Document:

8-K

Exhibit 10.1  

YA GLOBAL INVESTMENTS,
L.P. 

101 Hudson Street,
Suite 3700 

Jersey City, NJ 07302  

August 7, 2009 

Global Energy, Inc.

Migdal Aviv

7 Abba Hillel Street

Ramat Gan, 52520

Israel

Attention: Asi Shalgi

Dear Mr. Shalgi: 

        Reference
is made to that certain Securities Purchase Agreement dated July 6, 2007 (the
“Securities Purchase Agreement”) between Global Energy, Inc. (the
“Company”) and YA Global Investments, L.P. (the “Buyer”)
and the secured convertible debentures (collectively, the “Existing
Debentures”) and warrants (the “Warrants”) issued thereunder.
The Company and the Buyer have agreed to make certain modifications to the rights and
obligations of each party under the Securities Purchase Agreement, Existing Debentures,
and related documents and instruments. For the purposes hereof the Securities Purchase
Agreement, the Existing Debentures, the Warrants, along with all security agreement, and
other documents and instruments executed in connection with the forgoing shall be referred
to herein as the “Transaction Documents.” 

        The
parties agree that the table below sets forth the correct amounts outstanding under the
Existing Debentures as of the date listed below: 

	Issuance Date
	Outstanding Principal

Amount
	Accrued and Unpaid Interest

(as of July 16, 2009)
	Total

				
				
				
				 
	July 6, 2007	 	 	$	   360,108	 	$	    69,582	 	$	   429,690	 
	October 23, 2007	 	 	$	 1,500,000	 	$	   207,856	 	$	 1,707,856	 
	December 7, 2007	 	 	$	 1,000,000	 	$	   132,926	 	$	 1,132,296	 
	March 20, 2008	 	 	$	   500,000	 	$	    59,940	 	$	   559,940	 
	May 13, 2008	 	 	$	   500,000	 	$	    56,553	 	$	   556,553	 
	TOTAL 	  	  	$ 	 3,860,108 	  	$ 	 526,857 	  	$ 	 4,386,965 	  

All capitalized terms not otherwise
defined herein shall have the meaning assigned to them in the Transaction Documents, as
applicable. 

        The
Company is seeking to raise additional financing by issuing common stock (the
“Offering”) pursuant to the terms set forth hereto as Exhibit A
(the “Term Sheet”). This letter shall set forth the agreement between the
parties concerning the Offering and amendments and modifications to the Transaction
Documents. 

1.       Acknowledgements.
The Company hereby acknowledges, confirms and agrees as                follows:  

	 	a. 	The
Company is indebted to the Buyer under the Existing Debentures in the
               principal amount along with all accrued and unpaid interest reflected
above.                Such amounts owed, including without limitation all interest
accruing thereon,                premiums, costs, expenses, and fees (collectively, the
               “Obligations”) now or hereafter payable by the Company to
the                Buyer pursuant to the Transaction Documents are unconditionally owing
by the                Company to the Buyer, without offset, setoff, defense or
counterclaim of any                kind, nature or description whatsoever. 

	 	b. 	That:
(1) each of the Transaction Documents to which it is a party has been
               duly executed and delivered to the Buyer by the Company, and each is in
full                force and effect as of the date hereof, (2) the agreements and
obligations                of the Company contained in such documents and in this
Agreement constitute the                legal, valid and binding obligations of the
Company, enforceable against it in                accordance with their respective terms,
and to the Company’s knowledge, the                Company has no valid defense to
the enforcement of such obligations, (3)                the Buyer is and shall be
entitled to the rights, remedies and benefits provided                for in the
Transaction Documents and applicable law, without offset, setoff,                defense
or counterclaim of any kind, nature or descriptions whatsoever, and (4)                to
the Company’s knowledge, the Company has no claims, actions, cause of
               action, suits, judgments, and demands whatsoever, in law, admiralty or
equity,                against the Buyer or its affiliates, in respect of or in
connection with the                Transaction Documents. 

	 	c. 	The
Buyer has not waived, is not by this Agreement waiving, and has no
               intentions of waiving, any Events of Default which may be continuing on
the date                hereof or any Events of Default which may occur after the date
hereof, and the                Buyer has not agreed to forbear with respect to any of its
rights or remedies                concerning any Events of Default which may have
occurred or are continuing as of                the date hereof or which may occur after
the date hereof. 

	 	d. 	The
Company hereby acknowledges, confirms and agrees that the Buyer has and
               shall continue to have valid, enforceable and perfected first-priority
liens                upon and security interests in the pledged property heretofore
granted to the                Buyer pursuant to the Security Agreement dated July 6, 2007
between the Company                and the Buyer (the “Security Agreement”)
or otherwise granted                to or held by the Buyer. 

2.        The
Offering. The Buyer hereby consents to the Company conducting and
               closing on the Offering in accordance with the terms set forth in the Term
               Sheet, provided however, that such consent shall not be effective until
the                satisfaction, waiver or deferral of each of the following conditions
and written                notice from the Buyer confirming the satisfaction of such
conditions (such date                of notice of satisfaction shall be referred to as
the Effective Date):  

	 	a. 	The
gross proceeds of the Offering are at least $650,000 (“Minimum
               Offering Amount”); 

	 	b. 	The
Company closes on the Minimum Offering Amount on or before September 3,
               2009, unless extended in writing by the Buyer (the “Closing
               Deadline”); 

	 	c. 	The
Company shall have issued and delivered to the Buyer the Amended and
               Restated Debenture (as defined below) in exchange for the surrender of the
               Existing Debentures, to be effective as of the Effective Date; 

	 	d. 	The
Company shall provide a cash flow projection budget (the                “Budget”)
in a form acceptable to the Buyer, which Budget shall                demonstrate that the
proceeds from the Offering will be sufficient to fund the                Company’s
operations for a period of at least 12 months from the Effective                Date; 

	 	e. 	The
Company shall have made cash payments under the Existing Debentures in an
               amount greater than or equal to $50,000 since April 1, 2009, of which
$20,000                has been paid and the remaining $30,000 shall be paid on or prior
to the                Effective Date. The Company may satisfy this condition by paying
the remaining                balance directly out of the proceeds of the Offering; and 

	 	f. 	The
Company shall have received a written notice from YA Global confirming that
               all of the conditions set forth above have been satisfied. 

3.        Agreements
Effective upon Effective Date. The Buyer and the Company                hereby agree
to the following, provided however, that the agreements contained                in this
section shall only become effective upon the Effective Date:  

	 	a. 	Amended
Debenture. On the Effective Date the Company shall issue to the                Buyer
an amended and restated convertible debenture (the “Amended and
               Restated Debenture”) in the form attached hereto as “Exhibit
               B” in the principal amount equal to the outstanding principal
amount                and accrued and unpaid interest under the Existing Debentures as of
the                Effective Date. The Amended and Restated Debenture shall be issued
solely in                exchange for the surrender of the Existing Debentures. When
issued in accordance                with this Agreement, the Amended and Restated
Debenture shall amend, replace,                and supersede each of the Existing
Debentures and consolidate all amounts owed                under such Existing Debentures
and the Buyer shall return the Existing                Debentures to the Company. The
Amended and Restated Debenture shall modify the                Existing Debentures as
follows: s

	 	i. 	Payments.
All payment by the Company under the Existing Debentures will be                suspended
pursuant to the Amended and Restated Debenture for a period of one                year
from the Effective Date. Monthly payments in the amount of $225,000 each
               shall resume on the first day of the month preceding the month in which
the                one-year anniversary of the Effective Date occurs.  

	 	ii. 	Redemption.
The Company shall have the option to redeem up to $3,000,000 of the
               outstanding principal and unpaid interest owed the Existing Debentures at
any                time with 15 days prior written notice to the Buyer at a redemption
price equal                to 115% of the amount being redeemed in accordance with the
Amended and Restated                Debenture.  

	 	iii. 	Conversion
Price. The Conversion Price of the Existing Debentures shall be                reduced to
the effective price of the Common Stock issued in connection with the
               Offering.  

	 	b. 	Warrants.
The exercise price of the Warrants shall be reduced to the                effective price
of the Common Stock issued in connection with the Offering. The                number of
shares underlying the Warrants shall not be changed, provided that
               warrants or other Common Stock purchase rights are not issued in
connection with                the Offering. If any warrants or other Common Stock
purchase rights are issued                in connection with the Offering then the
Company shall issue new warrants to the                Buyer such that the proportion of
warrant shares to the amount of the                Buyer’s initial investment is
equal to proportion of warrant shares to the                amount of the new investment
in the Offering. Any such new warrants shall have                an exercise price equal
to the price of the Common Stock issued in connection                with the Offering. 

	 	c. 	Rule
144 Tacking Period. The Company represents, warrants, and agrees the
               Amended and Restated Debenture is being issued solely in exchange for the
               Existing Debentures and that for the purposes of Rule 144, the Amended and
               Restated Debenture shall be deemed to have been acquired at the same time
as the                surrendered Existing Debentures, which are the dates referenced
next to each of                the Existing Debentures in the table above, in all cases
is prior to one year                from the date hereof. 

	 	d. 	Buyer’s
Lock up Provision. During any calendar month beginning with                the month
in which the Effective Date occurs and ending with the calendar month
               preceding the month in which the one-year anniversary of the Effective
Date                occurs, except for Excluded Sales (as defined below), the Buyer shall
not sell                shares of Common Stock for gross proceeds (measured by the
quantity of shares                sold multiplied by the sales price) of greater than (a)
$50,000, or (b) 20% of                the aggregate dollar traded volume traded during
the preceding calendar month                (as measured by multiplying the total volume
traded in such month by the average                price during such month according to
Bloomberg LP). For the purposes hereof the                term “Excluded Sales” shall
mean any sales by the Buyer at a price of                five cents ($0.05) or more. 

4.        Representations,
Warranties, and Covenants or General Effect.  

	 	a. 	Budget.
The Company shall not exceed the total expenses listed on the                Budget by
more than 5% in any individual month, or in the aggregate at any time.                The
Company shall provide certified cash flow reports to the Buyer on the                1st and
15th of each month which shall show actual results                for each
period that has elapsed from the date hereof compared to the same                period
in the Budget. Any violation of this covenant shall be deemed an event of
               default under the Amended and Restated Debenture and the Transaction
Documents. 

	 	b. 	Further
Assurances. The Company shall, from and after the execution of                this
agreement, execute and deliver to the Buyer any additional documents,
               instruments, and agreements that the Buyer may require in order to correct
any                document deficiencies, or to vest or perfect the security interest in
the                collateral granted pursuant to the Security Agreement more securely in
the Buyer                and/or to otherwise give effect to the terms and conditions of
this agreement,                and hereby authorize the Buyer to file any financing
statements (including                financing statements with a generic description of
the collateral such as                “all assets”), and take any other normal
and customary steps, the                Buyer deems necessary to perfect or evidence the
Buyer’s security interests                and liens in any such collateral. The
Company shall pledge to the Buyer its                shares of capital stock of Alphakat
– Global Energy GmbH as required                pursuant to the Security Agreement.
The Company shall also make all necessary                filings in Israel required to
perfect and provide notice of the Buyer’s                liens on the assets of
Global Fuel Israel, Ltd. and Global NRG Pacific Ltd. or                provide the Buyer
evidence that all such filings have been made and recorded.                The Buyer
represents that the perfection certificate attached hereto as Exhibit C is true,
complete, and correct as of the date hereof. 

	 	c. 	Effect
of this Agreement. Except as modified pursuant hereto, no other
               changes or modifications to the Transaction Documents are intended or
implied                and in all other respects such documents are hereby specifically
ratified,                restated and confirmed by all parties hereto as of the effective
date hereof. 

	 	d. 	Each
party shall pay all its own costs and expenses regarding the entering of
               this Agreement. There are no other fees, charges or expenses other than as
set                out herein and in the Existing Debentures and ancillary documents. 

[SIGNATURE PAGE IMMEDIATELY TO FOLLOW] 

        IN
WITNESS WHEREOF, this letter agreement is executed and delivered as of the day and
year first above written. 

			GLOBAL ENERGY, INC.

By: /s/ Asi Shlagi
——————————————

Asi Shlagi
Chief Executive Officer

			YA GLOBAL INVESTMENTS, L.P.

By:   Yorkville Advisors, LLC
Its:   Investment Manager

By: /s/ 
——————————————

Name:
Title:

EXHIBIT A 

TERM SHEET 

AMENDMENT OUTLINE 

	

	GLOBAL ENERGY INC. 

	

Theamendment of YA Global
Investments, L.P. (the “Investor”) will be confirmed and finalized subject to
the satisfaction of each of the following terms and conditions:  

	Minimum Raise: 		Global Energy Inc ("GEYI" or the "Company") will raise a minimum of $650,000 in
                  new capital by the issuance of common stock of the Company or bridge
loans                   ("Financing"). 

	Reset Prices: 		The existing conversion price and warrant strike prices on the Investor's
                  convertible debentures and warrants will be reset to the issue price on
the common                   stock issued in the Follow-on Financing (the "Reset Price").
No new warrants or                   shares will be issued to the Investor as part of the
reset, except that if any                   warrants or other rights are issued in
connection with the Financing, the Company                   will issue new warrants or
similar rights to the Investor in the same proportion                   and at the same
price. 

	Repayments: 		All payments by the Company under the Debentures will be suspended for a period of
                  12 months from the close of the Financing, after which the Company
shall make full                   payment of the outstanding Debenture and accrued
interest amounts in accordance                   with the terms of Debentures. 

	 		The Investor
shall receive a payment of at least $50,000 in the aggregate either
                  from the proceeds of the sale of the Ethiopia business, or the
Financing, or a                   combination of the two. 

	Conversions: 		In
the first 12 months following the Financing if the quoted share price of the
                  Company is 5 cents or less the Investor shall be restricted from
selling shares of                   common stock in excess of the greater of (a) $50,000
per calendar month, or (b)                   20% of the aggregate dollar trading volume
of all shares traded during the                   preceding calendar month. 

	Redemption: 		The
Company shall have the option to redeem up to $3,000,000 of the outstanding
                  Debenture in cash on at least 15 days prior written notice to the
Investor. The                   Redemption premium shall be 15% and shall be paid upon
Redemption of any portion                   of the Debenture. 

	Budget/Burn: 		The
Company shall provide a budget indicating that the proceeds of the Financing
                  will sustain the Company for at least 12 months. 

	Expiry: 		The
terms herein will expire at 5p.m. on April 8, 2009. 

	Non-Binding: 		These
terms are for discussion purposes only, non-binding on the parties, and
subject to change. If final terms are reached they will be documents by
formal definitive documents setting forth the final agreed upon terms.  

SIGNATURE PAGE TO FOLLOW
GLOBAL
ENERGY, INC.  

			

By: /s/ Shalgi Asi
——————————————

Name: Shalgi Asi
Title:   President

			YA GLOBAL INVESTMENTS, L.P.
By: Yorkville Advisors, LLC
Its: Investment Manager

			

By: /s/ Gerald Eicke
——————————————

Name: Gerald Eicke
Title:   Managing Member

EXHIBIT B 

FORM OF AMENDED AND
RESTATED DEBENTURE 

NEITHER THIS DEBENTURE NOR THE
SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE
SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. 

GLOBAL ENERGY INC.  

AMENDED AND RESTATED
SECURED CONVERTIBLE DEBENTURE 

		
		
		
		
		
	Issuance Date:  ______ __, 2009	Original Principal Amount: $4,___,___
	No. GEYI-1-6

This Amended and Restated Secured
Convertible Debenture (including all secured convertible debentures issued in exchange,
transfer or replacement hereof, this “Debenture”) is being issued
pursuant to that certain letter agreement dated July __, 2009 (the “Letter
Agreement”) solely in exchange for the Existing Debentures (as defined in the
Letter Agreement) and shall amend, replace, and supersede the Existing Debentures. The
Existing Debentures were acquired by the Holder, and fully paid for by the Holder, more
than one year prior to the Issuance Date of this Debenture. 

        FOR
VALUE RECEIVED, GLOBAL ENERGY, INC., a Nevada corporation (the
“Company”), hereby promises to pay to the order of YA GLOBAL INVESTMENTS,
L.P. (FORMERLY, CORNELL CAPITAL PARTNERS, L.P.) or registered assigns (the
“Holder”) the amount set out above as the Original Principal Amount (as
reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the
“Principal”) when due, whether upon the Maturity Date (as defined below),
on any Installment Date with respect to the Installment Amount due on such Installment
Date (each, as defined herein), acceleration, redemption or otherwise (in each case in
accordance with the terms hereof) and to pay interest (“Interest”) on any
outstanding Principal at the applicable Interest Rate from the date set out above as the
Issuance Date (the “Issuance Date”) until the same becomes due and
payable, whether upon an Interest Date (as defined below), any Installment Date or the
Maturity Date or acceleration, conversion, redemption or otherwise (in each case in
accordance with the terms hereof). This Debenture is issued in exchange for the secured
convertible debentures issued pursuant to the Securities Purchase Agreement (the
“Existing Debentures”). Certain capitalized terms used herein are defined
in Section 17. 

    (1)        GENERAL
TERMS 

		    (a)        Interest,
Installment Payments, Maturity. Interest shall accrue on the           outstanding
principal balance hereof at an annual rate equal to twelve percent           (12%) (“Interest
Rate”). Interest shall be calculated on the           basis of a 365-day year
and the actual number of days elapsed, to the extent           permitted by applicable
law. On each Installment Date, the Company shall pay to           the Holder an amount
equal to the Installment Amount due on such Installment           Date in accordance with
the terms and conditions of this Debenture. On the           Maturity Date, the Company
shall pay to the Holder an amount in cash           representing all outstanding
Principal and accrued and unpaid Interest. The           “Maturity Date” shall
be October 31, 2010. The Maturity Date           may be extended at the option of the
Holder in the event that, and for so long           as, an Event of Default (as defined
below) shall have occurred and be continuing           on the Maturity Date (as may be
extended pursuant to this Section 1) or any           event shall have occurred and be
continuing on the Maturity Date (as may be           extended pursuant to this Section 1)
that with the passage of time and the           failure to cure would result in an Event
of Default. Other than as specifically           permitted by this Debenture, the Company
may not prepay or redeem any portion of           the outstanding Principal without the
prior written consent of the Holder.           Unless otherwise set forth in this
Debenture all payments received by the Holder           hereunder shall be applied
towards amounts outstanding under this Debenture in           the sole discretion of the
Holder.  

		    (b)        Security.
The Company agrees and acknowledges that its obligations under           this Debenture
shall be secured by the pledge of certain assets of the Company           and its
subsidiaries granted pursuant to the Security Agreement dated July 6,           2007 in
favor of the Holder (the “Security Agreement”) and that           the
obligations under this Debenture are hereinafter expressly included as part           of
the “Obligations” as such term is defined and used in the Security
          Agreement.  

    (2)        EVENTS
OF DEFAULT. 

		    (a)        An
“Event of Default”, wherever used herein, means any one of           the
following events (whatever the reason and whether it shall be voluntary or
          involuntary or effected by operation of law or pursuant to any judgment, decree
          or order of any court, or any order, rule or regulation of any administrative
or           governmental body):  

		    (i)        The
Company’s failure to pay to the Holder any amount of Principal,           Interest,
or other amounts when and as due under this Debenture (including,           without
limitation, the Company’s failure to pay any redemption payments or
          amounts hereunder) or any other Transaction Document;  

		    (ii)        The
Company or any subsidiary of the Company shall commence, or there shall be
          commenced against the Company or any subsidiary of the Company under any
          applicable bankruptcy or insolvency laws as now or hereafter in effect or any
          successor thereto, or the Company or any subsidiary of the Company commences
any           other proceeding under any reorganization, arrangement, adjustment of debt,
          relief of debtors, dissolution, insolvency or liquidation or similar law of any
          jurisdiction whether now or hereafter in effect relating to the Company or any
          subsidiary of the Company or there is commenced against the Company or any
          subsidiary of the Company any such bankruptcy, insolvency or other proceeding
          which remains undismissed for a period of sixty one (61) days; or the Company
or           any subsidiary of the Company is adjudicated insolvent or bankrupt; or any
order           of relief or other order approving any such case or proceeding is
entered; or           the Company or any subsidiary of the Company suffers any
appointment of any           custodian, private or court appointed receiver or the like
for it or any           substantial part of its property which continues undischarged or
unstayed for a           period of sixty one (61) days; or the Company or any subsidiary
of the Company           makes a general assignment for the benefit of creditors; or the
Company or any           subsidiary of the Company shall fail to pay, or shall state that
it is unable to           pay, or shall be unable to pay, its debts generally as they
become due; or the           Company or any subsidiary of the Company shall call a
meeting of its creditors           with a view to arranging a composition, adjustment or
restructuring of its           debts; or the Company or any subsidiary of the Company
shall by any act or           failure to act expressly indicate its consent to, approval
of or acquiescence in           any of the foregoing; or any corporate or other action is
taken by the Company           or any subsidiary of the Company for the purpose of
effecting any of the           foregoing;  

2

		    (iii)        The
Company or any subsidiary of the Company shall default in any of its
          obligations under any other debenture or any mortgage, credit agreement or
other           facility, indenture agreement, factoring agreement or other instrument
under           which there may be issued, or by which there may be secured or evidenced
any           indebtedness for borrowed money or money due under any long term leasing or
          factoring arrangement of the Company or any subsidiary of the Company in an
          amount exceeding $100,000, whether such indebtedness now exists or shall
          hereafter be created and such default shall result in such indebtedness
becoming           or being declared due and payable prior to the date on which it would
otherwise           become due and payable;  

		    (iv)        The
Common Stock shall cease to be quoted or listed for trading on a Primary           Market
for a period of five (5) consecutive Trading Days;  

		    (v)        The
Company or any subsidiary of the Company shall be a party to any Change of
          Control Transaction (as defined in Section 6) unless in connection with such
          Change of Control Transaction this Debenture is retired;  

		    (vi)        the
Company’s (A) failure to cure a Conversion Failure by delivery of the
          required number of shares of Common Stock within five (5) Business Days after
          the applicable Conversion Failure or (B) notice, written or oral, to the
Holder,           including by way of public announcement, at any time, of the Company’s
          intention not to comply with a request for conversion of this Debenture into
          shares of Common Stock that is tendered in accordance with the provisions of
          this Debenture, other than pursuant to Section 4(c);  

		    (vii)        The
Company shall fail for any reason to deliver the payment in cash pursuant to           a
Buy-In (as defined herein) within three (3) Business Days after such payment           is
due;  

		    (viii)        The
Company shall fail to observe or perform any other covenant, agreement or
          warranty contained in, or otherwise commit any breach or default of any
          provision of this Debenture (except as may be covered by Section 2(a)(i)
through           2(a)(vii) hereof) or any Transaction Document which is not cured within
the time           prescribed.  

3

		    (b)        During
the time that any portion of this Debenture is outstanding, if any Event           of
Default has occurred, the full unpaid Principal amount of this Debenture,
          together with interest and other amounts owing in respect thereof, to the date
          of acceleration shall become at the Holder’s election, immediately due and
          payable in cash, provided that the Company has failed to cure such Event of
          Default within five (5) Business Days after the occurrence of the Event of
          Default, except with respect to an Event of Default under Section
          2(a)(iv)-(vii), which shall not have any additional cure period. Furthermore,
in           addition to any other remedies, the Holder shall have the right (but not the
          obligation) to convert this Debenture at the Company Conversion Price at any
          time after (x) an Event of Default, provided Company has failed to cure such
          Event of Default within five (5) Business Days after occurrence of the Event of
          Default, or (y) the Maturity Date. The Holder need not provide and the Company
          hereby waives any presentment, demand, protest or other notice of any kind,
          (other than required notice of conversion). Holder may enforce any and all of
          its rights and remedies hereunder and all other remedies available to it under
          applicable law. Holder’s notice of exercise of its rights hereunder may be
          rescinded and annulled by Holder at any time prior to payment hereunder. No
such           rescission or annulment shall affect any subsequent Event of Default or
impair           any right consequent thereon.  

    (3)        COMPANY
INSTALLMENT CONVERSION OR REDEMPTION.  

		    (a)        General.
On each applicable Installment Date, the Company shall pay to           the Holder of
this Debenture the Installment Amount due on such date by           converting such
Installment Amount into shares of Common Stock of the Company,           provided that
there is not then an Equity Conditions Failure, in accordance with           this Section
3 (a “Company Conversion”); provided, however,           that the
Company may, at its option following notice to the Holder, redeem such
          Installment Amount (a “Company Redemption”) or perform any
          combination of a Company Conversion and a Company Redemption so long as all of
          the outstanding applicable Installment Amount shall be converted and/or
redeemed           by the Company on the applicable Installment Date, subject to the
provisions of           this Section 3. On or prior to the date which is the fifth (5th)
          Trading Day prior to each Installment Date (each, an “Installment
Notice           Due Date”), the Company shall deliver written notice (each, a
          “Company Installment Notice”), to the Holder which Company
          Installment Notice shall (i) either (A) confirm that the applicable Installment
          Amount of the Holder’s Debenture shall be converted in whole pursuant to a
          Company Conversion or (B) (1) state that the Company elects to redeem, or is
          required to redeem in accordance with the provisions of the Debenture, in whole
          or in part, the applicable Installment Amount pursuant to a Company Redemption
          and (2) specify the portion (including Interest) which the Company elects or is
          required to redeem pursuant to a Company Redemption (such amount to be
redeemed,           the “Company Redemption Amount”) and the portion
(including           Interest), if any, that the Company elects to convert pursuant to a
Company           Conversion (such amount a “Company Conversion Amount”)
which           amounts when added together, must equal the applicable Installment Amount
and           (ii) if the Installment Amount is to be paid, in whole or in part, pursuant
to a           Company Conversion, certify that there is not then an Equity Conditions
Failure           as of the date of the Company Installment Notice. Each Company
Installment           Notice shall be irrevocable. If the Company does not timely deliver
a Company           Installment Notice in accordance with this Section 3, then the
Company shall be           deemed to have delivered an irrevocable Company Installment
Notice confirming a           Company Conversion and shall be deemed to have certified
that there is not then           an Equity Conditions Failure in connection with any such
conversion. The Company           Conversion Amount (whether set forth in the Company
Installment Notice or by           operation of this Section 3) shall be converted in
accordance with Section 3(b)           and the Company Redemption Amount shall be paid in
accordance with Section 3(c).  

4

		    (b)        Mechanics
of Company Conversion. Subject to Section 3(d), if the Company           delivers a
Company Installment Notice and elects, or is deemed to have elected,           in whole
or in part, a Company Conversion in accordance with Section 3(a), then           the
applicable Company Conversion Amount, if any, which remains outstanding as           of
the applicable Installment Date shall be converted as of the applicable
          Installment Date by converting on such Installment Date such Company Conversion
          Amount at the Company Conversion Price; provided that the Equity Conditions are
          then satisfied (or waived by the Holder) on such Installment Date and that the
          Installment Volume Limitation is not exceeded (unless waiver by the Holder). If
          the Equity Conditions are not satisfied (or waived in writing by the Holder) on
          such Installment Date or the Installment Volume Limitation is exceeded (unless
          waived by the Holder), then at the option of the Holder designated in writing
to           the Company, the Holder may require the Company to do any one or more of the
          following: (i) the Company shall redeem all or any part of the unconverted
          Company Conversion Amount designated by the Holder (such designated amount is
          referred to as the “Unconverted Redemption Amount”) and the
          Company shall pay to the Holder within three (3) Business Days of Company’s
          receipt of Holder’s notice, by wire transfer of immediately available
          funds, an amount in cash equal to such Unconverted Redemption Amount, and/or
          (ii) the Company Conversion shall be null and void with respect to all or any
          part of the unconverted Company Conversion Amount designated by the Holder and
          the Holder shall be entitled to all the rights of a holder of this Debenture
          with respect to such designated amount of the Company Conversion Amount.. If
the           Company fails to redeem any Unconverted Redemption Amount by the third
          (3rd) Business Day following receipt of notice from Holder
          instructing Company to repay such Unconverted Redemption Amount, then the
Holder           shall have all rights under this Debenture (including, without
limitation, such           failure constituting an Event of Default).  

		    (c)        Mechanics
of Company Redemption. If the Company elects a Company           Redemption in
accordance with Section 3(a), then the Company Redemption Amount,           if any, which
is to be paid to the Holder on the applicable Installment Date           shall be repaid
by the Company on such Installment Date, and the Company shall           pay to the
Holder on such Installment Date, by wire transfer of immediately           available
funds, an amount in cash (the “Company Installment Redemption           Price”)
equal to the Company Redemption Amount. If the Company fails to           redeem the
Company Redemption Amount on the applicable Installment Date by           payment of the
Company Installment Redemption Price on such date, then at the           option of the
Holder designated in writing to the Company (any such designation,           “Conversion
Notice” for purposes of this Debenture), the Holder           may require the
Company to convert all or any part of the Company Redemption           Amount into shares
of Common Stock of the Company at the Company Conversion           Price. Conversions
required by this Section 3(c) shall be made in accordance           with the provisions
of Section 4(b). Notwithstanding anything to the contrary in           this Section 3(c),
but subject to Section 4(c), until the Company Installment           Redemption Price
(together with any interest thereon) is paid in full, the           Company Redemption
Amount (together with any interest thereon) may be converted,           in whole or in
part, by the Holder into Common Stock pursuant to Section 4.  

5

		    (d)        Deferred
Installment Amount. Notwithstanding any provision of this           Section 3 to the
contrary, the Holder may, at its option and in its sole           discretion, elect to
have the payment of all or any portion of an Installment           Amount payable on the
next Installment Date deferred to the Maturity Date. Any           amount deferred to the
Maturity Date pursuant to this Section 3(d) shall           continue to accrue Interest
through the Maturity Date.  

		    (e)        Company’s
Additional Cash Redemption. The Company at its option shall have the right
to redeem (“Optional Redemption”) up to $3,000,000 of
outstanding Principal amount under the Debenture (less any amounts that have
been repaid, converted, or redeemed after the date Issuance Date of this
Debenture) in addition to any Installment Amount prior to the Maturity Date by
providing the Holder with at least five (5) days’ prior written notice and
provided that no Event of Default has occurred and is continuing on the
Redemption Notice date. The Company shall pay an amount equal to the Principal
amount being redeemed plus a redemption premium (“Redemption
Premium”) equal to fifteen percent (15%) of the Principal amount being
redeemed, together with accrued Interest (which shall not be subject to the
Redemption Premium), (collectively referred to as the “Company
Additional Redemption Amount”). In order to make an Optional
Redemption pursuant to this Section, the Company shall first provide written
notice to the Holder of its intention to make a redemption (the “Redemption
Notice”) setting forth the amount of Principal it desires to redeem
and the date of such redemption (which shall be at least 5 days from the date
of the Redemption Notice). After receipt of the Redemption Notice the Holder
shall have the right to elect to convert only the portion of this Debenture
that is outstanding and is not included in the Redemption Notice, and subject
to the limitations set forth in Section 4(c). On the redemption date set forth
in the Redemption Notice the Company shall deliver to the Holder the Company
Additional Redemption Amount. Notwithstanding anything to the contrary, failure
by the Company to pay the Company Additional Redemption Amount on the date due
shall be considered an Event of Default without any further passage of time or
cure period, and the Company acknowledges that the Holder may suffer additional
damages as a result of not being permitted to convert the amounts subject to
such redemption.  

    (4)        CONVERSION
OF DEBENTURE. This Debenture shall be convertible into shares           of the Company’s
Common Stock, on the terms and conditions set forth in           this Section 4.  

		    (a)        Conversion
Right. Subject to the provisions of Section 4(c), at any time           or times on
or after the Issuance Date, the Holder shall be entitled to convert           any portion
of the outstanding and unpaid Conversion Amount (as defined below)           into fully
paid and nonassessable shares of Common Stock in accordance with           Section 4(b),
at the Conversion Rate (as defined below). The number of shares of           Common Stock
issuable upon conversion of any Conversion Amount pursuant to this           Section 4(a)
shall be determined by dividing (x) such Conversion Amount by (y)           the
Conversion Price (the “Conversion Rate”). The Company shall
          not issue any fraction of a share of Common Stock upon any conversion. If the
          issuance would result in the issuance of a fraction of a share of Common Stock,
          the Company shall round such fraction of a share of Common Stock up to the
          nearest whole share. The Company shall pay any and all transfer, stamp and
          similar taxes that may be payable with respect to the issuance and delivery of
          Common Stock upon conversion of any Conversion Amount.  

6

		    (i)        “Conversion
Amount” means the portion of the Principal and           accrued Interest to be
converted, redeemed or otherwise with respect to which           this determination is
being made.  

		    (ii)        “Conversion
Price” means, as of any Conversion Date (as defined           below) or other
date of determination, [$0.02]1, subject to           adjustment as
provided herein.  

		    (b)        Mechanics
of Conversion.  

		    (i)        Optional
Conversion. To convert any Conversion Amount into shares of           Common Stock on
any date (a “Conversion Date”), the Holder           shall (A) transmit
by facsimile or electronic mail (with confirmation of           receipt), or otherwise
deliver, for confirmed receipt on or prior to 11:59 p.m.,           New York Time, on
such date, a copy of an executed notice of conversion in the           form attached
hereto as Exhibit I (the “Conversion           Notice”) to the
Company and (B) if required by Section 4(b)(iv),           surrender this Debenture to a
nationally recognized overnight delivery service           for delivery to the Company
(or an indemnification undertaking reasonably           satisfactory to the Company with
respect to this Debenture in the case of its           loss, theft or destruction). On or
before the third Trading Day following the           date of receipt of a Conversion
Notice (the “Share Delivery           Date”), the Company shall (X) if
legends are not required to be placed           on certificates of Common Stock pursuant
to the Securities Purchase Agreement           and provided that the Transfer Agent is
participating in the Depository Trust           Company’s (“DTC”)
Fast Automated Securities Transfer           Program, credit such aggregate number of
shares of Common Stock to which the           Holder shall be entitled to the Holder’s
or its designee’s balance           account with DTC through its Deposit Withdrawal
Agent Commission system or (Y)           if the Transfer Agent is not participating in
the DTC Fast Automated Securities           Transfer Program, issue and deliver to the
address as specified in the           Conversion Notice, a certificate, registered in the
name of the Holder or its           designee, for the number of shares of Common Stock to
which the Holder shall be           entitled which certificates shall not bear any
restrictive legends unless           required pursuant to Section 2(g) of the Securities
Purchase Agreement. If this           Debenture is physically surrendered for conversion
and the outstanding Principal           of this Debenture is greater than the Principal
portion of the Conversion Amount           being converted, then the Company shall as
soon as practicable and in no event           later than three (3) Trading Days after
receipt of this Debenture and at its own           expense, issue and deliver to the
holder a new Debenture representing the           outstanding Principal not converted.
The Person or Persons entitled to receive           the shares of Common Stock issuable
upon a conversion of this Debenture shall be           treated for all purposes as the
record holder or holders of such shares of           Common Stock upon the transmission
of a Conversion Notice.  

		    (ii)        Company’s
Failure to Timely Convert. If within three (3) Trading           Days after the
Company’s receipt of the facsimile or electronic copy of a           Conversion
Notice the Company shall fail to issue and deliver a certificate to           the Holder
or credit the Holder’s balance account with DTC for the number           of shares
of Common Stock to which the Holder is entitled upon the Holder’s
          conversion of any Conversion Amount (a “Conversion Failure”),
          and if on or after such Trading Day the Holder purchases (in an open market
          transaction or otherwise) Common Stock to deliver in satisfaction of a sale by
          the Holder of Common Stock issuable upon such conversion that the Holder
          anticipated receiving from the Company (a “Buy-In”), then the
          Company shall, within three (3) Business Days after the Holder’s request
          and in the Holder’s discretion, either (i) pay cash to the Holder in an
          amount equal to the Holder’s total purchase price (including brokerage
          commissions and other out of pocket expenses, if any) for the shares of Common
          Stock so purchased (the “Buy-In Price”),
          at which point the Company’s obligation to deliver such certificate (and
to           issue such Common Stock) shall terminate, or (ii) promptly honor its
obligation           to deliver to the Holder a certificate or certificates representing
such Common           Stock and pay cash to the Holder in an amount equal to the excess
(if any) of           the Buy-In Price over the product of (A) such number of shares of
Common Stock,           times (B) the Closing Bid Price on the Conversion Date.  

	
 

	
1 Insert
price of common stock issued pursuant to the Offering.  

7

		    (iii)        Book-Entry.
Notwithstanding anything to the contrary set forth herein,           upon conversion of
any portion of this Debenture in accordance with the terms           hereof, the Holder
shall not be required to physically surrender this Debenture           to the Company
unless (A) the full Conversion Amount represented by this           Debenture is being
converted or (B) the Holder has provided the Company with           prior written notice
(which notice may be included in a Conversion Notice)           requesting reissuance of
this Debenture upon physical surrender of this           Debenture. The Holder and the
Company shall maintain records showing the           Principal and Interest converted and
the dates of such conversions or shall use           such other method, reasonably
satisfactory to the Holder and the Company, so as           not to require physical
surrender of this Debenture upon conversion.  

		    (c)        Limitations
on Conversions, Sales. 

		    (i)        Beneficial
Ownership. The Company shall not effect any conversions of           this Debenture
and the Holder shall not have the right to convert any portion of           this
Debenture or receive shares of Common Stock as payment of interest           hereunder to
the extent that after giving effect to such conversion or receipt           of such
interest payment, the Holder, together with any affiliate thereof, would
          beneficially own (as determined in accordance with Section 13(d) of the
Exchange           Act and the rules promulgated thereunder) in excess of 4.99% of the
number of           shares of Common Stock outstanding immediately after giving effect to
such           conversion or receipt of shares as payment of interest. Since the Holder
will           not be obligated to report to the Company the number of shares of Common
Stock           it may hold at the time of a conversion hereunder, unless the conversion
at           issue would result in the issuance of shares of Common Stock in excess of
4.99%           of the then outstanding shares of Common Stock without regard to any
other           shares which may be beneficially owned by the Holder or an affiliate
thereof,           the Holder shall have the authority and obligation to determine
whether the           restriction contained in this Section will limit any particular
conversion           hereunder and to the extent that the Holder determines that the
limitation           contained in this Section applies, the determination of which
portion of the           principal amount of this Debenture is convertible shall be the
responsibility           and obligation of the Holder. If the Holder has delivered a
Conversion Notice           for a principal amount of this Debenture that, without regard
to any other           shares that the Holder or its affiliates may beneficially own,
would result in           the issuance in excess of the permitted amount hereunder, the
Company shall           notify the Holder of this fact and shall honor the conversion for
the maximum           principal amount permitted to be converted on such Conversion Date
in accordance           with Section 4(a) and, any principal amount tendered for
conversion in excess of           the permitted amount hereunder shall remain outstanding
under this Debenture.           The provisions of this Section may be waived by a Holder
(but only as to itself           and not to any other Holder) upon not less than 65 days
prior notice to the           Company. Other Holders shall be unaffected by any such
waiver.  

8

		    (ii)        Lock
Up. During any calendar month beginning with the month of 2 ______ 2009
and ending with, and including, the           month of 3 _______ 2010,
except for Excluded Sales (as           defined below), the Buyer shall not sell shares
of Common Stock for gross           proceeds (measured by the quantity of shares sold
multiplied by the sales price)           of greater than (a) $50,000, or (b) 20% of the
aggregate dollar traded volume           traded during the preceding calendar month (as
measured by multiplying the total           volume traded in such month by the average
price during such month according to           Bloomberg LP). For the purposes hereof the
term “Excluded Sales” shall           mean any sales by the Buyer at a price of
five cents ($0.05) or more.  

		    (d)        Other
Provisions.  

		    (i)        The
Company shall at all times reserve and keep available out of its authorized
          Common Stock the full number of shares of Common Stock issuable upon conversion
          of all outstanding amounts under this Debenture; and within three (3) Business
          Days following the receipt by the Company of a Holder’s notice that such
          minimum number of Underlying Shares is not so reserved, the Company shall
          promptly reserve a sufficient number of shares of Common Stock to comply with
          such requirement.  

		    (ii)        All
calculations under this Section 4 shall be rounded to the nearest $0.0001 or
          whole share.  

		    (iii)        The
Company covenants that it will at all times reserve and keep available out           of
its authorized and unissued shares of Common Stock solely for the purpose of
          issuance upon conversion of this Debenture and payment of interest on this
          Debenture, each as herein provided, free from preemptive rights or any other
          actual contingent purchase rights of persons other than the Holder, not less
          than such number of shares of the Common Stock as shall (subject to any
          additional requirements of the Company as to reservation of such shares set
          forth in this Debenture or in the Transaction Documents) be issuable (taking
          into account the adjustments and restrictions set forth herein) upon the
          conversion of the outstanding principal amount of this Debenture and payment of
          interest hereunder. The Company covenants that all shares of Common Stock that
          shall be so issuable shall, upon issue, be duly and validly authorized, issued
          and fully paid, nonassessable and, if the Underlying Shares Registration
          Statement has been declared effective under the Securities Act, registered for
          public sale in accordance with such Underlying Shares Registration Statement.  

		    (iv)        Nothing
herein shall limit a Holder’s right to pursue actual damages or           declare an
Event of Default pursuant to Section 2 herein for the Company ‘s           failure
to deliver certificates representing shares of Common Stock upon           conversion
within the period specified herein and such Holder shall have the           right to
pursue all remedies available to it at law or in equity including,           without
limitation, a decree of specific performance and/or injunctive relief,           in each
case without the need to post a bond or provide other security. The           exercise of
any such rights shall not prohibit the Holder from seeking to           enforce damages
pursuant to any other Section hereof or under applicable law.  

	
 

	
2 Insert
Month of the Effective Date  

3 Insert Month 12 months
from the Effective Date. For purpose of clarity, if the           Effective Date was
August 15, 2009, the first month would be August 2009 and the           last month would
be July 2010.  

9

    (5)        Adjustments
to Conversion Price 

		    (a)        Adjustment
of Conversion Price upon Issuance of Common Stock. If the           Company, at any
time while this Debenture is outstanding, issues or sells, or in           accordance
with this Section 5(a) is deemed to have issued or sold, any shares           of Common
Stock, excluding shares of Common Stock deemed to have been issued or           sold by
the Company in connection with any Excluded Securities, for a           consideration per
share (the “New Issuance Price”) less than a           price equal to
the Conversion Price in effect immediately prior to such issue or           sale (such
price the “Applicable Price”) (the foregoing a           “Dilutive
Issuance”), then immediately after such Dilutive           Issuance the
Conversion Price then in effect shall be reduced to an amount equal           to the New
Issuance Price. For purposes of determining the adjusted Conversion           Price under
this Section 5(a), the following shall be applicable:  

		    (i)        Issuance
of Options. If the Company in any manner grants or sells any           Options and
the lowest price per share for which one share of Common Stock is           issuable upon
the exercise of any such Option or upon conversion or exchange or           exercise of
any Convertible Securities issuable upon exercise of such Option is           less than
the Applicable Price, then such share of Common Stock shall be deemed           to be
outstanding and to have been issued and sold by the Company at the time of           the
granting or sale of such Option for such price per share. For purposes of           this
Section, the “lowest price per share for which one share of Common           Stock
is issuable upon the exercise of any such Option or upon conversion or           exchange
or exercise of any Convertible Securities issuable upon exercise of           such Option” shall
be equal to the sum of the lowest amounts of           consideration (if any) received or
receivable by the Company with respect to any           one share of Common Stock upon
granting or sale of the Option, upon exercise of           the Option and upon conversion
or exchange or exercise of any Convertible           Security issuable upon exercise of
such Option. No further adjustment of the           Conversion Price shall be made upon
the actual issuance of such share of Common           Stock or of such Convertible
Securities upon the exercise of such Options or           upon the actual issuance of
such Common Stock upon conversion or exchange or           exercise of such Convertible
Securities.  

		    (ii)        Issuance
of Convertible Securities. If the Company in any manner issues           or sells any
Convertible Securities and the lowest price per share for which one           share of
Common Stock is issuable upon such conversion or exchange or exercise           thereof
is less than the Applicable Price, then such share of Common Stock shall           be
deemed to be outstanding and to have been issued and sold by the Company at           the
time of the issuance or sale of such Convertible Securities for such price           per
share. For the purposes of this Section, the “lowest price per share           for
which one share of Common Stock is issuable upon such conversion or exchange           or
exercise” shall be equal to the sum of the lowest amounts of           consideration
(if any) received or receivable by the Company with respect to any           one share of
Common Stock upon the issuance or sale of the Convertible Security           and upon the
conversion or exchange or exercise of such Convertible Security. No           further
adjustment of the Conversion Price shall be made upon the actual           issuance of
such share of Common Stock upon conversion or exchange or exercise           of such
Convertible Securities, and if any such issue or sale of such           Convertible
Securities is made upon exercise of any Options for which adjustment           of the
Conversion Price had been or are to be made pursuant to other provisions           of
this Section, no further adjustment of the Conversion Price shall be made by
          reason of such issue or sale.  

10

		    (iii)        Change
in Option Price or Rate of Conversion. If the purchase price           provided for
in any Options, the additional consideration, if any, payable upon           the issue,
conversion, exchange or exercise of any Convertible Securities, or           the rate at
which any Convertible Securities are convertible into or           exchangeable or
exercisable for Common Stock changes at any time, the Conversion           Price in
effect at the time of such change shall be adjusted to the Conversion           Price
which would have been in effect at such time had such Options or           Convertible
Securities provided for such changed purchase price, additional           consideration
or changed conversion rate, as the case may be, at the time           initially granted,
issued or sold. For purposes of this Section, if the terms of           any Option or
Convertible Security that was outstanding as of the Issuance Date           are changed
in the manner described in the immediately preceding sentence, then           such Option
or Convertible Security and the Common Stock deemed issuable upon           exercise,
conversion or exchange thereof shall be deemed to have been issued as           of the
date of such change. No adjustment shall be made if such adjustment would
          result in an increase of the Conversion Price then in effect.  

		    (iv)        Calculation
of Consideration Received. In case any Option is issued in           connection with
the issue or sale of other securities of the Company, together           comprising one
integrated transaction in which no specific consideration is           allocated to such
Options by the parties thereto, the Options will be deemed to           have been issued
for the difference of (x) the aggregate fair market value of           such Options and
other securities issued or sold in such integrated transaction,           less (y) the
fair market value of the securities other than such Option, issued           or sold in
such transaction and the other securities issued or sold in such           integrated
transaction will be deemed to have been issued or sold for the           balance of the
consideration received by the Company. If any Common Stock,           Options or
Convertible Securities are issued or sold or deemed to have been           issued or sold
for cash, the consideration received therefor will be deemed to           be the gross
amount raised by the Company; provided, however, that such gross           amount is not
greater than 110% of the net amount received by the Company           therefor. If any
Common Stock, Options or Convertible Securities are issued or           sold for a
consideration other than cash, the amount of the consideration other           than cash
received by the Company will be the fair value of such consideration,           except
where such consideration consists of securities, in which case the amount           of
consideration received by the Company will be the Closing Bid Price of such
          securities on the date of receipt. If any Common Stock, Options or Convertible
          Securities are issued to the owners of the non-surviving entity in connection
          with any merger in which the Company is the surviving entity, the amount of
          consideration therefor will be deemed to be the fair value of such portion of
          the net assets and business of the non-surviving entity as is attributable to
          such Common Stock, Options or Convertible Securities, as the case may be. The
          fair value of any consideration other than cash or securities will be
determined           jointly by the Company and the Holder. If such parties are unable to
reach           agreement within ten (10) days after the occurrence of an event requiring
          valuation (the “Valuation Event”), the fair value of such
          consideration will be determined within five (5) Business Days after the tenth
          (10th) day following the Valuation Event by an independent,
reputable           appraiser jointly selected by the Company and the Holder. The
determination of           such appraiser shall be deemed binding upon all parties absent
manifest error           and the fees and expenses of such appraiser shall be borne by
the Company.  

11

		    (v)        Record
Date. If the Company takes a record of the holders of Common Stock           for the
purpose of entitling them (A) to receive a dividend or other           distribution
payable in Common Stock, Options or in Convertible Securities or           (B) to
subscribe for or purchase Common Stock, Options or Convertible           Securities, then
such record date will be deemed to be the date of the issue or           sale of the
Common Stock deemed to have been issued or sold upon the declaration           of such
dividend or the making of such other distribution or the date of the           granting
of such right of subscription or purchase, as the case may be.  

		    (b)        Adjustment
of Conversion Price upon Subdivision or Combination of Common           Stock. If the
Company, at any time while this Debenture is outstanding,           shall (a) pay a
stock dividend or otherwise make a distribution or           distributions on shares of
its Common Stock or any other equity or equity           equivalent securities payable in
shares of Common Stock, (b) subdivide           outstanding shares of Common Stock into a
larger number of shares, (c) combine           (including by way of reverse stock split)
outstanding shares of Common Stock           into a smaller number of shares, or (d)
issue by reclassification of shares of           the Common Stock any shares of capital
stock of the Company, then the Conversion           Price shall be multiplied by a
fraction of which the numerator shall be the           number of shares of Common Stock
(excluding treasury shares, if any) outstanding           before such event and of which
the denominator shall be the number of shares of           Common Stock outstanding after
such event. Any adjustment made pursuant to this           Section shall become effective
immediately after the record date for the           determination of stockholders
entitled to receive such dividend or distribution           and shall become effective
immediately after the effective date in the case of a           subdivision, combination
or re-classification.  

		    (c)        Purchase
Rights. If at any time the Company grants, issues or sells any           Options,
Convertible Securities or rights to purchase stock, warrants,           securities or
other property pro rata to the record holders of any class of           Common Stock (the
“Purchase Rights”), then the Holder will be           entitled to
acquire, upon the terms applicable to such Purchase Rights, the           aggregate
Purchase Rights which the Holder could have acquired if the Holder had           held the
number of shares of Common Stock acquirable upon complete conversion of           this
Debenture (without taking into account any limitations or restrictions on           the
convertibility of this Debenture) immediately before the date on which a           record
is taken for the grant, issuance or sale of such Purchase Rights, or, if           no
such record is taken, the date as of which the record holders of Common Stock
          are to be determined for the grant, issue or sale of such Purchase Rights.  

		    (d)        Other
Events. If any event occurs of the type contemplated by the           provisions of
this Section 4 but not expressly provided for by such provisions           (including,
without limitation, the granting of stock appreciation rights,           phantom stock
rights or other rights with equity features), then the           Company’s Board of
Directors will make an appropriate adjustment in the           Conversion Price so as to
protect the rights of the Holder under this Debenture;           provided that no such
adjustment will increase the Conversion Price as otherwise           determined pursuant
to this Section 5.  

12

		    (e)        Other
Corporate Events. In addition to and not in substitution for any           other
rights hereunder, prior to the consummation of any Fundamental Transaction
          pursuant to which holders of shares of Common Stock are entitled to receive
          securities or other assets with respect to or in exchange for shares of Common
          Stock (a “Corporate Event”), the Company shall make
appropriate           provision to insure that the Holder will thereafter have the right
to receive           upon a conversion of this Debenture, at the Holder’s option,
(i) in           addition to the shares of Common Stock receivable upon such conversion,
such           securities or other assets to which the Holder would have been entitled
with           respect to such shares of Common Stock had such shares of Common Stock
been held           by the Holder upon the consummation of such Corporate Event (without
taking into           account any limitations or restrictions on the convertibility of
this Debenture)           or (ii) in lieu of the shares of Common Stock otherwise
receivable upon such           conversion, such securities or other assets received by
the holders of shares of           Common Stock in connection with the consummation of
such Corporate Event in such           amounts as the Holder would have been entitled to
receive had this Debenture           initially been issued with conversion rights for the
form of such consideration           (as opposed to shares of Common Stock) at a
conversion rate for such           consideration commensurate with the Conversion Rate.
Provision made pursuant to           the preceding sentence shall be in a form and
substance satisfactory to the           Required Holders. The provisions of this Section
shall apply similarly and           equally to successive Corporate Events and shall be
applied without regard to           any limitations on the conversion or redemption of
this Debenture.  

		    (f)        Whenever
the Conversion Price is adjusted pursuant to Section 5 hereof, the           Company
shall promptly mail to the Holder a notice setting forth the Conversion           Price
after such adjustment and setting forth a brief statement of the facts
          requiring such adjustment.  

		    (g)        In
case of any (1) merger or consolidation of the Company or any subsidiary of           the
Company with or into another Person, or (2) sale by the Company or any
          subsidiary of the Company of more than one-half of the assets of the Company in
          one or a series of related transactions, a Holder shall have the right to (A)
          exercise any rights under Section 2(b), (B) convert the aggregate amount of
this           Debenture then outstanding into the shares of stock and other securities,
cash           and property receivable upon or deemed to be held by holders of Common
Stock           following such merger, consolidation or sale, and such Holder shall be
entitled           upon such event or series of related events to receive such amount of
          securities, cash and property as the shares of Common Stock into which such
          aggregate principal amount of this Debenture could have been converted
          immediately prior to such merger, consolidation or sales would have been
          entitled, or (C) in the case of a merger or consolidation, require the
surviving           entity to issue to the Holder a convertible Debenture with a
principal amount           equal to the aggregate principal amount of this Debenture then
held by such           Holder, plus all accrued and unpaid interest and other amounts
owing thereon,           which such newly issued convertible Debenture shall have terms
identical           (including with respect to conversion) to the terms of this
Debenture, and shall           be entitled to all of the rights and privileges of the
Holder of this Debenture           set forth herein and the agreements pursuant to which
this Debentures were           issued. In the case of clause (C), the conversion price
applicable for the newly           issued shares of convertible preferred stock or
convertible Debentures shall be           based upon the amount of securities, cash and
property that each share of Common           Stock would receive in such transaction and
the Conversion Price in effect           immediately prior to the effectiveness or
closing date for such transaction. The           terms of any such merger, sale or
consolidation shall include such terms so as           to continue to give the Holder the
right to receive the securities, cash and           property set forth in this Section
upon any conversion or redemption following           such event. This provision shall
similarly apply to successive such events.  

13

    (6)        REISSUANCE
OF THIS DEBENTURE.  

		    (a)        Transfer.
If this Debenture is to be transferred, the Holder shall           surrender this
Debenture to the Company, whereupon the Company will, subject to           the
satisfaction of the transfer provisions of the Securities Purchase           Agreement,
forthwith issue and deliver upon the order of the Holder a new           Debenture (in
accordance with Section 6(d)), registered in the name of the           registered
transferee or assignee, representing the outstanding Principal being
          transferred by the Holder and, if less then the entire outstanding Principal is
          being transferred, a new Debenture (in accordance with Section 6(d)) to the
          Holder representing the outstanding Principal not being transferred. The Holder
          and any assignee, by acceptance of this Debenture, acknowledge and agree that,
          by reason of the provisions of Section 4(b)(iii) following conversion or
          redemption of any portion of this Debenture, the outstanding Principal
          represented by this Debenture may be less than the Principal stated on the face
          of this Debenture.  

		    (b)        Lost,
Stolen or Mutilated Debenture. Upon receipt by the Company of           evidence
reasonably satisfactory to the Company of the loss, theft, destruction           or
mutilation of this Debenture, and, in the case of loss, theft or destruction,
          of any indemnification undertaking by the Holder to the Company in customary
          form and, in the case of mutilation, upon surrender and cancellation of this
          Debenture, the Company shall execute and deliver to the Holder a new Debenture
          (in accordance with Section 6(d)) representing the outstanding Principal.  

		    (c)        Debenture
Exchangeable for Different Denominations. This Debenture is           exchangeable,
upon the surrender hereof by the Holder at the principal office of           the Company,
for a new Debenture or Debentures (in accordance with Section 6(d))
          representing in the aggregate the outstanding Principal of this Debenture, and
          each such new Debenture will represent such portion of such outstanding
          Principal as is designated by the Holder at the time of such surrender.  

		    (d)        Issuance
of New Debentures. Whenever the Company is required to issue a           new
Debenture pursuant to the terms of this Debenture, such new Debenture (i)           shall
be of like tenor with this Debenture, (ii) shall represent, as indicated           on the
face of such new Debenture, the Principal remaining outstanding (or in           the case
of a new Debenture being issued pursuant to Section 6(a) or Section           6(c), the
Principal designated by the Holder which, when added to the principal
          represented by the other new Debentures issued in connection with such
issuance,           does not exceed the Principal remaining outstanding under this
Debenture           immediately prior to such issuance of new Debentures), (iii) shall
have an           issuance date, as indicated on the face of such new Debenture, which is
the same           as the Issuance Date of this Debenture, (iv) shall have the same
rights and           conditions as this Debenture, and (v) shall represent accrued and
unpaid           Interest from the Issuance Date.  

14

    (7)        NOTICES.
Any notices, consents, waivers or other communications required           or permitted to
be given under the terms hereof must be in writing and will be           deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii)           upon receipt,
when sent by facsimile (provided confirmation of transmission is           mechanically
or electronically generated and kept on file by the sending party);           or (iii)
one (1) Trading Day after deposit with a nationally recognized           overnight
delivery service, in each case properly addressed to the party to           receive the
same. The addresses and facsimile numbers for such communications           shall be:  

	If to the Company, to:	Migdal Aviv 

	 	
7
Abba Hilel Street 

	 	
Ramat
Gan, 52520 

	 	
Israel 

	 	
Telephone:	
011 972 3 5913952 

	 	
Facsimile:	
011 +972 9 955 0454 

	With a copy to: 	Pearl Cohen Zedek Latzer LLP. 

	 	
1500
Broadway, 12th Floor 

	 	
New
York, NY10036 

	 	
Attention:
Doron Latzer, Esq., Managing Partner 

	 	
Telephone:
+1 (646) 878-0800 

	 	
Facsimile:
+1 (646) 878-0801 

	If to the Holder:	YA Global Investments, L.P. 

	 	
101
Hudson Street, Suite 3700 

	 	
Jersey
City, NJ  07302 

	 	Attention:	Mark Angelo 

	 	Telephone:	(201) 985-8300 

	With a copy to:	David Gonzalez, Esq. 

	 	
101
Hudson Street - Suite 3700 

	 	
Jersey
City, NJ 07302 

	 	Telephone:	(201) 985-8300 

	 	Facsimile:	(201) 985-8266 

        or
at such other address and/or facsimile number and/or to the attention of such other person
as the recipient party has specified by written notice given to each other party three (3)
Business Days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver or other communication, (ii)
mechanically or electronically generated by the sender’s facsimile machine containing
the time, date, recipient facsimile number and an image of the first page of such
transmission or (iii) provided by a nationally recognized overnight delivery service,
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a
nationally recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively. 

15

    (8)        Except
as expressly provided herein, no provision of this Debenture shall alter           or
impair the obligations of the Company, which are absolute and unconditional,           to
pay the principal of, interest and other charges (if any) on, this Debenture           at
the time, place, and rate, and in the coin or currency, herein prescribed.           This
Debenture is a direct obligation of the Company. As long as this Debenture           is
outstanding, the Company shall not and shall cause their subsidiaries not to,
          without the consent of the Holder, (i) amend its certificate of incorporation,
          bylaws or other charter documents so as to adversely affect any rights of the
          Holder; (ii) repay, repurchase or offer to repay, repurchase or otherwise
          acquire shares of its Common Stock or other equity securities other than as to
          the Underlying Shares to the extent permitted or required under the Transaction
          Documents; or (iii) enter into any agreement with respect to any of the
          foregoing.  

    (9)        This
Debenture shall not entitle the Holder to any of the rights of a           stockholder of
the Company, including without limitation, the right to vote, to           receive
dividends and other distributions, or to receive any notice of, or to           attend,
meetings of stockholders or any other proceedings of the Company, unless           and to
the extent converted into shares of Common Stock in accordance with the           terms
hereof.  

    (10)        No
indebtedness of the Company is senior to this Debenture in right of payment,
          whether with respect to interest, damages or upon liquidation or dissolution or
          otherwise. Without the Holder’s consent, the Company will not and will not
          permit any of their subsidiaries to, directly or indirectly, enter into,
create,           incur, assume or suffer to exist any indebtedness of any kind, on or
with           respect to any of its property or assets now owned or hereafter acquired
or any           interest therein or any income or profits there from that is senior in
any           respect to the obligations of the Company under this Debenture.  

    (11)        This
Debenture shall be governed by and construed in accordance with the laws of           the
State of New Jersey, without giving effect to conflicts of laws thereof.           Each
of the parties consents to the jurisdiction of the Superior Courts of the           State
of New Jersey sitting in Hudson County, New Jersey and the           U.S. District
Court for the District of New Jersey sitting in Newark, New           Jersey in
connection with any dispute arising under this Debenture and hereby           waives, to
the maximum extent permitted by law, any objection, including any           objection
based on forum non conveniens to the bringing of any such proceeding           in such
jurisdictions.  

    (12)        If
the Company fails to strictly comply with the terms of this Debenture, then           the
Company shall reimburse the Holder promptly for all fees, costs and           expenses,
including, without limitation, attorneys’ fees and expenses           incurred by
the Holder in any action in connection with this Debenture,           including, without
limitation, those incurred: (i) during any workout, attempted           workout, and/or
in connection with the rendering of legal advice as to the           Holder’s
rights, remedies and obligations, (ii) collecting any sums which           become due to
the Holder, (iii) defending or prosecuting any proceeding or any           counterclaim
to any proceeding or appeal; or (iv) the protection, preservation           or
enforcement of any rights or remedies of the Holder.  

    (13)        Any
waiver by the Holder of a breach of any provision of this Debenture shall           not
operate as or be construed to be a waiver of any other breach of such           provision
or of any breach of any other provision of this Debenture. The failure           of the
Holder to insist upon strict adherence to any term of this Debenture on           one or
more occasions shall not be considered a waiver or deprive that party of           the
right thereafter to insist upon strict adherence to that term or any other           term
of this Debenture. Any waiver must be in writing.  

16

    (14)        If
any provision of this Debenture is invalid, illegal or unenforceable, the
          balance of this Debenture shall remain in effect, and if any provision is
          inapplicable to any person or circumstance, it shall nevertheless remain
          applicable to all other persons and circumstances. If it shall be found that
any           interest or other amount deemed interest due hereunder shall violate
applicable           laws governing usury, the applicable rate of interest due hereunder
shall           automatically be lowered to equal the maximum permitted rate of interest.
The           Company covenants (to the extent that it may lawfully do so) that it shall
not           at any time insist upon, plead, or in any manner whatsoever claim or take
the           benefit or advantage of, any stay, extension or usury law or other law
which           would prohibit or forgive the Company from paying all or any portion of
the           principal of or interest on this Debenture as contemplated herein, wherever
          enacted, now or at any time hereafter in force, or which may affect the
          covenants or the performance of this indenture, and the Company (to the extent
          it may lawfully do so) hereby expressly waives all benefits or advantage of any
          such law, and covenants that it will not, by resort to any such law, hinder,
          delay or impeded the execution of any power herein granted to the Holder, but
          will suffer and permit the execution of every such as though no such law has
          been enacted.  

    (15)        Whenever
any payment or other obligation hereunder shall be due on a day other           than a
Business Day, such payment shall be made on the next succeeding Business           Day.  

    (16)        THE
PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY           OF
THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR
          ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
          DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL           OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR           THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.  

    (17)        CERTAIN
DEFINITIONS For purposes of this Debenture, the following terms           shall have
the following meanings:  

		    (a)        “Approved
Stock Plan” means a stock option plan that has been           approved by the
Board of Directors of the Company, pursuant to which the           Company’s
securities may be issued only to any employee, officer, or           director for
services provided to the Company.  

		    (b)        “Bloomberg” means
Bloomberg Financial Markets.  

		    (c)        “Business
Day” means any day except Saturday, Sunday and any           day which shall be
a federal legal holiday in the United States or a day on           which banking
institutions are authorized or required by law or other government           action to
close.  

17

		    (d)        “Change
of Control Transaction” means the occurrence of (a) an           acquisition
after the date hereof by an individual or legal entity or           “group” (as
described in Rule 13d-5(b)(1) promulgated under the           Exchange Act) of effective
control (whether through legal or beneficial           ownership of capital stock of the
Company, by contract or otherwise) of in           excess of fifty percent (50%) of the
voting securities of the Company (except           that the acquisition of voting
securities by the Holder or any other current           holder of convertible securities
of the Company shall not constitute a Change of           Control Transaction for
purposes hereof), (b) a replacement at one time or over           time of more than
one-half of the members of the board of directors of the           Company which is not
approved by a majority of those individuals who are members           of the board of
directors on the date of such change (or by those individuals           who are serving
as members of the board of directors on any date whose           nomination to the board
of directors was approved by a majority of the members           of the board of
directors who are members on the date of such change), (c) the           merger,
consolidation or sale of fifty percent (50%) or more of the assets of           the
Company or any subsidiary of the Company in one or a series of related
          transactions with or into another entity that is not a related entity to the
          Company, provided however in the event the Company seeks to consummate a
merger,           consolidation or sale of fifty percent (50%) or more of the assets of
the           Company or any subsidiary of the Company in one or a series of related
          transactions with or into another entity that is a related entity to the
Company           the Company shall obtain the prior written consent of the Holder, or
(d) the           execution by the Company of an agreement to which the Company is a
party or by           which it is bound, providing for any of the events set forth above
in (a), (b)           or (c).  

		    (e)        “Closing
Bid Price” means the price per share in the last           reported trade of the
Common Stock on a Primary Market or on the exchange which           the Common Stock is
then listed as quoted by Bloomberg.  

		    (f)        “Commission” means
the Securities and Exchange Commission.  

		    (g)        “Common
Stock” means the common stock, par value $.001, of the           Company and
stock of any other class into which such shares may hereafter be           changed or
reclassified.  

		    (h)        “Company
Conversion Price” means, the lower of (i) the           applicable Conversion
Price and (ii) that price which shall be computed as           ninety five percent (95%)
of the lowest Volume Weighted Average Price of the           Common Stock during the
fifteen (15) consecutive Trading Days immediately           preceding the applicable
Installment Date. All such determinations shall be           appropriately adjusted for
any stock split, stock dividend, stock combination or           other similar
transaction.  

		    (i)        “Convertible
Securities” means any stock or securities (other           than Options)
directly or indirectly convertible into or exercisable or           exchangeable for
Common Stock.  

18

		    (j)        “Equity
Conditions” means that each of the following conditions           is satisfied:
(i) on each day during the period beginning two (2) weeks prior to           the
applicable date of determination and ending on and including the applicable
          date of determination (the “Equity Conditions Measuring Period”),
          either (x) the Underlying Shares Registration Statement filed pursuant to the
          Registration Rights Agreement shall be effective and available for the resale
of           all applicable shares of Common Stock to be issued in connection with the
event           requiring determination or (y) all applicable shares of Common Stock to
be           issued in connection with the event requiring determination shall be
eligible           for sale without restriction and without the need for registration
under any           applicable federal or state securities laws; (ii) on each day during
the Equity           Conditions Measuring Period, the Common Stock is designated for
quotation on the           Principal Market and shall not have been suspended from
trading on such exchange           or market nor shall delisting or suspension by such
exchange or market been           threatened or pending either (A) in writing by such
exchange or market or (B) by           falling below the then effective minimum listing
maintenance requirements of           such exchange or market; (iii) during the Equity
Conditions Measuring Period,           the Company shall have delivered Conversion Shares
upon conversion of the           Debentures to the Holder on a timely basis as set forth
in Section 4(b)(ii)           hereof; (iv) any applicable shares of Common Stock to be
issued in connection           with the event requiring determination may be issued in
full without violating           Section 4(c) hereof and the rules or regulations of the
Primary Market; (v)           during the Equity Conditions Measuring Period, there shall
not have occurred           either (A) an Event of Default or (B) an event that with the
passage of time or           giving of notice would constitute an Event of Default; and
(vii) the Company           shall have no knowledge of any fact that would cause any
applicable shares of           Common Stock to be issued in connection with the event
requiring determination           not to be eligible for sale without restriction and
without the need for           registration under any applicable federal or state
securities laws.  

		    (k)        “Equity
Conditions Failure” means that on any applicable date           the Equity
Conditions have not been satisfied (or waived in writing by the           Holder).  

		    (l)        “Exchange
Act” means the Securities Exchange Act of 1934, as           amended.  

		    (m)        “Excluded
Securities” means, (a) shares issued or deemed to           have been issued by
the Company pursuant to an Approved Stock Plan (b) shares of           Common Stock
issued or deemed to be issued by the Company upon the conversion,           exchange or
exercise of any right, option, obligation or security outstanding on           the date
prior to date of the Securities Purchase Agreement, provided that the           terms of
such right, option, obligation or security are not amended or otherwise
          modified on or after the date of the Securities Purchase Agreement, and
provided           that the conversion price, exchange price, exercise price or other
purchase           price is not reduced, adjusted or otherwise modified and the number of
shares of           Common Stock issued or issuable is not increased (whether by
operation of, or in           accordance with, the relevant governing documents or
otherwise) on or after the           date of the Securities Purchase Agreement, (c)
shares issued in connection with           any acquisition by the Company, whether
through an acquisition of stock or a           merger of any business, assets or
technologies, leasing arrangement or any other           transaction the primary purpose
of which is not to raise equity capital, and           (d) the shares of Common
Stock issued or deemed to be issued by the Company           upon conversion of this
Debenture.  

		    (n)        “Installment
Amount” means with respect to any Installment           Date, the lesser of (A)
$225,000 and (B) the total amount outstanding under this           Debenture as of such
Installment Date, as any such Installment Amount may be           reduced pursuant to the
terms of this Debenture, whether upon conversion,           redemption or otherwise,
together with. In the event the Holder shall sell or           otherwise transfer any
portion of this Debenture, the transferee shall be           allocated a pro rata portion
of the each unpaid Installment Amount hereunder. In           the event that the Holder
is the holder of more than one Debenture of this           series of secured convertible
debentures issued pursuant to the Securities           Purchase Agreement or in exchange
for the Debenture, then the Holder shall have           the right to allocate the any
Installment Amount due to it among the Debentures           as it sees fit and shall
notify the Company of such allocation.  

19

		    (o)        “Installment
Date” means 4 ________ 1, 2010,           and continuing on
the first Business Day of each successive calendar month           thereafter.  

		    (p)        “Installment
Volume Limitation” means 15% of the aggregate           dollar trading volume
(as reported on Bloomberg) of the Common Stock on the           Principal Market over the
forty (40) consecutive Trading Day period ending on           the Trading Day immediately
preceding the applicable Installment Notice Date.  

		    (q)        “Options” means
any rights, warrants or options to subscribe           for or purchase shares of Common
Stock or Convertible Securities.  

		    (r)        “Original
Issue Date” means the date of the first issuance of           this Debenture
regardless of the number of transfers and regardless of the           number of
instruments, which may be issued to evidence such Debenture.  

		    (s)        “Person” means
a corporation, an association, a partnership,           organization, a business, an
individual, a government or political subdivision           thereof or a governmental
agency.  

		    (t)        “Primary
Market” means any of (a) the NYSE Amex (b) the New           York Stock
Exchange, (c) the Nasdaq Global Market, (d) the Nasdaq Capital           Market, or (e)
the Nasdaq OTC Bulletin Board;  

		    (u)        “Securities
Act” means the Securities Act of 1933, as amended,           and the rules and
regulations promulgated thereunder.  

		    (v)        “Securities
Purchase Agreement” means the Securities Purchase           Agreement dated July
6, 2007 by and among the Company and the Buyers listed on           Schedule I attached
thereto.  

		    (w)        “Trading
Day” shall mean any day during which the Primary           Market for the Common
Stock is open for business.  

		    (x)        “Transaction
Documents” means the Letter Agreement, the           Securities Purchase
Agreement and any other agreement delivered in connection           with the Securities
Purchase Agreement, including, without limitation, the           Security Agreement, the
Irrevocable Transfer Agent Instructions, and the           Registration Rights Agreement.  

	
 

	
4 Insert
Month that is 12 months from the month of the Effective Date. For example           if
the Effective Date is August 15, 2009, the date entered would be July 1,           2010.  

20

		    (y)        “Underlying
Shares” means the shares of Common Stock issuable           upon conversion of
this Debenture or as payment of interest in accordance with           the terms hereof.  

		    (z)        “Underlying
Shares Registration Statement” means a registration           statement meeting
the requirements set forth in the Registration Rights           Agreement, covering among
other things the resale of the Underlying Shares and           naming the Holder as a
“selling stockholder” thereunder.  

		    (aa)        “Volume
Weighted Average Price” means, for any security as of           any date, the
daily dollar volume-weighted average price for such security on           the Primary
Market as reported by Bloomberg during regular trading hours.  

		    (bb)        “Warrants” has
the meaning ascribed to such term in the           Securities Purchase Agreement, and
shall include all warrants issued in exchange           therefor or replacement thereof.  

[Signature Page
Follows] 

21

        IN
WITNESS WHEREOF, the Company has caused this Secured Convertible Debenture to be duly
executed by a duly authorized officer as of the date set forth above. 

			COMPANY:
GLOBAL ENERGY, INC.

By: /s/ Asi Shalgi
——————————————

Asi Shalgi
Chief Executive Officer

22

EXHIBIT I 

CONVERSION NOTICE  

(To be executed by the
Holder in order to Convert the Debenture) 

TO: 

        The
undersigned hereby irrevocably elects to convert $______________ of the principal amount of
Debenture No.GEYI-1-6 into Shares of Common Stock of GLOBAL ENERGY, INC., according
to the conditions stated therein, as of the Conversion Date written below. 

	
Conversion
Date:  	—————————————————————————————————————————

	
Conversion
Amount to be converted:   	$ ————————————————————————————————————————

	
Conversion Price:   	$ ————————————————————————————————————————

	
Number of shares of Common
Stock to be issued:   	—————————————————————————————————————————

	
Amount of Debenture
Unconverted:   	$  

Please issue the shares of Common Stock
in the following name and to the following address: Issue to: 

	
Authorized Signature:   	—————————————————————————————————————————

	
Name:    	—————————————————————————————————————————

	
Title:   	—————————————————————————————————————————

	
Broker DTC Participant
Code:    	

	
Account Number:   	

EXHIBIT C 

FORM OF PERFECTION
CERTIFICATEDC7315.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

COLLABORATION AGREEMENT

BY AND BETWEEN

PGX HEALTH, LLC

AND

COMBINATORX, INC.

EFFECTIVE ON AUGUST 11, 2009

779758 v7/HN

	
TABLE OF CONTENTS
	
	
 
		
 		
 
		
 		
PAGE 
	
	
 
	
	
ARTICLE 1 
		
 		
DEFINITIONS 
		
 		
1 
	
	
                    1.1 
		
 		
“Affiliate” 
		
 		
1 
	
	
                    1.2 
		
 		
“Allowable Expenses” 
		
 		
2 
	
	
                    1.3 
		
 		
“ATL” 
		
 		
2 
	
	
                    1.4 
		
 		
“Claim” 
		
 		
2 
	
	
                    1.5 
		
 		
“Co-Development Notice” 
		
 		
2 
	
	
                    1.6 
		
 		
“Co-Development Option” 
		
 		
2 
	
	
                    1.7 
		
 		
“Collaboration” 
		
 		
2 
	
	
                    1.8 
		
 		
“Collaboration Know-How” 
		
 		
2 
	
	
                    1.9 
		
 		
“Collaboration Information” 
		
 		
2 
	
	
                    1.10 
		
 		
“Collaboration Patents” 
		
 		
2 
	
	
                    1.11 
		
 		
“Collaboration Technology” 
		
 		
2 
	
	
                    1.12 
		
 		
“Commercialization” 
		
 		
3 
	
	
                    1.13 
		
 		
“Commercialization Plan” 
		
 		
3 
	
	
                    1.14 
		
 		
“Compound” 
		
 		
3 
	
	
                    1.15 
		
 		
“Confidential Information” 
		
 		
3 
	
	
                    1.16 
		
 		
“Control” 
		
 		
3 
	
	
                    1.17 
		
 		
“Cost of Goods Sold” 
		
 		
3 
	
	
                    1.18 
		
 		
“CRXX Claims” 
		
 		
3 
	
	
                    1.19 
		
 		
“CRXX Indemnitees” 
		
 		
3 
	
	
                    1.20 
		
 		
“CRXX Know-How” 
		
 		
3 
	
	
                    1.21 
		
 		
“CRXX Patents” 
		
 		
4 
	
	
                    1.22 
		
 		
“CRXX Technology” 
		
 		
4 
	
	
                    1.23 
		
 		
“Damages” 
		
 		
4 
	
	
                    1.24 
		
 		
“Development” 
		
 		
4 
	
	
                    1.25 
		
 		
“Development Plan” 
		
 		
4 
	
	
                    1.26 
		
 		
“Diligent Efforts” 
		
 		
4 
	
	
                    1.27 
		
 		
“Distribution Expenses” 
		
 		
5 
	
	
                    1.28 
		
 		
“European Union” or “EU” 
		
 		
5 
	
	
                    1.29 
		
 		
“Executive Officer” 
		
 		
5 
	
	
779758 v7/HN 
		
 		
-i- 
		
 		
 
	

	
TABLE OF CONTENTS
	
	
(CONTINUED)
	
	
 
		
 		
 
		
 		
PAGE 
	
	
 
	
	
1.30 
		
 		
“Existing Confidentiality Agreement” 
		
 		
5 
	
	
1.31 
		
 		
“FDA” 
		
 		
5 
	
	
1.32 
		
 		
“FD&C Act” 
		
 		
5 
	
	
1.33 
		
 		
“Field” 
		
 		
5 
	
	
1.34 
		
 		
“First Commercial Sale” 
		
 		
5 
	
	
1.35 
		
 		
“FTE” 
		
 		
5 
	
	
1.36 
		
 		
“Governmental Authority” 
		
 		
5 
	
	
1.37 
		
 		
“Information” 
		
 		
6 
	
	
1.38 
		
 		
“Initial Development Plan” 
		
 		
6 
	
	
1.39 
		
 		
“JAMS Rules” 
		
 		
6 
	
	
1.40 
		
 		
“Joint Invention” 
		
 		
6 
	
	
1.41 
		
 		
“Joint Patent” 
		
 		
6 
	
	
1.42 
		
 		
“JSC” 
		
 		
6 
	
	
1.43 
		
 		
“License Commercialization Report” 
		
 		
6 
	
	
1.44 
		
 		
“License Development Report” 
		
 		
6 
	
	
1.45 
		
 		
“Major EU Country” 
		
 		
6 
	
	
1.46 
		
 		
“Marketing Authorization Application” or “MAA” 
		
 		
6 
	
	
1.47 
		
 		
“Marketing Expenses” 
		
 		
6 
	
	
1.48 
		
 		
“Marks” 
		
 		
6 
	
	
1.49 
		
 		
“NDA” 
		
 		
6 
	
	
1.50 
		
 		
“Net Sales” 
		
 		
6 
	
	
1.51 
		
 		
“Partnering Agreement” 
		
 		
8 
	
	
1.52 
		
 		
“Partnering Revenue” 
		
 		
8 
	
	
1.53 
		
 		
“Patent Expenses” 
		
 		
8 
	
	
1.54 
		
 		
“PGx Claims” 
		
 		
8 
	
	
1.55 
		
 		
“PGx Indemnitees” 
		
 		
8 
	
	
1.56 
		
 		
“PGx Know-How” 
		
 		
8 
	
	
1.57 
		
 		
“PGx Patents” 
		
 		
8 
	
	
1.58 
		
 		
“PGx Technology” 
		
 		
9 
	
	
1.59 
		
 		
“Phase 2 Clinical Trial” 
		
 		
9 
	
	
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                    1.60 
		
 		
“Phase 3 Clinical Trial” 
		
 		
9 
	
	
                    1.61 
		
 		
“Phase 4 Clinical Trial” 
		
 		
9 
	
	
                    1.62 
		
 		
“Post-Launch Product R&D Expenses” 
		
 		
9 
	
	
                    1.63 
		
 		
“Pre-Launch Commercialization Costs” 
		
 		
9 
	
	
                    1.64 
		
 		
“Product” 
		
 		
10 
	
	
                    1.65 
		
 		
“Product Infringement” 
		
 		
10 
	
	
                    1.66 
		
 		
“Product Profit” 
		
 		
10 
	
	
                    1.67 
		
 		
“Publication” 
		
 		
10 
	
	
                    1.68 
		
 		
“Recall Expenses” 
		
 		
10 
	
	
                    1.69 
		
 		
“Regulatory Approval” 
		
 		
10 
	
	
                    1.70 
		
 		
“Regulatory Authority” 
		
 		
10 
	
	
                    1.71 
		
 		
“Regulatory Expenses” 
		
 		
10 
	
	
                    1.72 
		
 		
“Regulatory Materials” 
		
 		
10 
	
	
                    1.73 
		
 		
“Retained Field” 
		
 		
10 
	
	
                    1.74 
		
 		
“Royalty Term” 
		
 		
11 
	
	
                    1.75 
		
 		
“SEC” 
		
 		
11 
	
	
                    1.76 
		
 		
“Section 8.4(a) Sublicensing Arrangement” 
		
 		
11 
	
	
                    1.77 
		
 		
“Section 8.4(b) Sublicensing Arrangement” 
		
 		
11 
	
	
                    1.78 
		
 		
“Shared Development Costs” 
		
 		
11 
	
	
                    1.79 
		
 		
“Sole Inventions” 
		
 		
11 
	
	
                    1.80 
		
 		
“Term” 
		
 		
11 
	
	
                    1.81 
		
 		
“Territory” 
		
 		
11 
	
	
                    1.82 
		
 		
“Third Party” 
		
 		
11 
	
	
                    1.83 
		
 		
“UVA” 
		
 		
11 
	
	
                    1.84 
		
 		
“UVA Agreement” 
		
 		
11 
	
	
                    1.85 
		
 		
“UVAPF” 
		
 		
11 
	
	
ARTICLE 2 
		
 		
LICENSES 
		
 		
12 
	
	
                    2.1 
		
 		
License to CRXX 
		
 		
12 
	
	
                    2.2 
		
 		
License to PGx 
		
 		
12 
	
	
                    2.3 
		
 		
PGx Retained Rights 
		
 		
12 
	
	
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                    2.4 
		
 		
No Non-Permitted Use 
		
 		
12 
	
	
                    2.5 
		
 		
No Other Licenses 
		
 		
13 
	
	
                    2.6 
		
 		
Sublicense Agreements 
		
 		
13 
	
	
                    2.7 
		
 		
UVA Agreement 
		
 		
13 
	
	
                    2.8 
		
 		
Other Third Party Agreements 
		
 		
15 
	
	
                    2.9 
		
 		
Government Rights 
		
 		
15 
	
	
                    2.10 
		
 		
Mutual Exclusivity 
		
 		
16 
	
	
                    2.11 
		
 		
Partnering Agreements 
		
 		
16 
	
	
ARTICLE 3 
		
 		
GOVERNANCE 
		
 		
16 
	
	
                    3.1 
		
 		
Joint Steering Committee 
		
 		
16 
	
	
                    3.2 
		
 		
Meetings of the JSC 
		
 		
16 
	
	
                    3.3 
		
 		
Responsibilities of the JSC 
		
 		
17 
	
	
                    3.4 
		
 		
Areas Outside the JSC’s Authority 
		
 		
17 
	
	
                    3.5 
		
 		
JSC Decisions 
		
 		
18 
	
	
                    3.6 
		
 		
Subcommittees 
		
 		
18 
	
	
                    3.7 
		
 		
Operating Principles 
		
 		
19 
	
	
                    3.8 
		
 		
Termination of JSC 
		
 		
19 
	
	
ARTICLE 4 
		
 		
          DEVELOPMENT 
		
 		
19 
	
	
                    4.1 
		
 		
Overview 
		
 		
19 
	
	
                    4.2 
		
 		
Development Plan 
		
 		
19 
	
	
                    4.3 
		
 		
Materials Transfer 
		
 		
20 
	
	
                    4.4 
		
 		
Diligent Development 
		
 		
20 
	
	
                    4.5 
		
 		
Development Reports 
		
 		
20 
	
	
                    4.6 
		
 		
Standards of Conduct 
		
 		
21 
	
	
                    4.7 
		
 		
Development Expenses 
		
 		
21 
	
	
                    4.8 
		
 		
Option to Co-Develop 
		
 		
22 
	
	
                    4.9 
		
 		
License Development Reports 
		
 		
22 
	
	
ARTICLE 5 
		
 		
REGULATORY 
		
 		
23 
	
	
                    5.1 
		
 		
Regulatory Filings 
		
 		
23 
	
	
                    5.2 
		
 		
Product Withdrawals and Recalls 
		
 		
23 
	
	
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ARTICLE 6 
		
 		
          COMMERCIALIZATION 
		
 		
24 
	
	
                    6.1 
		
 		
General 
		
 		
24 
	
	
                    6.2 
		
 		
Commercialization Plan 
		
 		
24 
	
	
                    6.3 
		
 		
Diligent Commercialization 
		
 		
25 
	
	
                    6.4 
		
 		
Commercialization Reports 
		
 		
25 
	
	
                    6.5 
		
 		
Commercialization Standards of Conduct 
		
 		
26 
	
	
                    6.6 
		
 		
License Commercialization Reports 
		
 		
26 
	
	
ARTICLE 7 
		
 		
          MANUFACTURE AND SUPPLY 
		
 		
26 
	
	
                    7.1 
		
 		
Manufacturing Responsibility 
		
 		
26 
	
	
                    7.2 
		
 		
Transfer of Manufacturing Technology 
		
 		
26 
	
	
                    7.3 
		
 		
Supply of Product to CRXX 
		
 		
27 
	
	
ARTICLE 8 
		
 		
          FINANCIALS 
		
 		
27 
	
	
                    8.1 
		
 		
License Fee 
		
 		
27 
	
	
                    8.2 
		
 		
Development and Regulatory Milestone Payments 
		
 		
27 
	
	
                    8.3 
		
 		
Commercialization Milestone Payments 
		
 		
28 
	
	
                    8.4 
		
 		
Royalties 
		
 		
29 
	
	
                    8.5 
		
 		
Reduction for Payments for Necessary Licenses 
		
 		
32 
	
	
                    8.6 
		
 		
Profit-Share 
		
 		
33 
	
	
                    8.7 
		
 		
Taxes 
		
 		
34 
	
	
                    8.8 
		
 		
Blocked Currency 
		
 		
34 
	
	
                    8.9 
		
 		
Foreign Exchange 
		
 		
34 
	
	
                    8.10 
		
 		
Late Payments 
		
 		
34 
	
	
                    8.11 
		
 		
Financial Records; Audits 
		
 		
34 
	
	
ARTICLE 9 
		
 		
          INTELLECTUAL PROPERTY 
		
 		
35 
	
	
                    9.1 
		
 		
Ownership of Inventions 
		
 		
35 
	
	
                    9.2 
		
 		
Disclosure of Inventions 
		
 		
35 
	
	
                    9.3 
		
 		
Prosecution of Patents 
		
 		
36 
	
	
                    9.4 
		
 		
Enforcement of Collaboration Patents 
		
 		
38 
	
	
                    9.5 
		
 		
Patent Marking 
		
 		
41 
	
	
                    9.6 
		
 		
Employee Obligations 
		
 		
41 
	
	
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                    9.7 
		
 		
Trademarks 
		
 		
42 
	
	
ARTICLE 10 
		
 		
          REPRESENTATIONS AND WARRANTIES 
		
 		
42 
	
	
                    10.1 
		
 		
Mutual Representations and Warranties 
		
 		
42 
	
	
                    10.2 
		
 		
Disclaimer 
		
 		
43 
	
	
                    10.3 
		
 		
No Other Representations or Warranties 
		
 		
43 
	
	
ARTICLE 11 
		
 		
          INDEMNIFICATION 
		
 		
43 
	
	
                    11.1 
		
 		
Indemnification by PGx 
		
 		
44 
	
	
                    11.2 
		
 		
Indemnification by CRXX 
		
 		
44 
	
	
                    11.3 
		
 		
Indemnification Procedures 
		
 		
44 
	
	
                    11.4 
		
 		
Third Party Claims Related to Products 
		
 		
45 
	
	
                    11.5 
		
 		
Limitation of Liability 
		
 		
45 
	
	
                    11.6 
		
 		
Insurance 
		
 		
45 
	
	
ARTICLE 12 
		
 		
          CONFIDENTIALITY 
		
 		
46 
	
	
                    12.1 
		
 		
Confidentiality 
		
 		
46 
	
	
                    12.2 
		
 		
Authorized Disclosure 
		
 		
46 
	
	
                    12.3 
		
 		
Publicity; Terms of Agreement 
		
 		
47 
	
	
                    12.4 
		
 		
Publications 
		
 		
48 
	
	
ARTICLE 13 
		
 		
          TERM AND TERMINATION 
		
 		
49 
	
	
                    13.1 
		
 		
Term 
		
 		
49 
	
	
                    13.2 
		
 		
Termination by Either Party for Breach 
		
 		
49 
	
	
                    13.3 
		
 		
Termination for Patent Challenge 
		
 		
50 
	
	
                    13.4 
		
 		
Effect of Termination of the Agreement 
		
 		
50 
	
	
                    13.5 
		
 		
Other Remedies 
		
 		
52 
	
	
                    13.6 
		
 		
Rights in Bankruptcy 
		
 		
52 
	
	
                    13.7 
		
 		
Survival 
		
 		
52 
	
	
ARTICLE 14 
		
 		
          DISPUTE RESOLUTION 
		
 		
53 
	
	
                    14.1 
		
 		
Disputes 
		
 		
53 
	
	
                    14.2 
		
 		
Arbitration 
		
 		
53 
	
	
                    14.3 
		
 		
Arbitrator 
		
 		
53 
	
	
                    14.4 
		
 		
Governing Law 
		
 		
54 
	
	
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                    14.5 
		
 		
Decision 
		
 		
54 
	
	
                    14.6 
		
 		
Award 
		
 		
54 
	
	
                    14.7 
		
 		
Costs 
		
 		
54 
	
	
                    14.8 
		
 		
Injunctive Relief 
		
 		
55 
	
	
                    14.9 
		
 		
Confidentiality 
		
 		
55 
	
	
                    14.10 
		
 		
Survivability 
		
 		
55 
	
	
                    14.11 
		
 		
Jurisdiction 
		
 		
55 
	
	
                    14.12 
		
 		
Patent and Trademark Disputes 
		
 		
55 
	
	
ARTICLE 15 
		
 		
          MISCELLANEOUS 
		
 		
55 
	
	
                    15.1 
		
 		
Entire Agreement; Amendment 
		
 		
56 
	
	
                    15.2 
		
 		
Force Majeure 
		
 		
56 
	
	
                    15.3 
		
 		
Notices 
		
 		
56 
	
	
                    15.4 
		
 		
No Strict Construction; Headings 
		
 		
57 
	
	
                    15.5 
		
 		
Assignment 
		
 		
57 
	
	
                    15.6 
		
 		
Performance by Affiliates 
		
 		
57 
	
	
                    15.7 
		
 		
Further Actions 
		
 		
58 
	
	
                    15.8 
		
 		
Compliance with Applicable Law 
		
 		
58 
	
	
                    15.9 
		
 		
Severability 
		
 		
58 
	
	
                    15.10 
		
 		
No Waiver 
		
 		
58 
	
	
                    15.11 
		
 		
Independent Contractors 
		
 		
58 
	
	
                    15.12 
		
 		
Counterparts 
		
 		
58 
	

	
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EXECUTION COPY

	
COLLABORATION AGREEMENT

     THIS COLLABORATION AGREEMENT (the “Agreement”) is entered into as of August 11, 2009 (“Effective Date”) by and between PGxHealth, LLC, a Delaware limited liability company having its principal offices at One Gateway Center, Suite 702, Newton, MA 02458 (“PGx”), a wholly owned subsidiary of Clinical Data, Inc. (“CLDA”), and COMBINATORX, INC., a
Delaware corporation having its principal place of business at 245 First St., Third Floor, Cambridge, MA 02142 (“CRXX”).  PGx and CRXX are sometimes referred to herein individually
as a “Party” and collectively as the “Parties”.

	
RECITALS

I. CRXX has discovered certain novel results and filed certain patent applications related to the use of pharmacologically active agonists of the adenosine A2A receptor subtype (“A2a Agonists”) for the treatment of various proliferative disorders,
including cancer.

II. PGx owns certain intellectual property rights relating to a therapeutic candidate known as ATL313, an A2a Agonist, including patent applications directed to the composition of matter of ATL313.

III. CRXX and PGx desire to establish a collaboration for the development and commercialization of ATL313.

     NOW THEREFORE, in consideration of the foregoing
premises and the mutual promises, covenants and conditions contained in this Agreement, the Parties agree as follows:

	
ARTICLE 1

DEFINITIONS

As used in this Agreement, the following initially capitalized terms, whether used in the singular or plural form, shall have the meanings set forth in this Article 1.

     1.1 “Affiliate” means, with respect to a particular Party, a person, corporation, partnership, or other entity that controls, is controlled by or is under
common control with such Party.  For the purposes of this definition, the word “control” (including, with correlative meaning, the terms “controlled by” or “under the common control with”) means the actual power, either
directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of more than fifty percent (50%) of the voting stock of such entity, or by contract
or otherwise.

     1.2 “Allowable Expenses” means (a) Pre-Launch Product Commercialization Costs and (b) all costs that are actually incurred, after the First Commercial Sale
of a Product in the

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Territory, by a Party or for its account and are specifically attributable to such Party’s satisfaction of its obligations pursuant to the Commercialization Plan for such Product for the purpose of promoting sales of such
Product in the Territory, including without limitation any of the following expenses incurred after First Commercial Sale in the Territory of a Product, in each case to the extent consistent with the Commercialization Plan and specifically
attributable to a Product: (i) Cost of Goods Sold, (ii) Marketing Expenses, (iii) Distribution Expenses, (iv) Post-Launch Product R&D Expenses, (v) Patent Expenses, (vi) Regulatory Expenses, (vii) Recall Expenses; and (viii) Allocated G&A
Expenses, in each case as such terms are defined and calculated in this Article 1 and in Exhibit A. Allowable Expenses shall also include those certain costs described in Section 2.11, those
certain payments set forth in Section 8.5(b), those certain expenses described in Sections 8.7(b) and 9.4(c)(ii), and those Damages described in Section 11.4.

	
1.3      		
“ATL” means Adenosine Therapeutics, LLC.	
	 
	
1.4      		
“Claim” has the meaning set forth in Section 11.3.	
	 
	
1.5      		
“Co-Development Notice” has the meaning set forth in Section 4.8(a).	
	 
	
1.6      		
“Co-Development Option” has the meaning set forth in Section 4.8(b).	
	 
	
1.7      		
“Collaboration” means the collaborative Development and Commercialization of	
	 

the Product to be undertaken by the Parties pursuant to this Agreement, it being understood that Development and Commercialization of the Product by CRXX and/or its partners or sublicensees following the expiration of the
Co-Development Option without exercise by PGx shall not be deemed to be part of the Collaboration.

	
                    1.8 
		
 		
“Collaboration 
		
 		
Know-How” means all PGx Know-How and all CRXX Know- 
	
	
How. 
		
 		
 
		
 		
 
	
	
 
	
	
                    1.9 
		
 		
“Collaboration 
		
 		
Information” has the meaning set forth in Section 13.5(f). 
	
	
 
	
	
                    1.10 
		
 		
“Collaboration 
		
 		
Patents” means all PGx Patents, all CRXX Patents and all Joint 
	
	
Patents. 
		
 		
 
		
 		
 
	
	
 
	
	
                    1.11 
		
 		
“Collaboration 
		
 		
Technology” means all PGx Technology and all CRXX 
	
	
Technology. 
		
 		
 
		
 		
 
	

     1.12 “Commercialization” means the marketing, promotion, sale and/or distribution of Product for use in Field in the Territory. “Commercialize” has a correlative meaning.

	
1.13      		
“Commercialization Plan” has the meaning set forth in Section 6.2(a).	
	 
	
1.14      		
“Compound” means the compound known as ATL313, the structure of which is	
	 

	
shown in Exhibit B.

	
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2

     1.15 “Confidential Information” means, with respect to a Party, all Information of such Party that is disclosed to the other Party under this Agreement,
which may include, without limitation, specifications, know-how, trade secrets, technical information, drawings, models, business information, inventions, discoveries, methods, procedures, formulae, protocols, techniques, data, and unpublished
patent applications, whether disclosed in oral, written, graphic, or electronic form.  Notwithstanding the foregoing, subject to Section 13.5(f), all Information generated or resulting from the Collaboration, whether generated by one or both
Parties, shall be deemed the Confidential Information of both Parties; provided, however, that the Information required to be provided to PGx pursuant to Section 3.8 shall be deemed the Confidential Information of CRXX, subject to Section 13.5(f).
All confidential Information disclosed by either Party pursuant to the Existing Confidentiality Agreement, shall be deemed to be such Party’s Confidential Information hereunder.

     1.16 “Control” means, with respect to any material, Information, or intellectual property right, that a Party owns or has a license to such material,
Information, or intellectual property right and has the ability to grant to the other Party access, a license, or a sublicense (as applicable) to such material, Information, or intellectual property right on the terms and conditions set forth herein
without violating the terms of any then-existing agreement or other arrangement with any Third Party.

	
1.17      		
“Cost of Goods Sold” has the meaning set forth in Exhibit A.	
	 
	
1.18      		
“CRXX Claims” has the meaning set forth in Section 11.1.	
	 
	
1.19      		
“CRXX Indemnitees” has the meaning set forth in Section 11.1.	
	 
	
1.20      		
“CRXX Know-How” means all Information (excluding any CRXX Patents) that	
	 

is (a) Controlled as of the Effective Date by CRXX or its Affiliate; or (b) made by or on behalf of CRXX or its Affiliates or sublicensees pursuant to performing CRXX’s obligations or exercising CRXX’s rights under this
Agreement (including any Sole Inventions of CRXX and any Joint Inventions) and, in the case of both (a) and (b), is reasonably necessary or useful for the research, Development, manufacture, use, importation or sale of Products.

     1.21 “CRXX Patents” means all patents and patent applications that (a) are Controlled as of the Effective Date or during the Term by CRXX or its Affiliates
and that claim, and only to the extent that such patents and patent applications claim, the composition of matter, manufacture, or use of the Compound, such patents and patent applications and the applicable claims thereof set forth on
Exhibit C (including any future claims derived therefrom), (b) are substitutions, divisions, continuations, continuations-in-part (to the extent directed to the subject matter disclosed in a
patent or patent application described in (a)) and requests for continued examination of any of the foregoing, (c) are patents arising from or claiming priority to any of the foregoing, (d) are reissues, renewals, registrations, confirmations,
re-examinations, extensions, and supplementary protection certificates of any of the foregoing, and/or (e) all foreign equivalents of any of the foregoing. For the avoidance of doubt, the CRXX Patents shall include any patent or application claiming
a Sole Invention of CRXX and any Joint Patent, in each case solely to the extent that such patent or patent application claims the composition of matter,

	
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3

manufacture, or use of the Compound (whether or not such patents or patent applications are listed on Exhibit C). 

	
1.22      		
“CRXX Technology” means the CRXX Patents and CRXX Know-How.	
	 
	
1.23      		
“Damages” has the meaning set forth in Section 11.4.	
	 
	
1.24      		
“Development” means all activities that relate to (a) obtaining, maintaining or	
	 

expanding Regulatory Approval of Product or (b) developing the ability to manufacture clinical and commercial quantities of Product. This includes, without limitation, (i) research, preclinical testing, toxicology, formulation,
manufacturing-related technology development, and clinical studies of Product; (ii) preparation, submission, review, and development of data or information for the purpose of submission to a governmental authority to obtain, maintain and/or expand
Regulatory Approval of Product, and outside regulatory services related thereto; (iii) manufacturing process development and scale-up, bulk production and fill/finish work associated with the supply of Product for preclinical and clinical studies,
and related quality assurance technical support activities; (iv) post-Regulatory Approval product support for Product (including manufacturing and quality assurance technical support, and laboratory and clinical efforts directed toward the further
understanding of the safety and efficacy of Product); and (v) Product-related medical affairs (including regulatory support necessary for product maintenance). “Develop” has a
correlative meaning. 

     1.25 “Development Plan” means the plan for conducting collaborative Development of Products for use in the Field, as set forth in Section 4.2(a).

     1.26 “Diligent Efforts” means, with respect to CRXX’s obligations under this Agreement to Develop or Commercialize a Product, the efforts and resources
comparable to those undertaken by CRXX in pursuing intellectual property protection and the research, discovery or commercialization of proprietary materials and the development of product candidates, as applicable, that are not subject to the
Collaboration and that are at an equivalent stage of development or commercialization and have similar market potential and are at a similar stage in their lifecycle, taking into account factors such as, mechanism of action; efficacy and safety;
product profile; actual or anticipated Regulatory Authority approved labeling and pricing; and the nature and extent of market exclusivity (including patent coverage, proprietary position and regulatory exclusivity; cost, time required for and
likelihood of obtaining Regulatory Approval; competitiveness of alternative products and market conditions, actual or projected profitability and availability of capacity to manufacture and supply for commercial sale), as applicable.  In addition,
factors beyond the reasonable control of CRXX, including without limitation, regulatory delays, safety findings, unforeseen technical challenges, the failure of a Product to meet necessary scientific or regulatory endpoints, and events described in
Section 15.2 shall be taken into account.

	
1.27      		
“Distribution Expenses” has the meaning set forth in Exhibit A.	
	 
	
1.28      		
“European Union” or “EU” means all of the European Union member states as	
	 

	
of the applicable time during the Term.

	
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4

     1.29 “Executive Officer” means (a) in the case of PGx, the Chief Executive Officer of CLDA and (b) in the case of CRXX, the Chief Executive Officer of
CRXX.

     1.30 “Existing Confidentiality Agreement” means the Confidentiality Agreement entered into by CRXX and PGx, as successor in interest to ATL, dated August 3,
2007.

	
1.31      		
“FDA” means the United States Food and Drug Administration or its successor.	
	 
	
1.32      		
“FD&C Act” means the United States Federal Food, Drug and Cosmetic Act, as	
	 

	
amended.

     1.33 “Field” means the treatment, prevention and diagnosis of cancer in humans, but specifically excluding the Retained Field.

     1.34 “First Commercial Sale” means, with respect to a Product and country, the first sale to a Third Party of such Product in such country after Regulatory
Approval (and any pricing or reimbursement approvals, if necessary) has been obtained in such country.

     1.35 “FTE” means a full-time equivalent person-year (consisting of a total of 1960 hours per year)
of scientific, technical, or managerial work on or directly related to activities performed under the Collaboration.

     1.36 “Governmental Authority” means any multi-national, federal, state, local, municipal or other government authority of any nature (including any
governmental division, subdivision, department, agency, bureau, branch, office, commission, council, court or other tribunal).

     1.37 “Information” means any data, results, and information of any type whatsoever, in any tangible or intangible form, including, without limitation,
know-how, trade secrets, practices, techniques, methods, processes, inventions, developments, specifications, formulations, formulae, materials or compositions of matter of any type or kind (patentable or otherwise), software, algorithms, marketing
reports, expertise, stability, technology, test data including pharmacological, biological, chemical, biochemical, toxicological, and clinical test data, analytical and quality control data, stability data, studies and procedures. 

	
1.38      		
“Initial Development Plan” has the meaning set forth in Section 4.2(b).	
	 
	
1.39      		
“JAMS Rules” has the meaning set forth in Section 14.2.	
	 
	
1.40      		
“Joint Invention” has the meaning set forth in Section 9.1.	
	 
	
1.41      		
“Joint Patent” has the meaning set forth in Section 9.3(c).	
	 
	
1.42      		
“JSC” means the joint steering committee formed by the Parties as described in	
	 

	
Section 3.1. 
		
 		
 
	
	
                    1.43 
		
 		
“License Commercialization Report” has the meaning set forth in Section 6.6. 
	
	
 
	
	
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1.44 
		
 		
“License Development Report” has the meaning set forth in Section 4.9. 
	
	
 
		
 		
1.45 
		
 		
“Major EU Country” means the United Kingdom, France, Germany, Italy or 
	
	
Spain. 
		
 		
 
		
 		
 
	
	
 
		
 		
1.46 
		
 		
“Marketing Authorization Application” or “MAA” means an application for 
	

Regulatory Approval in a country, territory or possession other than the United States.

	
1.47      		
“Marketing Expenses” has the meaning set forth in Exhibit A.	
	 
	
1.48      		
“Marks” has the meaning set forth in Section 9.7.	
	 
	
1.49      		
“NDA” means a New Drug Application, as defined in the FD&C Act and	
	 

applicable regulations promulgated thereunder by the FDA.

     1.50 “Net Sales” means, with respect to any Product, the gross amount invoiced by a Party, an Affiliate, or any sublicensee of a Party for sales of such
Product to a Third Party less: (a) normal and customary trade, quantity and cash discounts, rebates and chargebacks, and non-affiliated broker’s, distributor’s or agent’s commissions, in each case actually taken; (b) credits actually
given for returned Product (including withdrawals and recalls); (c) sales, excise, and turnover taxes and duties levied on and/or other governmental charges made as to production, sale, importation, transportation, delivery or use of a Product
imposed directly on and actually paid by a Party or its Affiliates or sublicensees (but excluding any income taxes); (d) transportation costs, including insurance and shipping, freight, and handling charges, to the extent allocated to customers; and
(e) the customary costs of special packaging and/or administration items packaged and sold with a Product. Sales between a Party and its Affiliates and sublicensees (including distributors) shall be disregarded for purposes of calculating Net Sales
except if such purchaser is an end user.

In the event that a Product is sold as part of a Combination Product, where “Combination Product” means any unified dose (e.g., not a kit of two separate and distinct drug dosage forms) of pharmaceutical product which is
comprised of Product and other therapeutically active compound(s) and/or ingredient(s) (collectively the “Other Products”), Net Sales of Product, for the purposes of determining royalty payments, shall be determined by multiplying the Net
Sales of the Combination Product by the fraction, A / (A+B) where A is the weighted average sale price of the Product when sold separately in finished form, and B is the weighted average sale price of the Other Products sold separately in finished
form, in each case in the country of sale of the Combination Product in the calendar quarter of such sale, provided that the Net Sales in any royalty period shall in no event be reduced by more than fifty percent (50%) by reason of the foregoing
sentence. In the event that no separate sales are made of either the Product or the Other Products, the reasonably estimated commercial value thereof will be used instead of the sale price. Notwithstanding the foregoing, the adjustment of Net Sales
as set forth in this paragraph shall not apply if the composition of matter of such other active ingredient is not claimed in any issued and unexpired patent claim owned by CRXX or a third party.

	
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Each of “weighted average sale price” and “reasonably estimated commercial value” shall be determined as set forth below: “Weighted average sale price” and “reasonably estimated commercial
value,” as the case may be, for a Product and Other Products shall be calculated once at the commencement of each calendar year and such amount shall be used during all applicable royalty reporting periods for the entire following calendar
year. When determining the weighted average sale price of a Product or Other Products, the weighted average sale price shall be calculated by dividing the Net Sales (translated into U.S. dollars in accordance with Section 8.9) by the units of active
ingredient sold during the twelve (12) months (or the number of months sold in a partial calendar year) of the preceding calendar year for the respective Product or Other Products. “Estimated commercial value” shall be determined by
agreement of the Parties using criteria to be mutually agreed upon by the Parties. If the Parties do not agree, such dispute shall be first referred to the JSC to be resolved in accordance with Section 3.5, but if not resolved as set forth in
Section 3.5, shall be resolved in accordance with Article 14 hereof. In the calendar year in which the First Commercial Sale occurs, a forecasted weighted average sale price will be used for the Product and Other Products, if applicable. Any over or
under payment due to a difference between forecasted and actual weighted average sale prices will be paid or credited in the first royalty payment of the following calendar year.

     With respect to any sale or other disposal of any Product for any consideration other than exclusively monetary consideration on arm's length terms, for purposes of calculating the gross sales amount
necessary to calculate the Net Sales under this Agreement, such Product shall be deemed to be sold exclusively for money at the average gross invoice price charged to Third Parties for cash sales during the applicable reporting period.

     Net Sales shall be determined in accordance with generally accepted accounting principles in the United States.

     1.51 “Partnering Agreement” means an agreement under which either or both Parties grant (or, with the written approval of both Parties, if such approval of
both Parties is required under the terms of this Collaboration Agreement, one of the Parties grants) a license under the Collaboration Technology to a Third Party to Develop and/or Commercialize a Product in the Field. For the avoidance of doubt,
any agreement between PGx and a Third Party (including, but not limited to, Santen Pharmaceuticals) to Develop and Commercialize the Compound for the treatment of any ophthalmic disease by topical administration into the eye shall not be treated as
a Partnering Agreement.

     1.52 “Partnering Revenue” means any and all forms of consideration that either Party receives from a Third Party in connection with a Partnering Agreement,
which may include upfront license fees, annual license or maintenance payments, milestone payments, royalties, and other similar payments.

	
1.53      		
“Patent Expenses” has the meaning set forth in Exhibit A.	
	 
	
1.54      		
“PGx Claims” has the meaning set forth in Section 11.2.	
	 

	
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1.55      		
“PGx Indemnitees” has the meaning set forth in Section 11.2.	
	 
	
1.56      		
“PGx Know-How” means all Information (excluding any PGx Patents) that is (a)	
	 

Controlled as of the Effective Date by PGx ; or (b) made by or on behalf of PGx or its Affiliate pursuant to performing PGx’s obligations or exercising PGx’s rights under this Agreement (including any Sole Inventions of
PGx and any Joint Inventions) and, in the case of both (a) and (b), is reasonably necessary or useful for the research, Development, manufacture, use, importation or sale of Products in the Field.

     1.57 “PGx Patents” means all patents and patent applications that (a) are Controlled as of the Effective Date or during the Term by PGx and that claim the
composition of matter, manufacture or use in the Field of the Compound, (b) are substitutions, divisions, continuations, continuations-in-part (to the extent directed to the subject matter disclosed in a patent or patent application described in
(a)) and requests for continued examination of any of the foregoing, (c) are patents arising from or claiming priority to any of the foregoing, (d) are reissues, renewals, registrations, confirmations, re-examinations, extensions, and supplementary
protection certificates of any of the foregoing, and/or (e) are foreign equivalents of any of the foregoing. For the avoidance of doubt, the PGx Patents shall include any patent or application claiming a Sole Invention of PGx and any Joint Patents,
in each case solely to the extent that such patent or patent application claims the composition of matter, manufacture, or use in the Field of the Compound.

	
1.58      		
“PGx Technology” means the PGx Patents and PGx Know-How.	
	 
	
1.59      		
“Phase 2 Clinical Trial” means a human clinical trial of a Product, the principal	
	 

purpose of which is to evaluate the effectiveness of such Product in the target patient population, as described in 21 C.F.R. § 312.21(b), or a similar clinical study prescribed by the Regulatory Authorities in a country
other than the United States. For purpose of this Agreement, “initiation of a Phase 2 Clinical Trial” for a Product means the first enrollment of a human in the Phase 2 Clinical Trial involving administration of such Product.

     1.60 “Phase 3 Clinical Trial” means a human clinical trial of a Product on a sufficient number of subjects that is designed to (a) establish that a drug is
safe and efficacious for its intended use; (b) define warnings, precautions and adverse reactions that are associated with the drug in the dosage range to be prescribed; and (c) support Regulatory Approval of such drug, as described in 21 C.F.R.
§ 312.12(c), or a similar clinical study prescribed by the Regulatory Authorities in a country other than the United States. For purpose of this Agreement, “initiation of a Phase 3 Clinical Trial” for a Product means the first
enrollment of a human in the Phase 3 Clinical Trial involving administration of such Product.

     1.61 “Phase 4 Clinical Trial” means a human clinical trial of a Product conducted after Regulatory Approval of such Product has been obtained from an
appropriate Regulatory Authority, which trial is (a) conducted voluntarily by a Party to enhance marketing or scientific knowledge of the Product, or (b) conducted due to a request or requirement of a Regulatory Authority. 

	
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1.62      		
“Post-Launch Product R&D Expenses” has the meaning set forth in Exhibit A.	
	 
	
1.63      		
“Pre-Launch Commercialization Costs” means all costs that are actually	
	 

incurred, prior to the First Commercial Sale of a Product in the Territory, by a Party or for its account and are specifically attributable to such Party’s satisfaction of its obligations pursuant to the Commercialization
Plan for such Product for the purpose of promoting sales of such Product in the Territory, provided that such costs are less than or equal to the amount specified therefor in the budget associated with such Commercialization Plan; provided that
costs incurred pursuant to Section 11.4 shall not be subject to any limitations set forth in any Commercialization Plan budget.

     1.64 “Product” means a product that contains the Compound, whether as a single active pharmaceutical ingredient or combined with other active pharmaceutical
ingredients.

	
1.65      		
“Product Infringement” has the meaning set forth in Section 9.4(a).	
	 
	
1.66      		
“Product Profit” means the worldwide profits or losses resulting from the	
	 

Commercialization of Products and shall be equal to Net Sales plus any Partnering Revenue, less Allowable Expenses.

	
1.67      		
“Publication” has the meaning set forth in Section 12.4.	
	 
	
1.68      		
“Recall Expenses” has the meaning set forth in Exhibit A.	
	 
	
1.69      		
“Regulatory Approval” means all approvals necessary for the manufacture,	
	 

marketing, importation and sale of a Product for one or more indications in a country or regulatory jurisdiction, which may include, without limitation, satisfaction of all applicable regulatory and notification requirements, but
which shall exclude any pricing and reimbursement approvals.

     1.70 “Regulatory Authority” means, in a particular country or regulatory jurisdiction, any applicable Governmental Authority involved in granting Regulatory
Approval and/or, to the extent required in such country or regulatory jurisdiction, pricing or reimbursement approval of a Product in such country or regulatory jurisdiction, including without limitation, (a) the FDA, (b) the European Medicines
Agency, (c) the European Commission, and (d) Japanese Ministry of Health, Labour and Welfare, and in each of (a) through (d), including any successor thereto.

	
1.71      		
“Regulatory Expenses” has the meaning set forth in Exhibit A.	
	 
	
1.72      		
“Regulatory Materials” means regulatory applications, submissions,	
	 

notifications, registrations, Regulatory Approvals and/or other filings made to or with a Regulatory Authority that are necessary or reasonably desirable in order to Develop, manufacture, market, sell or otherwise Commercialize a
Product in a particular country or regulatory jurisdiction.  Regulatory Materials include, without limitation, INDs, MAAs, and NDAs.

	
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     1.73 “Retained Field” means the following: (a) the treatment of any ophthalmic disease (including,
without limitation, cancer) by topical administration into the eye; and (b) the treatment of pain via intrathecal administration.

	
 
		
 		
1.74 
		
 		
“Royalty Term” has the meaning set forth in Section 8.4(d). 
	
	
 
		
 		
1.75 
		
 		
“SEC” means the United States Securities and Exchange Commission. 
	
	
 
		
 		
1.76 
		
 		
“Section 8.4(a) Sublicensing Arrangement” has the meaning set forth in Section 
	
	
8.4(b). 
		
 		
 
		
 		
 
	
	
 
		
 		
1.77 
		
 		
“Section 8.4(b) Sublicensing Arrangement” has the meaning set forth in 
	

	
Section 8.4(b).

     1.78 “Shared Development Costs” means all costs that are actually incurred by a Party or for its account and are specifically attributable to the Development
of Products pursuant to such Party’s obligations under the Development Plan, as such Development Plan may be amended or adjusted pursuant to Article 4. Costs in excess of ten percent (10%) of the amount specified therefor in the budget
associated with such Development Plan shall not be deemed Shared Development Costs unless consented to in writing by the Party that did not incur such costs.  Shared Development Costs shall include out-of-pocket costs actually incurred by each
Party, and all internal direct costs incurred by a Party in connection with the Development of Products. Each Party shall record and account for its internal direct costs for the Development of Products and shall report such costs to the other Party
on a quarterly basis as provided in Section 4.8(c). Internal costs shall not include the work of general corporate or administrative personnel, but shall include a twenty percent (20%) overhead fee applied to the cost of internal personnel assigned
to the Collaboration. For clarity, Shared Development Costs shall include those certain costs described in Section 2.11 and those certain payments set forth in Section 8.5(b).

	
1.79      		
“Sole Inventions” has the meaning set forth in Section 9.1.	
	 
	
1.80      		
“Term” has the meaning set forth in Section 13.1.	
	 
	
1.81      		
“Territory” means all countries in the world, except as may be reduced pursuant	
	 

	
to Section 13.3(b).

     1.82 “Third Party” means any entity other than PGx or CRXX or an Affiliate of either of them.

	
1.83      		
“UVA” means the University of Virginia.	
	 
	
1.84      		
“UVA Agreement” means that certain UVAPF/ATI License Agreement by and	
	 

between UVAPF and ATL, effective as of April 22, 1999, as amended.

1.85 “UVAPF” means the University of Virginia Patent Foundation.

	
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ARTICLE 2

LICENSES

     2.1 License to CRXX. Subject to the terms and conditions of this Agreement, PGx hereby grants to CRXX an exclusive (even as to PGx), worldwide, royalty-bearing,
sublicensable (subject to Sections 2.6 and 2.11) license, under the PGx Technology, to Develop, make, have made, use, import, sell, offer for sale, and market Products in the Field in the Territory. CRXX acknowledges and agrees that, as of the
Effective Date, the foregoing license grants rights under the PGx Patents solely with respect to the specific patent claims set forth in Exhibit D attached hereto. The Parties acknowledge
and agree that, with respect to any and all PGx Patents filed after the Effective Date, the license granted under this Section 2.1 shall include all outstanding claims included in such PGx Patents.

     2.2 License to PGx. Subject to the terms and conditions of this Agreement, CRXX hereby grants to PGx, (a) a non-exclusive, royalty-free license, under the CRXX
Technology, solely to the extent necessary to conduct those Development responsibilities assigned to it under the Development Plan in the Territory, sublicensable solely to PGx’s Affiliates or to any of PGx’s subcontractors approved by the
JSC; and (b) a non-exclusive, worldwide, and royalty-free license, under the CRXX Patents, solely to the extent necessary to develop, make, have made, use, sell, offer for sale, import and market the Product for use in the Retained Field.

     2.3 PGx Retained Rights.  Notwithstanding anything in this Agreement to the contrary: 

     (a) PGx shall retain the right under the PGx Technology to conduct those Development responsibilities assigned to it under the Development Plan and to perform
non-clinical research relating to the Compound, either internally or together with academic collaborators existing on the Effective Date.  Additionally, for the avoidance of doubt, as between the Parties, PGx shall retain exclusive rights under the
PGx Technology (i) with respect to all products that are not Products and (ii) with respect to any Product for use outside the Field, including, without limitation, any product for use in the Retained Field.

     (b) For the avoidance of doubt, as between the Parties, CRXX shall retain exclusive rights under the CRXX Technology (i) with respect to all products that are not
Products and (ii) with respect to any Product for use outside the Field, subject to the license grant set forth in Sections 2.2 and 13.5.

     2.4 No Non-Permitted Use. CRXX hereby covenants that it shall not, nor shall it cause or permit any Affiliate or sublicensee to knowingly use or practice, directly or
indirectly, any PGx Technology for any purposes other than those expressly permitted by this Agreement. PGx hereby covenants that it shall not, nor shall it cause or permit any Affiliate or sublicensee to knowingly use or practice, directly or
indirectly, any CRXX Technology for any purposes other than those expressly permitted by this Agreement.

	
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     2.5 No Other Licenses. Neither Party grants to the other Party any rights or licenses in or to any intellectual property, whether by implication, estoppel, or
otherwise, other than the license rights that are expressly granted under this Agreement.

     2.6 Sublicense Agreements.  In each agreement under which CRXX grants a sublicense under the license set forth in Section 2.1 (each, a “Sublicense Agreement”), such Sublicense Agreement(s) shall provide for the right to develop, manufacture and commercialize the Product to revert in the manner consistent with Sections
13.5(a)-(e), to CRXX if such Sublicense Agreement terminates, or, as the case may be, to PGx in the event the Sublicense Agreement terminates and this Agreement terminates for reasons other than by CRXX pursuant to Section 13.3(a).  Such Sublicense
Agreement shall provide for PGx to be a third party beneficiary to the provisions contained in the Sublicense Agreement equivalent to Section 13.5(a)-(e) hereof if this Agreement terminates other than by CRXX pursuant to Section 13.3(a). Each
Sublicense Agreement shall also include (y) diligence obligations no less stringent than those set forth in Sections 4.4 and 6.3; and (z) the terms and conditions (A) that are incorporated into this Agreement pursuant to Section 2.7(d), modified
only to indicate that CRXX’s sublicensee is obligated to CRXX as PGx is to UVAPF thereunder, and (B) that are incorporated into this Agreement pursuant to Section 2.7(e), modified only to indicate that CRXX’s sublicensee is obligated to
CRXX, PGx, UVA, and UVAPF as PGx is obligated to UVA and/or UVAPF under the UVA Agreement.  CRXX shall provide to PGx a copy of each Sublicense Agreement promptly following its execution.

	
2.7      		
UVA Agreement.	
	 
	 	
(a) The Parties acknowledge that the licenses granted by PGx to CRXX under	
	 

Section 2.1 include sublicenses of Third Party intellectual property licensed to PGx under the UVA Agreement.

     (b) PGx shall be solely responsible for paying all milestones, royalties and other payments owed by PGx under the UVA Agreement as result of Development, manufacture,
and Commercialization of Products by CRXX, its Affiliates and sublicensees. Notwithstanding the foregoing, in the event that PGx exercises its Co-Development Option, all such milestones, royalties and other payments under the UVA Agreement shall be
charged against the Collaboration as Shared Development Costs or Allowable Expenses, as appropriate based on Section 8.5(b).

     (c) Notwithstanding anything to the contrary in this Agreement, CRXX shall, in exercising such sublicense rights granted under Section 2.1, comply with all applicable
provisions of the UVA Agreement expressly applicable to a sublicensee other than any obligations to make payments to UVA.

     (d) Without limiting the generality of Section 2.7(c), both of the parties acknowledge that under the UVA Agreement, this Agreement is required to contain and is
therefore agreed and deemed to contain the following provisions of the UVA Agreement, which are incorporated herein by reference as if fully set forth herein, modified only as specifically set forth below and to provide that CRXX is obligated to PGx
as PGx (as successor in interest to

	
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ATL) is to UVAPF and, unless the context otherwise requires, that “CRXX” is substituted for “ATI” and “PGx” is substituted for “UVAPF”:

     (i) Article 5, provided that the reference in Section 5.2.4 of the UVA Agreement to “Section 4.1” is understood to mean Section 8.4 in this Agreement, the
reference in Section 5.2.3 of the UVA Agreement to “Section 1.7” is understood to mean Section 1.50 of this Agreement, and Section 5.2.7 of the UVA Agreement shall not apply; further provided that it is understood that the last paragraph
of Section 5.2 of the UVA Agreement, the last two sentences of Section 5.3 of the UVA Agreement and Section 5.4 of the UVA Agreement shall only apply with respect to UVAPF with respect to the subject matter of such provisions and shall not apply
with respect to such subject matter between the Parties; and

     (ii) Article 7, provided that (A) the incorporation of Section 7.5 of the UVA Agreement shall not grant CRXX any greater termination rights than are set forth in
Article 13 hereof and (B) the incorporation of Section 7.4 of the UVA Agreement shall not apply to any provision of the UVA Agreement not incorporated pursuant to Section 2.7(d) or (e) of this Agreement.

     (iii) Articles 8 (it being understood that Article 8 shall only apply with respect to Confidential Information of UVA and UVAPF and not with respect to Confidential
Information of the Parties hereto, which shall be decided in accordance with Article 12 of this Agreement), 10 (it being understood that Article 10 shall only apply with respect to adjudication of UVA’s and UVAPF’s rights and not with
respect to disputes solely between the Parties hereto, which shall be decided in accordance with Article 14 of this Agreement), 13, 15, 16, 18 (provided that the reference to the term sheet therein is understood to be a reference to the term sheet
between CRXX and CLDA, dated March 6, 2009), 19 (it being understood that Article 19 shall only apply with respect to the law governing and the required jurisdiction of UVA’s and UVAPF’s rights and not with respect to the governing law and
jurisdiction solely between the Parties hereto, which shall be decided in accordance with Sections 14.4 and 14.11 of this Agreement), and 20 through 22

     (iv) The definitions in Article 1, to the extent such definitions are necessary to implement any of the foregoing.

     (e) Without limiting the generality of Section 2.7(c), both of the parties further acknowledge that under the UVA Agreement, this Agreement is required to contain and
is therefore agreed and deemed to contain the following provisions of the UVA Agreement, which are incorporated herein by reference as if fully set forth herein, modified only to indicate that CRXX is obligated to PGx, UVA and UVAPF as PGx (as
successor in interest to ATL) is obligated to UVA and/or UVAPF under the UVA Agreement:

	
(i)      		
Sections 6.4 and 6.5; and	
	 
	
(ii)      		
Articles 11 (it being understood that Article 11 shall only apply	
	 

with respect to indemnification of UVA’s and UVAPF’s losses and not with respect to losses suffered by either of the Parties hereto, which shall be decided in accordance with Article 11 of

	
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this Agreement) and 12 (it being understood that Sections 12.1(a)(ii) and 12.3 of the UVA Agreement shall only apply with respect to UVA and UVAPF rights and not with respect to insurance requirements solely between the Parties
hereto, which shall be decided in accordance with Section 11.6 of this Agreement).

     (f) The parties agree that the provisions of the UVA Agreement incorporated into this Agreement pursuant to Sections 2.7(d) and (e) are not exhaustive with respect to
the subject matter of such sections and that this Agreement contains additional obligations and rights of the Parties related to the subject matter of the UVA Agreement provisions incorporated herein and that such obligations and rights of this
Agreement are still applicable to the Parties provided they do not conflict with the incorporated provisions of the UVA Agreement. For the purpose of this Section 2.7(f), two provisions shall only “conflict” if it is not possible, through
the use of commercially reasonable efforts, for a Party to comply with both provisions. 

     2.8 Other Third Party Agreements.  CRXX shall be solely responsible for obtaining, at its sole expense, any agreements with Third Parties (other than the UVA
Agreement) required in order to lawfully perform Development, manufacturing, and Commercialization activities, subject to the royalty offset set forth in Section 8.5(a) and the cost sharing contemplated by Section 8.5(b).  CRXX shall use
commercially reasonable efforts to ensure that each material Third Party clinical trial, contract manufacturing, or service agreement entered into by CRXX or its Affiliates with respect to the Products contains provision(s) permitting such Third
Party contract to be assigned in accordance with Section 13.5(d) and shall ensure that any Third Party patents, patent applications, Information, or other intellectual property that is licensed by CRXX from a Third Party and that would be CRXX
Technology if Controlled by CRXX will be sublicensable to PGx pursuant to Section 13.5(a).

     2.9 Government Rights. Notwithstanding anything herein to the contrary, any and all licenses and other rights granted hereunder are limited by and are subject to the
rights and requirements of the United States Government which may attach as a result of Government sponsorship of research in which one or more inventions and/or discoveries covered by one or more of the PGx Patents and/or CRXX Patents was conceived
or first actually reduced to practice, as set forth in 37 C.F.R. Part 401 and/or in the applicable Government research grant, and as such rights and requirements may be amended or modified by law. 

     2.10 Mutual Exclusivity.  Except for (a) its activities pursuant to the Development Plan or Commercialization Plan and (b) the ability of PGx to Develop and
Commercialize the Compound for the Retained Field, either by itself, through its Affiliates or in collaboration with any Third Party, (including, but not limited to, Santen Pharmaceuticals), each Party hereby covenants that, during the Term, neither
it nor its Affiliates will, directly or indirectly, research, Develop or Commercialize, or enter into any collaboration or license agreement with any Third Party in connection with the research, Development or Commercialization of the Compound or
any Product for any indication, provided, however, it being understood that this shall not prevent CRXX from entering into sublicenses pursuant to Section 2.6 or either Party from entering into Partnering Agreements pursuant to Section 2.11.  Except
for its activities pursuant to the Development Plan or Commercialization Plan, CRXX hereby covenants that, during the Term, neither it nor its Affiliates will, directly or indirectly, research, develop or commercialize, or

	
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enter into any collaboration or license agreement with any Third Party in connection with the research, development or commercialization of any A2a Agonist for use in the Field.

     2.11 Partnering Agreements. If PGx exercises the Co-Development Option, then the Parties agree that (a) all discussions with potential Third Party collaborators
regarding entry into a Partnering Agreement will be coordinated by, and subject to the prior approval of, the JSC and that (b) absent such approval, neither Party shall grant (or purport to grant) to any potential Third Party collaborator any rights
in the Collaboration Technology in the Field. Any costs incurred by either Party in connection with negotiation, execution, or performance of any Partnering Agreement shall be charged against the Collaboration as Shared Development Costs or
Allowable Expenses, as appropriate.

	
ARTICLE 3

GOVERNANCE

     3.1 Joint Steering Committee.  Within twenty (20) days after the Effective Date, PGx and CRXX shall form a joint steering committee (“JSC”) consisting of three (3) representatives from PGx or one of its Affiliates and three (3) representatives from CRXX. Each Party may replace its JSC representatives at any time upon prior
written notice to the other Party. JSC membership shall evolve over time as the project progresses so that each Party’s combined membership represents the key functions (such as Development, manufacturing or Commercialization) that are the
current focus of work on Products. 

     3.2 Meetings of the JSC. The JSC shall meet at least two (2) times every calendar year prior to the exercise of the Co-Development Option by PGx and four (4) times
every calendar year if PGx exercises the Co-Development Option unless a particular meeting is waived by mutual consent, on such dates and at such times as agreed to by CRXX and PGx, alternating between the CRXX’s and PGx’s places of
business. Each Party may permit visitors to attend meetings of the JSC as the JSC determines. Each Party shall be responsible for its own expenses for participating in the JSC.  Meetings of the JSC shall be effective only if at least one
representative of each Party is present or participating, subject to the following sentence.

	
 
		
 		
3.3 
		
 		
Responsibilities of the JSC. The JSC shall have the responsibility and authority 
	
	
to: 
		
 		
 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
 
		
 		
(a) 
		
 		
Oversee the Development, Regulatory Approval, and Commercialization 
	

of Product in the Field in the Territory, and the manufacturing of Product in support of such activities;

	
                                        (b) 
		
 		
Review and approve the overall strategy for Development in the Field in 
	
	
the Territory; 
		
 		
 
	
	
 
	
	
                                        (c) 
		
 		
Review and approve any proposed amendments or updates to the 
	
	
Development Plan; 
		
 		
 
	

	
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     (d) Monitor the Development of Product in the Field in the Territory against the Development Plan;

     (e) Discuss the requirements for Regulatory Approval in applicable countries in the Territory and oversee regulatory matters with respect to Product in the
Territory;

     (f) Review the Commercialization Plan and any proposed amendments or updates thereto;

     (g) Monitor the Commercialization of Product in the Territory against the Commercialization Plan;

     (h) Establish subcommittees pursuant to Section 3.6 on an as-needed basis, oversee the activities of all subcommittees so established, and address disputes or
disagreements arising in all such subcommittees; and

(i) Perform such other functions as the Parties may agree in writing.

     3.4 Areas Outside the JSC’s Authority. Neither the JSC nor the Executive Officer of CRXX acting through the authority provided in Section 3.5(b) herein shall have
any authority other than that expressly set forth in Section 3.3 and, specifically, shall have no authority (a) to amend or interpret this Agreement, (b) to require PGx to perform any Development activities without PGx’s express written consent
(which may be withheld at PGx’s sole discretion), (c) to determine whether or not a Party has met its diligence or other obligations under the Agreement, or (d) to determine whether or not a breach of this Agreement has occurred.

	
3.5      		
JSC Decisions.	
	 
	 	
(a) Consensus; Good Faith; Action Without Meeting. The JSC shall	
	 

decide all matters by consensus, with each Party having one collective vote.  Consistent with Section 3.7, the members of the JSC shall act in good faith to cooperate with one another and to reach agreement with respect to issues
to be decided by the JSC. Action that may be taken at a meeting of the JSC also may be taken without a meeting if a written consent setting forth the action so taken is signed by all members of the JSC.

     (b) Failure to Reach Consensus. In the event that the members of the JSC cannot come to consensus within fifteen (15) days with respect to any matter over which the
JSC has authority and responsibility, the JSC shall submit the respective positions of the Parties with respect to such matter for discussion in good faith by the Parties’ respective Executive Officers or their respective designees.  If such
individuals are not able to mutually agree upon the resolution to such matter within fifteen (15) days after the JSC’s submission to them, then, subject to the limitations of Section 3.4, the Executive Officer of CRXX shall have the right to
decide such matter, taking into account and seeking reasonably to accommodate PGx’s legitimate interest under the Agreement, and except that in no event can the Executive Officer of CRXX unilaterally decide such matter in a manner that would
significantly extend the timelines under the Development Plan without material safety, technical, or regulatory cause, or in any other

	
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manner that is contrary to CRXX’s obligation to use Diligent Efforts to Develop the Product. Notwithstanding the foregoing, consensus of the JSC or mutual agreement of the Chief Executive Officers shall be necessary with
respect to (i) any decision that materially impairs or is reasonably likely to impair any rights or assets of PGx or any of its Affiliates, or that creates or is reasonably likely to create a financial obligation for PGx or any of its Affiliates or
obligate PGx or its Affiliates to utilize any resources), and (ii) all matters following PGx’s exercise of the Co-Development Option, and unless and until the JSC reaches consensus or the Chief Executive Officers reach mutual agreement on any
such matter, the Parties shall continue to operate under the status quo with respect to such matter and neither Party shall have the right, without the prior written consent of the other Party, to take any action that departs from the status quo
with respect to such matter.

     3.6 Subcommittees. The JSC shall have the right to establish subcommittees and to delegate certain of its powers and responsibilities thereto.  Except as mutually
agreed by the Parties, such subcommittees shall decide all matters by consensus, with each Party having one collective vote, and any disputes that cannot be resolved by a subcommittee in a reasonable time period shall be submitted to the JSC for
resolution in accordance with Section 3.5.

     3.7 Operating Principles.  The Parties hereby acknowledge and agree that the deliberations and decision-making of the JSC and any subcommittee established by the JSC
shall be in accordance with the following operating principle:

     (a) The Parties’ mutual objective is to maximize the commercial success of the Product, consistent with sound and ethical business and scientific
practices.

     3.8 Termination of JSC. The JSC shall continue to exist until the first to occur of: (a) the Parties mutually agreeing to disband the committee; or (b) PGx providing
to CRXX written notice of its intention to disband and no longer participate in the JSC or (c) thirty (30) days after one Party provides written notice of termination of the JSC to the other at any point after the Co-Development Option has expired
and has not been exercised by PGx. Thereafter, the JSC shall have no further obligations under this Agreement, and CRXX shall continue to provide to PGx the reports, summaries, correspondences, notices, minutes, etc. and take such actions and
provide such rights to PGx as required by Sections 4.5 (or, if applicable, 4.9), 5.1(c), 5.2 and 6.6.

	
ARTICLE 4

DEVELOPMENT

     4.1 Overview.  Subject to the oversight of the JSC, CRXX shall be primarily responsible for Development of Products in the Field. CRXX shall perform all Development
activities in accordance with the Development Plan. The costs of Development shall be allocated between the Parties as set forth in Sections 4.7 and 4.8.

	 	
4.2 Development Plan.

	
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     (a) Scope. The Development of each Product under this Agreement shall be governed by a worldwide Development plan (each, a “Development Plan”). Each Development Plan shall be developed in good faith with the overall objective of optimizing the commercial potential of such Product. Each Development Plan shall describe
the proposed overall program of Development for the applicable Product in the Territory, including preclinical studies, toxicology, formulation, process development, clinical studies, regulatory plans and other elements of obtaining Regulatory
Approval(s) in each applicable country, as well as timelines for key regulatory authority meetings, Drug Approval Applications and Regulatory Approvals. Each Development Plan shall include a summary of estimated Development expenses of the program
expected to be incurred during the Development process through obtaining Regulatory Approval for each proposed indication and route of delivery on a country-by-country basis. In the event of any inconsistency between the Development Plan and this
Agreement, the terms of this Agreement shall prevail.

     (b) Initial Development Plan.  Within thirty (30) days after the Effective Date, CRXX shall provide PGx with a draft Development Plan for PGx’s review. The
Parties shall use commercially reasonable efforts to reach agreement on the initial Development Plan within sixty (60) days after the Effective Date (the “Initial Development Plan”). In the event the Parties are unable, despite using commercially reasonable efforts, to agree upon the Initial Development Plan within sixty (60) days after the Effective Date, CRXX may terminate this Agreement upon thirty (30)
days written notice to PGx. Such a termination shall be considered a termination at will by CRXX under Section 13.2 for purposes of this Agreement.  The obligations of CRXX under Section 4.4 shall not commence until the first to occur of (i) the
Parties’ mutual agreement on the Initial Development Plan or (ii) one (1) year after the Effective Date

     (c) Updates to the Development Plans. Unless the Co-Development Option has expired without exercise by PGx, as early as necessary in each calendar year, CRXX shall
update and prepare the Development Plan for the following calendar year to take into account completion, commencement or cessation of Development activities not contemplated by the then-current Development Plan, and submit such proposed Development
Plan to the JSC no later than September 30 of such year for review and approval. CRXX may, at its election, update the Development Plan between annual updates subject to review and approval by the JSC. In the event that PGx does not exercise its
Co-Development Option, CRXX shall only be obligated to provide PGx with reports pursuant to Section 4.9.

     4.3 Materials Transfer.  PGx shall transfer to CRXX, at CRXX’s reasonable request, and at a mutually agreed time and in a mutually agreed manner, those materials
related to the Product that are described in Exhibit E, in each case to the extent Controlled by PGx (collectively, “Material”).

     4.4 Diligent Development. CRXX shall use Diligent Efforts to Develop Products in the Territory. Any failure by CRXX to comply with the obligations set forth in this
Section 4.4 shall be deemed to be a material breach of this Agreement, but only with respect to such country(ies) and/or jurisdiction(s) in which such failure occurs, for which PGx may exercise its rights under Article 13 to terminate the license
granted under Section 2.1 with respect to such

	
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country(ies) and/or jurisdiction(s); provided, however, that if CRXX fails to use Diligent Efforts to Develop Product(s) in the United States of America or any of the Major EU Countries, PGx may exercise its termination rights
under Article 13 with respect to this Agreement in its entirety in addition to any other available remedies at law or in equity. 

     4.5 Development Reports. Each Party shall maintain complete and accurate records (in the form of technical notebooks and/or electronic files where appropriate) of all
work conducted by it under the Development Plan and all Information resulting from such work. Such records, including any electronic files where such Information may also be contained, shall fully and properly reflect all work done and results
achieved in the performance of the Development Plan in sufficient detail and in good scientific manner appropriate for patent and regulatory purposes. Unless the Co-Development Option has expired without exercise by PGx: 

     (a) each Party shall have the right to review such records maintained by the other Party at reasonable times upon reasonable notice;

     (b) each Party shall provide the JSC, as applicable, with regular reports detailing its respective research and Development activities under the Development Plan and
the results of such activities;

     (c) unless the JSC establishes a different schedule, on or before January 31 and July 31 of each calendar year during the Term, each Party shall provide the JSC with a
written report that summarizes, in reasonable detail, all Development activities performed by such Party and its Affiliates, sublicensees, and Third Party contractors during the preceding six (6) month period, and compares such performance with the
goals and timelines set forth in the Development Plan; and

     (d) each Party shall also promptly provide the JSC or the other Party with any additional information regarding its Development of the Product reasonably requested
thereby. 

     4.6 Standards of Conduct.  Each Party shall perform, and shall ensure that its Affiliates, sublicensees, and Third Party contractors perform, the Development
activities for which it is responsible under the Development Plan in good scientific manner and in material compliance with applicable laws, rules and regulations.

     4.7 Development Expenses.  Except as set forth in Section 4.8, to the extent that CRXX and PGx agree in writing that PGx will perform Development activities after the
Effective Date, CRXX shall be responsible for all costs and expenses incurred by or on behalf of PGx in connection with such Development activities. In particular, CRXX shall pay for such costs and expenses as follows: (a) PGx personnel time at a
rate of $250,000 per FTE per day (until December 31, 2010 and thereafter subject to the adjustment mechanism set forth below); and (b) any out-of-pocket expenses incurred by PGx will be reimbursed in full.  Unless the Parties agree otherwise,
such payments shall be made on a quarterly basis, based on written invoices submitted by PGx, and shall be due thirty (30) days after CRXX’s receipt of the applicable invoice. PGx shall provide, upon CRXX’s request, invoices, agreements
and other reasonable documentation to support and document PGx’s out-of-pocket expenses.

	
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Acknowledgement by email from officers of each of the Parties shall constitute “written” agreement for PGx to perform Development activities (but email will not apply for other agreements under this Agreement unless
specifically stated herein).  Except as set forth in Section 4.8, as between the Parties, CRXX shall be responsible for all costs and expenses incurred by or on behalf of CRXX, its Affiliates, or its sublicensees in connection with Development of
Products. Commencing January 1, 2011, the FTE rate set forth above shall be adjusted each subsequent calendar year thereafter by the percentage increase or decrease, if any, between the Consumer Price Index – All Urban Consumers (CPI-U), as
published by the United States Department of Labor on June 30 of the prior calendar year compared to June 30 of the second immediately preceding calendar year.

	
4.8      		
Option to Co-Develop.	
	 
	 	
(a) No later than ten (10) days after the first availability of a final study report	
	 

from the first Phase 2 Clinical Trial for the first Product to complete a Phase 2 trial, CRXX shall provide written notice to PGx of such event, which notice shall be accompanied by an updated Development Plan for such Product, an
estimated budget for Development of such Product through Regulatory Approval in the United States, the European Union, and any other anticipated major markets, and reasonably detailed description of the Shared Development Costs incurred by CRXX
prior to the date of such notice (the “Co-Development Notice”).

     (b) PGx shall have the option (the “Co-Development Option”) to co-fund fifty percent (50%) of the
Shared Development Costs for Products, which option shall be exercisable by providing written notice to CRXX no later than ninety (90)  days after PGx’s receipt of the Co-Development Notice. No later than thirty (30) days after PGx’s
exercise of the Co-Development Option, PGx shall make a payment to CRXX equal to fifty percent (50%) of the Shared Development Costs incurred by CRXX prior to such exercise. 

     (c) If PGx elects to exercise the Co-Development Option, the Parties shall share equally all Shared Development Costs, and the remaining terms of this Section 4.8(c)
shall apply. Within forty-five (45) days after the end of each calendar quarter for as long as either Party is incurring Shared Development Costs, each Party shall submit to the JSC a statement setting forth the Shared Development Costs it incurred
in such calendar quarter. Within thirty (30) days after receipt of such reports, the JSC shall notify the Parties whether a reconciliation payment is due from one Party to the other, and if so, the amount of such reconciliation payment, so that the
Parties share equally the Shared Development Costs for such calendar quarter. The Party required to pay such reconciliation payment shall submit such payment to the other Party within thirty (30) days after receiving notice from the JSC.

     4.9 License Development Reports. If the Co-Development Option has expired and PGx has not exercised such option, on or before January 31 of each calendar year during
the Term thereafter, CRXX shall provide the PGx with a written report that summarizes, in reasonable detail, all Development activities performed by CRXX and its Affiliates, sublicensees, and Third Party contractors during the preceding calendar
year (each a, “License Development Report”), including safety data generated during such report period.

	
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ARTICLE 5

REGULATORY

	
5.1      		
Regulatory Filings	
	 
	 	
(a) CRXX shall be responsible for preparing and filing all Regulatory	
	 

Materials and seeking all Regulatory Approvals in the Territory, including preparing all reports necessary as part of an NDA or MAA. All Regulatory Materials for Products in the Territory shall be filed in the name of CRXX, and
CRXX alone shall be responsible for all communications and other dealings with the regulatory agencies relating to the Products in the Territory.  As between the Parties, CRXX shall be the legal and beneficial owner of all Regulatory Approvals in
the Territory.

     (b) The JSC shall develop and implement procedures for drafting and review of Regulatory Materials for Products in the Territory, which shall provide sufficient time
for PGx to provide substantive comments. CRXX shall consider PGx’s comments on such Regulatory Materials in good faith.

     (c) CRXX shall promptly notify PGx of all Regulatory Materials that it submits, and, at PGx’s request, shall promptly provide PGx with a copy (which may be wholly
or partly in electronic form) of such Regulatory Materials.  CRXX will provide PGx with reasonable advance notice of any scheduled meeting with any regulatory agency relating to Development and/or any Regulatory Approval in the Territory, and,
unless the Co-Development has expired without exercise by PGx, PGx shall have the right to participate in any such meeting, to the extent permitted by law, until the first Regulatory Approval has been obtained for a Product by CRXX, its Affiliates
or sublicensees. CRXX also shall promptly furnish PGx with summaries of all material correspondence or material meetings with any Regulatory Authority relating to Development, Regulatory Materials and/or a Regulatory Approval in the Territory, and
CRXX shall, at PGx’s request, promptly furnish PGx with copies of such correspondence or copies of minutes of such meetings.

     (d) Following approval of an NDA or MAA for a Product, CRXX shall retain primary responsibility for dealings with the applicable regulatory agency with respect to such
Product, including filing all supplements and other documents with such agency with respect to such NDA or MAA.

     5.2 Product Withdrawals and Recalls. In the event that any regulatory agency (a) threatens or initiates any action to remove such Product from the market in any
country in the Territory or (b) requires CRXX, its Affiliates, or its sublicensees to distribute a “Dear Doctor” letter or its equivalent regarding use of Product in the Field, CRXX shall notify PGx of such event within one (1) business
day after CRXX becomes aware of the action, threat, or requirement (as applicable).  CRXX shall consult with PGx prior to initiating a recall or withdrawal of Product in the United States, Japan, or any Major EU Country; provided,
however,

	
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that the final decision as to whether to recall or withdraw a Product in the Territory shall be made by CRXX in its sole discretion. CRXX shall be responsible, at its sole expense, for conducting any recalls or taking such other
necessary remedial action, provided that following PGx’s exercise of the Co-Development Option, all Recall Expenses with respect to Products in the Territory shall be treated as Allowable Expenses.

	
ARTICLE 6

	
COMMERCIALIZATION

     6.1 General.  Subject to the remainder of this Article 6, CRXX shall have sole responsibility and decision-making authority for Commercialization activities, all of
which shall be carried out in accordance with the Commercialization Plan. Subject to Section 8.6, CRXX shall be responsible for all costs and expenses associated with the Commercialization activities. 

	
6.2      		
Commercialization Plan.	
	 
	 	
(a) If PGx has exercised the Co-Development Option, no later than sixty (60)	
	 

days prior to the anticipated initiation of the first Phase 3 Clinical Trial, CRXX shall deliver to the JSC for its review and comment a draft written Commercialization plan setting forth anticipated Commercialization activities
to be performed with respect to Product in the Territory by CRXX or on its behalf by Third Parties (including without limitation market studies, launch plans, detailing and promotion), as well as projected timelines for such activities (the
“Commercialization Plan”).  CRXX shall implement all such reasonable comments received from the JSC and shall submit such revised document to the JSC for review.

     (b) CRXX shall thereafter update the Commercialization Plan on an annual basis as follows: CRXX shall provide the JSC with a draft update to the Commercialization Plan
no later than the thirtieth (30th) of January of each year.  CRXX shall implement all such comments received from the JSC and shall submit such revised document to the JSC for review.
CRXX may, at its election, update the Commercialization Plan between annual updates by following this same procedure.

     (c) The Commercialization Plan shall include, without limitation:  (i) a description of CRXX’s anticipated marketing activities (both pre- and post-launch),
including the plans to use key opinion leaders and focus groups; (ii) five (5) year sales projections, broken down by calendar quarter; (iii) any requirements for additional marketing studies; (iv) competitive analysis including specific actions to
mitigate competitive threats; and (v) planned promotional material and sales/detailing protocols.

     (d) It is understood that the initial Commercialization Plan delivered pursuant to Section 6.2(a) will likely include only a summary of the anticipated marketing
activities and that, reasonably in advance of the First Commercial Sale of a Product, a more detailed version of the Commercialization Plan containing the items described in Section 6.2(c) will be prepared by CRXX and delivered to the JSC pursuant
to Section 6.2(b). Without limiting the generality of the foregoing, no later than the filing of an NDA and/or MAA for a particular Product, provided

	
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that PGx has exercised the Co-Development Option, CRXX shall provide the JSC with a Commercialization Plan containing a country-by-country marketing plan for such Product in the top six (6) targeted markets.

     (e) In the event of any inconsistency between the Commercialization Plan and this Agreement, the terms of this Agreement shall prevail.

     6.3 Diligent Commercialization. CRXX shall use Diligent Efforts to Commercialize Products in each country in the Territory for each indication for which a Regulatory
Approval has been received. Without limiting the generality of the foregoing, CRXX shall satisfy each of the following requirements:

     (a) CRXX shall commence commercial sales of a Product to end users in a country, in commercially significant quantities, promptly after, and in any case not later than
six (6) months after, the date upon which Regulatory Approval and any necessary pricing approval for such Product is granted with respect to such country.

     (b) shall undertake a sales effort commensurate with optimizing the Commercialization of each Product taking into account the resources of CRXX and/or any sublicensee
or partner.

Any failure by CRXX to comply with the obligations set forth in this Section 6.3 shall be deemed to be a material breach of this Agreement, but only with respect to such country(ies) and/or jurisdiction(s) in which such failure
occurs, for which PGx may exercise its rights under Article 13 to terminate the license granted under Section 2.1 with respect to such country(ies) and/or jurisdiction(s); provided, however, that if CRXX fails to use Diligent Efforts to
Commercialize Product(s) in the United States of America or any of the Major EU Countries, PGx may exercise its termination rights under Article 13 with respect to this Agreement in its entirety or any other available remedies at law or in equity.

     6.4 Commercialization Reports.  Unless the Co-Development Option has expired without exercise by PGx:

     (a) CRXX shall keep the JSC fully informed regarding the progress and results of its Commercialization activities and those of its Affiliates, sublicensees, and Third
Party contractors.

     (b) Within thirty (30) days after the end of each calendar quarter, CRXX shall provide the JSC with a written report that summarizes, in reasonable detail, all
Commercialization activities performed during such quarter, and compares such performance with the goals and timelines set forth in the Commercialization Plan.

     (c) CRXX shall also promptly provide the JSC or PGx with any additional Information regarding the Commercialization of the Product reasonably requested thereby.

     6.5 Commercialization Standards of Conduct. CRXX shall in all respects comply with all applicable laws and regulations in Commercializing Products in the Territory
under this

	
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Agreement, including without limitation the Foreign Corrupt Practices Act of 1977, as amended (“FCPA”). CRXX represents and warrants to PGx that, as of the
approval date for any Product, CRXX and its Affiliates will have adequate procedures in place to ensure their compliance with the FCPA, as well as the compliance therewith of any sublicensees and distributors it or its Affiliates may engage; to
bring any non-compliance therewith (should it ever occur) by any of the foregoing entities to CRXX’s attention; and to promptly remedy any such non-compliance. CRXX and its Affiliates shall thereafter maintain such procedures throughout the
Term and shall promptly notify PGx in writing with respect to any non-compliance regarding Commercialization of Products.

     6.6 License Commercialization Reports.  If the Co-Development Option has expired and PGx has not exercised such option, on or before January 31 of each calendar year
during the Term thereafter, CRXX shall provide PGx with a written report that summarizes, in reasonable detail, all Commercialization activities performed by CRXX and its Affiliates, sublicensees, and Third Party contractors during the preceding
calendar year (each a, “License Commercialization Report”).

	
ARTICLE 7

	
MANUFACTURE AND SUPPLY

     7.1 Manufacturing Responsibility. Except as set forth in Section 7.3, CRXX will be responsible for the manufacturing of Products in bulk and finished form for use by
CRXX, its Affiliates, and its sublicensees in Field in the Territory and, if applicable, for use by PGx pursuant to the Development Plan.

	
7.2      		
Transfer of Manufacturing Technology.	
	 
	 	
(a) Upon request by CRXX, PGx shall transfer to CRXX or a Third Party	
	 

manufacturer reasonably acceptable to PGx material Information Controlled by PGx as of the Effective Date to enable CRXX or such Third Party manufacturer (as appropriate) to replicate the process employed by or on behalf of PGx to
manufacture Product in the Field as of the Effective Date. The costs and expenses incurred by PGx in carrying out such transfer shall be borne by PGx. 

     (b) CRXX and/or its Third Party manufacturer shall use any information transferred pursuant to Section 7.2(a) in accordance with the license granted in Section 2.1 and
solely for the purpose of manufacturing Products for uses permitted under this Agreement, and for no other purpose. 

     (c) CRXX acknowledges and agrees that PGx may condition its agreement to transfer of any Manufacturing technology or information to a Third Party manufacturer on the
execution of a confidentiality agreement between such Third Party manufacturer and PGx that contains terms substantially equivalent to those of Article 12 of this Agreement. 

	
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     7.3 Supply of Product to CRXX. At CRXX’s request and on a mutually agreeable schedule, PGx or its Affiliate shall supply to CRXX up to 10 grams of non-GMP (for
purposes of clarity, this is research grade compound that is not intended for human use), bulk Compound solely for use in the Development activities assigned to CRXX under the Development Plan.

	
ARTICLE 8

FINANCIALS

     8.1 License Fee. In the event that PGx fails to exercise the Co-Development Option by the date required by Section 4.8(b) and CRXX does not thereafter terminate this
Agreement, CRXX shall pay to PGx a non-refundable, non-creditable license fee of five million dollars ($5,000,000) by wire transfer of immediately available funds into an account designated by PGx. Such payment shall be due ten (10) days after
the first to occur of (a) CRXX’s receipt of written notice from PGx that PGx does not wish to exercise the Co-Development Option or (b) the expiration of the Co-Development Option without being exercised.

     8.2 Development and Regulatory Milestone Payments. Provided that PGx has not exercised the Co-Development Option, CRXX shall make each of the following milestone
payments to PGx upon first achievement of the corresponding milestone event with respect to a Product. 

	
 
		
 		
 
		
 		
Milestone 
		
 		
 
	
	
 
		
 		
Milestone 
		
 		
Payment 
		
 		
Milestone 
	
	
 
		
 		
Payment 
		
 		
for a 
		
 		
Payment 
	
	
                                                Milestone
Event 
		
 		
for a First 
		
 		
Second 
		
 		
for a Third 
	
	
 
		
 		
Indication 
		
 		
Indication 
		
 		
Indication 
	
	

		
		

		
		

		
		

	
	
 
		
 		
$7.0 
		
 		
$3.5 
		
 		
$3.5 
	
	
Initiation of a Phase 3 Clinical Trial of a Product 
		
 		
million 
		
 		
million 
		
 		
million 
	
	

		
		

		
		

		
		

	
	
 
	
	
Acceptance for filing of an NDA or MAA for a 
		
 		
$10.0 
		
 		
$5.0 
		
 		
$5.0 
	
	
Product in the United States or Europe 
		
 		
million 
		
 		
million 
		
 		
million 
	
	

		
		

		
		

		
		

	
	
 
	
	
Approval of an NDA for a Product in the United 
		
 		
$15.0 
		
 		
$7.5 
		
 		
$7.5 
	
	
States 
		
 		
million 
		
 		
million 
		
 		
million 
	
	

		
		

		
		

		
		

	
	
 
	
	
 
		
 		
$10.0 
		
 		
$5.0 
		
 		
$5.0 
	
	
Approval of an MAA for a Product in the EU 
		
 		
million 
		
 		
million 
		
 		
million 
	
	

		
		

		
		

		
		

	
	
 
	
	
 
		
 		
$8.0 
		
 		
$4.0 
		
 		
$4.0 
	
	
Approval of an MAA for a Product in Japan 
		
 		
million 
		
 		
million 
		
 		
million 
	

	
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Each milestone in this Section 8.2 shall be paid only once for the first Product to achieve such milestone. The maximum total amount of payment to PGx pursuant to this Section 8.2 shall be $100 million. CRXX shall notify and
pay to PGx the amounts set forth in this Section 8.2 within thirty (30) days after the achievement of the applicable milestone event. Each such payment shall be made by wire transfer of immediately available funds into an account designated by PGx.
Each such payment is nonrefundable and noncreditable against any other payments due hereunder.

     8.3 Commercialization Milestone Payments. Provided that PGx has not exercised the Co-Development Option, CRXX shall make each of the milestone payments indicated below
to PGx when annual aggregate Net Sales of all Products across all indications in the Territory first reach the specified dollar values in any calendar year.

	
Aggregate Net Sales in a Calendar Year 
		
 		
Payment 
	
	

		
		

	
	
                                      $100 
		
 		
million 
		
 		
    $5 million 
	
	

		
		

		
		

	
	
                                      $250 
		
 		
million 
		
 		
$12.5 million 
	
	

		
		

		
		

	
	
                                      $500 
		
 		
million 
		
 		
  $25 
		
 		
million 
	
	

		
		

		
		

		
		

	
	
                                          $1 billion 
		
 		
  $50 
		
 		
million 
	
	

		
		

		
		

	
	
                                          $2 billion 
		
 		
  $60 
		
 		
million 
	

Each milestone in this Section 8.3 shall be paid only once.  The maximum total amount of payment to PGx pursuant to this Section 8.3 shall be $152.5 million. CRXX shall notify and pay to PGx the amounts set forth in this
Section 8.3 within thirty (30) days after the achievement of the applicable milestone event.  Each such payment shall be made by wire transfer of immediately available funds into an account designated by PGx.  Each such payment is nonrefundable and
noncreditable against any other payments due hereunder.

     8.4 Royalties. For the term specified in Section 8.4(d), and provided that PGx has not exercised the Co-Development Option, CRXX shall pay to PGx royalties on Net
Sales either as provided in Section 8.4(a), 8.4(b), or 8.4(c), as the case may be.

     (a) So long as the event described in Section 8.4(b) has not occurred, CRXX shall pay to PGx royalties on Net Sales, at an incremental royalty rate determined by
annual Net Sales of all Products in aggregate in each calendar year as follows (subject to adjustment as set forth in Section 8.5):

	
Annual Net Sales of Products

	
Royalty Rate

	
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Portion less than or equal to $250 million 
		
 		
7% 
	
	

		
		

	
	
Portion greater than $250 million and less than or 
		
 		
8% 
	
	
equal to 
		
 		
$500 million 
		
 		
 
	
	

		
		

		
		

	
	
Portion greater than $500 million and less than or 
		
 		
9% 
	
	
equal to 
		
 		
$1 billion 
		
 		
 
	
	

		
		

		
		

	
	
Portion greater than $1 billion 
		
 		
10% 
	

For example, if the calendar year Net Sales to which the royalty obligations in this Section 8.4(a) apply were $400,000,000, the 7% royalty rate would apply to the first $250,000,000 of such Net Sales and the 8% royalty
rate would apply to the final $150,000,000 of such Net Sales.

     (b) If (i) CRXX has entered into a sublicensing arrangement under which it granted a third party the right to market and sell the Product in one or more countries
and/or jurisdictions and (ii) the lowest royalty rate that CRXX receives under such sublicensing arrangement is less than 15% of Net Sales, then following such event CRXX shall pay to PGx royalties on Net Sales at an alternative royalty rate
determined by annual Net Sales of all Products in aggregate in each calendar year thereafter as follows (subject to adjustment as set forth in Section 8.5): 

	
 
		
 		
Annual Net Sales of Products 
		
 		
Royalty Rate 
	
	

		
		

		
		

	
	
Portion less than or equal to $250 million 
		
 		
6% 
	
	

		
		

	
	
Portion greater than $250 million and less than or 
		
 		
7% 
	
	
equal to 
		
 		
$500 million 
		
 		
 
	
	

		
		

		
		

	
	
Portion greater than $500 million and less than or 
		
 		
9% 
	
	
equal to 
		
 		
$1 billion 
		
 		
 
	
	

		
		

		
		

	
	
Portion greater than $1 billion 
		
 		
10% 
	

Notwithstanding the foregoing, if the lowest royalty rate on Net Sales received by CRXX under such sublicensing arrangement is 15% of Net Sales or greater, then the applicable royalty rate(s) set forth in Section 8.4(a) (and not
those in this Section 8.4(b)) shall apply to such portion of Net Sales. If in a particular calendar quarter there are Net Sales of a particular Product in one or more countries and/or jurisdictions by a Third Party pursuant to a sublicensing
arrangement with CRXX to market and sell such Product in such country(ies) and/or jurisdiction(s) in which the lowest royalty rate on Net Sales is less than 15% (a “Section 8.4(b) Sublicensing

	
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Arrangement”) and there are also Net Sales of such Product in one or more countries and/or jurisdictions directly by CRXX or its Affiliates or pursuant to a sublicensing arrangement with CRXX
to market and sell such Product in such country(ies) and/or jurisdiction(s) in which the lowest royalty rate on Net Sales is greater than or equal to 15% (a “Section 8.4(a) Sublicensing
Arrangement”), then the royalties shall be calculated by determining the percentage of Net Sales in the Territory in such calendar quarter that are pursuant to a Section 8.4(b) Sublicensing Arrangement versus by
CRXX and its Affiliates or pursuant to a Section 8.4(a) Sublicensing Arrangement and applying that percentage to each royalty tier to determine which portion of such amount should bear royalties at rates set forth in Section 8.4(a) as opposed to the
rates set forth in this Section 8.4(b).

By way of example, if the aggregate Net Sales of a Product in a particular calendar quarter is $400 million, and comprised of $100 million of sales from a Section 8.4(b) Sublicensing Arrangement and $300 million of
sales from CRXX and its Affiliates or pursuant to a Section 8.4(a) Sublicensing Arrangement, then the applicable percentage of Net Sales that are subject to the royalty rate in Section 8.4(b) shall be $100 million divided by $400 million, or
one-fourth (1/4), and the applicable percentage of Net Sales that are subject to the royalty rate in Section 8.4(a) shall be $300 million divided by $400 million, or three-fourths (3/4).  Applying such percentages, the amount of royalties
payable (by way of example) under Section 8.4(a) and this Section 8.4(b) shall be as follows:

	
                              3/4 
		
 		
x 
		
 		
$250 
		
 		
million 
		
 		
x 
		
 		
7% 
		
 		
  = 
		
 		
$ 
		
 		
13.125 
		
 		
million 
	
	
                              1/4 
		
 		
x 
		
 		
$250 
		
 		
million x 
		
 		
6% 
		
 		
= 
		
 		
$ 
		
 		
  3.75 million 
	
	
                              3/4 
		
 		
x 
		
 		
$150 
		
 		
million 
		
 		
x 
		
 		
8% 
		
 		
  = 
		
 		
$ 
		
 		
  9.0 million 
	
	
                              1/4 
		
 		
x 
		
 		
$150 
		
 		
million x 
		
 		
7% 
		
 		
= 
		
 		
$ 
		
 		
  2.625 
		
 		
million 
	
	

		
		

		
		

		
		

		
		

		
		

		
		

		
		

		
		

	
	
Total royalties $ 28.5 million 
		
 		
 
		
 		
 
		
 		
 
		
 		
 
		
 		
 
		
 		
 
	

     (c) Know-How Royalty.  In any country where there is no Collaboration Patent covering a particular Product or the manufacture or use of such Product at the time of
sale, in consideration of licensed Know-How, CRXX shall owe royalties under Section 8.4(a) or 8.4(b) (as applicable) on the Net Sales of such Product in such country at rates that are seventy-five percent (75%) of the rates otherwise payable under
Section 8.4(a) or 8.4(b) (as applicable). If in a particular calendar quarter there are Net Sales of a particular Product in one or more countries in which there is at least one Collaboration Patent covering such Product or its manufacture or use
and there are also Net Sales of such Product in one or more countries in which there is no Collaboration Patent covering such Product or its manufacture or use, then the royalties shall be calculated by determining the percentage of Net Sales in the
Territory in such calendar quarter that are in patented versus non-patented countries and applying that percentage to each royalty tier to determine which portion of such amount should bear royalties at rates set forth in Section 8.4(a) or 8.4(b)
(as applicable) as opposed to the rates set forth in this Section 8.4(c).

By way of example, if the aggregate Net Sales of a Product in a particular calendar year is $400 million, and comprised of $100 million of sales from countries in which there is no Collaboration Patent covering the Product
or its manufacture or use and $300 million of sales from countries in which there is at least one Collaboration Patent covering the Product or its manufacture or use,

	
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then the applicable percentage of Net Sales that are in non-patented countries shall be $100 million divided by $400 million, or one-fourth (1/4), and the applicable percentage of Net Sales that are in patented countries
shall be $300 million divided by $400 million, or three-fourths (3/4). Applying such percentages, the amount of royalties payable (by way of example) under Section 8.4(a) and this Section 8.4(c) shall be as follows:

	
3/4 
		
 		
x 
		
 		
$250 
		
 		
million 
		
 		
x 
		
 		
7% 
		
 		
= 
		
 		
$ 
		
 		
13.125 
		
 		
million 
	
	
1/4 
		
 		
x 
		
 		
$250 
		
 		
million x 
		
 		
5.25% = 
		
 		
$ 
		
 		
3.281 
		
 		
million 
	
	
3/4 
		
 		
x 
		
 		
$150 
		
 		
million 
		
 		
x 
		
 		
8% 
		
 		
= 
		
 		
$ 
		
 		
  9.0 million 
	
	
1/4 
		
 		
x 
		
 		
$150 
		
 		
million x 
		
 		
6% = 
		
 		
$ 
		
 		
  2.25 million 
	
	

		
		

		
		

		
		

		
		

		
		

		
		

	
	
Total royalties 
		
 		
 
		
 		
 
		
 		
 
		
 		
$ 
		
 		
27.656 
		
 		
million 
	

     (d) Royalty Term.  Royalties due under this Section 8.4 with respect to a particular Product in a particular country, will commence upon the First Commercial Sale of
such Product in such country and will be payable until the later of (i) the expiration of the last to expire Collaboration Patent in such country that claims the Product, or its manufacture or use, and (ii) ten (10) years after the First Commercial
Sale of such Product in such country (such period, the “Royalty Term”).

     (e) Royalty Payments and Reports. All amounts payable to PGx pursuant to this Section 8.4 shall be paid in United States dollars within thirty (30) days after the end
of each calendar quarter with respect to Net Sales in such calendar quarter. Each payment of royalties due to PGx shall be accompanied by a statement, on a country-by-country basis, of the amount of gross sales of Product during the applicable
calendar quarter, an itemized calculation of Net Sales showing deductions provided for in the definition of Net Sales during such calendar quarter, and a calculation of the amount of royalty payment due on such sales for such calendar
quarter.

	
8.5      		
Reduction for Payments for Necessary Licenses.	
	 
	 	
(a) If a Patent or Patents of a Third Party should exist in any country that	
	 

covers the composition of matter or manufacture of the Compound or the use of the Compound in the Field, and it is necessary or advisable for CRXX to obtain license(s) under such Patent or Patents to engage in the activity or
activities licensed under this Agreement in particular country(-ies) (a “Necessary License”), then CRXX shall be entitled to a credit against the royalty payments due to PGx
pursuant to Section 8.4 upon sales of Product in such country in an amount up to fifty percent (50%) of any royalties actually paid under such Necessary License with respect to such Product sales, provided that any credit against royalties due on
sales of Products in a particular country shall not reduce such royalties by more than two percent (2%) of the Net Sales in such country. If in a particular calendar quarter there are Net Sales of a particular Product in one or more countries and/or
jurisdictions for which royalties on Net Sales under a Necessary License are due and there are also Net Sales of such Product in one or more countries and/or jurisdictions for which no royalties are due under a Necessary License, then the royalties
shall be calculated by determining the percentage of Net Sales in the Territory in such calendar quarter that are subject to a royalty under a Necessary License versus by those Net Sales that are not and applying that percentage to each royalty tier
to determine which portion of such amount should

	
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bear royalties at rates set forth in Section 8.4(a) or 8.4(b), as applicable, as opposed to the rates set forth in this Section 8.5(a).

By way of example, if the aggregate Net Sales of a Product in a particular calendar quarter is $400 million, and comprised of $100 million of sales that are subject to a 3% royalty on Net Sales pursuant to a Necessary
License (and therefore a 1.5% reduction to PGx) and $300 million of sales that are subject to royalties pursuant to Section 8.4(a), then the applicable percentage of Net Sales that are subject to the royalty rate in Section 8.5(a) shall be
$100 million divided by $400 million, or one-fourth (1/4), and the applicable percentage of Net Sales that are subject to the royalty rate in Section 8.4(a) shall be $300 million divided by $400 million, or three-fourths (3/4).
Applying such percentages, the amount of royalties payable (by way of example) under Section 8.4(a) and this Section 8.5(a) shall be as follows:

	
3/4 
		
 		
x 
		
 		
$250 
		
 		
million 
		
 		
x 
		
 		
7% 
		
 		
= 
		
 		
$ 
		
 		
13.125 million 
	
	
1/4 
		
 		
x 
		
 		
$250 
		
 		
million x 
		
 		
5.5% 
		
 		
= 
		
 		
$ 
		
 		
  3.4375 
		
 		
million 
	
	
3/4 
		
 		
x 
		
 		
$150 
		
 		
million 
		
 		
x 
		
 		
8% 
		
 		
= 
		
 		
$ 
		
 		
  9.0 million 
	
	
1/4 
		
 		
x 
		
 		
$150 
		
 		
million x 
		
 		
6.5% 
		
 		
= 
		
 		
$ 
		
 		
  2.4375 
		
 		
million 
	
	

		
		

		
		

		
		

		
		

		
		

		
		

		
		

		
		

	
	
 
		
 		
Total royalties $ 28.0 million 
		
 		
 
		
 		
 
		
 		
 
	

     (b) If PGx exercises the Co-Development Option, all payments under Third Party licenses (including, but not limited to, any payments under the UVA Agreement) that are
paid by either Party with respect to a Product in the Territory prior to the First Commercial Sale of such Product shall be deemed Shared Development Costs and shared between CRXX and PGx in accordance with Section 4.8(c). If PGx exercises the
Co-Development Option, all payments under Third Party licenses (including, but not limited to, any payments under the UVA Agreement) that are paid by either Party with respect to a Product in the Territory after the First Commercial Sale of such
Product shall be deemed Allowable Expenses and included in the calculation of Product Profit for such Product pursuant to Section 8.6.

	
8.6      		
Profit-Share.	
	 
	 	
(a) Share of Product Profit. Following PGx’s exercise of its Co-	
	 

Development Option, CRXX and PGx shall share equally in Product Profit arising from the sale of Product in the Field in the Territory.  This share of Product Profit shall be in lieu of any payments set forth in Sections 8.1, 8.2,
8.3, and 8.4.

     (b) Payment. Within thirty (30) days after the end of each calendar quarter following the first Allowable Expenses to be incurred by a Party or the first Net Sales to
be achieved by a Party, each Party shall report to the JSC its Net Sales and Allowable Expenses. Within thirty (30) days after receipt of such reports, the JSC shall provide a consolidated financial statement setting forth the Product Profit,
calculating each Party’s fifty percent (50%) share of such Product Profit, and directing the remittance between the Parties of any payments due from one Party to the other Party in order to achieve such split of Product Profit.  Any payment
required by this Section 8.6(b) shall be made within thirty (30) days after so directed by the JSC.

	
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30

	
8.7      		
Taxes.	
	 
	 	
(a) Cooperation and Coordination. The Parties acknowledge and agree that	
	 

it is their mutual objective and intent to minimize, to the extent reasonable, taxes payable with respect to their collaborative efforts under this Agreement and that they shall use their best efforts to cooperate and coordinate
with each other to achieve such objective.

     (b) Payment of Tax.  Subject to this Section 8.7(b), a Party receiving a payment pursuant to this Article 8 shall pay any and all taxes levied on such payment.  If
applicable law requires that taxes be withheld from a payment made pursuant to this Agreement (other than Section 8.6), the remitting Party shall (i) deduct the applicable withholding taxes from such amount; (ii) pay such withholding taxes to the
proper taxing authority; and (iii) send evidence of the obligation together with proof of payment to the other Party within sixty (60) days following that payment. If applicable law requires that taxes be withheld from any payment made pursuant to
Section 8.6, the remitting Party shall (1) pay the taxes to the proper taxing authority; and (2) send evidence of the obligation together with proof of payment to the other Party within sixty (60) days following that payment, and such payment shall
be included in Allowable Expenses when calculating the remittance under Section 8.6(b).

     8.8 Blocked Currency.  In each country where the local currency is blocked and cannot be removed from the country, royalties accrued on Net Sales in that country shall
be paid to PGx in the equivalent amount in United States dollars.

     8.9 Foreign Exchange. The rate of exchange to be used in computing the amount of currency equivalent in United States dollars of Net Sales invoiced and Development
Costs, Pre-Launch Commercialization Costs, and Allowable Expenses incurred in other currencies shall be made at the period-end rate of exchange quoted on the last business day of the applicable calendar quarter by Citibank in New York City or, to
the extent mutually agreed by the Parties, any other widely accepted source of published exchange rates.

     8.10 Late Payments. If a Party does not receive payment of any sum due to it on or before the due date, simple interest shall thereafter accrue on the sum due to such
Party from the due date until the date of payment at the prime rate (as stated in the Wall Street Journal on the date such payment was due) plus four percent (4%) or the maximum rate allowable by applicable law, whichever is less.

     8.11 Financial Records; Audits.  Each Party shall maintain complete and accurate records in sufficient detail to permit the other Party to confirm the accuracy of the
Shared Development Costs, Net Sales, and Allowable Expenses incurred or generated (as applicable) by such Party and the calculation of Product Profit, achievement of Commercialization milestones, royalty payments and other compensation payable under
this Agreement. Upon reasonable prior notice of at least fifteen (15) business days, such records shall be open during regular business hours for a period of three (3) years from the creation of individual records for examination at the auditing
Party’s expense, and not more often than once each calendar year, by an independent certified public accountant selected by the auditing Party and reasonably acceptable to the audited Party for the sole purpose of verifying for the auditing
Party the accuracy of the financial

	
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31

reports or Commercialization milestone notices furnished by the audited Party pursuant to this Agreement or of any payments made by the audited Party to the other pursuant to this Agreement. Any such auditor shall not disclose the
audited Party’s Confidential Information to the auditing Party, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by the audited Party or the amount of payments due by the audited Party
under this Agreement. Any amounts shown to be owed but unpaid or overpaid and in need of reimbursement shall be paid or refunded (as the case may be) within thirty (30) days after the accountant’s report, plus interest (as set forth in Section
8.10) from the original due date. The auditing Party shall bear the full cost of such audit unless such audit discloses that the audited Party either paid too little or received too much payment because of a discrepancy in a report that the audited
Party provided to the JSC during the applicable audit period, which underpayment or overpayment was equal to more than five percent (5%) of the amount set forth in such report, in which case the audited Party shall bear the full cost of such audit.

	
ARTICLE 9

	
INTELLECTUAL PROPERTY

     9.1 Ownership of Inventions. Each Party shall own all inventions and Information made solely by it and its Affiliates and their respective employees, agents,
consultants and independent contractors in the course of conducting such Party’s activities under this Agreement (collectively, “Sole Inventions”).  All inventions and
Information that are made jointly by employees, Affiliates, agents, consultants or independent contractors of both Parties in the course of performing activities under this Agreement (collectively, “Joint
Inventions”) shall be owned jointly by the Parties in accordance with joint ownership interests of co-inventors under United States patent laws.

     9.2 Disclosure of Inventions. Each Party shall promptly disclose to the other all Sole Inventions or Joint Inventions, including all invention disclosures or other
similar documents submitted to such Party by its, or its Affiliates’, employees, agents or independent contractors describing such Sole Inventions or Joint Inventions. Such Party shall also respond promptly to reasonable requests from the other
Party for more Information relating to such inventions. 

	
9.3      		
Prosecution of Patents.	
	 
	 	
(a) PGx Patents Other Than Joint Patents. Except as otherwise provided in	
	 

this Section 9.3(a), as between the Parties, PGx shall have the sole right and authority to prepare, file, prosecute (including any interferences, reissue proceedings and reexaminations) and maintain the PGx Patents in any
jurisdiction in the Territory. For the avoidance of doubt, Joint Patents shall be prepared, filed, prosecuted and maintained pursuant to Section 9.3(c). PGx shall provide CRXX reasonable opportunity to review and comment on such prosecution efforts
regarding such PGx Patents in the Territory. PGx shall provide CRXX with a copy of material communications from any patent authority in the Territory regarding such PGx Patents, and shall provide drafts of any material filings or responses to be
made to such patent authorities a reasonable amount of time in advance of submitting such filings or responses. If PGx determines in its sole discretion to abandon or not maintain any PGx Patent anywhere in the Territory, then

	
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PGx shall provide CRXX written notice of such determination at least thirty (30) days before any deadline for taking action to avoid abandonment and, to the extent permitted under the UVA Agreement, shall provide CRXX with the
opportunity to prepare, file, prosecute and maintain such PGx Patent in the Territory on behalf of PGx. If CRXX desires PGx to file, in a particular jurisdiction in the Territory, a PGx Patent that claims priority to another PGx Patent, CRXX shall
provide written notice to PGx requesting that PGx file such patent application in such jurisdiction.  If CRXX provides such written notice to PGx, PGx shall either (i) file and prosecute such patent application and maintain any patent issuing
thereon in such jurisdiction, or (ii) notify CRXX that PGx does not desire to file such patent application and provide CRXX with the opportunity to file and prosecute such patent application and maintain any patent issuing thereon on behalf of PGx.
CRXX’s rights under this Section 9.3 with respect to any PGx Patent licensed to PGx by a Third Party shall be subject to the rights of such Third Party to file, prosecute, and/or maintain such PGx Patent. 

     (b) CRXX Patents Other Than Joint Patents. Except as otherwise provided in this Section 9.3(b), CRXX shall have the sole right and authority to prepare, file,
prosecute (including any interferences, reissue proceedings and reexaminations) and maintain the CRXX Patents in any jurisdiction in the Territory. For the avoidance of doubt, Joint Patents shall be prepared, filed, prosecuted and maintained
pursuant to Section 9.3(c). PGx’s rights under this Section 9.3 with respect to any CRXX Patent licensed to CRXX by a Third Party shall be subject to the rights of such Third Party to file, prosecute, and/or maintain such CRXX Patent.  In
addition:

     (i) CRXX shall provide PGx reasonable opportunity to review and comment on such prosecution efforts regarding such CRXX Patents.

     (ii) CRXX shall provide PGx with a copy of material communications from any patent authority in the Territory regarding such CRXX Patents, and shall provide drafts of
any material filings or responses to be made to such patent authorities a reasonable amount of time in advance of submitting such filings or responses.

     (iii) If CRXX determines in its sole discretion to abandon or not maintain any CRXX Patent anywhere in the world, then CRXX shall provide PGx with written notice of
such determination at least thirty (30) days before any deadline for taking action to avoid abandonment and shall provide PGx with the opportunity to prepare, file, prosecute and maintain such CRXX Patent in the applicable jurisdiction on behalf of
CRXX.

     (iv) If PGx desires CRXX to file, in a particular jurisdiction, a CRXX Patent that claims priority to another CRXX Patent, PGx shall provide written notice to CRXX
requesting that CRXX file such patent application in such jurisdiction.

     (v) If PGx provides such written notice to CRXX, CRXX shall either (i) file and prosecute such patent application and maintain any patent issuing thereon in such
jurisdiction, or (ii) notify PGx that CRXX does not desire to file such patent application and provide PGx with the opportunity to file and prosecute such patent application and maintain any patent issuing thereon on behalf of CRXX.

	
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Notwithstanding anything to the contrary herein, following expiration of the Co-Development Option without exercise by PGx, subsections (i) through (v) above shall only apply with respect to CRXX Patents that are relevant to the
Retained Field.

     (c) Joint Patents. With respect to any potentially patentable Joint Invention, the Parties shall meet and agree upon which Party, if any, shall prepare, file,
prosecute (including any interferences, reissue proceedings and reexaminations) and maintain patent applications covering such Joint Invention (any such patent application and any patents issuing therefrom a “Joint
Patent”) in any jurisdictions throughout the Territory. It is the intention of the Parties that, unless otherwise agreed in writing, CRXX would prepare, file, prosecute and maintain any Joint Patents in the
Territory. The Party that prosecutes a patent application in the Joint Patents (the “Prosecuting Party”) shall provide the other Party reasonable opportunity to review and comment
on such prosecution efforts regarding the applicable Joint Patents in the particular jurisdictions, and such other Party shall provide the Prosecuting Party reasonable assistance in such efforts.  The Prosecuting Party shall provide the other Party
with a copy of all material communications from any patent authority in the applicable jurisdictions regarding the Joint Patent being prosecuted by such Party, and shall provide drafts of any material filings or responses to be made to such patent
authorities a reasonable amount of time in advance of submitting such filings or responses. In particular, each Party agrees to provide the other Party with all information necessary or desirable to enable the other Party to comply with the duty of
candor/duty of disclosure requirements of any patent authority. Either Party may determine that it is no longer interested in supporting the continued prosecution or maintenance of a particular Joint Patent in a country or jurisdiction, in which
case:  (i) the disclaiming Party shall, if requested in writing by the other Party, assign its ownership interest in such Joint Patent in such country or jurisdiction to the other Party for no additional consideration, and (ii) if such assignment is
effected, any such Joint Patent would thereafter be deemed a PGx Patent in the case of assignment to PGx, or a CRXX Patent in the case of assignment to CRXX.

     (d) Cooperation in Prosecution. Each Party shall provide the other Party all reasonable assistance and cooperation in the Patent prosecution efforts provided above in
this Section 9.3, including providing any necessary powers of attorney and executing any other required documents or instruments for such prosecution.

     (e) Patent Expenses.  If PGx exercises the Co-Development Option, then prior to the First Commercial Sale of a Product in the Territory, any Patent Expenses incurred
by a Party (whether incurred before or after such Co-Development Option Exercise) for the purpose of preparing, filing, prosecuting, or maintaining a Collaboration Patent in the Territory shall be deemed Shared Development Costs and borne equally by
the Parties. If PGx exercises the Co-Development Option, then following the First Commercial Sale of a Product in the Territory, Patent Expenses incurred by a Party for the purpose of preparing, filing, prosecuting, or maintaining a Collaboration
Patent in the Territory shall be deducted as an Allowable Expense from Net Sales when calculating Product Profit. In all other instances, CRXX shall be solely responsible for all Patent Expenses incurred by a Party for the purpose of preparing,
filing, prosecuting or maintaining a Collaboration Patent in the Territory other than PGx Patents relating to the manufacture or use of the Compound for use in the in indications outside the Field, and

	
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CRXX shall reimburse PGx all Patent Expenses incurred by PGx pursuant to Section 9.3 within thirty (30) days after CRXX’s receipt of an invoice for such expenses from PGx.

	
9.4      		
Enforcement of Collaboration Patents.	
	 
	 	
(a) Notification. If there is any infringement, threatened infringement, or	
	 

alleged infringement of the Collaboration Patents on account of a Third Party’s manufacture, use or sale of a Product in the Field (in each case, a “Product Infringement”), then each Party shall promptly notify the other Party in writing of any such Product Infringement of which it becomes aware, and shall provide evidence in such Party’s possession demonstrating such Product
Infringement.

     (b) Enforcement Rights – No Co-Development. This Section 9.4(b) shall apply unless and until PGx exercises its Co-Development Option.

     (i) Subject to Section 9.4(e) and the remainder of this Section 9.4(b), CRXX shall have the first right, but not the obligation, to bring an appropriate suit or other
action against any person or entity engaged in such Product Infringement of the Collaboration Patents in the Territory. If, CRXX has not brought suit to enforce such Collaboration Patent against such person or entity within one hundred twenty (120)
days after CRXX’s receipt or delivery (as applicable) of notice and Information under Section 9.4(a), then PGx shall have the right to commence a suit or take action to enforce the applicable Collaboration Patents with respect to such Product
Infringement in the Territory. Each Party shall provide to the Party enforcing any such rights under this Section 9.4(b) reasonable assistance in such enforcement, at such enforcing Party’s request and expense, including joining such action as
a party plaintiff if required by applicable law to pursue such action. The enforcing Party shall keep the other Party regularly informed of the status and progress of such enforcement efforts, and shall reasonably consider the other Party’s
comments on any such efforts.

     (ii) The Party bringing a claim, suit or action under Section 9.4(b)(i) against any person or entity engaged in Product Infringement of the Collaboration Patents in
the Territory shall be solely responsible for any expenses incurred by such Party as a result of such claim, suit or action. If such Party recovers monetary damages from such Third Party in such suit or action, such recovery shall be allocated first
to the reimbursement of any expenses incurred by the Parties in such litigation, and any remaining amount shall be distributed as follows: (1) if CRXX is the enforcing Party and the suit relates to a CRXX Patent(s), then any remaining amount shall
be retained by CRXX, (2) if CRXX is the enforcing Party and the suit relates to a PGx Patent(s) and/or Joint Patent(s), then any remaining amount shall be allocated sixty percent (60%) to CRXX and forty percent (40%) to PGx to the extent the damages
relate to PGx Patent(s) and sixty percent (60%) to CRXX and forty percent (40%) to PGx to the extent the damages relate to Joint Patent(s), (3) if PGx is the enforcing Party and the suit relates to a PGx Patent, then any remaining amount shall be
retained by PGx and (4) if PGx is the enforcing Party and the suit relates to a CRXX Patent and/or Joint Patent, then any remaining amount shall be allocated sixty percent (60%) to PGx and forty percent (40%) to CRXX. CRXX acknowledges and agrees
that UVAPF is entitled to receive a portion of any damages paid by an alleged infringer as a result of an infringement suit brought under a PGx Patent licensed by PGx under

	
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the UVA Agreement (after reimbursement of expenses), and that the allocation between PGx and CRXX described in this Section 9.4(b)(ii) shall be applied to the remainder of such damages after payment to UVAPF has been
satisfied.

     (c) Enforcement Rights – Co-Development. This Section 9.4(c) shall apply if PGx exercises the Co-Development Option.

     (i) Promptly after either Party provides the other Party with a notice and Information in accordance with Section 9.4(a) with respect to Product Infringement of one or
more Collaboration Patents, the Parties shall discuss whether they both wish to enforce such Collaboration Patents. If both Parties wish to enforce such Collaboration Patents, then PGx and CRXX shall jointly agree upon the logistics for such
enforcement, and Section 9.4(c)(ii) shall apply. If only one Party wishes to enforce such Collaboration Patents, then, subject to Sections 9.4(c)(iii), 9.4(d), and 9.4(e), such Party shall have the right, but not the obligation, to bring an
appropriate suit or other action against any person or entity engaged in such Product Infringement of the Collaboration Patents.  Each Party shall provide to the Party enforcing any such rights under this Section 9.4(c)(i) reasonable assistance in
such enforcement, at such enforcing Party’s request and expense, including joining such action as a party plaintiff if required by applicable law to pursue such action. The enforcing Party shall keep the other Party regularly informed of the
status and progress of such enforcement efforts, and shall reasonably consider the other Party’s comments on any such efforts.

     (ii) If the Parties agreed pursuant to Section 9.4(c)(i) that they both wished to enforce one or more Collaboration Patents against the alleged Product Infringement,
then all expenses (including, for this purpose, a reasonable allocation of expenses of internal counsel) incurred by either Party as a result of bringing the resulting claim, suit or action under Section 9.4(c)(i) against the person or entity
engaged in such Product Infringement shall be deemed Allowable Expenses. If either Party recovers monetary damages from such Third Party in such suit or action, such recovery shall be included in Net Sales. CRXX acknowledges and agrees that UVAPF is
entitled to receive a portion of any damages paid by an alleged infringer as a result of an infringement suit brought under a PGx Patent licensed by PGx under the UVA Agreement (after reimbursement of expenses), and that the inclusion in Net Sales
described in the preceding sentence shall only apply to the remainder of such damages.

     (iii) If only one Party wished to enforce one or more Collaboration Patents in the Territory, then the Party bringing the resulting claim, suit or action under Section
9.4(b)(i) against the person or entity engaged in such Product Infringement of the Collaboration Patents in the Territory shall be solely responsible for any expenses incurred by such Party as a result of such claim, suit or action. If such Party
recovers monetary damages from such Third Party in such suit or action, such recovery shall be allocated first to the reimbursement of any expenses incurred by the Parties in such litigation (including, for this purpose, a reasonable allocation of
expenses of internal counsel), and any remaining amount shall be allocated between the Parties as follows: (1) if CRXX is the enforcing Party and the suit relates to a CRXX Patent(s), then any remaining amount shall be retained by CRXX, (2) if CRXX
is the enforcing Party and the suit relates to a PGx Patent(s) and/or Joint Patent(s), then any remaining amount shall be allocated seventy percent (70%) to CRXX and thirty percent (30%) to PGx to the extent

	
779758 v7/HN

	
36

the damages relate to the PGx Patent(s) and seventy percent (70%) to CRXX and thirty percent (30%) to PGx to the extent the damages relate to the Joint Patent(s), (3) if PGx is the enforcing Party and the suit relates to a PGx
Patent, then any remaining amount shall be retained by PGx and (4) if PGx is the enforcing Party and the suit relates to a CRXX Patent and/or Joint Patent, then any remaining amount shall be allocated seventy percent (70%) to PGx and thirty percent
(30%) to CRXX. CRXX acknowledges and agrees that UVAPF is entitled to receive a portion of any damages paid by an alleged infringer as a result of an infringement suit brought under a PGx Patent licensed by PGx under the UVA Agreement (after
reimbursement of expenses), and that the allocation between PGx and CRXX described in this Section 9.4(c)(iii) shall be applied to the remainder of such damages. 

     (d) Settlement. Without the prior written consent of the other Party, neither Party shall settle any claim, suit or action that it brought under this Section 9.4
involving Collaboration Patents in any manner that would negatively impact such intellectual property or that would limit or restrict the ability of either Party or their Affiliates or licensees to sell Products anywhere in the Territory.

     (e) PGx Patents Licensed from Third Parties.  CRXX’s rights under this Section 9.4 with respect to any PGx Patent licensed to PGx by a Third Party and PGx’s
rights under this Section 9.4 with respect to any CRXX Patent licensed to CRXX by a Third Party, each shall be subject and subordinated to the rights of such Third Party to enforce such PGx Patent or CRXX Patent, as applicable, and/or defend against
any claims that such PGx Patent or CRXX Patent, as applicable, is invalid or unenforceable, and the rights of such Third Party to share in any recoveries.  Without limiting the generality of the foregoing, CRXX acknowledges and agrees that (i) UVAPF
has exclusive responsibility for the preparation, prosecution, issuance, and maintenance of any PGx Patents licensed by PGx under the UVA Agreement (after reimbursement of expenses), and (ii) UVAPF is entitled to a share of recoveries in connection
with the enforcement of the PGx Patents, as described in more detail in Sections 9.4(b)(ii), 9.4(c)(ii), and 9.4(c)(iii).

     (f) CRXX Patents Licensed from Third Parties.  PGx’s rights under this Section 9.4 with respect to any CRXX Patent licensed to CRXX by a Third Party shall be
subject and subordinated to the rights of such Third Party to enforce such CRXX Patent and/or defend against any claims that such CRXX Patent is invalid or unenforceable, and the rights of such Third Party to share in any recoveries.

     9.5 Patent Marking. CRXX shall, and shall require its Affiliates and sublicensees, to mark Products sold by it hereunder with appropriate patent numbers or indicia to
the extent permitted by applicable law and regulations, in those countries in which such markings or such notices impact recoveries of damages or equitable remedies available with respect to infringements of patents. 

     9.6 Employee Obligations.  Prior to beginning work under this Agreement relating to any research, Development or Commercialization of a Compound or a Product, each
employee, agent or independent contractor of CRXX or PGx or of either Party’s respective Affiliates shall sign, to the extent it has not already signed, a non-disclosure and invention assignment agreement

	
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pursuant to which such person agrees to comply with all of the obligations of CRXX or PGx, as appropriate, in this Article 9, including without limitation: (a) promptly reporting any invention, discovery, process or other
intellectual property right; (b) assigning to CRXX or PGx, as appropriate, all of his or her right, title and interest in and to any invention, discovery, process or other intellectual property right; (c) cooperating in the preparation, filing,
prosecution, maintenance and enforcement of any patent and patent application; (d) performing all acts and signing, executing, acknowledging and delivering any and all documents required for effecting the obligations and purposes of this Agreement;
and (e) abiding by the obligations of confidentiality and non-use set forth in Article 12. It is understood and agreed that such non-disclosure and invention assignment agreement need not reference or be specific to this Agreement.

     9.7 Trademarks.  CRXX shall be responsible for the selection, registration, maintenance and defense of all trademarks for use in connection with the sale or marketing
of Products in the Field in the Territory (the “Marks”), as well as all expenses associated therewith. Unless the Co-Development Option has expired and has not been exercised by
PGx, all uses of the Marks shall be reviewed by the JSC and shall comply with all applicable laws and regulations (including, without limitation, those laws and regulations particularly applying to the proper use and designation of trademarks in the
applicable countries). CRXX shall not, without PGx’s prior written consent, use any trademarks or house marks of PGx (including the PGx corporate name), or marks confusingly similar thereto, in connection with CRXX’s Commercialization of
Products under this Agreement. CRXX shall own all Marks. 

	
ARTICLE 10

	
REPRESENTATIONS AND WARRANTIES

     10.1 Mutual Representations and Warranties.  Each Party hereby represents, warrants, and covenants (as applicable) to the other Party as follows, as of the Effective
Date:

     (a) Corporate Existence and Power.  It is a company or corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction in which
it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this Agreement, including, without
limitation, the right to grant the licenses granted by it hereunder.

     (b) Authority and Binding Agreement.  It has the corporate or organizational power and authority and the legal right to enter into this Agreement and perform its
obligations hereunder; it has taken all necessary corporate or organizational action on its part required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; and this Agreement has been duly
executed and delivered on its behalf, and constitutes a legal, valid, and binding obligation of such Party that is enforceable against it in accordance with its terms and this Agreement will not violate (a) such Party’s certificate of
incorporation or bylaws, (b) any agreement, instrument or contractual obligation to which such Party is bound in any material respect, (c) any requirement of any applicable laws or regulation,

	
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or (d) any order, writ, judgment, injunction, decree, determination or award of any court or governmental agency presently in effect applicable to such Party. 

     (c) No Conflict. It is not a party to and will not enter into any agreement that would materially prevent it from granting the rights granted to the other Party under
this Agreement or performing its obligations under this Agreement.

     (d) No Debarment. To the best of such Party’s knowledge, in the course of the Development of Products, such Party has not used prior to the Effective Date and
shall not use, during the Term, any employee, agent or independent contractor who has been debarred by any Regulatory Authority, or is the subject of debarment proceedings by a Regulatory Authority.

     (e) Notice of Infringement or Misappropriation.  Except as already disclosed in writing to the other Party, (i) such Party has not received any written notice from any
Third Party asserting or alleging that any research or Development of Compounds or Products by such Party prior to the Effective Date infringed or misappropriated the intellectual property rights of such Third Party (ii) no Third Party has
initiated, or threatened in writing to initiate, any litigation against such Party, including, without limitation, by initiating any declaratory judgment lawsuit, or by sending a cease-and-desist letter, alleging that the Patent Rights of such Party
are invalid or unenforceable and (iii) to such Party’s actual knowledge, such Party’s Patent Rights are not invalid or unenforceable.

     10.2 Disclaimer. Each Party understands that the Compound and Products are the subject of ongoing clinical research and Development and that the other Party cannot
assure the safety or usefulness of the Compounds or Products. In addition, PGx makes no warranties except as set forth in this Article 10 concerning the PGx Technology and CRXX makes no warranties except as set forth in this Article 10 concerning
the CRXX Technology.

     10.3 No Other Representations or Warranties.  EXCEPT AS EXPRESSLY STATED IN SECTION 6.5 AND THIS ARTICLE 10,
NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY
RIGHTS, IS MADE OR GIVEN BY OR ON BEHALF OF A PARTY.  ALL REPRESENTATIONS AND WARRANTIES, WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE, ARE HEREBY EXPRESSLY EXCLUDED.

	
ARTICLE 11

INDEMNIFICATION

11.1 Indemnification by PGx.  PGx shall defend, indemnify, and hold CRXX, its

Affiliates, and their respective officers, directors, employees, and agents (the “CRXX

	
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Indemnitees”) harmless from and against any and all damages or other amounts payable to a Third Party claimant, as well as any reasonable attorneys’ fees and costs of litigation incurred
by such CRXX Indemnitees, all to the extent resulting from claims, suits, proceedings or causes of action brought by such Third Party (“CRXX Claims”) against such CRXX Indemnitee
based on or arising out of: (a) a breach of any of PGx’s representations, warranties, and obligations under the Agreement; or (b) the negligence or willful misconduct of PGx, its Affiliates, or their respective officers, directors, employees,
or agents. The foregoing indemnity obligation shall not apply if the CRXX Indemnitees materially fail to comply with the indemnification procedures set forth in Section 11.3, or to the extent that such CRXX Claim is based on or arises out of: (i) a
breach of any of CRXX’s representations, warranties, and obligations under the Agreement; or (ii) the negligence or willful misconduct of CRXX, its Affiliates, or their respective officers, directors, employees, or agents.

     11.2 Indemnification by CRXX. CRXX shall defend, indemnify, and hold PGx, its Affiliates, and their respective officers, directors, employees, and agents (the
“PGx Indemnitees”) harmless from and against any and all damages or other amounts payable to a Third Party claimant, as well as any reasonable attorneys’ fees and costs of
litigation incurred by such PGx Indemnitees, all to the extent resulting from claims, suits, proceedings or causes of action brought by such Third Party (“PGx Claims”) against such
PGx Indemnitee based on or arising out of:  (a) the Development, manufacture, storage, handling, use, promotion, Commercialization, sale, offer for sale, and importation of Products by CRXX or its Affiliates, sublicensees, or distributor (but
excluding any such activities that occur after PGx’s exercise of the Co-Development Option); (b) a breach of any of CRXX’s representations, warranties, and obligations under the Agreement; or (c) the negligence or willful misconduct of
CRXX, its Affiliates, or their respective officers, directors, employees, or agents. The foregoing indemnity obligation shall not apply if the PGx Indemnitees materially fail to comply with the indemnification procedures set forth in Section 11.3,
or to the extent that any PGx Claim is based on or alleges: (i) a breach of any of PGx’s representations, warranties, and obligations under the Agreement; or (ii) the negligence or willful misconduct of PGx, its Affiliates, or their respective
officers, directors, employees, or agents.

11.3 Indemnification Procedures.  The Party claiming indemnity under this Article

11 (the “Indemnified Party”) shall give written notice to the Party from whom indemnity is being sought (the “Indemnifying
Party”) promptly after learning of the claim, suit, proceeding or cause of action for which indemnity is being sought (“Claim”). The Indemnified
Party shall provide the Indemnifying Party with reasonable assistance, at the Indemnifying Party’s expense, in connection with the defense of the Claim for which indemnity is being sought.  The Indemnified Party may participate in and monitor
such defense with counsel of its own choosing at its sole expense; provided, however, the Indemnifying Party shall have the right to assume and conduct the defense of the Claim with counsel of its choice. The Indemnifying Party shall not settle any
Claim without the prior written consent of the Indemnified Party, not to be unreasonably withheld, unless the settlement involves only the payment of money. So long as the Indemnifying Party is actively defending the Claim, the Indemnified Party
shall not settle any such Claim without the prior written consent of the Indemnifying Party.  If the Indemnifying Party does not assume and conduct the defense of the Claim as provided above, (a) the

	
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Indemnified Party may defend against, and consent to the entry of any judgment or enter into any settlement with respect to the Claim in any manner the Indemnified Party may deem reasonably appropriate (and the Indemnified Party
need not consult with, or obtain any consent from, the Indemnifying Party in connection therewith), and (b) the Indemnifying Party will remain responsible to indemnify the Indemnified Party as provided in this Article 11.

     11.4 Third Party Claims Related to Products. Damages or other amounts payable to a Third Party claimant, as well as any reasonable attorneys’ fees and costs of
litigation incurred by either Party (collectively, “Damages”) from Third Party claims relating to the manufacture, use, handling, storage, sale or other disposition of any Product
(including without limitation Damages from claims of infringement of Third Party patent rights) following PGx’s exercise of the Co-Development Option, shall be included within the Shared Development Costs or Allowable Expenses of the affected
Party, as applicable, except that Damages will not be so included (and will be handled as set forth in Section 11.1 or 11.2, as applicable), to the extent they result from: (a) the other Party’s breach of any of its representations, warranties
or obligations under this Agreement; or (b) the negligence or willful misconduct of the other Party, its Affiliates, or their respective employees, agents or independent contractors. If either Party receives notice of a Third Party claim that may be
subject to this Section 11.4, such Party shall inform the other Party in writing as soon as reasonably practicable, and the Parties shall discuss a strategy on how to defend against such Third Party claim.

     11.5 Limitation of Liability.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR
RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 11.5 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF
ANY PARTY UNDER SECTION 11.1, 11.2 OR 11.4, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF ARTICLE 12. 

     11.6 Insurance. Each Party shall procure and maintain insurance, including product liability insurance, adequate to cover its obligations hereunder and which are
consistent with normal business practices of prudent companies similarly situated at all times during which any Product is being clinically tested in human subjects or commercially distributed or sold. It is understood that such insurance shall not
be construed to create a limit of either Party’s liability with respect to its indemnification obligations under this Article 11. Each Party shall provide the other with written evidence of such insurance upon request. For clarity, CRXX’s
obligations under this Section 11.6 are in addition to CRXX’s obligations under Article 12 of the UVA Agreement (i.e., pursuant to Section 2.7(e)(ii) of this Agreement).

	
ARTICLE 12

CONFIDENTIALITY

     12.1 Confidentiality. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, each Party agrees that, for the Term
and for seven (7)

	
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years thereafter, it shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement any Confidential Information of the other Party except for
that portion of such information or materials that the receiving Party can demonstrate by competent documentary proof: 

     (a) was already known to the receiving Party or its Affiliate, other than under an obligation of confidentiality, at the time of disclosure by the other
Party;

     (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party;

     (c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving
Party in breach of this Agreement;

     (d) is subsequently disclosed to the receiving Party or its Affiliate by a Third Party without obligations of confidentiality with respect thereto; or

     (e) is subsequently independently discovered or developed by the receiving Party or its Affiliate without the aid, application, or use of Confidential
Information.

     For clarity, any Information generated during or resulting from the Collaboration that is generated by a Party may be used by such Party for any purpose that does not violate Section 2.10 or
applicable laws or regulations, but disclosure of such Confidential Information shall be governed by this Article 12.

     12.2 Authorized Disclosure.  Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the
following situations:

     (a) regulatory filings and other filings with Governmental Authorities, including filings with the SEC, with respect to a Product;

	
(b)      		
prosecuting or defending litigation relating to this Agreement;	
	 
	
(c)      		
complying with applicable laws and regulations, including regulations	
	 

	
promulgated by securities exchanges;

     (d) disclosure to its Affiliates, employees, agents, and independent contractors, and any sublicensees of Collaboration Technology only on a need-to-know basis and
solely as necessary in connection with the performance of this Agreement, provided that each disclosee must be bound by similar obligations of confidentiality and non-use at least as equivalent in scope as those set forth in this Article 12 prior to
any such disclosure; and

     (e) solely with respect to the material terms of this Agreement, disclosure to any bona fide potential or actual investor, investment banker, acquirer, merger partner,
or other potential or actual financial partner; provided that in connection with such disclosure, the

	
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disclosing Party shall use all reasonable efforts to inform each disclosee of the confidential nature of such Confidential Information and cause each disclosee to treat such Confidential Information as confidential.

Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to this Section 12.2, it will, except where impracticable, give reasonable advance
notice to the other Party of such disclosure and use reasonable efforts to limit the scope of such disclosure, as well as any subsequent use or disclosure of the information so disclosed, by seeking confidential treatment, a protective order, or the
like. In any event, the Parties agree to take all reasonable action to avoid disclosure of Confidential Information hereunder.  All documents and other materials which embody the Confidential Information of a Party will be returned to such Party
promptly following termination of this Agreement, and no copies, extracts or other reproductions shall be retained by the other Party, except that one copy may be retained by the other Party’s legal counsel to ascertain compliance with this
Agreement; provided that a Party shall not be required to return Information generated under the Collaboration.

	
12.3      		
Publicity; Terms of Agreement.	
	 
	 	
(a) The Parties agree that the material terms of this Agreement are the	
	 

Confidential Information of both Parties, subject to the special authorized disclosure provisions set forth in Section 12.2 and this Section 12.3.

     (b) If either Party desires to make a public announcement concerning the material terms of this Agreement, such Party shall give reasonable prior advance notice of the
proposed text of such announcement to the other Party for its prior review and approval (except as otherwise provided herein), such approval not to be unreasonably withheld.  A Party commenting on such a proposed press release shall provide its
comments, if any, within two (2) business days after receiving the press release for review. PGx shall have the right to make a press release announcing the achievement of each milestone under this Agreement as it is achieved and the achievements of
Regulatory Approvals as they occur, subject only to the review procedure set forth in the preceding sentence.  In relation to CRXX’s review of such an announcement, CRXX may make specific, reasonable comments on such proposed press release
within the prescribed time for commentary, but shall not withhold its consent to disclosure of the information that the relevant milestone has been achieved and triggered a payment hereunder. Neither Party shall be required to seek the permission of
the other Party to repeat any information regarding the terms of this Agreement that have already been publicly disclosed by such Party, or by the other Party, in accordance with this Section 12.3.

     (c) The Parties acknowledge that PGx or CRXX may be obligated to file a copy of this Agreement with the SEC.  Each Party shall be entitled to make such a required
filing, provided that it requests confidential treatment of at least the commercial terms and sensitive technical terms hereof to the extent such confidential treatment is reasonably available to such Party. In the event of any such filing, the
filing Party will provide the other Party with a copy of the Agreement a reasonable time in advance of filing marked to show provisions for which the filing Party intends to seek confidential treatment and shall reasonably consider and

	
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incorporate the other Party’s comments thereon (which shall be provided to the filing Party a reasonable time in advance of filing) to the extent consistent with the legal requirements governing redaction of information from
material agreements that must be publicly filed.

     12.4 Publications.  Neither Party shall publicly present or publish results of studies carried out under this Agreement (each such presentation or publication, a
“Publication”) without the opportunity for prior review by the other Party. The submitting Party shall provide the other Party the opportunity to review any proposed Publication at
least thirty (30) days prior to the earlier of its presentation or intended submission for publication. The submitting Party agrees, upon request by the other Party, not to submit or present any Publication until the other Party has had an
additional thirty (30) days to comment on any material in such Publication and to make patent filings. The submitting Party shall consider the comments of the other Party in good faith, but will retain the sole authority to submit the manuscript
(other form of publication) for Publication. The submitting Party shall provide the other Party a copy of the Publication at the time of the submission or presentation. Notwithstanding the foregoing, CRXX shall not have the right to publish or
present PGx’s Confidential Information without PGx’s prior written consent, and PGx shall not have the right to publish or present CRXX’s Confidential Information without CRXX’s prior written consent; provided, however, that for
purpose of this sentence Information generated by the Collaboration that is considered Confidential Information of both Parties shall not be subject to the restriction of this sentence. In addition, CRXX may publish and present research
(pre-clinical and clinical) conducted by or on behalf of it or its partners or licensees on A2a Agonists that is not conducted as part of the Collaboration.  If the Co-Development Option expires without exercise by PGx, PGx shall have no right to
publish or present any Publication with respect to results of studies completed after the expiration of the Co-Development Option.  The Parties further acknowledge that PGx (and its predecessor in interest, ATL) has made significant contributions to
the discovery of the Compound as of the Effective Date and the Parties agree that any public disclosure made after the Effective Date regarding Compounds and/or Products shall give appropriate recognition to the PGx scientists who are responsible
for the discovery of such Compounds and/or Products.

	
ARTICLE 13

	
TERM AND TERMINATION

     13.1 Term. This Agreement shall become effective on the Effective Date and, unless earlier terminated pursuant to this Article 13, shall remain in effect until the
cessation of all commercial sales of Products in the Territory (the “Term”).

     13.2 Termination by CRXX at Will.  CRXX shall have the right to terminate this Agreement in its entirety upon one hundred twenty (120) days prior written notice to
PGx. Upon termination pursuant to this Section 13.2, and in addition to the consequences described in Section 13.5 and the remedies provided in Section 13.6, CRXX shall remain responsible for its share of all committed Shared Development Costs
contemplated by the Development Plan in effect as of the date of such notice of termination and shall receive its Product Profit for all periods prior to the termination date; and CRXX shall not, during the applicable notice period, take any action
that would adversely affect or impair the further Development or

	
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Commercialization of the Products; provided, however, that CRXX may discontinue all or part of its Development or Commercialization activities if CRXX provides PGx written notice of such intended discontinuance of activities and
PGx does not object in writing within thirty (30) days of such written notice, such objection to be reasonably based if the Co-Development Option has expired without exercise by PGx.

	
13.3      		
Termination by Either Party for Breach.	
	 
	 	
(a) Breach. Subject to Section 13.3(b) and (c), PGx shall have the right to	
	 

terminate this Agreement upon written notice to CRXX if CRXX, after receiving written notice from PGx identifying a material breach by CRXX of its obligations under this Agreement, fails to cure such material breach within sixty
(60) days from the date of such notice (or within twenty (20) business days notice in the event such material breach relates to CRXX’s failure to pay any amounts due PGx hereunder). For the avoidance of doubt, CRXX’s failure to pay the
amount set forth in Section 8.1 shall be deemed to be a material breach of this Agreement.  Subject to Section 13.3(c), CRXX shall have the right to terminate this Agreement upon written notice to PGx if PGx, after receiving written notice from CRXX
identifying a material breach by PGx of its obligations under this Agreement, fails to cure such material breach within sixty (60) days from the date of such notice (or within twenty (20) business days notice in the event such material breach
relates to PGx’s failure to pay any amounts due CRXX hereunder).

(b) Diligence Breach.  PGx may terminate the license granted to CRXX

under Section 2.1 upon written notice to CRXX if CRXX, after receiving written notice from PGx identifying a material breach by CRXX of its obligations under Section 4.4 or 6.3, fails to cure such material breach within sixty (60)
days from the date of such notice, with respect to such country(ies) and/or jurisdiction(s) in which such failure remains uncured after such sixty (60) day cure period; provided, however, that if CRXX fails to use Diligent Efforts to Develop or
Commercialize Product(s) in the United States of America or any of the Major EU Countries, PGx may exercise its termination rights under Sections 13.3(a), 4.4 and 6.3 or any other available remedies at law or in equity. 

     (c) Disputed Breach. If the alleged breaching Party disputes in good faith the existence or materiality of a breach specified in a notice provided by the other Party
in accordance with Section 13.3(a) or (b), and such alleged breaching Party provides the other Party notice of such dispute within such sixty (60) day period, then the non-breaching Party shall not have the right to terminate this Agreement or the
license granted under Section 2.1 under Section 13.3(a) or (b), respectively, unless and until an arbitrator, in accordance with Article 14, has determined that the alleged breaching Party has materially breached the Agreement and that such Party
fails to cure such breach within sixty (60) days following such arbitrator’s decision (except to the extent such breach involves the failure to make a payment when due, which breach must be cured within twenty (20) business days following such
arbitrator’s decision) plus interest from the original due date per Section 8.10. It is understood and agreed that during the pendency of such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties
shall continue to perform all of their respective obligations hereunder.

	
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     13.4 Termination for Patent Challenge. PGx may terminate this Agreement in its entirety if CRXX or its Affiliates or sublicensees, directly or indirectly, individually
or in association with any other person or entity, challenge the validity, enforceability or scope of any PGx Patent anywhere in the Territory. CRXX may terminate this Agreement in its entirety if PGx or its Affiliates or sublicensees, directly or
indirectly, individually or in association with any other person or entity, challenge the validity, enforceability or scope of any CRXX Patent anywhere in the Territory.

     13.5 Effect of Termination of the Agreement. Upon termination of this Agreement by CRXX under Section 13.2, by PGx under Section 13.3 or by either Party under 13.4,
the following shall apply (in addition to any other rights and obligations under Section 13.2 and Section 13.6 or otherwise under this Agreement with respect to such termination):

     (a) Licenses.  The licenses granted in Sections 2.1 and 2.2 shall terminate. Notwithstanding the foregoing, CRXX hereby grants to PGx, effective only upon such
termination, (i) if PGx has exercised the Co-Development Option, an exclusive, worldwide, fully-paid, perpetual, irrevocable, royalty-free license, with the right to grant multiple tiers of sublicenses, under any method of use CRXX Patents and CRXX
Know-How to the extent necessary to Develop, make, have made, use, import, export, sell, offer for sale and otherwise Commercialize Products in the Field and, (ii) an exclusive, worldwide, fully-paid, perpetual, irrevocable, royalty-free license,
with the right to grant multiple tiers of sublicenses to any method of use CRXX Patents and CRXX Know-How that have been developed, conceived or reduced to practice as a result of activities undertaken pursuant to this Agreement to the extent
applicable to the Retained Field, in the Retained Field, provided such CRXX Know-How remains subject to Article 12.  In addition, regardless of whether PGx has exercised the Co-Development Option, CRXX shall assign to PGx any Third Party agreements
referenced in Section 2.8.

	
 
		
 		
(b) 
		
 		
Marks. CRXX shall assign to PGx all right, title and interest in and to the 
	
	
Marks. 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
(c) 
		
 		
Regulatory Materials. CRXX shall transfer and assign to PGx all 
	

Regulatory Materials and Regulatory Approvals for Products in the Territory that are Controlled by CRXX or its Affiliates or sublicensees. 

     (d) Transition Assistance. CRXX shall, at no cost to PGx, share with PGx all CRXX Know-How created or developed during the Collaboration, and, at PGx’s request,
all then-existing commercial arrangements, in each case that is, or are, reasonably necessary or useful for PGx to commence or continue researching, Developing, manufacturing, or Commercializing Products, including without limitation transferring,
upon request of PGx, any material agreements or arrangements with Third Party suppliers or vendors to supply or sell Product in the Territory. If any such contract between CRXX and a Third Party is not assignable to PGx or if CRXX manufactures the
Product itself (and thus there is no contract to assign), then CRXX shall reasonably cooperate with PGx to arrange to continue to obtain such license and/or supply from such entity, and CRXX shall supply such bulk Compound or finished Product, as
applicable, to PGx, at one hundred and ten percent (110%) of CRXX’s actual cost for procuring

	
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such Compound or finished Product for a reasonable period not to exceed one (1) year until PGx establishes an alternate, validated source of supply for the Products.

     (e) Remaining Inventories. At PGx’s request, CRXX shall transfer to PGx all of the inventory of Compounds and Products held by CRXX as of the date of termination
(including, without limitation, raw materials, intermediates, and finished, unfinished, or partially finished goods).  PGx shall notify CRXX within sixty (60) days after the date of termination whether PGx wishes to receive such
inventory.

     (f) Confidential Information. All Information generated or resulting from the Collaboration, whether generated by one or both Parties, to the extent relating to the
Compound and/or the Products in the Field (“Collaboration Information”), shall be deemed the Confidential Information of PGx commencing on the effective date of termination of this
Agreement; provided, however, that no license to any CRXX Technology is granted hereby. Additionally, as of the effective date of such termination, all Information required to be provided to PGx pursuant to Section 3.8 that was deemed the
Confidential Information of CRXX under Section 1.15 shall be deemed Confidential Information of PGx. PGx hereby grants to CRXX, effective only upon such termination, a non-exclusive, worldwide, fully-paid, perpetual, irrevocable, royalty-free
license, with the right to grant multiple tiers of sublicenses, to use the Collaboration Information generated by CRXX and in the possession or control of CRXX at the time of termination, solely for any purpose other than with respect to (i) the
Compound or a Product or (ii) the Retained Field, provided that such Collaboration Information remains subject to Article 12.

     13.6 Other Remedies.  Termination or expiration of this Agreement for any reason shall not release either Party from any liability or obligation that already has
accrued prior to such expiration or termination, nor affect the survival of any provision hereof to the extent it is expressly stated to survive such termination. Termination or expiration of this Agreement for any reason shall not constitute a
waiver or release of, or otherwise be deemed to prejudice or adversely affect, any rights, remedies or claims, whether for damages or otherwise, that a Party may have hereunder or that may arise out of or in connection with such termination or
expiration.

     13.7 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by PGx and CRXX are, and shall otherwise be deemed to be, for purposes
of Section 365(n) of the United States Bankruptcy Code, licenses of right to “intellectual property” as defined under Section 101 of the United States Bankruptcy Code. The Parties agree that each Party, as licensee of certain rights under
this Agreement, shall retain and may fully exercise all of its rights and elections under the United States Bankruptcy Code. The Parties further agree that, in the event of the commencement a bankruptcy proceeding by or against a Party (such Party,
the “Bankrupt Party”) under the United States Bankruptcy Code, the other Party shall be entitled to a complete duplicate of (or complete access to, as appropriate) any intellectual
property licensed to such other Party and all embodiments of such intellectual property, which, if not already in such other Party’s possession, shall be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon
such other Party’s written request therefor, unless the Bankrupt Party elects to continue to perform all of its obligations under this Agreement or (b) if not

	
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delivered under clause (a), following the rejection of this Agreement by the Bankrupt Party upon written request therefor by the other Party.

     13.8 Survival. The following provisions shall survive any expiration or termination of this Agreement for the period of time specified: Sections 8.11, 9.1, 9.2 (solely
with respect to Inventions made prior to such expiration or termination), 10.3, 13.5, 13.6, 13.7, and 13.8, and Articles 11, 12, 14, and 15, and any relevant definitions in Article 1 or Exhibit A.

	
ARTICLE 14

	
DISPUTE RESOLUTION

     14.1 Disputes. The Parties recognize that disputes as to certain matters may from time to time arise during the Term which relate to either Party’s rights and/or
obligations hereunder. It is the objective of the Parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this
objective, the Parties agree to follow the procedures set forth in this Article 14 if and when a dispute arises under this Agreement.

     (a) Referred From Joint Steering Committee.  With respect to disputes, controversies or differences arising from the JSC pursuant to Article 3, such matter shall be
resolved in accordance with Section 3.5.

     (b) Arising Between the Parties. In the event of any disputes, controversies or differences which may arise between the Parties and not from the JSC, out of or in
relation to or in connection with this Agreement, including, without limitation, any alleged failure to perform, or breach, of this Agreement, or any issue relating to the interpretation or application of this Agreement, then upon the request of
either Party, the Parties agree to meet and discuss in good faith a possible resolution thereof, which good faith efforts shall include at least one in-person meeting between the Chief Executive Officers of each Party. If the matter is not resolved
within thirty (30) days following the request for discussions, either Party may then invoke the provisions of Section 14.2.

     14.2 Arbitration. Any dispute, controversy or claim arising out of or relating to the validity, construction, interpretation, enforceability, breach, performance,
application or termination of this Agreement that is not resolved pursuant to Section 14.1, except for a dispute, claim or controversy under Section 14.12, shall be settled by binding arbitration administered by JAMS pursuant to its Comprehensive
Arbitration Rules and Procedures of JAMS then in effect (the “JAMS Rules”), except as otherwise provided herein. The arbitration shall be governed by the United States Federal
Arbitration Act, 9 U.S.C. §§ 1-16 (the “Federal Arbitration Act”), to the exclusion of any inconsistent state laws. The United States Federal Rules of Civil Procedure
shall govern discovery and the rules of evidence for the arbitration.  The arbitration will be conducted in Boston, Massachusetts and the Parties consent to the personal jurisdiction of the United States federal courts, for any case arising out of
or otherwise related to this arbitration, its conduct and its enforcement. Any situation not expressly covered by this Agreement shall be decided in accordance with the JAMS Rules.

	
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     14.3 Arbitrator.  The arbitrator shall be one (1) neutral, independent and impartial arbitrator selected from a pool of retired federal judges to be presented to the
Parties by JAMS. Failing the agreement of the Parties as to the selection of the arbitrator within thirty (30) days, the arbitrator shall be appointed by JAMS in accordance with the JAMS Rules.

     14.4 Governing Law.  Resolution of all disputes arising out of or related to this Agreement or the validity, construction, interpretation, enforcement, breach,
performance, application or termination of this Agreement and any remedies relating thereto, shall be governed by and construed under the substantive laws of the Commonwealth of Massachusetts, excluding any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

     14.5 Decision. The power of the arbitrator to fashion procedures and remedies within the scope of this Agreement is recognized by the Parties as essential to the
success of the arbitration process. The arbitrator shall not have the authority to fashion remedies which would not be available to a federal judge hearing the same dispute.  The arbitrator is encouraged to operate on this premise in an effort to
reach a fair and just decision. Reasons for the arbitrator’s decisions should be complete and explicit, including all determinations of law and fact.  The written reasons should also include the basis for any damages awarded and a statement of
how the damages were calculated.  Such a written decision shall be rendered by the arbitrator following a full comprehensive hearing, no later than twelve (12) months following the selection of the arbitrator as provided for in Section
14.3.

     14.6 Award. Any award shall be promptly paid in United States dollars free of any tax; and any costs, fees or taxes incident to enforcing the award shall, to the
maximum extent permitted by law, be charged against the Party resisting enforcement.  If as to any issue the arbitrator should determine under the applicable law that the position taken by a Party is frivolous or otherwise irresponsible or that any
wrongdoing they find is in callous disregard of law and equity or the rights of the other Party, the arbitrator shall also award an appropriate allocation of the adversary’s reasonable attorney fees, costs and expenses to be paid by the
offending Party, the precise sums to be determined after a bill of attorney fees, expenses and costs consistent with such award has been presented following the award on the merits. Each Party agrees to abide by the award rendered in any arbitration
conducted pursuant to this Article 14, and agrees that, subject to the Federal Arbitration Act, judgment may be entered upon the final award in the Federal District Court for the District of Massachusetts and that other courts may award full faith
and credit to such judgment in order to enforce such award. The award shall include interest from the date of the award until paid in full, at a rate fixed by the arbitrator. With respect to money damages, nothing contained herein shall be construed
to permit the arbitrator or any court or any other forum to award punitive or exemplary damages. By entering into this agreement to arbitrate, the Parties expressly waive any claim for punitive or exemplary damages.

     14.7 Costs. Except as set forth in Section 14.6, each Party shall bear its own legal fees. The arbitrator shall assess his or her costs, fees and expenses against the
Party losing the arbitration unless he or she believes that neither Party is the clear loser, in which case the arbitrator shall divide his or her fees, costs and expenses according to his or her sole discretion.

	
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     14.8 Injunctive Relief.  Provided a Party has made a sufficient showing under the rules and standards set forth in the Federal Rules of Civil Procedure and applicable
case law, the arbitrator shall have the freedom to invoke, and the Parties agree to abide by, injunctive measures after either Party submits in writing for arbitration claims requiring immediate relief. Additionally, nothing in this Article 14 will
preclude either Party from seeking equitable relief or interim or provisional relief from a court of competent jurisdiction, including a temporary restraining order, preliminary injunction or other interim equitable relief, concerning a dispute
either prior to or during any arbitration if necessary to protect the interests of such Party or to preserve the status quo pending the arbitration proceeding.

     14.9 Confidentiality.  The arbitration proceeding shall be confidential and the arbitrator shall issue appropriate protective orders to safeguard each Party’s
Confidential Information. Except as required by law, including without limitation, securities law, no Party shall make (or instruct the arbitrator to make) any public announcement with respect to the proceedings or decision of the arbitrator without
prior written consent of the other Party. The existence of any dispute submitted to arbitration, and the award, shall be kept in confidence by the Parties and the arbitrator, except as required in connection with the enforcement of such award or as
otherwise required by applicable law including without limitation, securities law.

     14.10 Survivability. Any duty to arbitrate under this Agreement shall remain in effect and be enforceable after termination of this Agreement for any reason.

     14.11 Jurisdiction. For the purposes of this Article 14, the Parties agree to accept the jurisdiction of the Federal District Court for the District of Massachusetts
for the purposes of enforcing or appealing any awards entered pursuant to this Article 14 and for enforcing the agreements reflected in this Article 14 and agree not to commence any action, suit or proceeding related thereto except in such
courts.

     14.12 Patent and Trademark Disputes. Any dispute, controversy or claim relating to the scope, validity, enforceability or infringement of any Collaboration Patents or
Marks covering the manufacture, use, importation, offer for sale or sale of Products shall be submitted to a court of competent jurisdiction in the country in which such patent or trademark rights were granted or arose.

	
ARTICLE 15

MISCELLANEOUS

     15.1 Entire Agreement; Amendment.  This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants,
promises, agreements, warranties, representations, conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes, as of the Effective Date, all prior agreements and understandings between the
Parties with respect to the subject matter hereof, including, without limitation, the Existing Confidentiality Agreement. The foregoing shall not be interpreted as a waiver of any remedies available to either Party as a result of any breach, prior
to the Effective Date, by the other Party of its obligations pursuant the Existing Confidentiality

	
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Agreement.  There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties other than as are set forth herein and therein. No subsequent
alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party.

     15.2 Force Majeure.  Both Parties shall be excused from the performance of their obligations under this Agreement to the extent that such performance is prevented by
force majeure and the nonperforming Party promptly provides notice of the prevention to the other Party.  Such excuse shall be continued so long as the condition constituting force majeure continues and the nonperforming Party takes reasonable
efforts to remove the condition.  For purposes of this Agreement, force majeure shall mean conditions beyond the control of the Parties, including without limitation, an act of God, war, civil commotion, terrorist act, labor strike or lock-out,
epidemic, failure or default of public utilities or common carriers, destruction of production facilities or materials by fire, earthquake, storm or like catastrophe, and failure of plant or machinery (provided that such failure could not have been
prevented by the exercise of skill, diligence, and prudence that would be reasonably and ordinarily expected from a skilled and experienced person engaged in the same type of undertaking under the same or similar circumstances).  Notwithstanding the
foregoing, a Party shall not be excused from making payments owed hereunder because of a force majeure affecting such Party.

     15.3 Notices. Any notice required or permitted to be given under this Agreement shall be in writing, shall specifically refer to this Agreement, and shall be addressed
to the appropriate Party at the address specified below or such other address as may be specified by such Party in writing in accordance with this Section 15.3, and shall be deemed to have been given for all purposes (a) when received, if
hand-delivered or sent by a reputable overnight delivery service, or (b) five (5) business days after mailing, if mailed by first class certified or registered mail, postage prepaid, return receipt requested.

	
If to PGx: 
		
 		
PGxHealth, LLC 
	
	
 
		
 		
One Gateway Center, Suite 702 
	
	
 
		
 		
Newton, MA 02458 
	
	
 
		
 		
Attention: Chief Legal Officer 
	
	
 
	
	
 
	
	
With a copy to: 
		
 		
Cooley Godward Kronish LLP 
	
	
 
		
 		
Five Palo Alto Square 
	
	
 
		
 		
3000 El Camino Real 
	
	
 
		
 		
Palo Alto, CA 94306 
	
	
 
		
 		
Attention: Robert L. Jones, Esq. 
	
	
 
	
	
 
	
	
If to CRXX: 
		
 		
CombinatoRx, Inc. 
	

	
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245 First St., Third Floor

Cambridge, MA 02142

Attention: Jason F. Cole, Esq.

     15.4 No Strict Construction; Headings. This Agreement has been prepared jointly and shall not be strictly construed against either Party. Ambiguities, if any, in this
Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision. The headings of each Article and Section in this Agreement have been inserted for convenience of reference only
and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section.

     15.5 Assignment. Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other, except that
a Party may make such an assignment without the other Party’s consent to such Party’s Affiliate or to a successor to (a) all or substantially all of the business of such Party, whether by way of merger, sale of stock, sale of assets or
other transaction or (b) that portion of a Party’s business to which this Agreement pertains.  Any permitted successor or assignee of rights and/or obligations hereunder shall, in a writing to the other Party, expressly assume performance of
such rights and/or obligations.  The PGx Technology and the CRXX Technology shall exclude any intellectual property held or developed by a permitted successor of the relevant Party prior to the transaction in which it became a successor of such
Party. Any permitted assignment shall be binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 15.5 shall be null, void and of no legal effect.

     15.6 Performance by Affiliates.  Each Party may discharge any obligations and exercise any right hereunder through any of its Affiliates.  Each Party hereby guarantees
the performance by its Affiliates of such Party’s obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in connection with such performance. Any breach by a Party’s Affiliate of
any of such Party’s obligations under this Agreement shall be deemed a breach by such Party, and the other Party may proceed directly against such Party without any obligation to first proceed against such Party’s Affiliate.

     15.7 Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate
in order to carry out the purposes and intent of this Agreement.

     15.8 Compliance with Applicable Law. Each Party shall comply with all applicable laws and regulations in the course of performing its obligations or exercising its
rights pursuant to this Agreement. 

     15.9 Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable by any court of competent jurisdiction from which no
appeal can be or is taken, the provision shall be considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make a good faith effort to replace

	
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any invalid or unenforceable provision with a valid and enforceable one such that the objectives contemplated by the Parties when entering this Agreement may be realized.

     15.10 No Waiver. Any delay in enforcing a Party’s rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a
waiver of such Party’s rights to the future enforcement of its rights under this Agreement, except with respect to an express written and signed waiver relating to a particular matter for a particular period of time.

     15.11 Independent Contractors.  Each Party shall act solely as an independent contractor, and nothing in this Agreement shall be construed to give either Party the
power or authority to act for, bind, or commit the other Party in any way.  Nothing herein shall be construed to create the relationship of partners, principal and agent, or joint-venture partners between the Parties.

     15.12 Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

Signature Page to Follow

	
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EXECUTION COPY

IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate originals by their duly authorized officers as of the Effective Date.

PGXHEALTH LLC COMBINATORX, INC.

By: /s/ Drew Fromkin Name: Drew Fromkin Title: CEO

By: /s/ Robert Forrester Name: Robert Forrester Title: CEO

Signature Page to Collaboration Agreement

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EXHIBITS

Exhibit A – Financial Terms for Calculation of Allowable Expenses Exhibit B – Structure of ATL313 Exhibit C – CRXX Patents Exhibit D – Licensed PGx Patent Claims Exhibit E – Materials to be Transferred

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EXHIBIT A

FINANCIAL TERMS FOR CALCULATING
ALLOWABLE EXPENSES

"Product Profit" for the Territory shall be determined in the manner specified in the Agreement and in this Exhibit A. The calculation of Allowable Expenses shall be
determined according to the defined financial terms and the allocation mechanism set forth in this Exhibit A.

As used herein, the term “operating unit” shall mean the smallest operating unit in which an operating profit and loss statement is prepared for management accounting purposes in the Party’s normal accounting
procedures, consistently applied within and across its operating units.

	
1.      		
COST OF GOODS SOLD	
	 
	 	
1.1 “Cost of Goods Sold” means the cost of Product for the Territory shipped in	
	 

either bulk or final therapeutic form, as the Parties may then agree.  The costs of manufacturing shall be calculated in accordance with reasonable cost accounting methods, consistently applied, of the Party performing the work,
and shall consist of the following components: (a) direct costs, including manufacturing labor and materials directly used in manufacturing Products by CRXX or its Affiliates and allocated supervisory costs of the manufacturing department; (b)
direct labor and allocated supervisory costs of non-manufacturing departments (such as quality and regulatory) attributable to such Products; (c) an allocation of depreciation of facilities, machinery and equipment used in manufacture of Products,
provided that any idle capacity in the facility where the Compounds or Products are manufactured shall not be allocated to be included in the calculation of Costs of Goods Sold hereunder; (d) toll process and other charges incurred by CRXX or its
Affiliates for outsourcing the manufacture of the Products and the cost of supervising and managing the Third Party manufacturers, and of receipt, incoming inspections, storage, packaging, handling quality control testing and release of the
outsourced items; and (e) any other reasonable and customary out-of-pocket costs borne by such Party or its Affiliates for the testing, transport, customs clearance, duty. 

     The cost of Product manufactured by Third Parties for the Territory shall equal the manufacturing Party's actual costs therefor.

	
2. MARKETING EXPENSES

     Marketing Expenses shall be the sum of Selling Expenses, Marketing Management, Market and Consumer Research, Advertising, Trade Promotion, Consumer Promotion, and Education Expenses, each of which is
specified below, and all other costs which are consistent with the Commercialization Plan and attributable to the sale, promotion or marketing of Products in the Territory. 

     2.1 “Selling Expenses” shall mean all costs and expenses directly associated with the efforts of field sales
representatives with respect to Products in the Territory, including field sales force (including field sales managers); field sales offices; home offices staffs directly and to the extent involved in the management of and the performance of the
selling

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functions; and payments to Third Parties under any agreements approved by the JSC. Reasonable field samples shall normally be charged to Trade Promotion, but if sales management has direct decision making authority for the
distribution of field sales samples, it may be appropriate to charge these costs to Selling Expenses. The costs of detailing sales calls shall be allocated based on field force time at an accounting charge rate reasonably and consistently applied
within and across its operating units and which is no less favorable to the Products than the internal charge rate used by CRXX for its own internal cost accounting purposes for products other than Products (excluding internal profit margins and
markups).

     2.2 “Marketing Management” shall include product management and sales promotion management compensation and
departmental expenses, including product related public relations, relationships with opinion leaders and professional societies, health care economics studies, contract pricing and administration, market information systems, governmental affairs
activities for reimbursement, formulary acceptance and other activities directly related to the Products in the Territory, management and administration of managed care and national accounts, and other activities associated with developing overall
sales and marketing strategies and planning for Products in the Territory.  In addition, payments to Third Parties in connection with trademark selection, filing, prosecution and enforcement for Products in the Territory shall be included in this
category. Such costs may be allocated on a percent of sales or other basis reasonably and consistently applied within and across its operating units and which is no less favorable to the Products than the internal allocation for CRXX's other
products.

     2.3 “Market and Consumer Research” shall include compensation and departmental expenses for market and consumer
research personnel and payments to Third Parties related to and to the extent use for conducting and monitoring professional and consumer appraisals of existing, new or proposed Products in the Territory such as market share services (e.g., IMS
data), and special research testing and focus groups. Expenditures not directly related to a product may be allocated on a percent of sales or other basis reasonably and consistently applied within and across its operating units and which is no less
favorable to the Products than the internal allocation for CRXX's other products.

     2.4 “Advertising” shall mean all costs reasonably incurred for the advertising and promotion of Products in the
Territory through any means, including, without limitation, (i) television and radio advertisements; (ii) advertisements appearing in journals, newspapers, magazines, websites or other media; (iii) seminars and conventions; (iv) packaging
design;

	
(v)      		
professional education programs; (vi) samples, visual aids and other selling materials;	
	 
	
(vii)      		
hospital formulary committee presentations; (viii) presentations to state and other	
	 

governmental formulary committees, and (ix) all media costs associated with Product advertising as follows: production expense/artwork including set up; design and art work for an advertisement; the cost of securing print space,
air time, etc. in newspapers, magazines, websites, trade journals, television, radio, billboards, etc.

     2.5 “Trade Promotion” shall include the actual allowances given to retailers, brokers, distributors, hospital buying
groups, etc. for purchasing, promoting, and distribution of Products in the Territory. This shall include purchasing, advertising, new distribution, and display allowances as well as free goods, wholesale allowances and reasonable field sales
samples (at the out of pocket cost). To the extent multiple products are involved and some of such products are not Products, then such allowances shall be allocated on a pro rata basis

	
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A-2

based upon net sales of each respective product by such operating unit during the most recent quarter.

     2.6 “Consumer Promotion” shall include the expenses associated with programs to promote Products directly to the end
user in the Territory.  This category shall include expenses associated with promoting products directly to the professional community such as professional samples, professional literature, promotional material costs, patient aids and detailing
aids. To the extent multiple products are involved and some of such products are not Products, then such allowances shall be allocated on a pro rata basis based upon net sales of each
respective product by such operating unit during the most recent quarter.

     2.7 “Education” shall include expenses associated with professional education with respect to Products in the
Territory through any means not covered above, including articles appearing in journals, newspapers, magazines or other media; seminars, scientific exhibits, and conventions; and symposia, advisory boards and opinion leader development
activities.

	
3. DISTRIBUTION EXPENSES

     “Distribution Expenses” means all costs incurred by a Party to distribute Product in the Territory.

4. POST-LAUNCH PRODUCT
R&D EXPENSES

     Post-Launch Product R&D Expenses shall include certain research and Development costs incurred by a Party in relation to a Product in the Territory after the First Commercial Sale and shall
exclude administrative expenses and costs that are included within Costs of Goods Sold or Development Costs. Such post-launch research and Development costs shall include:

	
4.1      		
Phase 4 Clinical Trials.	
	 
	
4.2      		
Ongoing product support.	
	 
	
4.3      		
Ongoing medical affairs.	
	 
	
4.4      		
Contract R&D costs performed by others for a particular project that are	
	 

primarily related to the Development or Commercialization of a Product.

     4.5 Fees and expenses of outside counsel or consultants in respect of regulatory affairs unrelated to obtaining Regulatory Approvals.

	
5. PATENT EXPENSES

     “Patent Expenses” means the fees and expenses of outside counsel and payments to Third Parties incurred after the Effective Date in connection with
the preparation, filing, prosecution and maintenance of PGx Patents, CRXX Patents, and/or Joint Patents in the Territory that cover Products or their manufacture or use, including the costs of patent interference and opposition
proceedings.

	
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A-3

	
6. REGULATORY EXPENSES

     “Regulatory Expenses” means all costs incurred by a Party to comply with all Regulatory Approvals and all Regulatory Authorities, including FDA user
and other fees, reporting, and other regulatory affairs activities for Product in the Territory. 

	
7. RECALL EXPENSES

     “Recall Expenses” means all costs incurred by a Party to conduct a recall or market withdrawal of a Product in the Territory per Section 5.2 of this
Agreement.

	
8. Allocated G&A Expenses.

     “Allocated G&A Expenses” means allocated general and administrative costs, including, without limitation, purchasing, human resources, payroll,
legal, maintenance, information system and accounting, attributable to such Products, to the extent not already included in the calculation of other costs and not to exceed ten percent (10%) of the total Allowable Expenses.

9. NO DUPLICATION.  No
item of cost shall be duplicated in any of the categories comprising Allowance Expenses or in the deductions permitted under Net Sales.

	
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A-4

EXHIBIT B

STRUCTURE OF ATL313

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EXHIBIT C

CRXX PATENTS

US App. No. 12/175,121. PCT App. No. 2009/011897 TW App. No. 97127114 US App. No. 12/175,219 PCT App. No. 2009/011893 TW App. No. 97127110

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EXHIBIT D

	
LICENSED PGX PATENT CLAIMS

US 11/196,529 (allowed, but not yet issued).

Compound: Claims 1-9, 11-25, 27-35, 43-44, 46-49, 54-57, and 59-62 Therapeutic Composition: Claims 64, 67 (liquid carrier), and 68 (oral,
etc.)

AU 2005257706: Same claims as those in US CA 2576828: Same claims as those in US CN
200580033215.2: Same claims as those in US

EP 58038456:

Compound: Claims 1-3, 5-13, 15-19, 23-27, and 29-32

Therapeutic Composition: Claim 33

HK 81050330: Same claims as those in US IN 1526DELNP2007: Same claims as those in US

JP 2007524924:

Compound: Claims 1-5, 7-13, 16-20, 24-25, 27-31, and 33-35

Therapeutic Composition: Claim 36

NZ 553288: Same claims as those in US SG 2007007446: Same claims as those in US ZA 200701021: Same claims as those in US

	
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A-7

	
EXHIBIT E

	
MATERIALS TO BE TRANSFERRED

ATL313, Quantity 10 grams of non-GLP drug substance (for purposes of clarity, this is research grade material that is not intended for human use)

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