Exhibit 10.2


 


AMENDED AND RESTATED FOUNDERS AGREEMENT


 


THIS
AMENDED AND RESTATED FOUNDERS AGREEMENT (this “Agreement”) is made as of September 13, 2016 (the
“Effective Date”) by and between Fortress Biotech, Inc., a Delaware corporation (the “Founder”),
and Avenue Therapeutics, Inc., a Delaware corporation (the “Company”).


 


WHEREAS, Founder formed
Company on February 9, 2015, for the purpose of acquiring, licensing, developing and commercializing specialty pharmaceutical products
(the “Business”) and Founder and the Company previously entered into a Founders Agreement effective as
of February 17, 2015 (the “Existing Founders Agreement”); and


 


WHEREAS, Founder has
identified or has acquired certain assets (the “Assets”) that will allow Company to carry out the Business
and Founder is willing to assign and contribute its interest in the Assets to Company under the terms and conditions of this Agreement;


 


NOW, THEREFORE, in
consideration of the mutual representations, warranties, covenants and agreements contained in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:


 


		1.	Assignment of
Assets and Payment.



 


		1.1	Assignment of Founders Rights in Assets. Founder
negotiated the right to acquire or license the Assets and agreed to assign all of its right, title and interest in the Assets,
including without limitation, the Founder contributing, assigning, transferring and delivering to Company on February 17, 2015
the Assets set forth on Schedule A, free and clear of all liens.



 


		1.2	In exchange for the consideration contained in Section
1.1:



 


		(a)	Founder shall receive 250,000 shares of Class A Preferred
Stock of the Company and 8,471,250 shares of Common Stock of the Company;



 


		(b)	Company shall assume in the future all of Founder’s
liabilities, obligations, rights, title and interest in that certain indebtedness described on Schedule A (the “Indebtedness”);



 


		(c)	[Reserved].



 


		(d)	Founder shall receive
an equity fee payable in shares of Common Stock equal to two and one-half percent (2.5%) of the gross amount of any equity or
debt financing, payable within five (5) business days of the closing of any equity or debt financing for the Company or any of
its respective subsidiaries that occurs after the date hereof and ending on the date when Founder no longer has majority voting
control in Company’s voting equity. In calculating the number of shares payable hereunder, in the case of an equity financing,
the number of shares issuable will be based on the share price of the equity in such round; and (ii) in the case of a debt
financing, the number of shares issuable will be based on the closing price of the common shares of the company on the day prior
to the closing of the debt financing or if not publicly-traded, the price of the common shares in the last equity financing.



 




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		(e)	In the event of a Change in Control, Founder shall receive
a one-time change in control fee equal to five times the product of (i) Net Sales (defined below) for the twelve (12) months immediately
preceding the Change in Control and (ii) 4.5%.



 


For purposes of this Agreement,
“Change of Control” shall mean the occurrence of any of the following events:


 


		(i)	during any consecutive
12-month period, individuals who, at the beginning of such period, constitute the board of directors of the Company (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming
a director after the beginning of such 12-month period and whose election or nomination for election was approved by a vote of
at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that
no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest
with respect to the election or removal of directors (“Election Contest”) or other actual or threatened
solicitation of proxies or consents by or on behalf of any “person” (as such term is defined in Section 3(a)(9) of
the Securities Exchange Act of 1934 (the “1934 Act”) and as used in Section 13(d)(3) and 14(d)(2) of
the 1934 Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended
to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director;



 


		(ii)	any person becomes
a “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of either (A) 35% or more
of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities
of the Company representing 35% or more of the combined voting power of the Company’s then-outstanding securities eligible
to vote for the election of directors (the “Company Voting Securities”); provided, however,
that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities
shall not constitute a Change of Control: (i) an acquisition directly from the Company, (ii) an acquisition by the Company or
any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or
voting power is beneficially owned directly or indirectly by the Company (a “Subsidiary”), (iii) an
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (iv)
an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below);



 




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		(iii)	the consummation
of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company
or a subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of
the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or
other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition:
(A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding
Company Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially
own, directly or indirectly, more than 35% of, respectively, the then outstanding shares of common stock and the combined voting
power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of
the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result
of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through
one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership,
immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company
Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any Subsidiary, (y) the Surviving Entity
or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing)
is the beneficial owner, directly or indirectly, of 35% or more of the total common stock or 35% or more of the total voting power
of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members
of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution
of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which
satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”);
or



 


		(iv)	approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.



 


		(f)	Founder shall receive a cash fee equal to four percent
(4.5%) of annual Net Sales, payable on an annual basis, within 90 days of the end of each calendar year. For purposes of this
Agreement, “Net Sales” shall mean the gross amount invoiced or otherwise charged by Company, its Affiliates
and Licensees (“Selling Party”) to third parties in arm’s length transactions for sales of any
Product during a calendar year, less:



 




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		(i)	Normal and customary trade, quantity, cash and discounts and credits allowed and taken;



 


		(ii)	Discounts, refunds, rebates, chargebacks, retroactive price
adjustments, and any other allowances given and taken which effectively reduce the net selling price (other than such which have
already diminished the gross amount invoiced such as those outlined in Section 1.2(f)(i) above), including, without limitation,
Medicaid rebates, institutional rebates or volume discounts;



 


		(iii)	Product returns and allowances granted to such third party;





 


		(iv)	Administrative fees paid to group purchasing organizations
(e.g., Medicare) and government-mandated rebates;



 


		(v)	Shipping, handling, freight, postage, insurance and transportation
charges, but all only to the extent included as a separate line item in the gross amount invoiced;



 


		(vi)	Any tax, tariff or
duties imposed on the production, sale, delivery or use of the Product, including, without limitation, sales, use, excise or value
added taxes and customs and duties, but all only to the extent included as a separate line item (e.g., “taxes”) in
the gross amount invoiced; and



 


		(vii)	Bad debt actually written off during the accounting period,
as reported by the Selling Party in accordance with GAAP, applied on a consistent basis (provided, that any bad debt write-off
so taken which is later reversed shall be added back to Net Sales in the accounting period in which the reversal occurs.)



 


Products
are considered “sold” when billed out or invoiced or, in the event such Products are not billed out or invoiced, when
the consideration for sale of the Products is received. If a sale, transfer or other disposition with respect to Products involves
consideration other than cash or is not at arm’s length, then the Net Sales from such sale, transfer or other disposition
shall be calculated from the average selling price for such Product during the calendar quarter in the country where such sale,
transfer or disposition took place. Notwithstanding the foregoing, Net Sales shall not include, and shall be deemed zero with respect
to, (i) Products used by Company, its Affiliates, or Licensees for their internal use, (ii) the distribution of promotional samples
of Products provided free of charge, (iii) Products provided for clinical trials or research, development, or evaluation purposes,
or (iv) sales of Products among Company and its Licensees and their respective Affiliates for resale.


 


“Product” means any product, (i) owned
by Company or (ii) exclusively licensed to Company.


 


“License” means
granting a third party or Affiliate a right to make, have made, use, offer for sale, sell or import a Product.


 


“Licensee” means a person or entity
granted a License.


 




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		1.3	Reports; Audits.



 


		(a)	Within ninety (90)
days following the last day of each calendar year, Company shall provide to Founder a written statement (i) stating (as applicable)
the aggregate Net Sales, by country, of each Product sold during the relevant calendar year by Company, its Affiliates and Licensees,
and (ii) detailing the calculation of amounts due pursuant to Section 1.2(f) for such calendar year.



 


		(b)	Company shall keep
or cause to be kept such records as are reasonably required to determine the amounts due under this Agreement; such records must
be kept for a minimum of three (3) years following the calendar year to which such records pertain. At the request (and expense)
of Founder, Company shall permit Founder to engage an independent certified public accounting firm reasonably acceptable to Company,
at reasonable times not more than once a year and upon reasonable notice, to examine only those records as may be necessary to
determine, with respect to any calendar year ending not more than three (3) years prior to Founder’s request, the correctness
or completeness of any payment made under this Agreement. Founder shall promptly provide a copy of the results of any such audit
or examination to Company. Founder shall bear the full cost of the performance of any such audit or examination, unless such audit
or examination discloses an underpayment exceeding ten percent (10%) of the amount actually due hereunder with respect to any
particular calendar year, in which case Company shall bear the reasonable, documented cost of the performance of such audit or
examination. Company shall promptly pay to Founder the amount of any underpayment of royalties revealed by such an examination
and review. Any overpayment by Company revealed by an examination and review shall be refunded to Company within thirty (30) calendar
days of its request.



 


		2.	Representations
and Warranties of the Parties. Each of the parties hereto hereby represents and warrants to the other as follows:



 


		2.1	Each party may execute, deliver, and perform this Agreement
without the necessity of obtaining any consent, approval, authorization, registration, filing, or waiver or giving any notice,
other than those already obtained;



 


		2.2	This Agreement has been duly authorized by all necessary
actions of the party and constitutes the legal, valid, and binding obligation of such party; and



 


		2.3	Each party has the full right, power, and authority to
enter into this Agreement and to consummate the transactions contemplated hereby.



 


		3.	Notices. All notices hereunder must be in
writing and will be deemed to have been duly given upon receipt of hand delivery, upon electronic transmission with confirmation
of receipt, or upon receipt of registered mail, return receipt requested, addressed to the address set forth for each party, respectively,
on the signature page of this Agreement or to such other address as may be designated by written notice.



 




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		4.	Entire
                                         Agreement. This Agreement constitutes the
                                         entire agreement of the parties with respect to the transactions contemplated herein.
                                         All prior agreements among the parties concerning the subject matter hereof, whether
                                         written or oral, are merged herein and shall be of no force or effect. This Agreement
                                         cannot be altered, modified, or discharged orally but only by an agreement in writing.



 


		5.	Benefit. This Agreement shall be binding
upon and shall inure to the benefit of the parties, their legal representatives, and assigns.



 


		6.	Severability. If any provision contained
in this Agreement is or becomes invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability
of the remaining provisions contained herein will not in any way be affected or impaired thereby.



 


		7.	Further Assurances. The parties hereby agree
to execute and deliver such further instruments and do such further acts as may be required to carry out the intent and purposes
of this Agreement.



 


		8.	Counterparts. This Agreement may be executed
separately by each party in multiple originals, and each original of this Agreement separately executed by one party, when assembled
with one or more copies of this Agreement separately executed by the other parties, shall be and constitute a fully executed original
of this Agreement.



 


		9.	Survival. All representations and warranties
made herein by the parties will survive the execution of this Agreement.



 


		10.	Governing Law. This Agreement shall be governed
by and construed in accordance with the substantive laws of the state of New York, without giving effect to any choice of law
or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the state of
New York.



 


		11.	Term. This Agreement shall be in effect for
a period equal to fifteen (15) years from the Effective Date (the “Initial Term”). Upon expiration of
the Initial Term, this Agreement shall be automatically renewed for successive periods of one (1) year (together with the Initial
Term, the “Term”), unless terminated by Founder by a letter sent by recorded delivery to the Company
at least six (6) months prior to the end of the contractual period in force. In the event of Change in Control, as defined by
this Agreement, termination is governed in accordance with that provision and subject to the one-time change in control fee.



 


		12.	Amendment and Restatement. The terms and
provisions of the Existing Founders Agreement are hereby amended and restated in their entirety by the terms and provisions of
this Amended and Restated Founders Agreement and shall supersede all provisions of the Existing Founders Agreement as of the date
hereof. From and after the date hereof, all references made to the Existing Founders Agreement in any document shall, without
more, be deemed to refer to this Amended and Restated Founders Agreement.



 




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IN WITNESS WHEREOF, this Agreement
has been duly executed by the parties effective for all purposes as of the date first written above.


 


FORTRESS BIOTECH, INC.


 


	By:	/s/
    Lindsay A. Rosenwald, MD	 
	Name: Lindsay
    A. Rosenwald, MD	 
	Title: President
    and Chief Executive Officer	 
	 	 
	Address
    for Notice:	 
	 	 
	2 Gansevoort Street, 9th Floor	 
	New York, NY 10014	 
	Attn: Lindsay A. Rosenwald, MD	 
	lr@fortressbiotech.com	 
	 	 
	AVENUE
    THERAPEUTICS, INC.	 
	 	 
	By: 	/s/
    Lucy Lu, M.D.	 
	Name: Lucy Lu, M.D.	 
	Title: Chief
    Executive Officer and President	 
	 	 
	Address for Notice:	 
	 	 
	2 Gansevoort Street, 9th Floor	 
	New York, NY 10014	 
	Attn: Lucy
    Lu, MD	 
	llu@fortressbiotech.com	 


 


[Signature Page to Amended and Restated
Founders Agreement]


 




     

     


    

 


SCHEDULE
A


 


As
used herein, "Assets" shall mean the following assets, properties, rights and claims of Founder used or
held for use in the Business, or relating to or arising from the conduct of the Business:


 


1. License Agreement, dated as
of February 17, 2015, by and between Fortress Biotech, Inc. and Revogenex Ireland Ltd.


 


Schedule A


 




     

     


    

 


 


SCHEDULE B 


 


Indebtedness


 


		1.	Promissory Note, with an issuance date of February, 17,
2015, issued by Avenue Therapeutics, Inc. to the order of NSC Biotech Venture
Fund I, LLC in the original principal amount of $3,000,000.00.



 


Schedule B