JOINT RESEARCH AND DEVELOPMENT AGREEMENT


Between


THE JOHNS HOPKINS UNIVERSITY APPLIED


PHYSICS LABORATORY AND


SECOND SIGHT MEDICAL PRODUCTS, INC.


 


This Joint Research and Development Agreement
(“Agreement”) is made and entered into by and between The Johns Hopkins University Applied Physics Laboratory LLC (“JHU/APL”),
and Second Sight Medical Products, Inc. (“Company”) hereinafter collectively referred to as the Parties.


 


Article 1          STATEMENT
OF WORK


 


1.1           The
Statement of Work (SOW) sets forth the nature and scope of the cooperative work to be performed under this Agreement, including
any tasks, material, equipment or other support and any associated reporting requirements. The Statement of Work is attached as
Appendix A to this Agreement.


 


1.2           The
parties recognize that the Statement of Work describes the collaborative work they will undertake and that its goals are good faith
guidelines. Periodic reviews can be held between the Parties for the purpose of assessing progress. It is understood that the nature
of the collaborative work is such that completion within the period of performance specified cannot be guaranteed.


 


Article 2          DISCLOSURE
AND PUBLICATION


 


2.1           "Proprietary
Information" means information that is privileged or confidential, provided that such information: is not known or available
from other sources without obligations concerning its confidentiality; has not been made available by the owners to others without
obligations concerning its confidentiality; is not already available without obligations concerning its confidentiality; and has
not been developed independently by persons who have had no access to the information.


 


2.2           The
Parties agree to confer and consult with each other prior to publication or other public disclosure of the results of the collaborative
work to ensure that no Proprietary Information, or other confidential information is released. Prior to submitting a manuscript
for publication or before any other public disclosure, each Party will offer the other Party at least thirty (30) days to review
the proposed publication or disclosure, submit objections, and file applications for patents, as applicable, in a timely manner.


 


2.3           If
necessary, the Parties will exchange information which they consider to be Proprietary Information. The recipient of such information
agrees to accept the disclosure of said information which is marked as confidential or proprietary or other similar marking, at
the time it is sent to the recipient, and to employ all reasonable efforts to maintain the information secret and confidential,
such efforts to be no less than the degree of care employed by the recipient to preserve and safeguard its own Proprietary Information.
The information shall not be disclosed or revealed to anyone except employees of the recipient who have a need to know the information
and who are under a secrecy obligation with the recipient under which such employees are required to maintain confidential the
Proprietary Information of the recipient and such employees shall be advised by the recipient of the confidential nature of the
Proprietary Information and that the information shall be treated accordingly.


 


2.4           Exceptions.
The recipient's obligations shall not extend to any part of the information:


 


(a)          that
can be demonstrated to have been in the public domain or publicly known and readily available to the trade or the public prior
to the date of the disclosure;


 


(b)          that
can be demonstrated, from written records to have been in the recipient's possession or readily available to the recipient from
another source not under obligation of secrecy to the disclosing Party prior to the disclosure;


 


(c)          that
becomes part of the public domain or publicly known by publication or otherwise, not due to any unauthorized act by the recipient;


 


(d)          that
is demonstrated from written records to have been developed by or for the recipient without reference to confidential information
disclosed by the disclosing Party; or


 


(e )          that is required to be disclosed by
law, government regulation or court order.


 




    	 



    	 



    

  


Article 3           FUNDING


 


3.1 JHU/APL’s obligations under
this agreement and the SOW (Appendix A) are subject to the availability and disbursement of funds from The Mann Fund. No legal
liability on the part of JHU/APL for any payment may arise until funds are made available to JHU/APL from The Mann Fund.


 


3.2 JHU/APL will provide approximately
four million (i.e., $ 4.075 million) dollars of the Mann Fund to Company, within 30 days of receiving funds from the Mann Fund,
for research and development as stated in the SOW. JHU/APL will use funds from the Mann Fund to conduct research as stated in the
SOW, said research being within JHU/APL’s non-profit research, development and educational purposes. If funding is not received
by JHU/APL within three (3) months of execution of this Agreement, all rights and obligations of both parties will terminate.


 


Article 4          INTELLECTUAL
PROPERTY


 


4.1           Background
Intellectual Property


 


"Background Intellectual Property"
(also referred to as "Background IP") means property and the legal rights therein of either or both Parties developed
before and independent of this Agreement including inventions, patent applications, patents, copyrights, trademarks, mask works,
trade secrets and any information embodying proprietary data such as technical data and computer software, or any other legally
protectable information. This Agreement shall not be construed as implying that either Party hereto shall have the right to use
Background IP of the other in connection with this Agreement except as otherwise provided hereunder. Background IP of either Party
may be used non-exclusively and without compensation by either Party in connection with the performance of work under this Agreement,
and limited to the term of this Agreement.


  


4.2           Subject
Intellectual Property


 


		1.	"Subject Intellectual Property" (also referred
to as "Subject IP") means property and the legal rights therein relating to inventions which may be patentable or otherwise
protectable, test data and reports, patent applications, patents, copyrights, trademarks, mask works, trade secrets and any other
legally protectable information, including technical data and computer software, first made
or generated during the performance of work under this Agreement.



 


		2.	Ownership of Subject IP shall vest in the Party whose employee(s),
consultants, or agents make or generate Subject IP, and such Party may perfect legal protection therein in its own name and at
its own expense. Jointly made or generated Subject IP shall be jointly owned by the Parties.



 


		3.	Each Party agrees to disclose to the other Party in writing
and in reasonable detail any jointly made or generated Subject IP. Such disclosure shall be made promptly and no later than thirty
(30) days before any patent application directed to such invention is filed, or no later than thirty (30) days after receipt of
disclosure by the patent department of the disclosing Party of the Subject IP. Any decision to file a patent application directed
to jointly made or generated Subject IP and associated costs shall be negotiated between the Parties. Procedures for seeking and
maintaining statutory protection such as patent protection, for jointly made or generated Subject IP shall be agreed in good faith
by the Parties, provided that neither Party shall unreasonably withhold its agreement to seeking such statutory protection.



 


		4.	Each Party hereto may use, import, copy, modify, prepare
derivative works, distribute, publicly display and perform jointly made or generated Subject IP of the other nonexclusively and
without compensation solely in connection with the performance of work as directed by the SOW under this Agreement.



 


		5.	The nonexclusive license granted in sub-paragraph 4 above
is non-assignable and cannot be sub-licensed, unless either Party obtains written permission from the other Party.



 


		6.	Upon the execution of this Agreement, Company shall issue
to JHU/APL 1,000 shares of common stock (SHARES). Company shall deliver to JHU/APL a stock certificate, duly signed by appropriate
officers of Company and issued to The Johns Hopkins University, representing all of the SHARES. Issuance of SHARES is subject
to Company’ s Board approval, If Company’s Board does not grant approval, which will not be unreasonably withheld,
an equivalent dollar amount of the shares will be paid to JHU/APL based on the public market price. If there is no public market
within three months of the effective date of this agreement, and the Company has not issued the SHARES to JHU/APL, Company shall
pay JHU/APL $14,000.00.



 




    	 



    	 



    

  


		7.	Company
agrees to execute a license with JHU/APL upon incorporation of documented JHU/APL Subject IP, documented either internally or
consistent with paragraph three above, into Company’s product(s) with
the license terms as follows:



 


		a)	Patent Costs: COMPANY shall be required to reimburse JHU/APL for all patent costs for IP developed during performance
of the DEVELOPMENT AGREEMENT. The parties agree to work together to obtain cost effective representation. COMPANY must approve
prosecuting counsel, which approval will not be unreasonably withheld. To the extent COMPANY is obligated to reimburse prosecuting
counsel COMPANY may direct that effort.



 


		b)	Running Royalty Rate: COMPANY shall pay to JHU/APL a royalty of .25% on Net Sales generated by the individual components
that include JHU/APL Subject IP or jointly made Subject IP. The system is currently divided into three components, the implant,
the video processing unit and the glasses.



 


		c)	The Licensed Field of Use: restricted to neurally integrated visual prosthetics.



 


		d)	Terms for Negotiation: Company shall outline for JHU/APL Company's capability and/or plans to introduce Company’s
products into public use. Once due diligence milestone and capabilities are established in a manner reasonably satisfactory to
both parties, JHU/APL and Company agree to negotiate in good faith to establish additional terms of a license agreement granting
Company rights to make, have made, use, sell, offer to sell and import JHU/APL Subject IP . In addition to the terms outlined in
7a-c, the license agreement shall include at least the following additional provisions: a commitment by Company to exert their
best efforts to introduce products and services incorporating JHU/APL Subject IP into public use as rapidly as practicable, and
the right of JHU/APL to terminate the license should Company not meet specified, and mutually agreed due diligence milestones.
At the sole discretion of JHU/APL, such license agreement may include provisions for an option to additional fields of use.



 


		8.	The Parties make NO EXPRESS OR IMPLIED WARRANTY AS TO ANY
MATTER WHATSOEVER, including the conditions of the research or any invention or other intellectual property, or product, whether
tangible or intangible, provided, made or generated under this Agreement, or the merchantability, or fitness for a particular
purpose of the research or JHU/APL Subject IP. The Parties further make no warranty that the use of any intellectual property
made, or generated under this Agreement will not infringe any other United States or foreign patent or other intellectual property
right.



 


ARTICLE 5          EFFECTIVE
DATE AND DURATION


 


The effective date of this Agreement is the date of last signature
by the Parties. This agreement will terminate thirty-six (36) months from the effective date, unless terminated earlier per Article
6, or due to lack of funding per Article 3.


 


ARTICLE 6          TERMINATION


 


6.1           Termination
By Either Party. This Agreement may be terminated by either Party, in the event that the other Party


 


1.          
Files or has filed against it a petition under the Bankruptcy Act, makes an assignment for the benefit of creditors, has a receiver
appointed for it or a substantial part of its assets, or otherwise takes advantage of any statute or law designed for relief of
debtors, or


 




    	 



    	 



    

  


2.          
Fails to perform or otherwise breaches any of its obligations hereunder, if, following the giving of notice by the terminating
Party of its intent to terminate and stating the grounds therefor, the Party receiving such notice shall not have cured the failure
or breach within thirty (30) days. In no event, however, shall such notice or intention to terminate be deemed to waive any rights
to damages or any other remedy which the Party giving notice of breach may have as a consequence of such failure or breach. Either
Party may terminate this Agreement and the license granted herein, for any reason, upon giving the other Party sixty (60) days
written notice.


 


6.2           Obligations
and Duties upon Termination  If this Agreement is terminated or expires, both Parties shall be released from all obligations
and duties imposed or assumed hereunder to the extent so terminated, except as expressly provided to the contrary in this Agreement.
Upon expiration or termination, both Parties shall cease any further use of the Proprietary Information disclosed to the recipient
by the disclosing Party.


 


ARTICLE
7          GENERAL PROVISIONS


 


7.1           This
Agreement constitutes the entire agreement between the Parties concerning the Collaborative Work and supersedes any prior understanding
either written or oral. Additionally, nothing in this Agreement is intended to prevent either Party from performing similar or
related work under other existing or future agreements and such work shall not be included within the scope of this Agreement.


 


7.2           The
relationship of the Parties is that of independent parties and not as agents of each other, partners, or participants in a joint
venture. Each Party shall maintain sole and exclusive control over its personnel and operations.


 


7.3           Neither
Party shall use the name of the other Party on any product or service that is directly or indirectly related to either this Agreement
or any patent license or assignment associated with this Agreement without the prior approval of the other Party.


 


7.4           IN
NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL DAMAGES.


 


7.5           Neither
Party will be in breach of this Agreement for any failure of performance caused by any event beyond its reasonable control and
not caused by the fault or negligence of that Party. In the event such a force majeure event occurs, the Party unable to perform
must promptly notify the other Party and in good faith maintain such part performance as is reasonably possible and resume full
performance as soon as is reasonably possible


 


7.6           This
Agreement shall not be construed as an agreement between the Parties to have any future business dealings.


 


7.7           This
Agreement shall be governed by the laws of the State of Maryland. No consideration shall be given to Maryland's conflict of laws
rules.


 


7.8           COMPANY
understands and agrees that JHU/APL has a technical direction agent relationship with the United States Government which requires
that JHU/APL avoid any work under any contract or agreement that would jeopardize its or its employees' ability to act for the
United States Government as an impartial or neutral evaluator. Therefore, JHU/APL shall at all times under this Agreement retain
the right to refuse to accept any subcontract or other agreement to perform any work under any such subcontract or other agreement
between JHU/APL and COMPANY which in JHU/APL's sole discretion would create an actual or perceived organizational or individual
conflict of interest.


 


7.9           This
Agreement may be amended and any of its terms or conditions may be waived only by a written instrument executed by the authorized
officials of the parties or, in the case of a waiver, by the party waiving compliance. The failure of either party at any time
or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same.
No waiver by either party of any condition or term in any one or more instances shall be construed as a further or continuing waiver
of such condition or term or of any other condition or term.


 




    	 



    	 



    

  


Article 8          SURVIVING
PROVISIONS


 


8.1.          The
provisions covering Liability, Funding, General Provisions, and Surviving Provisions shall survive the completion, termination,
or expiration of this Agreement.


 


8.2           The
export regulations of the United States Government may prohibit, except under a special validated license, the exportation from
the United States of certain commodities and/or related technical data. In order to facilitate the exchange of technical information
under this Agreement, COMPANY hereby gives its assurance to JHU/APL that COMPANY will not knowingly, unless prior authorization
is obtained from the appropriate United States Government agency or agencies, export any apparatus or technical data received from
JHU/APL under this Agreement or LICENSED PRODUCT(S) to any restricted country specified in such regulations. JHU/APL neither represents
that a license is not required nor that, if required, it will be issued by the United States Government.


 


	Second Sight Medical Products, Inc.	 	The Johns Hopkins University
	 	 	Applied Physics Laboratory
	 	 	 
	 	 	 
	 	 	 
	Date	 	Date