Document:

Recapitalization Agreement

 Exhibit 10.1 
 RECAPITALIZATION AGREEMENT 
 among 
 VELOCITY EXPRESS CORPORATION, 
 CERTAIN OF ITS PREFERRED STOCKHOLDERS 

 and 
 MCG ACQUISITION
LLC 
 Dated as of July 31, 2009 

 Table of Contents 
  

					
	 	 	 	  	Page
	 ARTICLE I
	 	Definitions	  	2
			
	 ARTICLE II
	 	Recapitalization Transactions	  	7
			
	 Section 2.1
	 	 Transactions at Closing
	  	7
	 Section 2.2
	 	 Closing
	  	8
			
	 ARTICLE III
	 	Representations and Warranties	  	8
			
	 Section 3.1
	 	 Representations and Warranties of the Company
	  	8
	 Section 3.2
	 	 Representations and Warranties of the Investors
	  	11
			
	 ARTICLE IV
	 	Conditions to Closing	  	13
			
	 Section 4.1
	 	 Conditions to the Obligations of Each Party
	  	13
	 Section 4.2
	 	 Conditions to the Obligations of Newco
	  	14
	 Section 4.3
	 	 Conditions to Obligations of the Company
	  	15
			
	 ARTICLE V
	 	Covenants and Agreements	  	15
			
	 Section 5.1
	 	 Forbearance
	  	15
	 Section 5.2
	 	 Conduct of Business
	  	15
	 Section 5.3
	 	 Actions by the Parties
	  	16
	 Section 5.4
	 	 Acquisition Proposals.
	  	16
	 Section 5.5
	 	 Stockholders Meeting; Proxy Statement.
	  	18
	 Section 5.6
	 	 Agreement of Preferred Holders.
	  	18
	 Section 5.7
	 	 Stockholder Litigation
	  	20
			
	 ARTICLE VI
	 	Termination	  	20
			
	 Section 6.1
	 	 Termination of Obligations to Effect Closing; Effects.
	  	20
	 Section 6.2
	 	 Effect of Termination.
	  	22
			
	 ARTICLE VII
	 	Miscellaneous	  	22
			
	 Section 7.1
	 	 Survival
	  	22
	 Section 7.2
	 	 Successors and Assigns
	  	23
	 Section 7.3
	 	 Counterparts; Faxes
	  	23
	 Section 7.4
	 	 Titles and Subtitles
	  	23
	 Section 7.5
	 	 Notices
	  	23
	 Section 7.6
	 	 Expenses
	  	24
	 Section 7.7
	 	 Amendments and Waivers
	  	24
	 Section 7.8
	 	 Publicity
	  	24
	 Section 7.9
	 	 Severability
	  	24
	 Section 7.10
	 	 Entire Agreement
	  	25
	 Section 7.11
	 	 Further Assurances
	  	25
	 Section 7.12
	 	 Remedies Cumulative; Specific Performance
	  	25
	 Section 7.13
	 	 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial
	  	25
	 Section 7.14
	 	 Independent Nature of Obligations and Rights
	  	25

  

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 RECAPITALIZATION AGREEMENT 
 RECAPITALIZATION AGREEMENT, made as of the 31st day of July, 2009 (this “Agreement”), by and between Velocity Express Corporation (the
“Company”), MCG Acquisition LLC (“Newco”) and the holders of preferred stock of the Company whose names appear on the signature page hereto (the “Preferred Holders”). 
 WHEREAS, Newco is a party to certain Bondholder Sale Agreements, dated as of the date hereof (the “Bondholder Sale
Agreements”), by and between Newco and the holders of at least  2/3rds of the Notes and Warrants (the Notes and Warrants being defined in the aggregate as the “Securities”) parties thereto (the “Bondholders”), pursuant to which Newco has agreements
to purchase at least  2/3rds of the outstanding Securities and
expects to have agreements to purchase all of the outstanding Securities in exchange for an aggregate amount equal to the Securities Purchase Price; 
 WHEREAS, Newco has agreed to exchange the Securities for shares of common stock, par value $0.04, of the Company (the “Common Stock”) equal to 78.5% of the Common Stock outstanding on a fully diluted
basis after giving effect to the Recapitalization Transactions (as defined below) (including the shares of Common Stock required to be delivered by Newco to the Bondholders pursuant to the Bondholder Sale Agreements), upon the terms and subject to
the conditions set forth herein and in full satisfaction of the Securities (the “Exchange”); 
 WHEREAS, in connection and
simultaneously with the consummation of the Exchange, at least 62.5% of each class of the Preferred Holders have agreed, and Newco expects that the remaining Preferred Holders will agree, to convert or exchange all of the issued and outstanding
Preferred Stock into shares of Common Stock equal to 19.9% of the Common Stock outstanding on a fully diluted basis (see Annex A regarding treatment of outstanding options and warrants) after giving effect to the Recapitalization Transactions upon
the terms and subject to the conditions set forth herein (the “Conversion” and, together with the Exchange and the other transactions contemplated by this Agreement, which will result in Newco owning 78.5% of the Common Stock
(including the shares of Common Stock required to be delivered by Newco to the Bondholders pursuant to the Bondholder Sale Agreements) outstanding on a fully diluted basis and the Preferred Holders owning 19.9% of the Common Stock outstanding on a
fully diluted basis, such that ownership of the Company is as set forth on Annex A. (the “Recapitalization Transactions”); 
 WHEREAS, the Company, Newco and over 62.5% of the Preferred Holders have agreed to terminate all the other existing agreements, arrangements and understandings between the Company and the Preferred Holders (other than the Transaction
Documents), (the “Preferred Holder Agreements”); 
 WHEREAS, the Company, Newco and the Preferred Holders are executing and
delivering this Agreement in reliance upon the exemption from securities registration afforded by the provisions of Regulation D, as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the 1933 Act;

  

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 WHEREAS, over 62.5% of the Preferred Holders have delivered Consents to Newco acknowledging that they
have agreed to the terms and conditions set forth herein and that execution of this Agreement by the Preferred Holders shall constitute a reaffirmation of the terms and conditions previously agreed to in such Consents; and 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound, the parties agree as follows: 
 ARTICLE I 
 Definitions 
 For the purposes
of this Agreement, the following terms shall have the meanings set forth below: 
 “Acquisition Proposal” means, other than
the Recapitalization Transactions, any proposal or offer from any Person (other than the Investors) or “group” (as defined in Section 13(d) of the 1934 Act) for (i) the direct or indirect acquisition of assets of the Company
equal to 20% or more of the Company’s consolidated assets, (ii) the acquisition from the Company of 20% or more of the outstanding equity securities of the Company (calculated on a fully diluted, as converted basis), (iii) a tender
offer or exchange offer that if consummated would result in any Person or “group” (as defined in Section 13(d) of the Exchange Act) beneficially owning 20% or more of the equity securities of the Company or (iv) a merger,
consolidation, share exchange, business combination, recapitalization, liquidation, dissolution or similar transaction involving the Company or any of its Subsidiaries whose assets, individually or in the aggregate, constitute more than 20% of the
Company’s consolidated assets (other than (1) mergers, consolidations, recapitalizations, share exchanges or other business combinations involving solely the Company and/or one or more of its Subsidiaries and (2) mergers,
consolidations, recapitalizations, share exchanges or other business combinations that if consummated would result in the holders of the outstanding shares of Common Stock immediately prior to such transaction owning more than 90% of the equity
securities of the Company, or any successor or acquiring entity, immediately thereafter). 
 “Affiliate” means, with respect
to any Person, any other Person which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” (including the terms
“controlling”, “controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. 
 “Bankruptcy Event” means any of the following events:
(a) any action is taken by or against the Company or any Subsidiary (other than by Newco or its Affiliates or by any Person acting on behalf of Newco or its Affiliates) under any bankruptcy, reorganization, winding up, arrangement,
restructuring, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Subsidiary thereof; (b) the Company or any Subsidiary is adjudicated by a court of
competent jurisdiction insolvent or bankrupt or any order of relief or other order approving any such case or 

  

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proceeding is entered; (c) any custodian, receiver, trustee or any similar official is appointed for the Company or any Subsidiary or any substantial
part of the Company’s or any Subsidiary’s property; (d) under applicable law the Company or any Subsidiary makes a general assignment for the benefit of creditors; or (e) the directors of the Company vote for or direct the
winding down of the affairs of such entity. 
 “Board Resignation Request” has the meaning set forth in
Section 4.2(c). 
 “Bondholder Sale Agreements” has the meaning set forth in the Recitals to this Agreement.

 “Bondholders” has the meaning set forth in the Recitals to this Agreement. 
 “Break-up Fee” means $750,000.00. 
 “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business. 
 “Closing” has the meaning set forth in Section 2.2. 
 “Closing
Date” has the meaning set forth in Section 2.2. 
 “Company Releasees” means the Company, its
Subsidiaries and each of their respective officers and directors. 
 “Company Requisite Vote” has the meaning set forth in
Section 3.1(g). 
 “Consent” means the instrument delivered by over 62.5% of the Preferred Holders evidencing
such Preferred Holder’s consent to the material terms and conditions set forth in this Agreement. 
 “Conversion” has
the meaning set forth in the Recitals to this Agreement. 
 “Credit Agreement” means that certain Loan and Security
Agreement, dated as of March 13, 2009, as amended, among the Company, Velocity Express, Inc., Velocity Express Leasing, Inc., VXP Mid-West, Inc., VXP Leasing Mid-West, Inc., CD&L, Inc., Clayton/National Courier Systems, Inc., Click
Messenger Service, Inc., Olympic Courier Systems, Inc., Securities Courier Corporation, Silver Star Express, Inc., Velocity Systems Franchising Corporation, the lenders parties thereto and Burdale Capital Finance, Inc., as administrative agent for
the lenders. 
 “Exchange” has the meaning set forth in the Recitals to this Agreement. 
 “Frustrating Transaction” has the meaning set forth in Section 5.6(b). 
 “Governmental Entity” means any legislative, executive, judicial, regulatory or administrative unit of any governmental entity
(multinational, foreign, federal, state or local) or any department, commission, board, agency, bureau, ministry, official, arbitrator (public) or other similar body exercising executive, legislative, regulatory, administrative or judicial authority
or functions of or pertaining to government, including any authority or other quasi-governmental entity established by any of the foregoing to perform any such functions. 
  

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 “Indenture” means the Indenture, dated July 3, 2006, between the Company and Wells
Fargo Bank, N.A., as trustee, with respect to the Notes, as amended by the Supplemental Indenture, dated as of August 17, 2006, the Second Supplemental Indenture, dated as of December 22, 2006 and the Third Supplemental Indenture, dated
July 25, 2007, the Fourth Supplemental Indenture, dated May 19, 2008, as amended, and the Fifth Supplemental Indenture, dated March 13, 2009. 
 “Investors” means, collectively, Newco and the Preferred Holders. 
 “Liens” means any lien, pledge, mortgage, deed of trust, security interest, claim, lease, charge, option, right of first refusal, easement, servitude, proxy, voting trust or agreement, transfer restriction under any
shareholder or similar agreement, encumbrance or any other restriction or limitation whatsoever. 
 “Material Adverse
Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial or otherwise) or business of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company
to perform its obligations under the Transaction Documents; provided, however, that none of the following shall be deemed, either alone or in combination, to constitute, and none of the following shall be taken into account in determining
whether there has been or will be, a Material Adverse Effect: (A) any change, effect, event, occurrence or development (1) in the financial or securities markets or the economy in general or political conditions, (2) in the industries
in which the Company or any of its Subsidiaries operates in general, (3) related to or arising from changes following the date hereof in United States generally accepted accounting principles, (4) related to or arising from the
announcement or consummation of this Agreement and the Recapitalization Transactions, including a loss of customers, employees or independent contractors related to the announcement of this Agreement, (5) arising from losses of revenues or
deterioration in the performance of the business of the Company or its Subsidiaries, (6) related to or arising from changes following the date hereof in taxes or laws, rules or regulations of general applicability or interpretations thereof by
any Governmental Entity, or (7) related to or arising from any matter disclosed in the SEC Filings, or (B) any failure, in and of itself, by the Company to meet any internal or published projections, forecasts or revenue or earnings
predictions (it being understood that the facts or occurrences giving rise or contributing to such failure may be deemed to constitute, or be taken into account in determining whether there has been or would reasonably be expected to be, a Material
Adverse Effect. 
 “Newco Expenses” means all of the reasonable documented out-of-pocket fees and expenses (including all
fees, expenses and disbursements of counsel, accountants, investment bankers, experts and consultants to Newco, its Affiliates and its Representatives) incurred by Newco on or prior to the termination of this Agreement in connection with the
Recapitalization Transactions. 
 “Newco Financing” means all requisite financing needed by Newco under and as contemplated
by the Bondholder Sale Agreements. 
  

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 “Newco Investors” means the Person or Persons who hereafter provide the Newco Financing.

 “Newco Investors Consent” has the meaning set forth in Section 4.2(e). 
 “Newco Satisfaction and Release Documents” has the meaning set forth in Section 2.1(b). 
 “Notes” means the Company’s 12% Senior Secured Notes due 2010 issued under the Indenture. 
 “Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock
company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 
 “Preferred Holder Agreements” has the meaning set forth in the Recitals to this Agreement. 
 “Preferred Holder Satisfaction and Release Documents” has the meaning set forth in Section 2.1(c). 
 “Preferred Holders” has the meaning set forth in the Recitals to this Agreement. 
 “Preferred
Stock” means (i) the Series M Preferred Stock, par value $.004 per share of the Company (the “Series M Preferred”), (ii) the Series N Preferred Stock, par value $.004 per share of the Company (the “Series
N Preferred”), (iii) the Series O Preferred Stock, par value $.004 per share of the Company (the “Series O Preferred”), (iv) the Series P Preferred Stock, par value $.004 per share (the “Series P
Preferred”) and (v) the Series Q Preferred Stock, par value $.004 per share of the Company (the “Series Q Preferred”). 
 “Preferred Stock Adjustment” has the meaning set forth in Section 2.1(c)(ii). 
 “Prohibited Transaction” has the meaning set forth in Section 3.2(k). 
 “Proxy
Statement” has the meaning set forth in Section 5.5(a). 
 “Recapitalization Transactions” has the
meaning set forth in the Recitals to this Agreement. 
 “Recommendation” has the meaning set forth in
Section 5.5(a). 
 “Representatives” has the meaning set forth in Section 5.4(a). 
 “Securities” has the meaning set forth in the Recitals to this Agreement. 
 “Securities Purchase Price” means $10 million in cash plus, if the Recapitalization Transactions are consummated, shares of Common Stock
equal to ten percent (10%) of the Common Stock of the Company outstanding after giving effect to the Recapitalization Transactions. 
  

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 “SEC” has the meaning set forth in the Recitals to this Agreement. 
 “SEC Filings” has the meaning set forth in Section 3.1(e). 
 “Shares” means the shares of Common Stock being acquired by Newco and the Preferred Holders hereunder (including, for the avoidance of
doubt, the Shares to be delivered by Newco to the Bondholders pursuant to the Bondholder Sale Agreements as part of the Securities Purchase Price). 
 “Special Committee” means the committee of the Company’s Board of Directors formed for the purpose of evaluating strategic options for the Company, including the transactions covered hereby. 
 “Stockholders Meeting” has the meaning set forth in Section 5.5(a). 
 “Subsidiary” of any Person means any corporation, partnership, joint venture or other legal entity of which such Person owns, directly
or indirectly, 50% or more of the stock or other equity interests the holder of which is generally entitled to vote for the election of the board of directors or other governing body of such corporation or other legal entity. 
 “Superior Proposal” means any bona fide proposal (on its most recently amended or modified terms, if amended or modified) made by any
Person to enter into an Acquisition Proposal which, if consummated, would result in such Person owning, directly or indirectly (A) assets that generate more than 50% of the consolidated total revenues of the Company and its Subsidiaries,
(B) assets that constitute more than 50% of the consolidated total assets of the Company and its Subsidiaries or (C) more than 50% of the total voting power of the equity securities of the Company, in each case that the Special Committee
in good faith determines would, if consummated, result in a transaction that is more favorable from a financial point of view to both the stockholders of the Company and the holders of the Company’s outstanding indebtedness than the
transactions contemplated hereby. 
 “Termination Date” has the meaning set forth in Section 6.1(a)(iv).

 “Trading Affiliates” has the meaning set forth in Section 3.2(k). 
 “Transaction Documents” means this Agreement, the Bondholder Sale Agreements, the Newco Satisfaction and Release Documents, the Consents
of the Preferred Holders and the Preferred Holder Satisfaction and Release Documents. 
 “Transfer” has the meaning set
forth in Section 5.6(c). 
 “Warrants” means the warrants to acquire shares of Common Stock (as amended on
May 19, 2008), exercisable at $1.35 per share, and the warrants to acquire shares of Common Stock issued on May 19, 2008, exercisable at $0.88 per share, in each case held by the Bondholders. 
  

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 “1933 Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder. 
 “1934 Act” means the Securities Exchange Act of 1934, as amended, or
any successor statute, and the rules and regulations promulgated thereunder. 
 ARTICLE II 
 Recapitalization Transactions 
 Section 2.1 Transactions at Closing. On the terms and subject to the conditions set forth in this Agreement, at the Closing, the following transactions shall occur simultaneously: 
 (a) Newco shall surrender to the Company the Securities for Exchange pursuant to the terms hereof. 
 (b) Newco shall execute and deliver one or more written instruments effective as of the Closing, in form and substance reasonably satisfactory to the
Company (the “Newco Satisfaction and Release Documents”): 
 (i) terminating all obligations of the parties under the Notes,
Warrants and the Indenture, 
 (ii) releasing all security interests Newco may have in the assets of the Company or its Subsidiaries under
the Notes or otherwise, 
 (iii) permanently waiving any and all rights with respect to any event of default that may have existed under the
Notes at any time on or prior to the Closing, and 
 (iv) releasing the Company Releasees from all claims Newco or certain related parties
may have against any of the Company Releasees (other than claims arising under the Transaction Documents), and releasing Newco from all claims the Company and its Subsidiaries may have against Newco (other than claims arising under the Transaction
Documents). 
 (c) The Preferred Holders shall surrender to the Company stock certificates from each of the Preferred Holders representing
all of the issued and outstanding shares of Preferred Stock, together with properly completed notices accepting the Company’s offer to exchange or notice of conversion relating thereto, sufficient to exchange the shares of Preferred Stock into
shares of Common Stock (provided, however, that upon consummation of the transactions, outstanding Preferred Stock certificates will represent only the Common Stock). In addition, each consenting Preferred Holder shall execute and deliver one or
more written instruments effective as of the Closing, in form and substance reasonably satisfactory to the Company (the “Preferred Holder Satisfaction and Release Documents”): 
 (i) terminating all obligations of the parties under the Preferred Stock and the Preferred Holder Agreements, 
  

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 (ii) exchanging their shares of Preferred Stock for Common Stock or adjusting the conversion rates
applicable to the Preferred Stock or otherwise taking steps as required to implement the Recapitalization Transactions as set forth in Annex A hereto, agreeing to amend the Company’s Certificate of Incorporation if necessary to effect
the foregoing adjustments (including any reverse stock split) and agreeing to exchange or convert at Closing all of the shares of Preferred Stock into Common Stock as contemplated by the Recapitalization Transactions (collectively, the
“Preferred Stock Adjustment”), 
 (iii) permanently waiving any and all rights with respect to the Company under the
Preferred Stock or the Preferred Holder Agreements at any time on or prior to the Closing, and 
 (iv) releasing the Company Releasees from
all claims the Preferred Holders or certain related parties may have against any of the Company Releasees (other than claims arising under the Transaction Documents), and releasing the Preferred Holders and certain related parties from all claims
the Company and its Subsidiaries may have against the Preferred Holders or such related parties (other than claims arising under the Transaction Documents). 
 (d) The Company shall 
 (i) deliver to Newco one or more certificates in the name of Newco or its nominee,
bearing appropriate restrictive legends (which shall permit the distribution to Newco’s members and the Bondholders of the Shares issuable to Newco in connection with the Recapitalization Transactions), representing the Shares issued to Newco
hereunder, which shall include the Shares deliverable to the Bondholders by Newco pursuant to the Bondholder Sale Agreements as part of the Securities Purchase Price; and 
 (ii) deliver one or more certificates to each of the Preferred Holders as set forth in Annex B, bearing appropriate restrictive legends as contemplated by Section 3.2(g), representing the number of shares
of Common Stock which each Preferred Holder is entitled to in respect of such holder’s shares of Preferred Stock. 
 Section 2.2
Closing. The closing (the “Closing”) of the Recapitalization Transactions shall take place at the offices of Lowenstein Sandler PC, 65 Livingston Ave., Roseland, New Jersey 07068, on the first business day after the
satisfaction or waiver of the conditions set forth in Article IV, or at such other location and on such other date as the parties hereto shall mutually agree. The date on which the Closing occurs is referred to herein as the “Closing
Date”. 
 ARTICLE III 
 Representations and Warranties 
 Section 3.1 Representations and Warranties of the Company. The Company
represents and warrants to each Investor that, except as disclosed in the SEC Filings filed prior to the date of this Agreement (other than any forward-looking disclosures set forth in any risk factor section, any disclosures in any section relating
to forward-looking statements and any other similar disclosures included therein to the extent they are primarily predictive or forward-looking in nature): 
 (a) Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all
requisite corporate power and authority to carry on its business as now conducted and to own its properties. 
  

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 (b) Authorization. The Company has full power and authority and, except for the receipt of
agreements of the remaining Bondholders and Preferred Holders, and the Company Requisite Vote, has taken all requisite action on the part of the Company, its officers, directors and shareholders necessary for (i) the authorization, execution
and delivery of the Transaction Documents, (ii) the authorization of the performance of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance and delivery of the Shares. The Transaction Documents
constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally. 
 (c) Capitalization. 
 (i) As of July 31, 2009: 
 (A)
Preferred Stock. 299,515,270 shares of Preferred Stock were authorized, (1) 7,500,000 of which have been designated as Series M Preferred, and 4,347,571 (687,736 common equivalent shares) of which are issued and outstanding (or were
earned pursuant to the accrued PIK dividend provision of the Certificate of Designations for such series but not yet issued (“earned”)), (2) 2,544,098 of which have been designated as Series N Preferred, 946,138 (149,668 common
equivalent shares) of which were issued and outstanding or earned, (3) 1,625,000 of which have been designated as Series O Preferred, 129,547 (22,245 common equivalent shares) of which were issued and outstanding or earned, (4) 5,022,000
of which have been designated as Series P Preferred, 2,279,826 (544,030 common equivalent shares) of which were issued and outstanding or earned and (5) 9,704,813 of which have been designated as Series Q Preferred, 5,245,115 (4,156,686 common
equivalent shares) of which were issued and outstanding or earned. No other shares of Preferred Stock were issued and outstanding as of July 31, 2009. 
 (B) Common Stock. 700,000,000 shares of Common Stock were authorized, of which 4,549,955 shares were issued and outstanding. As of the date hereof, no shares of Common Stock were held by the Company in its
treasury. 
 (C) Options. 24,601 shares of Common Stock were subject to outstanding options. 
 (D) Warrants. Warrants to purchase 2,437,764 shares of Common Stock were issued and outstanding. 
  

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 (ii) Except as set forth in subsection (i) above, and except with respect to rights that will be
terminated as a result of the transactions described herein or as set forth on Annex B, no Person is entitled to pre-emptive or similar statutory or contractual rights with respect to any securities of the Company, and there are no outstanding
warrants, options, convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries is or may be obligated to issue any equity securities of any kind and except as contemplated by
this Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations for the issuance of any equity securities of any kind. 
 (iii) The issuance and sale of the Shares hereunder will not obligate the Company to issue shares of Common Stock or other securities to any other Person and will not result in the adjustment of the exercise, conversion, exchange or reset
price of any outstanding security except for securities being exchanged or cancelled pursuant to the transactions described herein or as set forth on Annex B. 
 (iv) The Company does not have outstanding shareholder purchase rights, a “poison pill” or any similar arrangement in effect giving any Person the right to purchase any equity interest in the Company upon
the occurrence of certain events. 
 (d) Valid Issuance. The Shares have been duly and validly authorized and, when issued and paid
for pursuant to this Agreement, will be validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by
applicable securities laws. 
 (e) SEC Filings. The Company has filed all forms, reports, statements, certifications and other
documents (including all exhibits and other information incorporated therein, amendments and supplements thereto) required to be filed by them with the SEC (all such forms, reports, statements, certificates and other documents filed, including any
amendments thereto, collectively, the “SEC Filings”) since June 30, 2008. As of their respective dates the SEC Filings filed since June 30, 2008 complied, and each of the SEC Filings filed subsequent to the date of this
Agreement will comply, in all material respects with the requirements of the 1933 Act, the 1934 Act and the Sarbanes-Oxley Act of 2002, as the case may be, and the applicable rules and regulations promulgated thereunder. 
 (f) No Conflict, Breach, Violation or Default. Subject to the receipt of consents from any Bondholders and Preferred Holders who have not yet
consented to the transactions, and the Company Requisite Vote, the execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale of the Shares will not conflict with or result in a breach or violation of
any of the terms and provisions of, or constitute a default under (i) the Company’s Certificate of Incorporation or Bylaws, both as in effect on the date hereof or (ii)(a) any statute, rule, regulation, order, judgment or decree of any
Governmental Entity, having jurisdiction over the Company, any Subsidiary or any of their respective assets or properties. 
 (g) Company
Requisite Vote. Certain shareholder consents or approvals may be required to effectuate the transactions contemplated hereby, including but not limited to (x) if 

  

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the Company is listed on Nasdaq, the affirmative vote of a majority of the votes cast at the Stockholders Meeting by holders of outstanding shares of Company
Stock, treating the outstanding shares of Common Stock and the Preferred Stock together as a single class, with each holder of Series M Preferred, Series N Preferred and Series O Preferred being entitled to vote a number of votes equal to the ratio
of the Series M Preferred, Series N Preferred and Series O Preferred stated value to market price multiplied by the number of shares held by such holder, rounded down to the nearest whole number, and each share of Series P Preferred and Series
Q Preferred being entitled to one vote, the affirmative vote of (A) 62.5% of the outstanding shares of Series M Preferred, (B) 62.5% of the outstanding shares of Series N Preferred and (C) 62.5% of the outstanding shares of Series O
Preferred, (y) such votes as are required to approve the amendments of the Preferred Stock conversion rights if the shares are converted rather than exchanged for Common Stock, and (z) any other shareholder votes required to approve the
share issuances, any reverse stock split and other matters under Delaware law and Nasdaq rules, if applicable (collectively, the “Company Requisite Vote”). 
 Section 3.2 Representations and Warranties of the Investors. Each Investor hereby severally, and not jointly, represents and warrants to the
Company that: 
 (a) Organization and Existence. If it is not a natural person, it is a validly existing corporation, limited
partnership or limited liability company and has all requisite corporate, partnership or limited liability company power and authority to invest in the Shares pursuant to this Agreement. 
 (b) Authorization. The execution, delivery and performance by it of the Transaction Documents to which it is a party have been duly authorized and
each will constitute the valid and legally binding obligation of it, enforceable against it in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally. 
 (c) Purchase Entirely for Own Account. The Shares to be
received by it hereunder will be acquired for its own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933 Act, and it has no present intention of selling, granting any
participation in, or otherwise distributing the same in violation of the 1933 Act without prejudice, however, to its right at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state
securities laws, it being understood that Newco intends to distribute a portion of the Shares to the Bondholders pursuant to the Bondholder Sale Agreements and may distribute the remaining Shares received by it in the Recapitalization Transactions
to its members. It is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged in a business that would require it to be so registered. 
 (d) Investment Experience. It acknowledges that it can bear the economic risk and complete loss of its investment in the Shares and has such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment contemplated hereby. It acknowledges it has had an opportunity to consult legal counsel regarding the terms and provisions of this Agreement. 
  

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 (e) Disclosure of Information. It has had an opportunity to receive all information related to the
Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Shares. It acknowledges full access to copies of the SEC Filings.

 (f) Restricted Shares. It understands that the Shares are characterized as “restricted securities” under the U.S. federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only in
certain limited circumstances. 
 (g) Legends. It is understood that, except as provided below, certificates evidencing the Shares
shall bear the following or any similar legend: 
 (i) “THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH
SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD WITHOUT RESTRICTION PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.” 
 (ii) If required by the authorities of any state in connection with the issuance of sale of the Shares, the legend required by such state authority. 
 (h) Accredited Investor. It is an accredited investor as defined in Rule 501(a) of Regulation D. 
 (i) No General Solicitation. It did not learn of the investment in the Shares as a result of any general solicitation or general advertising.

 (j) Brokers and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid
right, interest or claim against or upon the Company, any Subsidiary or it for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by it or on its behalf. 
 (k) Prohibited Transactions. Since the earlier of (A) such time as it was first contacted by the Company or any other Person acting on behalf
of the Company regarding the transactions contemplated hereby or (B) thirty (30) days prior to the date hereof, neither it nor any of its Affiliates which (1) had knowledge of the transactions contemplated hereby, (2) has or
shares discretion relating to its investments or trading or information concerning its investments, including in respect of the Shares, or (3) is subject to its review or input concerning such Affiliate’s investments or trading
(collectively, “Trading Affiliates”) has, directly or indirectly, effected or agreed to effect any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under
the 1934 Act) with respect to the Common Stock, granted any other right (including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or 

  

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derived any significant part of its value from the Common Stock or otherwise sought to hedge its position in the Shares (each, a “Prohibited
Transaction”). Prior to the termination of this Agreement, it shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly, in a Prohibited Transaction. It acknowledges that the representations, warranties and
covenants contained in this Section 3.2(k) are being made for the benefit of the other parties hereto as well as the Company and that each of the other parties hereto shall have an independent right to assert any claims against it
arising out of any breach or violation of the provisions of this Section 3.2(k). 
 (l) Ownership of Surrendered
Securities. In the case of Newco, subject to receipt of the Newco Financing and consummation of the Bondholder Sale Agreements, it will own the Notes and the Warrants, and in the case of each Preferred Holder, it owns the shares of Preferred
Stock set forth opposite its name on Annex B, beneficially and of record, free and clear of any Liens, other than those created pursuant to the terms of the Transaction Documents and, in the case of the Preferred Holders, the Preferred Holder
Agreements, and those arising under applicable federal securities laws and state securities laws. Except as set forth in the Transaction Documents, and, in the case of the Preferred Holders, the Preferred Holder Agreements, there are no agreements
(i) granting any option, warrant or right of first refusal with respect to such securities to any Person, (ii) restricting its right to surrender such securities to the Company, or (iii) restricting any other of its rights with
respect to such securities. Subject to compliance with the requirements of the 1933 Act, it has the absolute and unrestricted right, power and capacity to sell, assign and surrender such securities to the Company free and clear of any Liens (except
for Liens created pursuant to the Transaction Documents and those arising under applicable federal and state securities laws). 
 ARTICLE
IV 
 Conditions to Closing 
 Section 4.1 Conditions to the Obligations of Each Party. The respective obligations of each party to effect the Recapitalization Transactions shall be subject to the satisfaction at or prior to the Closing
Date of the following conditions: 
 (a) This Agreement and the issuance of the Shares pursuant to the Recapitalization Transactions shall
have been approved by the stockholders of the Company by the Company Requisite Vote if required by the rules of the Nasdaq or otherwise (which condition may be waived if the Company certifies that no such vote is required). 
 (b) No judgment, writ, order, injunction, award or decree of or by any Governmental Entity shall have been issued, and no action or proceeding shall have
been instituted by any Governmental Entity, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction Documents. 
 (c) The Company shall have obtained any consent or approval required under the Credit Agreement or any loan, guarantee of indebtedness, note, bond, mortgage, indenture, lease, agreement, contract, instrument, permit,
concession, franchise, right or license, to consummate the Recapitalization Transactions. 
  

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 (d) The Agreement shall not have been terminated pursuant to Section VI. 
 Section 4.2 Conditions to the Obligations of Newco. All obligations of Newco hereunder are subject to its ability to secure the Newco
Financing and to thereafter acquire the Securities pursuant to the Bondholder Sale Agreements. The obligation of Newco to effect the Exchange and to execute and deliver the Newco Satisfaction and Release Documents at the Closing is subject to the
fulfillment, on or prior to the Closing Date, of the following conditions, any of which may be waived in writing by Newco: 
 (a) The
representations and warranties made by the Company in Section 3.1 hereof that are qualified as to materiality shall be true and correct in all respects and that are not so qualified shall be true and correct in all material respects, on
the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, except where the failure of any such
representations and warranties to be so true and correct, in the aggregate, has not had, and would not reasonably be expected to have, a Material Adverse Effect. The Company shall have performed in all material respects all obligations and covenants
herein required to be performed by it on or prior to the Closing Date. The Company shall have delivered a certificate, executed on behalf of the Company by its Chief Executive Officer or its Chief Financial Officer, dated as of the Closing Date,
certifying to the fulfillment of the conditions specified in this Section 4.2(a). 
 (b) The Company shall have executed and
delivered to Newco the Newco Satisfaction and Release Documents. 
 (c) The Company shall, upon Newco’s written request, submit to Newco
the resignations of the Board of Directors of the Company at or prior to the Closing (the “Board Resignation Request”). 
 (d) Newco shall have obtained from the Newco Investors the Newco Financing to purchase the Securities for the Securities Purchase Price and to pay the Newco Expenses and such other sums as contemplated by the Bondholder Sale Agreements, and
the transactions contemplated by the Bondholder Sale Agreements shall have been consummated. 
 (e) The Newco Investors shall have executed
an instrument evidencing their consent to the terms and conditions set forth herein in form reasonably satisfactory to the Company. (Such consent by the Newco Investors is a condition subsequent to the effectiveness of this Agreement.) 

(f) A sufficient number of Preferred Holders shall have executed this Agreement and consented to the Recapitalization Transaction so as to enable it
to be effected without the consent of any additional Preferred Holders. 
  

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 Section 4.3 Conditions to Obligations of the Company. The Company’s obligation to
consummate the Recapitalization Transactions at the Closing is subject to the fulfillment on or prior to the Closing Date of the following conditions, any of which may be waived by the Company: 
 (a) The representations and warranties made by the Investors in Section 3.2 hereof that are qualified as to materiality shall be true and
correct in all respects and that are not so qualified shall be true and correct in all material respects on the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such
representation or warranty shall be true and correct as of such earlier date. The Investors shall have performed in all material respects all obligations and covenants herein required to be performed by them on or prior to the Closing Date. The
Investors shall have delivered a certificate or certificates, executed on behalf of the Company by an authorized representative, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in this
Section 4.4(a). 
 (b) The consenting Preferred Holders shall have executed and delivered to the Company the Preferred Holder
Satisfaction and Release Documents. 
 (c) Newco shall have executed and delivered to the Company the Newco Satisfaction and Release
Documents. 
 ARTICLE V 
 Covenants and Agreements 
 Section 5.1 Forbearance. Until the earlier of (i) the termination of this
Agreement in accordance with its terms and (ii) the occurrence of any Bankruptcy Event prior to the Closing, Newco shall forbear from exercising the Warrants or exercising any of its rights or remedies under the Notes or taking any other action
with respect to the Company or any of its Affiliates as a result of any Event of Default or event which, with the giving of notice, the lapse of time, or both, would become an Event of Default under the Notes. 
 Section 5.2 Conduct of Business. Except as expressly permitted or required by the terms of this Agreement, from the date of this Agreement to
the Closing, the Company shall, and shall cause its Subsidiaries to, conduct its or their businesses in the usual, regular and ordinary course in substantially the same manner as previously conducted and, to the extent consistent therewith, shall
use all reasonable efforts to keep intact their respective businesses, keep available the services of their current employees and preserve their relationships with customers, suppliers, licensors, licensees, distributors and others with whom they
deal to the end that their businesses shall be unimpaired at the Closing. Except as expressly permitted or required by this Agreement, the Company shall not, and shall not permit any Subsidiary to, take any action that would, or that would
reasonably be expected to, result in any of the conditions to the consummation of the Recapitalization Transactions set forth in Article IV not being satisfied. In addition (and without limiting the generality of the foregoing), except as
expressly permitted or contemplated by the terms of this Agreement, the Company shall not, and the Company shall not permit any Subsidiary to, do any of the following without the prior written consent of Newco (which consent shall not be
unreasonably withheld): 
 (i) amend its certificate of incorporation or by-laws; 
 (ii) sell, pledge, dispose of, grant, encumber, reclassify, combine, split, subdivide, redeem or otherwise acquire any shares of its capital stock or
issue any capital stock or any option, warrant or right relating thereto or any securities convertible into or exchangeable for any shares of capital stock; 
  

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 (iii) incur or assume any liabilities, obligations or indebtedness for borrowed money or guarantee any
such liabilities, obligations or indebtedness, other than in the ordinary course of business; 
 (iv) sell, lease, license or otherwise
dispose of any of its assets that are material, individually or in the aggregate, to the Company and its Subsidiaries, taken as a whole; or 
 (v) authorize any of, or commit or agree to take, whether in writing or otherwise, any of, the foregoing actions. 
 Section 5.3 Actions by the Parties. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties hereto will use its commercially reasonable efforts to take or cause to be taken all actions, and
to do, or cause to be done, all things necessary, proper or advisable under applicable law and regulations to consummate and make effective in the most expeditious manner practicable, the Recapitalization Transactions including (a) the
obtaining of all reasonably necessary actions and non-actions, waivers and consents, if any, from any Governmental Entity and the making of all necessary registrations and filings and the taking of all reasonable steps as may be necessary to obtain
an approval or waiver from, or to avoid an action or proceeding by, any Governmental Entity; (b) the obtaining of all necessary consents, approvals or waivers from any other Person; (c) the defending of any claim, investigation, action,
suit or other legal proceeding, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby; and (d) the execution of additional instruments reasonably necessary to consummate the
Recapitalization Transactions. Each party will promptly consult with the other and provide necessary information (including copies thereof) with respect to all filings made by such party with any agency or authority in connection with this Agreement
and the transactions contemplated hereby 
 Section 5.4 Acquisition Proposals. 
 (a) Notwithstanding anything in this Agreement to the contrary, the Company and its Subsidiaries and their respective directors, officers, employees,
investment bankers, financial advisors, attorneys, accountants, agents and other representatives (“Representatives”) shall have the right to, directly or indirectly: (i) initiate, solicit and encourage, whether publicly or
otherwise, the submission of any inquiries, proposals or offers or any other efforts or attempts that constitute or may reasonably be expected to lead to, any Acquisition Proposal, including by way of providing access to non-public information
pursuant to (but only pursuant to) an executed confidentiality agreement; provided that the Company shall promptly provide to Newco any material non-public information concerning the Company or its Subsidiaries that is provided to any person
given such access which was not previously provided or made available to the Investors; and (ii) enter into and maintain or continue discussions or negotiations with respect to Acquisition Proposals or otherwise facilitate any inquiries,
proposals, discussions or negotiations with respect to Acquisition Proposals. 
  

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 (b) At any time prior to the later of (x) the date that Newco Financing is consummated and at least
two-thirds in principal amount of the Notes are purchased by Newco or (y) August 14, 2009, the Company may terminate this Agreement if the following conditions are satisfied: 
 (i) the Company has received an Acquisition Proposal that the Special Committee has determined in good faith constitutes a Superior Proposal;

 (ii) prior to or concurrently with such termination the Company reimburses Newco in cash in immediately available funds for the Newco
Expenses in accordance with Section 6.2(b) (provided that in no event shall the Company be required to reimburse more than $150,000.00 of Newco Expenses), and agree to pay the Break Up Fee as and when required under
Section 6.2(c). 
 In connection with any such termination pursuant to this Section 5.4(b), Newco shall release the Bondholders from any
obligations to consummate the transactions under the Bondholder Sale Agreements and shall not take any action to interfere with the Superior Proposal approved by the Special Committee (other than to make a new proposal which it believes to be
superior to the Superior Proposal). 
 (c) At any time prior to obtaining the Company Requisite Vote, the Company may terminate this
Agreement if the following conditions are satisfied: 
 (i) the Company has received an Acquisition Proposal that the Special Committee has
determined in good faith (a) constitutes a Superior Proposal, and (b) failure to take such action could reasonably be expected to be inconsistent with its fiduciary duties under applicable law; 
 (ii) (1) the Company has provided Newco with not less than five (5) Business Days’ prior written notice that it intends to enter into a
definitive agreement implementing such Superior Proposal, attaching to such notice the most current version of such agreement as of the date of such written notice (it being agreed that, by itself, any determination by the Board of Directors of the
Company or the Special Committee to send such notice shall not constitute a breach of Section 5.4 or a termination event under this Section 5.4(c)); and (2) during such five (5) Business Day period, the Company
shall have negotiated, and shall have made its directors and officers available to negotiate, with Newco should Newco elect to propose adjustments in the terms and conditions of this Agreement such that, after giving effect thereto, such Acquisition
Proposal no longer constitutes a Superior Proposal and at the end of such five (5) Business Day period the Special Committee shall have determined in good faith (after consultation with outside legal counsel and its financial advisor) that such
Acquisition Proposal remains a Superior Proposal after giving effect to all the adjustments which may be offered pursuant to this clause (ii); and 
 (iii) prior to or concurrently with such termination the Company reimburses Newco in cash in immediately available funds for the Newco Expenses in accordance with Section 6.2(c) (provided that in no event shall the Company be
required to reimburse more than $150,000.00 of Newco Expenses) and agree to pay the Break Up Fee as and when required under Section 6.2(c). 
  

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 Section 5.5 Stockholders Meeting; Proxy Statement. 
 (a) If and to the extent required, the Company, acting through its Board of Directors, shall (i) as soon as reasonably practicable following the date
of this Agreement, take all action necessary to duly call, give notice of, convene and hold a meeting of its stockholders for the purpose of approving the Recapitalization Transactions and any requisite reverse stock split (the “Stockholders
Meeting”), (ii) include in the proxy statement to be sent to the stockholders of the Company in connection with the Stockholders Meeting (such proxy statement, as amended or supplemented, the “Proxy Statement”) the
recommendation of the Board of Directors that the stockholders of the Company vote in favor of approving the Recapitalization Transactions (the “Recommendation”) and (iii) use its commercially reasonable efforts to obtain the
Company Requisite Vote; provided that the Board of Directors of the Company may fail to make and the Special Committee may withdraw, modify or change the Recommendation and/or may fail to use such efforts if it shall have determined in good
faith, after consultation with outside legal counsel to the Special Committee, that such action is necessary in order for the Board of Directors to act in a manner consistent with its fiduciary duties under applicable law. 
 (b) If and to the extent that shareholder approval is required, then as soon as reasonably practicable following the date of this Agreement, the Company
shall, with the assistance of Newco, prepare and file with the SEC the Proxy Statement. Newco and the Company will cooperate with each other in the preparation of the Proxy Statement. Without limiting the generality of the foregoing, each of Newco
and the Preferred Holders will furnish to the Company the information relating to it required by the 1934 Act and the rules and regulations promulgated thereunder to be set forth in the Proxy Statement. The Company shall not file the preliminary
Proxy Statement or any amendment or supplement thereto, without providing Newco a reasonable opportunity to review and comment thereon (which comments shall be reasonably considered by the Company). The Company shall use its commercially reasonable
efforts to resolve all SEC comments with respect to the Proxy Statement as promptly as practicable after receipt thereof and to cause the Proxy Statement in definitive form to be cleared by the SEC and mailed to the Company’s stockholders as
promptly as reasonably practicable following filing with the SEC. The Company agrees to consult with Newco prior to responding to SEC comments with respect to the preliminary Proxy Statement. Each of the Preferred Holders, Newco and the Company
agree to correct any information provided by it for use in the Proxy Statement which shall have become false or misleading. The Company shall, as soon as reasonably practicable, notify Newco of the receipt of any comments from the SEC with respect
to the Proxy Statement and any request by the SEC for any amendment to the Proxy Statement or for additional information. 
 Section 5.6
Agreement of Preferred Holders. 
 (a) Each Preferred Holder agrees to exchange its shares of Preferred Stock for Common Stock in
accordance with the formulas set forth on Annex A so as to effect the Recapitalization Transaction. 
  

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 (b) If a shareholder vote is required, and provided that the Board of Directors has made the
Recommendation and the Special Committee has not withdrawn or changed the Recommendation in accordance with Section 5.5(a), at the Stockholders Meeting or at any adjournment thereof or in any other circumstances upon which a vote,
consent or other approval with respect to the Recapitalization Transactions is sought, each Preferred Holder shall vote (or cause to be voted) such Preferred Holder’s Preferred Stock in favor of approving the Recapitalization Transactions and
any requisite reverse stock split. In furtherance of the foregoing, each Preferred Holder shall also vote (or cause to be voted) such Preferred Holder’s Preferred Stock at any meeting of stockholders of the Company or at any adjournment thereof
or in any other circumstances upon which a Preferred Holder’s vote, consent or other approval is sought with respect to the Preferred Stock Adjustment. 
 (c) Provided that the Board of Directors has made the Recommendation and the Special Committee has not withdrawn or changed the Recommendation in accordance with Section 5.5(a), at any meeting of
stockholders of the Company or at any adjournment thereof or in any other circumstances upon which a Preferred Holder’s vote, consent or other approval is sought, such Preferred Holder shall vote (or cause to be voted) such Preferred
Holder’s Preferred Stock against (A) any Acquisition Proposal other than the Recapitalization Transactions unless such Acquisition Proposal is determined by a majority of the Special Committee to constitute a Superior Proposal, and
(B) any amendment of the Company’s Certificate of Incorporation or By-laws, which amendment would in any manner impede, frustrate, prevent or nullify the Recapitalization Transactions or change the voting rights of any class of capital
stock of the Company in a manner that would reasonably be expected to materially and adversely delay, impede or frustrate the Recapitalization Transactions (a “Frustrating Transaction”). Each Preferred Holder further agrees not to
commit or agree to take any action inconsistent with the foregoing. 
 (d) Each Preferred Holder agrees not to (A) sell, transfer,
pledge, assign or otherwise dispose of (including by gift, merger or otherwise by operation of law) (collectively, “Transfer”), or enter into any contract, option or other arrangement (including any profit sharing arrangement) with
respect to the Transfer of, such Preferred Holder’s Preferred Stock to any Person other than to an Investor that is a party hereto or (B) enter into any voting arrangement, whether by proxy, voting agreement or otherwise, in connection
with, directly or indirectly, the Recapitalization Transactions or an Acquisition Proposal. 
 (e) Each Preferred Holder hereby irrevocably
grants to, and appoints, Newco such Preferred Holder’s proxy and attorney-in-fact (with full power of substitution), for and in the name, place and stead of such Preferred Holder, to vote such Preferred Holder’s Preferred Stock, or grant a
consent or approval in respect of such Preferred Stock, in accordance with, and subject to the limitations of, this Section 5.6. The proxy set forth in this Section 5.6(d) shall terminate automatically without any further
action by any party hereto upon the sooner of (i) termination of this Agreement in accordance with its terms or (ii) the Proxy Statement does not contain the Recommendation or the Special Committee withdraws or changes the Recommendation
in accordance with Section 5.5(a). Each Preferred Holder represents that any proxies heretofore given in respect of such Preferred Holder’s Preferred Stock are not irrevocable, and that all such proxies have been heretofore or are
hereby revoked. Each Preferred Holder hereby affirms that the irrevocable proxy granted in this Section 5.6(d) is given 

  

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in connection with the execution of this Agreement, and that such irrevocable proxy is given to secure the performance of the duties of such Preferred Holder
under this Section 5.6(d). Each Preferred Holder hereby further affirms that such irrevocable proxy is coupled with an interest and may under no circumstances be revoked. Each Preferred Holder hereby ratifies and confirms all that such
irrevocable proxy may lawfully do or cause to be done by virtue hereof. 
 (f) Each Preferred Holder agrees that, in respect of any matter
other than those referred to in Section 5.6(a) to (e), including but not limited to approving any amendment of this Agreement that binds all Preferred Holders, the act of Preferred Holders holding a majority of the outstanding shares of
Preferred Stock (with each share of Preferred Stock being entitled to a single vote) shall be the act of all of the Preferred Holders. 
 Section 5.7 Stockholder Litigation. The Company shall give Newco the opportunity to participate in the defense or settlement discussions of any litigation against the Company and/or its directors relating to the transactions
contemplated by the Transaction Documents provided that such participation does not result in any waiver of the attorney-client privilege or prejudice the Company in such defense or settlement discussions. 
 ARTICLE VI 
 Termination 

 Section 6.1 Termination of Obligations to Effect Closing; Effects. 
 (a) The obligations of the Company, Newco and the Preferred Holders to effect the Closing may be terminated and the transaction contemplate hereby
abandoned prior to the Closing as follows: 
 (i) Upon the mutual written consent of the Company and Newco; 
 (ii) By either the Company or Newco at any time prior to the date that Newco certifies to the Company that it has received (a) executed Bondholder
Sale Agreements from holders of a sufficient amount of the Notes so as to enable Newco and the Company to effect the Exchange without acquiring any additional Notes; and (b) signature pages to this Agreement from any other Preferred Holders
with voting rights with respect to a sufficient number of shares so as to permit the Recapitalization Transactions to be effected without consent required from any other Preferred Holders. 
 (iii) by either the Company or Newco if any court of competent jurisdiction or other Governmental Entity shall have issued an order, decree or ruling,
or taken any other action (including enactment of a statute, rule or regulation) restraining, enjoining or otherwise prohibiting any of the transactions contemplated by this Agreement; 
 (iv) by either the Company or Newco if the Closing has not occurred on or prior to the date that is one hundred twenty (120) days following the
date of this Agreement, plus that number of additional days as shall equal the number of days elapsing between the time of the filing of the initial filing with the SEC of the Proxy Statement and the time the SEC notifies the Company it has no
further comments with respect thereto minus ten (10) days (the “Termination Date”); 
  

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 (v) by either the Company or Newco if the Stockholder Meeting shall have been convened and a vote with
respect to the adoption of this Agreement by the Company Requisite Vote shall not have been obtained (unless the Stockholder Meeting is adjourned or postponed to vote on the Recapitalization Transactions at a subsequent date, which in any event
shall not be later than five days prior to the Termination Date); 
 (vi) By the Company 
 (A) pursuant to and in accordance with Section 5.4(b) or (c). 
 (B) if there shall have been a breach of any of the covenants or agreements or a failure to be true of any of the representations or warranties set forth in this Agreement on the part of Newco, which breach or failure
to be true, either individually or in the aggregate and, in the case of the representations and warranties, measured on the date of this Agreement or, if provided herein, as of any subsequent date (as if made on such date), would result in the
failure of the conditions set forth in Section 4.1 or 4.3, as the case may be, and which is not cured within the earlier of (i) the Termination Date and (ii) thirty (30) days following written notice to Newco, or which by its
nature or timing cannot be cured within such time period; provided, however, that the Company shall not have the right to terminate this Agreement pursuant to this Section 6.1(a)(vi)(B) if the Company is then in material breach of any of
its covenants or agreements contained in this Agreement and such breach has resulted in the circumstances giving rise to Newco’s seeking to terminate its obligation to effect the Closing. 
 (C) if all the conditions set forth in Section 4.1 and 4.2 have been satisfied and Newco has failed to consummate the Recapitalization Transactions
no later than ten (10) Business Days after the satisfaction of such conditions. 
 (vii) By Newco 
 (A) if there shall have been a breach of any of the covenants or agreements or a failure to be true of any of the representations or warranties set forth
in this Agreement on the part of the Company (except the covenants and agreements that provide a right of termination pursuant to Section 5.4), which breach or failure to be true, either individually or in the aggregate and, in the case of the
representations and warranties, measured on the date of this Agreement or, if provided herein, as of any subsequent date (as if made on such date), would result in the failure of the conditions set forth in Section 4.1 or 4.2, as the case may
be, and which is not cured within the earlier of (i) the Termination Date and (ii) thirty (30) days following written notice to the Company, or which by its nature or timing cannot be cured within such time period; provided,
however, that Newco shall not have the right to terminate this Agreement pursuant to this Section 6.1(a)(vii)(A) if Newco is then in material breach of any of its covenants or agreements contained in this Agreement and such breach has
resulted in the circumstances giving rise to Newco’s seeking to terminate its obligation to effect the Closing. 
 (B) if all the
conditions set forth in Section 4.1 and 4.3 have been satisfied and the Company has failed to consummate the Recapitalization Transactions no later than ten (10) Business Days after the satisfaction of such conditions. 
  

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 (b) In the event of termination by the Company or Newco of its obligations to effect the Closing pursuant
to this Section 6.1, written notice thereof shall forthwith be given to the other parties by the Company and the other parties shall have the right to terminate their obligations to effect the Closing upon written notice to the Company
and the other parties hereto. 
 Section 6.2 Effect of Termination. 
 (a) In the event of the termination of this Agreement as provided in Section 6.1, written notice shall be given by the terminating party to
the other parties hereto and this Agreement shall forthwith become void and there shall be no liability on the part of the Investors or the Company, except that (i) the provisions of this Section 6.2 and Article VII shall
survive any such termination, and (ii) nothing herein will relieve any party from liability for fraud or for any willful breach of any representation or warranty or any willful breach prior to such termination of any covenant or agreement
contained herein or be deemed to waive any rights of specific performance of this Agreement available to a party by reason of any breach by the other party or parties of this Agreement. 
 (b) Whether or not the Recapitalization Transactions are consummated, except as otherwise specifically provided herein, all costs and expenses incurred
in connection with this Agreement and the transactions contemplated by this Agreement shall be paid by the party incurring such expenses. 
 (c) Notwithstanding the foregoing, in the event that this Agreement is terminated by the Company pursuant to Section 5.4 or Section 6.1(a)(vi)(A) on account of an Acquisition Proposal, then the Company shall
(i) reimburse Newco for the Newco Expenses by wire transfer of same-day funds concurrently with such termination (provided that in no event shall the Company be required to reimburse more than $150,000.00 of Newco Expenses, in the aggregate)
and (ii) in addition, in the event that the Company consummates a transaction contemplated by the Acquisition Proposal, pay to Newco the Break-up Fee by wire transfer of same-day funds concurrently with the consummation of such transaction. The
parties acknowledge that the agreements contained in this Section 6.2(c) are an integral part of the Recapitalization Transactions, and that, without these agreements, the parties would not enter into this Agreement. The parties hereto
agree and understand that in no event shall the Company be required to pay the Break-Up Fee on more than one occasion. Payment of the fees described in this Section 6.2 shall not be in lieu of damages incurred in the event of a breach of
this Agreement described in the proviso to the first sentence of Section 6.2(a), but otherwise shall constitute the sole and exclusive remedy of the parties in connection with any termination of this Agreement, except for specific
performance or other equitable relief or as otherwise set forth herein. 
 ARTICLE VII 
 Miscellaneous 
 Section 7.1
Survival. None of the representations, warranties, covenants and agreements in this Agreement or in any instrument delivered pursuant to this Agreement, including any rights arising out of any breach of such representations, warranties,
covenants and agreements, shall survive the Closing, except for (a) those covenants and agreements contained herein that by their terms apply or are to be performed in whole or in part after the Closing and (b) this Article VII.

  

 -22- 

 Section 7.2 Successors and Assigns. This Agreement may not be assigned by a party hereto
without the prior written consent of the other parties hereto. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this
Agreement. 
 Section 7.3 Counterparts; Faxes. This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile or pdf, which shall be deemed an original. 
 Section 7.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement. 
 Section 7.5 Notices. Unless otherwise provided, any notice required or permitted
under this Agreement shall be given in writing and shall be deemed effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given by telex or
telecopier or e-mail, then such notice shall be deemed given upon receipt, (iii) if given by mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three days after such
notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally recognized overnight air courier, then such notice shall be deemed given one Business Day after delivery to such carrier. All notices shall be
addressed to the party to be notified at the address as follows, or at such other address as such party may designate by ten days’ advance written notice to the other parties: 
 If to the Company: 
 Mark Carlesimo, Esq. 
 25 Central Ave. 
 Teterboro, NJ 07608 
 If to Newco: 
 Garrett Stonehouse 
 1 Morningside Drive
North 
 Building B, Suite 300 
 Westport, CT 06880 
 If to a Preferred Holder: 
 to the addresses set forth on the signature
pages or Annexes hereto. 
  

 -23- 

 Copies of all notices shall be simultaneously sent by the party providing such notice to the Special Committee at:

 Special Committee of the Board of Directors 
 c/o Richard
Kassar 
 Freshpet Inc. 
 400 Plaza Drive 
 1st Floor 
 Secaucus, NJ 07904 
 With a copy to: 
 John Edwin Depke 
 DLA Piper LLP (US) 
 1251 Avenue of the Americas 
 New York, NY 10020 
 Section 7.6 Expenses. Except
as provided in Sections 5.4 and 6.2(c), the parties hereto shall pay their own costs and expenses in connection herewith. 
 Section 7.7 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company, Newco and the Preferred Holders. Any amendment or waiver effected in accordance with this paragraph shall be binding upon Newco and each holder of any Shares purchased under this
Agreement at the time outstanding, each Preferred Holder of all such Shares, and the Company. 
 Section 7.8 Publicity. Except as
set forth below, no public release or announcement concerning the transactions contemplated hereby shall be issued by the Company, Newco or any Preferred Holder without the prior consent of the Company (in the case of a release or announcement by
Newco or any Preferred Holder) or Newco (in the case of a release or announcement by the Company) (which consents shall not be unreasonably withheld), except as such release or announcement may be required by law or the applicable rules or
regulations of any securities exchange or securities market, in which case the affected party shall allow the other parties hereto, to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement
in advance of such issuance. 
 Section 7.9 Severability. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the
maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the
parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect. 
  

 -24- 

 Section 7.10 Entire Agreement. This Agreement, including the Annexes, and the other
Transaction Documents constitute the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to
the subject matter hereof and thereof. 
 Section 7.11 Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 
 Section 7.12 Remedies Cumulative; Specific Performance. The rights and remedies of the parties hereto shall be cumulative (and not
alternative). The parties hereto agree that: (a) in the event of any breach or threatened breach by any party of any covenant, obligation or other provision set forth in this Agreement, the other parties shall be entitled (in addition to any
other remedy that may be available to it) to (i) a decree or order of specific performance or mandamus to enforce the observance and performance of such covenant, obligation or other provision, and (ii) an injunction restraining such
breach or threatened breach; and (b) such other parties shall not be required to provide any bond or other security in connection with any such decree, order or injunction or in connection with any related action. 
 Section 7.13 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County
and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process in
connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT
TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.  
 Section 7.14 Independent
Nature of Obligations and Rights. The obligations of each Person under any Transaction Document are several and not joint with the obligations of any other Person, and no Person shall be responsible in any way for the performance of the
obligations of any other Person under any Transaction Document. The decision of each Person to acquire Shares pursuant to the Transaction Documents has been made by such Person 

  

 -25- 

 
independently of any other Person. Nothing contained herein or in any Transaction Document, and no action taken by any Person pursuant thereto, shall be
deemed to constitute the parties hereto as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the parties hereto are in any way acting in concert or as a group with respect to such obligations or
the transactions contemplated by the Transaction Documents. Each Person acknowledges that no other Person has acted as agent for such Person in connection with making its investment hereunder and that no Person will be acting as agent of such Person
in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction Documents. Each Person 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 Person to be joined as an additional party in any proceeding for such purpose. The Company acknowledges that each of the other parties hereto
has been provided with the same Transaction Documents for the purpose of closing a transaction with multiple parties and not because it was required or requested to do so by any Person. 
 [signature page follows] 
  

 -26- 

 IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to
execute this Agreement as of the date first above written. 
  

			
	VELOCITY EXPRESS CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	MCG ACQUISITION LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

 The undersigned hereby reaffirm the Consent previously given to the agreements set forth herein and agree to
all terms set forth herein. If there is any conflict between the consents and this Agreement, this Agreement shall control. 
  

			
	PREFERRED HOLDERS
	
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 -27- 

 ANNEX A 
 PREFERRED STOCK CONVERSION OR EXCHANGE RATES 
 Exchange Rates 
  

											
	 	  	Preferred
Shares,
July 31
2009	  	Conversion
Ratio,
July 31,
2009	  	Common Equivalent
Shares, July 31 2009	  	Exchange
or
Conversion
Rate, Post	  	Common
Shares,
Post
	 Series M
	  	4,347,571	  	0.15819	  	687,736	  	1.71728	  	7,465,987
						
	 Series N
	  	946,138	  	0.15819	  	149,668	  	1.71728	  	1,624,781
						
	 Series O
	  	129,547	  	0.17171	  	22,245	  	1.86407	  	241,484
						
	 Series P
	  	2,279,826	  	0.23863	  	544,030	  	2.59052	  	5,905,930
						
	 Series Q
	  	5,245,115	  	0.79249	  	4,156,686	  	8.60316	  	45,124,555

 Velocity Express Corporation 
 Capitalization Table 
  

											
	 	  	Current - July 31, 2009	 	 	Proposed	 
	 	  	Common Equivalent
Shares	  	 	 	 	Common
Shares	  	 	 
	 Common Stock
	  	4,549,955	  	36.2	% 	 	4,549,955	  	1.5	% 
					
	 Employee / Advisor Options, Warrants
	  	398,421	  	3.2	% 	 	188,847	  	0.1	% 
					
	 Preferred Stock 1
	  	5,560,364	  	44.2	% 	 	60,362,736	  	19.9	% 
					
	 Note Holder Warrants Total
	  	2,063,944	  	16.4	% 	 	—  	  	0.0	% 
					
	 Note Holder non-Voting Shares
	  		  			 	30,333,033	  	10.0	% 
					
	 Management Group (Mgmt + Investor)
	  		  			 	207,895,761	  	68.5	% 
		  	 	  	 	 	 	 	  	 	 
					
	 Total
	  	12,572,685	  	100.0	% 	 	303,330,333	  	100.0	% 
		  	 	  	 	 	 	 	  	 	 

  

	1
	 Preferred Stock balances include PIK dividends issued plus earned and unissued through 7/31/09 

 Note: Certain of the Employee/Advisor Options and Warrants, including the warrants issued to THLPV in 2006 for 188,847 shares with a strike price of $0.04, have
anti-dilution protection. The Company intends to attempt to reduce such options and warrants to the number set forth in the Post-recapitalization column and to ask for waivers of anti-dilution rights, but no assurances can be given that such
reductions or waivers will be obtained, which may cause the numbers set forth herein to be subject to further adjustment.Exclusive Patent License Agreement

 Exhibit 10.321 
 CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 EXCLUSIVE PATENT LICENSE AGREEMENT 
 This EXCLUSIVE PATENT LICENSE AGREEMENT (the “Agreement”), effective as of this 18th day of June, 2009 (the “Effective Date”), is entered into by and between
Glycomed, Inc., a California corporation and a wholly owned subsidiary of Ligand Pharmaceuticals Incorporated (“Glycomed”), and ParinGenix, Inc., a Delaware corporation
(“ParinGenix”). 
 WHEREAS, Glycomed is the owner of the Patent Rights (as
defined below) and desires that the Patent Rights be used for the clinical development and subsequent commercialization of Licensed Products (as defined below) for the treatment and/or prevention of human disease. 
 WHEREAS, ParinGenix desires to acquire an exclusive license to the Patent Rights in the Field (as defined below) for such purposes.

 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1.
Definitions. Terms defined in this Section 1, and parenthetically defined elsewhere in this Agreement, will throughout this Agreement have the meaning here or there provided. Defined terms may be used in the singular or in the plural, as
sense requires. 
 1.1 “Affiliate” means any corporation or other business entity that controls, is controlled by or
is under common control with ParinGenix. “Controls,” “control” or “controlled” as used in this paragraph means direct or indirect ownership of more than fifty percent (50%) of the voting stock of such corporation,
or more than a fifty percent (50%) interest, direct or indirect, in the decision-making authority of such other business entity. 
 1.2 “Calendar Quarter” means each respective period of three (3) consecutive months ending on March 31, June 30, September 30 and December 31. 
 1.3 “FDA” means the United States Food and Drug Administration, or any successor agency thereto having the
administrative authority to regulate the marketing of human pharmaceutical products or biological therapeutic products, delivery systems and devices in the Territory. 
 1.4 “Field” means the use of Licensed Products for the treatment and prevention of human disease. 
 1.5 “First Commercial Sale” means the initial sale or transfer by or on behalf of ParinGenix, its Affiliates, or Sublicensees of a Licensed Product to a third party. 
 1.6 “Fiscal Year” means the twelve consecutive months commencing on January 1 and ending December 31. 
  

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 1.7 “Know-How” means all inventions, discoveries, trade secrets, information,
experience, data, formulas, procedures and results, including physical, chemical, biological, toxicological, pharmacological and clinical data, dosage regimens, control assays and product specifications, but excluding any Patent Rights, that
(a) is possessed as of the Effective Date by Glycomed, (b) is owned or Controlled by Glycomed as of the Effective Date, and (c) is necessary or useful in the use, development, design, registration, or sale of a Licensed Product.

 1.8 “License” means the licenses granted by Glycomed to ParinGenix pursuant to Section 2.1 below. 

1.9 “Licensed Product” means any pharmaceutical product that, but for the License, would infringe the Patent Rights,
including, without limitation, in each case all formulations and modes of administration thereof. The Parties agree, for purposes of this Agreement only, that PGX-100 and ODSH are Licensed Products. 
 1.10 “NDA” means a New Drug Application (as more fully defined in 21 C.F.R. 314.5 et seq.) and all
amendments and supplements thereto filed with the FDA, or the equivalent application filed with any equivalent agency or governmental authority outside the United States of America (including any supra-national agency such as in the European Union),
including all documents, data, and other information concerning a pharmaceutical product which are necessary for gaining regulatory approval to market and sell such pharmaceutical product. 
 1.11 “Net Sales” means the aggregate gross sales of Licensed Products to unaffiliated third parties in the Territory by
ParinGenix and its Affiliates, less amounts attributable to the Licensed Products, ParinGenix or its Affiliates determined to deduct and recognized in their respective financial statements in accordance with GAAP (or comparable financial standards)
and with ParinGenix’ and its Affiliates’ standard accounting principles consistent with GAAP (or comparable financial standards), including, but not limited to the following: (i) trade discounts, credits or allowances, including
slotting allowances and retroactive price adjustment (i.e. shelf-stock adjustments); (ii) credits or allowances additionally granted upon returns, rejections or recalls; (iii) freight, shipping and insurance charges; (iv) taxes,
duties or other governmental tariffs (other than income taxes); and (v) trade rebates, chargebacks, managed care rebates and government mandated rebates. In the case of a sale or a transfer to an Affiliate or Sublicensee, the Net Sales amount
of such sale or transfer shall not be deemed a “sale of Licensed Product in the Territory” subject to the Net Sales computation unless such Affiliate or Sublicensee is the end user consumer of the Licensed Product in which case such sale
would be deemed a “sale of Licensed Product in the Territory” subject to the Net Sales computation. 
 1.12 “Patent
Rights” means the United States letters patent as indicated in Attachment A, including without limitation, any divisions, continuations, continuations-in-part, reissues, re-examinations, renewals, substitutions, extensions,
provisionals, inventor’s certificates or supplementary protection certificates of such patent or patent applications and all foreign patents which are directed to the subject matter specifically described in the United States patents listed in
Attachment A. 
 1.13 “Royalty Term” means, on a Licensed Product-by-Licensed Product and
country-by-country located within the Territory basis, the period of time commencing on the First 

  

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Commercial Sale in such country and ending upon the later of (a) five (5) years after the date of First Commercial Sale of such Licensed Product in
such country, or (b) five (5) years after the expiration of the last to expire of an issued patent under the Patent Rights claiming the manufacture, use or sale of such Licensed Product in such country. 
 1.14 “Sublicense” means the present, future or contingent transfer of any license, right, option, first right to negotiate or
other right granted for PGX-100 or ODSH; or otherwise granted under the Patent Rights or Know-How, in whole or in part; provided, however, that Sublicensing shall not include any transfer or sale of all or substantially all of the assets of
ParinGenix where as part of such transaction ParinGenix transfers the License to a third party and the third party agrees to assume and be bound by all of ParinGenix’ obligations under this Agreement. 
 1.15 “Sublicensee” means a party that is granted a Sublicense. 
 1.16 “Sublicensing Revenue” means the revenue ParinGenix or its Affiliates receives from Sublicensees as a royalty payment from
the “net sales” (as defined in the Sublicense agreement) of a Licensed Product made in the Territory during the Royalty Term for such Licensed Product. 
 1.17 “Territory” means the United States of America and each other country in which (a) Glycomed notifies ParinGenix in writing that Patent Rights have issued, and (b) ParinGenix,
within thirty (30) days after its receipt of such notice, accepts in writing as an additional country in the “Territory.” 
 2.
License Grant; Know-How. 
 2.1 License. Subject to ParinGenix’ compliance with Articles 6 (License Issue Fee and
Royalties) and 7 (Payments; Records; Audits), and subject to the other terms and conditions of this Agreement, Glycomed hereby grants to ParinGenix, and ParinGenix accepts, (a) an exclusive, royalty-bearing license, with the right to
Sublicense, under the Patent Rights to import, make, have made, use, promote the use, and sell Licensed Products in the Field in the Territory, and (b) a non-exclusive, royalty-bearing license, with the right to Sublicense, under the Know-How
to import, make, have made, use, promote the use, and sell Licensed Products in the Field and in the Territory. In the event Glycomed is the owner of other patents involving desulfated heparin that are not included in the Patent Rights, Glycomed
hereby covenants to never sue ParinGenix for patent infringement or any related claim or cause of action arising out of or relating to such patents. 
 2.2 Know-How And Other Documentation. Upon the written request of ParinGenix, Glycomed shall use commercially reasonable efforts to assemble and transfer to ParinGenix such of the readily available
Know-How as it is able without incurring undue expense or without undue effort. Glycomed shall also use commercially reasonable efforts to assemble and transfer to ParinGenix any lab notebooks and other documentation relating to the Patent Rights
(collectively, “Documentation”) in its possession as it is able without incurring undue expense or without undue effort. 
 3. Sublicensing. 
  

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 3.1 Right to Grant Sublicenses. During the term of this Agreement, ParinGenix will have the
right to grant Sublicenses to Patent Rights and the Know-How in the Field and for the Territory. 
 3.2 ParinGenix Remains
Responsible. ParinGenix is responsible for the actions or omissions of its Sublicensees and must not grant any rights that are inconsistent with the rights granted to and obligations of ParinGenix hereunder. Any act or omission of a Sublicensee
that would be a breach of this Agreement if performed by ParinGenix will be deemed to be a breach by ParinGenix of this Agreement. 
 3.3 Required Sections. Each Sublicense granted by ParinGenix must provide that the obligations to Glycomed of Paragraphs 7.3 (Audits), and 18.5 (Insurance), and Articles 4 (Confidentiality Obligations), 11 (Patent Marking), 12
(Patent Matters), 14 (Indemnification), and 17 (Publicity) of this Agreement be binding upon the Sublicensee as if it were a party to this Agreement. ParinGenix will attach copies of these Paragraphs and Articles to all Sublicenses. 
 3.4 Sublicensing Revenue. ParinGenix shall ensure that all Sublicensing Revenue received by ParinGenix or its Affiliates shall only be in
cash. ParinGenix shall provide Glycomed with a copy of each executed Sublicense within thirty (30) days of the date of execution of such Sublicense. 
 4. Confidentiality. 
 4.1 Confidentiality Obligations. 
 (a) Each party shall, at all times during the term of this Agreement and for a ten (10) year period following termination or expiration
hereof, keep, and shall ensure that its officers, directors, employees, and agents keep, completely confidential and shall not publish or otherwise disclose and shall not use, directly or indirectly, for any purpose, any Confidential Information
furnished to it by the other party, except to the extent such disclosure or use is expressly permitted by the terms of this Agreement or is reasonably necessary for the performance of this Agreement. 
 (b) Glycomed recognizes that by reason of ParinGenix’ status as an exclusive licensee of the Patent Rights in the Field, ParinGenix has an
interest in Glycomed’s maintaining in confidence any information of Glycomed relating to the terms of this Agreement or the Licensed Product, except to the extent that disclosure or use is expressly permitted by the terms of this Agreement or
is reasonably necessary for the performance of this Agreement. 
 4.2 Permitted Disclosures. Each party may disclose
Confidential Information to the extent that such disclosure is: 
 (a) Made in response to a valid order of a court of competent
jurisdiction or other governmental body of a country or any political subdivision thereof of competent jurisdiction; provided, however, that the receiving party, if not legally prohibited, shall first have given notice to the disclosing party and
given the disclosing party a reasonable opportunity to quash such order and to obtain a protective order requiring that the Confidential Information and/or documents that are the subject of such order be held in confidence by such court or 

  

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agency or, if disclosed, be used only for the purposes for which the order was issued; and provided further that if a disclosure order is not quashed or a
protective order is not obtained, the Confidential Information disclosed in response to such court or governmental order shall be limited to that information which is legally required to be disclosed in such response to such court or governmental
order; 
 (b) Otherwise required by law, in the opinion of legal counsel to the receiving party; 
 (c) Made by the receiving party to (i) the regulatory authorities as required in connection with applications for regulatory approvals for
the Licensed Product; provided, however, that reasonable measures shall be taken to assure confidential treatment of such information or (ii) the United States Patent and Trademark Office or any equivalent agency or governmental authority
outside the United States of America in connection with any filing, prosecution, divisions, continuations, continuations-in-part, reissues, re-examinations, renewals, substitutions, extensions or provisionals involving any patent application or
issued patent; 
 (d) Made by the receiving party to third parties as may be necessary in connection with the development and
commercialization of the Licensed Product as contemplated by this Agreement, including, without limitation, Sublicensing; provided, however, that the receiving party in question shall in each case obtain from the proposed third party recipient a
written confidentiality undertaking containing confidentiality obligations no less onerous than those set forth in this Article 4; or 
 (e) Made by the receiving party to third parties regarding disclosure of the existence and terms of this Agreement under obligations of confidentiality (i) to agents, advisors, lenders and investors, and (ii) to potential
agents, advisors, lenders, purchasers (in mergers and acquisitions and/or licensing transactions), investors and other business partners, in connection with such Party’s activities hereunder, in connection with such Party’s financing
activities or if in the process of a mergers and acquisitions and/or licensing transaction, but only to the extent required for such activities. 
 4.3 Definition; Exclusions; Return of Confidential Information. 
 (a) “Confidential Information”
means (i) where Glycomed is the receiving party, any information relating to the terms of this Agreement or the Licensed Product, and the business affairs and other activities of ParinGenix or its Affiliates, and (ii) where ParinGenix is
the receiving party, any information relating to the terms of this Agreement or the Licensed Product, and the business affairs and other activities of Glycomed or its Affiliates. 
 (b) Notwithstanding the foregoing, Confidential Information shall not include any information that: 
 (i) at the time of disclosure is or later comes into public domain through no fault of receiving party; 
  

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 (ii) can be demonstrated by documentation or other competent proof to have been in the receiving
party’s possession prior to disclosure by the disclosing party; 
 (iii) is subsequently received by the receiving party from a
third party who is not bound by any obligation of confidentiality with respect to said information; or 
 (iv) that is independently
developed by or for the receiving party without reference to the disclosing party’s Confidential Information. 
 (c) Upon
termination of this Agreement, the parties, their Affiliates and Sublicensees shall return all Confidential Information transferred under this Agreement; provided, however, that each party shall be permitted to retain one complete set of the
Confidential Information for archival purposes to monitor compliance with this Section. 
 5. Diligence. 
 5.1 Commercially Reasonable Efforts. ParinGenix, during the term of this Agreement, will utilize its Commercially Reasonable Efforts, in
proceeding with the development, manufacture and sale of Licensed Products in the Territory. “Commercially Reasonable Efforts” for the purposes of this Article, means the efforts and resources which would be used (including without
limitation the promptness in which such efforts and resources would be applied) by a party consistent with its normal business practices, which in no event shall be less than the level of efforts and resources standard in the pharmaceutical industry
for a company similar in size and scope to such party, with respect to a product or potential product at a similar stage in its development or product life taking into account efficacy, safety, pre-clinical and clinical results or the lack thereof,
commercial value, regulatory issues factors, standard product planning, the competitiveness of alternative products of third parties that are in the marketplace, and the patent and other proprietary position of such product, and other market
factors. The efforts of a Sublicensee will be considered the efforts of ParinGenix for purposes of determining whether Commercially Reasonable Efforts have been met. In determining Commercially Reasonable Efforts with respect to a particular
Licensed Product, ParinGenix or its sublicensees may in all circumstances exercise reasonable and prudent business judgment and sound fiscal management in meeting their diligence and other obligations hereunder. 
 5.2 Additional Diligence Obligations. In addition to the obligations set forth in Section 5.1 above, ParinGenix, or a Sublicensee,
shall have a First Commercial Sale of a Licensed Product in the Territory no later than the earlier of: (a) June 30, 2015, or (b) two years after notification of approval from the FDA with respect to the first Licensed Product to be
so approved. 
 5.3 Termination for Failure to Comply with Diligence. If ParinGenix fails to adhere to the diligence
obligations set forth in this Article 5 (Diligence) Glycomed may terminate the Agreement; provided however, that ParinGenix may extend the date required for a First Commercial Sale for one year, and thereafter on a year-by-year basis, with the
payment of fifty thousand dollars ($50,000) for each annual extension period prior to the expiration of the then current diligence period. 
  

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 6. License Issue Fee and Royalties. 
 6.1 License Issue Fee. As partial consideration for the rights conveyed by Glycomed under this Agreement, ParinGenix shall pay to Glycomed
a one-time, non-refundable, non-creditable license issue fee of Three Hundred Fifty Thousand Dollars ($350,000), due and payable in full on the Effective Date. 
 6.2 Royalties. ParinGenix and its Affiliates shall pay Glycomed royalties on Net Sales of Licensed Products on a Licensed Product by Licensed Product and country by country located in the Territory basis
at the rate of three percent (3.0%). The payments specified in this Section 6.2 (collectively, “Royalty Payments”) shall be payable only for the period equal to the Royalty Term for such Licensed Product. 
 6.3 Sublicensing Revenue. ParinGenix and its Affiliates shall pay Glycomed one hundred percent (100%) of the Sublicensing Revenue
received by ParinGenix and its Affiliates from a Sublicensee if the royalty received by ParinGenix or its Affiliates on “net sales” of any Licensed Product made by such Sublicensee is three percent (3%) or less. In the event the
royalty received by ParinGenix or its Affiliates from a Sublicensee on “net sales” of any Licensed Product made by such Sublicensee is greater than three percent (3%), ParinGenix and its Affiliates shall pay Glycomed the amount of the
Sublicensing Revenue representing three percent (3%) of “net sales” and ParinGenix or its affiliates shall retain the difference. 
 6.4 Taxes. The parties agree to cooperate with one another and use reasonable efforts to avoid or reduce obligations for any and all income or other taxes required by Applicable Law to be withheld or deducted from any of the
royalty and other payments made by or on behalf of a party hereunder (“Withholding Taxes”). The applicable paying party under this Agreement (the “Paying Party”) shall, if required by applicable law, deduct from any
amounts that it is required to pay to the recipient party hereunder (the “Recipient Party”) an amount equal to such Withholding Taxes, provided that the Paying Party shall give the Recipient Party reasonable notice prior to paying
any such Withholding Taxes. Such Withholding Taxes shall be paid to the proper taxing authority for the Recipient Party’s account and evidence of such payment shall be secured and sent to recipient within one (1) month of such payment. The
Paying Party shall, at the Recipient Party’s cost and expense, do all such lawful acts and things and sign all such lawful deeds and documents as the Recipient Party may reasonably request to enable the Paying Party to take advantage of any
applicable legal provision or any double taxation treaties with the goal of paying the sums due to the Recipient Party hereunder without withholding or deducting any Withholding Taxes. For the sake of clarity, in no event shall the Paying Party be
required to pay any additional amounts, whether in the nature of a “gross up” payment or otherwise, to the Recipient Party on account of such Withholding Taxes. 
 6.5 No Multiple Royalties. No multiple royalties will be payable to Glycomed because any Licensed Product or its manufacture, use, or sale are or will be covered by more than one patent application or
issued patent included as part of Patent Rights. 
 6.6 Patent Rights Invalidity. Notwithstanding anything to the contrary
contained herein, if any patent or any claim thereof included within the Patent Rights shall be found invalid by a court of competent jurisdiction, ParinGenix’ obligation to pay Glycomed royalties based on 

  

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such patent or claim or any claim patentably indistinct therefrom shall cease as of the date of such decision. ParinGenix shall not, however, be relieved
from paying Glycomed any royalties, fees, expenses, or other liabilities that accrued prior to the date of such decision or that are based on any of Glycomed’s Patent Rights not the subject of such decision. In the event that the patent office
in the country or region where a specific patent application has been filed issues a final rejection, of any patent or patent application or claim thereof included within the Patent Rights, ParinGenix’ obligation to pay Glycomed royalties based
on such patent or claim or any claim patentably indistinct there from shall cease as of the date of such decision, unless and until after such rejection is rescinded or reversed and such patent or claims are allowed. ParinGenix shall not, however,
be relieved from paying Glycomed any royalties, fees, expenses, or other liabilities that accrued prior to the date of such rejection or that are based on any of Glycomed’s Patent Rights not the subject of such rejection. 
 7. Payment; Records; Audits. 
 7.1
Payment; Reports. Royalty and Sublicensing Revenue payments shall be calculated and reported for each Calendar Quarter. Reports shall be provided for each Calendar Quarter whether or not a payment is due for such reporting period. All
payments due to Glycomed as a result of Net Sales by ParinGenix or its Affiliates under this Agreement shall be paid within forty five (45) days of the end of each Calendar Quarter (other than the Calendar Quarter ended December 31, which
shall be ninety (90) days), unless otherwise specifically provided herein. All payments due to Glycomed as a result of Sublicensing Revenue received by ParinGenix or its Affiliates under this Agreement shall be paid within sixty (60) days
of the end of each Calendar Quarter (other than the Calendar Quarter ended December 31, which shall be ninety (90) days), unless otherwise specifically provided herein. Each payment shall be accompanied by a report of Net Sales of Licensed
Products by ParinGenix and its Affiliates and Sublicensing Revenue received by ParinGenix and its Affiliates each in sufficient detail to permit confirmation of the accuracy of the payment made, including, without limitation and on a
country-by-country basis, the number of Licensed Products sold, the gross sales and Net Sales of such Licensed Products, the amount of Sublicensing Revenue received, the royalty payments payable, the method used to calculate the royalty payments,
and the exchange rates used. ParinGenix shall keep, and shall cause its Affiliates and Sublicensees to keep, complete and accurate records pertaining to the sale or other disposition of Licensed Products in sufficient detail to permit Glycomed to
confirm the accuracy of all payments due hereunder. 
 7.2 Manner and Place of Payment. All payments hereunder shall be payable
in U.S. dollars by wire transfer in immediately available funds to a bank and account designated in writing by Glycomed, unless otherwise specified in writing by Glycomed. 
 7.3 Audits. For two (2) years after the period of each report required by this Article, ParinGenix and its Affiliates shall keep (and
shall use commercially reasonable efforts to cause its Sublicensees to keep) complete and accurate records pertaining to the sale or other disposition of Licensed Products and the receipt of Sublicensing Revenue in sufficient detail to permit
Glycomed to confirm the accuracy of all payments due hereunder. Glycomed shall have the right to cause an independent, certified public accountant reasonably acceptable to ParinGenix to audit such records to confirm Net Sales, Sublicensing Revenue,
royalties payments and other payments for any Fiscal Year ending not more than twenty-four (24) months prior to the date of 

  

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such request. Such audits may be exercised during normal business hours upon a minimum of sixty (60) days prior written notice to ParinGenix, but no
more than frequently than once per year. Prompt adjustments shall be made by the parties to reflect the results of such audit. Glycomed shall bear the full cost of such audit unless such audit discloses an underpayment by ParinGenix of more than
five percent (5%) of the amount of royalty payments or other payments due under this Agreement, in which case, ParinGenix shall bear Glycomed’s actual out-of-pocket cost of such audit and shall promptly remit to Glycomed the amount of any
underpayment. 
 7.4 Late Payments. In the event that any payment due under this Agreement is not made when due, the payment
shall accrue interest from the date due at the rate of one percent (1.0%) per month; provided, however, that in no event shall such rate exceed the maximum legal annual interest rate. The payment of such interest shall not limit Glycomed from
exercising any other rights it may have as a consequence of the lateness of any payment. Glycomed shall be reimbursed for all of its actual out-of-pocket costs of collection, including reasonable attorney fees, to collect any unpaid amounts due to
Glycomed. 
 8. Term and Termination of Agreement. 
 8.1 Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and continue on a Licensed Product by Licensed Product and country by
country located within the Territory basis until the expiration of the last Royalty Term for any Licensed Product with respect to which ParinGenix has the License, unless otherwise terminated earlier as provided for under the terms of the Agreement.

 8.2 Mutual Termination for Breach. Either party may terminate this Agreement effective upon thirty (30) days prior
written notice of termination to the other party, if such other party materially breaches this Agreement and does not cure such breach within sixty (60) days after receiving a notice of breach of this Agreement. 
 8.3 Other Mutual Termination Rights. This Agreement and the license granted hereunder will terminate immediately in the event that:
(a) a party seeks liquidation, reorganization, dissolution or winding-up of itself, is insolvent or evidence exists as to its insolvency, or such party makes any general assignment for the benefit of its creditors; (b) a petition is filed
by or against a party, or any proceeding is initiated by or against such party, or any proceeding is initiated against such party as a debtor, under any bankruptcy or insolvency law, unless the laws then in effect void the effectiveness of this
provision; (c) a receiver, trustee, or any similar officer is appointed to take possession, custody, or control of all or any part of a party’s assets or property; or (d) a party adopts any resolution of its Board of Directors or
stockholders for the purpose of effecting any of the foregoing. 
 8.4 Rights in Bankruptcy. All rights and licenses granted
under or pursuant to this Agreement by Licensor are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual property” as defined under Section 101 of
the U.S. Bankruptcy Code. The parties agree that ParinGenix, as licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code. The parties further agree that, in the
event of the commencement of a bankruptcy proceeding by or against Glycomed under the U.S. Bankruptcy Code, ParinGenix 

  

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shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual
property, and same, if not already in its possession, shall be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon their written request therefore, unless Glycomed elects to continue to perform all of its
obligations under this Agreement or (b) if not delivered under (a) above, following the rejection of this Agreement by or on behalf of Glycomed upon written request therefore by ParinGenix. 
 8.5 No Limitation on Remedies. The provisions under which this Agreement may be terminated will be in addition to any and all other legal
remedies which either party may have for the enforcement of any and all terms hereof, and do not in any way limit any other legal remedy such party may have. 
 8.6 Effect of Termination. Subject to Section 8.5 above, termination of this Agreement will terminate all rights and licenses granted to ParinGenix under this Agreement and any and all Sublicenses
will be immediately and automatically assigned to Glycomed. Termination of this Agreement will not relieve either party from any financial obligation to the other party arising from this Agreement and that accrues prior to termination, or from
performing according to any and all other provisions of this Agreement that survive termination. 
 8.7 Final Royalty Report.
Within ninety (90) days of termination of this Agreement, ParinGenix shall submit a final royalty report. Any royalty payments due to Glycomed will become immediately due and payable upon termination. 
 9. Notices. All notices or other communications that are required or permitted hereunder shall be in writing and delivered personally, sent by telecopier
(and promptly confirmed by personal delivery or overnight courier), or sent by nationally-recognized overnight courier, addressed as follows: 
  

					
	 In the case of ParinGenix:
	  	 Stephen Marcus, M.D.
 President and CEO
 ParinGenix, Inc.
 1792 Bell Tower Lane
 Weston, FL 33326
	  	
			
	 In the case of Glycomed
	  	 ATTN: General Counsel
 Glycomed
Incorporated
 10275 Science Center Drive
 San Diego, CA 92121

 Facsimile No.: (858) 550-7272
	  	

 10. Proprietary Rights. Except for Section 2 and Section 12.1, neither party will, by
performance under this Agreement, obtain any ownership interest in Patent Rights, Know-How or any other proprietary rights or Confidential Information of the other party. 
 11. Patent Marking. Subject to applicable law, ParinGenix must mark (where practical), and must require any Sublicensee to mark, any and all material forms of Licensed Products or 

  

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packaging pertaining thereto made and sold by ParinGenix (and/or by its Sublicensees) in the United States with an appropriate patent marking identifying the
pendency of any U.S. patent application and/or any issued U.S. patent forming any part of Patent Rights. 
 12. Patent Matters. 
 12.1 Prosecution Matters. 
 (a) Glycomed shall use commercially reasonable efforts to prosecute and maintain the Patent Rights in the Territory. In the event that Glycomed determines it is no longer reasonable to continue the prosecution of one or more of the
Patent Rights in the Territory, then Glycomed shall so notify ParinGenix promptly in writing. Upon receipt of any such notice by Glycomed, ParinGenix shall have the right, but not the obligation, to support the continued prosecution or maintenance,
of such Patent Rights in the Territory, at ParinGenix’ expense. If ParinGenix elects to continue such support, then ParinGenix shall notify Glycomed in writing within thirty (30) days of receipt of the initial Glycomed notice and Glycomed
shall irrevocably, absolutely and unconditionally transfer to ParinGenix all of Glycomed’s right title and interest in and to such Patent Right (in which case such transferred Patent Rights shall no longer be deemed to be “Patent
Rights” under this Agreement). The cost of such support shall not be creditable against further royalties on account of Net Sales generated in the Territory. If ParinGenix elects not to continue such support then ParinGenix shall have no
further rights or obligations under this Agreement with respect to such Patent Rights in the Territory and the license granted pursuant to Article 3 of this Agreement shall terminate with respect to such Patent Rights in the Territory. 

(b) Glycomed shall regularly provide ParinGenix with copies of all documents filed hereunder for Patent Rights in the Territory and other
material submissions and correspondence with the patent offices, as promptly as received, for review by ParinGenix. In addition, Glycomed shall provide ParinGenix and its patent counsel with an opportunity to consult with Glycomed regarding the
filing and contents of any such documents, submission or response, and the timely advice and suggestions of ParinGenix and its patent counsel shall be taken into reasonable consideration by Glycomed and its legal counsel in connection with such
filing. 
 12.2 Enforcement of Patents and Trademarks. 
 (a) If either party considers that any Patent Rights in the Field and in the Territory are being infringed by a third party’s activities, it
shall notify the other party and provide it with any evidence of such infringement that is reasonably available. Upon written notice to Glycomed, ParinGenix shall have the first right, but not the obligation, at its own expense to attempt to remove
such infringement by commercially appropriate steps, including filing an infringement suit or taking other similar action. If required by law in order for ParinGenix to prosecute such suit, Glycomed shall join such suit as a party, at
ParinGenix’ expense; and, in such instance, Glycomed shall be represented by counsel chosen by ParinGenix. In the event ParinGenix fails to take commercially appropriate steps with respect to an infringement that is likely to have a material
adverse effect on the sale of a Licensed Product in the Territory within three (3) months following notice of such infringement, Glycomed shall 

  

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have the right to do so at Glycomed’s expense; provided, however, that if ParinGenix has commenced negotiations with an alleged infringer for
discontinuance of such infringement within such three-month period, ParinGenix shall have an additional six (6) months to conclude its negotiations before Glycomed may bring suit for such. The party not enforcing the applicable Patent Rights
shall provide reasonable assistance to the other party, including providing access to relevant documents and other evidence and making its employees available at reasonable business hours, subject to the enforcing party’s reimbursement of any
reasonable out-of-pocket expenses incurred by the non-enforcing party. To ensure that no rights of Glycomed are compromised in any such action, ParinGenix shall not settle any such claim, or enter into any settlement agreement that admits that any
third party product does not infringe the Patent Rights or that any Patent Rights are invalid or unenforceable without Glycomed’s prior written consent, which consent shall not be unreasonably withheld, delayed, denied or conditioned.

 (b) Any amounts recovered by either party pursuant to Section 12.2(a), whether by settlement or judgment, shall be used to
reimburse the parties for their reasonable out-of-pocket expenses in making such recovery (which amounts shall be allocated pro rata if insufficient to cover the totality of such expenses), with any remainder being retained by or paid to ParinGenix;
provided, however, that ParinGenix shall pay to Glycomed an amount of monies or cash equivalents received from any alleged infringer (net of any amounts applied towards expense and cost reimbursement as set forth above) equivalent to royalties which
Glycomed would have received on Net Sales. 
 12.3 Infringement of Third Party Rights. 
 (a) In the event that a third party institutes a patent, trade secret, or other infringement suit against ParinGenix or its Affiliates or
Sublicensees during the term of this Agreement, alleging that the research, development, manufacture, use, or sale of the Licensed Product in the Territory infringes one or more patent or other intellectual property rights held by such third party
in the Territory, then ParinGenix shall have the sole right to assume direction and control of the defense of claims arising therefrom and Glycomed shall cooperate with ParinGenix in such defense as reasonably requested. 
 (b) Nothing in this Section 12.3 shall prevent either party, at its own expense, from obtaining any license or other rights from Third
Parties it deems appropriate in order to permit the full and unhindered exercise of its rights under this Agreement. 
 (c) The
provisions of this Section 12.3 set forth the parties’ exclusive and sole remedies against each other in respect of the subject matter covered in Article 12. 
 12.4 Hatch-Waxman. 
 (a) In the event either party receives notice pertaining to any
patent included within Patent Rights pursuant to the Hatch-Waxman Amendments to the Federal Food Drug and Cosmetic Act, the Medicare Prescription Drug, Improvement and Modernization Act or any other provision of or amendment to the Federal Food Drug
and Cosmetic Act (hereinafter, “the Act”) including but not limited to notices from persons who have filed an Abbreviated New Drug Application (“ANDA”) or a “paper” New Drug Application, (“paper NDA”), or in
the case 

  

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of an infringement of the Patent Rights as defined in Section 271(e) of Title 35 of the United States Code, such party shall notify the other party
promptly but in no event later than five (5) days after receipt of such notice. 
 (b) In the event of an act of infringement by
a third party under the Act, ParinGenix shall have the right, but not the obligation, to institute a patent infringement action as provided in the Act. If required by law in order for ParinGenix to prosecute such suit, Glycomed shall join such suit
as a party, at ParinGenix’ expense; and, in such instance, Glycomed shall be represented by counsel chosen by Paringenix. 
 (c)
Glycomed hereby authorizes ParinGenix to include in any NDA for a Licensed Product, a list of patents included within Glycomed’s Patent Rights identifying Glycomed as patent owner, and further authorizes ParinGenix to cause such patents to be
listed as appropriate in the FDA’s list of “Approved Drug Products With Therapeutic Equivalence Evaluations” (commonly known as the “Orange Book”). 
 13. Representations, Warranties, Covenants and Limitations. 
 13.1 Representations,
Warranties and Covenants. Each party hereby represents, warrants, and covenants to the other party as of the Effective Date as follows: 
 (a) such party is a corporation duly organized and in good standing under the laws of the state of its incorporation, and has full power and authority and the legal right to own and operate its property and assets and to carry on its
business as it is now being conducted; 
 (b) such party (i) has the power and authority and the legal right to enter into the
Agreement and perform its obligations hereunder, and (ii) has taken all necessary action on its part required to authorize the execution and delivery of the Agreement and the performance of its obligations hereunder. The Agreement has been duly
executed and delivered on behalf of such party and constitutes a legal, valid, binding obligation of such party and is enforceable against it in accordance with its terms subject to the effects of bankruptcy, insolvency, or other laws of general
application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity, whether enforceability is considered a proceeding at law or equity; 
 (c) such party is not aware of any pending or threatened litigation (and has not received any communication) that alleges that such party’s
activities related to this Agreement have violated, or that by conducting the activities as contemplated herein such party would violate, any of the intellectual property rights of any other person; 
 (d) all necessary consents, approvals and authorizations of all governmental authorities and other persons or entities required to be obtained by
such party in connection with the Agreement have been obtained; and 
 (e) the execution and delivery of the Agreement and the
performance of such party’s obligations hereunder (i) do not conflict with or violate any requirement of applicable law or regulation or any provision of articles of incorporation, bylaws or limited 

  

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partnership agreement of such party, as applicable, in any material way, and (ii) do not conflict with, violate, or breach or constitute a default or
require any consent under, any contractual obligation or court or administrative order by which such party is bound. 
 13.2
Glycomed’s Representations and Warranties. Glycomed represents and warrants to ParinGenix as of the Effective Date: 
 (a)
it has the lawful right to grant the License and it possesses complete and unrestricted ownership rights in the Patent Rights; 
 (b)
it has not received any claims or threatened claims that any of the Patent Rights, Know-How or Licensed Products violate the intellectual property rights of any third party; and 
 (c) to the best of its knowledge, the Patent Rights are valid, duly issued, and were not obtained as a result of fraud or inequitable conduct and
all known prior art was disclosed to the United States Patent and Trademark Office during prosecution. 
 13.3 No Other
Representations, Warranties or Covenants. Nothing in this Agreement will be construed as: 
 (a) A representation, warranty, or
covenant by Glycomed as to the patentability, scope, or usefulness of the Patent Rights; or 
 (b) A representation, warranty, or
covenant by Glycomed that anything made, used, sold, or otherwise disposed of under any license (or subsequent sublicense) granted in this Agreement is or will be free from infringement of third party patents, proprietary rights, or other
intellectual property rights. 
 13.4 DISCLAIMER. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH PARTY
DISCLAIMS ALL WARRANTIES WHATSOEVER, WITH RESPECT TO THE PATENT RIGHTS, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES AS TO THE MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OF PATENT CLAIMS, ISSUED OR PENDING, OR THAT THE
MANUFACTURE, USE OR SALE OF THE LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS. 
 14. Indemnification.

 14.1 Indemnification by ParinGenix. ParinGenix shall indemnify Glycomed, Glycomed’s directors, officers, employees and
agents (a “Glycomed Indemnified Party”), and defend and save each of them harmless, from and against any and all suits, investigations, claims, damages, liabilities, costs, and expenses (including, without limitation,
reasonable attorneys’ fees and expenses) (collectively, “Losses”) arising from or occurring as a result of the development, clinical testing, manufacture, use, or sale of a Licensed Product by
ParinGenix, its Affiliates or Sublicensees, except to the extent such Losses arise from or occur as a result of the misconduct of a Glycomed Indemnified Party or any breach by Glycomed under this Agreement. 
  

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 14.2 Mutual Indemnification. Additionally, each party shall indemnify the other party and
its directors, officers, employees and agents, and defend and save each of them harmless, from and against any and all Losses arising from or occurring as a result of (a) a breach by such party of this Agreement or (b) any grossly
negligent act or omission or the willful misconduct of such party. 
 14.3 Procedures. Each indemnified party agrees to give
the indemnifying party prompt written notice of any Losses or discovery of fact upon which such indemnified party intends to base a request for indemnification under Section 14.1 or 14.2. Each party shall furnish promptly to the other party
copies of all papers and official documents received in respect of any Losses. The indemnified party shall cooperate with the indemnifying party in providing witnesses and records necessary in the defense against any Losses. With respect to any
Losses relating solely to the payment of money damages and that will not result in the indemnified party’s becoming subject to injunctive or other relief or otherwise adversely affecting the business of the indemnified party in any manner, and
as to which the indemnifying party shall have acknowledged in writing the obligation to indemnify the indemnified party hereunder, the indemnifying party shall have the sole right to defend, settle, or otherwise dispose of such claim, on such terms
as the indemnifying party, in its sole discretion, shall deem appropriate. The indemnifying party shall obtain the written consent of the indemnified party, which shall not be unreasonably withheld, prior to ceasing to defend, settling, or otherwise
disposing of any Losses if as a result thereof the indemnified party would become subject to injunctive or other equitable relief or any remedy other than the payment of money by the indemnifying party. The indemnifying party shall not be liable for
any settlement or other disposition of a Loss by the indemnified party that is reached without the written consent of the indemnifying party. Except as provided in this Section 14.3, the costs and expenses, including fees and disbursements of
counsel, incurred by any indemnified party in connection with any claim shall be reimbursed on a Calendar Quarter basis by the indemnifying party, without prejudice to the indemnifying party’s right to contest the indemnified party’s right
to indemnification and subject to refund in the event the indemnifying party is ultimately held not to be obligated to indemnify the indemnified party. 
 14.4 LIMITATION ON LIABILITY. IN NO EVENT SHALL EITHER PARTY OR ANY OF THEIR AFFILIATES BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, WHETHER IN CONTRACT, WARRANTY, NEGLIGENCE,
TORT, STRICT LIABILITY OR OTHERWISE, ARISING OUT OF (A) THE MANUFACTURE, USE OR SALE OF ANY LICENSED PRODUCT OR (B) ANY BREACH OF OR FAILURE TO PERFORM ANY OF THE PROVISIONS OF THIS AGREEMENT. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED IN THIS AGREEMENT, EXCEPT FOR A PARTY’S INDEMNIFICATIONS OBLIGATIONS OR A BREACH OF ITS CONFIDENTIALITY OBLIGATIONS AND EXCEPT FOR PARINGENIX’ OBLIGATION TO MAKE THE PAYMENTS SET FORTH IN SECTION 6 HEREOF, A PARTY’S TOTAL
LIABILITY TO THE OTHER PARTY FOR ANY MATTER ARISING FROM OR RELATED TO THIS AGREEMENT SHALL BE LIMITED TO THE TOTAL AMOUNT OF FEES OWED TO GLYCOMED UNDER SECTION 6 OF THIS AGREEMENT. 
  

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 15. Applicable Laws. 
 15.1 ParinGenix will abide by all applicable federal, state, and local laws and regulations pertaining to the development and commercialization of Licensed Products under this Agreement. 
 15.2 This Agreement will be construed in accordance with, and its performance will be governed by, the laws of the State of California, without
giving effect to the principles of conflict of laws of California. 
 16. Dispute Resolution. In the event of any controversy or claim arising
out of, relating to or in connection with any provision of this Agreement, the parties shall try to settle their differences amicably between themselves first, by referring the disputed matter to the Chief Executive Officer of Glycomed and the Chief
Executive Officer of ParinGenix. Either party may initiate such informal dispute resolution by sending written notice of the dispute to the other party, and, within thirty (30) days after such notice, such representatives of the parties shall
meet for attempted resolution by good faith negotiations. If the representatives of the parties have not been able to resolve the dispute within thirty (30) days after such negotiations, then any and all claims, disputes or controversies
arising under, out of, or in connection with this Agreement, may be resolved by litigation in court. 
 17. Publicity. The parties may decide
to issue press releases announcing the execution of this Agreement and agree that each party may desire or be required to issue subsequent press releases relating to the Agreement or activities thereunder. ParinGenix hereby expressly agrees not to
use the name of Glycomed without Glycomed’s prior written approval (except as required by applicable law, stock exchange rules or for any purpose described in Section 4.2). Following the initial press releases announcing this Agreement,
either party shall be free to disclose, without the other party’s prior written consent, the existence of this Agreement, the identity of the other party and those terms of the Agreement which have already been publicly disclosed in accordance
herewith. 
 18. General. 
 18.1 Validity of Provisions. If any provision of this Agreement will be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not be in any way affected or
impaired thereby. 
 18.2 Waiver. No omission or delay of either party hereto in requiring due and punctual fulfillment of the
obligations of any other party hereto will be deemed to constitute a waiver by such party of its rights to require such due and punctual fulfillment, or of any other of its remedies hereunder. 
 18.3 Amendment. No amendment or modification hereof will be valid or binding upon the parties unless it is made in writing, cites this
Agreement, and signed by duly authorized representatives of Glycomed and ParinGenix. 
 18.4 Assignment. This Agreement, and
any rights or obligations hereunder, may not be assigned, transferred or delegated in whole or in part by either party, whether except with the 

  

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other party’s express written approval, provided, however, that either party may, without such consent, assign this Agreement and its rights and
obligations hereunder to an Affiliate (but only for so long as such person remains an Affiliate of the assignor and the assignor remains liable with regard to such assignment), to the purchaser of all or substantially all of its assets related to
the Licensed Product or the business, or to its successor entity or acquirer in the event of a merger, consolidation or change in control of Glycomed or ParinGenix, as the case may be. Any attempted assignment, transfer or delegation in breach of
this provision will be deemed to be void and no effect. Except as otherwise provided, this Agreement will be binding upon and inure to the benefit of the parties’ successors and lawful assigns. 
 18.5 Insurance. ParinGenix shall have and maintain such type and amounts of liability insurance covering the development, clinical trial,
manufacture, supply, use and sale of Licensed Product as is normal and customary in the pharmaceutical industry generally for parties similarly situated, and will upon request provide Glycomed with a copy of its policies of insurance in this regard,
along with amendments and revisions thereto. 
 18.6 Headings. The headings of the several sections of this Agreement are
inserted for convenience and reference only, and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 18.7 Glycomed’s Disclaimers. Neither Glycomed, nor any of its scientists, researchers, employees, officers, trustees or agents, assume any responsibility for the manufacture, product specifications, sale or use of the
Licensed Products that are manufactured by or sold by ParinGenix. 
 18.8 No Endorsement. By entering into this Agreement,
Glycomed neither directly nor indirectly endorses any product or service provided, or to be provided, by ParinGenix, whether directly or indirectly related to this Agreement. ParinGenix will not state or imply that this Agreement is an endorsement
by Glycomed or its employees. 
 18.9 Independent Contractors. The parties hereby acknowledge and agree that each is an
independent contractor and that neither party will be considered to be the agent, representative, master or servant of the other party for any purpose whatsoever, and that neither party has any authority to enter into a contract, to assume any
obligation or to give warranties or representations on behalf of the other party. Nothing in this relationship will be construed to create a relationship of joint venture, partnership, fiduciary or other similar relationship between the parties.

 18.10 Reformation. The parties hereby agree that neither party intends to violate any public policy, statutory or common
law, rule, regulation, treaty or decision of any government agency or executive body thereof of any country or community or association of countries, and that if any word, sentence, paragraph or clause or combination thereof of this Agreement is
found, by a court or executive body with judicial powers having jurisdiction over this Agreement or any of the parties hereto, in a final, unappealable order to be in violation of any such provision in any country or community or association of
countries, such words, sentences, paragraphs or clauses or combination will be inoperative in such country or community or association of countries, and the remainder of this Agreement will remain binding upon the parties hereto. 
  

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 18.11 Force Majeure. No liability hereunder will result to a party by reason of delay in
performance caused by force majeure, that is due to circumstances beyond the reasonable control of the party, including, without limitation, acts of God, fire, flood, earthquake, war, terrorism, civil unrest, labor unrest, or shortage of or
inability to obtain material or equipment; however, the payment of royalties or other amounts due hereunder shall not be subject to this force majeure provision. 
 18.12 Survival. Paragraphs 8.4, 8.5, 8.6 and 8.7 (Term and Termination of Agreement) and 13.4; and Articles 4 (Confidentiality), 7 (Payments; Records; Audits), 14 (Indemnification), 15 (Applicable Laws),
16 (Dispute Resolution), 17 (Publicity), 18 (General) and other provisions that by their context would survive, will survive the termination of this Agreement. 
 18.13 Entire Agreement. This Agreement embodies the entire understanding of the parties and supersedes all previous communications, representations, or understandings, either oral or written, between the
parties relating to the subject matter hereof. 
 Intending to be legally bound, Glycomed and ParinGenix have executed this Agreement, in duplicate originals
but collectively evidencing only a single contract, by their respective duly authorized officers, on the dates hereinafter written. 
  

							
	 Glycomed, Inc.
	 	ParinGenix, Inc.
				
	 By:
	 	 /s/ Charles Berkman
	 	By:	 	/s/ Stephen Marcus
	 Name:
	 	 Charles Berkman
	 	Name:	 	Stephen Marcus
	 Title:
	 	 Secretary
	 	Title:	 	President & CEO
	 Date:
	 	 June 16, 2009
	 	Date:	 	June 17, 2009

  

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 ATTACHMENT A 
 Patent Rights as of the Effective Date 
  

					
	 Country
	  	Patent Number	 	Title
	 [***]
	  	[***]	 	[***]
	 [***]
	  	[***]	 	[***]
	 [***]
	  	[***]	 	[***]

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

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