Document:

Registration Rights Agreement

 Exhibit 10.2 
  
 REGISTRATION RIGHTS AGREEMENT 
  

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made and entered into effective as of January 3, 2006, by and between
Cygne Designs, Inc., a Delaware corporation (the “Company”), and Diversifed Apparel Resources, LLC (f/k/a Commerce Clothing Company, LLC), a California limited liability company (“Diversified”). 
  
 RECITALS: 
  
 WHEREAS, on the date hereof Diversified is acquiring, pursuant to the
Conversion Agreement (as defined below), shares of the Company’s Common Stock; and 
  
 WHEREAS, Diversified wishes to acquire, and the Company is willing to grant, certain registration rights with respect to the shares of the Company’s Common Stock which Diversified acquires pursuant to the
Conversion Agreement and certain other securities, which rights are set forth herein. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements of the parties as set forth herein and other good and valuable consideration, receipt of which is hereby acknowledged, the parties
hereto agree as follows: 
  
 Section 1. Definitions. As
used in this Agreement, the following terms shall have the following respective meanings: 
  
 “Conversion Agreement” shall mean that certain Note Conversion Agreement, dated as of the date hereof, by and among Diversified and the Company, as amended, modified or supplemented from time to time.

  
 “Commission” shall mean the Securities and
Exchange Commission or any other federal agency at the time administering the Securities Act. 
  
 “Common Stock” shall mean the Company’s common stock, $.01 par value per share. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, and shall include
any successor statute. 
  
 “register,”
“registered” and “registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of
such registration statement. 
  
 “Registered
Securities” shall mean Registrable Securities the offer and sale of which have been registered under the Securities Act pursuant to a registration statement filed with and declared effective by the Commission. 
  
 “Registrable Securities” shall mean shares of Common Stock
acquired by Diversified pursuant to the Note Conversion Agreement together with any shares of Common Stock issued or issuable upon any combination, merger, stock split, dividend or other distribution, recapitalization or similar event with respect
to the foregoing. 

 “Registration Expenses” shall mean all expenses incurred by the Company in compliance
with Section 2 hereof, including, without limitation, all registration, filing and National Association of Securities Dealers, Commission and stock exchange fees, all fees and expenses of complying with securities or blue sky laws (including,
without limitation, fees, charges and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), all word processing, duplicating and printing expenses, messenger, telecommunications, mailing and delivery
expenses, the fees and disbursements of counsel for the Company and of its independent public accountants, including, without limitation, the expenses of any special audits or “cold comfort” letters required by or incident to such
performance and compliance, premiums and other costs of policies of insurance against liabilities arising out of the public offering of the Registrable Securities being registered and any fees and disbursements of underwriters customarily paid by
issuers or sellers of securities, fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange or NASDAQ, and all fees, charges and disbursements of any special experts retained by the Company in
connection with any registration of the Registrable Securities, regardless of whether any Registration Statement filed in connection with the Registrable Securities is declared effective, but excluding Selling Expenses, if any, provided that, in any
case where Registration Expenses are not to be borne by the Company, such expenses shall not include salaries of Company personnel or general overhead expenses of the Company, auditing fees, premiums or other expenses relating to liability insurance
required by underwriters of the Company or other expenses for the preparation of financial statements or other data normally prepared by the Company in the ordinary course of its business or which the Company would have incurred in any event.

  
 “Rule 144” shall mean Rule 144 promulgated
under the Securities Act, or any successor rule then in force. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations thereunder, and shall include any successor statute. 
  
 “Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of
Registrable Securities and any expenses of Diversified, including the fees and disbursements of any law firm or accounting firm retained by Diversified. 
  
 Section 2. Registration Obligations of the Company. 
  
 (a) The Company’s Undertaking. On or before the 30th calendar day following the date hereof (as such date may be extended pursuant to Section 2(b), the “Filing Date”), the Company shall prepare and file with the Commission a
registration statement,m or shall amend the current registration statement filed with the Commission on September 23, 2005, covering the resale of all of the Registrable Securities for an offering (together with any amendments and supplements,
the “Registration Statement”). The Registration Statement required hereunder shall be on Form S-1 or any successor form, in which case the registration shall be on another appropriate form in accordance herewith. The Company shall
use its 

 commercially reasonable efforts to cause the Registration Statement and the registration of the Registered Securities
thereunder to be declared effective by the Commission no later than the earlier of (i) 90 calendar days following the date hereof (or 150 calendar days following the date hereof in the event of a full review by the Commission), and (ii) 10
calendar days following the date on which the Company is notifed by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments (the “Effectiveness Date”). 

 
 (b) Liquidated Damages. If: (i) a Registration Statement is
not filed on or prior to the Filing Date; except if Diversified fails to provide the Company with any information that is required to be provided in the Registration Statement with respect to Diversified pursuant to Section 5 hereof, in which
case the Filing Date shall be extended until five business days following the date of receipt by the Company of such required information, or (ii) the Registration Statement filed or required to be filed hereunder is not declared effective by
the Commission on or before the Effectiveness Date, or (iii) after the Registration Statement is first declared effective by the Commission, it ceases for any reason to remain continuously effective as to all Registrable Securities for which it
is required to be effective, or Diversified is not permitted to utilize the prospectus therein to resell such Registrable Securities, or in any such cases ten business days (which need not be consecutive days) in the aggregate during any 12-month
period (any such failure or breach being referred to as an “Event,” and for purposes of clause (i) or (ii) the date on which such Event occurs, or for purposes of clause (iii) the date on which such ten business day
period is exceeded being referred to as “Event Date”), then in addition to any other rights Diversified may have hereunder or under applicable law: (x) on each such Event Date, the Company shall pay to Diversified an amount in
cash, as liquidated damages and not as a penalty, equal to .05% of the value (based on the average closing price of the Common Stock for the five business days preceding, but not including, the date of this Agreement) of the Registrable Securities
then held by Diversified; and (y) on each monthly anniversary of each such Event Date, (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to Diversified an amount in cash,
as liquidated damages and not as a penalty, equal to .05% of the value (based on the average closing price of the Common Stock for the five business days preceding, but not including, the date of this Agreement) of any Registrable Securities then
held by Diversified. Notwithstanding the foregoing, the Filing Date and the Effectiveness Date shall be extended and no liquidated damages shall be due to Diversified (or any other person) hereunder if, and to the extent, such extension is due to
delays caused by the failure of Diversified to deliver to the Company any information that the Company requires to satisfy the requirements of Regulation S-X under the Securities Act (“Regulation S-X”) in respect of the Registration
Statement, or the failure of Ernst & Young, independent accountants for Diversified, to deliver a letter, dated as of a date not more than two days prior to the Filing Date or the Effectiveness Date, as the case may be, in form and
substance reasonably satisfactory to the Company, to the effect that (x) they are independent accountants within the meaning of the Securities Act, (y) in their opinion, the financial statements of the Acquired Business included in the
Registration Statement which were reported on by such firm and the unaudited financial statements of the business acquired from Diversified (the “Acquired Business”)included in the Registration Statement comply as to form in all
material respects with the applicable accounting requirements of the Securities Act and the Acquired Business financial statements included in the Registration Statement satisfy the requirements of Regulation S-X, and (z) covering such other
matters as are customary in accountants’ comfort letters delivered in connection with underwritten public offerings (collectively, “Permitted Delay Events”). 

 (c) Registration Procedures. In connection with the Company’s registration obligations
hereunder, the Company shall, as expeditiously as possible: 
  
 (1) Furnish to Diversified and the underwriters, if any, not less than two days prior to the filing of such documents with the Commission, copies of the proposed Registration Statement or prospectus or any amendment
or supplement thereto, including documents incorporated by reference after the initial filing of the Registration Statement, which documents will be subject to the review of Diversified and any such underwriters; 
  
 (2) Prepare and file with the Commission such amendments and
post-effective amendments to such Registration Statement or if necessary, file a new registration statement covering the then remaining Registrable Securities, subject to the terms and conditions hereof (which registration statement shall for
purposes hereof be deemed to be a Registration Statement upon the filing thereof) and prospectus supplements pursuant to Rule 424 under the Securities Act as may be necessary to keep such registration effective for (i) a period of twelve
(12) months, (ii) until Diversified has completed the distribution described in the Registration Statement or (iii) until all Registrable Securities may be freely sold without any volume, timing or other restrictions pursuant to
Rule 144 or otherwise, whichever last occurs; 
  
 (3) Cause the related prospectus to be supplemented by any required prospectus supplement, and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such Registration Statement or supplement to such prospectus;

  
 (4) Furnish such number of prospectuses and
preliminary prospectuses in conformity with the requirements of the Securities Act and other documents incident thereto, including any amendment of or supplement to the prospectus as Diversified from time to time may reasonably request; 

 
 (5) Notify Diversified as promptly as commercially
practicable (i)(A) when any prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed; (B) when the Commission notifes the Company whether there will be a “review” of the Registration
Statement and whenever the Commission comments in writing on the Registration Statement (the Company shall upon request provide true and complete copies thereof and all written responses thereto to Diversified); and (C) with respect to the
Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or prospectus or for additional information; (iii) of the issuance by the Commission or 

 any other federal or state governmental authority of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable Securities or the initiation of any proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the
financial statements included in the Registration Statement ineligible for inclusion therein or of the happening of any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and at the request of Diversified, promptly
prepare and furnish to Diversified a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; 
  
 (6) Use its commercially reasonable efforts to avoid the
issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment; 
  
 (7) Cause all such Registered Securities to be listed on each securities exchange or national automated quotation system on which similar securities issued by the Company are then listed or, if not then listed, cause
such Registered Securities to be included on the OTC Bulletin Board or whatever exchange or national automated quotation system, if any, the Board of Directors of the Company determines is appropriate; 
  
 (8) Provide a transfer agent and registrar for all
Registered Securities and a CUSIP number for all such Registered Securities, in each case not later than the effective date of such registration; 
  
 (9) Make available for inspection during regular business hours by Diversified, any underwriter participating in any disposition pursuant
to such registration statement, and any attorney, accountant or other agent retained by Diversified or such underwriter (collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties
of the Company (collectively the “Records”) as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors, employees and independent accountants to
supply all information reasonably requested by Diversified or such underwriter, attorney or accountant in connection with such registration statement. Records which the Company determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (A) the disclosure of such 

 Records is, in the opinion of counsel for Diversified, reasonably necessary to avoid or correct any
misstatement or omission in the registration statement, (B) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, or (C) the disclosure of such Records is required by any
governmental regulatory body with jurisdiction over any seller of Registrable Securities. Diversified, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, shall notify the Company and allow the Company, at
its expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential; 
  
 (10) Cooperate with Diversified and the managing underwriter(s), if any, to facilitate the timely preparation and delivery of certificates
representing the Registered Securities to be sold, without any restrictive legends, in such denominations and registered in such names as the managing underwriter(s) may request at least two business days prior to any sale thereof to the
underwriters, if applicable; 
  
 (11) Otherwise
use its best efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months, but not
more than eighteen months, beginning with the first month after the effective date of the Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act; 
  
 (12) In connection with any underwritten offering pursuant
to the Registration Statement filed pursuant to Section 2 hereof, the Company will enter into any underwriting agreement reasonably necessary to effect the offer and sale of the Registrable Securities, provided such underwriting agreement
contains customary underwriting, indemnification and contribution provisions, which indemnification and contribution provisions shall be in all material respects similar to the provisions of Section 4 hereof; 
  
 (13) Use its best efforts to register or qualify such
Registrable Securities under such other securities or blue sky laws of such jurisdictions as Diversified reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable Diversified to consummate
the disposition in such jurisdictions of the Registrable Securities owned by Diversified (provided that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required
to qualify but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction); 
  
 (14) Use its best efforts to cause such Registrable Securities covered by the Registration Statement to be
registered with or approved by such other governmental agencies or authorities as may be necessary to enable Diversified to consummate the disposition of such Registrable Securities; and 
  
 (15) Take all such other actions as the underwriters, if any, and Diversified in all other cases reasonably
request in order to expedite or facilitate the disposition of such Registrable Securities (including, without limitation, effecting a stock split or combination of shares). 

 (d) Notwithstanding the foregoing, in addition to the Permitted Delay Events, the Company may delay the
filing of the Registration Statement for a reasonable period of time (not to exceed 45 days at any one time and not to be exercised more than once in any 365-day period) and shall not be liable for liquidated damages as provided in Section 2(b)
if within five days of the decision of the Board of Directors of the Company to delay such filing, the Company provides Diversified with a certificate signed by the Chairman of the Board of Directors of the Company stating that, in the good faith
judgment of the Board of Directors of the Company, the filing of the Registration Statement would require disclosure of information not otherwise then required to be disclosed and that such disclosure would adversely affect any material business
opportunity, transaction or negotiation then contemplated by the Company. The Company shall give prompt notice to Diversified of the end of any delay period under this subsection. 
  
 Section 3. Expenses of Registration. All Registration Expenses incurred in connection with any registration,
qualification or compliance pursuant to this Agreement shall be borne by the Company, and all Selling Expenses shall be borne by Diversified. 
  
 Section 4. Indemnification; Contribution. 
  
 (a) To the extent permitted by law, the Company will indemnify Diversified, each of its officers, directors, members and partners, and each person
controlling Diversified, with respect to which registration, qualification or compliance has been effected pursuant to this Agreement, each director and controlling person of the Company and each officer of the Company who signed the Registration
Statement, and each underwriter, if any, and each person who controls any underwriter, against all claims, losses, damages and liabilities (or actions, proceedings or settlements, if such settlements are effected with the written consent of the
Company, in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other document (including any related registration statement,
notification or the like, any amendments or supplements thereto and any documents incorporated by reference therein) incident to any such registration, qualification or compliance, or any omission (or alleged omission) to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or the Exchange Act or any other applicable securities laws or other federal, state or common law or
any rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and will reimburse Diversified, each of its officers,
directors, members and partners, and each person controlling Diversified, each such director, controlling person and officer, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, action or proceeding; provided, however, that the Company will not be liable in any such case to the extent that any such
claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information
furnished to the Company by Diversified or such underwriter and stated to be specifically for use 

 therein. Such indemnity obligation shall remain in full force and effect regardless of any investigation made by or on
behalf of Diversified and shall survive the transfer of Registrable Securities by Diversified. 
  
 (b) To the extent permitted by law, Diversified will indemnify the Company, each of its directors, officers and controlling persons, and each underwriter, if any, of the Company’s securities covered by such a
registration statement, each person who controls the Company or such underwriter within the meaning of the Securities Act or the Exchange Act or the rules and regulations thereunder, against all claims, losses, damages and liabilities (or actions,
proceedings or settlements in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document, or any
omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such directors, officers, members, partners, persons,
underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability, action or proceeding, in each case to the extent, but only to
the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written
information furnished to the Company by Diversified and stated to be specifically for use therein; provided, however, that the liability of Diversified hereunder shall be limited to an amount equal to the net proceeds received by
Diversified from the sale of Registered Securities as contemplated herein giving rise to such liability. 
  
 (c) Each party entitled to indemnification under this Section 4 (the “Indemnified Party”) shall give notice to the party required to
provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall
not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Agreement, unless such failure to notify materially adversely affects the Indemnifying Party’s ability to defend such action. No Indemnifying Party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party of a release from all liability in respect of such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be
reasonably required in connection with the defense of such claim and litigation resulting therefrom. 
  
 (d) If the indemnification provided for in this Section 4 shall for any reason be unenforceable or otherwise unavailable by an Indemnified Party,
although otherwise available in accordance with its terms, then each Indemnifying Party shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a 

 result of the losses, claims, damages, liabilities or expenses with respect to which such Indemnified Party has claimed
indemnification, in such proportion as is appropriate to reflect the relative fault of the Indemnified Party on the one hand and the Indemnifying Party on the other in connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault, in the case of an untrue statement, alleged untrue statement, omission or alleged omission, shall be determined by, among other
things, whether such statement, alleged statement, omission or alleged omission relates to information supplied by the Indemnifying Party or the Indemnified Party, and such parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement, alleged statement, omission or alleged omission. The Company and Diversified agree that it would not be just and equitable if contribution pursuant hereto were to be determined by pro rata allocation
or by any other method of allocation which does not take into account such equitable considerations. The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages, liabilities or expenses referred to herein shall be
deemed to include any legal fees, charges or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending against any action or claim which is the subject hereof. In no case, however, shall Diversified
be responsible for a portion of the contribution obligation in excess of the net proceeds received by Diversified from the sale of securities as contemplated herein giving rise to such liability. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who is not guilty of such fraudulent misrepresentation. 
  
 (e) Anything to the contrary contained in this Section 4 notwithstanding, Diversified shall not be liable for any
indemnification or contribution in excess of the net proceeds received by it from any sale of Registrable Securities which has been registered hereunder. 
  
 Section 5. Obligations of Diversified. Diversified shall (i) furnish to the Company such information regarding Diversified and the
distribution proposed by Diversified as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration, qualification or compliance referred to in this Agreement, and (ii) complete and
execute all questionnaires, powers of attorney, underwriting agreements and other documents required under the terms of any underwriting agreement. 
  
 Section 6. Transfer or Assignment of Registration Rights. The rights to cause the Company to register the securities granted to Diversified by the
Company under Section 2 may be transferred or assigned by Diversified to a permitted transferee or assignee of any of Diversified’s Registrable Securities; provided, however, that the Company is given written notice by
Diversified at the time of or within a reasonable time after said transfer or assignment, stating the name and address of said transferee or assignee and identifying the securities with respect to which such registration rights are being transferred
or assigned; and provided, further, that the transferee or assignee of such rights assumes the obligations of Diversified under this Agreement. 
  
 Section 7. Adjustments Affecting Registrable Securities. The Company will not take any action, or permit any change to occur, with respect to the
Registrable Securities which would adversely affect the ability of Diversified to include such Registrable Securities in a registration undertaken pursuant to this Agreement or which would adversely affect the marketability of such Registrable
Securities in any such registration. 

 Section 8. Governing Law; Consent to Jurisdiction. All questions concerning the construction,
validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement shall be governed by and construed in accordance with the laws of the State of California, without application of the conflicts of laws
principles thereof. The Company and Diversified hereby consent and agree that the state or federal courts located in Los Angeles County, City of Los Angeles, shall have exclusive jurisdiction to hear and determine any claims or disputes between the
parties pertaining to this Agreement or to any matter arising out of or relating to this Agreement; provided, that the parties acknowledge that any appeals from those courts may have to be heard by a court located outside of Los Angeles County. The
Company and Diversified expressly submit and consent in advance to such jurisdiction in any action or suit commenced in any such court, and each party hereby waives any objection that such credit party may have based upon lack of personal
jurisdiction, improper venue or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. The Company and Diversified hereby waive personal service of the summons,
complaint and other process issued in any such action or suit and agrees that service of such summons, complaint and other process may be made by registered or certified mail addressed to such party at the address specified in Section 12 of
this Agreement and that service so made shall be deemed completed upon such party’s actual receipt thereof. Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced
and expert person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a judge applying such applicable laws. Therefore, to achieve the best
combination of the benefits of the judicial system and of arbitration, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG ANY
PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR THE TRANSACTIONS RELATED HERETO. 
  
 Section 9. Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the successors,
assigns, heirs, executors and administrators of the parties hereto. 
  
 Section 10. Entire Agreement; Amendment. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof. Neither this Agreement nor any term hereof may be amended,
waived, discharged or terminated, except by a written instrument signed by the Company and Diversified. 
  
 Section 11. Attorneys’ Fees. In any action or proceeding brought to enforce any provision of this Agreement, or where any provision hereof or
thereof is validly asserted as a defense, the successful party shall be entitled to recover reasonable attorneys fees’ in addition to any other available remedy. 

 Section 12. Notices, etc. All notices or other communications hereunder shall be in writing and
shall be deemed to have been duly given if delivered personally or sent by facsimile, by recognized overnight courier marked for overnight delivery, or by registered or certified mail, postage prepaid, addressed as follows: (a) if to
Diversified, 5804 E. Slauson Ave., Diversified, California 90040, fax: (323) 728-1641, Attention: Hubert Guez, or (c) if to the Company, 11 West 42nd Street, New York, New York 10036, fax: (212) 997-7758, Attention: President, or such other addresses as shall be furnished by like notice by such party. All such notices and communications shall,
when sent by facsimile (immediately thereafter confirmed by telephone), be effective when sent, or if sent by nationally recognized overnight courier service, be effective one business day after the same has been delivered to such courier service
marked for overnight delivery, or, if mailed, be effective when received. 
  
 Section 13. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner so as to be effective and valid under applicable law, but if any provision of this Agreement is
held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement. If any provision contained in
this Agreement is determined to be invalid, illegal or unenforceable as written, a court of competent jurisdiction shall, at any party’s request, reform the terms of this Agreement to the extent necessary to cause such otherwise invalid
provisions to be enforceable under applicable law. 
  
 Section 14.
Titles and Subtitles. The titles of the sections, paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
  
 Section 15. Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 
  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day, month and year first
written above. 
  

			
	CYGNE DESIGNS, INC.
		
	 By:
	 	 /s/ Bernard Manuel

	 Name:
	 	 Bernard Manuel

	 Title:
	 	 President

	
	 DIVERSIFIED APPAREL RESOURCES, LLC

		
	 By:
	 	 /s/ Hubert Guez

	 Name:
	 	 Hubert Guez

	 Title:
	 	 PresidentPatent License and Development Agreement

 Exhibit 10.1 
  
 PATENT LICENSE AND DEVELOPMENT AGREEMENT 
  
 This PATENT LICENSE AND DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into as of January 3,
2006, (“Effective Date”) by and between COMMONWEALTH BIOTECHNOLOGIES, INC. (“CBI” or “Licensor”), a Virginia corporation with its principal place of business located at 601 Biotech Drive, Richmond, Virginia,
23235, USA, and PRISM PHARMACEUTICALS, INC. (“Prism” or “Licensee”), with its principal place of business at 1150 First Ave, Suite 1050, King of Prussia, Pennsylvania, USA 19406, each a “Party” and together the
“Parties.” 
  
 WHEREAS, CBI is the owner of certain
patents and rights relating to the product HepArrest® and related compounds, as are further defined below, and; 
  
 WHEREAS, said patents were made, at least in part, with funds from the United States Federal Government, awarded through NIH grant number 1R41 HL 53003 (the “Grant”). 
  
 WHEREAS, Prism desires to obtain an exclusive license to make, have made,
use, offer for sale, sell, import and export products by practicing said patents, and; 
  
 WHEREAS, Prism desires to develop said products, without limitation, including but not limited to process development, non-clinical development, clinical development, and manufacture, and; 
  
 WHEREAS, CBI is willing to grant to Prism said license under said patents,
subject to the terms and limitations set forth herein. 
  
 NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which each Party acknowledges, the Parties hereto agree as follows: 
  
 1. DEFINITIONS. 
  
 1.1 “Advisory Committee” shall have the meaning set forth in Section 5.2. 
  
 1.2 “CBI” means Commonwealth Biotechnologies, Inc.
and any subsidiary or any other entity in which Commonwealth Biotechnologies, Inc. owns more than 50% of the voting securities, partnership, or other ownership interest. 
  
 1.3 “Confidential Information” shall mean any proprietary, confidential information (whether or not
patentable or copyrightable), whether or not so marked, that is not generally known to third parties and that has actual or potential economic value by reason of not being generally known. Confidential Information includes, without limitation, trade
secrets, and non-public know-how, data, processes, formulas, methods, technology, manufacturing techniques, cost and pricing information, sales and marketing information, and information of third parties held by a Party in confidence. Documents and
things containing or embodying Confidential Information are Confidential Information. Confidential Information does not include information that: 
  

	 	(a)	was known to the receiving party, as evidenced by the receiving party’s written records, before receipt from the disclosing party; 

	 	(b)	is disclosed to the receiving party by a third person who is under no obligation of confidentiality to the disclosing party hereunder with respect to such information and who
otherwise has a right to make such disclosure; 

  

	 	(c)	is or becomes generally known to the public through no fault of the receiving party; 

  

	 	(d)	is independently developed by the receiving party, as established by the receiving party’s contemporaneous written records, without access to or reliance on the other
Party’s Confidential Information; or 

  

	 	(e)	is required to be disclosed by law, rule or regulation of any court or regulatory authority of competent jurisdiction; provided, that a Party required to disclose the other
Party’s Confidential Information shall notify the other Party as soon as possible and, if requested by the other Party, use reasonable good faith efforts, at its own expense, to assist in seeking a protective order (or equivalent protection)
with respect to such disclosure or otherwise take reasonable steps to avoid making such disclosure. 

  
 1.4 “Control Laws” shall have the meaning set forth in Section 17.4. 
  
 1.5 “Default” shall have the meaning set forth in
Section 11.2.3(b). 
  
 1.6 “Effective
Date” means the date first set forth above. 
  
 1.7
“Encumbrance” means any mortgage, charge, lien, security interest, easement, right of way, pledge or encumbrance of any nature whatsoever. 
  
 1.8 “FDA” means the U.S. Food and Drug Administration. 
  
 1.9 “FDA Communication” shall mean any communication
or inquiry to or from the FDA related to the Product Intellectual Property or Licensed Products, including but not limited to communications which are verbal, electronic, written, formal submissions, chronological files and any other record of any
communication. 
  
 1.10 “Federal
Government” means the United States federal government. 
  
 1.11 “Fees” shall have the meaning set forth in Section 10.1. 
  
 1.12 “Force Majeure Event” shall have the meaning set forth in Section 17.14. 
  
 1.13 “GAAP” means U.S. generally accepted accounting
principles. 
  

 2 

 1.14 “Grant” means NIH grant number 1R41 HL 53003. 
  
 1.15 “Governmental Entity” or
“Governmental Entities” means any (i) federal, state, local, foreign or international government; (ii) court, arbitral or other tribunal or governmental or quasi-governmental authority of any nature (including any
governmental agency, political subdivision, instrumentality, branch, department, official or entity); or (iii) body exercising, or entitled to exercise, any administrative, executive, judicial or legislative, police, regulatory, or taxing
authority or power of any nature pertaining to government. 
  
 1.16 “IND” means an investigational new drug application for a Licensed Product. 
  
 1.17 “Indemnified Party” shall have the meaning set forth in Section 15.2. 
  
 1.18 “Indemnifying Party” shall have the meaning set
forth in Section 15.2. 
  
 1.19 “Initial
Term” shall have the meaning set forth in Section 2.3. 
  
 1.20 “Knowledge” means actual knowledge. 
  
 1.21 “License” shall have the meaning set forth in Section 2.1. 
  
 1.22 “Licensed Products” means any and all products
and processes the development, manufacture, marketing, use, commercialization, offer for sale, sale, export or import of which is covered by a valid and unexpired claim of any of the Patents. In particular but without limitation, Licensed Products
includes the product known as HepArrest® and all
related compounds and all formulations for all uses in humans and animals. A product or process that is a Licensed Product in any jurisdiction is a Licensed Product in all jurisdictions. 
  
 1.23 “Losses” shall mean “Licensor’s Losses” and/or “Licensee’s
Losses,” as applicable, as those terms are defined in Section 15.1. 
  
 1.24 “NDA” means a new drug application for a Licensed Product. 
  
 1.25 “Net Sales” means, for any Royalty Payment Period, the sum of: 
  
 1.25.1 gross revenues received by Prism or its authorized sublicensee during the Royalty Payment Period on the first
arm’s length sale for commercial use of Licensed Products, whether by Prism or its authorized sublicensee, to an unaffiliated third party (“Product Sales”), less only: (1) normal and customary quantity, trade or cash
allowances/discounts, credits or volume discounts given in connection with the sale of Licensed Products; (2) credits for returns of Licensed Products sold; (3) normal and customary chargebacks, rebates and refunds granted;
(4) freight and insurance and (5) sales and other excise taxes and duties related to or in connection with the sale, transportation or delivery of the Licensed Products (taxes assessed against Licensee’s income are not deductible in
calculating Net Sales). The deductions set forth in the previous subsections 1-5 shall be determined in accordance with GAAP and itemized on the Quarterly Royalty Reports; and 
  

 3 

 1.25.2 milestones, fees and other consideration paid to Prism by any sublicensee during the Royalty
Payment Period pursuant to a Sublicense Agreement; provided, however, that this Section 1.15.2 shall not include any amount that is calculated based on Product Sales. By way of example and not limitation, Net Sales shall not include any
royalty paid to Prism based on a sublicensee’s Product Sales if Prism also pays a Royalty on the same Product Sales made by such sublicensee. 
  
 1.26 “Parties” means individually CBI or Prism, as the context dictates, or collectively, CBI and Prism. 
  
 1.27 “Patent(s)” means any and all CBI patents issued
and patent applications filed on or before the Effective Date which claim: (i) the product known as HepArrest and all related compounds and formulations for all uses in humans and animals; (ii) technology related to and/or necessary for
the commercialization, manufacturing, marketing, making, having made, using, selling, offering for sale, importing or exporting of the Licensed Products; or (iii) the process to develop, market, commercialize, or manufacture any of the Licensed
Products, all of which shall include but not be limited to: U.S. Patent No. 5,877,153, issued March 2, 1999; U.S. Patent No 6,200,955, issued March 13, 2001; and U.S. Patent No 6,756,206, issued June 29, 2004; European Patent
0999219 (Great Britain filing), issued March 31, 2004; European patent 1232754 (Great Britain filing), issued November 17, 2004; Japanese patent 347251, issued December 2, 2003; pending Canadian patent application 2,371,514; together
with all patents that in the future issue therefrom in any country of the Territory, including utility, model and design patents and certificates of invention and all continuations, continuations-in-part, reissues, re-examinations, renewals,
extensions, substitutions, confirmations or additions to any such patents and patent applications, extensions, divisionals, improvements as of the Effective Date, ancestors, descendents and foreign counterparts of any of the foregoing, whether or
not pending on the Effective Date, and including, without limitation, any other application (U.S. or foreign) claiming priority from or through any of the foregoing. 
  
 1.28 “Person” means any individual, corporation, partnership, limited liability company, joint
venture, trust, business association, organization, governmental entity, or other entity, including any successor or assigns (by merger or otherwise) of any such entity. 
  
 1.29 “Prism” means Prism, and any, subsidiary or any other entity in which Prism owns more than 50%
of the voting securities, partnership, or other ownership interest. 
  
 1.30 “Product Copyrights” means all registered and unregistered copyrights related to the Licensed Products in the Territory both published works and unpublished works. 
  
 1.31 “Product Intellectual Property” means the
Product Technology, and the Product Copyrights. 
  
 1.32
“Product Medical Materials” means any of the following: (i) all adverse event reports related to the Licensed Products, including any correspondence with the FDA, reports or other documents relating thereto,
(ii) all data, information and files relating to the adverse experiences relating to the Licensed Products and (iii) all medical responses relating to the Licensed Products, and written, telephone and personal contact inquiries relating to
the Licensed Products. 
  

 4 

 1.33 “Product Sales” shall have the meaning set forth in
Section 1.26. 
  
 1.34 “Product
Technology” means all Patents, inventions, regardless of whether patent rights have yet been obtained or applied for, Specifications, technical data, clinical data, know-how, research and development information, knowledge and other
information, whether in existence on the Effective Date or in the future related to, or are desirable for, or are necessary or useful for the development, manufacture, formulation, reformulation, packaging, testing, marketing, use, distribution,
commercialization, offer for sale, sale, import and export of the Licensed Products in the Territory, but excluding any common industry practice, process or procedure. 
  
 1.35 “Product Trademark” means the trademark HEPARREST, all good will associated with the business
associated with such mark, and associated U.S. trademark Registration No. 2,652,127. 
  
 1.36 “Quarterly Royalty Report(s)” shall have the meaning set forth in Section 10.5.2. 
  
 1.37 “Regulatory Authority” means any Governmental Entity in any country of the Territory competent to approve pharmaceutical
products for manufacturing, marketing, distribution and sale in any country of the Territory and/or to approve the price for pharmaceutical products to be sold in any country of the Territory. 
  
 1.38 “Royalty” or “Royalties”
shall have the meaning set forth in Section 10.2. 
  
 1.39 “Royalty Payment Period” shall have the meaning set forth in Section 10.5.1. 
  
 1.40 “Renewal Term” shall have the meaning set forth in Section 2.3. 
  
 1.41 “Specifications” shall mean the specifications,
formulations, recipes and manufacturing instructions for Licensed Products as known at the Effective Date and from time to time during the term of this Agreement changed, altered, amended or repealed. 
  
 1.42 “Sublicense Agreement” shall have the meaning
set forth in Section 2.4 below. 
  
 1.43
“Term” shall have the meaning set forth in Section 2.3 below. 
  
 1.44 “Territory” is worldwide. 
  
 1.45 “USDA” means the U.S. Department of Agriculture. 
  
 2. LICENSE. 
  
 2.1 License Grant. Subject to the terms and limitations of this Agreement, and in exchange for the covenants made herein, CBI grants to
Prism a sole and exclusive license, with 
  

 5 

 the right to grant sublicenses, throughout the Territory, using the Product Intellectual Property, to practice the
Patents by developing, marketing, manufacturing, making, having made, using, distributing, commercializing, selling, offering to sell, importing and exporting the Licensed Products (the “License”). 
  
 2.2 Nature of Exclusivity. This license grant is exclusive even
against CBI, except that CBI remains free to practice the Patents in the course of rendering goods or services to Prism or any of Prism’s successors, assigns, licensees or customers and except that the United States Government has certain
rights to the Patents because certain of the patented inventions were made, at least in part, with funds from the Federal Government awarded through the Grant. 
  

2.3 Term. Unless sooner terminated as provided for herein, this License shall commence as of the Effective Date and remain in force until
the later of (i) the expiration of the last-to-expire of any of the Patents in any jurisdiction or (ii) any later expiring period of exclusivity granted by the FDA (the “Initial Term”). Thereafter, this Agreement shall
automatically be renewed for successive two-year terms, subject to prior termination in accordance with the terms hereof (each a “Renewal Term”; collectively, the Initial Term and Renewal Term shall be referred to herein as the
“Term”). 
  
 2.4 Right to Sublicense.
Prism has the right to sublicense, in whole or in part, its rights under the License. Prism shall require such sublicensees to execute an agreement (a “Sublicense Agreement”), with terms and provisions which adequately protect the
interests of CBI with terms comparable to those set forth herein in Sections 8, 10.2-10.6, 11, 12.3, 13-16, 17.1, 17.2, 17.4, and 17.7. CBI shall be designated as a third-party beneficiary in any sublicense agreement, but such provision shall not
relieve Prism of its obligation to enforce such sublicense agreements for the benefit of CBI. 
  
 2.5 Patent Marking. Prism shall ensure that the Licensed Products, and all packaging and labeling therefor, as well as all promotional, marketing, and advertising material associated with the Licensed
Products, as applicable, bear forms of patent notice and marking meeting the requirements of the applicable jurisdiction(s) and acceptable to CBI. Prism shall provide samples of the foregoing to CBI upon request. 
  
 3. DEVELOPMENT OF LICENSED PRODUCTS. 
  
 3.1 Prism shall have sole and exclusive right and responsibility to develop
the Licensed Products for commercialization in the Territory, including without limitation, process development, non-clinical development, clinical development and manufacture.
  
 3.2 Prism shall bear all costs associated with its development of the Licensed Products incurred by Prism after the
Effective Date. 
  
 3.3 Prism shall exercise commercially
reasonable efforts to develop the Licensed Products for purposes of obtaining regulatory approvals and commercializing and selling the Licensed Products. 
  

 6 

 4. DATA DELIVERY. 
  
 4.1 CBI shall deliver to Prism no later than thirty (30) days after the Effective Date a copy of all books and records related to the Product Medical
Materials, the Product Intellectual Property and FDA Communication. Such books and records shall be catalogued and identified appropriately by CBI and delivered to Prism in a complete and orderly fashion, accompanied by a master list identifying the
name and contents of each individual file. 
  
 5. REGULATORY APPROVALS.

  
 5.1 Prism shall be responsible for obtaining, at its own
expense, all applicable legal and regulatory approvals for its Licensed Products, including but not limited to all FDA permits and approvals, in all jurisdictions in which Licensee seeks to make, use or sell the Licensed Products. During the Term of
this Agreement and upon the request of Licensee, Licensor shall provide reasonable nonmonetary cooperation to Licensee in obtaining legal and regulatory approvals, including without limitation, executing any and all documents or instruments that are
necessary or appropriate to the application for regulatory approval. Licensee shall provide such cooperation at no charge to Licensor, except that in the event that Prism’s requests for assistance entail the dedication or application of
appreciable resources or time of CBI, Prism and CBI shall enter into a separate agreement for CBI to render such services at CBI’s then-prevailing rates as described in Section 10.7. 
  
 5.2 The Parties shall establish a committee of up to six (6) members who
will be agreed upon in writing by CBI and Prism and each of whom shall be senior executives of or experienced professional counsel to the appointing Party, provided that such professional counsel is (a) bound to protect the confidentiality of
the Confidential Information of the other Party at least to the extent provided in Article 14 and (b) obligated to assign to the appointing Party any intellectual property developed in the course of its relationship with the appointing
Party which shall be further assigned, if necessary, and owned in accordance with Section 7.5 (the “Advisory Committee”). The Parties shall work through the Advisory Committee to address issues related to obtaining legal and
regulatory approvals for the Licensed Products. The initial Advisory Committee is set forth on Schedule 5.2. At any time, a Party may replace one or more of its designees to the Advisory Committee by written notice to the other Party. The
Advisory Committee shall meet quarterly (or more frequently as deemed necessary by the Advisory Committee), in a location or by telephone as mutually agreed by the Parties, to share information on the status of the development and commercialization
of the Licensed Products in the Territory. The location of the meetings shall take place at Prism’s principal office location. The Advisory Committee shall also discuss any requests by Prism for assistance from CBI pursuant to this Agreement.

  
 6. COMMERCIALIZATION.
  
 6.1 Prism shall have sole and exclusive rights to the developing, marketing,
offering for sale, sale, advertising, promotion, distribution, making, having made, manufacturing, exporting, importing, and all other exploitation of the Licensed Products in the Territory.
  

 7 

 7. PATENT MANAGEMENT. 
  
 7.1 CBI shall retain ownership of all Patents that CBI owns on the Effective Date and CBI shall continue prosecution of all patent applications related to
the Licensed Products that are pending as of the Effective Date and shall pay all costs associated therewith. CBI shall inform Prism of any actions regarding the prosecution of all such patent applications. Prism shall be permitted to provide input
into and suggestions for the prosecution of such patent applications. 
  
 7.2 While CBI shall retain ownership of the Patents, as of the Effective Date, and except as may be provided for to the contrary in Section 8 of this Agreement, Prism shall assume full responsibility for and pay all fees and expenses
associated with the prosecution of any then-pending patent applications comprising the Patents and the maintenance of all Patents that have issued or do issue based on such applications. Prism may determine in its sole discretion whether it desires
to maintain the Patents in any jurisdiction, except that Prism shall not permit any of the Patents to expire or lapse in any jurisdiction without CBI’s express prior written consent, which shall not be unreasonably withheld. Prism shall give
CBI prior written notice, at least thirty (30) days prior to the day on which action is required to maintain a patent or a patent application (clearly specifying the action that must be taken and the date by which it must be taken), of its
intention not to maintain any such Patent or not to pursue such patent application pending as of the Effective Date, whereupon CBI shall have the option to assume control of the prosecution or maintenance, as the case may be, of such Patent at
CBI’s sole expense. If CBI thereafter desires to elect not to prosecute or maintain such Patent, it shall similarly give Prism at least thirty (30) days prior written notice of its decision, whereupon Prism shall have the option, by giving
prompt written notice to CBI, to take an assignment, for no additional consideration, of such Patent and assume sole responsibility therefore. Assignment of such Patent, however, shall not relieve Prism of its obligations to pay Royalties on Net
Sales of Licensed Products covered by a valid and unexpired claims of such Patent incurred prior to the date of such assignment. 
  
 7.3 Prism shall have the sole and absolute discretion and responsibility with respect to any determination to secure patents and patent prosecution and
maintenance for any intellectual property invented or created by it or on its behalf (and assigned or assignable to it) subsequent to the Effective Date and arising out of the License and for which it elects to take and actually does take an
assignment as provided for in Section 7.5. 
  
 7.4 With
respect to any patent application filed after the Effective Date on inventions for which Prism elects to take and actually does take an assignment as provided for in Section 7.5, Prism shall pay the costs of prosecution and maintenance of all
Patents and patent applications that are related to the Licensed Products. 
  
 7.5 Any inventions relating to the Licensed Products and Product Technology made during the Term shall be owned by the inventor and joint inventions shall be owned equally by all inventors, or as is otherwise
determined by written agreement. Each Party shall require its employees and agents doing inventive or creative work with respect to the Licensed Products and Product Technology to execute agreements obligating to assign rights in inventions he or
she creates to such Party. Each Party shall disclose any such new inventions to the other in writing. Prism may request an assignment by CBI of any rights it may have in any such invention by written notice to CBI made within ninety (90) days
after disclosure of the invention. All such 
  

 8 

 inventions shall be assigned to Prism by CBI (or its agents), assuming Prism gives notice of its request to take
assignment of such inventions. The foregoing notwithstanding, however, assignment of all such inventions by CBI (or its agents) to Prism will only apply to those inventions which were discovered and/or reduced to practice in the course of work done
by CBI (or its agents) under a contract for services to Prism pursuant to this Agreement or any other agreement. 
  
 8. ENFORCEMENT AND DEFENSE OF PATENTS. 
  
 8.1 Each Party agrees to promptly notify the other Party of their knowledge of any actual or suspected third-party infringement or violation of any of the
Patents or other Product Intellectual Property, as well as of any claim, demand, invitation to license or other third-party challenge to the Patents or other Product Intellectual Property. 
  
 8.2 Prism is solely responsible, in its sole and absolute discretion, and at
its sole expense, for the enforcement and defense of any patent or intellectual property rights that it owns, including but not limited to patent and other intellectual property interests created by it or on its behalf (and assigned or assignable to
it) pursuant to this Agreement. 
  
 8.3 With respect to the
Product Intellectual Property licensed to Prism hereunder, except as is provided herein to the contrary, Prism shall be solely responsible for the enforcement and defense of such Product Intellectual Property, at its sole expense, during the Term.
Notwithstanding the foregoing: (a) CBI agrees to be joined as a party plaintiff, at Prism’s request and as is reasonably required to pursue an enforcement action; (b) counsel selected by Prism shall be reasonably acceptable to CBI;
(c) Prism shall give CBI prompt notice that an infringement or other action has been commenced concerning any of the Product Intellectual Property, an opportunity to review and approve in advance any demand, cease and desist letter or
invitation to license, and if commercially practical, at least thirty (30) days prior written notice of its intent to commence an enforcement action; (d) Prism shall give CBI prompt written notice (in no event less than 15 days prior to
any responsive filing deadline or other deadline that may jeopardize rights in the Product Intellectual Property) of its decision not to enforce or defend any of the Product Intellectual Property; and (e) Prism shall not enter into any
settlement agreement or consent judgment, nor shall it make any material admission relating to validity or enforceability of any of the Product Intellectual Property or with respect to CBI which would materially adversely effect CBI without the
prior written consent and approval of CBI, which shall not be unreasonably withheld. In the event CBI joins or is named as a party in any enforcement or defense action, CBI shall have the right but not the obligation to retain separate counsel at
its own expense. Any recovery of damages in any enforcement action by Prism involving the Product Intellectual Property shall be allocated as follows: (a) first, to the payment of attorney’s fees and other costs and expenses of the
litigation; (b) second, the amount that Prism is responsible for making any required payments to its sublicensees; (c) third, the remainder to be divided between Prism and CBI, with CBI receiving an amount equal to the remainder multiplied
by the Royalty rate applicable to Prism’s Net Sales in the most recent Royalty Payment Period. In the event that Prism elects not to enforce or defend one of the Patents or the other Product Intellectual Property, CBI shall have the right but
not the obligation to enforce or defend, as the case may be, at its sole expense and in its sole discretion, and in the event it elects to enforce or defend Prism shall provide commercially reasonable nonmonetary cooperation, join as a party at
CBI’s request and as reasonably required, and CBI shall be entitled to all recovery from such action. 
  

 9 

 8.4 Each Party, regardless of whether it joins in a legal action, agrees to reasonably cooperate with the
other to assist in the prosecution or defense of any actions described in this Article 8. In addition to any other obligation set forth in this Agreement, each Party shall keep the other regularly informed on developments in any such action in which
it participates or obtains information, if the other Party is not involved. With respect to the foregoing actions, each Party shall cooperate with each other in such a manner as to preserve in full (to the extent possible) the confidentiality of any
of the other Party’s Confidential Information and the attorney-client and work-product privileges. In connection therewith, each Party agrees that: (i) the provisions of Article 14 shall apply to the production of Confidential
Information, and (ii) all communications between any Party hereto and counsel responsible for participating in the defense of any third-party claim or with respect to any action regarding the Product Intellectual Property to the extent such
action involves or impacts Prism’s right to develop, commercialize, market, manufacture, distribute, sell, offer for sale, import and/or export the Licensed Products in the Territory, shall, to the extent possible, be made so as to preserve any
applicable attorney-client or work-product privilege. 
  
 9. TRADEMARKS.

  
 9.1 Licensor assigns to Licensee whatever rights it has
in the Product Trademark via the trademark assignment attached hereto as Exhibit A. Except as is expressly warranted in Section 12.2.4(b), the Product Trademark is assigned on an “AS IS” and “WITH ALL FAULTS” basis.
As of the Effective Date, Licensee shall bear sole responsibility regarding the use, registration and maintenance of the Product Trademark. 
  
 9.2 Prism may use its own trademark(s), service marks, logos and trade dress for the marketing and sale of the Licensed Products, and it shall be solely
responsible for the registration, maintenance, enforcement and defense of any such marks. 
  

 10 

 10. FEES AND ROYALTIES. 
  

10.1 In consideration of the rights and license granted pursuant to this Agreement, Prism shall pay to CBI the following fees (“Fees”) upon
the attainment of the milestones set forth in the table below: 
  

			
	a. Upon execution of this Agreement:	  	$10,000
		
	b. A one-time Fee upon either FDA or USDA (or counterpart foreign regulatory agency) marketing approval for the initial application of any Licensed Product, whether by Prism or its third-party
sublicensee:	  	$5,000,000, subject to reduction as described in Section 10.7 below
		
	c. A one-time Fee upon either the FDA or USDA (or counterpart foreign regulatory agency) marketing approval for the next new indication or new intended use of any Licensed Product, whether by
Prism or its third-party sublicensee:	  	$2,500,000
		
	d. A one-time Fee upon either the FDA or USDA (or counterpart foreign regulatory agency) marketing approval for the next new indication or intended use of any Licensed Product, which follows the
indication or intended use described in (c) above, whether by Prism or its third-party sublicensee:	  	$1,250,000
		
	e. No fees or milestones related to marketing approval shall be owed after the approval of the third application of any Licensed Product.	  	$0

  
 10.2 In addition to
its payments of Fees pursuant to Section 10.1, Prism shall pay to CBI royalties on Net Sales (“Royalty” or “Royalties”) as follows: 
  

			
	a. Subject to the reduction set forth in (d) below, Royalty on annual Net Sales of the Licensed Products on the first $25 million, in total, paid to Prism during any calendar year:	  	6%
		
	b. Subject to the reduction set forth in (d) below, Royalty on annual Net Sales of the Licensed Products totaling more than $25 million and less than $75 million paid to Prism during any
calendar year:	  	8%
		
	c. Subject to the reduction set forth in (d) below, Royalty on annual Net Sales of the Licensed Products totaling more than $75 million paid to Prism during any calendar year:	  	10%
		
	d. Notwithstanding anything to the contrary herein, at the time that there is no longer regulatory exclusivity of any Licensed Product(s) in a country, the Royalty on Net Sales of such License
Product(s) sold in that country shall be reduced by fifty percent (50%).	  	 

  

 11 

 10.3 Calculation of Royalties. All Royalties payable shall be calculated first in the
currency of the jurisdiction in which payment was made, and then converted into U.S. dollars. The exchange rate for such conversion shall be the rate quoted in The Wall Street Journal on the last business day of the applicable Royalty Payment
Period. Prism and its sublicensees shall bear all risks associated with restrictions on repatriation of profits and revenue: in the event any legal restrictions prevent the remittance of all or part of Royalties payable from a jurisdiction where
Licensed Products have been sold, Prism shall nonetheless remit payment of Royalties payable to CBI. 
  
 10.4 Late Payment. Prism shall pay to CBI a late payment fee on any Royalties or other Fees that are not timely paid in accordance with the
requirements of this Agreement equal to the lesser of (i) the sum of Ten Percent (10%) plus the prime rate of interest quoted in the money rates section of the Wall Street Journal, calculated daily on the basis of a three hundred
sixty-five (365) day year, or (ii) the maximum interest rate allowed by law. Such late payment fee shall be calculated on the basis of a three hundred sixty-five (365) day year from the date payment is due through and including the
date upon which CBI has collected the funds. 
  
 10.5
Royalty Payment Periods and Reports. 
  
 10.5.1
Prism shall pay Royalties to CBI on a quarterly basis, measured by each calendar quarter, beginning with the calendar quarter in which Prism commences commercial sales of any Licensed Product (“Royalty Payment Period(s)”). Prism shall pay
Royalties in full within forty five (45) days after the end each Royalty Payment Period. All Royalties and Fees shall be paid in U.S. dollars and directed to such addresses and payees as CBI may designate in writing from time to time.

  
 10.5.2 Whether or not Royalties are payable at the end of a
Royalty Payment Period, Prism shall provide to CBI within forty five (45) days after the end of such Royalty Payment Period a written report (“Quarterly Royalty Report(s)”) summarizing the volume of sales of each Licensed Product in
each jurisdiction, gross revenue received on the sale or other disposition of each such Licensed Product in each jurisdiction, deductions to determine Net Sales thereof, Net Sales, and Royalties payable. 
  
 10.5.3 On or about each anniversary of the Effective Date, Licensee shall
provide a detailed written report to CBI on the progress of its efforts to develop, obtain regulatory approval for, and commercialize the Licensed Products. Such annual reports shall include but not necessarily be limited to specific achievements in
the prior year, any material problems or obstacles encountered, test data and results of clinical trials, as applicable, anticipated activities and achievements in the following year, and any projections or revisions thereto of future activities and
developments. Prism shall supplement such reports with additional information and data as reasonably requested by CBI. In addition, Prism shall provide to CBI written notice of material developments as they occur, including but not limited to notice
of results of clinical trials or material problems arising in the course of testing or clinical trials, new inventions or improvements developed by Prism, material filings with or responses from regulatory authorities, its intention to commerce
commercial sales of Licensed Products, and its introduction or development of new Licensed Products. 
  

 12 

 10.6 Audit Rights. Licensee shall make and maintain for a period of at least three
(3) years complete accurate records of its sales records, gross revenues and deductions in calculating Net Sales. Licensor, at its expense, shall have the right to inspect, copy and audit (itself or through its representative, subject to a
confidentiality agreement reasonably acceptable to Licensee) such books and records at the premises of Licensee during normal business hours, within five (5) business days of notice to Prism of its request to conduct such an inspection or
audit. CBI may not exercise this right more than two (2) times in any twelve (12) month period during the Term, and only one (1) time within the six (6) month period after this Agreement expires or is terminated. Prism shall
cooperate in the conduct of any inspection or audit. In the event the audit shows an underpayment, Licensee shall pay Licensor the amounts underpaid plus interest on the underpayment as set forth herein. In addition, in the event the audit shows an
underpayment of more than five percent (5%) for any applicable Royalty Payment Period, Licensee shall pay Licensor, in addition to the amounts underpaid, the reasonable costs and expenses of such audit. In the event the audit shows an
overpayment, Licensor shall pay Licensee the amount of such overpayment less the reasonable costs and expenses of such audit (not to exceed the amount of the overpayment). Any amount discovered to be due under an audit shall not give rise to a right
to terminate this Agreement for failure to make Royalty Payments if such deficiency is paid within thirty (30) days of the audit report; provided, however, that if Licensee is not in agreement with the audit report, then the Parties shall
resolve such dispute in accordance with Section 17.9 and this Agreement may not be terminable by Licensor for reasons of underpayment until the resolution of such dispute in Licensor’s favor. 
  
 10.7 Contracted Services. The Parties anticipate that Prism may
desire to retain independent contractors to perform services for it in the course of developing and obtaining regulatory approval for the Licensed Products. However, wherever Prism requires services of a kind normally provided by CBI (i.e.,
pre-clinical research or other services as then described at CBI’s web site), Prism agrees that it shall first consider contracting and retaining CBI to perform said services, to the extent that CBI is competitive from a cost and quality
perspective in Prism’s sole and absolute discretion. In the event that Prism contracts with CBI for various services prior to the time the $5,000,000 milestone Fee payment described in Section 10.1 above is due, whether or not such
services are related to the Licensed Products, the $5 million milestone Fee payment shall be reduced by the amount payable or paid to CBI by the due date of such milestone Fee payment for such contracted services. In the event the milestone for
the $5 million payment is never achieved, Prism nonetheless remains obligated to pay CBI in full for all contracted services in accordance with Prism’s agreement with CBI for such contracted services. 
  
 10.8 Fees and Expenses. Each Party will bear all fees, costs
and expenses incurred by it in respect of the negotiation, drafting and execution of the License Agreement and the consummation of the transactions contemplated thereby, including without limitation the fees and disbursements of its legal, financial
and other advisors and any and all filing fees incurred by each of them in connection with obtaining all required approvals from and submitting all required filing to, all governmental and other regulatory agencies. 
  

 13 

 11. PERFORMANCE REQUIREMENTS AND TERMINATION. 
  
 11.1 Performance Requirements. 
  
 11.1.1 Prism shall exercise commercially reasonable efforts to market, sell, promote and distribute the Licensed Products
and to maximize the development of the market therefor and the Net Sales earned therefrom. The Parties acknowledge and agree that the market potential for the Licensed Products is uncertain, and that the commercial success of same cannot be
guaranteed. 
  
 11.1.2 Prism shall exercise commercially
reasonable efforts to obtain FDA and/or USDA approval of the Licensed Products. The Parties acknowledge that there is no assurance that FDA or USDA approval of the Licensed Products can be obtained. 
  
 11.1.3 Prism shall submit a complete and bona fide IND application for at
least one Licensed Product to the FDA within 24 months after the Effective Date. 
  
 11.2 Termination. 
  
 11.2.1 Termination by CBI. CBI shall be entitled to terminate this License upon thirty (30) days written notice to Prism if: 
  

	 	(a)	Prism fails to submit an IND application for at least one Licensed Product within 24 months after the Effective Date; 

  

	 	(b)	Prism has not commenced Phase I clinical trials for at least one Licensed Product within 12 months of the IND submission date for the IND of the first Licensed Product submitted by
Prism to the FDA; or 

  

	 	(c)	Prism has not submitted an NDA to the FDA and/or USDA for at least one Licensed Product within 12 months of the completion of a Phase III clinical program as agreed upon with the
FDA in an End-of-Phase II meeting. 

  
 11.2.2
Termination by Prism. Prism may terminate this Agreement at any time, without cause, by giving thirty (30) days prior written notice thereof to CBI. 
  
 11.2.3 Termination by Either Party. 
  

	 	(a)	Either Party may terminate this Agreement upon a material or continuing breach of this Agreement by the other Party by giving thirty (30) days prior written notice of
termination, stating the claimed breach with specificity, and termination shall be effective as of the end of such 30-day notice period unless the breach is then substantially cured or the breaching Party has commenced such actions necessary to cure
the breach. 

  

 14 

	 	(b)	Either Party may terminate this Agreement immediately by giving written notice of termination in the event of a Default. Events of Default shall occur if the other Party:
(a) becomes insolvent or admits in writing its inability to pay its debts as they mature; (b) makes or attempts to make an assignment for the benefit of creditors; (c) assigns or attempts to assign this Agreement or its rights or
obligations hereunder without the non-Defaulting Party’s consent as required by this Agreement; (d) dissolves, liquidates or enters into receivership; (e) becomes the subject of voluntary or involuntary bankruptcy proceedings, and
such proceedings are not dismissed within one hundred twenty (120) days, or if this License or the rights hereunder are conveyed out of bankruptcy; (f) is convicted of any criminal offense in connection with the business associated with
the Licensed Products; (g) with respect to Prism, ceased to conduct business with respect to the Licensed Products for a period of more than three (3) months and such cessation is not due to any third party claim with respect to the
Product Intellectual Property or other legal impediment or Force Majeure Event; and (h) Prism, after receiving FDA approval to make any of the Licensed Products, loses FDA or other regulatory approval to manufacture or sell all of the Licensed
Products in the United States, and such approval is not restored within ninety (90) days; 

  
 11.2.4 Effects of Termination or Expiration. 
  

	 	(a)	In the event this Agreement is terminated for any reason the License granted herein shall terminate concurrently, and Prism agrees that it may no longer practice any of the Patents
or manufacture, use, sell, offer for sale or import any Licensed Products. Termination of this Agreement shall presumptively result automatically in termination of all sublicense agreements, and Prism shall be responsible for enforcing termination
of sublicense agreements. Notwithstanding the foregoing, CBI shall have the option, in its sole discretion, to elect by prompt written notice to Prism and the effected sublicensee prior to the effective date of termination that applicable sublicense
agreements shall remain in force and that CBI shall succeed to all of the contractual rights and obligations of Prism. 

  

	 	(b)	Upon termination or expiration, each Party shall return to the other all of the other’s Confidential Information that is capable of being returned, and destroy, in a manner
that prevents undeletion, Confidential Information that is not capable of being transported. Except as otherwise provided herein, neither Party may use the other’s Confidential Information after termination or expiration of this Agreement.
Notwithstanding anything to the contrary, Prism may retain and use original Confidential Information to the extent that it relates to or is connected with any intellectual property owned by Prism. 

  

	 	(c)	In the event of termination of this Agreement other than because of the breach of CBI, upon such termination Prism shall deliver and assign to CBI all data collected, test results,
regulatory filings and approvals and all other work product created by or for it, after the Effective Date and prior to the effective date of termination, in connection with the design, development, or regulatory approval of the Licensed Products.

  

 15 

	 	(d)	Neither termination nor expiration of this Agreement shall relieve Prism or its sublicensees from their obligations to make payments then due under this Agreement or under
applicable sublicense agreements. 

  

	 	(e)	Provisions of this Agreement that, by their nature, survive its termination or expiration shall so survive, including without limitation Sections 1 (Definitions), 10 (Fees and
Royalties, to the extent still due upon termination or expiration), 11.6 (Effects of Termination or Expiration), 12.3 (Warranty Disclaimers), 13 (Limitations), 14 (Confidentiality), 15.1-15.2 (Indemnity), and 17 (Miscellaneous Terms).

  
 12. WARRANTIES; DISCLAIMERS. 
  
 12.1 Representation and Warranties of Both Parties. Each Party
represents, and warrants to the other Party that: 
  

	 	(a)	it has the corporate power and authority to enter into this Agreement and to perform its obligations hereunder; 

  

	 	(b)	the execution and delivery of this Agreement and the performance of the transactions contemplated hereby have been duly authorized by all necessary corporate action of the Party;

  

	 	(c)	the execution and delivery of this Agreement and the performance by the Party of any of its obligations under this Agreement do not and will not: 

  

	 	(i)	conflict with, or constitute a breach or violation of, any other contractual obligation to which it is a party, any judgment of any court or governmental body applicable to the
Party or its properties, or, to the Party’s knowledge, any statute, decree, order, rule or regulation of any court or governmental agency or body applicable to the Party or its properties, and 

  

	 	(ii)	require any consent or approval of any governmental authority or other person; and 

  

	 	(d)	it will, to the best of its knowledge without undertaking a special investigation, disclose to the other Party any material adverse proceedings, claims or actions that arise that
would materially interfere with that Party’s performance of its obligations under this Agreement. 

  

 16 

 12.2 Representations and Warranties of CBI. CBI warrants and represents the following:

  
 12.2.1 Right to License: CBI has full right,
power and authority, to the extent the Patents are issued, valid and enforceable in the jurisdictions in which they have issued, to grant an exclusive license to Prism in the Territory pursuant to the terms of this Agreement to practice the
technology covered by any and all Patents, and the Licensed Products, and to exercise Prism’s rights under the License. As of the Effective Date, CBI has no Knowledge of any fact or circumstances that the Licensed Products are, in or with
respect to the Territory, subject to any restrictions, covenants, licenses other than this Agreement, or judicial and administrative orders of any kind, which detract in any material respect from the value of the Licensed Products or the Product
Intellectual Property, or which could interfere with the use thereof by Prism in the Territory as contemplated by this Agreement. 
  
 12.2.2 No Inability to Receive Approval: As of the Effective Date, CBI has no Knowledge of facts that would reasonably lead it to conclude
that any of the Licensed Products will be unable to receive marketing approval from the FDA, USDA or approval from any other Regulatory Authority. Notwithstanding the foregoing, the Parties acknowledge that there is no assurance that marketing
approval can or will be achieved, and CBI makes no warranty that such approval can or will be achieved. 
  
 12.2.3 Clear Rights: As of the Effective Date, CBI has not received any notice and has no Knowledge that (i) the rights to the Product
Intellectual Property or the Licensed Products have been challenged or will be challenged in any judicial or administrative proceeding, or (ii) any person, entity or product has infringed or will infringe any patent rights encompassed by the
Licensed Products or the Product Intellectual Property and applicable to the Licensed Products, or (iii) any patent rights or other intellectual property rights, including but not limited rights of trade mark, trade dress and copyright, have
been infringed by CBI or will be infringed by Prism by virtue of performing the activities contemplated by this Agreement. 
  
 12.2.4 Intellectual Property Rights: CBI, as an inducement to Prism to enter into this Agreement, represents, warrants or covenants to
Prism, as applicable, as follows: 
  

	 	(a)	The definitions of the Patents contains a true and correct list of the Patents. The omission of any Patent from this definition shall not prejudice Prism’s right to such
intellectual property pursuant to the License. As of the Effective Date, CBI is the owner of the letters patent and patent applications identified in the definition of the Patents, and to the Knowledge of CBI the letters patent comprising the
Patents are valid and do not infringe the patent rights of any third party. 

  

	 	(b)	At the time of the execution of the assignment of the Trademark as contemplated by Section 9.1 and attached at Exhibit A, CBI is the owner of U.S. trademark registration no.
2,652,127, such registration is subsisting, and to the Knowledge of CBI no other person or entity is using the mark identified therein or any mark confusingly similar thereto with the goods identified therein. 

  

 17 

	 	(c)	CBI has taken precautions to protect the secrecy and confidentiality of the Product Intellectual Property. 

  

	 	(d)	As of the Effective Date, CBI’s ownership of the Product Intellectual Property is free and clear of any payment or Encumbrance. 

  
 12.2.5 Litigation: There is no suit, claim, action,
investigation or proceeding pending or, to the Knowledge of CBI, threatened against CBI that relates to the Licensed Products or Product Intellectual Property, or challenges or seeks to prevent or enjoin the License. CBI has no Knowledge of any
settlements, court decisions or agreements with any third party that would have an adverse effect on the Licensed Products. 
  
 12.2.6 No Brokers: CBI has not entered into any agreement, arrangement or understanding with any Person or firm which will result in the
obligation to pay any finder’s fee, brokerage commission or similar payment in connection with the transactions contemplated hereby. 
  
 12.3 Warranty Disclaimers. The warranties in Section 12 are the only warranties made by the Parties. Each Party disclaims all other
warranties and representations, express or implied, including but not necessarily limited to: the ability to achieve any technical, commercial or other result with respect to the subject matter of this License; as well as implied warranties of
title, noninfringement, noninterference, that any of the Patents or any other intellectual property associated with this Agreement is valid, enforceable or of any particular scope, merchantability, or fitness for any particular use. 
  
 13. LIMITATION OF LIABILITY. 
  
 NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR OTHERWISE, AND EXCEPT FOR
THE PARTIES’ OBLIGATIONS TO INDEMNIFY AS SET OUT HEREIN AND EXCEPT FOR INFRINGEMENT OR VIOLATION OF THE OTHER PARTY’S PATENT OR OTHER INTELLECTUAL PROPERTY RIGHTS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY WITH RESPECT TO ANY
SUBJECT MATTER OF THIS LICENSE AGREEMENT, UNDER ANY EQUITY, COMMON LAW, TORT, CONTRACT, ESTOPPEL, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY, FOR ANY INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING BUT NOT
LIMITED TO DAMAGES RESULTING FROM LOSS OF SALE, BUSINESS, PROFITS, OPPORTUNITY OR GOODWILL), EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY OF THE FOREGOING DAMAGES. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PROVISIONS OF SECTIONS 12,
13 AND 15 ARE REASONABLE ALLOCATIONS OF RISK THAT THEY ENTER INTO VOLUNTARILY. 
  
 14. CONFIDENTIALITY. 
  
 14.1 The Parties
anticipate that, in the course of their relationship in connection with this Agreement, they are likely to exchange Confidential Information. Each Party agrees to use the other’s Confidential Information only to exercise its rights and perform
its duties pursuant to this Agreement. 
  

 18 

 14.2 Each agrees not to disclose the other’s Confidential Information to third parties without the
other’s express prior, written consent, except that each may disclose the other’s Confidential Information: 
  
 14.2.1 to those of its employees, representatives and agents that it reasonably requires to have access to same in order to perform its obligations and/or
exercise its rights under this Agreement, provided such employees, representatives or agents are bound by obligations of confidentiality comparable to those set forth in this Section 14; and 
  
 14.2.2 to the extent such disclosure is reasonably necessary in filing or
prosecuting patent applications or complying with orders of any court, other Governmental Entity or arbitral body or with applicable laws or governmental regulations, provided that if a Party intends to make any such disclosure, it shall use
reasonable efforts to give reasonable advance written notice to the other Party of such intended disclosure to permit such other Party to seek such protective orders or other similar relief as may be available in the circumstances. 
  
 14.3 Each Party agrees to safeguard the other’s Confidential Information
against unauthorized use and disclosure with means at least as stringent as it employs to safeguard its own Confidential Information, and in no event with less than reasonable means. 
  
 14.4 The obligations of confidentiality in this Section 14 are in addition to and not in lieu of any confidentiality
obligations the Parties may owe each other as a matter of underlying law, and the obligations herein shall survive the termination or expiration of this Agreement for so long as the information at issue continues to meet the definition of
Confidential Information set forth in Section 1.2. 
  
 15. INDEMNIFICATION
AND INSURANCE. 
  
 15.1 Indemnification.

  

	 	(a)	INDEMNIFICATION BY LICENSOR: 

  
 Licensor shall indemnify and hold Licensee and its affiliates, officers, directors, employees, and agents harmless from and against any and all liability,
damage, loss, cost (including reasonable attorneys’ fees) and expenses related to any third-party claims (“Licensee’s Losses”) to the extent arising from or in connection with: Licensor’s breach of any representation,
warranty, covenant or agreement contained in this Agreement. 
  

	 	(b)	INDEMNIFICATION BY LICENSEE: 

  
 Licensee, to the extent not caused by, related to or in any way connected with the acts of Licensor, shall indemnify and hold Licensor and its affiliates,
officers, directors, employees, and agents harmless from and against any and all liability, damage, loss, cost (including reasonable attorneys’ fees) and expenses (“Licensor’s Losses”) to the extent arising from or in connection
with any third-party claims: (a) of bodily injury, death or property damage relating to the 
  

 19 

 development, manufacture, use, distribution, importation, exportation or sale of, any Licensed Product as
authorized under this License; (b) excluding Losses related to or connected with Prism’s exercise of this License, that any Licensed Product, or the manufacture, use, sale, offer for sale or import thereof infringes, whether directly or
under the doctrine of equivalents, or otherwise violates the patent or other intellectual property rights of such third party or its licensors, or (c) otherwise relating to Licensee’s advertising, promotion or sale of Licensed Products or
sublicensing of rights permitted herein; provided, however, that excluded from this Section 15.1(b) are all matters which are covered by CBI’s indemnities under Section 15.1(a). 
  

	 	(c)	Licensee’s obligation to indemnify Licensor pursuant to a claim that the Product Intellectual Property, including the Patent, infringes third-party intellectual property rights
pursuant to Section 15.1(b)(b) shall apply only if and to the extent that Licensor’s Losses incurred in connection with such claim exceed the aggregate Fees and/or Royalties that Licensee has paid to Licensor at the time a claim for
indemnification under Section 15.1(b)(b) is made by Licensor. 

  
 15.2 Procedure. 
  
 15.2.1 In order for an indemnified party under this Article 15 (an “Indemnified Party”) to be entitled to any indemnification provided for under this Agreement, such Indemnified Party will, promptly following the discovery
of the matters giving rise to any Loss, notify the indemnifying party under this Article 15 (the “Indemnifying Party”) in writing of its claim for indemnification of such Loss; provided, however, that failure to give
such prompt notification will not affect the indemnification provided hereunder except to the extent the Indemnifying Party will have been actually prejudiced as a result of such failure. Thereafter, the Indemnified Party shall promptly deliver to
the Indemnifying Party, at the Indemnifying Party’s expense, all information and documentation reasonably requested by the Indemnifying Party with respect to such Loss and the Indemnified Party shall cooperate fully with the Indemnifying Party,
at the Indemnifying Party’s expense, in the defense of such claim. 
  
 15.2.2 If an Indemnified Party gives notice to the Indemnifying Party pursuant to Section 15.2.1., the Indemnifying Party shall control the defense and settlement of such third-party claim (unless the Indemnifying Party is also
a person against whom the third-party claim is made and the Indemnified Party determines in good faith that joint representation would be inappropriate, in which case the Indemnified Party shall have the right to select separate counsel to
participate in the defense of such action on its behalf, and the Indemnified Party shall bear the cost and expense of such separate defense, unless and to the extent the Parties otherwise agree or it is determined through arbitration hereunder that
such costs and expense are or were required to be indemnified by the Indemnifying Party), with counsel selected by the Indemnifying Party that the Indemnified Party consents to as reasonably satisfactory, which consent shall not be unreasonably
withheld. The Indemnifying Party shall not, so long as it diligently conducts the defense of such third party claim be liable to the Indemnified Party under this Article 15 for any fees of other counsel or any other expenses with respect to
the defense of such third party claim. No compromise or settlement of such third-party claim may be effected by either Party in a way 
  

 20 

 that prejudices or adversely impacts the other Party without the other Party’s prior written consent, which consent
shall not be unreasonably withheld. Notwithstanding the assumption by the Indemnifying Party of the defense of any third-party claim as provided in this Article 15, the Indemnified Party will be permitted to join such defense and to employ
counsel at its own expense. If notice is given to an Indemnifying Party of the assertion of any third-party claim and the Indemnifying Party does not, within ten (10) days after the Indemnified Party’s notice is given, give notice to the
Indemnified Party of its assumption of the defense of such third-party claim, the Indemnifying Party will be bound by any determination made in such third-party claim or any reasonable compromise or settlement effected in good faith by the
Indemnified Party. Indemnified Party shall have the right to maintain the defense of such claim or action and the Indemnifying Party shall provide reasonable assistance to the Indemnified Party in the defense of such third party claim and to bear
the reasonable cost and expense of such defense (including attorney’s and experts’ fees and expenses). 
  
 15.2.3 Notwithstanding the provisions of Section 17.9, the Parties each consent to the nonexclusive jurisdiction of any court in which a
proceeding in respect of a third-party claim is brought by a third party either against Prism or CBI for purposes of defense of such third party claim and each Party agrees that process may be served on it with respect to indemnification with
respect to such third party claim in accordance with Section 17.12. 
  
 15.2.4 This Article 15 sets forth the Parties’ complete and sole obligations to indemnify one another for Losses arising from or connected with third party claims. 
  
 15.3 Insurance. Licensee shall procure and maintain during the
term of this Agreement, commercial general liability insurance, including without limitation, products liability and contractual liability insurance, in commercially reasonable amounts, and with the insurance carriers licensed to do business in the
jurisdiction where Licensee is located; provided, however, that Licensee shall not be required to maintain product liability coverage so long as Licensed Products are not being sold or used with humans. 
  
 16. PUBLICATION. 
  
 16.1 The Parties will consult with each other before issuing any press release or otherwise making any public statement or
other disclosure with respect to this License Agreement. Neither Party will issue any such press release or make any such public statement or other disclosure prior to receiving written approval from the other Party, unless compelled to do so
under a regulatory or legal obligation. 
  
 16.2 From time to
time, Prism or CBI may desire to publish or otherwise publicly announce the results of testing or from the research or development program involving any Licensed Products orally, or in writing. Prior to such publication or public announcement of
findings, each of the Parties has the right to review the intended manuscript, poster presentation, or public announcement prior to publication and each of the Parties shall return to the other their comments regarding such announcement within
thirty (30) days. Neither Party shall unreasonably withhold its consent to such publication. 
  

 21 

 17. MISCELLANEOUS. 
  
 17.1 Entire Agreement. This Agreement sets forth the entire agreement and understanding of the Parties on the subject matter herein, and it
supersedes all prior agreements and understandings between the Parties with respect to its subject matter. No amendment or modification to this Agreement shall be effective unless in writing signed by an authorized representative of each Party.

  
 17.2 Assignment. Neither Party may assign its
rights or delegate its obligations under this License Agreement without the express prior written consent of the other Party, except that Licensee’s rights and obligations may succeed by operation of law to the surviving entity in a merger or
consolidation in which it participates or to a successor of all or substantially all of Licensee’s assets or stock. Any unauthorized assignment or transfer of this License Agreement shall be void. Subject to the foregoing, the rights and
liabilities of the Parties will bind and inure to the benefit of their respective successors, permitted assigns, insurers and reinsurers. 
  
 17.3 Relationship. The Parties are independent entities. Nothing contained in this License Agreement or the Parties’ conduct hereunder
shall be construed to create a relationship of partners, joint venturers, principal and agent or employer/employee. Neither Party shall have any right, power or authority, express or implied, to bind the other Party. 
  
 17.4 Export Controls. Prism acknowledges and agrees to fully
comply with all applicable U.S. export and import control laws (“Control Laws”). Without limiting the foregoing, Prism agrees not to engage in any exports or imports of technical data or information relating directly or indirectly to the
Patents or the Licensed Products under the Control Laws, including but not limited to transmitting or sending any information outside of the U.S., or a party allowing its foreign national employees to receive any information, even within the U.S.,
without: (A) first verifying whether the information to be disclosed or received constitutes an export or an import under any Control Law; (B) complying with all licensing requirements or exclusions or exemptions thereto under the Control
Laws; and (C) upon the request of CBI, sharing all Control Law advisory opinions, classification requests, commodity jurisdiction requests, and government agency correspondence with CBI. 
  
 17.5 Survival. The Parties agree that (a) the representations
and warranties contained in Section 12 shall survive the execution and delivery of this Agreement and remain true during the Term, except with respect to those representations and warranties which are limited to the Effective Date or which otherwise
are limited to a particular time or which refer to past actions, which shall be true as of the Effective Date, and (b) except as is provided in Section 11.2.4(e), the Parties agree that each Party’s covenants and agreements under this Agreement
shall remain in effect only during the Term until performed by such Party, subject to any conditions to performance, discharge of the duty to perform and similar traditional contract interpretation principles. Notwithstanding the foregoing, nothing
in this Agreement shall be construed to release either Party from any obligations that were incurred prior to the effective date of termination of this Agreement and each Party may bring a claim under this Agreement and as permitted by this
Agreement (whether for indemnification, breach or otherwise) in accordance with the relevant statute of limitations of the governing law defined in Section 17.10. 
  

 22 

 17.6 Severability. If any provision of this Agreement or portion thereof is finally held by
a court of competent jurisdiction to be unenforceable, void, invalid, or otherwise contrary to law or equity, the Parties agree that such provision or portion thereof shall be reformed automatically as necessary to cure such defect, or if necessary
to delete such provision or portion thereof, and that the remainder of this Agreement, and the remainder of this License Agreement shall continue in full force and effect. 
  
 17.7 Waiver. The observance of any provision of this Agreement may be waived (either generally or in any
particular instance and either retroactively or prospectively) only in a writing signed by both Parties. The failure of either Party to enforce its rights under this Agreement at any time for any period shall not be construed as a waiver of such
rights for any future period. 
  
 17.8 Compliance with
Law. Each Party agrees that it shall comply with all applicable laws, regulations and ordinances in connection with its conduct of its business associated with this Agreement, and Prism further agrees to require any affiliates and
sublicensees to similarly comply with all applicable laws, regulations and ordinances. 
  
 17.9 Arbitration. Except as is allowed herein to the contrary, any controversy, dispute or claim arising out of, in connection with, or in relation to the interpretation, performance or breach of this
Agreement, or any amount due hereunder, including, without limitation, any claim based on contract, tort or statute shall be settled as follows: The Advisory Committee shall initially meet to attempt to resolve disputes. If the Advisory
Committee cannot resolve such disputes within seven (7) days after either Party requests such a meeting, then either Party may request that the chief executive officer of each Party meet to attempt to resolve such dispute. If the chief
executive officers cannot resolve such disputes within seven (7) days after either Party requests such a meeting, then such controversy, dispute or claim shall be settled, solely and exclusively, by arbitration. Any arbitration pursuant to this
Agreement shall be conducted in Philadelphia, Pennsylvania before and in accordance with the then existing Commercial Dispute Resolution Procedures through the American Arbitration Association, using an arbitrator mutually selected by CBI and Prism
from a list of those designated by the American Arbitration Association or, if the Parties disagree, otherwise appointed by the American Arbitration Association. Any arbitration shall be final and binding. The findings shall be delivered in a
written opinion with findings of facts based on the record. Any judgment upon any interim or final award or order rendered by the arbitrator may be entered by any State or Federal court having jurisdiction thereof. The Parties intend that any
agreement pursuant hereto to arbitrate be valid, enforceable and irrevocable. Each Party in any arbitration proceeding commenced hereunder shall bear such Party’s own costs and expenses (including expert witness and attorneys’ fees) of
investigating, preparing and pursuing such arbitration claim. Notwithstanding the foregoing, at any time, a Party may seek or obtain preliminary, interim or injunctive or conservatory measures from either the arbitrators or from a court. 

 
 17.10 Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of Delaware, and without regard to its choice of law rules. 
  

 23 

 17.11 Headings. The headings used in this License Agreement are for convenience only and
are not to be used in interpreting the rights and obligations of the Parties under this License Agreement. 
  
 17.12 Counterparts; Facsimile. This Agreement shall be effective upon full execution by facsimile or original, and a facsimile signature
shall be deemed to be and shall be as effective as an original signature. This License Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which taken together shall constitute one single
agreement between the Parties. 
  
 17.13 Notices.
Any notice or other communication required or permitted to be given hereunder, shall be in writing and shall be deemed to be given when delivered by hand or commercial overnight courier service with tracking capabilities or sent by certified mail
(return receipt requested), all of the foregoing costs and postage prepaid, to the Parties at the addresses set forth below, or such other address as a Party may specify for the other by written Notice; 
  

			
	 For CBI:
 Attention: Robert B. Harris, Ph.D.

President and CEO
 Commonwealth Biotechnologies
 601 Biotech Drive
 Richmond, VA 23235
	  	 For Prism:
 Attention: Warren D. Cooper
 President and CEO
 Prism Pharmaceuticals Inc
 1150 First Ave, Suite 1050,
 King of Prussia, PA, 19406
  
 copy to:
 Dinsmore & Shohl LLP
 Attn: Paul R. Mattingly, Esq.
 1900 Chemed Center
 255 East Fifth Street
 Cincinnati,
Ohio 45202

  
 17.14 Force
Majeure. Neither Party hereto shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement when such
failure or delay is caused by or results from causes beyond the reasonable control of the affected Party, which may include but not be limited to fire, floods, embargos, war, acts of war (whether war be declared or not), insurrections, riots, civil
commotions, strikes, lockouts or other labor disturbances, acts of God, omissions or delays in acting by any Governmental Entity (including the FDA and Regulatory Authorities) or the other Party hereto (“Force Majeure Event”). 

 
 17.15 Drafting. Each Party and its counsel have reviewed and
had the opportunity to contribute to the drafting of this License Agreement, and the rule of construction providing that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this License
Agreement. This License Agreement shall be construed as drafted by both Parties. 
  

 24 

 IN WITNESS WHEREOF, the Parties hereto have caused this License Agreement to be signed by their duly
authorized representatives. 
  

							
	COMMONWEALTH BIOTECHNOLOGIES, INC.	 	PRISM PHARMACEUTICALS, INC.
				
	By:	 	 /s/ Robert B. Harris

	 	By:	 	 /s/ Warren D. Cooper

	 	 	Robert B. Harris, Ph.D., President and CEO	 	 	 	Warren D. Cooper, President and CEO
		
	Dated: 1/3/06	 	Dated: January 3, 2006

  

 25 

 Schedule 5.2 
  
 Initial Advisory Committee 
  

			
	For CBI:	 	Dr. Richard J. Freer
	 	 	Dr. Robert B. Harris
		
	For Prism:	 	Dr. Warren Cooper
	 	 	Dr. Dan Cushing

  

 26 

 Exhibit A 
  
 TRADEMARK ASSIGNMENT 
  
 WHEREAS Commonwealth Biotechnologies, Inc,, a Virginia corporation having as its principal place of business at 601 Biotech Drive, Richmond, Virginia
23235 (“CBI”), has used and registered the trademark HEPARREST for use with pharmaceuticals, namely cardiovascular agents, identified by U.S. Trademark Registration No. 2,652,127 (the “Product Trademark”); 
  
 WHEREAS Prism Pharmaceuticals, Inc., a Delaware corporation having as its
principal place of business 1150 First Ave., Suite 1050, King of Prussia, Pennsylvania 19406 (“Prism”) has entered into a “Patent License and Development Agreement” (to which this Trademark Assignment is Exhibit A) with CBI for
the purpose of acquiring the right to commercialize and sell products with technology licensed by CBI; 
  
 WHEREAS, Prism desires to own and have the option to use the Product Trademark with such products, and pursuant to the Patent License and Development
Agreement CBI is willing to assign and convey its rights in the Product Trademark to Prism, 
  
 NOW, THEREFORE, pursuant to the terms of the Patent License and Development Agreement and in partial consideration of the covenants made therein, and for other good and valuable consideration, the receipt and
sufficiency of which each party hereby acknowledges, CBI does hereby assign and convey to Prism all of its right, title and interest in and to the Product Trademark, all registrations and applications for registration associated therewith, the
goodwill of the business symbolized by the Product Trademark, and all common law rights associated with the Product Trademark, whether registered or unregistered. 
  
 This Assignment shall be effective as of the 3rd day of January, 2006. 
  

			
	COMMONWEALTH BIOTECHNOLOGIES, INC.
		
	By:	 	 /s/ Robert B. Harris, Ph.D.

	Its:	 	President and CEO
	Date:	 	1/3/06

  
 Acknowledgment 
  
 On this 3rd day of January, 2006, before me appeared Robert B. Harris, the person who signed the foregoing instrument, who acknowledged that he or she signed it
as a free act on behalf of the identified corporation and with authority to do so. 
  

			
	COMMONWEALTH OF VIRGINIA	 	)
	CHESTERFIELD COUNTRY	 	)

  
 Subscribed and sworn
to before me this 3rd day of January, 2006. 
 My commission expires: April 30, 2008. 
  

	
	 /s/ James H. Brennan

	Notary Public

  

 27

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