mark Parish 
 Outstanding Equity Summary 
 Date of Termination: 11/30/2007 
  

																										
	 Grant
Date
	 	Original
Grant
Expiration
Date	 	Grant Type	 	#
Granted	 	Price	 	#
Outstanding	 	# of Vested
Outstanding
(vested prior
to
acceleration)	 	# Vested
Due to
Acceleration
at DOT	 	Total
Vested
at DOT	 	Previously
Exercised
or Lapsed	 	#
Cancelled	 	Exercisable Date	 	 Notes

	 03/01/99
	 	03/01/09	 	Non-Qualified	 	14,898	 	$	47.33	 	13,243	 	13,243	 	0	 	13,243	 	1,655	 	0	 	11/30/07 to 03/01/09	 	Partial exercise on 05/09/06
	 11/15/99
	 	11/15/09	 	Non-Qualified	 	28,877	 	$	31.17	 	28,877	 	28,877	 	0	 	28,877	 	0	 	0	 	11/30/07 to 11/15/09	 	
	 11/20/00
	 	11/20/10	 	Non-Qualified	 	21,620	 	$	66.08	 	21,620	 	21,620	 	0	 	21,620	 	0	 	0	 	11/30/07 to 11/20/10	 	
	 07/02/01
	 	07/02/11	 	Non-Qualified	 	6,500	 	$	68.75	 	6,500	 	6,500	 	0	 	6,500	 	0	 	0	 	11/30/07 to 07/02/11	 	
	 11/19/01
	 	11/19/11	 	Non-Qualified	 	26,725	 	$	68.10	 	26,725	 	26,725	 	0	 	26,725	 	0	 	0	 	11/30/07 to 11/19/11	 	
	 11/18/02
	 	11/18/12	 	Non-Qualified	 	32,401	 	$	67.90	 	32,401	 	32,401	 	0	 	32,401	 	0	 	0	 	11/30/07 to 11/18/12	 	
	 01/08/03
	 	01/08/13	 	Non-Qualified	 	16,000	 	$	62.48	 	16,000	 	16,000	 	0	 	16,000	 	0	 	0	 	11/30/07 to 01/08/13	 	
	 11/17/03
	 	11/17/13	 	Non-Qualified	 	44,477	 	$	61.38	 	44,477	 	44,477	 	0	 	44,477	 	0	 	0	 	11/30/07 to 11/17/13	 	
	 11/17/03
	 	11/17/13	 	Non-Qualified	 	5,000	 	$	61.38	 	5,000	 	5,000	 	0	 	5,000	 	0	 	0	 	11/30/07 to 11/17/13	 	
	 08/23/04
	 	08/23/14	 	Non-Qualified	 	85,000	 	$	44.15	 	85,000	 	85,000	 	0	 	85,000	 	0	 	0	 	11/30/07 to 08/23/14	 	
	 09/02/05
	 	09/02/12	 	Non-Qualified	 	52,076	 	$	58.88	 	52,076	 	26,038	 	17,027	 	43,065	 	0	 	9,011	 	11/30/07 to 09/02/12	 	
	 09/02/05
	 	09/02/12	 	Restricted	 	7,439	 	$	0.00	 	4,839	 	2,359	 	1,853	 	4,212	 	2,600	 	627	 	N/A	 	First tranche lapsed on 9/2/06; additional 121 shares withheld on 9/2/07; balance deferred until 12 months after separation
	 08/15/06
	 	08/15/13	 	Non-Qualified	 	46,612	 	$	66.34	 	46,612	 	11,653	 	16,307	 	27,960	 	0	 	18,652	 	11/30/07 to 08/15/13	 	
	 08/15/06
	 	08/15/13	 	Restricted	 	6,659	 	$	0.00	 	4,440	 	0	 	2,389	 	2,389	 	2,219	 	2,051	 	N/A	 	First tranche lapsed on 8/15/07
	 11/15/06
	 	11/15/13	 	Non-Qualified	 	35,000	 	$	63.52	 	35,000	 	8,750	 	9,859	 	18,609	 	0	 	16,391	 	11/30/07 to 11/15/13	 	
	 11/15/06
	 	11/15/13	 	Restricted	 	5,000	 	$	0.00	 	5,000	 	1,666	 	1,445	 	3,111	 	0	 	1,889	 	N/A	 	
	 11/15/06
	 	11/15/13	 	Restricted	 	30,000	 	$	0.00	 	30,000	 	0	 	30,000	 	30,000	 	0	 	0	 	N/A	 	Deferred until 6 months after separation
	 11/15/06
	 	11/15/13	 	Restricted	 	5,000	 	$	0.00	 	5,000	 	0	 	5,000	 	5,000	 	0	 	0	 	N/A	 	
	 08/15/07
	 	08/15/14	 	Non-Qualified	 	53,665	 	$	67.26	 	53,665	 	0	 	9,594	 	9,594	 	0	 	44,071	 	11/30/07 to 8/15/14	 	
	 08/15/07
	 	08/15/14	 	Restricted	 	12,489	 	$	0.00	 	12,489	 	0	 	2,232	 	2,232	 	0	 	10,257	 	N/A	 	

 Exhibit A 
 RELEASE 
 In exchange for the covenants, promises and other consideration set forth in the letter agreement dated
October 31, 2007 (the “Letter Agreement”), Mark Parrish (hereinafter “Executive”) for himself, his heirs, administrators, representatives, executors, successors and assigns (collectively “Releasors”) does hereby
irrevocably and unconditionally release, acquit and forever discharge Cardinal Health, Inc. (the “Company”), its subsidiaries and affiliates and their respective current and former shareholders, subsidiaries, parents, affiliates,
divisions, trustees, partners, agents, directors, officers and employees, including, without limitation, all persons acting by, through, under or in concert with any of them (collectively, “Releasees”), and each of them from any and all
charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, remedies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs) of any
nature whatsoever arising out of or relating to his employment relationship, or the termination of that relationship, with the Company and its subsidiaries and affiliates, known or unknown, whether in law or equity and whether arising under federal,
state or local law and in particular including any claim for discrimination based upon race, color, ethnicity, sex, age (including the Age Discrimination in Employment Act of 1967, as amended (“ADEA”)), national origin, religion,
disability, or any other unlawful criterion or circumstances, which the Executive and Releasors had, now have, or may have in the future against each or any of the Releasees from the beginning of the world until the date hereof. 
 Exclusions from Release. Anything herein to the contrary notwithstanding, nothing herein shall release the Company from any claims or damages based on
(A) any right or claim that arises after the date hereof, (B) any right the Executive may have under the Offer Letter, dated November 8, 2006, (“Offer Letter”), the Letter Agreement, or any applicable equity or benefit plan,
policy, program or other agreement or arrangement with the Company, including Executive’s outstanding equity agreements, or (C) the Executive’s rights to indemnification under the Company’s Code of Regulations and the indemnity
agreement between the Company and the Executive. The parties agree that this Release shall not affect the rights and responsibilities of the U.S. Equal Employment Opportunity Commission (hereinafter “EEOC”) to enforce ADEA and other laws.
In addition, the parties agree that this Release shall not be used to justify interfering with the Executive’s protected right to file a charge or participate in an investigation or proceeding conducted by the EEOC. The parties further agree
that the Executive knowingly and voluntarily waives all rights or claims that arose prior to the date hereof that the Releasors may have against the Releasees, or any of them, to receive any benefit or remedial relief (including, but not limited to,
reinstatement, back pay, front pay, damages, attorneys’ fees, experts’ fees) as a consequence of any investigation or proceeding conducted by the EEOC. 
 ADEA Rights. The Executive acknowledges that: (A) this entire Release is written in a manner calculated to be understood by him; (B) he has been advised to consult with an attorney before executing this Release; (C) he
was given a period of twenty-one days within which to consider this Release; and (D) to the extent he executes this Release before the expiration of the twenty-one-day period, he does so knowingly and voluntarily and only after consulting his
attorney. The Executive shall have the right to cancel and revoke this Release during a period of seven days following the date hereof, and this Release shall not become effective, and no money shall be paid under the Letter Agreement, until the day
after the expiration of such seven-day period. The seven-day period of revocation shall commence upon the date of execution below. In order to revoke this Release, the Executive shall deliver to the Company’s Chief Legal Officer, prior to the
expiration of said seven-day period, a written notice of revocation. Upon such revocation, this Release and the Letter Agreement shall be null and void and of no further force or effect. 
  

							
				
	  	 		 	Date:	 	  
	Mark Parrish

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