Exhibit 10.5


 


PATENT
SECURITY AGREEMENT


 


This
PATENT SECURITY AGREEMENT (this “Patent Security Agreement”) is entered into as of September 24, 2021 by and among
, Ensysce Biosciences, Inc., a Delaware corporation (the “Company”), all of the Subsidiaries of the Company (such
subsidiaries, the “Guarantors” and together with the Company, the “Debtors”), the holders of the
Company’s Senior Secured Convertible Notes due twenty-one (21) months following their dates of issuance, in the original aggregate
principal amount of $15,000,000 (collectively, the “Notes”) signatory to the Security Agreement (as herein defined),
their endorsees, transferees and assigns (collectively, the “Secured Parties”) and 3i, LP, in its capacity as agent
for the Secured Parties (“Agent”).


 


WHEREAS,
pursuant to the Purchase Agreement (as defined in the Notes), the Secured Parties have severally agreed to extend the loans to the Company
evidenced by the Notes;


 


WHEREAS,
pursuant to a certain Subsidiary Guarantee, dated as of the date hereof (the “Guarantee”), the Guarantors have jointly
and severally agreed to guarantee and act as surety for payment of such Notes;


 


WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Notes and to purchase the warrants (“Warrants”)
under the Purchase Agreement, each Debtor has agreed to execute and deliver to the Secured Parties that certain Security Agreement ,
dated as of the date hereof (the “Security Agreement”) and to grant the Secured Parties, pari passu with each
other Secured Party and through the Agent (as defined in Section 18 of the Security Agreement), a security interest in certain property
of such Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Notes
and the Guarantors’ obligations under the Guarantee; and


 


WHEREAS,
in connection with the Security Agreement, the Company the Guarantors have agreed to execute and deliver this Patent Security Agreement
in order to record the security interest granted to the Secured Parties with the United States Patent and Trademark Office;


 


NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company hereby agrees as follows:


 


SECTION
1. Defined Terms. Unless otherwise defined herein, capitalized terms defined in the Security Agreement and used herein have the
meaning given to them in the Security Agreement. The term “Patents” means, collectively, (a) all of the patent and
patent applications, whether United States or foreign, that are owned by the Company, or in which the Company has any right, title or
interest, now or in the future, including but not limited to (i) the patents and patent applications listed on Schedule I hereto (as
the same may be amended pursuant hereto from time to time), (ii) all letters patent of the United States or any other country, and all
applications for letters patent of the United States or any other country; (iii) all re-issues, continuations, divisions, continuations-in-part,
renewals or extensions thereof; (iv) the inventions disclosed or claimed therein, including the right to make, use, practice and/or sell
(or license or otherwise transfer or dispose of) the inventions disclosed or claimed therein; and (v) the right (but not the obligation)
to make and prosecute applications for such patents, (b) all past, present or future rights in, to and associated with the foregoing
throughout the world, whether arising under federal law, state law, common law, foreign law or otherwise, including the following: all
such rights arising out of or associated with the registrations of the foregoing items set forth in clause (a), the right (but not the
obligation) to register claims under any state, federal or foreign patent law or regulation; the right (but not the obligation) to sue
or bring opposition or cancellation proceedings in the name of the Company or the Secured Parties for any and all past, present and future
infringements or dilution of or any other damages or injury to the foregoing or any associated goodwill, and the rights to damages or
profits due or accrued arising out of or in connection with any such past, present or future infringement, dilution, damage or injury;
and (c) any license rights related to the foregoing.


 




    	 



     


    

 


SECTION
2. Grant of Security Interest in Patent Collateral. The Company hereby pledges, collaterally assigns and grants to the Secured
Parties to secure the prompt and complete payment and performance of the Obligations, a security interest (referred to in this Patent
Security Agreement as the “Security Interest”) in all of the Company’s right, title and interest in, to and
under the following, whether now owned or hereafter acquired or arising (collectively, the “Patent Collateral”):


 


(a)
all of its Patents and licenses with respect to Patents to which it is a party including those referred to on Schedule I;


 


(b)
each license with respect to Patents; and


 


(c)
all products and proceeds (as that term is defined in the UCC) of the foregoing, including any claim by the Company against third parties
for past, present or future (i) infringement or dilution of any Patent or any Patents exclusively licensed under any license, including
right to receive any damages, or (ii) right to receive license fees, royalties, and other compensation under any license with respect
to Patents.


 


SECTION
3. Security for Obligations. This Patent Security Agreement and the Security Interest created hereby secures the payment and performance
of the Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this Patent Security
Agreement secures the payment of all amounts which constitute part of the Obligations and would be owed by the Company to the Secured
Parties, whether or not they are unenforceable or not allowable due to the existence of an insolvency proceeding involving the Company.


 


SECTION
4. Security Agreement. The Security Interest granted pursuant to this Patent Security Agreement is granted in conjunction with
the security interests granted to the Secured Parties pursuant to the Security Agreement. The Company hereby acknowledges and affirms
that the rights and remedies of the Secured Parties with respect to the Security Interest in the Patent Collateral made and granted hereby
are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully
set forth herein. To the extent there is any inconsistency between this Patent Security Agreement and the Security Agreement, the Security
Agreement shall control.


 


SECTION
5. Authorization to Supplement. If the Company shall obtain rights to any new Patents, the provisions of this Patent Security
Agreement shall automatically apply thereto. The Company hereby authorizes the Secured Parties unilaterally to modify this Patent Security
Agreement by amending Schedule I to include any such new patent rights of the Company. Notwithstanding the foregoing, no failure
to so modify this Patent Security Agreement or amend Schedule I shall in any way affect, invalidate or detract from the Secured
Parties’ continuing security interest in all Collateral (including the Patent Collateral), whether or not listed on Schedule
I.


 


SECTION
6. Counterparts. This Patent Security Agreement may be executed in any number of counterparts, all of which shall constitute one
and the same instrument, and any party hereto may execute this Patent Security Agreement by signing and delivering one or more counterparts.


 


SECTION
7. Governing Law. This Patent Security Agreement and any claims, controversy, dispute or cause of action (whether in contract
or tort or otherwise) based upon, arising out of or relating to this Patent Security Agreement and the transactions contemplated hereby
shall be governed by, and construed in accordance with, the law of the State of New York.


 


[Signature
pages to follow]


 




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IN
WITNESS WHEREOF, the Company has caused this Patent Security Agreement to be executed and delivered by its duly authorized offer as of
the date first set forth above.


 


	ENSYSCE
    BIOSCIENCES, INC.	 
	 	 	 
	By:	 /s/
    Lynn Kirkpatrick	 
	Name:
    	Dr.
    Lynn Kirkpatrick	 
	Title:	President
    and Chief Executive Officer	 
	 	 	 
	EBI
    OpCo, Inc.	 
	 	 	 
	By:	 /s/
    Lynn Kirkpatrick	 
	Name:
    	Dr.
    Lynn Kirkpatrick	 
	Title:	President
    and Chief Executive Officer	 
	 	 	 
	EBI
    OpERATING, Inc.	 
	 	 	 
	By:	 /s/
    Lynn Kirkpatrick	 
	Name:
    	Dr.
    Lynn Kirkpatrick	 
	Title:	President
    and Chief Executive Officer	 
	 	 	 
	COVISTAT,
    Inc.	 
	 	 	 
	By:	 /s/
    Lynn Kirkpatrick	 
	Name:
    	Dr.
    Lynn Kirkpatrick	 
	Title:	President
    and Chief Executive Officer	 


 


[SIGNATURE
PAGE OF AGENT FOLLOWS]


 




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[SIGNATURE
PAGE OF AGENT TO SECURITY AGREEMENT]


 


	3i,
    LP	 
	 	 	 
	By:	/s/
Maier Tarlow	 
	Name:	Maier Tarlow	 
	Title	 Manager
    On Behalf Of The GP	 


 




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SCHEDULE
I

to

PATENT SECURITY AGREEMENT

PATENT REGISTRATIONS AND PATENT APPLICATIONS


 




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