Exhibit 10.1


 


CERTAIN INFORMATION IDENTIFIED IN THIS DOCUMENT, MARKED BY BRACKETS
AND ASTERISKS (“[***]”),


HAS BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10) OF REGULATION
S-K UNDER THE SECURITIES ACT OF 1933,


AS AMENDED, BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY
CAUSE


COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.


 


RESEARCH FUNDING AND OPTION AGREEMENT


 


This Agreement is entered
into May 12, 2020 (the “Effective Date”), by and between The Scripps Research Institute, a California nonprofit public
benefit corporation located at 10550 North Torrey Pines Road, La Jolla, California 92037 ("TSRI"), and Xenetic Biosciences,
Inc. ("Sponsor"), a for-profit corporation located at 40 Speen Street, Suite 102, Framingham, Massachusetts 01701, with
respect to the facts set forth below.


 


RECITALS


 


A.     TSRI is engaged
in fundamental scientific biomedical and biochemical research including research relating to methods for treatment of B cell
malignancies using personalized medicine, as more particularly described herein.


 


B.     Sponsor is engaged
in research and development of personalized CAR T therapy for the treatment of hematological cancers.


 


C.     Sponsor desires
to provide certain funding as part of TSRI’s research activities described above.


 


D.     Subject to any
non-exclusive rights of the U.S. Government, TSRI is willing to grant to Sponsor an option to acquire rights and licenses to certain
intellectual property arising from the Research Program.


 


AGREEMENT


 


NOW, THEREFORE, in consideration
of the mutual covenants and conditions outlined herein, TSRI and Sponsor hereby agree as follows:


 


1.       DEFINITIONS.


 


1.1       Affiliate.
The term "Affiliate" shall mean any entity which directly or indirectly controls, or is controlled by Sponsor. The term
"control" as used herein means (a) in the case of corporate entities, direct or indirect ownership of at least fifty
percent (50%) of the stock or shares entitled to vote for the election of directors; or (b) in the case of non-corporate entities,
direct or indirect ownership of at least fifty percent (50%) of the equity interest with the power to direct the management and
policies of such non-corporate entities. Unless otherwise specified, the term Sponsor includes Affiliates.


 


1.2        Agreement
Number. This Agreement is TSRI number 2020-0140.


 


1.3       Biological
Materials. The term “Biological Materials” shall mean any Technology in the form of tangible materials together
with any progeny, mutants, or derivatives thereof developed in performance of the Research Program.


 


1.4       Calendar
Quarter. The term “Calendar Quarter” shall mean that period of three months occurring from January through March
(Quarter 1), April through June (Quarter 2), July through September (Quarter 3) and October through December (Quarter 4). For purposes
of clarity, each of Quarter 1, Quarter 2, Quarter 3 and Quarter 4 is a Calendar Quarter under this Agreement.


 


 


 






    	 	1	 



     


    

 


1.5       Confidential
Information. The term "Confidential Information" shall mean any and all proprietary information of TSRI or Sponsor,
including, trade secrets, information relating to existing or contemplated products, services, technology, designs, processes,
formulae, computer systems, computer software, research programs, algorithms and research or developments, which may be exchanged
between the parties at any time and from time to time during the term hereof. The fact that a party may have marked or identified
as confidential or proprietary any specific information shall be indicative that such party believes such information to be confidential
or proprietary, but the failure to so mark information shall not conclusively determine that such information was or was not considered
confidential information by such party. Neither Party shall modify, enhance, compile or assemble (or reverse compile or disassemble),
or reverse engineer Confidential Information of the other or anything containing or embodying such Confidential Information. Neither
Party shall use any Confidential Information of the other Party or the concepts therein for its own benefit or for the benefit
of a third party or for any purpose other than for evaluating a possible business relationship. Neither Party shall remove any
proprietary legends or notices, including copyright notices, appearing on or in the Confidential Information. Each Party shall
take appropriate action with respect to each and every person permitted access to any Confidential Information to ensure that each
person complies with the confidentiality provisions hereof. Confidential Information shall also include any information which,
given the circumstances surrounding the disclosure, would be considered confidential by the disclosing party. Information shall
not be considered confidential to the extent that it:


 


a.       Is
publicly disclosed through no fault of any party hereto, either before or after it becomes known to the receiving party; or


 


b.       Was
known to the receiving party prior to the Effective Date, which knowledge was acquired independently and not from the other party
hereto (including such party's employees); or


 


c.       Is
subsequently disclosed to the receiving party in good faith by a third party who has a right to make such disclosure; or


 


d.       Was
independently developed by or on behalf of the receiving party without use of or reference to the other party’s Confidential
Information.


 


1.6        Field.
The term "Field" shall mean treatment of a B-cell Malignancy using the Technology.


 


1.7        Joint
Technology. The term "Joint Technology" shall mean any Technology developed by individuals associated with TSRI and
Sponsor under the terms of this Agreement.


 


1.8       Patent
Rights. The term “Patent Rights” shall mean:


 


(a) U.S. patents or patent
application(s) directed to the Technology;


 


(b) Foreign counterpart
patents or patent applications claiming and entitled to the priority date of the respective patents and patent application(s) referenced
in sub-clause (a) above;


 


(c) Divisionals and continuations
of any patents or patent applications referenced in sub-clauses (a) and (b) above;


 


(d) Any claim(s) of a continuation-in-part
claiming and entitled to the priority date of the respective patents and patent application(s) referenced in sub-clause (a) above;
and


 


(e) Reissues, reexaminations,
renewals and patent term extensions of the patents referenced in sub-clauses (a) - (d) above.


 


 


 






    	 	2	 



     


    

 


1.9       Principal
Investigator. The term "Principal Investigator" shall mean Dr. Lerner, together with such replacement persons selected
in accordance with the provisions of Section 2.2 hereof.


 


1.10       Research
Program. The term "Research Program" shall mean the research program to be undertaken by TSRI under the direction
and control of the Principal Investigator as expressly set forth on Exhibit A hereto.


 


1.11       Research
Tool. The term “Research Tool” shall mean any Technology which is designed or utilized for basic research purposes
or internal drug discovery purposes and which is not utilized to produce, or incorporated into, a product.


 


1.12       Technology.
The term "Technology" shall mean any invention, discovery, know-how, Biological Material, software, information and data,
whether patentable or not, first conceived and reduced to practice during and as a result of the performance of the Research Program.


 


1.13       Technology
Rights. The term “Technology Rights” shall mean any Technology, including TSRI Technology and Joint Technology
developed pursuant to the work conducted under this Agreement.


 


1.14       TSRI
Technology. The term "TSRI Technology" shall mean any Technology developed solely by TSRI under the principles of
what constitutes an inventor under the patent laws of the United States of America.


 


2.       CONDUCT
OF RESEARCH PROGRAM.


 


2.1       Conduct
of Research Program. TSRI hereby agrees to use diligent and reasonable efforts to perform the Research Program subject to the
provisions of this Agreement. Notwithstanding the foregoing, TSRI makes no warranties or representations regarding its ability
to achieve, nor shall it be bound to accomplish, any particular research objective or results.


 


2.2       Supervision
of Research Program. TSRI agrees that the Research Program at TSRI shall be conducted by or under the direct supervision of
the Principal Investigator. In the event that the Principal Investigator leaves TSRI, or terminates his/her involvement in the
Research Program, TSRI shall use its best efforts to find a replacement Principal Investigator for whom Sponsor provides its written
acceptance, which written acceptance shall not be unreasonably withheld. In the event that TSRI shall fail to appoint a replacement
Principal Investigator reasonably acceptable to Sponsor, Sponsor shall have a right to terminate this Agreement upon delivery to
TSRI of written notice of intent to terminate pursuant to this Section 2.2, which notice must be delivered to TSRI not less
than thirty (30) days nor more than ninety (90) days after delivery by TSRI to Sponsor of the name of the replacement Principal
Investigator.


 


2.3       Reports.
TSRI agrees that within forty-five (45) days following the last day of each Calendar Quarter during the term of this Agreement,
TSRI shall furnish Sponsor with a written report summarizing the results of the research included within the scope of the Research
Program conducted by TSRI, during the immediately preceding Calendar Quarter, including but not limited to all data, conclusions,
results, analysis, observations and a detailed description of all procedures, including all materials used for each procedure.
All such reports shall be treated as Confidential Information by Sponsor


 


2.4       Financial
and Staffing Obligations


 


(a) Contributions of Parties
to Research Program. Contributions in the form of financial support, equipment, personnel, technology and other necessary components
for the conduct of the Research Program shall be made by the parties in accordance with the terms set forth on Exhibit B.
All payments due to TSRI by Sponsor shall be payable in U.S. Dollars in quarterly installments in advance, within thirty (30) days
of the dates set forth in the following payment schedule:


 


 


 






    	 	3	 



     


    

 


	 	1st
invoice: $300,013.50 (USD)	To be submitted: Effective Date
	 	 	 
	 	2nd
invoice: $300,013.50 (USD)	To be submitted: 90 days after Effective Date
	 	 	 
	 	3rd
invoice: $300,013.50 (USD)	To be submitted: 180 days after Effective Date
	 	 	 
	 	4th
invoice: $300,013.50 (USD)	To be submitted: 270 days after Effective Date
	 	 	 
	 	5th
invoice: $300,013.50 (USD)	To be submitted: 1 year anniversary of Effective Date
	 	 	 
	 	6th
invoice: $300,013.50 (USD)	To be submitted: 450 days after Effective Date
	 	 	 
	 	7th
invoice: $300,013.50 (USD)	To be submitted: 540 days after Effective Date
	 	 	 
	 	8th
invoice: $300,013.50 (USD)	To be submitted: 630 days after Effective Date
	 	 	 
	 	9th
invoice: $299,820.50 (USD)	To be submitted: 2 year anniversary of Effective Date
	 	 	 
	 	10th
invoice: $299,820.50 (USD)	To be submitted: 810 days after Effective Date



 


All invoices shall be sent to Sponsor via e-mail
at AP@xeneticbio.com. Each invoice and payment must reference the Research Project title, Agreement Number and Principal Investigator
for purposes of identification. Payments under this Section 2.4(a) shall be sent to:


 


The Scripps Research Institute


10550 North Torrey Pines
Road, TPC-7


La Jolla, California 92037


Attn: Senior Director,
Sponsored Programs


 


TSRI shall not be obligated to perform any
of the research specified herein or to take any other action required under this Agreement if the funding is not provided as set
forth in Exhibit B and in accordance with the payment schedule as set forth in this Section 2.4(a). Furthermore, should Sponsor
fail to make the first payment to TSRI in accordance with this Section 2.4(a), TSRI shall have the right to immediately terminate
this Agreement and this Agreement shall be null and void ab initio.


 


(c) Indirect Cost Adjustment.
TSRI shall have the right to adjust the payments payable under Section 2.4(a) above to reflect changes in the indirect cost rate
negotiated between TSRI and the U.S. Government that is in effect during the quarter that the work is performed. TSRI will notify
Sponsor in writing of any change in the indirect cost rate before the effective date of such change. The corresponding direct costs
will remain fixed as specified in Exhibit B.


 


 


 






    	 	4	 



     


    

 


3.       OPTION,
LICENSE AND PROSECUTION.


 


3.1       Grant
of License . Patent Rights and Technology Rights. TSRI hereby grants to Sponsor the following:


 


(a) A license within the
Field to any Patent Rights or Technology under the terms of the License Agreement Between Opko Pharmaceuticals, LLC and TSRI with
an Effective Date of February 25, 2019 (the “License Agreement”), which was later assigned to Sponsor by Opko Pharmaceuticals,
LLC on March 1, 2019. The Patent Rights or Technology Rights licensed under this section 3.1(a) will be added to Exhibit A of the
License Agreement with a notation that the scope of the license is limited to the Field.


 


(b) an exclusive option
(the “Option”) to acquire an exclusive, worldwide license, including the right to sublicense, under TSRI’s rights
in the Technology or Patent Rights not already licensed under 3.1(a). In the event that a product, process or Biological Material
utilizes a Research Tool, such Research Tool shall be made available for Sponsor’s sole use on a non-exclusive, royalty-free,
non-transferable basis solely in connection with Sponsor’s exercise of its license rights to the Patent Rights granted hereunder.


 


(c) a non-exclusive, royalty-free,
non-transferable license, without the right to grant sublicenses, to make and use TSRI Technology solely for Sponsor’s internal
research purposes during the performance of the Research Program. Any transfer of materials to Sponsor under this Section 3.1(c)
shall require the execution of a Material Transfer Agreement.


 


3.2       Disclosure
of Technology Subject to Option. After the Principal Investigator submits an invention disclosure covering any Technology to
TSRI’s Office of Technology Development, TSRI shall disclose such Technology in writing to Sponsor (the “Technology
Disclosure”). TSRI shall use reasonable efforts to provide a Technology Disclosure that contains sufficient detail to (i) enable
both parties to determine whether or not the particular Technology is TSRI Technology or Joint Technology; and (ii) enable Sponsor
to evaluate the advisability of exercising the Option granted hereunder with respect to such Technology. All such Technology Disclosures
shall be maintained in confidence by Sponsor as Confidential Information of TSRI.


 


3.3       Option
Period. Sponsor shall have a period of ninety (90) days from receipt of the Technology Disclosure from TSRI (the “Option
Period”) within which to exercise its Option with respect to the particular Technology disclosed therein. Upon delivery of
written notice that Sponsor waives its Option, or upon the failure of Sponsor to exercise its Option in writing during the Option
Period, Sponsor shall have no further rights to the particular TSRI Technology, and TSRI may license the TSRI Technology to third
parties as it sees fit.


 


3.4       Exercise
of Option. Sponsor shall exercise its Option by delivering to TSRI a written notice within the Option Period which specifies
the particular Technology for which the Option is being exercised. Upon such notification, Sponsor and TSRI shall have a period
of one-hundred and eighty (180) days within which to negotiate a definitive license agreement. Additionally, in the event
that the Parties require additional time to negotiate the definitive agreement, the Parties shall have the option to extend the
period for negotiation on a month by month basis, with the understanding that such extension requires the mutual written consent
of both Parties, which consent shall not to be unreasonably withheld or delayed.


 


3.5       Prosecution
of Patent Rights. TSRI shall direct and control the preparation, filing and prosecution of patent applications and patents
within the Patent Rights. TSRI will provide to Sponsor a copy of any communication to be filed with a patent office anywhere in
the world and TSRI shall reasonably consider any comments provided by Sponsor related to the content of the communication. As consideration
for the Option, Sponsor shall pay all reasonable fees and costs, and any and all reasonable future fees and costs associated with
work performed by TSRI’s Office of Patent Counsel and any independent counsel engaged by TSRI related to the preparation,
filing, prosecution and maintenance of the Patent Rights. Payment shall be made within thirty (30) days after Sponsor receives
an invoice therefor. Failure of Sponsor to pay patent fees and expenses as set forth above shall immediately relieve TSRI from
its obligation to incur any further patent fees and expenses with regard to the Technology that is the subject matter of the patents
for which such fees and expenses are payable. Sponsor’s obligation to pay all patent fees and costs incurred pursuant to
this Agreement shall survive the termination or expiration of this Agreement. Both parties hereto agree that TSRI may, at its sole
discretion, utilize TSRI’s Office of Patent Counsel in lieu of or in addition to independent counsel for patent prosecution
and maintenance of patent application(s). Sponsor shall have full rights of consultation with the patent attorneys so selected
on all matters relating to patent application(s), provided that TSRI shall have the final determination in all such matters.


 


 


 






    	 	5	 



     


    

 


3.6       Joint
Technology. The parties hereby agree that in the event that the disclosed Technology is Joint Technology not in the Field and
that Sponsor either does not exercise its Option or does not sign a license agreement with TSRI, both parties shall (i) have no
further obligations to each other with respect to such Joint Technology and any Patent Rights that relate thereto; and (ii) be
free to independently license or otherwise dispose of their rights to such Joint Technology and any Patent Rights that relate thereto
on a worldwide basis without accounting to the other party.


 


4.       INTERESTS
AND RIGHTS IN INTELLECTUAL PROPERTY.


 


4.1       Title.
TSRI shall retain sole ownership and title to TSRI Technology and to all intellectual property rights related thereto. TSRI shall,
in the good faith exercise of its discretion, undertake reasonable efforts to preserve and maintain its ownership and title in
and to the TSRI Technology as TSRI deems appropriate. Ownership of and title to Joint Technology shall be vested jointly in TSRI
and Sponsor, with each owning an undivided interest therein. Ownership of Patent Rights shall follow inventorship under principles
arising under U.S. patent law.


 


4.2       Governmental
Interest. TSRI and Sponsor acknowledge that TSRI has received, and expects to continue to receive, funding from the United
States Government in support of TSRI's research activities. TSRI and Sponsor acknowledge and agree that their respective rights
and obligations pursuant to this Agreement shall be subject to the rights of the United States Government, existing and as amended,
which may arise or result from TSRI’s receipt of research support from the United States Government, including but not limited
to, 37 CFR 401, the NIH Grants Policy Statement and the NIH Guidelines for Obtaining and Disseminating Biomedical Research
Resources.


 


4.3       Reservation
of Rights. All rights that are not expressly granted under this Agreement are hereby reserved. Without limiting the foregoing,
TSRI reserves the right to use for any research or educational purposes any Patent Rights, Biological Materials, or Research Tools,
without TSRI being obligated to pay Sponsor any royalties or other compensation. In addition, TSRI reserves the right to grant
non-exclusive research and educational use licenses to other nonprofit or academic institutions to Patent Rights, Biological Materials,
or Research Tools, without the other non-profit entity being obligated to pay Sponsor any royalties or other compensation.


 


5.       CONFIDENTIALITY
AND PUBLICATION.


 


5.1 Treatment of Confidential
Information. The parties agree that during the term of this Agreement, and for a period of five (5) years after this Agreement
terminates, a party receiving Confidential Information of the other party will (a) maintain in confidence such Confidential
Information to the same extent such party maintains its own proprietary information; (b) not disclose such Confidential Information
to any third party without the prior written consent of the other party; and (c) not use such Confidential Information for
any purpose except those permitted by this Agreement.


 


If Confidential Information
is required to be disclosed by law or court order, the Party required to make such disclosure shall limit the same to the minimum
required to comply with the law or court order, and shall use reasonable efforts to attempt to seek confidential treatment for
that disclosure, and prior to making such disclosure that Party shall notify the other party, not later than ten (10) days (or
such shorter period of time as may be reasonably practicable under the circumstances) before the disclosure in order to allow that
other Party to comment and/or to obtain a protective or other order, including extensions of time and the like, with respect to
such disclosure.


 


5.2 Publications.
Sponsor acknowledges that it is the general policy of TSRI to encourage publication of research results in technical or scientific
journals; and Sponsor agrees that TSRI shall have a right to publish in accordance with its general policy. TSRI shall submit to
Sponsor copies of proposed publications which describe Technology and afford Sponsor a period of thirty (30) days to review the
publication to ascertain whether Sponsor’s Confidential Information would be disclosed by the publication. If such proposed
publication would disclose Sponsor’s Confidential Information, then upon Sponsor’s written request TSRI shall remove
such Confidential Information of Sponsor or delay publication for up to an additional thirty (30) days to allow Sponsor to protect
its Confidential Information by filing a patent application(s). Absent receipt by TSRI of any written instruction by Sponsor within
the thirty (30) day period, TSRI shall be free to publish the proposed publication.


 


 


 






    	 	6	 



     


    

 


5.3 Publicity. Except
as otherwise provided herein or required by law, no party shall originate any publication, news release or other public announcement,
written or oral, whether in the public press, stockholders' reports, or otherwise, relating to this Agreement or to the performance
hereunder without the prior written approval of the other party, which approval shall not be unreasonably withheld or delayed.
TSRI agrees that Sponsor shall have the right to make those disclosures that are legally required under the laws of the United
States of America, the State of Nevada or the State of Massachusetts for a publicly traded company on a recognized stock exchange.
Scientific publications published in accordance with Section 5.2 of this Agreement shall not be construed as publicity governed
by this Section 5.3.


 


6.       WARRANTY
AND DISCLAIMER.


 


TSRI hereby represents
and warrants that it has full right and power to enter into this Agreement. TSRI MAKES NO OTHER WARRANTIES CONCERNING THE CONDUCT
OR RESULTS OF THE RESEARCH PROGRAM, PATENT RIGHTS, TECHNOLOGY, RESEARCH TOOLS, BIOLOGICAL MATERIALS OR ANY OTHER MATTER WHATSOEVER,
INCLUDING WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS, OR ARISING OUT OF COURSE OF CONDUCT OR TRADE CUSTOM OR USAGE, AND TSRI DISCLAIMS ALL SUCH EXPRESS OR IMPLIED
WARRANTIES. TSRI MAKES NO WARRANTY OR REPRESENTATION AS TO THE VALIDITY OR SCOPE OF PATENT RIGHTS, OR THAT ANY PRODUCT, PROCESS,
SERVICE, BIOLOGICAL MATERIAL, OR RESEARCH TOOL WILL BE FREE FROM AN INFRINGEMENT ON PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS
OF THIRD PARTIES, OR THAT NO THIRD PARTIES ARE IN ANY WAY INFRINGING UPON ANY PATENT RIGHTS, TECHNOLOGY, RESEARCH TOOLS
OR BIOLOGICAL MATERIALS COVERED BY THIS AGREEMENT. FURTHER, TSRI HAS MADE NO INVESTIGATION AND MAKES NO REPRESENTATION THAT THE
PATENT RIGHTS, RESEARCH TOOLS OR BIOLOGICAL MATERIALS ARE SUITABLE FOR SPONSOR’S PURPOSES.


 


IN NO EVENT SHALL TSRI
BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR
LOSS OF PROFITS OR EXPECTED SAVINGS OR OTHER ECONOMIC LOSSES, OR FOR INJURY TO PERSONS OR PROPERTY) ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR ITS SUBJECT MATTER. TSRI’S AGGREGATE LIABILITY, IF ANY, FOR ALL DAMAGES OF ANY KIND RELATING TO THIS
AGREEMENT OR ITS SUBJECT MATTER SHALL NOT EXCEED THE AMOUNT PAID BY SPONSOR TO TSRI UNDER THIS AGREEMENT. THE FOREGOING EXCLUSIONS
AND LIMITATIONS SHALL APPLY TO ALL CLAIMS AND ACTIONS OF ANY KIND AND ON ANY THEORY OF LIABILITY, WHETHER BASED ON CONTRACT, TORT
(INCLUDING, BUT NOT LIMITED TO NEGLIGENCE OR STRICT LIABILITY), OR ANY OTHER GROUNDS, AND REGARDLESS OF WHETHER TSRI HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. THE PARTIES FURTHER
AGREE THAT EACH WARRANTY DISCLAIMER, EXCLUSION OF DAMAGES OR OTHER LIMITATION OF LIABILITY HEREIN IS INTENDED TO BE SEVERABLE AND
INDEPENDENT OF THE OTHER PROVISIONS SINCE THEY EACH REPRESENT SEPARATE ELEMENTS OF RISK ALLOCATION BETWEEN THE PARTIES.


 


7.       TERM
AND TERMINATION.


 


7.1       Term.
Unless terminated sooner, the initial term of this Agreement shall commence on the Effective Date and shall continue for three
(3) years.


 


7.2       Termination
by Sponsor. Sponsor may terminate this Agreement by giving thirty (30) days advance written notice of termination to TSRI.


 


7.3       Termination
Upon Non-Payment. In the event that Sponsor fails to pay to TSRI any payment within the time frame set forth in Section 2.4(a),
TSRI shall not be obligated to perform any of the research specified herein or to take any other action required under this Agreement.
Sponsor shall be provided thirty (30) days to make the payment owed after receiving written notification from TSRI of failure to
make a required payment within the time frame set forth in Section 2.4(a). If Sponsor fails to make the required payment within
the thirty (30) days following receipt of written notification from TSRI, TSRI may terminate this Agreement immediately upon such
non-payment. Termination pursuant to this Section 7.3 shall not relieve Sponsor of any liability under this Agreement.


 


 


 






    	 	7	 



     


    

 


7.4       Termination
Upon Default. Except as specified in Sections 7.3 and 7.5, the failure of a party to perform any obligation required of it
to be performed hereunder and the failure to cure within sixty (60) days after receipt of notice from the other party specifying
in reasonable detail the nature of such default, shall constitute an event of default hereunder. Upon the occurrence of an event
of default, the non-defaulting party may deliver to the defaulting party written notice of intent to terminate, such termination
to be effective upon the date set forth in such notice. Such termination rights shall be in addition to and not in substitution
for any other remedies that may be available to the non-defaulting party serving such notice against the defaulting party. Termination
pursuant to this Section 7.4 shall not relieve the defaulting party of liability and damages to the non-defaulting party for
breach of this Agreement. Waiver by any party of a single default or a succession of defaults shall not deprive such party of any
right to terminate this Agreement arising by reason of any subsequent default.


 


7.5       Termination
Upon Insolvency. This Agreement may be terminated as to any party ("Insolvent Party") by another party giving written
notice of termination to the Insolvent Party upon the filing of bankruptcy or bankruptcy of the Insolvent Party or the appointment
of a receiver of any of the Insolvent Party's assets, or the making by the Insolvent Party of any assignment for the benefit of
creditors, or the institution of any proceedings against the Insolvent Party under any bankruptcy law. Termination shall be effective
upon the date specified in this notice.


 


7.6       Effect
of Expiration or Termination


 


a. Termination Upon Default
of Sponsor. Upon the termination of this Agreement by reason of a default by Sponsor, neither party shall have any further
rights or obligations with respect to this Agreement, other than the obligation of Sponsor to make any and all final payments accrued
prior to the date of termination, the obligation of the parties to make all reports required hereunder, and except as provided
below. Upon such termination of this Agreement, the parties shall continue to abide by their non-disclosure obligations as described
in Section 5.1 and each party hereto shall fulfill any other obligations incurred prior to such termination. Any such termination
of this Agreement shall not constitute the termination of any license or any other agreements between the parties which are then
in effect except as expressly provided therein. In addition, upon such termination, Sponsor’s Option under Section 3.1 shall
be deemed automatically cancelled, and Sections 4, 6, 7 and 9 shall survive any such termination.


 


b. Expiration or Termination
upon Default of TSRI. Upon the expiration of this Agreement at its regularly scheduled expiration date, or upon a termination
of this Agreement on account of a default by TSRI, then TSRI shall make the disclosures required by Section 3.2 for TSRI Technology
conceived or reduced to practice up to the date of said expiration or termination; and Sponsor shall have the right to exercise
its Option with respect to said TSRI Technology in accordance with the schedule and procedures specified in Sections 3.3
and 3.4 above; and any non-exclusive licenses that have been granted under Section 3.1 shall survive. Additionally, each party
shall perform all other obligations up to the date of said expiration or termination; and the parties shall continue to abide by
their non-disclosure obligations described in Section 5.1; and any previously existing license agreements or other agreements
between the parties shall continue in effect. In addition, upon such expiration or termination, Sections 4, 6, 7 and 9 shall survive.


 


8.       ASSIGNMENT;
SUCCESSORS.


 


8.1       Assignment.
Any and all assignments by Sponsor of this Agreement or any rights granted hereunder without the prior written consent of TSRI
are void except for assignments to an Affiliate of Sponsor.


 


8.2       Binding
Upon Successors and Assigns. Subject to the limitations on assignment set forth herein, this Agreement shall be binding upon
and inure to the benefit of any successors in interest and assigns of TSRI and Sponsor. Any such successor to or assignee of a
party's interest shall expressly assume in writing the performance of all the terms and conditions of this Agreement to be performed
by such party and such written assumption shall be delivered to the other Party.


 


 


 






    	 	8	 



     


    

 


9.       GENERAL
PROVISIONS.


 


9.1       Independent
Contractors. The relationship between TSRI and Sponsor is that of independent contractors. TSRI and Sponsor are not joint venturers,
partners, principal and agent, master and servant, employer or employee, and have no other relationship other than independent
contracting parties. TSRI and Sponsor shall have no power to bind or obligate each other in any manner, other than as is expressly
set forth in this Agreement.


 


9.2       Dispute
Resolution. Any dispute or claim between the parties arising out of or relating to this Agreement, including without limitation
the breach thereof, shall be resolved according to the following dispute resolution procedures:


 


(a)
Such dispute shall be first addressed by the representatives of TSRI and Sponsor who have primary responsibility for managing
this Agreement.


 


(b) If
the dispute is not resolved by such representatives within fifteen (15) days after the date either party gives written notice
that such dispute exists, then the dispute shall be referred to and addressed by the senior management of each
party.


 


(c) If
such dispute is not resolved by the parties’ senior management within thirty (30) days after the date the dispute is
referred to them, then the dispute shall be submitted to mediation. The mediator shall be a retired judge or other neutral
third party mutually selected by TSRI and Sponsor who has at least ten (10) years experience in mediating or arbitrating
cases in the bio-pharmaceutical industry and regarding the same or substantially similar legal and subject matter as the
dispute between Sponsor and TSRI. If the parties are unable to agree on such mediator within twenty (20) days after they
exchange initial lists of potential mediators, a mediator with the same qualifications will be selected by the JAMS office in
State of New York, New York City (after consultation with the parties). 


 


(d) The
location of the mediation shall be in the State of New York, New York City. TSRI and Sponsor hereby irrevocably submit to the
exclusive jurisdiction and venue of the mediator mutually selected by the parties for purposes of the mediation, and to the
exclusive jurisdiction and venue of the federal and state courts located in the State of New York, New York City for any
action or proceeding regarding this Agreement in the event mediation is unsuccessful as provided in sub-clause (e) below, or
as provided in sub-clause (f) below, and waive any right to contest or otherwise object to such exclusive jurisdiction or
venue, including without limitation any claim that such exclusive venue is not a convenient forum.


 


(e) If
the dispute is not resolved through mediation, either party may refer the dispute to a court of competent jurisdiction in
State of New York, New York City.


 


(f) Notwithstanding
anything to the contrary in this Agreement, prior to or while a mediation proceeding is pending, either party has the right
to seek and obtain injunctive and other equitable relief from a court of competent jurisdiction to enforce that party’s
rights hereunder.


 


9.3       Entire
Agreement; Modification. This Agreement and all of the attached Exhibits set forth the entire agreement and understanding between
the parties as to the subject matter hereof, and supersede all prior or contemporaneous written or oral agreements. There shall
be no amendments or modifications to this Agreement, except by a written document which is signed by both parties.


 


 


 






    	 	9	 



     


    

 


9.4       New
York Law. This Agreement shall be construed and enforced in accordance with the laws of the State of New York notwithstanding
any conflicts or choice of laws provisions.


 


9.5        No
Use of Name. The use of the name "The Scripps Research Institute", "Scripps", “TSRI” or any
variation thereof in connection with the advertising, sale or performance of Products, Processes, Services, Biological Materials
or Research Tools is prohibited, unless Sponsor is provided written agreement for the use of the name.


 


9.6       Headings.
The headings for each article and section in this Agreement have been inserted for the convenience of reference only and are not
intended to limit or expand on the meaning of the language contained in the particular article or section.


 


9.7       Severability.
Should any one or more of the provisions of this Agreement be held invalid or unenforceable by a court of competent jurisdiction,
it shall be considered severed from this Agreement and shall not serve to invalidate the remaining provisions thereof. The parties
shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the
objectives contemplated by them when entering this Agreement may be realized.


 


9.8       No
Waiver. Any delay in enforcing a party's rights under this Agreement or any waiver as to a particular default or other matter
shall not constitute a waiver of such party's rights to the future enforcement of its rights under this Agreement, excepting only
as to an express written and signed waiver as to a particular matter for a particular period of time.


 


9.9       Notices.
Any notices required by this Agreement shall be in writing, shall specifically refer to this Agreement and shall be sent by registered
or certified airmail, postage prepaid, or by telefax, telex or cable, charges prepaid, or by overnight courier, postage prepaid,
and shall be forwarded to the respective addresses set forth below unless subsequently changed by written notice to the other party:


 


	 	FOR
TSRI:	The
Scripps Research Institute


10550 North Torrey Pines
Road, TPC-9


La Jolla, California 92037


ATTN: Alliances



	 	 	 
	 	       With a copy to:	otd@scripps.edu
	 	 	 
	 	FOR SPONSOR:	Xenetic Biosciences, Inc.


40 Speen Street, Suite 102


Framingham, Massachusetts 01701


Attn: Chief Executive Officer



	 	 	 
	 	       With a copy to:	info@xeneticbio.com



 


Notices shall be deemed delivered upon the
earlier of (i) when received; (ii) three (3) days after deposit into the U.S. mail; (iii) the date notice is sent
via telefax, telex or cable; or (iv) the day immediately following delivery to an overnight courier guaranteeing next-day
delivery (except Sunday and holidays).


 


 


 






    	 	10	 



     


    

 


9.10       Compliance
with U.S. Laws. Nothing contained in this Agreement shall require or permit TSRI or Sponsor to do any act inconsistent with
the requirements of any United States law, regulation or executive order as the same may be in effect from time to time.


 


9.11       Export
Controls. It is TSRI’s policy to remain fully in compliance at all times with all U.S. export control regulations, including
but not limited to the Export Administration Regulations; International Traffic in Arms Regulations; and embargo sanctions under
the Office of Foreign Assets Control (OFAC). All activities and/or transactions contemplated or hereby agreed to within this
Agreement shall be strictly predicated on full compliance with all U.S. and international export control regulations including
but not limited to restricted party prohibitions; export license requirements. In the event that Sponsor will be providing
export-controlled material to TSRI, Sponsor must first notify TSRI of its intention to provide this material in advance of shipment.
Further, diversion of any kind of any item provided to Sponsor contrary to U.S. laws is strictly prohibited. In the event that
such diversion occurs, TSRI shall not be held liable for any consequential liability, penalties, or enforcement actions undertaken
by a U.S. Government agency or any other party in relation to such action.


 


9.12       Indemnity.
Sponsor shall indemnify, defend (by counsel reasonably acceptable to TSRI) and hold harmless TSRI and any parent, subsidiary or
other affiliated entity of TSRI and their trustees, directors, officers, employees, scientists, agents, successors, assigns and
other representatives (collectively, the “Indemnitees”) from and against all claims, suits, actions, damages, liabilities,
losses and other expenses, including without limitation reasonable attorney’s fees, expert witness fees and costs incurred
by or asserted against the Indemnitees, whether or not a lawsuit or other proceeding is filed (collectively “Claim”),
that arise out of or relate to any allegations regarding Sponsor’s use of Technology. Sponsor shall not enter into any settlement
of such Claims that imposes any obligation on TSRI, that does not unconditionally release TSRI from all liability or that would
have an adverse effect on TSRI’s reputation or business without TSRI’s prior written consent. Notwithstanding the above,
Indemnitees, at their expense, shall have the right to retain separate independent counsel to assist in defending any such Claims.
In the event Sponsor fails to promptly indemnify and defend such Claims and/or pay Indemnitees’ expenses as provided above,
Indemnitees shall have the right to defend themselves, and in that case, Sponsor shall reimburse Indemnitees for all of their reasonable
attorney’s fees, costs and damages incurred in settling or defending such Claims within thirty (30) days of each of the Indemnitees’
written requests. This indemnity shall be a direct payment obligation and not merely a reimbursement obligation of Sponsor to Indemnitees.


 


 


 


[SIGNATURES ON FOLLOWING PAGE]


 


 


 


 


 


 


 


 


 








    	 	11	 



     


    

 


IN WITNESS WHEREOF, the parties have executed
this Agreement by their duly authorized representatives as of the date set forth above.


 


	TSRI:	SPONSOR:
	 	 
	THE SCRIPPS RESEARCH INSTITUTE	XENETIC BIOSCIENCES, INC.
	
         

        By:/s/ Nikki Alvarez

        Name: Nikki Alvarez

        Title: Director, Alliances
	
         

        By: /s/ Jeffrey F. Eisenberg

        Name: Jeffrey F. Eisenberg

        Title: Chief Executive Officer



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	12	 



     


    

 


EXHIBIT A: RESEARCH PROGRAM


 


Overall Period of Performance: 5/1/2020
– 10/31/2022


[***]


 


Study Introduction


 


Xenetic Biosciences is developing a CAR T platform
(termed ‘XCART’) for the treatment of certain non-Hodgkin Lymphoma (NHL) subtypes, by targeting a patient- and tumor-
specific lymphoma neoantigen, namely the unique B-cell receptor (BCR) displayed by a given malignant B-cell clone.


 


XCART will utilize a universal ‘CAR cassette’,
into which neoantigen-specific, antigen-binding domains (ABDs) can be inserted to create a patient-specific CAR. The resulting
CAR construct can then be engineered into an autologous CAR T product for treatment of the patient’s lymphoma.


 


[***]


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



    	 	13	 



     


    

 


EXHIBIT B: BUDGET


 


	Xenetic Biosciences, Inc. 
	Principal Investigator/Program Director (Last, First, Middle):	[***]
	 
	
        BUDGET

        May 1, 2020 – Oct, 31, 2022

	PERSONNEL (Applicant organization only)	%	YEAR 1	YEAR 2	YEAR 3
	Personnel	[***]	[***]	[***]
	 	 	 	 
	SUPPLIES  (Itemize by category)	[***]	[***]	[***]
	[***]
	TRAVEL	[***]	[***]	[***]
	[***]
	OTHER EXPENSES  (Itemize by category)	[***]	[***]	[***]
	[***]
	DIRECT COSTS	 	[***]	 	[***]	 	[***]
	INDIRECT COSTS @ [***]	 	[***]	 	[***]	 	[***]
	TOTAL COSTS	 	[***]	 	[***]	 	[***]
	GRAND TOTAL	 	[***]
	 
	 	 	 	 	 	 	 	 	 


 


 


 



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