CYPRESS BIOSCIENCE INC
EXHIBIT 10.24
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<TYPE>EX-10.24
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<DESCRIPTION>EXHIBIT 10.24
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<BR></FONT><FONT SIZE=2><B>Exhibit 10.24    <BR>    </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2><B>***Text Omitted and Filed Separately<BR>
Confidential Treatment Requested<BR>
Under 17 C.F.R. &sect;&sect; 200.80(b)(4)<BR>
and 240.24B-2  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="lo1113_first_restated_trademark_agreement"> </A>
<A NAME="toc_lo1113_2"> </A>
<BR>    FIRST RESTATED TRADEMARK AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS FIRST RESTATED TRADEMARK AGREEMENT</B></FONT><FONT SIZE=2> (this </FONT><FONT SIZE=2><B><I>"Agreement"</I></B></FONT><FONT SIZE=2>) is
entered into as of January&nbsp;9, 2004 (the </FONT><FONT SIZE=2><B><I>"Effective Date"</I></B></FONT><FONT SIZE=2>) by and between </FONT><FONT SIZE=2><B>Pierre Fabre
M&eacute;dicament</B></FONT><FONT SIZE=2>, organized under the laws of France having an address of 45, place Abel-Gance, 92654 Boulogne cedex, France
(</FONT><FONT SIZE=2><B><I>"Pierre Fabre"</I></B></FONT><FONT SIZE=2>), and </FONT><FONT SIZE=2><B>Cypress Bioscience,&nbsp;Inc.</B></FONT><FONT SIZE=2>, a Delaware corporation having an address of 4350
Executive Drive, Suite 325, San Diego, CA 92121, U.S.A. (</FONT><FONT SIZE=2><B><I>"Cypress"</I></B></FONT><FONT SIZE=2>) and amends and restates in its entirety the Trademark Agreement between Pierre Fabre
and Cypress dated August&nbsp;1, 2001 (the </FONT><FONT SIZE=2><B><I>"Prior Agreement"</I></B></FONT><FONT SIZE=2>). </FONT><FONT SIZE=2><I>Capitalized terms used in this Agreement that are not otherwise
defined shall have the meaning set forth in the Third Restated License Agreement of even date herewith between Cypress and Pierre Fabre (the </I></FONT><FONT SIZE=2><B><I>"License
Agreement"</I></B></FONT><FONT SIZE=2><I>).</I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo1113_recitals"> </A>
<A NAME="toc_lo1113_3"> </A>
<BR></FONT><FONT SIZE=2><B>RECITALS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> Pierre Fabre and Cypress are entering into the License Agreement concurrently with the execution of this
Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> under the Prior Agreement, Pierre Fabre granted to Cypress a license to use certain trademarks in the Licensed Territory, with
the right to sub-license such rights; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> Cypress desires, concurrently with entering into this Agreement, to enter into a Collaboration Agreement with Forest granting
Forest, among other things, an exclusive sub-license to use, sell and offer for sale Licensed Product under the Trademarks in the Field in the United States of America, its territories and
possessions, with an option to extend the territory to Canada; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> Cypress has requested that Pierre Fabre amend certain provisions of the Prior Agreement in order to facilitate Cypress' entering
into the Collaboration Agreement with Forest, and Pierre Fabre has agreed to amend and restate the Prior Agreement in its entirety, as described herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW, THEREFORE,</B></FONT><FONT SIZE=2> in consideration of the foregoing premises and the mutual covenants and agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: </FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trademark License.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;Trademarks; Ownership and Use of Trademarks.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pierre Fabre and Cypress shall mutually agree upon one or more
trademarks under which Cypress, its Affiliates and sub-licensees will exclusively market Licensed Products, other than non-branded Generic Products (the </FONT> <FONT SIZE=2><B><I>"Trademarks"</I></B></FONT><FONT SIZE=2>), in the Licensed Territory,
except that, with respect to the countries of the Licensed Territory that are part of the
sub-license granted to Forest, Pierre Fabre and Cypress agree that in the event of a dispute as to which Trademark(s) to use in such countries, the final decision of the Trademark(s) shall
be made by Forest, as contemplated under the CollaborationAgreement. Cypress will consider, and will cause Forest to consider, trademarks suggested by Pierre Fabre, and Pierre Fabre agrees to consider
trademarks suggested by Cypress based upon market research conducted by Forest. Pierre Fabre shall own and shall retain the ownership of the entire right, title and interest in and to the Trademarks.
If any Trademark selected pursuant to this Section&nbsp;1.1 is a registered trademark of a sub-licensee of Cypress, Cypress shall cause its sub-licensee, to promptly assign
to Pierre Fabre, without charge, such </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<P><FONT SIZE=2>trademark
on an exclusive and worldwide basis, subject to the terms of this Agreement. Pierre Fabre may use, sell and offer for sale Licensed Product under such Trademarks in the Rest of the World
under terms to be mutually agreed upon between Pierre Fabre and Cypress, only with the prior written consent of Cypress, such consent not to be unreasonably withheld (with the understanding that
protection of exclusivity with respect to Licensed Product in the United States market would be a reasonable basis for withholding consent). Cypress consents to Pierre Fabre's reference to the
Trademark in the Rest of the World after the first use of the Trademark by Cypress or its sub-licensee in the United States when referencing the name under which Milnacipran is marketed in
the United States in communications directed to physicians and professionals and in scientific publications, posters and abstracts. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;Registration of the Trademarks.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;While Cypress and/or its sub-licensees are marketing Licensed
Products using the Trademarks, Pierre Fabre shall, at its own cost and expense, file in the Licensed Territory and endeavor in good faith to obtain the registration of the applicable Trademarks in the
Licensed Territory, and when registered, thereafter maintain the applicable Trademarks in the Licensed Territory at its own expense. Pierre Fabre shall keep Cypress, Forest and any other
sub-licensees of which it is aware, informed of progress with regard to the prosecution, maintenance, enforcement and defense of the Trademarks by providing Cypress and its
sub-licensees with copies of official actions, amendments and responses with respect to such prosecution. In the event that Pierre Fabre desires to abandon any of the Trademarks in the
Licensed Territory, Pierre Fabre shall provide reasonable prior written notice to Cypress of such intention to abandon and shall, at Cypress' request, assign such Trademark (including all associated
goodwill) to Cypress and such Trademark shall be excluded from the Trademarks subject to this Agreement. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;License to Trademarks.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pierre Fabre hereby grants to Cypress an exclusive license, with the right to
sub-license to a sub-licensee of rights under the License Agreement, to identify Licensed Product to be packaged and sold by Cypress and its sub-licensees under the
License Agreement under the Trademarks in the Licensed Territory and to promote, market, use, sell and offer for sale such Licensed Products in the Licensed Territory under the Trademarks during the
Term. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;Quality Control.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The nature and quality of Licensed Products advertised or sold by Cypress or its
sub-licensees on which the Trademarks appear shall conform to quality standards and requirements for packaging and quality control of Licensed Product, as set forth in specifications for
Licensed Product included in filings with the FDA or other regulatory authority with respect to Licensed Product. Cypress agrees to cooperate with Pierre Fabre to enable Pierre Fabre to control the
nature and quality of the use of the Trademarks such that Pierre Fabre may verify that the use of the Trademarks is consistent with such quality standards and requirements for packaging and quality
control. From time to time and upon request by Pierre Fabre, Cypress shall provide Pierre Fabre with samples of Licensed Product. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;Rights as Between Parties.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Cypress acknowledges, as between the parties, the exclusive rights, title and
interest of Pierre Fabre in and to the Trademarks and will not do or cause to be done any act or thing contesting or, in any way, impairing or tending to impair any part of said right, title and
interest during the Term and after its expiration. Cypress will not make any representations or take any actions, which may be taken to indicate that it has any right, title or interest in or to the
ownership or use of the Trademarks except under the terms of this Agreement and acknowledges that nothing contained in this Agreement shall give Cypress any right, title or interest in or to the
Trademarks, except those rights set forth in this Agreement and the License Agreement. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;Infringement.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Infringement by Third Parties.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pierre Fabre and Cypress
shall promptly notify the other in writing of any alleged or threatened infringement or any challenge to the validity of the Trademarks or any challenge to Pierre Fabre's ownership of or Cypress'
and/or its sub-licensees' </FONT></P>

</UL>
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<P><FONT SIZE=2>right
to use the Trademarks of which they become aware. Both parties shall use their commercially reasonable efforts in cooperating with each other to terminate such infringement without litigation.
So long as Forest has rights under the Licensed Technology, Forest shall have the first right to bring and control any action or proceeding with respect to infringement of any of the Trademarks at its
own expense and by counsel of its own choice, and Pierre Fabre and Cypress shall each have the right, at its own expense, to be represented in any such action or proceeding. If Forest fails to bring
an action or proceeding within (a)&nbsp;45&nbsp;days following the notice of alleged infringement or (b)&nbsp;20&nbsp;days before the time limit, if any, set forth in the appropriate laws and
regulations for the filing of such actions, whichever comes first, or Forest no longer has rights under the Licensed Technology, Pierre Fabre (or Cypress or its sub-licensee if Pierre
Fabre declines to do so) shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and Cypress and its sub-licensee (or Pierre Fabre if
Cypress or its sub-licensee brings such action) shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. In the event a party brings an
infringement action, the other party or parties shall cooperate fully, including if required to bring such action, the furnishing of a power of attorney. No party shall have the right to settle any
infringement litigation under this Section&nbsp;1.6(a) relating to the Trademarks without the prior written consent of the other party. Except as otherwise agreed to by the parties as part of a
cost-sharing arrangement, any recovery realized as a result of such litigation, after reimbursement of any litigation expenses of Pierre Fabre and Cypress or its sub-licensee,
shall be retained by the party that brought and controlled such litigation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Infringement of Third Party Rights.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each party shall
promptly notify the other in writing of any allegation by a Third Party that the activity of either of the parties pursuant to this Agreement infringes or may infringe the intellectual property rights
of such Third Party. Cypress or its sub-licensee shall have the first right to control any defense of any such claim alleging that the use of the Trademarks in relation with Licensed
Product infringes any Third Party rights in the Licensed Territory, at its own expense and by counsel of its own choice, and Pierre Fabre shall have the right, at its own expense, to be represented in
any such action by counsel of its own choice. If Cypress or its sub-licensee fails to proceed in a timely fashion with regard to such defense, Pierre Fabre shall have the right to control
any such defense of such claim at its own expense and by counsel of its own choice, and each of Cypress and its sub-licensee shall have the right, at its own expense, to be represented in
any such action by counsel of its own choice. No party shall have the right to settle any trademark infringement litigation under this Section&nbsp;1.6(b) relating to the use of the Trademarks in
the Licensed Territory without the consent of such other party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;In the event Forest does not have rights under the Licensed Technology, Pierre Fabre in lieu of Forest shall have the
first right to bring and control any action or proceeding referenced in this Section&nbsp;1.6 and Cypress shall otherwise retain its same rights under this Section&nbsp;1.6. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7&nbsp;&nbsp;&nbsp;&nbsp;Goodwill.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any accretion of goodwill derived by Cypress, its Affiliates or sub-licensees from the
use of the Trademarks shall accrue to Pierre Fabre and Pierre Fabre may call for a confirmatory assignment thereof. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8&nbsp;&nbsp;&nbsp;&nbsp;Registered User.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;Where required, Pierre Fabre shall make applications to the Registrar of Trademarks (or equivalent) for the registration
of Cypress and its sub-licensees as registered users of the Trademarks in respect of each registration of the Trademark and Cypress and its sub-licensees shall
co-operate with Pierre Fabre in making such applications. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;Cypress and its sub-licensees shall execute further documents, depose to or swear or procure the deposing to
or swearing of such declarations or oaths and do any act or thing and </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>provide
any information or evidence which may be necessary or desirable for registering and maintaining registration of Cypress and its sub-licensees as registered users. </FONT></P>

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<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9&nbsp;&nbsp;&nbsp;&nbsp;Reasonable Assistance.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Cypress and its sub-licensees will, upon request, supply Pierre Fabre or
its authorized representative with any information as to its use of the Trademarks which Pierre Fabre may require and will render any assistance reasonably required by Pierre Fabre in securing and
maintaining the registration(s) of the Trademarks in the Licensed Territory. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10&nbsp;&nbsp;&nbsp;&nbsp;Royalty Payments.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Earned Royalties.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the right and license
hereby granted, during the Term, Cypress shall pay, or cause its sub-licensees to pay, to Pierre Fabre a royalty of </FONT> <FONT SIZE=2><B>[...***...]</B></FONT><FONT SIZE=2> of Net Sales of Licensed Product made by Cypress, its Affiliates and
sub-licensees in the Licensed
Territory; </FONT><FONT SIZE=2><I>provided that</I></FONT><FONT SIZE=2> no royalty shall be payable under this Section&nbsp;1.10 with respect to any Generic Product that is not sold or offered for
sale under a Trademark. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Payments&#151;Records&#151;Audits.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Payment; Reports.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Royalty payments and reports for the sale
of Licensed Products shall be calculated and reported for each calendar quarter. All payments due to Pierre Fabre shall be paid within 60&nbsp;days of the end of each calendar quarter, unless
otherwise specifically provided herein. Each payment of royalties shall be accompanied by the report contemplated under Section&nbsp;10.1 of the License Agreement or a substantially similar report. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Exchange Rate; Manner and Place of Payment.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All payments
hereunder due and payable by Cypress to Pierre Fabre shall be payable in Euros. With respect to </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iii)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;each quarter, whenever conversion of payments from any foreign currency shall be required, such
conversion shall be made at the rate of exchange reported in </FONT><FONT SIZE=2><I>The Wall Street Journal</I></FONT><FONT SIZE=2> (absent any error), on the last business day of the applicable
quarter. All payments owed under this Agreement shall be made by wire transfer to a bank and account designated in writing by the party entitled to receive such payment, unless otherwise specified in
writing by such party.&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iv)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Withholding of Taxes.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pierre Fabre will pay any and all
taxes levied on account of such payment. If any taxes are required to be withheld by Cypress, Cypress will (a)&nbsp;deduct such taxes from the remitting payment, (b)&nbsp;timely pay the taxes to
the proper taxing authority, and (c)&nbsp;send proof of payment to Pierre Fabre and certify its receipt by the taxing authority within 60&nbsp;days following such payment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(v)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Records and Audits.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the Term and for a period of four
years thereafter, Cypress shall keep complete and accurate records pertaining to gross sales and Net Sales of Licensed Product on which a royalty is due hereunder, including the expenses incurred by
Cypress, in sufficient detail to permit Pierre Fabre to confirm the accuracy of all payments due hereunder. Pierre Fabre shall have the right to cause an independent, certified public accountant
reasonably acceptable to Cypress to audit such records to confirm Net Sales and payments for a period covering not more than the preceding four years. Such audits may be exercised during normal
business hours upon reasonable prior written notice to Cypress; </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> such audits may not be performed more than one time in each calendar
year. Prompt adjustments shall be made by the parties to reflect the results of such audit. Pierre Fabre shall bear the full cost of such audit unless such audit discloses a variance of more than 5%
from the amount of the Net Sales for any quarterly period or the corresponding payments due under this Agreement. In such case, Cypress shall bear the full cost of such audit. In the event of
underpayment, Cypress shall promptly remit to Pierre Fabre the amount of any underpayment. </FONT></P>

</UL>
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<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(vi)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Prohibited Payments.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of
this Agreement, if Cypress is prevented from paying any payments due hereunder by virtue of the statutes, laws, codes or governmental regulations of the country from which the payment is to be made,
then such payments may be paid by depositing funds in the currency in which accrued to Pierre Fabre account in a bank acceptable to Cypress in the country whose currency is involved. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(vii)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Late Payments.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In the event that any payment due hereunder
is not made when due, the payment shall accrue interest from the date due at the rate of 1.5% per month; </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> that in no event shall such
rate exceed the maximum legal annual interest rate; </FONT><FONT SIZE=2><I>provided further</I></FONT><FONT SIZE=2> that no such interest shall accrue until the other party has provided written
notice of such late payment or during any period that any dispute with respect to a payment is being diligently pursued in good faith by the party from whom such payment is claimed. The payment of
such interest shall not limit a party from exercising any other rights it may have as a consequence of the lateness of any payment. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11&nbsp;&nbsp;&nbsp;&nbsp;Ownership of the Trademarks.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pierre Fabre has the right to grant Cypress the exclusive license granted
under Section&nbsp;1.3 hereof and such license does not conflict with or violate the terms of any agreement between Pierre Fabre and any Third Party. Pierre Fabre agrees to notify Cypress, at the
time of the selection of any Trademark, if there is any royalty obligation due by Pierre Fabre to any Third Party with respect to such license, and if such license is subject to termination or
limitation by any Third Party. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12&nbsp;&nbsp;&nbsp;&nbsp;Term and Termination.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Term.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The term of this Agreement (the </FONT> <FONT SIZE=2><B><I>"Term"</I></B></FONT><FONT SIZE=2>) shall commence on the Effective Date
and shall remain in full force and effect for so long as Cypress, its Affiliates and
sub-licensees continue to sell Licensed Product under any of the Trademarks in the Licensed Territory unless earlier terminated pursuant to Section&nbsp;1.12(b) or 1.12(c). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination for Cause; Termination by Either Party.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A party
shall have the right to terminate this Agreement upon 90&nbsp;days' prior written notice to the other upon the occurrence of any of the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Upon or after the bankruptcy, insolvency, dissolution or winding up of the other party (other than a dissolution or
winding up for the purpose of reconstruction or amalgamation); or if a party admits in writing its inability to pay its debts as they become due, or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Upon or after the breach of any material provision of this Agreement by the other party if the breaching party has not
cured such breach within the 90&nbsp;day period following written notice of termination by the non-breaching party or, if such breach is not susceptible of cure within such 90&nbsp;day
period, the breaching party has not taken appropriate steps to cure during such 90&nbsp;day period and continued to diligently pursue such cure in a manner reasonably assuring such cure within a
reasonable period of time thereafter. In addition, termination shall not be permitted for a payment breach where the obligation to make payment is being diligently contested in good faith by
appropriate proceedings and any required payment is promptly made following completion of dispute resolution as contemplated hereby. In any event, if such breach has not been cured within one year of
the date of occurrence of the breach, the non-breaching party may terminate this Agreement under this Section. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination of the License Agreement.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In the event the
License Agreement is terminated prior to the expiration of the License Term, for any reason other than by Cypress pursuant to Section&nbsp;14.2(a)(i)&nbsp;or (ii)&nbsp;thereof, then this
Agreement shall be terminated without any </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<UL>

<P><FONT SIZE=2>further
act or notice and Cypress shall no longer have any right to use the Trademarks in the Licensed Territory. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(d)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Effect of Termination; Surviving Obligations.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Upon expiration or termination of the Term, all rights and obligations under this Agreement shall automatically
terminate except as provided in this Section&nbsp;1.12(d). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Any sub-licenses granted to Forest under Section&nbsp;1.3 shall survive early termination by Pierre Fabre
and become direct licenses from Pierre Fabre to Forest under this Agreement with respect to the territory and field specified in the sub-license if such early termination by Pierre Fabre
occurred pursuant to (1)&nbsp;Section&nbsp;1.12(b)(i)&nbsp;or (2)&nbsp;Section&nbsp;1.12(b)(ii)&nbsp;if neither Forest nor an affiliate of Forest caused the breach of any material
provision of this Agreement by Cypress that resulted in such early termination and cures any such payment breach by Cypress to the extent related to the jurisdictions in which Forest holds a
sub-license from Cypress and, in any event, Forest agrees to assume the obligations of Cypress under this Agreement in writing and there is no evidence that an event that would be
reasonably likely to result in an event of default by Forest under the terms of this Agreement is reasonably foreseeable in the imminent future. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iii)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event that the License Agreement is terminated by Pierre Fabre pursuant to Section&nbsp;14.2(a)(i)&nbsp;of
the License Agreement and this Agreement is terminated pursuant to Section&nbsp;1.12(b)(i), then any sub-licenses granted under Section&nbsp;1.3 (other than to Forest, which shall
instead be subject to Section&nbsp;14.3(b)(iv)) shall survive the termination of the Term and become direct licenses from Pierre Fabre under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iv)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Expiration or termination of this Agreement shall not relieve the parties of any obligation accruing prior to such
expiration or termination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(v)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Within 30&nbsp;days following the expiration or termination of this Agreement, each party shall deliver to the other
party any and all Confidential Information of the other party in its possession. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(vi)</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The license granted under this Agreement will be deemed a license of rights to intellectual property for purposes of
Section&nbsp;365(n) of the U.S. Bankruptcy Code and a licensee under the Agreement will retain and may fully exercise all of its rights and elections under the United States Bankruptcy Code. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(e)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Exercise of Right to Terminate.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The use by either party
hereto of a termination right provided for under this Agreement shall not give rise to the payment of damages or any other form of compensation or relief to the other party with respect thereto. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(f)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Damages; Relief.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Termination of this Agreement shall not
preclude either party from claiming any other damages, compensation or relief that it may be entitled to upon such termination. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.1</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Dispute Resolutions and Arbitration.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In the event of a
dispute arising in connection with this Agreement, the provisions set forth as Sections 16.1 and 16.2 of the License Agreement shall apply. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.2</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York excluding its conflicts of law principles. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.3</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement; Modification.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is both a
final expression of the parties' agreement and a complete and exclusive statement with respect to all of its terms. This </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<BR>

<P><FONT SIZE=2>Agreement
supersedes all prior agreements and communications, whether oral, written or otherwise, concerning any and all matters contained herein, including the Prior Agreement. No rights or licenses
with respect to any intellectual property of either party are granted or deemed granted hereunder or in connection herewith, other than those rights expressly granted in this Agreement. No trade
customs, courses of dealing or courses of performance by the parties shall be relevant to modify, supplement or explain any term(s) used in this Agreement. This Agreement may not be modified or
supplemented by any purchase order, change order, acknowledgment, order acceptance, standard terms of sale, invoice or the like. This Agreement may only be modified or supplemented in a writing
expressly stated for such purpose and signed by the parties to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.4</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Relationship between the Parties.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The parties' relationship,
as established by this Agreement, is solely that of independent contractors. This Agreement does not create any partnership, joint venture or similar business relationship between the parties. Neither
party is a legal representative of the other
party, and neither party can assume or create any obligation, representation, warranty or guarantee, express or implied, on behalf of the other party for any purpose whatsoever. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.5</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Non-Waiver.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The failure of a party to insist
upon strict performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision
or right, in whole or in part, in that instance or in any other instance. Any waiver by a party of a particular provision or right shall be in writing, shall be as to a particular matter and, if
applicable, for a particular period of time and shall be signed by such party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.6</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Assignment.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly provided hereunder, neither
this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either party without the prior written consent of the other party (which consent shall not be
unreasonably withheld); </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> that either party may assign this Agreement and its rights and obligations hereunder without the other
party's consent in connection with the transfer or sale of all or substantially all of the business of such party to which this Agreement relates to a Third Party, whether by merger, sale of stock,
sale of assets or otherwise. In the event of such transaction, however, intellectual property rights of the acquiring party to such transaction (if other than one of the parties to this Agreement)
shall not be included in the technology licensed hereunder. The rights and obligations of the parties under this Agreement shall be binding upon and inure to the benefit of the successors and
permitted assigns of the parties. Any assignment not in accordance with this Agreement shall be void. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.7</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;No Third Party Beneficiaries.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is neither
expressly nor impliedly made for the benefit of any party other than those executing it. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.8</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Severability.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If, for any reason, any part of this Agreement
is adjudicated invalid, unenforceable or illegal by a court of competent jurisdiction, such adjudication shall not affect or impair, in whole or in part, the validity, enforceability or legality of
any remaining portions of this Agreement. All remaining portions shall remain in full force and effect as if the original Agreement had been executed without the invalidated, unenforceable or illegal
part. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.9</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Notices.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any notice to be given under this Agreement must be
in writing and delivered pursuant to the License Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.10</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Force Majeure.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except for the obligation to make payment
when due, each party shall be excused from liability for the failure or delay in performance of any obligation under this Agreement by reason of any event beyond such party's reasonable control
including but not limited to Acts of God, fire, flood, explosion, earthquake, or other natural forces, war, civil unrest, </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<BR>

<P><FONT SIZE=2>accident,
destruction or other casualty, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, any strike or labor disturbance, or any other event similar
to those enumerated above. Such excuse from liability shall be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the party has not
caused such event(s) to occur. Notice of a party's failure or delay in performance due to force majeure must be given to the other party within 10 calendar days after its occurrence. All delivery
dates under this Agreement that have been affected by force majeure shall be tolled for the duration of such force majeure. In no event shall any party be required to prevent or settle any labor
disturbance or dispute. Notwithstanding the foregoing, should the force majeure suffered by a party extend beyond a three month period, the other party may then terminate this Agreement by written
notice to the non-performing party, with the consequences of such termination as set forth in Sections 1.12(c), (d), (e)&nbsp;and (f). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.11</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Legal Fees.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If any party to this Agreement resorts to any
legal action, dispute resolution or arbitration in connection with this Agreement, except as provided in Section&nbsp;16.2 of the License Agreement, the prevailing party shall be entitled to recover
reasonable fees of attorneys and other professionals in addition to all court costs and arbitrator's fees which that party may incur as a result. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.12</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Interpretation.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Captions&nbsp;&amp; Headings.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The captions and headings of
clauses contained in this Agreement preceding the text of the articles, sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not
constitute any part of this Agreement, or have any effect on its interpretation or construction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Singular&nbsp;&amp; Plural.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All references in this Agreement
to the singular shall include the plural where applicable, and all references to gender shall include both genders and the neuter. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Articles, Sections&nbsp;&amp; Subsections.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise
specified, references in this Agreement to any article shall include all sections, subsections, and paragraphs in such article; references in this Agreement to any section shall include all
subsections and paragraphs in such sections; and references in this Agreement to any subsection shall include all paragraphs in such subsection. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(d)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Days.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All references to days in this Agreement shall mean
calendar days, unless otherwise specified. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(e)</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Ambiguities.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Ambiguities and uncertainties in this
Agreement, if any, shall not be interpreted against either party, irrespective of which party may be deemed to have caused the ambiguity or uncertainty to exist. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.13</B></FONT><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original document, and all of which, together with this writing, shall be deemed one instrument. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>IN WITNESS WHEREOF,</B></FONT><FONT SIZE=2> the parties hereto have duly executed this Agreement. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>PIERRE FABRE M&Eacute;DICAMENT</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><B>CYPRESS BIOSCIENCE,&nbsp;INC.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEAN PIERRE COUZINIER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JAY KRANZLER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Jean Pierre Couzinier</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Dr.&nbsp;Jay Kranzler</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><I>Chief Operating Officer</I></FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><I>Chief Executive Officer</I></FONT><HR NOSHADE></TD>
</TR>
</TABLE>
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<P><br><A NAME="04SAN1113_4">QuickLinks</A><br></P><!-- TOC_BEGIN -->
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<FONT SIZE=2><A HREF="#toc_lo1113_3">RECITALS</A></FONT><BR>
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