Document:

ex10_2.htm

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

This employment agreement (the "Agreement") is made and entered into effective as of January 1, 2012 (the “Effective Date”) by and between Respect Your Universe, Inc. (the "Company") and Christopher Martens (the "Employee").

RECITALS

The Company desires to employ the Employee, and Employee is willing to be employed by Company, on the terms and subject to the conditions set forth in this Agreement.

In consideration of the mutual covenants and promises of the parties, the Company and Employee covenant and agree as follows:

AGREEMENT

1. Duties

(a)During the term of this Agreement, Employee will be employed by the Company to serve as the Chief Executive Officer (“CEO”) of the Company, including being the “Principal Executive Officer” for purposes of certification of the Company’s financial statements and quarterly and annual reports as filed with the U.S. Securities and Exchange Commission. The Employee will devote such amount of business time to the conduct of the business of the Company as may be reasonably required to effectively discharge Employee's duties under this Agreement and, subject to the supervision and direction of the Company's Board of Directors (the "Board"), will perform those duties and have such authority and powers as are customarily associated with the office of a CEO of an apparel Company engaged in a business that is similar to the business of the Company. Employee shall report directly to the Chairman of the Board.

(b)Employee will be required to perform services under this Agreement primarily at the Company's office in Portland, OR, provided, however, that Company may, from time to time, require Employee to travel temporarily to other locations on the Company's business. 

(c)Notwithstanding the foregoing, nothing in this Agreement is to be construed as prohibiting Employee from continuing to serve as a director, officer or member of various professional, charitable and civic organizations in the same manner as immediately prior to the execution of this Agreement.

2. Term of Employment 

The term of employment of Employee by the Company will commence on the Effective Date and will extend until Employee’s resignation or termination.

3. Salary, Benefits and Other Compensation 

 

  

  

  

 

3.1 Base Salary

Employee’s base annual salary shall be $180,000, subject to any increases in the discretion of the Board of Directors.

3.2  Stock Options

Company agrees to issue to Employee an option to purchase 100,000 shares of the Company’s common stock per year during the term of this Agreement from, and pursuant to the terms of, its RYU 2011 Incentive Award Plan and related option agreement and notice. Such options shall be issued on the first day of each year commencing January 1, 2012 (or as close to this date as practical), and the exercise price shall be the closing price of RYUN common stock on the date of issuance. Such option will expire in ten years and the option shares shall vest over four years.

3.3 Vacation and Holidays

During the term of this Agreement, Employee will be entitled to vacation time and holidays consistent with the Company’s policy.

3.4 Health and Retirement Benefits

During the term of this Agreement, consistent with general Company employee benefits programs, Employee shall be entitled to health and retirement benefits as may be adopted by the Company and in place for the general benefit of Company employees during the term of this Agreement. As of the commencement of this Agreement, the Company has no retirement benefits in place, but is pursuing qualification for available programs.

3.5 Expenses

During the term of this Agreement, Company will reimburse Employee for Employee’s reasonable out-of-pocket expenses incurred in connection with Company’s business, including travel expenses, food, and lodging while away from the Company offices. Expenses shall be reviewed and approved by the Board Chairman, or a board member designated by the Chairman.

4. Severance Compensation 

4.1 Termination by Company Without Cause; Resignation for Good Reason Following a Change in Control

(a)In the event Employee’s employment is terminated by the Company for any reason other than (1) “For Cause” (as defined in Section 4.4 below); or (2) due to the death or disability of the Employee, as severance Employee shall be paid a sum of $180,000 (“Severance”). 

(b)In the event there is a “Change in Control” (as defined below) of the Company and as a consequence of such Change in Control, Employee resigns for “Good Reason” (as defined below) within twelve (12) months of such Change of Control, the Employee shall be paid the Severance.

 

  

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(i)       “Change of Control.” For purposes of this Section 4, “Change of Control” shall mean: (1) the purchase by a third party of over 50% of the Company’s stock; (2) a merger or consolidation, after which the Company’s prior shareholders no longer control the company; or (3) the sale of all or substantially all of the Company’s assets.

 

(ii)       “Good Reason.”For purposes of this Section 4, “Good Reason” shall mean a resignation by Employee of his employment with the Company, as a result of any of the following:  

A. A meaningful and detrimental alteration of his position, his title, or the nature or status of his responsibilities (including his reporting responsibilities) from those in effect immediately prior to the Change in Control.   For purposes of this clause (a), a meaningful and detrimental alteration shall exist if, on or after the Change in Control, Employee does not hold the position of Chief Executive Officer of the Company (or the surviving entity resulting from a merger or consolidation of the Company with another entity (the “Surviving Entity”) or if there is any adverse change on or after the Change in Control in his title, position or reporting responsibilities;

 

B.A reduction by the Company in Employee’s annual base salary as in effect immediately prior to the Change in Control or as the same may be increased from time to time thereafter;

 

C.The relocation of the office where Employee is employed as of the Change in Control to a location which is more than seventy-five (75) miles away from such office, or a requirement that Employee be based more than seventy-five (75) miles away from his office as of the Change in Control..

4.2 Termination by Company For Cause

In the event Employee’s employment is terminated by the Company “For Cause” (as defined in Section 4.4 below), Employee shall not be entitled to any Severance.

4.3 Resignation by Employee for any Reason

In the event Employee resigns his employment with Company for any reason, other than a resignation for Good Reason in Section 4.1, Employee or Employee’s estate will not be entitled to any Severance. 

4.4 Definitions

For purposes of this Agreement the following terms have the following meanings:

(a) “For Cause” means termination by Company of Employee’s employment (i) by reason of Employee’s willful dishonesty towards, fraud upon, or deliberate injury or attempted injury to, the Company, (ii) by reason of Employee’s material breach of this Agreement or (iii) by reason of Employee’s intentional misconduct with respect to the performance of Employee’s duties under this Agreement; provided, however, that no such termination will be deemed to be a termination For Cause unless the Company has provided Employee with written notice of what it reasonably believes are the grounds for any termination For Cause and Employee fails to take appropriate remedial actions during the ten (10) day period following receipt of such written notice.

 

  

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5. Confidentiality

Because of Employee’s employment by Company, Employee will have access to trade secrets and confidential information about Company, its products, its customers, and its methods of doing business (the “Confidential Information “). During and after the termination of Employee’s employment by the Company, Employee may not directly or indirectly disclose or use any such Confidential Information; provided, that Employee will not incur any liability for disclosure of information which (a) is required in the course of Employee’s employment by the Company, (b) was permitted in writing by the Board or (c) is within the public domain or comes within the public domain without any breach of this Agreement.

6. Miscellaneous 

6.1 Waiver

The waiver of any breach of any provision of this Agreement will not operate or be construed as a waiver of any subsequent breach of the same or other provision of this Agreement.

6.2 Entire Agreement; Modification

Except as otherwise provided in the Agreement, this Agreement represents the entire understanding among the parties with respect to the subject matter of this Agreement, and this Agreement supersedes any and all prior understandings, agreements, plans, and negotiations, whether written or oral, with respect to the subject matter hereof, including without limitation, any understandings, agreements, or obligations respecting any past or future compensation, bonuses, reimbursements, or other payments to Employee from Company. All modifications to the Agreement must be in writing and signed by the party against whom enforcement of such modification is sought.

6.3 Notice

All notices and other communications under this Agreement must be in writing and must be given by personal delivery, email, fax, or first class mail, and will be deemed to have been duly given upon receipt if personally delivered, three (3) days after mailing, if mailed, or twelve (12) hours after transmission, if delivered by email or fax, to the respective persons named below:

If to Company Attention: Chairman of the Board 

If to Employee: Christopher Marten

 

  

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Any party may change such party’s address for notices by notice duly given pursuant to this Section.

6.4 Headings

The Section headings of this Agreement are intended for reference and may not by themselves determine the construction or interpretation of this Agreement.

6.5 Governing Law

This Agreement is to be governed by and construed in accordance with the laws of the State of Nevada. Venue shall be in Clark County.

6.6 Attorney’s Fees

If either party brings an action for any relief or collection against the other party, declaratory or otherwise, arising out of the arrangement described in this Agreement, the losing party shall pay to the prevailing party a reasonable sum for attorneys’ fees and costs actually incurred in bringing such action, including fees incurred at trial, on appeal and on any review therefrom, all of which shall be deemed to have accrued upon the commencement of such action and shall be paid whether or not such action is prosecuted to judgment. Any judgment or order entered in such action shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such judgment.

6.7 Survival of Company’s Obligations

This Agreement will be binding on, and inure to the benefit of, the executors, administrators, heirs, successors, and assigns of the parties; provided, however, that except as expressly provided in this Agreement, this Agreement may not be assigned either by Company or by Employee.

6.8 Counterparts

This Agreement may be executed in one or more counterparts, all of which taken together will constitute one and the same Agreement.

6.9 Enforcement

If any portion of this Agreement is determined to be invalid or unenforceable, that portion of this Agreement will be adjusted, rather than voided, to achieve the intent of the parties under this Agreement.

6.10 Indemnification

The Company agrees that it will indemnify and hold the Employee harmless to the fullest extent permitted by applicable law from and against any loss, cost, expense or liability resulting from or by reason of the fact of the Employee’s employment hereunder, whether as an officer, employee, agent, fiduciary, director or other official of the Company, except to the extent of any expenses, costs, judgments, fines or settlement amounts which result from conduct which is determined by a court of competent jurisdiction to be knowingly fraudulent or deliberately dishonest or to constitute some other type of willful misconduct.

 

  

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6.11 Board of Director Role.

Upon execution of this Agreement, the Board of Directors of the Company agrees to appoint Employee to fill a vacancy on the Board of Directors of the Company, to serve thereafter at the discretion of the Company’s shareholders in accordance with the Company’s bylaws and Nevada law.

6.12 Board of Director Resignation.

Upon termination or resignation of employment for any reason, Employee shall be deemed to have resigned from the Company’s Board of Directors.

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of January 1, 2012.

RESPECT YOUR UNIVERESE, INC.

 

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Kristian Andresen

	 	 	 	 
	Its: Chairman and Secretary	 	 	 	 
	 	 	 	 	 
	Date:	 	 	 	 	 	 

 

EMPLOYEE

 

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Christopher Martens	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Date:	 	 	 	 	 	 

 

 

 

 

 

7EXCLUSIVE LICENSE AGREEMENT

 

 

THIS AGREEMENT effective January 18th
, 2012 (the “Effective Date”) is entered into by and between Amarantus BioSciences, Inc. a Delaware corporation, (“AMBS”),
and Power 3 Medical Products, Inc. (“Power 3”). The parties, intending to be legally bound, agree as follows:

 

SECTION 1 – LICENSE

 

1.1Grant of Exclusive License.
For the term of this Agreement, Power 3 hereby grants to AMBS an exclusive worldwide license to develop, manufacture, have manufactured,
use, market, sell and import medical devices and methods under the Power 3 PK IP, including but not limited to the items of intellectual
property detailed on Schedule A hereto, and to use all trademarks and copyrights related to the Power 3 PK IP in furtherance
of such activities.

 

1.1(a)Grant of Non-Exclusive License.
For the term of this Agreement, Power 3 hereby grants to AMBS a non-exclusive, royalty-free, fully paid-up world-wide license to
Power 3 know-how, patents and patent applications which relate to medical devices and methods for the treatment of Neurodegenerative
disease as it relates to Parkinson’s disease.

 

1.1(b)Definitions. 

 

For purposes of this Agreement:

 

(1)“Know-How
Rights” shall mean all trade secret and other know-how rights in and to all data, information, compositions and other
technology (including, but not limited to, formulae, procedures, protocols, techniques and results of experimentation and testing)
in existence on the Effective Date controlled by Power 3 or its affiliates or arising thereafter to the extent necessary or useful
for AMBS to make, have made, use, develop, sell, exploit or seek regulatory approval to market a composition, a diagnostic or service,
or to practice any method or process, at any time claimed or disclosed in any issued patent or pending patent application within
the Patent Rights or which otherwise relates to the Technology.

(2)“Patent
Rights” shall mean (a) all patents and patent applications in any country of the world that claim or cover the Technology
to the extent Power 3 or its affiliates heretofore or hereafter have an ownership or (sub)licensable interest therein, (b) all
divisions, continuations, continuations-in-part, that claim priority to, or common priority with, the patent applications described
in clauses (a) and (b) above or the patent applications that resulted in the patents described in clauses (a) and (b) above, and
(c) all patents that have issued or in the future issue from any of the foregoing patent applications, including utility, model
and design patents and certificates of invention, together with any reissues, renewals, extensions, substitutes or additions thereto.

    	 

    	 

    

 (3)“Power
3 PK IP” shall mean the Patent Rights and the Know-How.

(4)“Power
3 Neurodegenerative disease IP” or shall mean the Patent Rights and Know-How.

(5)“Technology”
shall mean compositions, devices, technology, data and information comprising, responsible for, resulting from or relating to use
of the biomarkers of the PK IP and Power 3 Neurodegenerative disease IP and the tests of the same for the purpose of measuring
such biomarkers, together with all improvements and enhancements thereto, all modifications and derivatives thereof, all products
comprising any of the foregoing, and all methods of manufacture and uses of any of the foregoing, as it relates to the PK IP and
Power 3 Neurodegenerative disease IP.

1.2IP Development. All medical
devices and all additional intellectual property pertaining to Parkinson’s disease diagnosis, including all additional patents,
applications, trademarks, copyrights, inventions, trade secrets, and know-how developed by AMBS or Power 3 during the term of this
Agreement relating to or based in whole or in part on the Power 3 PK IP shall be the sole and exclusive property of the developing
party. All medical devices and all additional Intellectual Property pertaining to Parkinson’s disease diagnosis conceived
or developed by Power 3 during the term of this Agreement, if any, shall be included within the scope of the exclusive license
granted hereunder to AMBS.

 

1.3Term of Agreement. The
initial term of this Agreement shall be 1 year from the date hereof, renewable upon mutual written agreement of the parties.

 

1.4Consideration. In consideration
for the licenses granted hereunder, the validation studies and technology transfer, AMBS shall issue to Power 3 $500,000 worth
of AMBS common stock, priced at the closing price of the common stock on January 23rd, 2012, par value $0.001, in AMBS
shares, including a $25,000 exclusivity fee paid to Power 3 upon execution of a non-binding term sheet dated November 11, 2011
and extended on December 31, 2011. Upon completion of a technology transfer of the Power 3 PK IP into a facility designated by
AMBS completed to the complete satisfaction of AMBS and transfer of ownership of any and all patents pertaining to Parkinson’s
disease diagnosis by way of assignment of all related Power 3 PK IP, AMBS will be required to exercise this Asset Purchase Option
as described below in Section 2.

 

SECTION 2 – ASSET PURCHASE OPTION
AND RIGHT OF FIRST REFUSAL

2.1Asset Purchase Option.
At any time until the expiration of the licensing term of this Agreement, AMBS shall have the exclusive option to purchase all
of the Power 3 PK IP for a purchase price equal to $500,000 worth of common stock, priced at the closing price of the common stock
on January 17th 2012, par value $0.001, in AMBS shares. Within thirty (30) days of AMBS’s written notice to Power
3 that it elects to exercise the purchase option, the purchase shall be concluded by execution of a formal Asset Purchase Agreement
containing customary representations and warranties, together with any and all ancillary documentation necessary to affect the
sale.

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2.2 Right of First Refusal.
 For the full term of the Agreement, AMBS shall be granted a Right of First Refusal to acquire the Power 3 Neurodegenerative
disease IP, including but not limited to the IP on Schedule D, whereby upon completion of the Phase 2 validation study as
described in Schedule B, Power 3 shall be required to negotiate in good faith for the sale of the Power 3 Neurodegenerative disease
IP to AMBS for a period of time not to exceed ninety (90 days). Such period may extend beyond the expiration of this Agreement
provided that negotiations have begun during the term of this Agreement. In the event AMBS and Power 3 are unable to reach a mutually
satisfactory agreement and thereafter Power 3 obtains a bone fide written offer from a third party for the Power 3 Neurodegenerative
disease IP, Power 3 shall be required to disclose such offer and its terms to AMBS within five (5) business days and AMBS shall
have a right to match said written offer within ten (10) business days. In the event AMBS does not match said offer, Power 3 shall
have the right to sell the Power 3 Neurodegenerative disease IP to the third party that made the bona fide offer at the price and
on the terms disclosed to AMBS.

 

SECTION 3 – VALIDATION STUDY AND TECHNOLOGY
TRANSFER

 

3.1Validation Studies and
Technology Transfer. For consideration granted herewith, Power 3 will use good faith efforts to carry out the validation
study and technology transfer according to Schedule B. Each month, Power 3 shall make reports in writing to AMBS on the
status of the validation studies and technology transfer. During the period of this Agreement, AMBS’s technical/scientific
representative and other representatives may have reasonable access to consult informally with Power 3’s technical/scientific
representative regarding the validation studies and technology transfer both personally and by telephone.

 

SECTION 4 – REPRESENTATIONS AND WARRANTIES
OF POWER 3 

 

Power 3 hereby represents and warrants to AMBS
as follows:

 

4.1Organization.
Power 3 (i) is duly organized, validly existing and in good standing (or its equivalent) under the laws of the State of New York,
(ii) has all licenses, permits, authorizations and other consents necessary to own, lease and operate its properties and assets
and to carry on its business as it is now being conducted and (iii) has all requisite corporate or other applicable power and authority
to own, lease and operate its properties and assets and to carry on its business as it is now being conducted and presently proposed
to be conducted. Power 3 is duly qualified or authorized to conduct business and is in good standing (or its equivalent) as a foreign
corporation or other entity in all jurisdictions in which the ownership or use of its assets or nature of the business conducted
by it makes such qualification or authorization necessary.

4.2Authorization;
Validity of Agreement. Power 3 has all requisite corporate power and authority to execute and deliver this Agreement and
to consummate the transactions contemplated hereby. The execution, delivery and performance by Power 3 of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized by the Board of Directors of Power 3 and no other
action on the part of Power 3 or any of its stockholders or subsidiaries is necessary to authorize the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby. This Agreement has been duly executed and delivered
by Power 3 and is a valid and binding obligation of Power 3, enforceable against Power 3 in accordance with its terms, except as
such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights
generally and by general principles of equity.

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4.3Consents
and Approvals; No Violations. Neither the execution, delivery or performance of this Agreement by Power 3 nor the consummation
of the transactions contemplated hereby will (i) violate any provision of its certificate of incorporation or by-laws; (ii) violate,
conflict with or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time
or both, would constitute a default) under, require the consent of or result in the creation of any encumbrance upon any of the
properties of Power 3 or any of its subsidiaries under any material note, bond, mortgage, indenture, deed of trust, license, franchise,
permit, lease, contract, agreement or other instrument to which Power 3 or any its subsidiaries or any of their respective properties
may be bound; (iii) require any consent, approval or authorization of, or notice to, or declaration, filing or registration with,
any governmental entity by or with respect to Power 3 or any of its subsidiaries; or (iv) violate any order, writ, judgment, injunction,
decree, law, statute, rule or regulation applicable to Power 3 or any of its subsidiaries or any of their respective properties
or assets (See Schedule C).

4.4The
consent of, or the delivery of notice to or filing with, any party to a material contract is not required for the execution and
delivery by Power 3 of this Agreement or the consummation of the transactions contemplated under the Agreement.

4.5Patents
and Other Intangible Assets. Power 3 (i) owns, free and clear
of all liens, all patents, trademarks, copyrights, inventions, trade secrets, and know-how related to or comprising
the Power 3 PK IP, (ii) has not sold or granted to any third party any rights in the Power 3 PK IP, and (iii) has the right to
use such intellectual property without infringing upon or otherwise acting adversely to the
right of any person under or with respect to any of the foregoing. All of the Power 3 PK IP can and will be licensed by Power
3 to AMBS upon the terms of this Agreement without the consent of any Person other than AMBS. 

4.6Shares
To Be Issued To Power 3. With respect to the shares of common stock to be issued to Power 3 as consideration hereunder
(the “Shares”), Power 3 represents and warrants to AMBS the following:

 

(a)          
Power 3 acknowledges that an investment in the Shares involves a high degree of risk in that
AMBS does not currently generate revenue and may require substantial funds to pursue its business plan; 

 

(b)          
Power 3 recognizes that an investment in the shares is highly speculative and only investors
who can afford the loss of their entire investment should consider investing in AMBS and the Shares;

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(c)          
Power 3 and its officers and directors have such knowledge and experience in finance, securities,
investments, including investment in unregistered securities, and other business matters so as to be able to protect its interests
in connection with this transaction;

 

(d)          
Power 3 is an "Accredited Investor" as defined in Rule 501 of Regulation D promulgated
under the Securities Act of 1933, as amended;

 

(e)          
Power 3 acknowledges that only a limited market for the Shares presently exists and accordingly
Power 3 may not be able to liquidate its investment;

 

(f)           
Power 3 acknowledges that the Shares are subject to significant restrictions on transfer as
imposed by state and federal securities laws, including but not limited to a minimum holding period of at least six (6) months;

 

(g)          
Power 3 hereby acknowledges (i) that this offering of Shares has not been reviewed by the
United States Securities and Exchange Commission ("SEC") or by the securities regulator of any state; (ii) that the Shares
are being issued by AMBS pursuant to an exemption from registration provided by Section 4(2) of the Securities Act of 1933; and
(iii) that the certificate evidencing the Shares received by Power 3 will bear a legend in substantially the following form:

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. WITHOUT SUCH REGISTRATION, SUCH SECURITIES
MAY NOT BE SOLD OR OTHERWISE TRANSFERRED AT ANY TIME WHATSOEVER UNLESS IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY REGISTRATION
IS NOT REQUIRED FOR SUCH TRANSFER AND THAT SUCH TRANSFER WILL NOT BE IN VIOLATION OF THE APPLICABLE FEDERAL AND STATE SECURITIES
LAWS OR ANY RULE OR REGULATION PROMULGATED THERE UNDER.

 

(h)          
Power 3 is acquiring the Shares as principal for Power 3's own benefit;

 

(i)            
Power 3 is not aware of any advertisement of the Shares or any general solicitation in connection
with any offering of the Shares;

 

(j)           
Power 3 acknowledges and agrees that the AMBS has previously made available to Power 3 the
opportunity to ask questions of and to receive answers from representatives of AMBS concerning AMBS and the Shares, as well as
to conduct whatever due diligence Power 3, in its discretion, deems advisable.

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SECTION 5 – REPRESENTATIONS AND WARRANTIES OF AMBS

 

AMBS hereby represents and warrant to Power
3 as follows:

 

5.1Organization.
AMBS (i) is duly organized, validly existing and in good standing (or its equivalent) under the laws of the State of Delaware,
(ii) has all licenses, permits, authorizations and other consents necessary to own, lease and operate its properties and assets
and to carry on its business as it is now being conducted and (iii) has all requisite corporate or other applicable power and authority
to own, lease and operate its properties and assets and to carry on its business as it is now being conducted and presently proposed
to be conducted. AMBS is duly qualified or authorized to conduct business and is in good standing (or its equivalent) as a foreign
corporation or other entity in all jurisdictions in which the ownership or use of its assets or nature of the business conducted
by it makes such qualification or authorization necessary.

5.2Authorization;
Validity of Agreement. AMBS has all requisite corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance by AMBS of this Agreement and the consummation
of the transactions contemplated hereby have been duly authorized by the Board of Directors of AMBS and no other action on the
part of AMBS or any of its stockholders or subsidiaries is necessary to authorize the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby. This Agreement has been duly executed and delivered by AMBS and is
a valid and binding obligation of AMBS, enforceable against AMBS in accordance with its terms, except as such enforcement is limited
by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and by general
principles of equity.

5.3Shares
To Be Issued To Power 3. With respect to the shares of common stock to be issued to Power
3 as consideration hereunder (the “Shares”), AMBS represents and warrants to Power 3 that, upon issue, the Shares
will be duly and validly issued, fully paid and non-assessable common stock in the capital of AMBS.

5.4Fairness
Opinion. Power 3 and AMBS represents that the Parties do not require a fairness opinion to execute this Agreement or transfer
the License.

SECTION 6 – INDEMNIFICATION AND RELATED MATTERS

6.1Indemnification.
Power 3 shall indemnify and hold harmless AMBS, and AMBS shall indemnify and hold harmless Power 3, (collectively, the “Indemnified
Parties”), and shall reimburse the Indemnified Parties for, any loss, liability, claim, damage, expense (including, but
not limited to, costs of investigation and defense and reasonable attorneys’ fees) (collectively, “Damages”)
arising from or in connection with (a) any inaccuracy, in any material respect, in any of the representations and warranties made
in this Agreement or in any disclosure schedule thereto, or any actions, omissions or statements of fact inconsistent with any
such representation or warranty, (b) any failure to perform or comply in any material respect with any covenant or agreement in
this Agreement, (c) taxes attributable to any transaction or event occurring on or prior to the date of this Agreement, or (d)
any litigation, action, claim, proceeding or investigation by any third party relating to or arising out of the business or operations
of the respective parties prior to the date hereof.

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6.2Survival.
All representations, warranties, covenants and agreements of the Parties contained in this Agreement or in any instrument delivered
pursuant to this Agreement shall survive the termination of the initial term of this Agreement.

6.3Notice
of Claims.

(a)If
an Indemnified Party shall assert a claim for indemnification pursuant to Section 6.1, such Indemnified Party shall submit to the
indemnitor a written claim stating: (i) that an Indemnified Party incurred or reasonably believes it may incur Damages and the
amount or reasonable estimate thereof of any such Damages; and (ii) in reasonable detail, the facts alleged as the basis for such
claim and the section or sections of this Agreement alleged as the basis or bases for the claim. 

(b)In
the event that any action, suit or proceeding is brought against any Indemnified Party with respect to which a party may have liability
under this Section 6, the indemnitor shall have the right, at its cost and expense, to defend such action, suit or proceeding in
the name and on behalf of the Indemnified Party; provided, however, that the Indemnified Party shall have the right
to retain its own counsel, with fees and expenses paid by indemnitor, if representation of the Indemnified Party by counsel retained
by the indemnitor would be inappropriate because of actual or potential differing interests between indemnitor and the Indemnified
Party. In connection with any action, suit or proceeding subject to this Section 6, the parties agree to render to each other such
assistance as may reasonably be required in order to ensure proper and adequate defense of such action, suit or proceeding. An
indemnitor shall not, without the prior written consent of the applicable Indemnified Parties, which consent shall not be unreasonably
withheld or delayed, settle or compromise any claim or demand if such settlement or compromise does not include an irrevocable
and unconditional release of such Indemnified Parties for any liability arising out of such claim or demand.

SECTION
7 – TERM AND TERMINATION

7.1This
Agreement shall expire 1 year from its date of execution unless extended or sooner terminated in accordance with the provision
of this section.

7.2Either
party may terminate this Agreement on the anniversary date by giving the other party sixty (60) days prior written notice of its
election to terminate.

7.3If
Power 3 fails to timely meet its obligations under Section 3 and shall fail to remedy these failures within thirty (30),
ABMS may terminate this Agreement upon thirty (30) days written notice. Upon termination, Power 3 shall immediately return, without
further consideration, all common stock issued to Power 3 under the terms of this Agreement.

7.4No
rights or obligations survive termination of this Agreement.

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SECTION 8 – NOTICES 

 

All notices, requests, demands, claims, and
other communications hereunder shall be in writing. Any notice, request, demand, claim or other communication hereunder shall be
deemed duly delivered four business days after it is sent by registered or certified mail, return receipt requested, postage prepaid,
or one business day after it is sent for next business day delivery via a reputable nationwide overnight courier service, in each
case to the intended recipient as set forth below:

 

If to Power 3:

Power 3 Medical Products, Inc.

ATTN: Helen R. Park, M.S.

26202 Oakridge Dr. A-102

The Woodlands, TX 77380

 

If to AMBS:

Amarantus BioSciences, Inc.

Attn: Gerald Commissiong

675 Almanor Ave.

Sunnyvale, CA 94085

 

SECTION 9 – MISCELLANEOUS

 

9.1Amendments. Subject to applicable
law, this Agreement may be amended or modified by the parties hereto only by written agreement executed by each party to be bound
thereby and delivered by duly authorized officers of the parties hereto.

 

9.2Entire Agreement. This Agreement
and the exhibits attached hereto or referred to herein constitute the entire agreement of the parties hereto, and supersede all
prior agreements and undertakings, both written and oral, among the parties hereto, with respect to the subject matter hereof and
thereof.

 

9.3Severability. If any term or
other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good
faith to amend or modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable
manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

 

9.4Successors and Assigns; Assignment.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned or delegated by any of the parties
hereto without the prior written approval of all parties.

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9.5No Third Party Beneficiaries.
Nothing herein expressed or implied shall be construed to give any person other than the parties hereto (and their successors and
assigns as permitted herein) any legal or equitable rights hereunder.

 

9.6Counterparts; Delivery by Facsimile.
This Agreement may be executed in multiple counterparts, and by the different parties hereto in separate counterparts, each of
which when executed will be deemed to be an original but all of which taken together will constitute one and the same agreement.
This Agreement and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or
thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or by electronic
mail, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same
binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto
or to any such agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver
them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or
electronic mail to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated
through the use of a facsimile machine or electronic mail as a defense to the formation or enforceability of a contract and each
such party forever waives any such defense.

 

9.7Governing Law. This Agreement
and the agreements, instruments and documents contemplated hereby shall be governed by and construed and enforced in accordance
with the laws of the State of Nevada without regard to its conflicts of law principles.

 

8.8Interpretation.

 

(a)               
When a reference is made in this Agreement to a section or article, such reference
shall be to a section or article of this Agreement unless otherwise clearly indicated to the contrary.

(b)              
Whenever the words “include”, “includes”
or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

(c)               
The words “hereof”, “hereby”, “herein”
and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole and not to any particular provision of this Agreement, and article, section, paragraph, exhibit and schedule references
are to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise specified.

(d)              
The words “knowledge,” or “known to,”
or similar terms, when used in this Agreement to qualify any representation or warranty, refer to the knowledge or awareness of
certain specific facts or circumstances related to such representation or warranty of the persons in the Applicable Knowledge Group
(as defined herein) which a prudent business person would have obtained after reasonable investigation or due diligence on the
part of any such person. For the purposes hereof, the “Applicable Knowledge Group” with respect to AMBS shall
be Gerald Commissiong. For the purposes hereof, the “Applicable Knowledge Group” with respect to Power 3 shall
be Ira L. Goldknopf, Ph.D.

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(e)               
The word “subsidiary” shall mean any entity of which at least
a majority of the outstanding shares or other equity interests having ordinary voting power for the election of directors or comparable
managers of such entity is owned, directly or indirectly by another entity or person.

(f)               
For purposes of this Agreement, “ordinary course of business”
means the ordinary course of business consistent with past custom and practice (including with respect to quantity and frequency).

(g)              
The plural of any defined term shall have a meaning correlative to such defined
term, and words denoting any gender shall include all genders. Where a word or phrase is defined herein, each of its other grammatical
forms shall have a corresponding meaning.

(h)              
A reference to any legislation or to any provision of any legislation shall
include any modification or re-enactment thereof, any legislative provision substituted therefor and all regulations and statutory
instruments issued thereunder or pursuant thereto, unless the context requires otherwise.

(i)                
The parties hereto have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first written above.  

 

	Amarantus BioSciences, Inc.
	
	
	By:	/s/ Gerald Commissiong
	Name:	Gerald Commissiong
	Title:	President & CEO
	
	
	
	Power 3 Medical Products, Inc.
	
	
	By:	/s/ Helen R. Park
	Name:	Helen R. Park, M.S.
	Title:	Interim CEO
	 	 	 

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Schedule A
– Power 3 Parkinson’s Disease Diagnostic IP 

 

The Power 3 PK IP shall include of
all of Power 3’s right title and interest in and to the intellectual property rights set forth herein below, as they relate
to Parkinson’s disease diagnosis, including without limitation: (a) the patents, patent applications, and any inventions
set forth below (collectively, the "Patents"); (b) all rights to apply in any or all countries of the world for patents
or governmental grants in such Patents; (c) any and all applications filed and any and all patents, certificates of inventions
or other governmental grants granted on said Patents in the United States or any other country, including each and every application
filed and each and every Patent granted on any applications which is a division, substitution or continuation of any of said applications;
(d) each and every reissue or extension of any of such Patents; (e) each any every patent claim resulting from a reexamination
certificate for any and all such Patents; and (f) any and all rights to sue for and recover damages for any past, present or future
violation, misappropriation or infringement of the Patents.

 

	Title of Patent, Patent Application, or Invention	Jurisdiction	Application/Priority
	Diagnosis of Parkinson’s Disease	US	12/802,630; 06/10/2009
	Assays for diagnosis and therapeutics employing similarities and differences in blood serum concentrations of 3 forms of complement C3C and related protein biomarkers between Amytrophic Lateral Sclerosis and Parkinson's disease	US	13/118,175; 08/24/2005
	Forty Seven (47) Protein Biomarkers For Neurodegenerative  Diseases	US	12/069,807; 2/13/2008

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Schedule B

 

Timeline for PD Technology Transfer and Development

 

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Summary of Steps

 

IP exchange

Patent Applications Exchange

SOP exchange

Lists

Equipment and supplies

Personnel requirements

Training

Training manual

In-house at P3 training

Training at Amarantus approved site

Qualification

P3 & Am side by side testing

Certification

Release of PD diagnostic test to Amarantus

Clinical Trials

Finish Phase II

Configuration for target market

Phase III

Future Options

CLIA testing with Gel system

ELISA development

CLIA testing ELISA

Partner mid to large diagnostic company

FDA approval for Gel system

FDA approval for ELISA

FDA partnering with diagnostic company

 

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Monthly Timeline

 

Month
one P3 - $50,000 

IP
exchange 

IP
discussions 

SOP’s 

Personnel 

Lab
Tecfull  

PhD
1/3 

Consultant
1⁄2 

Supplies 

Gels 

Other
chemicals 

Calibration 

Freezer 

Water
system 

Spectrophotometer 

Imager 

Computer
program updates 

PDQUEST® 

SAS® 

Analyze-It® 

Training
manual transfer 

Contact
clinical site for initial samples PK and control samples 

IP
attorney 

Equipment
List and contact information transfer 

Supply
list 

Vendor
list with contact information 

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Month one AM

Receive IP info transfer-consult with IP
attorney for prosecution needed

Read and analyze SOPs-questions

Lease lab space

Decide location of lab space

Contract lab work

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Month Two P3 - $40,000

Personnel 

Lab
Techfull 

PhD1/3 

Consultant1⁄2 

Imaging
training new personnel 1/3 time 

SAS
analysis training new personnel 1/3 time 

Supplies 

Re
run samples on new gels/stain/de-stain/image 

Albumin
standards 12 gels 

Pools 

PD 

PD
like 

Control
(age/sex matched) 

Qualify
Results 

Samples
from Phase I (triplicate) 

5
PD 

5
PD like 

5
Age matched controls 

Qualify
Results 

Samples
from Phase II (triplicate) 

25
samples PD 

25
samples PD like 

25
samples control 

Qualify
Results 

Validation
for method restart complete when criteria met: 

Image
quality 

Accuracy 

Reproducibility 

Robustness 

Linearity 

Dynamic
range 

Limit
of detection 

Limit
of quantify ability 

Plan
for next phases samples with Amarantus 

Contract
and IRB Protocol for new clinical site for prospective samples 

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Month Two-Three AM

Set up lab at AM designated site

Order equipment

2D Gel equipment

Spectrophotometer

Imager

Hood

Refrigerators

Solution storage

Working sample storage

Freezer -20°C

Freezer -80°C

Water system – high quality

Biohazard container and pickup contract

Miscellaneous

Order supplies 

Reagents

Miscellaneous 

Employ qualified personnel

Project manager

Lab
manager 

Lab
tech 

Image analysis

Bioinformatics

Purchase computers

Purchase PDQUEST® program

Purchase SAS® program

Procure source for new samples

 

Month Two P3 and AM

Develop plan for continuation of clinical trial
for PD

disease diagnosis

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Month Three-Five P3 - $40,000

 

Begin running samples for clinical trials-continue
Phase II

 

50 new PD prospective samples

50 new PD like prospective samples

50 new prospective control samples

 

Evaluate SAS generated results

 

Begin training AM personnel at P3

LTfull 

PhD1⁄2 

Consultant
1⁄2 

Image
Tech 

SAS
consultant 1/3 

Supplies 

Send
initial samples (Set 1) from phase I and standard pools to AM 

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Month Four AM Train at P3 - $40,000

Visit
P3 

Train
for protein analysis 

Train
use of spectrophotometer 

Standard
curve with Standard albumin 

Train
for 2D gels 

Train
image Tech 

SAS
program set up and initial training 

Qualify
training of AM Personnel 

Albumin
standards 12 gels 

Pools 

PD 

PD
like 

Control
(age/sex matched) 

Qualify
Results 

Samples
from Phase I (triplicate) 

5
PD 

5
PD like 

5
Age matched controls 

Qualify
Results 

Samples
from Phase II (triplicate) 

25
samples PD 

25
samples PD like 

25
samples control 

Qualify
Results 

Validation
for method transfer complete when criteria met: 

Image
quality 

Accuracy 

Reproducibility 

Robustness 

Linearity 

Dynamic
range 

Limit
of detection 

Limit
of quantify ability 

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Month Six-Twelve P3

Continue
clinical sample testing and analysis 

Start
Phase III clinical trial 

500
PD 

500
PD like 

500
Age matched 

Personnel 

LTfull 

Asst
ltfull 

PhDfull 

Image
tech 

Consultant
1⁄2 

SAS
consultant full 

Clerk 

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Month Five AM

Train
and qualify at AM facility 

Albumin
standards 12 gels 

Pools 

PD 

PD
like 

Control
(age/sex matched) 

Qualify
Results 

Samples
from Phase I (triplicate) 

5
PD 

5
PD like 

5
Age matched controls 

Qualify
Results 

Samples
from Phase II (triplicate) 

25
samples PD 

25
samples PD like 

25
samples control 

Qualify
Results 

Validation
for method transfer complete when criteria met: 

Image
quality 

Accuracy 

Reproducibility 

Robustness 

Linearity 

Dynamic
range 

Limit
of detection 

Limit
of quantify ability 

Send
results to P3 

Pass
this set vs. results of AM at P3 and P3 at P3 

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Month Six-Eight AM

 

Begin running samples for clinical trials-continue
Phase II

 

50 new PD prospective samples

50 new PD like prospective samples

50 new prospective control samples

 

Evaluate SAS generated results

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Month Nine-Fifteen AM

Receive clinical trial samples

Start Phase III clinical trial Testing at
AM

Compare results for validation with Power
3 results

 

Month Thirteen P3

Start Preparation for Commercialization with
Am

 

Month Sixteen AM

Continue Phase III

If everything validates

Tech transfer complete

 

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Timeline

 

Six Month timeline Cost

	Month 1 Lab startup $50,000
	Month 2 Requalification $40,000
	Month 3 Continue Phase II $40,000
	Month 4 Continue Phase II $40,000
	Month 5 Continue Phase II $50,000
	Month 6 Begin Phase III $65,000

Total $285,000

 

This is for Power 3’s portion of the time line.

This is a laboratory use of funds only. No new equipment. For intrinsic
cost without a detailed budget, it might be better to estimate a budget of $300,000 to $500,000.

 

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Schedule C

 

Legal Opinion related to legal claim with
Transgenomics

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January 6, 2012

 

 

 

 

VIA EMAIL
Helenpark9@aol.com

 

Helen R. Park

Power3 Medical Products, Inc.

26202 Oak
Ridge Drive, Suite A-I 02

Spring, TX 77380

 

Re:Transgenomic, Tne. v. Power3 Medical Products,
Tnc.

Case No:
10-cv-79

Our File No.
12543-0

 

Dear Helen:

 

Pursuant to your request, this letter
addresses the litigation status between Power3 Medical
Products, Inc. and Transgenomic,
Inc. in the case captioned Transgenomic. Tnc. v. Power3 Medical
Products. Inc., Case
No.: lO·cv-79, in the U.S. District Court
for the District for Nebraska (the "Litigation").

 

After a
July 20 II mediation, the parties to the Litigation reached
a Settlement and Mutual Release Agreement that was executed in August 2011. On October 12, 2011, the Court
entered an Order dismissing
the Litigation with prejudice.

 

Please let me know if you have any questions regarding
the Litigation.

 

Sincerely,

 

 

/s/ Kristin M.V. Farwell

Kristin M.V. Farwell

 

KMF/jlm

cc: Gregory C. Scaglione

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Schedule D

 

Neurodegenerative Disease IP

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Power3 Medical Products,
Inc.

Neurodegenerative IP List

 

	PATENT	NUMBER
	Diagnosis of Parkinson's Disease	
        12/802,630

         

	Assays for ALS and ALS-Like Disorders	
        12/804,868

         

	Assays for diagnosis and therapeutics employing similarities and differences in blood serum concentrations of 3 forms of complement C3C and related protein biomarkers between Amytrophic Lateral Sclerosis and Parkinson's disease	
        131118,175

         

	Diagnosis of Alzheimer's Disease	
        13/153,669

         

	Diagnosis of Multiple Forms of Alzheimer's Disease Based on Difference in Concentration of Protein Biomarkers in Blood Serum of Patients	
        12/217,885

         

	Forty Seven (47) Protein Biomarkers For Neurodegenerative Disease	
        12/069,807

         

	TRADEMARK	
	NeuroPro and Design	
        76/605,921

         

 

Confidential Information
26202 Oakridge, DR. Suite A-102, Spring, TX 77380

    	29

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