Document:

Settlement Agreement

 Exhibit 10.96 
  
 SETTLEMENT AGREEMENT 
 AND MUTUAL RELEASE OF CLAIMS 
  
 This SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS (“Agreement”) is made and entered into on the Effective Date, by and between Synbiotics Corporation, a California corporation and Synbiotics Europe SAS (collectively
“Synbiotics”), on the one hand, Agen Biomedical Limited, and its parent corporations Agen Limited, and Agenix Limited, each Australian Corporations, on the other hand (individually and collectively “Agen” except as indicated.).
Synbiotics or Agen, or both, shall sometimes be referred to as the “Party” or the “Parties,” as the context indicates. 
  
 RECITALS 
  
 A. Whereas, Synbiotics is in the business of developing, manufacturing and marketing veterinary diagnostics and other animal heath related products
worldwide; 
  
 B. Whereas, Agen is in the business of developing,
manufacturing and marketing veterinary diagnostics and other animal health related products worldwide, including “ICT lateral flow veterinary test kit products” which, for purposes of this Agreement, shall mean all veterinary diagnostic
products in ICT (immunochromatography strip assay) format, including, without limitation, the products set forth in Exhibit A hereto and all packaging variations thereof or successors thereto; 
  
 C. Whereas, Synbiotics is the owner of United States Patent No. 4,789,631
issued on December 6, 1988 to Edward T. Maggio, entitled “Immunoassay for Anti-Dirofilaria Immitis Antibody” (the “’631 Patent”); 
  
 D. Whereas, Agen Limited is the owner of European Patent No. EP 0602046 B1 issued on November 19, 1997 entitled
“Detection of Feline Immunodeficiency Viruses” (Kemp et al.) (the “’046 Patent”); 
  
 E. Whereas, on or about September 2, 2003, Agen filed a lawsuit against Synbiotics entitled Agen Biomedical Limited v. Synbiotics Corporation,
United States District Court for the Northern District of California, Case No. CV 03-3989 CRB, in which it sought declaratory judgment that Agen did not infringe the ‘631 patent and that Claim 5 of that patent was not valid. On or about
September 23, 2003, Synbiotics filed an answer and counterclaim. On or about November 7, 2003, the Court granted Synbiotics’ motion to transfer this lawsuit to the United States District Court for the Southern District of California, where that
case is currently pending as Case No. 03- cv-02282 B (AJB). The claims and counterclaims referred to in this paragraph shall be referred to herein as the “Agen Patent Action.”; 
  
 [*] – Certain portions of this Exhibit were omitted by means of redacting a portion of
the text (the “Mark”). This Exhibit has been filed separately with the Secretary of the Securities and Exchange Commission without the Mark pursuant to an Application Requesting Confidential Treatment under Rule 12b-24 under the Securities
Exchange Act of 1934. 
  

 1 

 F. Whereas, on or about September 3, 2003, Synbiotics filed a lawsuit against Agen entitled Synbiotics
Corporation v. Agen Biomedical Limited, United States District Court for the Southern District of California, Case No. 03-cv-1770 B (AJB), in which it sought declaratory judgment that Agen infringed the ‘631 Patent. On or about November 24,
2003, Agen filed an answer and counterclaims. The claims and counterclaims referred to in this paragraph shall be referred to herein as the “Synbiotics Patent Action.”; 
  
 G. Whereas, on or about March 8, 2004, Agen filed a lawsuit against Synbiotics entitled Agen Biomedical Limited v.
Synbiotics Corporation, Superior Court for the State of California, San Diego, Case No. GIC 825397, in which it sought specific performance and declaratory relief concerning that certain License, Distribution and OEM Agreement between the
parties dated October 28, 2001 (the “2001 Agreement”). The lawsuit referred to in the paragraph shall be referred to herein as the “Agen Contract Action”; 
  
 H. Whereas, the Parties intend to resolve their dispute in accordance with
the terms of this Agreement and to fully and finally compromise, settle and discharge all claims, controversies, demands, actions or causes of action which each may have or claim to have against the other; 
  
 I. WHEREAS, the Parties deny all of the material allegations of the claims,
counterclaims and affirmative defenses in each of the above-referenced lawsuits, and deny wrongdoing and liability of any kind. 
  
 TERMS OF AGREEMENT 
  
 NOW, THEREFORE, for good and valuable consideration, including the mutual covenants herein contained, the Parties agree as follows: 
  
 1. No Admission of Liability 
  
 The Parties have entered into this Agreement for their own convenience and
to resolve a dispute, and, except as explicitly provided herein, this Agreement will for no purpose be deemed an admission by any Party regarding any matter, including issues associated with the Agen Patent Action, Synbiotics Patent Action or Agen
Contract Action.  
  
 2. Payment by
Agen.  
  
 2.1. As partial consideration for the license
in Paragraph 3 below and full consideration for the license in Paragraph 5, Agen shall pay to Synbiotics $850,000 in two installments as set forth in this Section 2. 
  
 2.1.1 The first installment of $425,000 will be paid on the Effective Date of this Agreement from funds escrowed with a
third party. 
  
 2.1.2 The second installment of $425,000 will be
due twelve (12) months from the Effective Date of this Agreement. On the Effective Date of this Agreement, Agen Biomedical Limited, with a guarantee from Agenix Limited, shall issue the promissory note attached hereto as Exhibit 1, made
payable to Synbiotics for the second installment of $425,000. Such note shall only evidence the payment obligation under this Section 2.1.2) and shall not constitute an additional payment obligation (that is, payment of the $425,000 note shall fully
satisfy the obligation to pay $425,000 under this Section 2.1.2, and vice versa). 
  

 2 

 3. License to Agen.  
  
 3.1 CHW Kits containing CHW Antibody or CHW Antibody Derivatives 
  
 Synbiotics hereby grants to Agen a non-transferable (except pursuant to Section 32), fully
paid-up, non-exclusive, perpetual and irrevocable license under the ‘631 Patent (and any and all reissues, reexaminations, extensions, divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and additions
thereof or thereto) to make, have made, use, sell, offer to sell, and import canine heartworm test kit products (“CHW Kits”) that contain the anti-CHW monoclonal antibody from clone key DI 16 872.5 (the “CHW
Antibody”) or any derivatives thereof created or developed by or for Agen (the “CHW Antibody Derivatives”). 
  
 3.2 CHW Antibody or CHW Antibody Derivatives with CHW Kits 
  
 Synbiotics further hereby grants to Agen a non-transferable (except pursuant to Section 32), fully paid-up, non-exclusive, perpetual and
irrevocable license under the ‘631 Patent (and any and all reissues, reexaminations, extensions, divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and additions thereof or thereto) to use, sell, offer
to sell, and import: (a) CHW Antibody contained in CHW Kits; and (b) CHW Antibody Derivatives contained in CHW Kits, provided that: (i) such CHW Kits are made by or for Agen; (ii) if made for Agen, title to the finished CHW Kits is transferred to or
otherwise vests in Agen (which shall not preclude direct shipment, on Agen’s behalf, by the party making products for Agen to recipients designated by Agen); and (iii) sale of the finished CHW Kits is subject to Section 10 hereof, applied
pursuant to its terms. 
  
 3.3 Right To Sublicense

  
 Agen shall have no right to sublicense the right to make or have made: (a)
CHW Kits containing CHW Antibody or (b) CHW Kits containing CHW Antibody Derivatives, granted to Agen by Synbiotics hereunder. Agen may, however, use distributors, resellers, and OEMs, and sublicense to distributors, resellers, and OEMs (with
further rights to sublicense through multiple levels of distributors and resellers), Agen’s rights to use, sell, offer to sell, and import: (y) CHW Kits containing CHW Antibody; and (z) CHW Kits containing CHW Antibody Derivatives (in each case
along with Agen’s corresponding rights under Section 3.2), in each case regardless of whether such CHW Kits are labeled with any Agen brand or label or any other or no brand or label, provided that such CHW Kits are made by or for Agen and meet
the conditions set forth in clauses (ii) and (iii) of Section 3.2. 
  
 3.4 Immunity From Suit 
  
 Synbiotics hereby grants
an immunity from suit for infringement under the ‘631 Patent to Agen’s customers and its distributors’, resellers’, and OEMs’ customers with respect to such customers’ use of: (a) CHW Kits that contain CHW Antibody, and
(b) CHW Kits that contain CHW Antibody Derivatives, provided, in each case, that such CHW Kits are made by or for Agen and meet the conditions set forth in clauses (ii) and (iii) of Section 3.2. For the avoidance of doubt, for purposes of this
Agreement the term “CHW Antibody” includes the antibody identified in Section 8.1 as “55-2500 Anti-CHW MAb, clone key DI16872.5-USDA code E118.00”. 
  

 3 

 3.5 Synbiotics hereby grants to Agen a non-transferable (except pursuant to Section 32), fully paid-up,
non-exclusive, perpetual and irrevocable license under the ‘631 Patent and any and all know-how and trade secret rights, copyrights, and other intellectual or industrial property rights in, to, or under the Deposit Materials (i) to make and
have made (including by maintaining, growing, and otherwise using cell lines and other biological materials within the Deposit Materials or equivalent cell lines or biological materials) Biological Materials and derivatives thereof created or
developed by or for Agen for use in ICT lateral flow veterinary test kit products, and (ii) to use Deposit Materials (as defined in Section 11) in connection with the foregoing. Agen hereby agrees and covenants not to exercise the rights granted to
it in this Section 3.5 until the release of Deposit Materials to Agen upon the occurrence of a Trigger Event (as defined in Section 11). 
  
 3.6 Synbiotics may have provided to or shared with Agen, or may provide to or share with Agen (without any obligation, except as expressly provided
herein) certain know-how, trade secrets, data, and other information in connection with the parties’ relationship concerning the subject matter of this agreement and previous agreements between the parties. Synbiotics hereby grants immunity
from intellectual property rights suit to Agen, and those parties making ICT lateral flow veterinary test kit products for Agen, with respect to any use of such know-how, trade secrets, data, and other information in the manufacture, having
manufactured, use, or sale of such products. 
  
 4.
License of ‘046 Patent to Synbiotics.  
  
 Agen hereby grants to Synbiotics (which specifically includes for the purpose of this Section 4, Synbiotics Europe and any other wholly-owned subsidiary of Synbiotics) a non-transferable, fully paid up, non-exclusive, perpetual and
irrevocable license under the ‘046 Patent (and any and all reissues, reexaminations, extensions, divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and additions thereof or thereto in the member
countries of the European Patent Organisation designated in the ‘046 Patent) to make and have made for sale in Europe, and to use, sell, offer to sell, and import in and into Europe, ICT lateral flow feline immunodeficiency (FIV) virus test kit
products (“FIV Kits”). Synbiotics may use distributors, resellers, and OEMs, and may sublicense its rights to use, sell, offer to sell, and import FIV Kits to its distributors, resellers and OEMs, with further rights to sublicense
such rights through multiple levels of distributors and resellers (whether such FIV Kits are labeled with the Synbiotics brand or are privately labeled), provided that (i) such FIV Kits are made by or for Synbiotics, and (ii) if made for Synbiotics,
title to the finished FIV Kits is transferred to or otherwise vests in Synbiotics. Synbiotics shall have no right to sublicense its right to make or have made FIV Kits. Provided that FIV Kits are made by or for Synbiotics and meet the conditions set
forth in clause (ii) above, Agen hereby grants an immunity from suit for infringement under the ‘046 Patent to Synbiotics’, and its distributors’, resellers’, and OEM’s customers, with respect to such customers’ use of
FIV Kits in Europe. With regard to this license Synbiotics shall not, and shall have no right to, sell outside of Europe, or authorize its distributors, resellers, and OEMs to sell outside of Europe, FIV Kits made by or for Synbiotics in Europe.

  

 4 

 5. License of Japan Witness® Trademark to Agen.  
  
 Synbiotics hereby grants to Agen a fully paid up, exclusive,
non-transferable (except pursuant to Section 32), sublicensable (only to Agen’s commercialization partners, affiliates, resellers, and distributors) license, to use and display Synbiotics’ Japan Witness® trademark only for ICT lateral flow veterinary test kit products set forth in Exhibit A
sold in Japan. With regard to this license, Agen shall not, and shall have no right to, sell outside of Japan, or authorize its distributors, resellers, and OEMs to sell outside of Japan, ICT lateral flow veterinary test kit products set forth in
Exhibit A bearing Synbiotics’ Japan Witness®
trademark. 
  
 6. Mutual and General
Releases. 
  
 6.1 Synbiotics irrevocably and
unconditionally releases Agen and its officers, directors, employees, agents, attorneys, shareholders, partners, affiliates, distributors, resellers, OEMs, customers, insurers, successors and assigns, from all causes of action, lawsuits, claims,
demands, charges, liabilities or complaints of whatever kind, present or future, known or unknown, which arise out of or in any way relate to (a) conduct alleged in the complaints or counterclaims in the Agen Patent Action, the Synbiotics Patent
Action, and/or the Agen Contract Action (including any breach or alleged breach of the 2001 Agreement or any agreements or provisions referenced in the “Entire Agreement” section thereof), and (b) any payment obligations under the 2001
Agreement accrued through March 31, 2004. Excluded from this release are all obligations set forth in this Agreement. 
  
 6.2 Agen irrevocably and unconditionally releases Synbiotics and its officers, directors, employees, agents, attorneys, shareholders, partners,
affiliates, distributors, resellers, OEMs, customers, insurers, successors and assigns, from all causes of action, lawsuits, claims, demands, charges, liabilities or complaints of whatever kind, present or future, known or unknown, which arise out
of or in any way relate to (a) conduct alleged in the complaints or counterclaims in the Agen Patent Action, the Synbiotics Patent Action, and/or the Agen Contract Action (including any breach or alleged breach of the 2001 Agreement or any
agreements or provisions referenced in the “Entire Agreement” section thereof), and (b) any payment obligations under the 2001 Agreement accrued through March 31, 2004. Excluded from this release are all obligations set forth in this
Agreement. 
  
 6.3 Synbiotics and Agen certify that they have
been advised of and read the following provision found in Section 1542 of the California Civil Code: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 Synbiotics and Agen each acknowledges that it may hereafter discover facts different from, or in addition to, those which it now knows or believes to be true with respect to all or any of the liabilities, claims, defenses, causes of action,
costs or demands herein released. Nevertheless, each agrees that the releases set forth herein shall be and remain effective in all respects, 
  

 5 

 notwithstanding the discovery of such additional or different facts. Synbiotics and Agen each waives any and all rights
and benefits conferred by the provisions of Section 1542 of the Civil Code of the State of California, and any similar law of any state or territory of the United States or any other jurisdiction. 
  
 7. Termination Of Litigation 
  
 7.1. No later than seven (7) business days after the Effective Date of this
Agreement, the Parties will jointly file stipulations of dismissal with prejudice (1) in the form attached hereto as Exhibit 2 with the clerk of the United States District Court for the Southern District of California for the purpose of
dismissing the Agen Patent Action and the Synbiotics Patent Action; and (2) in a similar form, mutually agreeable to the Parties, with the clerk of the Superior Court for the State of California, County of San Diego, for the purpose of dismissing
the Agen Contract Action. 
  
 7.2 Agen agrees not to contest
validity or enforceability of the ‘631 Patent, and not to voluntarily assist any other party in contesting the infringement, validity, or enforceability of the ‘631 Patent, except that Agen reserves the right to raise validity or
enforceability as a defense in any action or suit initiated against it. Agen agrees not to contest infringement of the ‘631 Patent with respect to the manufacture, use, or sale of products containing a CHW Antibody in the United States. For the
avoidance of doubt, the assertion of any rights, immunities, or defenses resulting from this Agreement or activities hereunder shall not be deemed to constitute contesting (or assisting in contesting) infringement. Agen shall have no obligations and
shall be under no restrictions under this Section 7.2 after expiration of the ‘631 Patent. 
  
 7.3 Agen forgoes, forgives, releases and waives payment of the $[*] sanctions award set forth in the District Court’s order of June 8, 2004 and will
support any request by Synbiotics to have the sanctions order vacated. 
  
 7.4 No claim will be made by Agen on the $250,000 bond posted by Synbiotics on or about March 15, 2004, in conjunction with the Temporary Restraining Order issued by the District Court on or about that day. Agen shall further sign such
documents as may be necessary and proper to assist Synbiotics in the full release of the bond. 
  
 8. Biological Materials 
  
 8.1 Synbiotics will supply all of Agen’s requirements of the following biological materials (“Biological Materials”), and Agen shall purchase Biological Materials ordered by Agen hereunder, at
the following prices for the purpose of manufacturing ICT lateral flow veterinary test kit products, pursuant to the terms set forth in Sections 9 and 10 below: 
  

					
			
	 55-2500
	  	Anti-CHW MAb, clone key DI16872.5-USDA code E118.00	  	$ [*] per mg.
			
	55-0014	  	Rabbit Anti-CHW PAb-USDA code E019.00	  	$ [*] per mg.
			
	55-0951	  	Rabbit Anti-CPV PAb-USDA code E024.01	  	$ [*] per mg.
			
	55-2501	  	Anti-CPV MAb, clone key A1C2.32-USDA code E024.01	  	$ [*] per mg.

  

 6 

 8.2 The prices listed in Section 8.1 above may be increased only once each calendar year and at the same
time for any and all Biological Materials, provided that such increase shall not exceed (in percent) the increase (in percent) in the “Consumer Price Index For All Urban Consumers” as published by the United States Department of Labor
(“CPI”) for the twelve-month period preceding the price increase. After the end of the three year period immediately following the Effective Date, Synbiotics may also further increase the prices in Section 8.1 solely for Rabbit Anti-CHW
PAb-USDA code E019.00 and Rabbit Anti-CPV PAb-USDA code E024.01 (the “Polyclonal Antibodies”), at the same time as any CPI increase and only once in each calendar year following such three year period, by an amount equal to [*] of
the Raw Materials Cost Increase (calculated on a per unit basis) for such Polyclonal Antibodies in such year. The “Raw Materials Cost Increase” for a given calendar year shall be equal to the increase in Synbiotics’ actual cost
(calculated on a per unit of finished Polyclonal Antibody basis) of purchasing the raw materials from third parties at the time of the announced price increase as compared to the corresponding cost for such raw materials as of the date that is one
year earlier (as reasonably documented in writing and provided to Agen upon notice of any corresponding price increase). In any event, the total increase in the prices listed in Section 8.1 for Polyclonal Antibodies in any given calendar year from
all causes provided for in this Section 8.2 shall not exceed the sum of (i) [*] for the Raw Materials Cost Increase and (ii) the increase in CPI specified above. 
  
 8.3. All biological materials supplied in accordance with the order of the California Superior Court in Civil Action No.
GIC 825397 shall be supplied as set forth in the order. 
  
 8.4.
For the avoidance of doubt, Agen shall be under no obligation to purchase any Biological Materials (or any minimum quantity of Biological Materials) under this Agreement. If Agen does not issue any purchase orders for any specific Biological
Material in any consecutive fourteen month period, and thereafter Synbiotics intends to completely cease the manufacture of such Biological Material, Synbiotics shall provide Agen with written notice of such intent. If Agen does not issue a purchase
order for such Biological Material within thirty (30) days from receipt of such notice, Synbiotics may, in its sole discretion and upon written notice, terminate its supply obligations under this Agreement together with its respective obligations
under Section 11, in each case only with respect to such specific non-purchased Biological Material, when and if Synbiotics in fact completely ceases the manufacture of such Biological Material. Synbiotics’ notice shall specifically identify
the affected Biological Material. Neither such termination by Synbiotics, nor the refusal to supply such Biological Material after such termination is effective, shall constitute a Tentative Trigger Event (as defined in Section 11) with respect to
such Biological Material. 
  
 8.5 The Parties agree and
acknowledge that under present circumstances the prices listed above for these Biological Materials are substantially below market price because they are coupled with additional obligations (as set forth herein). The Parties further agree and
acknowledge that because the prices listed above for these Biological Materials are, under the present circumstances, [*], the [*] payment measured by Net Sales pursuant to Section 10.1 is partial compensation for the Biological Materials, as well
as for other benefits provided by Synbiotics under this Agreement. Therefore, subject to the provisions of Section 10 below and the other terms and conditions of this Agreement, Agen’s obligation to make such [*] payment 
  

 7 

 continues perpetually, as set forth in Section 10.1, but only with respect to products that contain at least one of the
Biological Materials described in Section 8 and which Biological Material was either supplied by Synbiotics to Agen hereunder (or previously as described in Section 10.4) or under Section 8.3 or manufactured using the Deposit Cell Lines following a
release thereof hereunder. 
  
 8.6 The Parties agree that these
Biological Materials are being supplied by Synbiotics to Agen (and the Deposit Materials would be made available to Agen through escrow to make Biological Materials) solely to permit Agen to manufacture, have manufactured, sell, offer to sell, and
import (including through distributors, resellers and OEMs) ICT lateral flow veterinary test kit products made by or for Agen which contain such Biological Materials (or derivatives thereof created or developed by or for Agen). The parties further
agree that Agen is not permitted to order Biological Materials that it intends to use for any other purpose, or use Biological Materials supplied by Synbiotics to Agen hereunder (or previously as described in Section 10.4) or use the Deposit
Materials for any other purpose. The Parties further agree and acknowledge that Agen is not permitted to sell or resell any one or more or all of the Biological Materials described in Section 8 which Biological Material was either supplied by
Synbiotics to Agen hereunder (or previously as described in Section 10.4) or manufactured by or for Agen using the Deposit Cell Lines following a release thereof hereunder other than within ICT lateral flow veterinary test kit products. For the
avoidance of doubt, the foregoing shall not prohibit Agen from, and Agen shall have the right to, provide such Biological Materials to third parties that manufacture ICT lateral flow veterinary test kit products for Agen for use in such manufacture.
For purposes of this Section 8.6, products (and Biological Materials and Agen Derivatives from the Deposit Cell Lines) shall only be deemed to have been made or manufactured “for” Agen if, and Agen’s permission to “have
manufactured” shall be limited to situations where, (a) title to the finished form of such product is transferred to or otherwise vests in Agen (which shall not preclude direct shipment, on Agen’s behalf, by the party making products for
Agen to recipients designated by Agen); and (b) sale of the finished product is subject to Section 10 hereof, applied pursuant to its terms. Agen shall not sell or resell the Deposit Cell Lines themselves or any other Deposit Materials. Among any
other remedies for violation of this Section 8.6 that Synbiotics may have, Synbiotics may exercise its rights under Section 9.5 as set forth therein and exercising such rights in such manner shall not constitute a Tentative Trigger Event as defined
in Section 11. 
  
 All Biological Materials supplied by
Synbiotics to Agen under Section 8.3 or previously supplied by Synbiotics to Agen as described in Section 10.4 are also hereby subjected to all the restrictions and limitations of this Section 8.6. 
  
 8.7. Synbiotics shall make, procure, and maintain all U.S. regulatory
filings, approvals, licenses, and registrations (including, without limitation, any U.S. export licenses, approvals, and certifications and any and all approvals, licenses, and registrations from the USDA’s Center for Veterinary Biologics)
(“Filings”) that are required in connection with Synbiotics’ manufacture and supply of Biological Materials to Agen as set forth herein and for Agen to use and sell such Biological Materials in its products as contemplated herein,
provided that, subject to the foregoing, Synbiotics shall not be responsible for Filings for Agen’s products. Synbiotics agrees 
  

 8 

 to provide to Agen copies of any such Filings (including any subsequent changes) and other related information, and Agen
shall have the right to reference such Filings and other related information in its Filings for products, to the limited extent as may reasonably be necessary for Agen to exercise its rights under this Agreement, with Synbiotics being allowed to
redact non-required information. 
  
 8.8. In the event (but only
in the event) that Synbiotics fails to comply with Section 8.7, Synbiotics (i) hereby grants to Agen all rights and other benefits (including without limitation any rights of reference) conferred by or otherwise resulting from any Filings and the
right to use and reference any materials or information (including clinical data and other testing data) submitted or required to be submitted in connection therewith, and in each case only insofar as necessary to obtain the benefit of Section 8.7,
and (ii) agrees to, upon Agen’s request, deliver to Agen such records, data or other documents or information, execute and deliver or cause to be delivered, all such consents, documents or further instruments, take or cause to be taken all such
other actions, and otherwise cooperate with and assist Agen as reasonably necessary for Agen to obtain the full benefits of the rights granted to it in Section 8.7. In addition, Synbiotics hereby grants to Agen the rights described in the foregoing
to the extent necessary for Agen to obtain or maintain Filings for Biological Materials with respect to which a Trigger Event has occurred, provided that Agen covenants not to exercise such right until the occurrence of such Trigger Event. In such
event Synbiotics shall also perform all such acts as are described in subclause (ii) above. 
  
 8.9 Upon Agen’s request, and at Agen’s cost and expense, Synbiotics shall reasonably cooperate with Agen with respect to regulatory filings, approvals, licenses, and registrations (including, without
limitation, export licenses, approvals, and certifications) relating to Biological Materials as contained in Agen’s products in Europe, including by permitting Agen to use and reference required materials or information (including clinical data
and other testing data) and executing required documents (but excluding any obligation to make changes to Specifications or its manufacturing obligations hereunder). 
  
 9. Terms and Conditions For Supply Of Biological Materials 
  
 The terms and conditions for supplying the Biological Materials referred to in Section 8 are
as follows: 
  
 9.1 Agen shall provide Synbiotics before the 5th
calendar day of each month a twelve (12) month rolling forecast of 90-day-lead-time orders to be placed for the Biological Materials. The quantity of Biological Materials listed in the forecast for orders to be placed within the first ninety (90)
days of each such forecast shall be a firm commitment that non-cancelable (permitted-lead-time) orders for such quantity of Biological Materials shall be placed during the first ninety (90) days of such forecast. The remainder of the forecast shall
create no obligation (although it must be made in good faith) and shall be used for planning purposes only, subject to Section 9.7 below. For the avoidance of doubt, Agen shall have no obligation hereunder to forecast and subsequently order any
Biological Materials from Synbiotics, subject to Section 8.4. If Agen does wish to order Biological Materials from Synbiotics, it shall do so in accordance with this Agreement. Even if Agen does not place non-cancelable (permitted-lead-time)
purchase orders in accordance with its firm commitment described in the second sentence of this Section 9.1 for the full amount 
  

 9 

 of such firm commitments within the applicable “first” ninety day period of each forecast
period, upon written notice from Synbiotics, Agen shall have thirty (30) days from receipt of a respective written notice from Synbiotics to make such orders. Immediately following such thirty (30) day period Agen shall be obligated to make the
respective indicated payments (exclusive of shipping, packaging, and other costs described in Section 9.3) for any firm commitments for which Agen has not made orders, and Synbiotics shall retain such payments and not be required to ship anything
there against, except to the extent Agen has issued purchase orders prior to the end of such thirty (30) day period (in which case such make up order shall be credited only against the required orders for the quarter in which such order should have
been placed and such make up order shall not count against the number of required orders for any other quarterly period). 
  
 It is expressly agreed that, subject to Section 9.7 below, Synbiotics is not obligated to accept within any applicable “first” 90 day period,
orders for greater quantities of Biological Materials than were identified for the first 90 days of the rolling forecast, but that Synbiotics shall be obligated to accept all orders for Biological Materials consistent with the quantities forecast
for the “first” 90 day period of each forecast. Synbiotics shall consider in good faith whether to accept and fulfill orders for any additional quantities; Synbiotics shall use reasonable efforts to accept and fulfill such orders, to the
extent Synbiotics has the applicable Biological Materials reasonably available at such time, and provided that failure to accept any such orders for such additional amounts shall not constitute a Tentative Trigger Event with respect to such
additional amounts. 
  
 9.2 Agen shall place purchase orders with
Synbiotics at least ninety (90) days (or, should Synbiotics consent, less than 90 days) prior to shipment date specifying the quantity, requested shipment method, requested delivery schedule, and destination. Full cash payment in advance must
accompany each purchase order. Synbiotics shall confirm each purchase order in writing within fifteen (15) days after receipt of such purchase order. Synbiotics shall not be responsible for any failure to supply Biological Materials where delivery
of Biological Materials to Agen’s designated destination is generally illegal under U.S. law (e.g., North Korea) or if Agen plans to re-export the Biological Materials to such an illegal destination. Synbiotics shall not be responsible for any
failure to supply Biological Materials where delivery of Biological Materials to Agen’s designated destination is generally legal under U.S. law but requires a valid import permit issued by the appropriate authority for such Biological
Materials and Agen has not provided such permit to Synbiotics. Also, Synbiotics has the right to ship directly to Agen if the designated recipient is not allowed by USDA regulation. Failure to supply where Synbiotics is not responsible for such
failure pursuant to the foregoing shall not constitute a Tentative Trigger Event (as defined in Section 11, including, without limitation, Sections 11.1 through 11.5). 
  
 9.3 Shipment Terms. 
  
 9.3.1 Agen shall pay all out of pocket costs of insurance, packaging, transportation and duties for each shipment of Biological Materials,
or additional out of pocket costs incurred as a result of compliance with Agen’s special shipment instructions, if any. Each purchase order shall be governed by the terms and conditions of this Agreement (regardless of 
  

 10 

 whether such purchase order references the Agreement). Any terms, conditions or provisions contained in
any purchase order or other documents (other than the information provided by Agen pursuant to clause 9.2 above or 9.4 below) are hereby expressly rejected and the parties agree that they are simply to be ignored. No conduct by Synbiotics or Agen,
including, without limitation, shipment of Biological Materials to Agen or acceptance of Biological Materials by Agen, shall constitute or be construed to constitute Synbiotics’ or Agen’s consent to or recognition of terms, conditions or
provisions that are different from or are not contained in this Agreement. 
  
 9.3.2 All Biological Materials supplied by Synbiotics to Agen hereunder shall conform with the Specifications and shall be manufactured and supplied in conformance with the applicable requirements contained in such
Specifications and all applicable laws and regulations. The “Specifications” shall mean the written specifications provided by Synbiotics to Agen on or before the execution of this Agreement (including release testing specifications,
methods of analysis and the contents of the certificate of analysis), which are reasonably acceptable to Agen, together with the applicable provisions of the USDA license for each Biological Material (per the code number referenced in Section 8.1)
as well as the applicable provisions of 9 C.F.R Parts 100 through 124 of the United States Code of Federal Regulations (and any successor provisions thereto). Synbiotics shall comply with all applicable laws, rules and regulations in its
manufacturing of the Biological Materials hereunder. 
  
 9.3.3 Biological Materials shall be delivered FCA Synbiotics and directed to Agen’s designated destination using Agen’s designated carrier and shipment method. Synbiotics shall be responsible for proper packaging, storage,
handling, and preparation for transport of Biological Materials. All shipments shall be accompanied by a certificate of analysis showing conformance with the Specifications. Title and risk of loss shall pass to Agen upon delivery to Agen’s
designated carrier. If any Biological Materials do not conform to the purchase order, the Specifications, or other express requirements under this Agreement, (i) Agen may reject such Biological Materials (provided that rejection must occur no later
than 10 working days after receipt; and provided further, that failure to reject shall not limit any other remedies Agen might have), and (ii) Synbiotics shall, at Agen’s option, either promptly re-deliver at Synbiotics’ cost (and no
further cost to Agen) an equivalent quantity of conforming Biological Materials, or promptly refund all payments made therefor to Agen. Neither action by Synbiotics shall constitute a Tentative Trigger Event as defined in Section 11 except as
expressly provided in Section 11.2(iii). 
  
 9.3.4 If Synbiotics disputes Agen’s rejection of a shipment of Biological Materials as provided above, it shall notify Agen in writing within fifteen (15) days after Agen’s notice of rejection. If Synbiotics does not so notify
Agen within such time period, Agen’s rejection shall be deemed effective and final. If Synbiotics does timely notify Agen of its dispute, the parties shall have an independent third party laboratory, reasonably acceptable to both parties,
definitively determine for purposes of this Agreement whether or not the Biological Materials conform to the Specifications (except to the extent such non-conformance results from damage after receipt by Agen or damage in transit for which Agen
bears the risk pursuant to Section 9.3.3 and not from Synbiotics’ failure to deliver the 
  

 11 

 Biological Materials to the carrier in accordance with this Agreement). For purposes of selecting a third
party laboratory, Agen shall notify Synbiotics of its choice for such laboratory and, if Synbiotics does not object to such laboratory within ten (10) days of such notice, such laboratory shall be deemed to be agreed upon by the parties hereunder;
otherwise the parties shall promptly meet and agree upon a laboratory as soon as reasonably practicable. Promptly following selection of the laboratory, Agen shall provide a representative and statistically significant sample of the disputed
Biological Materials to such laboratory along with a copy of the Specifications therefor so the laboratory can test such sample to determine if they conform to the Specifications. The determination made by such laboratory shall be binding on the
parties for the purposes hereof. Should the laboratory determine that the sample of the Biological Materials conforms to the applicable Specifications (except to the extent such non-conformance results from damage after receipt by Agen or damage in
transit for which Agen bears the risk pursuant to Section 9.3.3 and not from Synbiotics’ failure to deliver the Biological Materials to the carrier in accordance with this Agreement), then Agen shall accept the corresponding shipment of
Biological Materials and pay the fee of the laboratory for its analysis. Should the laboratory determine that the sample of the Biological Materials does not conform to the Specifications, the corresponding shipment shall be deemed rejected,
Synbiotics shall pay the fee of the laboratory for its analysis, and the provisions above for rejection shall apply. 
  
 9.4 Purchase orders shall be deemed firm orders. To be effective, any change to a purchase order shall be mutually agreed upon in writing by both parties,
and may include a change in fees reflecting the inclusion and/or deletion of Biological Materials as well as Synbiotics’ applicable, direct costs of processing such change. 
  
 9.5 Synbiotics can refuse to supply Biological Materials hereunder if Agen orders such Biological Materials for purposes
inconsistent with, and will use such Biological Materials in a manner inconsistent with Section 8.6 (such Biological Materials used for such purpose in such manner being an “Unauthorized Antibody”). If Synbiotics reasonably suspects
that a given order of Biological Materials will be used as an Unauthorized Antibody, Synbiotics may (as a non-exclusive remedy) refuse shipment thereof provided, however, that such refusal shall only be permitted after and in accordance with the
following: (1) Synbiotics shall notify Agen in reasonable detail of its suspicions regarding an Unauthorized Antibody, (2) within ten (10) working days of such notice, Agen shall respond with either a reasonably detailed factual explanation of why
such suspicion is erroneous or else, if applicable, reasonable assurances that the use of Unauthorized Antibodies will cease, (3) if Synbiotics reasonably disagrees with such explanation or, if applicable, disagrees that the proposed assurances are
not reasonably sufficient, Synbiotics shall respond in writing with an explanation thereof, (4) if disagreement remains, a senior executive of each party shall meet and confer within a period of ten (10) working days from Synbiotics’ response
to attempt to resolve such disagreement, and (5) absent any such resolution, Synbiotics may suspend shipment of the disputed Biological Materials pending judicial resolution in accordance with Section 15, provided that (i) Synbiotics shall ship the
disputed Biological Materials if so required pursuant to an order of the Court (as defined in Section 15), including any temporary restraining order, preliminary injunction, permanent injunction, order for specific performance, or other equitable
remedy, and (ii) Synbiotics’ 
  

 12 

 permitted suspension of shipment hereunder shall not, and shall not be deemed to, preclude Agen from
seeking, or preclude the Court from granting, any provisional or equitable relief including temporary restraining orders, preliminary injunctions, permanent injunctions, orders for specific performance, or other such provisional or equitable
remedies based on Synbiotics’ failure to ship disputed Biological Materials (which are not Unauthorized Antibodies) in accordance with this Agreement. For purposes of determining whether a Tentative Trigger Event (as defined in Section 11) has
occurred, the time for delivery shall be extended day for day for the time of permitted suspension. For example, if Agen places an order on April 1 for delivery on July 15, the 10-day period in clause (4) ends on June 30, and a Court Order in
Agen’s favor is entered on September 8, then the new scheduled delivery date (with the same status as the originally-scheduled July 15 date) shall be September 24. 
  
 9.6 Payment terms shall be cash (or other immediately available funds, including wire transfer) in advance (at the time of
the purchase order) payable in United States Dollars. An order not so paid at the time of the order shall be deemed to be no order at all until payment therefor is made, upon which time such order shall constitute a valid order with the shipment
date being postponed by the period of delay in payment. 
  
 9.7
With respect to any updated forecast submitted by Agen under Section 9.1 (a “New Forecast”) the following restrictions shall apply, in respect to quantities of Biological Materials, as compared to the immediately preceding forecast
submitted by Agen (the “Previous Forecast”): (i) the quantities for the third month of the New Forecast shall not differ from the quantities for the same time period (i.e., the fourth month) of the Previous Forecast by more than
[*]; (ii) the quantities for the fourth month of the New Forecast shall not differ from the quantities for the same time period (i.e., the fifth month) of the Previous Forecast by more than [*]; and (iii) the quantities for the fifth month of
the New Forecast shall not differ from the quantities for the same time period (i.e., the sixth month) of the Previous Forecast by more than [*]. No restrictions apply with respect to any subsequent months. Notwithstanding the foregoing, if
the quantities for any month are zero, nothing in the foregoing shall prevent, and Agen shall have the right to, forecast a reasonable quantity in any subsequent months. 
  
 9.8 In the event Synbiotics fails to supply ordered Biological Materials on the scheduled shipment date, Synbiotics shall
pay to Agen interest on the amounts prepaid by Agen for such order at the rate of [*] per month (accruing on a daily basis). At Agen’s option, such interest amounts shall be credited toward future purchases of Biological Materials or paid
directly to Agen in cash, as Agen shall direct to Synbiotics in writing. This Section 9.8 shall not apply to the extent and as long as Synbiotics is not responsible for such failure to supply pursuant to Section 9.2. 
  
 10. [*] Payment 
  
 10.1 In partial consideration for the Biological Materials, beginning April
1, 2004 and continuing perpetually, Agen shall pay Synbiotics a payment, in the shape of a royalty, in the amount of [*] of Net Sales of: (a) ICT lateral flow veterinary test kit products manufactured by or for Agen that contain at least (i) one of
the Biological Materials described in Section 8 which Biological Material was either supplied by Synbiotics to Agen hereunder (or previously as 
  

 13 

 described in Section 10.4) or manufactured using the Deposit Cell Lines following a release thereof hereunder, or (ii)
derivatives of such Biological Materials manufactured by or for Agen out of the Biological Materials supplied by Synbiotics to Agen hereunder (or previously as described in Section 10.4) or Deposit Cell Lines (“Agen Derivatives”); and (b)
products or Deposit Cell Lines made or sold in violation of this Agreement, that contain at least (i) one of the Biological Materials described in Section 8 which Biological Material was either supplied by Synbiotics to Agen hereunder (or previously
as described in Section 10.4) or manufactured using the Deposit Cell Lines following a release thereof hereunder, or (ii) Agen Derivatives. 
  
 10.2 Net Sales. 
  
 10.2.1 As used herein, “Net Sales” shall mean gross sales, royalty and other revenue, assets and rights received by Agen from the first
sale to a non-affiliate of Agen (or, if the first sale is by a transferee of Biological Material in violation of this Agreement, the first sale to a non-affiliate of such transferee) of products containing at least one of the Biological Materials
described in Section 8 above (which Biological Material was either supplied by Synbiotics or manufactured by or for Agen (or such transferee of Agen) using the Deposit Cell Lines following a release thereof hereunder) or Agen Derivatives, less (i)
trade discounts and rebates (to the extent not already reflected by a reduced gross sales revenue), (ii) bona fide shipping and handling (to the extent payments from customer therefor were included in gross sales revenue), (iii) taxes (to the extent
payments from customer therefor were included in gross sales revenue), and (iv) amounts repaid or credits taken by reason of rejections, defects, returns, retroactive price reductions, or due to recalls or government laws or regulations requiring
rebates. 
  
 10.2.2 If such products described in 10.2.1 are sold
bundled with other products, Net Sales shall be calculated based on the regular price of the product containing such Biological Materials if sold on a stand-alone basis, and the remainder of the price for the products sold as a bundle shall be
allocated to the other products and shall not constitute Net Sales; if such first product containing such Biological Materials is not sold on a stand-alone basis, Net Sales shall be based on the fair market value of the portion containing such
Biological Materials. If any such products described in 10.2.1 are “Combination Products” (defined as products that contain within the same physical kit at least one test using any Biological Material or Agen Derivative and at least
one test not using any Biological Material or Agen Derivative) then Net Sales for such Combination Product shall be calculated by multiplying total Net Sales of the Combination Product by the fraction A divided by (A + B) where A is number of tests
in the Combination Product using any Biological Material or Agen Derivative and B is the number of tests in the Combination Product not using any Biological Material or Agen Derivative. 
  
 10.2.3 Net Sales shall be reported quarterly. Agen will provide a good faith preliminary non-binding estimate of Net Sales
within ten (10) days of the end of the quarter and will provide a final report of Net Sales within thirty (30) days of the end of the quarter and the [*] payment shall be paid quarterly within thirty (30) days after the end of each quarter. In the
event that Agen structures an arrangement for sale of products bearing royalties under Section 10.1 such that the Net Sales amount received by Agen is net of all or a material part of the cost of goods sold or a similar arrangement (e.g., the
purchaser is also the contract manufacturer and both the purchase price and the manufacturing price are grossed down) such that Agen is 
  

 14 

 receiving materially less than a payment in the nature of a full product purchase price, the amount of Net Sales for such
products used to calculate royalties under 10.1 shall be adjusted to an amount that more fairly represents a full product purchase price consistent with other sales of the same or comparable products by Agen outside of such special arrangements.

  
 10.3 Synbiotics may request at its sole discretion and
expense, an audit of Agen’s records to verify Net Sales through an independent auditor reasonably acceptable to Agen, at any time during Agen’s standard business hours upon reasonable notice, but in no event more than once per calendar
year nor more than once for the same period. Prior to conducting such audit, such auditor shall agree to confidentiality restrictions reasonably acceptable to Agen. The auditor shall report to Synbiotics if any underpayment has occurred and the
amount of such underpayment, but not any of the underlying or related information obtained by the auditor in connection with such audit. 
  
 10.4 The Parties acknowledge that Agen currently possesses an inventory, supplied by Synbiotics prior to the Effective Date of this Agreement, of
Biological Materials. It is impossible to determine whether a product contains “old” Biological Materials or “new” Biological Materials. In addition, the Parties’ previous arrangements contained payment arrangements based on
net sales of certain products containing certain Biological Materials before the Effective Date. For the avoidance of doubt, the Parties hereby agree that Section 10 shall apply to all Net Sales after March 31, 2004 whether the underlying Biological
Materials were provided by Synbiotics prior to the Effective Date or hereunder or under Section 8.3. The Parties acknowledge and agree that Agen has fully paid, and is hereby released from, any liability concerning royalties on sales of products
containing Biological Materials prior to and on March 31, 2004. Agen shall have no further payment obligation under the 2001 Agreement, as set forth in Section 6.2. 
  
 10.5 Moreover, the parties agree that during any time Agen is in default in making any payments due under this Section 10
or under the final sentence of Section 11.2 or under Section 2.1.2, following notice and 10 working days opportunity to cure, unless such default is disputed by Agen in good faith, Synbiotics can refuse to supply Biological Materials to Agen as long
as such undisputed default remains uncured and the time for delivery shall be extended day-for-day for such period of permitted suspension. Such refusal shall not constitute a Tentative Trigger Event (as defined in Section 11). In any event, with
regard to amounts allegedly owed under the final sentence of Section 11.2 or under this Section 10 (as opposed to under Section 2.1.2), Synbiotics shall have no right to refuse to supply Biological Materials pursuant to the foregoing, if Agen pays
into a U.S. escrow, to be released upon final resolution of any dispute, the amounts allegedly owed. 
  
 10.6 The parties confirm that the [*] payment to be made in accordance with this Agreement is not an attempt to misuse any Synbiotics patent by requiring
the payment of a patent royalty beyond the expiration of the patent, nor any unfair competition, antitrust violation, or similar violation, but instead represents (a) bargained-for consideration, in the shape of a royalty, for the delivery of
unpatented physical goods, (b) a bargained-for balance against the low amount of the upfront purchase price for the goods, which is substantially below market price, (c) the agreed upon use of a purchase price component which protects against
inflation in the 
  

 15 

 specific market for these goods, (d) part of the consideration for Synbiotics’ agreement to continue to supply,
despite Synbiotics’ desire otherwise to retain its rights not to supply Agen at any given time, (e) part of the consideration for Synbiotics’ agreement to supply at a prearranged formula price, despite Synbiotics’ desire otherwise to
retain its rights to set its price from time to time at what the market would bear (and to refuse to sell except at such price), and (f) part of the consideration for Synbiotics agreeing to subject its proprietary Deposit Materials to escrow and
possible delivery from escrow. 
  
 10.7 The parties agree that
for Agen ever to contest Synbiotics’ rights to payment under this Section 10 in accordance with this Agreement based on a theory of patent misuse or similar theories under unfair competition or antitrust laws, or similar laws, would be unfair
and unjust. The right to payment under this Section 10 is not severable from Synbiotics’ agreement to supply— if Agen ever seeks to invalidate or deny the right to payment under this Section 10 based on the foregoing theories, the
agreement to supply shall thenceforth be void. In addition, the Parties agree that if before the release of Deposit Materials from escrow to Agen, Agen ever finds the payment under this Section 10 in accordance with this Agreement to be in any way
wrongful, illegal, or unfair, the Parties shall not engage in any wasteful dispute over the matter but instead, at its option and in its sole discretion, Agen may notify Synbiotics that it no longer wishes to pay the payment, and then (a) Agen shall
honor the payment as to all Synbiotics Biological Materials shipped to Agen before such notice in accordance with this Agreement, (b) the payment shall not apply to any Synbiotics goods shipped to Agen after such notice, (c) from and after such
notice Synbiotics shall no longer have any contractual obligation to supply Agen at all, or at any particular price, (d) if Synbiotics does agree thereafter to supply Agen on any one or more occasions, such supply shall be governed by the terms and
conditions of this Agreement (except as to price and except as otherwise expressly agreed by the Parties), (e) all open Agen purchase orders at the time of such notice shall be deemed cancelled without any penalty or obligation for Agen resulting
therefrom, and (f) the Deposit Materials shall be immediately returned by the Escrow Agent to Synbiotics. 
  
 11. Escrow of Biological Materials 
  
 11.1 Within 30 days of the execution of this Agreement and at such times thereafter to ensure compliance with the intent of this Article, but in no event
less than once every three (3) year period commencing from the Effective Date, Synbiotics will place five vials of master cell stock anti-canine heartworm monoclonal antibody, clone key DI 16 872.5 cell line, five vials of master cell stock
anti-canine parvovirus A1C2 cell line (the “Deposit Cell Lines”) and sufficient quantities of the necessary associated Synbiotics-proprietary biological materials, and all manufacturing process instructions, purchasing
specifications and Standard Operating Procedures (including the complete outline of production submitted to the USDA/CVB), and all Filings (which may be redacted to the extent allowed by Section 8.7) and related information described in Section 8.7,
which shall comprise the know-how necessary for the utilization of the cell lines and other materials described in the foregoing in order to manufacture or otherwise produce Biological Materials suitable (as measured by the Specifications, laws, and
regulations applicable as of the most recent deposit or update hereunder) for commercialization (collectively, including the Deposit Cell Lines, the “Deposit Materials”) in escrow with BioReliance Ltd., Innovation Park, Hillfoots
Road, Stirling, FK9 4NF, Scotland, United Kingdom, telephone 44.(0)1786.451318, facsimile 44.(0)1786.464764 (for the avoidance of doubt, any dispute 
  

 16 

 regarding the occurrence of a Tentative Trigger Event and/or a Trigger Event shall be resolved between the Parties under
California law pursuant to this Agreement), or, if applicable laws and regulations do not permit delivery to such escrow agent, an escrow agent in the U.S. to be agreed upon by the Parties (as applicable, the “Escrow Agent”).
Synbiotics will warrant at each time point above that such Biological Materials are viable and fit for the purpose. Synbiotics shall update the Deposit Materials when there is any material change with respect to same. Synbiotics represents and
warrants that the Deposit Materials meet the requirements set forth herein and are fit for their intended purpose. 
  
 11.2 The Parties shall negotiate in good faith and enter into a standard and customary escrow agreement with the Escrow Agent within thirty (30) days of
the execution of this Agreement that is consistent with the terms and conditions set forth herein. If the Parties fail to reach agreement within seventy-five (75) days of the execution of this Agreement, the matter shall be submitted to the Court in
accordance with Section 15 hereof. The Escrow Agent shall be entitled to confirm whether the Deposit Materials comply with the requirements set forth herein by permitting an independent expert to be named in the escrow agreement (under
confidentiality agreement) to examine and to confirm compliance of the Deposit Materials with the requirements set forth in this Agreement. The Escrow Agreement shall provide for release of the Deposit Materials to Agen only upon occurrence of a
Trigger Event as defined below. The Deposit Materials shall remain the property of Synbiotics, subject to Agen’s rights to use the Deposit Materials as set forth in this Agreement. Synbiotics understands that it is important to Agen for
planning, scheduling and other purposes to assure that the supply of Biological Materials is reliable and regular. 
  
 In the event (i) that Synbiotics fails to supply one or more Biological Materials to Agen in accordance with this Agreement within 75 days of the confirmed shipment date
(subject to the exceptions to Synbiotics obligation to supply Biological Materials expressly specified in this Agreement), or (ii) of a merger, consolidation, corporate reorganization, sale of all or substantially all of Synbiotics’ assets
relating to the subject matter of this Agreement, or like event involving Synbiotics, on the one hand, and [*] or its successors or affiliates, or [*] or its successors or affiliates, on the other, or (iii) Synbiotics fails to supply any portion of
one or more ordered Biological Materials in conformance with the Specifications and quantities ordered on the scheduled delivery date (and fails to cure such failure within thirty (30) days of the original scheduled delivery date) (A) with respect
to three consecutive orders or re-deliveries of the same type of Biological Materials, or (B) with respect to any portion of six of any eight consecutive orders of any single type of Biological Materials, or (C) under circumstances where such
failure to supply is due to bad faith on the part of Synbiotics (each of the events described in clauses (i) through (iii) above being a “Tentative Trigger Event”), Agen shall provide written notice thereof to Synbiotics and
Escrow Agent. 
  
 If within 20 days thereafter (except as set forth in Section
11.4) Synbiotics does not dispute the Tentative Trigger Event in good faith by written notice to Escrow Agent and Agen (such failure to dispute in good faith being a “Trigger Event”), the Escrow Agent shall release the Deposit Materials to
Agen. If Synbiotics does dispute in good faith, the delivery to the Escrow Agent of an Order of the Court finding that a Tentative Trigger Event did occur shall also constitute a “Trigger Event” and upon any such Trigger Event the Escrow
Agent shall release the Deposit 
  

 17 

 Materials to Agen, subject to the following. In the case of the Tentative Trigger Events described in clauses (i) and
(iii) above, the Escrow Agent shall not release any portion of the Deposit Materials that is unrelated to the affected type of Biological Materials and is so designated, provided, that each set of Deposit Materials shall be complete and meet all of
the requirements set forth herein, in and of itself. If, after execution of the Escrow Agreement, Synbiotics fails to deliver into escrow all Deposit Materials in accordance herewith, Agen shall, for the period of such failure, be relieved from all
payment obligations under Section 10.1 of this Agreement. In the event the parties dispute whether a Tentative Trigger Event described under 11.2(iii)(C) has occurred, the party losing such dispute before the Court shall pay the winning party all of
such winning party’s attorneys fees and litigation costs reasonably incurred in connection with litigating such dispute. 
  
 11.3 Upon termination by Synbiotics of its supply obligations under this Agreement together with its respective obligations under Section 11 with respect
to any a specific Biological Material in accordance with Section 8.4, the Escrow Agent shall release to Synbiotics only such set of Deposit Materials that are specific to such specific Biological Material(s) and is so designated, provided, that each
set of Deposit Materials shall be complete and meet all of the requirements set forth herein, in and of itself. Synbiotics will no longer be obligated to update such set of Deposit Materials. 
  
 11.4 Failure to supply caused by Force Majeure or any governmental agency
prohibiting the shipment of Biological Materials (unless such governmental agency prohibition results from Synbiotics’ failure to comply with Section 8.7 hereof) shall not result in a release of the Deposit Materials under this provision unless
such Force Majeure delays the supply of Biological Materials an additional seventy-five (75) days beyond the seventy-five (75) day period described above, at which point a Tentative Trigger Event will occur. In such case, notwithstanding Section
11.2, if Synbiotics does not dispute such Tentative Trigger Event within three (3) days after such additional seventy-five (75) day period, such Tentative Trigger Event shall become a Trigger Event. 
  
 11.5 All escrow and storage fees will be paid by Agen. This Section 11 is
intended to ensure that Agen can continue to manufacture ICT lateral flow test kits using the non-supplied Biological Materials in the event that Synbiotics fails (to the extent defined in this Section 11) to supply one or more Biological Materials
as set forth in this Agreement or is otherwise subject to a Trigger Event. In the event of a failure to supply one or more Biological Materials as set forth in this Agreement, Agen’s recovery shall be limited to the release of Deposit Materials
corresponding to the non-supplied Biological Materials as well as a refund of the purchase price paid for Biological Materials ordered but not supplied by Synbiotics in accordance with this Agreement. 
  
 12. Termination 
  
 12.1 Termination. At any time after the expiration of the ‘631 Patent
Agen may terminate this Agreement upon thirty (30) days written notice. In the event of any termination the following Sections of this Agreement shall survive: 1, 4, 5, 6, 7, 8.6, 10, 12-26, 28-36. Notwithstanding the foregoing, Synbiotics license
under Section 4 shall terminate in the event Synbiotics exceeds the scope of such license. Upon termination of this Agreement, the Deposit Materials shall be returned by the Escrow Agent to Synbiotics. 
  

 18 

 12.2 Termination of 2001 Agreement. 
  
 The Parties agree that the October 29, 2001 License, Distribution and OEM Agreement is terminated and, notwithstanding
Article 12 or any other provision of that 2001 Agreement, all rights and obligations thereunder shall terminate (without limiting any rights or obligations of the Parties under this Agreement). 
  
 13. Confidentiality of Agreement. 
  
 13. 1. The Parties and their attorneys and representatives shall treat the
terms of this Agreement as confidential and shall use commercially reasonable efforts not to voluntarily disclose any material terms to any third persons, except to the extent required by governmental agencies (including, but not limited to, the
Securities and Exchange Commission or its Australian equivalent, regulatory agencies and the like), applicable laws or court order or the rules or policies of any stock exchange on which a Party is listed. Either Party may disclose information
contained in a mutually agreed upon press release. 
  
 13.2. The
Parties acknowledge that each Party is a public company which may from time to time be required to report and discuss this Agreement, and its commercial effects, and/or include the Agreement as an exhibit, in its reports under the Securities
Exchange Act of 1934 and/or its registration statements, or Australian equivalents thereto. Either Party shall be entitled to include the Agreement as an exhibit in publicly filed reports provided, however, that any such filing shall be accompanied
by a Request for Confidential Treatment, such as that filed with the Office of the Secretary of the SEC under Rule 406 of the Securities Act of 1933 or Rule 24b-2 of the Securities Exchange Act of 1934. Prior to any such filing, the Parties shall
redact the financial terms and other terms of this Agreement that qualify for confidential treatment under applicable regulations. The Parties shall consult with each other and cooperate in good faith in order to obtain confidential treatment to the
extent permissible under applicable regulations. The Parties further acknowledge that in time the SEC (or Australian counterpart) may grant, grant in part, or deny such application for confidential treatment. To the extent that such application is
granted only in part or is denied (or the confidential treatment grant is later revoked in whole or in part by the SEC or foreign counterpart), then thereafter the extent to which either Party is required to maintain in its public filings the
confidentiality of specific provisions of the Agreement shall be governed not by the extent of the original redactions but rather by the extent of the redactions as allowed by the SEC or foreign counterpart. 
  
 13.3. If either Party desires to make any further public disclosure, not
required by law or court order, above and beyond what is allowable as set forth above, it shall not make any such disclosure without the prior written approval of the other Party. 
  
 13.4. Notwithstanding anything in the foregoing to the contrary, either Party shall in all events be allowed to (i)
disclose non-confidentially to any person, either in a SEC filing or otherwise, any information which the other Party has disclosed in the publicly available portion of any SEC filing or disclosed to any third party who has no obligation of
confidentiality with regard to such information, and (ii) disclose confidentially to legal or financial counsel, and to any current or prospective lending financial institution, and to any prospective acquirer or investor, the unredacted Agreement.

  

 19 

 14. Attorneys Fees and Costs 
  
 Each Party will bear its own costs, expenses, and attorneys’ fees,
whether taxable or otherwise, incurred in, arising out of or in any way related to the matters forborne herein including, without limitation, the lawsuits identified herein and negotiation and execution of this Agreement. 
  
 15. California Law 
  
 This Agreement shall be interpreted, and the rights and duties of the
Parties hereto shall be determined, in accordance with the laws of the State of California, as applied to contracts entered into and performed in California, by California residents. The Parties agree that the United States District Court for the
Southern District of California (the “Court”) has jurisdiction over each of them for the purposes of enforcing this Agreement and will retain jurisdiction to interpret and enforce the terms and provisions of this Agreement. 
  
 Any controversy or claim arising out of or relating to this Agreement, or
the breach thereof, shall be submitted for resolution to the above-referenced Court. 
  
 16. Representations and Warranties.  
  
 The Parties warrant that no other person or entity has claimed or now claims any interest in the subject to which this Agreement relates, and that they have the sole right and exclusive authority to execute this
Agreement. 
  
 17. Voluntary and Knowing.

  
 This Agreement is executed voluntarily and without any
duress or undue influence on the Parties hereto. The Parties acknowledge that: 
  
 17.1. They have read this Agreement; 
  
 17.2. They have been represented in the preparation, negotiation and execution of this Agreement by legal counsel of their own choice; and 
  
 17.3. They are fully aware of the legal and binding effect of this Agreement and sign the same of their own free will. 
  
 18. Binding Effect. 
  
 Synbiotics and Agen agree that this Agreement, and each of its parts, shall
be binding upon and inure to the benefit of each of their respective heirs, representatives, executors, administrators, successors and assigns. 
  
 19. Severability. 
  
 Except to the extent expressly specified in Section 10.7, in the event any provision of this Agreement shall be determined to be invalid, illegal or
unenforceable, such provision shall be severable from the remainder of the Agreement, and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

 20 

 20. Counterparts. 
  
 This Agreement may be executed in counterparts, each of which is deemed to be an original, but all of which together shall
constitute one and the same instrument. Facsimile and photocopy signatures shall carry the same force and effect, and shall bind the Parties hereto in the same manner, as original signatures to this Agreement. 
  
 21. Integration and Modification. 
  
 Each Party represents and warrants that as of the date of the full
execution of this Agreement, no promise, inducement or agreement not expressed herein has been made to it in connection with this Agreement, and that this Agreement contains the entire agreement between the Parties as to the subject matter relating
hereto and supersedes any previous agreements, negotiations, promises or understandings between them as to the subject matter contained herein. It is expressly agreed that this Agreement may not be altered, modified or amended except by a writing
duly executed by the undersigned Parties. 
  
 22.
Construction. 
  
 22.1. The language and terms
of this Agreement are to be understood in their ordinary sense (except where otherwise defined herein) and are not to be interpreted in a technical manner so as to unfairly deprive any Party of substantive rights. 
  
 22.2. The text of this Agreement is the product of negotiation among both
Parties and is not to be construed as having been prepared by one Party or the other. 
  
 23. Warranty of Authorized Signatories. 
  
 Each of the signatories to this Agreement warrants and represents that he or she is competent and authorized to enter into this Agreement on behalf of the Party for whom he or she purports to sign. 
  
 24. Waiver. 
  
 Failure at any time to require performance of any of the provisions herein
shall not waive or diminish a Party’s right thereafter to demand compliance therewith or with any other provision. Waiver of any default shall not waive any other default. A Party shall not be deemed to have waived any rights hereunder unless
such waiver is in writing and signed by a duly authorized officer of the Party making such waiver. 
  
 25. Headings 
  
 The captions used in this Agreement are inserted for convenience and shall not be deemed a part of this Agreement for construction or interpretation.

  
 26. No Agency 
  
 The relationship between Synbiotics and Agen under this Agreement shall be
that of independent contractors engaged in the operation of their own respective businesses. Nothing in this Agreement is intended or is to be construed to constitute Agen and Synbiotics as partners, employer/employee, or principal/agent, or the
employees or agents of any Party hereto as employees or agents of the other Party. Neither Party has the express or implied right or authority to assume or create any obligations for or on behalf of the other Party, to bind the other Party to any
contract or undertaking with any third party or to make any warranties or representations for or on behalf of the other Party. The Parties shall, at all times in no event make any representations, warranties, guarantees or other statements on the
other Party’s behalf. 
  

 21 

 27. No Disparagement. Each Party agrees to refrain from any libel, defamation, or
slander of the other. 
  
 28. Bankruptcy

  
 All rights and licenses granted under this Agreement by
Synbiotics to Agen and Agen to Synbiotics are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101 of the Bankruptcy
Code. The Parties agree that Agen and Synbiotics, as licensees of rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code. The Parties further agree that, in the event of the
commencement of a bankruptcy proceeding by or against Synbiotics under the Bankruptcy Code, the Deposit Materials, if not already in its possession, shall be promptly delivered to Agen upon Agen’s written request (i) no later than fifteen (15)
days after any such commencement of a bankruptcy proceeding, unless Synbiotics elects to continue to perform all of its obligations under this Agreement pending any rejection of this Agreement, or (ii) if not delivered under (i) above, upon the
rejection of this Agreement by or on behalf of Synbiotics, or (iii) as provided in Section 11. 
  
 29. Indemnification 
  
 29.1 Indemnity Obligations. Each Party shall defend the other Party from and against any third-party claim, suit or proceeding brought against such other Party resulting from (i) any breach (or any claim that,
if true, would constitute a breach) of such first Party’s obligations under the 2001 Agreement (which the Parties acknowledge has been terminated) or under this Agreement, or (ii) the infringement, misappropriation, or violation of any third
party’s rights (including patents, copyrights, and other intellectual property rights) by any Biological Materials or Deposit Materials provided by such first Party under this Agreement or under the 2001 Agreement and the use thereof by such
other Party for the purposes permitted under this Agreement; and such first Party shall indemnify and hold harmless such other Party from any damages, costs, losses or liability (including attorneys’ fees and related costs) arising out of or
relating to such claim, suit or proceeding. 
  
 29.2
Conditions. Neither Party shall be obligated to indemnify, hold harmless or defend the other Party pursuant to Section 29.1 unless (and only to the extent) the other Party (a) provides prompt notice of the commencement of the claim, suit or
proceeding for which indemnification is sought, (b) provides reasonable cooperation to such Party, and (c) allows such Party to control the defense and settlement thereof, provided that (i) the other Party may, at its option and expense, participate
and appear on an equal footing with such Party in the claim, suit or proceeding and (ii) neither Party may settle a claim, suit or proceeding without approval of the other Party, which approval shall not be unreasonably withheld or delayed.

  

 22 

	30.	Confidential Information and Disclosure 

  
 30.1 Confidential Information. Each Party agrees to maintain all Confidential Information of the other Party in confidence to the same extent that
it protects its own similar Confidential Information (but in no event shall such Party use less than reasonable care in protecting such Confidential Information) and to use such Confidential Information of the other Party only for the purposes of
exercising its rights and performing its obligations under this Agreement. “Confidential Information” means any information (whether in writing, or in oral, graphic, electronic or any other form) that is marked or confirmed in
writing as confidential or proprietary, including such information provided by a party to the other party prior to the Effective Date hereof. Each Party agrees to take all reasonable precautions to prevent any unauthorized disclosure or use of
Confidential Information of the other Party, and each Party may disclose Confidential Information only to its Permitted Persons (a) with a need to know such information, (b) who are parties to appropriate agreements or confidentiality obligations
sufficient to comply with this Section 30.1, and (c) who are informed of the nondisclosure/non-use obligations imposed by this Section 30.1, and the receiving Party shall take appropriate steps to implement and enforce such non-disclosure/non-use
obligations. “Permitted Persons” means a Party’s employees, agents, contract manufacturers, and, except for Deposit Materials, its distributors, resellers and OEMs. 
  
 30.2 Exclusions. The foregoing restrictions on disclosure and use shall not apply with respect to any Confidential
Information that (a) was or becomes publicly known through no fault of the receiving Party; (b) was rightfully known or becomes rightfully known to the receiving Party without confidential or proprietary restriction from a source other than the
disclosing Party; (c) is documented by the receiving Party as having been independently developed by the receiving Party without the participation of individuals who have had access to or use of the Confidential Information; (d) is approved by the
disclosing Party for disclosure without restriction in a written document signed by a duly authorized officer of such disclosing Party; or (e) the receiving Party is legally compelled to disclose, provided, however, that prior to any such compelled
disclosure, the receiving Party shall (i) assert the privileged and confidential nature of the Confidential Information against the third party seeking disclosure and (ii) cooperate fully with the disclosing Party in protecting against any such
disclosure and/or obtaining a protective order narrowing the scope of such disclosure and/or use of the Confidential Information. With respect to (e) above, in the event that such protection against disclosure is not obtained, the receiving Party
shall be entitled to disclose the Confidential Information, but only as and to the extent necessary to legally comply with such compelled disclosure. 
  
 31. LIMITATION OF LIABILITY. TO THE EXTENT ALLOWED BY APPLICABLE LAW, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, OR ANY LOST PROFITS, LOSS OF BUSINESS, LOSS OF USE, AND INTERRUPTION OF BUSINESS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  

 23 

 32. Assignment 
  
 Neither Party shall assign, sell, transfer, delegate or otherwise dispose of, whether voluntarily or involuntarily, by
operation of law or otherwise, this Agreement or any or its rights or obligations under this Agreement. Notwithstanding the foregoing, either Party may assign or transfer this Agreement, together with all of its rights and obligations hereunder, to
a third party as part of a merger, consolidation, corporate reorganization, sale of all or substantially all of such Party’s animal health assets, change of name or like event (“Permissible Assignment”), provided that (a) Agen
may not assign or transfer its rights under this Agreement to [*] or its successors or affiliates or to [*] or its successors or affiliates, (b) Synbiotics may not assign or transfer its license rights under the ‘046 Patent under Section 4 of
this Agreement to any other party, and (c) the Party shall, as a condition to such Permissible Assignment, cause the third party to agree to, accept and assume the obligations of this Agreement to the same extent as the Party engaging in such
transaction. Any purported assignment, sale, transfer, delegation or other disposition, except as permitted herein, shall be null and void. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the Parties
and their respective successors and permitted assigns. 
  
 33.
Force Majeure.  
  
 Neither Party
shall be held responsible for the failure or delay in performance herein to the extent such failure or delay is caused by any act of God or of the public enemy, war, compliance with changes in laws, governmental acts or regulations, in each case
only where the failure or delay due to compliance with changes in laws, governmental acts or regulations could not have been avoided by such party, including by seeking or maintaining appropriate licenses, permits, and other authorizations, fire,
flood, epidemic, strikes and labor interruption, accident, unusually severe weather or other causes similar to the foregoing beyond their reasonable control; but only as long as the affected Party uses commercially reasonable efforts to overcome
such event and resume performance as soon as possible. Any Party whose performance is affected by such force majeure shall promptly give notice to the other Party of such force majeure upon which such Party intends to rely to excuse its performance.
Such force majeure shall extend the time for performance day-for-day. 
  
 34. Promotional Activities. 
  
 Except as specified herein, nothing contained in this Agreement shall be construed as conferring any right to use in advertising, publicity or other promotional activities any name, trade name, trademark, or other designation (including any
contraction, abbreviation, or simulation of any of the foregoing) of the other Party without the express written approval of the other Party. Neither Party shall use any designation of the other Party in any promotional activity associated with this
Agreement without the express written consent of the other Party. 
  
 35. Performance. 
  
 Each Party
recognizes that the covenants herein and their continued performance as set forth in this Agreement are necessary and critical to protect the legitimate interests of the other Party, that the other Party would not have entered into this Agreement in
the absence of such covenants and the assurance of continued performance as set forth as set forth in this Agreement, and that the other Party’s breach or threatened breach of such covenants shall cause the first Party 
  

 24 

 irreparable harm and significant injury, the amount of which will be extremely difficult to estimate and ascertain, thus,
making any remedy at law or in damages inadequate. Therefore, each Party agrees that the other Party shall be entitled (but only pursuant to an Order of the District Court as contemplated in Section 15) to specific performance, an order restraining
any breach or threatened breach of such sections of this Agreement, and any other equitable relief the first Party deems appropriate, without the necessity of posting of any bond or security. This right shall be in addition to any other remedy
available to the first Party at law or equity. 
  
 36.
Effective Date 
  
 The Effective
Date of this Agreement is the last date on which it is signed by the last-to-sign Party. 
  

 25 

 IN WITNESS WHEREOF, Synbiotics and Agen have executed this Agreement by their respective duly authorized
representatives. 
  

					
	 	 	SYNBIOTICS CORPORATION
			
	Dated: June 25, 2004	 	 	 	 
			
	 	 	By:	 	 /s/ Paul R. Hays

	 	 	Paul R. Hays
	 	 	President
		
	 	 	SYNBIOTICS EUROPE SAS
			
	Dated: June 25, 2004	 	 	 	 
			
	 	 	By:	 	 /s/ Paul R. Hays

	 	 	Paul R. Hays
	 	 	Director
		
	 	 	AGEN BIOMEDICAL LIMITED
			
	Dated: June 25, 2004	 	 	 	 
			
	 	 	By:	 	 /s/ Donald Home

	 	 	Donald Home
	 	 	Director
		
	 	 	AGEN LIMITED
			
	Dated: June 25, 2004	 	 	 	 
			
	 	 	By:	 	 /s/ Donald Home

	 	 	Donald Home
	 	 	Director
		
	 	 	AGENIX LIMITED
			
	Dated: June 25, 2004	 	 	 	 
			
	 	 	By:	 	 /s/ Donald Home

	 	 	Donald Home
	 	 	Director and CEO

  

 26 

 Approved as to form: 
  

			
	PAUL HASTINGS JANOFSKY & WALKER, LLP.
		
	 By:
	 	 /s/ Douglas E. Olson

	 	 	 Douglas E. Olson

	
	 Dated: June 25, 2004

	
	 Attorneys for Synbiotics

	
	 MORRISON & FOERSTER, LLP

		
	 By:
	 	 /s/ David C. Doyle

	 	 	 David C. Doyle

	
	 Dated: June 25, 2004

	 Attorneys for Agen

  

 27 

 Exhibit A 
  

Certain ICT lateral flow diagnostic test kit products. 
  

1. Canine Heartworm Antigen Test Kits 
  
 3. Canine Parvo Virus Antigen Test Kits 
  
 4. Feline Heartworm Antibody Test Kits 
  
 2. Feline Leukemia Virus Antigen Test Kits 
  
 5. Feline Immunodeficiency Virus Test Kits 
  
 6. Feline Leukemia Virus Antigen and Feline Immunodeficiency Virus Combination Test Kits 
  
 For the avoidance of doubt, the foregoing ICT lateral flow diagnostic test kit products also include any successor products to,
modifications or new versions of any of the foregoing, and combinations of any of the foregoing with each other or other ICT lateral flow products. 
  

 28SECURITIES PURCHASE AGREEMENT

 Exhibit 10.1 
  
 SECURITIES PURCHASE AGREEMENT 
  

This Securities Purchase Agreement (this “Agreement”) is dated as of August 12, 2004, among Pro-Pharmaceuticals, Inc., a Nevada
corporation (the “Company”), and the purchasers identified on the signature pages hereto (each a “Purchaser” and collectively the “Purchasers”); and 
  
 WHEREAS, subject to the terms and conditions set forth in this Agreement and
pursuant to Section 4(2) of the Securities Act (as defined below), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchasers, and each Purchaser, severally and not jointly, desires to purchase from the Company in
the aggregate, up to $6,000,000 of Common Stock and Warrants to purchase shares of Common Stock. 
  
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agrees as follows: 
  
 ARTICLE I. 
 DEFINITIONS 
  
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement,
the following terms have the meanings indicated in this Section 1.1: 
  
 “Action” shall have the meaning ascribed to such term in Section 3.1(j). 
  
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled
by or is under common control with another Person as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as
such Purchaser will be deemed to be an Affiliate of such Purchaser. 
  
 “Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by
law or other governmental action to close. 
  
 “Closing” means the closing of the purchase and sale of the Common Stock and Warrants pursuant to Section 2.1. 
  
 “Closing Date” means the date of the Closing. 
  
 “Closing Price” means on any particular date (a) the last reported closing bid price per
share of Common Stock on such date on the Trading Market (as reported by Bloomberg L.P. at 4:15 PM (New York time) as the last reported closing bid price for regular session trading on such day), or (b) if there is no such price on such date, then
the closing bid price on the Trading Market on the date nearest preceding such date (as reported by Bloomberg L.P. at 4:15 PM (New York time) as the closing bid price for 

  

 1 

 
regular session trading on such day), or (c) if the Common Stock is not then listed or quoted on the Trading Market and if prices for the Common Stock are
then reported in the “pink sheets” published by the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so
reported, or (d) if the shares of Common Stock are not then publicly traded the fair market value of a share of Common Stock as determined by an appraiser selected in good faith by the Purchasers of a majority in interest of the Shares then
outstanding. 
  
 “Commission”
means the Securities and Exchange Commission. 
  
 “Common Stock” means the common stock of the Company, $0.001 par value per share, and any securities into which such common stock may hereafter be reclassified. 
  
 “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which
would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Stock. 
  
 “Company Counsel” means Perkins Smith & Cohen LLP with offices at One Beacon Street, Boston, Massachusetts 02108-3106. 
  
 “Disclosure Schedules” means the Disclosure Schedules concurrently delivered herewith. 
  
 “Effective Date” means the date that the
Registration Statement is first declared effective by the Commission. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “FW” shall mean Feldman Weinstein LLP with offices at 420 Lexington Avenue, New York, New York 10170-0002. 
  
 “Intellectual Property Rights” shall have
the meaning ascribed to such term in Section 3.1(o). 
  
 “Liens” means a lien, charge, security interest, encumbrance, right of first refusal or other restriction. 
  
 “Material Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b). 
  
 “Material Permits” shall have the meaning
ascribed to such term in Section 3.1(m). 
  
 “Per Share Purchase Price” equals $3.00, subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. 
  

 2 

 “Person” means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
  
 “Registration Statement” means a registration statement meeting the requirements set forth
in the Registration Rights Agreement and covering the resale by the Purchasers of the Shares and the Warrant Shares. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date of this Agreement, among
the Company and each Purchaser, in the form of Exhibit B hereto. 
  
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such Rule. 
  
 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h). 
  
 “Securities” means the Shares, the Warrants and the Warrant Shares. 
  
 “Securities Act” means the Securities Act
of 1933, as amended. 
  
 “Shares” means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement. 
  
 “Subscription Amount” means, as to each Purchaser and the Closing, the amounts set forth below such Purchaser’s
signature block on the signature page hereto, in United States dollars and in immediately available funds. 
  
 “Subsidiary” shall have the meaning ascribed to such term in Section 3.1(a). 
  
 “Trading Day” means (i) a day on which the
Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not listed on a Trading Market, a day on which the Common Stock is traded on the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock
is not quoted on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding to its functions of
reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day. 
  
 “Trading Market” means the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or the Nasdaq SmallCap Market. 
  

 3 

 “Transaction Documents” means this Agreement, the Registration Rights
Agreement, the Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder. 
  
 “Warrants” means the Common Stock Purchase Warrants, in the form of Exhibit C, issuable to the Purchasers at
Closing, which warrants shall be exercisable on the 6 month anniversary of the date of issuance and have an exercise price equal to $4.20 and a term of exercise of 5 years. 
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

  
 ARTICLE II. 
 PURCHASE AND SALE 
  
 2.1 Closing. At the Closing, the Purchasers shall purchase, severally and not jointly, and the Company shall issue and sell, in the aggregate, up
to $6,000,000 of Common Stock and Warrants to purchase shares of Common Stock on the Closing Date. Each Purchaser shall purchase from the Company, and the Company shall issue and sell to each Purchaser, a number of Shares equal to such
Purchaser’s Subscription Amount divided by the Per Share Purchase Price. Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall occur at the offices of FW, or such other location as the parties shall mutually agree.

  
 2.2 Closing Conditions. 
  
 (a) At the Closing (unless otherwise specified below) the
Company shall deliver or cause to be delivered to each Purchaser the following: 
  
 (i) this Agreement duly executed by the Company; 
  

(ii) within 3 Business Days of the Closing Date, a certificate evidencing a number of Shares equal to such Purchaser’s
Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser; 
  
 (iii) within 3 Business Days of the Closing Date, a Warrant, registered in the name of such Purchaser, pursuant to which such Purchaser
shall have the right to acquire up to the number of shares of Common Stock equal to 100% of the Shares to be issued to such Purchaser at such Closing; 
  
 (iv) the Registration Rights Agreement duly executed by the Company; and 
  
 (v) a legal opinion of Company Counsel, substantially in the form of Exhibit A attached hereto.

  
 (b) At the Closing, each Purchaser shall
deliver or cause to be delivered to the Company the following: 
  
 (i) this Agreement duly executed by such Purchaser; 
  

 4 

 (ii) such Purchaser’s Subscription Amount as to such Closing by wire transfer to the
account of the Company as provided to the Purchasers in writing prior to the Closing Date; and 
  
 (iii) the Registration Rights Agreement duly executed by such Purchaser. 
  
 (c) All representations and warranties of the other party contained herein shall remain true and correct as
of the Closing Date and all covenants of the other party shall have been performed if due prior to such date. 
  
 (d) As of the Closing Date, there shall have been no Material Adverse Effect with respect to the Company since the date hereof.

  
 (e) From the date hereof to the Closing Date,
trading in the Common Stock shall not have been suspended by the Commission (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the
Closing Date, trading in securities generally as reported by Bloomberg Financial Markets shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any
Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities. 
  
 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES

  
 3.1 Representations and Warranties of the Company.
Except as set forth under the corresponding section of the Disclosure Schedules delivered concurrently herewith, the Company hereby makes the following representations and warranties as of the date hereof and as of the Closing Date to each
Purchaser: 
  
 (a) Subsidiaries. The
Company has no direct or indirect subsidiaries except as set forth in an SEC Report, namely the Annual Report on Form 10-K for the year ended December 31, 2003 and filed March 30, 2004 (the “2004 Form 10-K”) (each, a
“Subsidiary”). If the Company has no subsidiaries, any references to Subsidiaries in the Transaction Documents shall be disregarded. The Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and
clear of Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights. 
  
 (b) Organization and Qualification. Each of the
Company and the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite corporate power and
authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature 

  

 5 

 
of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, would not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business
or financial condition of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any
of (i), (ii) or (iii), a “Material Adverse Effect”). 
  
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of
the Company and no further action is required by the Company in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will
constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) with respect to the indemnification provisions set
forth in the Registration Rights Agreement, as limited by public policy. 
  
 (d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i)
conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that
with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or
other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result
in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.

  
 (e) Filings, Consents and Approvals.
The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection
with the execution, delivery and performance by the Company of the Transaction Documents, other than (a) the filing with the Commission of 

  

 6 

 
the Registration Statement, the application(s) to each Trading Market for the listing of the Shares and Warrant Shares for trading thereon in the time and
manner required thereby, and applicable Blue Sky filings and (b) such as have already been obtained or such exemptive filings as are required to be made under applicable securities laws. 
  
 (f) Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in
accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock
issuable pursuant to this Agreement and the Warrants. 
  
 (g) Capitalization. The capitalization of the Company is as described in the Company’s most recent periodic report filed with the Commission. The Company has not issued any capital stock since such filing other than pursuant to
the exercise of employee stock options under the Company’s stock option plans and pursuant to the conversion or exercise of Common Stock Equivalents outstanding on the date hereof. No Person has any right of first refusal, preemptive right,
right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities and except for employee stock options under the Company’s
stock option plans or a plan approved by the Board of Directors of the Company, or as disclosed in SEC Reports, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issue and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other
than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. 
  
 (h) SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it
under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material) (the
foregoing materials, including the exhibits thereto, being collectively referred to herein as the “SEC Reports” and, together with the Disclosure Schedules to this Agreement, the “Disclosure Materials”) on a timely
basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of 

  

 7 

 
filing. Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the
periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in
all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to
normal, immaterial, year-end audit adjustments. 
  
 (i) Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or that
could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method
of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the
Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of
information. 
  
 (j) Litigation. Except as
disclosed in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which has or, if there were an unfavorable decision,
could have or reasonably be expected to result in, a Material Adverse Effect. Except as disclosed in the SEC Reports, neither the Company nor any Subsidiary, nor, to the knowledge of the Company, any director or officer thereof, is or has been the
subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the
Company or any Subsidiary under the Exchange Act or the Securities Act. 
  
 (k) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a
Material Adverse Effect. 
  
 (l)
Compliance. Except as disclosed in the SEC Reports, neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has 

  

 8 

 
occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its
properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any
governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in the case of clauses (i), (ii) and (iii) as would not have or reasonably be expected to result in a Material Adverse
Effect. 
  
 (m) Regulatory Permits. The
Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits would not have or reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit. 
  
 (n) Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries, taken
as a whole, and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, taken as a whole, in each case free and clear of all Liens, except for Liens as do not materially
affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is
neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in
material compliance. 
  
 (o) Patents and
Trademarks. To the knowledge of the Company and each Subsidiary, the Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses
and other similar rights that are material for use in connection with their respective businesses at present as described in the SEC Reports and which the failure to so have could have or reasonably be expected to result in a Material Adverse Effect
(collectively, the “Intellectual Property Rights”). Except as disclosed in the 2004 Form 10-K, neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the Company or any
Subsidiary violates or infringes the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable. 
  
 (p) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it 

  

 9 

 
will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business without a significant increase in cost. 
  
 (q) Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the
Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $60,000 other than (a) for payment of salary or consulting fees for services rendered, (b) reimbursement for expenses incurred on behalf of the
Company and (c) for other employee benefits, including stock option agreements under any stock option plan of the Company. 
  
 (r) Internal Accounting Controls. The Company and each of its Subsidiaries maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such
disclosure controls and procedures to ensure that material information relating to the Company, including its Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the
Company’s Form 10-K or 10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls and procedures as of December 31, 2003 (such date, the
“Evaluation Date”). The Company presented in such Form 10-K for the year ended December 31, 2003 the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations
as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company’s internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15 and 15d-15) that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. 
  
 (s) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Purchasers shall have no obligation with respect to any fees or with respect to any claims
made by or on behalf of other Persons for fees of a 

  

 10 

 
type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement. 
  
 (t) Private Placement. Assuming the accuracy of the
Purchasers’ representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of
the Securities hereunder does not contravene the rules and regulations of the Trading Market. 
  
 (u) Investment Company. The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the
Investment Company Act of 1940, as amended. 
  
 (v) Registration Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
  
 (w) Form S-3 Eligibility. The Company is eligible to register the resale of its Common Stock by the
Purchasers under Form S-3 promulgated under the Securities Act. 
  
 (x) Listing and Maintenance Requirements. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to
the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such
listing and maintenance requirements. 
  
 (y)
Application of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as
a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation the Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities. 
  
 (z) Disclosure. The
Company confirms that, neither the Company nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute material, non-public information. The
Company understands and confirms that the Purchasers will rely on the foregoing representations and covenants in effecting transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and
the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, furnished by or on behalf of the Company are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 
  

 11 

 (aa) No Integrated Offering. Neither the Company, nor any of its Affiliates, nor
any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with
prior offerings (other than the “PIPE” transaction closed on April 7, 2004 in which Rodman & Renshaw, Inc. acted as placement agent and disclosed in the Company’s most recent SEC Report (the “2004 Transaction”))
by the Company for purposes of the Securities Act or any applicable shareholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the
Company are listed or designated. 
  
 (bb)
Solvency. Based on the financial condition of the Company as of the Closing Date, (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing
debts and other liabilities (including known contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to
be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof, and including the anticipated proceeds of
the sale of the Securities; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient
to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be
payable on or in respect of its debt). 
  
 3.2 Representations
and Warranties of the Purchasers. Each Purchaser hereby, for itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date to the Company as follows: 
  
 (a) Organization; Authority. Such Purchaser is an
entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or similar
action on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding
obligation of such Purchaser, enforceable against it in accordance with its terms. 
  
 (b) General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or
other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 
  

 12 

 (c) No Public Sale or Distribution. Such Purchaser is (i) acquiring the Shares and
(ii) upon exercise of the Warrants will acquire the Warrant Shares, for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the
Securities Act; provided, however, that by making the representations herein, such Purchaser does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any
time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser does not have any agreement or
understanding, directly or indirectly, with any Person to distribute any of the Securities. 
  
 (d) Accredited Investor Status. Such Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
  
 (e) Reliance on Exemptions. Such Purchaser understands that the Shares and Warrants are being offered and sold to it in reliance on
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Common Stock and Warrants. 
  
 (f) Information. Such Purchaser and its advisors, if
any, have been furnished with all publicly available materials relating to the business, finances and operations of the Company and such other publicly available materials relating to the offer and sale of the Shares and Warrants as have been
requested by such Purchaser. Such Purchaser and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by such Purchaser or its advisors,
if any, or its representatives shall modify, amend or affect such Purchaser’s right to rely on the Company’s representations and warranties contained herein. Such Purchaser understands that its investment in the Shares and Warrants
involves a high degree of risk. Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Shares and Warrants. 
  
 (g) No Governmental Review. Such Purchaser
understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares and Warrants or the fairness or suitability of the investment in the
Shares and Warrants nor have such authorities passed upon or endorsed the merits of the offering of the Shares and Warrants. 
  
 (h) Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters, including investing in biotechnology companies, so as to be 

  

 13 

 
capable of evaluating the merits and risks of the prospective investment in the Shares and Warrants, and has so evaluated the merits and risks of such
investment. Such Purchaser is able to bear the economic risk of an investment in the Shares and Warrants and, at the present time, is able to afford a complete loss of such investment. 
  
 The Company acknowledges and agrees that each Purchaser does not make or has not made any representations or warranties with
respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2. 
  
 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES 
  
 4.1 Transfer Restrictions. 
  
 (a) The Securities may only be disposed of in compliance
with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement, to the Company, to an Affiliate of a Purchaser, in connection with a pledge as contemplated in Section
4.1(b), or in connection with a sale pursuant to Rule 144, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of
this Agreement and shall have the rights of a Purchaser under this Agreement and the Registration Rights Agreement. 
  
 (b) The Purchasers agree to the imprinting, so long as is required by this Section 4.1(b), of a legend on any of the Securities in the
following form: 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
  

 14 

 The Company acknowledges and agrees that a Purchaser may from time to time pledge
pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the
Securities Act and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal
opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such
reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including the preparation and filing of any required prospectus supplement under Rule 424(b)(3)
under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders thereunder. 
  
 (c) Certificates evidencing the Shares and Warrant Shares shall not contain any legend (including the legend set forth in Section 4.1(b)),
(i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Shares or Warrant Shares pursuant to Rule 144, or (iii) if such
Shares or Warrant Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the
Commission). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly after the Effective Date if required by the Company’s transfer agent to effect the removal of the legend hereunder. If all
or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Warrant Shares, such Warrant Shares shall be issued free of all legends. The Company agrees that following the Effective
Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than five (5) Trading Days following the delivery by a Purchaser to the Company or the Company’s transfer agent of a certificate representing
Shares or Warrant Shares, as the case may be, issued with a restrictive legend, deliver or cause to be delivered to such Purchaser a certificate representing such Securities that is free from all restrictive and other legends. The Company may not
make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. 
  

(d) In addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as liquidated damages
and not as a penalty, for each $1,000 of Shares or Warrant Shares (based on the Closing Price of the Common Stock on the date such Securities are submitted to the Company’s transfer agent) subject to Section 4.1(c), $10 per Trading Day
(increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after such fifth Trading Day until such certificate is delivered. Nothing herein shall limit such Purchaser’s right to pursue
actual damages for the Company’s failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser 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. 
  

 15 

 (e) Each Purchaser, severally and not jointly, agrees that the removal of the restrictive
legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance that the Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act,
including any applicable prospectus delivery requirements, or an exemption therefrom. 
  
 4.2 Furnishing of Information. As long as any Purchaser owns Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act. Upon the request of any such holder of Securities, the Company shall deliver to such holder a written certification of a duly authorized officer as to whether it
has complied with the preceding sentence. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance
with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. The Company further covenants that it will take such further action as any holder of Securities may reasonably request, all to the extent
required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144. 
  
 4.3 Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in
respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the
Purchasers or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market. 
  
 4.4 Participation in Future Financing. From the date hereof until 12 months after the Effective Date, upon any financing by the Company of its
Common Stock or Common Stock Equivalents (a “Subsequent Financing”), each Purchaser shall have the right to participate in up to 33.33% of such Subsequent Financing (the “Participation Maximum”). At least five
Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser if it
wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”). Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company
shall promptly, but no later than one Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the
amount of proceeds intended to be raised thereunder, the Person with whom such Subsequent Financing is proposed to be effected, and attached to which shall be a term sheet or similar document relating thereto. If by 6:30 p.m. (New York City time) on
the second Trading Day after all of the Purchasers have received the Pre-Notice, notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less
than the total amount of the Subsequent Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms and to the Persons set forth in the Subsequent Financing Notice. If the Company receives no notice from a
Purchaser as of such fifth Trading Day, such Purchaser shall be deemed to have notified the Company that it does not elect to participate. The 

  

 16 

 
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of participation set forth above
in this Section 4.4, if the Subsequent Financing subject to the initial Subsequent Financing Notice is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within 60 Trading Days after the date of the initial
Subsequent Financing Notice. In the event the Company receives responses to Subsequent Financing Notices from Purchasers seeking to purchase more than the aggregate amount of the Subsequent Financing, each such Purchaser shall have the right to
purchase their Pro Rata Portion (as defined below) of the Participation Maximum. “Pro Rata Portion” is the ratio of (x) the Subscription Amount of Securities purchased by a participating Purchaser and (y) the sum of the aggregate
Subscription Amount of all participating Purchasers. 
  
 4.5
Securities Laws Disclosure; Publicity. The Company shall, by 8:30 a.m. Eastern time on the Business Day following the Closing Date, file a Current Report on Form 8-K or issue a press release, disclosing the transactions contemplated hereby
and make such other filings and notices in the manner and time required by the Commission. The Company and each Purchaser shall consult with each other in issuing any press releases with respect to the transactions contemplated hereby, and neither
the Company nor any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each
Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with
prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection with the registration statement contemplated by the Registration Rights Agreement and (ii) to the extent such
disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under subclause (i) or (ii). 
  
 4.6 Shareholders Rights Plan. No claim will be made or enforced by the
Company or any other Person that any Purchaser is an “Acquiring Person” under any shareholders rights plan or similar plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the
provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers. 
  
 4.7 Non-Public Information. The Company covenants and agrees that neither it nor any other Person acting on its
behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the Company. 
  
 4.8 Use of Proceeds. Except as set forth on Schedule 4.8 attached
hereto, the Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes and not for the satisfaction of any portion of the Company’s debt (other than payment of trade payables in the ordinary course
of the Company’s business and prior practices), to 

  

 17 

 
redeem any Company equity or equity-equivalent securities or to settle any outstanding litigation. 
  
 4.9 Reimbursement. If any Purchaser becomes involved in any capacity
in any Proceeding (as defined in the Registration Rights Agreement) by or against any Person who is a stockholder of the Company (except as a result of sales, pledges, margin sales and similar transactions by such Purchaser to or with any current
stockholder), solely as a result of such Purchaser’s acquisition of the Securities under this Agreement, the Company will reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation
and travel in connection therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the Company may otherwise have, shall
extend upon the same terms and conditions to any Affiliates of the Purchasers who are actually named in such action, proceeding or investigation, and partners, directors, agents, employees and controlling persons (if any), as the case may be, of the
Purchasers and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Purchasers and any such Affiliate and any such Person. The Company also agrees
that neither the Purchasers nor any such Affiliates, partners, directors, agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims on behalf of or in right of the Company solely as a result of
acquiring the Securities under this Agreement. 
  
 4.10
Indemnification of Purchasers. The Company will indemnify and hold the Purchasers and their directors, officers, shareholders, partners, employees and agents (each, a “Purchaser Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to: (a) any misrepresentation, breach or inaccuracy, or any allegation by a third party that, if true, would constitute a breach or inaccuracy, of any of the representations, warranties, covenants or agreements made by the
Company in this Agreement or in the other Transaction Documents; or (b) any cause of action, suit or claim brought or made against such Purchaser Party and arising solely out of or solely resulting from the execution, delivery, performance or
enforcement of this Agreement or any of the other Transaction Documents and without causation by any other activity, obligation, condition or liability pertaining to such Purchaser or a related Purchaser Party. The Company will reimburse such
Purchaser for its reasonable legal and other expenses (including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses are incurred. 
  
 4.11 Reservation of Common Stock. As of the date hereof, the Company
has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement and
Warrant Shares pursuant to the Warrants. 
  
 4.12 Listing of
Common Stock. The Company hereby agrees to use commercially reasonable efforts to maintain the listing of the Common Stock on its current Trading Market, and as soon as reasonably practicable following the Closing (but not later than the earlier
of the Effective Date and the first anniversary of the Closing Date) to list the applicable Shares and 

  

 18 

 
Warrant Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it
will include in such application the Shares and the Warrant Shares, and will take such other action as is necessary or desirable in the opinion of the Purchasers to cause the Shares and Warrant Shares to be listed on such other Trading Market as
promptly as possible. The Company will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Trading Market. 
  
 4.13
Future Financings. From the date hereof until 10 Trading Days after the Effective Date, other than as contemplated by this Agreement, neither the Company nor any Subsidiary shall issue or sell any Common Stock or Common Stock Equivalents.
Notwithstanding anything herein to the contrary, the 10 Trading Day period set forth in this Section 4.13 shall be extended for the number of Trading Days during such period in which (y) trading in the Common Stock is suspended by any Trading
Market, or (z) following the Effective Date, the Registration Statement is not effective or the prospectus included in the Registration Statement may not be used by the Purchasers for the resale of the Shares and the Warrant Shares. Notwithstanding
anything to the contrary herein, this Section 4.13 shall not apply to the following (a) the granting of options to employees, officers and directors of the Company pursuant to any stock option plan duly adopted by a majority of the non-employee
members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose, or (b) the exercise of any security issued by the Company in connection with the offer and sale of
the Company’s securities pursuant to this Agreement, or (c) the exercise of or conversion of any convertible securities, options or warrants issued and outstanding on the date hereof, provided such securities have not been amended since the
date hereof, or (d) acquisitions or strategic investments, the primary purpose of which is not to raise capital. 
  
 4.14 Equal Treatment of Purchasers. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any
provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the
Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers equally as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Securities or otherwise. 
  
 4.15
Compliance with the Securities Laws. Each Purchaser agrees to comply with the requirements of Regulation M, if applicable, with respect to the sale of the Shares and Warrant Shares by the Purchaser. Each Purchaser hereby confirms its
understanding that it may not cover short sales made prior to the Effective Date with Shares or Warrant Shares registered for resale on the Registration Statement. Each Purchaser acknowledges that it does not intend to cover short positions made by
it before the Effective Date with Shares or Warrant Shares held by it and registered on the Registration Statement. 
  

 19 

 ARTICLE V. 
 MISCELLANEOUS 
  
 5.1 Fees and
Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of
this Agreement. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Securities. 
  
 5.2 Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 

 
 5.4 Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if a Trading Day and if such notice or communication is delivered via facsimile at
the facsimile number specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on that Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number on the signature pages attached hereto on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on a Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. 
  
 5.5 Amendments; Waivers. No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment, by the Company and Purchasers of at least 75% of the Shares and Warrant Shares (on an exercised basis) then held by the Purchasers or, in the case of a waiver, by the
party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 
  
 5.6 Construction. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party. 
  
 5.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of each Purchaser. Any Purchaser may assign any or all of its rights under this Agreement to any 

  

 20 

 
Person, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to the
“Purchasers”. 
  
 5.8 No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Sections 4.9 and 4.10. 
  
 5.9 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether
brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto (including its affiliates, agents, officers, directors and employees) hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of a
Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or
proceeding. 
  
 5.10 Survival. The representations,
warranties, agreements and covenants contained herein shall survive the Closing and delivery of the Shares. 
  
 5.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by all parties and delivered so that the Company has counterparts signed by all Purchasers and each Purchaser has a counterpart signed by the Company, it being understood that
parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile signature page were an original thereof. 
  

 21 

 5.12 Severability. If any provision of this Agreement is held to be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
  
 5.13 Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of
such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such
replacement Securities. 
  
 5.14 Remedies. In addition to
being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a
remedy at law would be adequate. 
  
 5.15 Payment Set
Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any
other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be
satisfied shall, to the extent permissible under applicable law, be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
  
 5.16 Independent Nature of Purchasers’ Obligations and Rights.
The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser
under any Transaction Document. Nothing contained herein or in any Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document. Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party
in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For reasons of administrative convenience only, Purchasers and their respective
counsel have chosen to communicate with the Company through FW. FW does not represent any of the Purchasers in this transaction but only the placement agent, Rodman & Renshaw, Inc. The Company has elected to provide all Purchasers with the same
terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Purchasers. 
  
 (Signature Page Follows) 
  

 22 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

											
	PRO-PHARMACEUTICALS, INC.	 	 	 	 
					
	By:	 	 	 	 	 	 	 	 Address for Notice:

	 Name:
 Title:
	 	 David Platt
 President and Chief Executive Officer
	 	 	 	 	 	 189 Wells Avenue
 Newton, Massachusetts
02459
 Attn: President
 Tel: 617.559.0033
 Fax: 617.928.3450

  
 With copy to (which shall not
constitute notice): 
  
 Perkins Smith & Cohen LLP 
 One Beacon Street 
 Boston, MA 02108 
 Attn: Jonathan C. Guest 
 Tel: 617.854.4000 
 Fax: 617.854.4040 
  
 [SIGNATURE PAGE CONTINUES] 
  

 23 

 [PURCHASER SIGNATURE PAGES TO PRW SPA] 
  
 IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 
  
 Name of Investing
Entity:
                                        
                                        
                                        
     
 Signature of Authorized Signatory of Investing entity:
                                        
                                        
                                 
 Name of Authorized Signatory:
                                        
                                        
                                        
             
 Title of Authorized Signatory:
                                        
                                        
                         
 e-mail
address:
                                        
         
 Fax Number
                                        
                 
 Address for Notice of Investing Entity: 
  
 Address for Delivery of Securities for Investing Entity (if not same as above): 

 
 Subscription Amount:
$                             
  

 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]