Document:

Exhibit 10.1

 

[****] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions.

 

LICENSE AGREEMENT

 

“DOTA-PRIT
(Pre-Targeted Radioimmunotherapy)”

 

between

 

MEMORIAL SLOAN KETTERING
CANCER CENTER

 

and

 

Y-MABS THERAPEUTICS, INC.

 

 

Dated: April 15,
2020

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE 1 - DEFINITIONS	2
	ARTICLE 2 - GRANT OF LICENSE AND OPTION	10
	ARTICLE 3 - SUBLICENSES	12
	ARTICLE 4 - DILIGENCE	13
	ARTICLE 5 - PAYMENTS	15
	ARTICLE 6 - REPORTS AND RECORDS	23
	ARTICLE 7 - PATENT PROSECUTION	25
	ARTICLE 8 - INFRINGEMENT	26
	ARTICLE 9 - CONFIDENTIALITY	29
	ARTICLE 10 - INDEMNIFICATION, PRODUCT LIABILITY	30
	ARTICLE 11 - REPRESENTATIONS, WARRANTIES AND DISCLAIMERS	33
	ARTICLE 12 - EXPORT CONTROLS	35
	ARTICLE 13 - NON-USE OF NAMES	35
	ARTICLE 14 - PUBLICATION	36
	ARTICLE 15 - ASSIGNMENT	36
	ARTICLE 16 - TERMINATION	37
	ARTICLE 17 - NOTICES AND OTHER COMMUNICATIONS	40
	ARTICLE 18 - MISCELLANEOUS PROVISIONS	41

 

	Exhibit A	 	PATENT RIGHTS AND KNOW-HOW
	Exhibit B	 	TANGIBLE MATERIAL EXCLUSIVELY LICENSED
	Exhibit C	 	DEVELOPMENT PLAN
	Exhibit D	 	SPONSORED RESEARCH AGREEMENT
	Exhibit E	 	LIST OF CERTAIN ANTIBODY PATENT RIGHTS

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    i

     

    

 

LICENSE AGREEMENT

 

This Agreement (the “Agreement”) is effective on
the date of the last signature below (“Effective Date”), and is by and between Memorial Sloan Kettering Cancer Center
(“MSK”), a New York not-for-profit corporation with its principal office at 1275 York Avenue, New York, NY, and Y-mAbs
Therapeutics, Inc., a Delaware corporation with its principal office at 750 3rd Avenue, New York, N.Y. 10017 (“LICENSEE”).
MSK and LICENSEE are sometimes referred to singly as “Party” and collectively as “Parties”.

 

WITNESSETH

 

WHEREAS, MSK is the owner or co-owner of certain patent rights
and has the right to grant licenses to its rights under said patent rights; and

 

WHEREAS, the Massachusetts Institute of Technology (“MIT”)
is the owner of certain patent rights and MIT and MSK have entered into an agreement granting MSK the right to license said patent
rights; and

 

WHEREAS, MIT and MSK jointly own certain patent rights and
have entered into an agreement granting MSK the right to license said patent rights; and

 

WHEREAS, MSK and MIT desire to have the Licensed Rights utilized
in the public interest and MSK is willing to grant a license to its interest thereunder; and

 

WHERAS, the Parties desire to further develop antibodies included
in or based upon the Licensed Rights; and

 

WHEREAS, LICENSEE desires to obtain certain licenses on the
terms set forth herein under the Licensed Rights to develop and commercialize Licensed Products and perform Licensed Services
(both as defined herein) through a thorough, vigorous and diligent program of exploiting the Licensed Rights whereby public utilization
shall result therefrom;

 

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

 

ARTICLE 1 - DEFINITIONS

 

For the purpose of this Agreement, the following words and
phrases shall have the following meanings:

 

		1.1	“Affiliate” as used herein in either singular or plural
                                         means, with respect to a party, any corporation, company, partnership, joint venture
                                         or other entity, which directly or indirectly: (a) Controls, is Controlled by or
                                         is under common Control with the specified entity; or (b) both (i) owns, is
                                         owned by, or is under common ownership with the specified entity, in whole or in part,
                                         and (ii) conducts business under a trade identifier of the specified entity, with
                                         the authorization of the specified entity. For purposes of this definition, “Control”
                                         of an entity means the direct or indirect ownership or control of at least fifty percent
                                         (50%) of the right to direct or cause the direction of the policies and management of
                                         such person or entity, whether by the ownership of equity, by contract or otherwise.
                                         In any jurisdiction where 50% control is not permitted by applicable law, the “greater
                                         than 50%” threshold shall be deemed satisfied by the possession of substantially
                                         the maximum percentage allowable in such jurisdiction. With regard to MSK, “Affiliate”
                                         shall include, without limitation, the Sloan-Kettering Institute for Cancer Research
                                         and the Memorial Hospital for Cancer and Allied Diseases.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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		1.2	“Antibody Patent Rights” means MSK’s and MIT’s
                                         rights, as applicable, in:

 

(a)          The
United States and foreign patents and patent applications listed in Exhibit A-1;

 

(b)          any
other patent or patent application that claims priority to, or common priority with, or is a divisional, continuation, reissue,
renewal, reexamination, substitution or extension of any patent or patent application identified on Exhibit A-1;

 

(c)          any
patents subsequently issuing on any patent application identified in (a) or (b) above, including any reissues, renewals,
reexaminations, substitutions or extensions thereof;

 

(d)          any
claim of a continuation-in-part application or patent (including any reissues, renewals, reexaminations, substitutions or extensions
thereof) that is entitled to the priority date of at least one of the patents or patent applications identified in (a), (b) or
(c) above;

 

(e)          any
foreign counterpart (including PCTs) of any patent or patent application identified in (a), (b), (c) or (d) above; and

 

(f)           to
the extent legally possible and available for MSK and/or MIT to provide, any supplementary protection certificates, pediatric
exclusivity periods, any other patent term extensions and exclusivity periods and the like of any patents and patent applications
identified in (a) through (e) above.

 

		1.3	“[****]” means [****].

 

		1.4	Intentionally Omitted.

 

		1.5	Intentionally Omitted.

 

		1.6	“Commercially Reasonable Efforts” means, with respect
                                         to particular obligations or tasks, such level of efforts applied to carry out such obligations
                                         or tasks consistent with the efforts used in the biopharmaceutical industry by a company
                                         of comparable size in connection with the development or commercialization of biopharmaceutical
                                         products that are of similar status, to accomplish such obligations or tasks, at the
                                         same stage of development or commercialization, as applicable, for internally developed
                                         products in a similar area with similar market potential, at a similar stage of their
                                         product life taking into account the existence of third parties’ (but not LICENSEE’s,
                                         Sublicensee’s, or their respective Affiliates’ own) competitive products,
                                         the proprietary position of the product, the regulatory structure involved, and the anticipated
                                         profitability of the product.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

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		1.7	“Confidential Information” means all confidential or
                                         proprietary information disclosed by one Party to the other Party relating to and in
                                         the performance of this Agreement, including any uses, processes, methods, formulations,
                                         clinical data, test results, research and development plans, pricing policies, business
                                         plans, sales, information relating to customer identities, characteristics and agreements,
                                         financial information and projections, trade secrets, work in progress, future development,
                                         marketing, and investors whether in oral, graphic, electronic or any other media or form.

 

		1.8	“Contract Half-Year” means the six month periods ending
                                         on June 30 and December 31 of each year.

 

		1.9	“Control” or “Controlled” means, with respect
                                         to Intellectual Property Rights, ownership together with the ability to grant a license
                                         without (a) violating the terms of any written agreement with a third party, and/or
                                         (b) incurring any payment obligation to a third party.

 

		1.10	“Diagnostic Licensed Service” means a Licensed Service
                                         that is intended for the determination, diagnosis, or identification of a disease, condition,
                                         characteristic, or trait.

 

		1.11	“Diagnostic Licensed Product” means a Licensed Product
                                         that is intended for the determination, diagnosis, or identification of a disease, condition,
                                         characteristic, or trait.

 

		1.12	“Field of Use” means the use of the Licensed Rights
                                         in the field of Radioimmunotherapy for the diagnosis and treatment of cancer. Field of
                                         Use excludes cell-based or cell-related therapeutics and diagnostics, including but not
                                         limited to the use of [****] constructs, and products incorporating [****].

 

		1.13	“Intellectual Property Rights” means any or all of
                                         the following, and any and all rights anywhere in the world in, arising out of or associated
                                         therewith: (a) patent applications or patents; (b) copyrights and other rights
                                         in works of authorship; (c) trade secrets; (d) rights in data or Know-How (including
                                         both intellectual property rights and personal property rights in tangible personal property),
                                         and (e) all other intellectual property rights similar to the foregoing (but in
                                         no event including trademarks, trade names, service marks, service names, trade dress
                                         rights or other similar rights); in each case, whether or not any of the foregoing is
                                         registered, and including, without limitation, rights to apply for, applications for
                                         registration of, and any registrations or issuances of, any of the foregoing.

 

		1.14	“Know-How” means tangible and intangible technical
                                         information, materials, inventions, processes, protocols, procedures, formulations, compounds,
                                         compositions, devices, methods, formulae, protocols, techniques, algorithms, software,
                                         works of authorship, designs, drawings, results, findings, ideas, concepts, creations,
                                         discoveries, developments, techniques, processes, know-how, drawings, designs, specifications,
                                         data, content, information, formulas, formulations, algorithms, software, and other technologies
                                         or subject matter of any kind, in each case, that are (i) provided to Licensee;
                                         (ii) not generally publicly known, (iii) Controlled by MSK or MIT, and (iv) used
                                         to make or use Licensed Products or perform Licensed Services.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

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		1.15	Intentionally omitted.

 

		1.16	“Licensed Products” means on a country-by-country
                                         basis, any antibody construct comprising a binding domain that is specific to all or
                                         part of a DOTA-associated sequence for pre-targeted Radioimmunotherapy that (i) is
                                         covered by (in whole or in part), or is made, uses or is used by a Licensed Service,
                                         or that the making, use, sale, offer to sell, or import of which infringes or would infringe
                                         one or more Valid Claims, but for the license granted herein and not taking into account
                                         the availability of a legal exemption such as experimental use or drug discovery/development
                                         such as that provided by 35 U.S.C. § 271(e)(1) and similar provisions in the
                                         laws of other jurisdictions, and/or (ii) embodies, contains, incorporates, uses,
                                         is used or made through the use of, or was in whole or in part derived from the Know-How.
                                         For the avoidance of doubt, (a) Licensed Products excludes [****] constructs, and
                                         products incorporating [****]; and (b) all Licensed Products shall be either Therapeutic
                                         Licensed Products or Diagnostic Licensed Products.

 

		1.17	“Licensed Rights” means (i) the Know-How, (ii) the
                                         Patent Rights, and (iii) all Intellectual Property Rights owned in, to or covering
                                         the Know-How.

 

		1.18	“Licensed Service” means (a) on a country-by-country
                                         basis, any service or process making or using an antibody construct comprising a binding
                                         domain that is specific to all or part of a DOTA-associated sequence for pre-targeted
                                         Radioimmunotherapy the performance of which in the country in question would, absent
                                         the license granted under this Agreement, and not taking into account the availability
                                         of a legal exemption such as experimental use or drug discovery/development such as that
                                         provided by 35 U.S.C. § 271(e)(1) and similar provisions in the laws of other
                                         jurisdictions, (i) infringe or otherwise be within the scope of at least one Valid
                                         Claim in that country, and/or (ii) embodies, contains, incorporates, uses, is used
                                         or made through the use of, or was in whole or in part derived from the Know-How; or
                                         (b) performance of a service using a Licensed Product or the foregoing process.
                                         For the avoidance of doubt, (a) Licensed Services excludes providing or generating
                                         [****] constructs, and products incorporating [****]; and (b) all Licensed Services
                                         shall be either Therapeutic Licensed Services or Diagnostic Licensed Services.

 

		1.19	Intentionally Omitted.

 

		1.20	“LICENSEE” means Y-mAbs Therapeutics, Inc.

 

		1.21	Intentionally Omitted.

 

		1.22	Intentionally Omitted.

 

		1.23	Intentionally Omitted.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

    5

     

    

 

		1.24	“MIT Patent Rights” means MIT’s rights in:

 

(a)          The
United States and foreign patents listed in Exhibit A-2; and

 

(b)          any
other patent that is a reissue, renewal, reexamination, substitution or extension of any patent identified on Exhibit A-2.

 

		1.25	“Net Sales” means the gross amount billed by LICENSEE,
                                         its Sublicensees, or their respective Affiliates for Licensed Products or for Licensed
                                         Services, less the following:

 

(a)          customary
trade, quantity, or cash discounts to the extent actually allowed and taken;

 

(b)          amounts
repaid or credited by reason of rejection or return;

 

(c)          to
the extent separately stated on purchase orders, invoices, or other documents of sale, any taxes or other governmental charges
levied on the production, sale, transportation, delivery, or use of a Licensed Product or performance of a Licensed Service, which
is paid by or on behalf of LICENSEE, Sublicensee, or their respective Affiliates; and

 

(d)          to
the extent separately stated on purchase orders, invoices, or other documents of sale, outbound transportation costs prepaid or
allowed and costs of insurance in transit.

 

Each of (a) through (d) above being a “Deductible
Expense.” In no event shall the sum of Deductible Expense exceed [****].

 

No deductions shall be made for commissions paid
to individuals or firms whether they be with independent sales agencies or regularly employed by LICENSEE and on its payroll,
or for cost of collections. Net Sales shall occur on the earlier of the date of billing or invoice for a Licensed Product or Licensed
Service.

 

Customary distribution of samples of Licensed Product
or related performance of Licensed Services by LICENSEE or Affiliates shall not be included in any calculation of Net Sales.

 

In the case of discounts on “bundles”
of products or services which include Licensed Products and/or Licensed Services, LICENSEE may, with notice to MSK, discount (or
permit the discounting by an Affiliate or Sublicensee of LICENSEE) the bona fide list price of any Licensed Product and/or Licensed
Service in such “bundle” by the average percentage discount of all products and services in a particular “bundle,”
calculated as follows: average percentage discount on a particular “bundle” = [1 - (A/B)] x 100; where A equals the
total discounted price of a particular “bundle” of products and/or services, and B equals the sum of the undiscounted
bona fide list prices of each unit of every product and/or services in such “bundle” (including without limitation,
the Licensed Products and Licensed Services). With each quarterly royalty report submitted pursuant to Section 6.2 below,
LICENSEE shall provide MSK reasonable documentation establishing such average discount with respect to each “bundle.”
If LICENSEE cannot so establish the average discount of a “bundle,” Net Sales shall be based on the undiscounted list
price of the Licensed Product or Licensed Service, as the case may be, in the “bundle.” If a Licensed Product or Licensed
Service in a “bundle” is not sold separately, and no bona fide list price exists for such Licensed Product or Licensed
Service, the Parties shall mutually agree (such agreement not to be unreasonably withheld by either Party) to an imputed list
price for such Licensed Product or Licensed Service and Net Sales with respect thereto shall be based on such imputed list price.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

    6

     

    

 

Except as provided in the preceding paragraph, no
deductions, credits, rebates, or allowances shall be taken or permitted in calculating Net Sales that depend or are based in whole
or in part on the sale or purchase of any product or service that is not a Licensed Product or Licensed Service, including without
limitation for the practice commonly known as “bundling.”

 

If a Licensed Product is sold, or a Licensed Service
performed, for the purpose of creating a finished product for sale, for example a finished therapeutic product for administration
to patients, Net Sales shall be calculated on the first arms’ length sale of such finished product, and the sale of the
Licensed Product or Licensed Service for the purpose of creating the finished product for sale shall be excluded.

 

If a product or service is sold or provided for the
purpose of creation or use by a third party of a Licensed Product or Licensed Service (an “Intermediate”), the Intermediate
shall be deemed to be a Licensed Product or Licensed Service for purposes hereof, and shall be included in Net Sales.

 

Net Sales shall be determined in accordance with
GAAP, but not in any way that reduces the calculations of Net Sales provided herein.

 

Use, transfers or dispositions of Licensed Products
or Licensed Services without charge or consideration (except to reimburse actual out-of-pocket costs for transport or other such
logistics) and in line with normal industry practice, (i) for charitable purposes; (ii) for preclinical, clinical trial,
or non-commercial manufacturing purposes; or (iii) for regulatory or governmental purposes shall not in each case be included
for the purposes of calculating Net Sales.

 

Additionally, if LICENSEE or a Sublicensee uses a
Licensed Product or a Licensed Service for its own internal purposes, or otherwise in a situation that is not for the sale of
Licensed Products or Licensed Services, in each case except for development of same, then Net Sales shall also include an amount
equal to the customary sale price charged to a third party for the same Licensed Product or Process. If there is no customary
sale price, then the Net Sales shall be an amount equal to the fair market value.

 

For clarity, “cumulative” refers to the
lifetime of the Royalty Term, and includes without distinction sales made by LICENSEE, its Sublicensees, and their respective
Affiliates.

 

		1.26	“Patent Rights” means the Antibody Patent Rights and
                                         the MIT Patent Rights.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    7

     

    

 

		1.27	“Phase I Trial” means the first phase of a clinical
                                         study involving the initial introduction of an investigational new drug into humans (generally,
                                         but not always, in the range of 20 to 30 subjects). Phase I studies are typically closely
                                         monitored and may be conducted in patients or normal volunteer subjects. These studies
                                         are designed to determine the metabolism and pharmacologic actions of the drug in humans,
                                         the side effects associated with increasing doses, and, if possible, to gain early evidence
                                         on effectiveness that provides data capable of meeting statutory standards for marketing
                                         approval. During Phase I, sufficient information about the drug’s pharmacokinetics
                                         and pharmacological effects should be obtained to permit the design of well-controlled,
                                         scientifically valid, Phase II Trials. For example, “Phase I Trial” includes
                                         a human clinical study that satisfies the requirements of 21 C.F.R. § 312.21(a) in
                                         the United States, or an equivalent or counterpart of the foregoing in any other country
                                         or jurisdiction. For clarity, “Phase I Trial” includes both Phase Ia and
                                         Phase Ib trials.

 

		1.28	“Phase II Trial” means the second phase of a clinical
                                         study, the principal purpose of which is to evaluate the effectiveness of the drug for
                                         a particular indication and to determine the common short term side effects and risks
                                         associated with the drug in patients with the disease target being studied, that provides
                                         data capable of meeting statutory standards for marketing approval. Phase II Trials usually
                                         involve no more than several hundred subjects. For example, “Phase II Trial”
                                         includes a human clinical study that satisfies the requirements of 21 C.F.R. § 312.21(b) in
                                         the United States, or an equivalent or counterpart of the foregoing in any other country
                                         or jurisdiction. For clarity, “Phase II Trial” includes both Phase IIa and
                                         Phase IIb trials.

 

		1.29	“Phase III Trial” means the third phase of a clinical
                                         study involving expanded controlled and uncontrolled trials. They are performed after
                                         preliminary evidence suggesting effectiveness of the drug has been obtained, and are
                                         intended to gather the additional information about effectiveness and safety that is
                                         needed to evaluate the overall benefit-risk relationship of the drug and to provide an
                                         adequate basis for physician labeling, to support registration for a product or compound
                                         with the FDA and any FDA counterpart, and that provides data capable of meeting statutory
                                         standards for marketing approval. Phase III Trials usually include several hundred to
                                         several thousand subjects. For example, in the United States, “Phase III Trial”
                                         includes a human clinical study that satisfies the requirements of 21 C.F.R. § 312.21(c) in
                                         the United States, or an equivalent or counterpart of the foregoing in any other country
                                         or jurisdiction. For clarity, “Phase III Trial” includes both Phase IIIa
                                         and Phase IIIb trials.

 

		1.30	“Radioimmunotherapy” means a direct or indirect conjugate
                                         of (i) an antibody, antibody fragment, or other composition of matter comprising
                                         a peptide binding domain, and (ii) a radioactive isotope.

 

		1.31	“Regulatory Approval” means, with respect to a nation
                                         or, where applicable, a multinational jurisdiction, such approvals, licenses, registrations
                                         or authorizations that are required to be obtained from a Regulatory Authority prior
                                         to the marketing and sale of a Licensed Product for use in the Field of Use in such country
                                         or multinational jurisdiction (including, where applicable, pricing approvals necessary
                                         to obtain reimbursement).

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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		1.32	“Regulatory Authority” means, with respect to any
                                         particular country or, where applicable, a multinational jurisdiction, the governmental
                                         authority, body, commission, agency or other instrumentality of such country or multinational
                                         jurisdiction (e.g., the EMA with respect to the European Union), with the primary responsibility
                                         for the approval of pharmaceutical products before a Licensed Product can be tested,
                                         marketed, promoted, distributed or sold in such country or multinational jurisdiction,
                                         including such governmental bodies, if any, that have jurisdiction over the pricing of
                                         such pharmaceutical product. The term “Regulatory Authority” includes, without
                                         limitation, the USFDA, the European Medicines Agency, and the Japanese MHW.

 

		1.33	“Royalty Term” means, on a Licensed Product-by-Licensed
                                         Product or Licensed Service-by-Licensed Service basis and country-by-country basis, the
                                         period from the first commercial sale of such Licensed Product or provision of Licensed
                                         Service in such country until the later of: (a) expiration of the last Patent Rights
                                         covering such Licensed Product or provision of Licensed Service in such country; (b) expiration
                                         of any market exclusivity period granted by a Regulatory Authority with respect to such
                                         Licensed Product or provision of Licensed Service in such country; or (c) [****]
                                         from the first commercial sale in such country.

 

		1.34	“Royalty Year” means each twelve (12) month period
                                         commencing January 1 and ending December 31 during the term of this Agreement;
                                         provided however, that: (a) the first Royalty Year shall be the period of time commencing
                                         with the Effective Date and ending on December 31, 2019; and (b) the last Royalty
                                         Year shall be the period of time commencing on January 1 of the year in which this
                                         Agreement expires or is terminated, and ending on the date of expiration or termination
                                         of this Agreement.

 

		1.35	Intentionally Omitted.

 

		1.36	“Sponsored Research Agreement” means the agreement
                                         between LICENSEE and MSK containing the terms and conditions under which the sponsored
                                         research at MSK will be performed.

 

		1.37	“Sublicensee” means any business entity to which an
                                         express sublicense has been granted under the Licensed Rights as further described under
                                         Article 3, or with respect to the Licensed Products pursuant to this Agreement.
                                         If a third-party wholesaler or distributor does not pay any consideration to LICENSEE
                                         for its wholesale or distributor rights, it shall not be considered a Sublicensee; and
                                         the resale by such wholesaler or distributor of such Licensed Products or Licensed Services
                                         shall not count towards Net Sales by a Sublicensee provided that a royalty is being paid
                                         by LICENSEE on the Net Sales of the amount of initial transfer to the wholesaler or distributor
                                         pursuant to Article 5.

 

		1.38	“Term” means the term of this Agreement which will
                                         commence on the Effective Date and expire upon the expiration of the last Royalty Term
                                         for any Licensed Product or Licensed Service, unless earlier terminated pursuant to the
                                         Article 16 of this Agreement.

 

		1.39	“Territory” means worldwide.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

    9

     

    

 

		1.40	“Therapeutic Licensed Service” means a Licensed Service
                                         that is intended for the treatment, palliation, prevention, or prophylaxis of a disease
                                         or condition.

 

		1.41	“Therapeutic Licensed Product” means a Licensed Product
                                         that is intended for the treatment, palliation, prevention, or prophylaxis of a disease
                                         or condition.

 

		1.42	“Valid Claim” means a claim of (i) an issued
                                         and unexpired patent included within the Patent Rights unless the claim has been held
                                         unenforceable or invalid by the final, un-reversed, and un-appealable decision of a court
                                         or other government body of competent jurisdiction, has been irretrievably abandoned
                                         or disclaimed, or has otherwise been finally admitted or determined to be invalid, unpatentable
                                         or unenforceable, whether through reissue, reexamination, disclaimer or otherwise, or
                                         (ii) a pending patent application included within the Patent Rights to the extent
                                         the claim continues to be prosecuted in good faith for a time period not to exceed [****]
                                         from its earliest asserted priority filing date.

 

ARTICLE 2 -
GRANT OF LICENSE, OPTION AND TRANSFER OF KNOW-HOW

 

		2.1	License Grant.

 

(a)          In
consideration of LICENSEE’s satisfaction of all of its obligations hereunder, and subject to the terms and conditions of
this Agreement, MSK hereby grants to LICENSEE a worldwide license, in the Field of Use, during the Term of this Agreement, including
the right to sublicense (subject to Article 3 hereof), to MSK and MIT’s rights under the Licensed Rights (A) to
make, have made, use, offer to sell, sell and import Licensed Products, and (B) to perform Licensed Services.

 

Except for the reserved rights in Section 2.1(b),
the foregoing license is exclusive with respect to:

 

·             the
Antibody Patent Rights except for [****];

 

·             those
portions of the Know-How identified on Exhibit B that are tangible biological materials, including MSK’s Intellectual
Property Rights in such tangible materials;

 

·             the
MIT Patent Rights.

 

As to the balance of the Licensed Rights, the foregoing
license is nonexclusive.

 

(b)          The
grants in Section 2.1(a) above are non-exclusive with respect to the following rights:

 

(i)           the
use of Licensed Rights by MSK, MIT and their Affiliates and all other non-profit research institutions for patient care; academic
or nonprofit research (including sponsored research); and teaching and other educationally related purposes;

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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(ii)          the
use of Licensed Rights by the inventors thereof (and their laboratories and collaborators) for patient care; academic or nonprofit
research (including sponsored research); and teaching and other educationally related purposes; and

 

(iii)         any
rights reserved to the United States of America under 35 U.S.C. §§ 200-212 or any other applicable governmental law
or regulation.

 

For the avoidance of doubt, MSK and MIT may transfer
any tangible materials within the rights licensed to LICENSEE hereunder to any nonprofit educational or research institutions
for their internal, nonprofit research activities only but in all cases not involving patient care or dosing of humans. Any such
transfer will be made under a material transfer agreement, which may include an express or implied license to use such materials.
MSK or MIT, as the case may be, will provide a copy of the material transfer agreement to LICENSEE prior to transferring the tangible
material, and LICENSEE may provide comments or input on the form of material transfer agreement and proposed transfer, and will
have the right to compel changes and to veto the transfer. Material transfer agreements may not be subject to further sub-licensing.

 

(c)          MSK
and MIT reserve all rights not expressly granted in this Agreement. The licenses granted hereunder shall not be construed to confer
any rights upon LICENSEE by implication, estoppel or otherwise as to any intellectual property or technology of MSK or MIT not
included in the Licensed Rights. For the avoidance of doubt, LICENSEE acknowledges that the practice of the rights licensed hereunder,
and rights within the [****] or the [****] (both defined below), may be restricted by Intellectual Property Rights that are now,
or that may in the future be, owned or controlled by MSK or MIT, including Intellectual Property Rights licensed to third parties.

 

		2.2	[****]

 

		2.3	[****]

 

		2.4	[****]

 

		2.5	[****]

 

		2.6	U.S. Manufacturing. LICENSEE agrees to comply with the applicable
                                         requirements of 35 U.S.C. § 204 “Preference for United States Industry”,
                                         as amended, or any successor statutes or regulations.

 

		2.7	MSK shall (or as the case shall be shall arrange for MIT to) from
                                         time to time transfer to LICENSEE, at LICENSEE’s sole cost and expense, such items
                                         of Know-How as may be mutually agreed, provided however that any transfer of Know-How
                                         from MIT is subject to MIT’s prior written consent, which consent it may withhold
                                         in its sole discretion..

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

    11

     

    

 

ARTICLE 3 - SUBLICENSES

 

		3.1	LICENSEE shall have the unrestricted right to grant sublicenses
                                         of its rights granted under Section 2.1; provided that each sublicense is in writing
                                         and:

 

		(a)	within [****] of granting any such sublicense LICENSEE shall
                                         notify MSK of such grant and the name and address of each such Sublicensee and furnish
                                         a complete copy of all agreements between it and the Sublicensee;

 

		(b)	the sublicense is at royalty rates [****] required to be paid
                                         to MSK under this Agreement pursuant to Section 5.1(c);

 

		(c)	the sublicense agreement shall not contain any provision which
                                         would permit it to extend beyond the term of this Agreement with regard to the Patent
                                         Rights licensed hereunder;

 

		(d)	the sublicense agreement shall disclaim all representations,
                                         warranties, indemnities and liability on the part of MSK and MIT;

 

		(e)	the sublicense agreement shall not grant any rights to the Patent
                                         Rights and Know-How which are inconsistent with the rights granted to, and the obligations
                                         of, LICENSEE hereunder;

 

		(f)	LICENSEE further agrees that any sublicenses granted by it shall
                                         provide that the obligations to MSK and MIT, as applicable, of [****] of this Agreement
                                         shall be binding upon the Sublicensee as if it were a party to this Agreement.

 

		(g)	Any act or omission of any Sublicensee which would constitute
                                         a material breach of said clauses if performed by LICENSEE shall be deemed to be a breach
                                         by LICENSEE of this Agreement, and MSK shall have the right to terminate the Agreement
                                         pursuant to Section 16.2 unless the breach is cured, or the sublicense to the offending
                                         Sublicensee is terminated, within the [****] notice period set forth in Section 16.2.
                                         LICENSEE shall provide MSK, within [****] of occurrence, copies of any agreement modifying
                                         or terminating a sublicense, or any other agreements with a Sublicensee.

 

		3.2	Any subcontractor engaged by LICENSEE to perform for LICENSEE any
                                         of its rights and obligations under this Agreement (a “Third Party Subcontractor”)
                                         shall be party to a written agreement consistent with the terms and conditions of this
                                         Agreement, including without limitation, and as applicable, those provisions pertaining
                                         to confidentiality, intellectual property rights, and regulatory/safety matters. In all
                                         cases, LICENSEE remains fully responsible (i) for the performance of its obligations
                                         hereunder regardless of whether such performance has been delegated to a Third Party
                                         Subcontractor, and (ii) for the actions and conduct of the Third Party Subcontractor
                                         in performance of LICENSEE’s obligations.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

    12

     

    

 

		3.3	LICENSEE may grant a Sublicensee the right to grant further sublicenses
                                         provided that the requirements and conditions applicable to the grant of a sublicense
                                         shall apply to such grant. Such sub-sublicense agreements shall be treated as sublicense
                                         agreements and such sub-Sublicensees shall be treated as Sublicensees for the purpose
                                         of this Agreement.

 

ARTICLE 4 - DILIGENCE

 

		4.1	LICENSEE and its Sublicensees shall use Commercially Reasonable
                                         Efforts to bring Licensed Products and/or Licensed Services to market and to continue
                                         Commercially Reasonable Efforts to market one or more Licensed Products and/or Licensed
                                         Services throughout the Term. Furthermore, in the event LICENSEE terminates the Sponsored
                                         Research Agreement (other than termination for breach by MSK) and fails to prove to MSK
                                         that LICENSEE is diligently pursuing development of Licensed Products and/or Licensed
                                         Services, MSK shall have the right to terminate this Agreement for breach. LICENSEE shall
                                         use Commercially Reasonable Efforts to develop Licensed Products and Licensed Services
                                         for use in all applications defined in the Field of Use, including, but not limited to,
                                         pediatric indications, and to form strategic partnerships through sublicenses to exploit
                                         such clinical markets. In the event that within [****] of the Effective Date, LICENSEE
                                         has failed to sublicense Patent Rights to a bona fide strategic partner for a particular
                                         clinical field or additional application claimed in Patent Rights (including but not
                                         limited to [****]) or has failed to prove to MSK that LICENSEE is diligently pursuing
                                         development of such additional field(s) and FDA approval for such clinical fields
                                         or additional applications, including development of the Licensed Products and Licensed
                                         Services for pediatric indications, as shown by written records, such clinical field
                                         or additional application shall automatically be excluded from the Field of Use, and
                                         MSK shall be free to grant licenses to others for Licensed Products and/or Licensed Services
                                         within such excluded field. Without limiting the foregoing: LICENSEE shall meet the following
                                         Milestone Activities on or prior to the Expected Completion Date listed below:

 

	Milestone
    Activity	 	Expected

    Completion Date
	Dosing
    of first subject with first Licensed Product directed at the [****] target	 	within
    [****] of Effective Date
	Dosing
    of first subject with first Licensed product directed at the [****] target	 	within
    [****] of Effective Date
	Dosing
    of first subject with first Licensed Product directed at the [****] target	 	within
    [****] of Effective Date
	PhII
    1st dose with first Licensed Product directed at the [****] target	 	within
    [****] of Effective Date
	PhII
    1st dose with first Licensed product directed at the [****] target	 	within
    [****] of Effective Date
	PhII
    1st dose with first Licensed Product directed at the [****] target 	 	within
    [****] of Effective Date
	PhIII
    1st dose with first Licensed Product directed at the [****] target	 	within
    [****] of Effective Date
	PhIII
    1st dose with first Licensed product directed at the [****] target	 	within
    [****] of Effective Date
	PhIII
    1st dose with first Licensed product directed at the [****] target 	 	within
    [****] of Effective Date
	FDA
    approval:	 	 
	First
    Orphan indication	First
    Licensed Product directed at the [****] target	within
    [****] of Effective Date
	 	First
    Licensed product directed at the [****] target	within
    [****] of Effective Date
	 	First
    Licensed Product directed at the [****] target	within
    [****] of Effective Date
	First
    Non-orphan indication	First
    Licensed Product directed at the [****] target	within
    [****] of Effective Date
	 	First
    Licensed product directed at the [****] target	within
    [****] of Effective Date
	 	First
    Licensed Product directed at the [****] target	within
    [****] of Effective Date

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    13

     

    

 

Milestone Activities may be modified and Expected
Completion Dates extended with MSK’s prior written approval.

 

In the event LICENSEE fails to achieve any Milestone
Activities on or prior to the Expected Completion Date above, the license granted hereunder shall automatically exclude the target
for a Milestone Activity that was not completed on or prior to the Expected Completion Date. If LICENSEE’s failure to meet
its diligence obligations under this Agreement is due to circumstances that, in MSK’s institutionally reasonable judgment,
LICENSEE could not reasonably have avoided and LICENSEE can demonstrate that it has made Commercially Reasonable Efforts to achieve
such Milestone Activity on or prior to the allotted Expected Completion Date, then such Milestone Activity Expected Completion
Date shall be extended for a commercially reasonable period of time not to exceed [****]. Such circumstances may include technical
difficulties or delays in preclinical or clinical studies or regulatory processes, as well as other conditions beyond the control
of LICENSEE, including the occurrence of any Force Majeure Event (as defined herein), but shall not include inability of LICENSEE
to obtain funding.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    14

     

    

 

(a)          LICENSEE
agrees to give MSK written notice and evidence within [****] of the achievement of each of the above specific diligence obligations.

 

(b)          LICENSEE
will have delivered to MSK prior to the execution of this Agreement, its detailed business plan for the development of the Licensed
Rights (attached as Exhibit C to this Agreement), including, for example, relevant schedules of capital investments needed
to implement the plan, financial, equipment, facility plans, number and kind of personnel and time planned for each phase of development
of the Licensed Rights for a [****] period, to the extent formed by LICENSEE. LICENSEE shall provide similar reports to MSK annually
to relay update and status information on LICENSEE's business, research and development progress, including projections of activity
anticipated for the next reporting year.

 

(c)          LICENSEE
will be solely responsible, at LICENSEE’s sole cost and expense, for securing all Regulatory Approval necessary for commercial
sale of Licensed Products or provision of Licensed Services. MSK will provide reasonable cooperation through providing LICENSEE,
upon LICENSEE’s reasonable written request and in a timely fashion, with copies of such documentation and information Controlled
by MSK that are reasonably necessary to secure such Regulatory Approval, provided that LICENSEE shall reimburse MSK for the reasonable
expenses of providing such documentation and information. LICENSEE shall advise MSK, through annual reports described in Section 4.1(b) above,
of its program of development for obtaining said approvals.

 

		4.2	If LICENSEE is the subject of an inquiry or inspection by a Regulatory
                                         Authority or other governmental authority or certification agency in relation to any
                                         Licensed Product, LICENSEE will notify MSK as soon as reasonably possible and keep MSK
                                         reasonably apprised of the results of such inquiry or inspection.

 

ARTICLE 5 - PAYMENTS

 

		5.1	For the rights, privileges and licenses granted hereunder, LICENSEE
                                         shall pay to MSK, in the manner hereinafter provided, until the end of the Term:

 

(a)          LICENSEE
shall pay to MSK a license issue fee of [****] due within [****] after the Effective Date. Such fee shall be nonrefundable and
non-creditable against any other obligations hereunder.

 

(b)          Equity:

 

(i)           Within
[****] of the Effective Date, LICENSEE shall issue to MSK and MIT, to be divided between them as directed by MSK, shares of common
stock equal to [****].

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    15

     

    

 

(ii)          Within
[****] of the date which is [****] after the Effective Date, LICENSEE shall issue to MSK and MIT, to be divided between them as
directed by MSK, shares of common stock equal to [****].

 

(iii)         Within
[****] of the date which is [****] after the Effective Date, LICENSEE shall issue to MSK and MIT, to be divided between them as
directed by MSK, shares of common stock equal to [****].

 

(iv)         LICENSEE’s
stock shall be valued at the average closing price on the NASDAQ Global Select Market over the [****] period that ends [****]
before the deadline for issuance.

 

(v)          LICENSEE
may discharge its obligations under each of 5.1(b)(i), 5.1(b)(ii), or 5.1(b)(iii), with [****] advance notice to MSK, by paying
MSK in each case [****] instead of issuing shares of common stock.

 

For clarity, LICENSEE’s obligations under this
Section 5.1 shall survive termination of this Agreement unless it is terminated by LICENSEE for material breach by MSK. Details
concerning equity are provided in the separate equity agreement entered into contemporaneously herewith.

 

(c)          Royalties:

 

(i)           Royalties
on Therapeutic Licensed Products and Therapeutic Licensed Services: Except as provided in paragraphs (iii) and (iv) below,
LICENSEE shall, subject to possible reductions, pay MSK a [****] royalty on cumulative Net Sales of Therapeutic Licensed Products
or Therapeutic Licensed Services up to [****], [****] royalty on cumulative Net Sales of Therapeutic Licensed Products or Therapeutic
Licensed Services in excess of [****] up to [****], and [****] royalty on cumulative Net Sales of Therapeutic Licensed Products
or Therapeutic Licensed Services of over [****] – all the foregoing to be paid and to be calculated on a Therapeutic Licensed
Product-by-Therapeutic Licensed Product or Therapeutic Licensed Service-by-Therapeutic Licensed Service basis. If LICENSEE is
entitled to a reduction of the royalty rates pursuant to paragraphs (vi) or (viii) below, such reductions shall not
reduce the above royalty rates to less than [****], respectively. [****]

 

(ii)          Royalties
on Diagnostic Licensed Products and Diagnostic Licensed Services: LICENSEE shall pay, subject to possible reductions, MSK a [****]
royalty on cumulative Net Sales of Diagnostic Licensed Products or Diagnostic Licensed Services up to [****], [****] royalty on
cumulative Net Sales of Diagnostic Licensed Products or Diagnostic Licensed Services in excess of [****] up to [****], and [****]
royalty on cumulative Net Sales of Diagnostic Licensed Products or Diagnostic Licensed Services of over [****] – all of
the foregoing to be paid and to be calculated on a Diagnostic Licensed Product-by-Diagnostic Licensed Product or Diagnostic Licensed
Service-by-Diagnostic Licensed Service basis. Royalties on Diagnostic Licensed Products and Diagnostic Licensed Services are not
subject to reductions under 5.1(c)(viii). If a Licensed Product is both a Therapeutic Licensed Product and a Diagnostic Licensed
Product, or if a Licensed Service is both a Therapeutic Licensed Service and a Diagnostic Licensed Service, it shall be regarded
as a Therapeutic License Product or Therapeutic Licensed Service, as the case may be, for the calculation of royalties.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    16

     

    

 

(iii)         Royalties
on Therapeutic Licensed Products directed to a target developed solely by a Sublicensee: For Net Sales of Therapeutic Licensed
Products directed to a target developed solely by a Sublicensee and for which the Net Sales are made by such Sublicensee or its
Affiliate, LICENSEE shall pay MSK [****]. For clarity, this royalty rate is not entitled to a reduction of the royalty rates pursuant
to paragraphs (vi) or (viii) below. If Net Sales of Therapeutic Licensed Products directed to a target developed solely
by a Sublicensee are made by an entity other than such Sublicensee or its Affiliate, LICENSEE shall pay MSK royalties according
to paragraph (iv) below.

 

(iv)         Royalties
on Therapeutic Licensed Products using a targeting antibody construct moiety solely developed by LICENSEE: For Net Sales of Therapeutic
Licensed Products and Therapeutic Licensed Services directed to a target developed solely by LICENSEE, LICENSEE shall pay MSK
a [****] royalty on cumulative Net Sales of Therapeutic Licensed Products or Therapeutic Licensed Services up to [****], [****]
royalty on cumulative Net Sales of Therapeutic Licensed Products or Therapeutic Licensed Services in excess of [****] up to [****],
and [****] royalty on cumulative Net Sales of Therapeutic Licensed Products or Therapeutic Licensed Services of over [****] –
all the foregoing to be paid and to be calculated on a Therapeutic Licensed Product-by-Therapeutic Licensed Product or Therapeutic
Licensed Service-by-Therapeutic Licensed Service basis. If LICENSEE is entitled to a reduction of the royalty rates pursuant to
paragraphs (vi) or (viii) below, such reductions shall not reduce the above royalty rates to less than [****], respectively.
For clarity, “cumulative” refers to the lifetime of the Royalty Term.

 

(v)          Intentionally
omitted.

 

(vi)         On
a country-by-country and Licensed Product-by-Licensed Product or Licensed Service-by-Licensed Service basis, if the Patent Rights
expire prior to the end of the Royalty Term such that the Licensed Product or Licensed Service is no longer covered by a Valid
Claim in such country, the royalty rates above due to MSK after expiration of the Patent Rights shall be reduced by [****].

 

(vii)        If
the Licensed Products or Licensed Services are not and were never covered by a Valid Claim, the royalty rates above due for such
Licensed Products or Licensed Services shall be [****]. This royalty rate shall not be subject to further reductions under (viii) immediately
below.

 

(viii)       In
the event that LICENSEE or Sublicensees are legally required to obtain any additional licenses from one or more third parties
in order to make, have made, use, lease, offer to sell, sell and/or import Therapeutic Licensed Products or provide Therapeutic
Licensed Services, and such license(s) require LICENSEE to make reasonable payments to one or more third parties, LICENSEE
may offset a total of [****] of such third-party payments against any royalty payments that are due to MSK in the same Contract
Half-Year.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    17

     

    

 

(ix)         Annual
minimum royalty payments, due at each anniversary of the Effective Date, starting [****] after the Effective Date, in the amount
of [****] per Royalty Year, and [****] once a patent within the Licensed Rights has issued. The minimum royalty payments shall
be nonrefundable but fully creditable against the earned royalty payments required in Section 5.1(c) and may be carried
forward until such credit is fully applied.

 

(x)           No
multiple royalties shall be payable because any Licensed Product or Licensed Service, its manufacture, use, lease, sale or provision
is or shall be covered by more than one of the Licensed Rights granted under this Agreement.

 

Royalties shall be payable twice each year, once
for each Contract Half-Year.

 

(d)          Development
Milestones: Milestones are due for each Licensed Product where development was initiated by LICENSEE and/or where the target is
covered by a Valid Claim. For clarity, if a Sublicensee provides its own antibody for targeting and the resulting Therapeutic
Licensed Product is not covered by a Valid Claim, no additional milestone payments are due. Milestone payments are as follows:

 

	Milestone
    Event	Therapeutic
    Licensed

    Product	Milestone

    Payment	Milestone
    Payment due

    at the earlier of 

    completion of Milestone

    Activity or date indicated

    below
	Dosing
    of first subject with first Therapeutic Licensed Product	1st
    Therapeutic Licensed Product	[****]
    	within
    [****] of Effective Date
	Dosing
    of first subject with second Therapeutic Licensed Product	2nd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	Dosing
    of first subject with third Therapeutic Licensed Product	3rd
    Therapeutic Licensed Product	[****]	within  [****]
    of Effective Date
	PhII
    1st dose with first Therapeutic Licensed Product	1st
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	PhII
    1st dose with second Therapeutic Licensed Product	2nd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	PhII
    1st dose with third Licensed Product	3rd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	PhIII
    1st dose with first Therapeutic Licensed Product	1st
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	PhIII
    1st dose with second Therapeutic Licensed Product	2nd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	PhIII
    1st dose with third Therapeutic Licensed Product	3rd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	FDA
    approval:	 	 	 
	First
    Orphan indication	1st
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	 	2nd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	 	3rd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	 	 	 	 
	First
    Non-orphan indication	1st
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	 	2nd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date
	 	3rd
    Therapeutic Licensed Product	[****]	within
    [****] of Effective Date

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    18

     

    

 

	Milestone
    Event	Diagnostic
    Licensed

    Product	Milestone

    Payment	Milestone
    Payment due

    at the earlier of 

    completion of Milestone

    Activity or date indicated

    below
	PhII
    1st dose with first Diagnostic Licensed Product	1st
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	PhII
    1st dose with second Diagnostic Licensed Product	2nd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	PhII
    1st dose with third Diagnostic Licensed Product	3rd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	PhIII
    1st dose with first Diagnostic Licensed Product	1st
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	PhIII
    1st dose with second product	2nd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	PhIII
    1st dose with third Diagnostic Licensed Product	3rd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	FDA
    approval:	 	 	 
	First
    Orphan indication	1st
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	 	2nd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	 	3rd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	 	 	 	 
	First
    Non-orphan indication	1st
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	 	2nd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date
	 	3rd
    Diagnostic Licensed Product	[****]	within
    [****] of Effective Date

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    19

     

    

 

In the event that a specified clinical trial Phase
is skipped (e.g., proceeding directly to Phase III from Phase I, or filing an application for Regulatory Approval after a Phase
II trial), or two Phases are combined (e.g., a Phase II/III trial), the milestone shall be achieved and due for both events (the
Phase that was skipped or the sum of the milestones for the combined trials) such that the total milestone payments are not reduced.

 

For the avoidanceof doubt, the Parties recognize
that the milestone events for Diagnostic Licensed Products may not correspond to the regulatory approval pathway for such products,
and in part for that reason have provided the time-based dates for such products.

 

(e)          Sales
Milestones: The following milestones are payable once upon reaching the indicated cumulative Net Sales amounts:

 

	Sales
    Milestone	Licensed
    Product	Cumulative
    Net Sales
	Upon  Net
    Sales of Therapeutic Licensed Products  of [****]	All
    Therapeutic Licensed Products	[****]
	Upon  Net
    Sales of Therapeutics Licensed Products of [****]	1st
    Therapeutic Licensed Product	[****]
	 	Second
    Therapeutic Licensed Product	[****]
	 	Third
    Therapeutic Licensed Product	[****]
	Upon
    Net Sales of Diagnostic Licensed Products of [****]	All
    Diagnostic Licensed Products	[****]
	Upon  Net
    Sales of Diagnostic Licensed Products of [****]	1st
    Diagnostic Licensed Product	[****]
	 	Second
    Diagnostic Licensed Product	[****]
    
	 	Third
    Diagnostic Licensed Product	[****]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    20

     

    

 

(f)           Sublicensing
Income in addition to royalties on Net Sales:

 

If revenue is generated through the sublicense of
Licensed Rights involving antibody targets provided with the Licensed Rights, the following shall apply: LICENSEE shall pay MSK
a sublicense fee of [****] on any revenue generated in a transaction or series of related transactions including a sublicense
of Licensed Rights to a third party prior to dosing a patient in a clinical trial, [****] on any revenue generated through sublicense
of Licensed Rights to a third party after entering into a Phase I Trial, [****] on any revenue generated through sublicense of
Licensed Rights to a third party after entering into a Phase II Trial, [****] on any revenue generated through sublicense of Licensed
Rights to a third party after entering into a Phase III Trial, [****] on any revenue generated through sublicense of Licensed
Rights to a third party after submission of a marketing application, and [****] on any revenue generated through sublicense of
Licensed Rights to a third party after commencing commercialization of said Licensed Product or Licensed Service, excluding amounts
paid by Sublicensee to LICENSEE for Net Sales of Licensed Products or Licensed Services and patent cost reimbursement. Determination
of which percent sharing applies shall be made on a product-by-product or process-by-process basis if a bona fide allocation between
or among a plurality of Licensed Products or Licensed Services has been made in such transaction with the portions allocated to
each equaling the entire revenue generated in the transaction or series of related transactions, and; otherwise, the highest applicable
percent shall apply. For clarity, this provision shall apply for both Therapeutic and Diagnostic Licensed Products.

 

If revenue is generated through the sublicense of
Licensed Rights involving antibody targets generated by LICENSEE, the following shall apply: LICENSEE shall pay MSK a sublicense
fee of [****] on any revenue generated in a transaction or series of related transactions including a sublicense of Licensed Rights
to a third party prior to dosing a patient in a clinical trial, [****] on any revenue generated through sublicense of Licensed
Rights to a third party after entering into a Phase I Trial, [****] on any revenue generated through sublicense of Licensed Rights
to a third party after entering into a Phase II Trial, [****] on any revenue generated through sublicense of Licensed Rights to
a third party after entering into a Phase III Trial, [****] on any revenue generated through sublicense of Licensed Rights to
a third party after submission of a marketing application, and [****] on any revenue generated through sublicense of Licensed
Rights to a third party after commencing commercialization of said Licensed Product or Licensed Service, excluding amounts paid
by Sublicensee to LICENSEE for Net Sales of Licensed Products or Licensed Services and patent cost reimbursement. Determination
of which percent sharing applies shall be made on a product-by-product or process-by-process basis if a bona fide allocation between
or among a plurality of Licensed Products or Licensed Services has been made in such transaction with the portions allocated to
each equaling the entire revenue generated in the transaction or series of related transactions, and; otherwise, the highest applicable
percent shall apply. For clarity, this provision shall apply for both Therapeutic and Diagnostic Licensed Products.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    21

     

    

 

For clarity, the breakpoints for different percentage
sharing of sublicense revenue above that refer to stages of development apply to the point at which the sublicense occurs, not
the point(s) at which the consideration is received.

 

If LICENSEE receives any consideration from or on
behalf of a Sublicensee in any transaction or series of transactions that include the grant of a sublicense hereunder or otherwise
constitutes the counterparty as a Sublicensee (“Sublicensing Income”), and the sublicense includes Licensed Rights
without any target binding domains generated by LICENSEE or antibody targets included in the Licensed Rights, LICENSEE shall share
[****] of such payments with MSK. The value of debt or equity investments by Sublicensee to LICENSEE as part of such transactions
may be excluded, but only if such investments are at fair market value (and in the case of loans, not forgiven) and if the transaction
is not structured such that said exclusions reduce any payment otherwise due to MSK. If consideration to LICENSEE that is subject
to sharing with MSK under this section is in a form other than cash, the fair market value of such noncash consideration shall
be used in calculating the amount due MSK, unless MSK agrees in writing to a different method.

 

For the avoidance of doubt, the payments under this
section are in addition to, and not in lieu of, royalties on Net Sales and milestone payments.

 

(g)          Research
Funding: LICENSEE shall provide research funding to [****] lab at MSK (or a successor lab reasonably acceptable to the LICENSEE
at MSK if [****] lab at MSK is no longer operating) equaling up to a total of [****] including overhead over [****] years immediately
following the Effective Date of this Agreement in accordance with the budget generated by MSK to be incorporated into the Sponsored
Research Agreement.

 

(h)          Scope
and use of such research shall be agreed upon and defined in a separate Sponsored Research Agreement that will be attached to
this Agreement as Exhibit D.

 

For clarity, although separate agreements between
the Parties provide the specific terms for paragraphs (g) – (h) above, part of the consideration from LICENSEE
to MSK for this Agreement are those agreements, and a material breach by LICENSEE of its obligations under those agreements shall
be deemed to be a breach of this Agreement as well.

 

(i)           Priority
Review Voucher: LICENSEE will use Commercially Reasonable Efforts to assess the possibility of obtaining a priority review vouchers
(“PRVs”) under Section 908 of the FDA Safety and Innovation Act and will diligently pursue such PRVs for each
product developed.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    22

     

    

 

Should LICENSEE be awarded such a PRV for a Licensed
Product, LICENSEE shall distribute to MSK [****] of income generated from the sale of any such PRV or the sale of other comparable
incentive provided by any non-US jurisdiction.

 

The Parties agree that the LICENSEE shall diligently
seek to sell any PRV or other comparable incentive provided by any non-US jurisdiction unless the Parties agree otherwise in writing.

 

		5.2	Payment Terms: Payments shall be payable [****] after they are
                                         due, paid in United States dollars in New York, NY, or at such other place as MSK may
                                         reasonably designate consistent with the laws and regulations controlling in any foreign
                                         country, but not in any other currency. If any currency conversion shall be required
                                         in connection with the payment of royalties hereunder, such conversion shall be made
                                         by using the exchange rate prevailing at the JP Morgan Chase Bank on the last business
                                         day of the Contract Half-Year reporting period to which such royalty payments relate.
                                         The License Fee due under Section 5.1 (a) above and the past patent costs due
                                         under Section 7.1 below shall be due within [****] after the Effective Date, and
                                         if such payments are not timely received, this Agreement shall be null, void and without
                                         effect.

 

		5.3	Interest: LICENSEE shall pay to MSK interest on any amounts not
                                         paid when due. Such interest will accrue from the [****] after the payment was due, at
                                         a rate of [****] per month or the highest rate permitted by law (whichever is less),
                                         and shall be compounded monthly. The interest payment will be due and payable on the
                                         first day of each month after interest begins to accrue, until full payment of all amounts
                                         due MSK is made. MSK rights to receive such interest payments shall be in addition to
                                         any other rights and remedies available to MSK.

 

		5.4	LICENSEE agrees that it shall not reduce any payments due under
                                         the Agreement as the result of co-ownership interests by LICENSEE or any other third
                                         party in the Patent Rights.

 

ARTICLE 6 - REPORTS AND RECORDS

 

		6.1	LICENSEE shall keep, and shall require its Affiliates and Sublicensees
                                         to keep, full, true and accurate books of account containing all particulars that may
                                         be necessary for the purpose of showing the amounts payable to MSK hereunder. Said books
                                         and records shall be maintained for a period of no less than [****] years following the
                                         period to which they pertain. For the term of this Agreement, upon reasonable written
                                         notice, LICENSEE shall allow MSK or its agents to inspect such books and records for
                                         the purpose of verifying LICENSEE's royalty statement or compliance in other respects
                                         with this Agreement. Such inspections shall be during normal working hours of LICENSEE.
                                         Should such inspection lead to the discovery of a discrepancy greater than [****] and
                                         [****], in reporting to MSK’s detriment, for any twelve (12) month period, LICENSEE
                                         agrees to pay the full cost of such inspection plus interest as stipulated in Article 5.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    23

     

    

 

		6.2	Commercialization Reports:

 

LICENSEE, within [****] of the end of each Contract
Half-Year, shall deliver to MSK true and accurate reports, giving such particulars of the business conducted by LICENSEE and its
Sublicensees during the preceding six-month period under this Agreement.

 

The reports shall include at least the following
information, to be itemized per Licensed Product and/ or Licensed Service:

 

		(a)	volumes, and unique identifiers (e.g., SKU or otherwise), of
                                         Licensed Products sold or otherwise distributed;

 

		(b)	total revenue received on account of (i) Licensed Products
                                         sold or otherwise distributed, and (ii) other revenue bearing activities subject
                                         to payment hereunder;

 

		(c)	Deductible
                                         Expenses (as provided in the definition of “Net Sales”);

 

		(d)	Net
                                         Sales;

 

		(e)	the
                                         portion of Net Sales that was received from Sublicensees;

 

		(f)	total
                                         royalties due;

 

		(g)	country
                                         of sale;

 

		(h)	foreign
                                         currency conversion rate; and

 

		(i)	any
                                         other consideration received in the prior quarter.

 

		6.3	With each such report submitted, LICENSEE shall pay to MSK the
                                         royalties due and payable under this Agreement. If no royalties shall be due, LICENSEE
                                         shall so report.

 

In addition, LICENSEE shall also submit semi-annually
a detailed report summarizing LICENSEE's research, development, commercialization and other business progress during the prior
six (6) months, and its projections of activity anticipated for the next six months (6). Once Regulatory Approval is obtained
for a Licensed Product or Licensed Service in the United States, such reports shall be submitted annually instead of semi-annually.

 

		6.4	Within [****] of the occurrence of any of the milestones set forth
                                         in Section 5.1(d) by or on behalf of LICENSEE, an Affiliate, or Sublicensee,
                                         LICENSEE shall notify MSK of the achievement of such milestone. Milestone payments shall
                                         be paid when due against a duly issued invoices from MSK to LICENSEE.

 

		6.5	LICENSEE shall promptly provide MSK with copies of any royalty
                                         or commercialization reports received by LICENSEE from its Sublicensees.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    24

     

    

 

ARTICLE 7 - PATENT PROSECUTION

 

		7.1	Patent Cost Reimbursement. LICENSEE shall pay during the term of
                                         the Agreement reasonable out-of-pocket expenses borne by MSK for filing, prosecuting
                                         and maintaining Antibody Patent Rights through patent counsel of MSK’s choice,
                                         reasonably acceptable to LICENSEE. MSK may choose, at its sole discretion, to have said
                                         patent counsel invoice LICENSEE directly for costs incurred in the filing, prosecuting
                                         and maintaining of Antibody Patent Rights. LICENSEE shall reimburse MSK for all historic
                                         patent costs related to the Antibody Patent Rights within [****] upon receiving itemized
                                         historic patent costs.

 

Payment of all fees and costs, including attorneys’
fees, relating to the filing, prosecution and maintenance of the MIT Patent Rights (including without limitation interferences,
reexaminations and reissues and defense costs, such as those related to defending the Patent Rights during an inter partes review
by the Patent Trial and Appeal Board) shall be the responsibility of LICENSEE, whether such amounts were incurred before or after
the Effective Date. As of the Effective Date, MIT has incurred approximately [****] for such patent related fees and costs. LICENSEE
shall reimburse all amounts due pursuant to this Section 7.1 within [****] of receipt of an invoice from MIT.

 

All payments due to MIT under
this Agreement shall be made payable to “Massachusetts Institute of Technology” and sent to the address identified
on the invoice received. Each payment should reference this Agreement and identify the obligation under this Agreement that the
payment satisfies. Unless otherwise stated on the invoice, payments sent by wire transfer shall be paid to:

 

[****]

 

All payments due to MIT under this Agreement shall
be drawn on a United States bank and shall be payable in United States dollars. Any payments due to MIT that are not paid on or
before the date such payments are due under this Agreement shall bear interest from the date due, to the extent permitted by law,
at [****] on the last business day of the calendar quarter to which such payment relates.

 

		7.2	MSK shall diligently prosecute and maintain the Antibody Patent
                                         Rights in the United States and in such countries as are determined by MSK and agreed
                                         to by LICENSEE, using counsel of MSK’s choice reasonably acceptable to LICENSEE.
                                         If LICENSEE does not agree to bear the expense of filing or maintaining any patent applications
                                         in any foreign countries in which MSK wishes to obtain patent protection, then MSK may
                                         file and prosecute such applications at its own expense and any license granted hereunder
                                         shall exclude such countries.

 

MIT shall maintain all of the MIT Patent Rights,
and shall give LICENSEE reasonable opportunity to advise MIT on the maintenance of the MIT Patent Rights.

 

		7.3	MSK shall provide LICENSEE with copies of all relevant patent prosecution
                                         documentation so that LICENSEE may be informed and to give LICENSEE reasonable opportunity
                                         to advise MSK on the continuing prosecution, and LICENSEE agrees to keep this documentation
                                         confidential.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    25

     

    

 

		7.4	Patent counsel remains counsel to MSK with an appropriate contract
                                         (and shall not jointly represent LICENSEE unless mutually agreed to in writing by the
                                         Parties).

 

		7.5	The Parties agree that they share a common legal interest in obtaining
                                         valid, enforceable patents and that LICENSEE will maintain confidential all information
                                         received pursuant to this Article 7.

 

		7.6	At any time, LICENSEE shall notify MSK if LICENSEE wishes to terminate
                                         its license to any of the patent applications or patents within the Antibody Patent Rights.
                                         LICENSEE shall identify such patent applications and patents to MSK in writing, in which
                                         event, [****] after receipt of such written notice by MSK, LICENSEE shall have no further
                                         obligation to pay any costs and expenses incurred by MSK for the prosecution and maintenance
                                         of such identified patents and patent applications. For the avoidance of doubt, MSK may
                                         independently, and at its own expense, maintain any such patent applications and patents
                                         after such a termination by LICENSEE, and any license granted hereunder shall exclude
                                         any such patents and patent applications.

 

		7.7	LICENSEE (and its Sublicensees) shall have the right, on a Licensed
                                         Product-by-Licensed Product basis, to select a patent within the Antibody Patent Rights
                                         to seek a term extension for or supplementary protection certificate under in accordance
                                         with the applicable laws of any country. Each Party agrees to execute any documents and
                                         to take any additional actions as the other party may reasonably request in connection
                                         therewith. LICENSEE shall provide MSK with at least[****] prior written notice before
                                         applying for a patent term extension or supplementary protection certificate for any
                                         Licensed Product.

 

ARTICLE 8 - INFRINGEMENT

 

		8.1	Monitoring. LICENSEE shall use Commercially Reasonable Efforts
                                         to monitor third party infringement of the Patent Rights in the Field of Use (an “Infringement”).
                                         LICENSEE shall keep MSK and MIT timely informed of any activities by LICENSEE in regard
                                         hereto. When the term “MSK/MIT” is used in this Article 8, it refers
                                         to both institutions unless only one institution is concerned, i.e., if all patent(s) at
                                         issue are solely owned by one of the institutions, in which case that term refers only
                                         to the concerned instiution.

  

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    26

     

    

 

		8.2	This Section sets forth the rights of enforcement and defense
                                         in relation to the Patent Rights.

 

		(a)	First Right. LICENSEE shall have the first right, but not the
                                         obligation, to take action to enforce the Patent Rights against any Infringement. Prior
                                         to commencing any enforcement action with respect to any Infringement, LICENSEE (i) shall
                                         advise MSK/MIT in writing of LICENSEE’s proposed course of action, (ii) at
                                         MSK/MIT’s request shall meet with MSK/MIT to discuss such proposed course of action,
                                         and (iii) shall consider in good faith the views of MSK/MIT and the potential effects
                                         of enforcement activities on MSK/MIT and the public interest. Should LICENSEE elect to
                                         take action to enforce the Patent Rights against any Infringement, LICENSEE shall first
                                         obtain MSK/MIT’s approval of LICENSEE’s selected counsel to represent LICENSEE
                                         and MSK/MIT, which approval shall not be unreasonably withheld. Once counsel is selected
                                         and approved, LICENSEE shall keep MSK/MIT reasonably informed of the progress of the
                                         enforcement action and shall give MSK/MIT a reasonable opportunity to offer its views
                                         about major decisions affecting the enforcement action or the validity or enforceability
                                         of the Patent Rights. LICENSEE agrees to consider those views in good faith, but shall
                                         have the right to control the action; provided, however, that if LICENSEE fails to defend
                                         in good faith the validity and/or enforceability of the Patent Rights in the action or,
                                         if LICENSEE’s exclusive license to a Valid Claim in the action terminates, MSK/MIT
                                         has the right to take control of the action pursuant to Section 8.2(b). LICENSEE
                                         must obtain MSK/MIT’s written consent before offering or accepting any compromise
                                         or settlement, which consent shall not be unreasonably withheld or delayed. In the event
                                         LICENSEE exercises its right to commence an enforcement action pursuant to this Section 8.2(a),
                                         out of any sums recovered in such suit or in settlement thereof, LICENSEE shall first
                                         reimburse MSK/MIT for any unreimbursed Litigation Expenses (as defined in Section 8.4)
                                         and then may reimburse itself for all litigation costs and expenses, including reasonable
                                         attorneys’ fees, necessarily incurred by LICENSEE in the prosecution of any such
                                         suit. If, after such reimbursement, any funds shall remain from said recovery, then MSK/MIT
                                         shall receive an amount equal to [****] of such funds and the remaining [****] of such
                                         funds shall be retained by LICENSEE.

 

		(b)	Secondary Right. If LICENSEE does not take action to enforce
                                         the Patent Rights against Infringement pursuant to Section 8.2(a), and has not commenced
                                         negotiations with the infringer for the discontinuance of said Infringement, then, within
                                         [****] after notification of the existence of an Infringement has been given to MSK/MIT
                                         pursuant to Section 8.1, MSK/MIT may elect to enforce the Patent Rights against
                                         such Infringement. Upon written request from MSK/MIT, LICENSEE agrees to join as a co-plaintiff
                                         in the action. Should MSK/MIT elect to bring suit against an infringer and LICENSEE is
                                         joined as party plaintiff in any such suit, LICENSEE shall have the right to approve
                                         the counsel selected by MSK/MIT to represent MSK/MIT and LICENSEE, such approval not
                                         to be unreasonably withheld. Any and all expenses, including reasonable attorneys’
                                         fees, incurred by LICENSEE with respect to the prosecution, adjudication and/or settlement
                                         of such suit, including any related appeals, shall be paid for entirely by MSK/MIT and
                                         MSK/MIT shall hold LICENSEE free, clear and harmless from and against any and all such
                                         expenses. MSK/MIT shall not compromise or settle such litigation without the prior written
                                         consent of LICENSEE, which consent shall not be unreasonably withheld or delayed. In
                                         the event MSK/MIT exercises its right to sue pursuant to this Section 8.2(b), it
                                         shall first reimburse itself out of any sums recovered in such suit or in settlement
                                         thereof for all Litigation Expenses . If, after such reimbursement, any funds shall remain
                                         from said recovery, then LICENSEE shall receive an amount equal to [****] of such funds
                                         and the remaining [****] of such funds shall be retained by MSK/MIT.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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		(c)	Joinder. If MSK/MIT is a necessary party under applicable law
                                         to establish standing for the initiation or maintenance of an enforcement action by LICENSEE
                                         under Section 8.2(a), MSK/MIT agrees to join as a co-plaintiff or declaratory judgment
                                         co-defendant in the action, provided that MSK/MIT shall not be the first named plaintiff
                                         or defendant party in such action. In addition, MSK/MIT has the right to elect to participate
                                         as a co-plaintiff in an enforcement action by LICENSEE with respect to any Infringement.
                                         If MSK/MIT elects prior to the initiating pleading to participate as a co-plaintiff,
                                         LICENSEE shall obtain MSK/MIT’s approval of LICENSEE’s selection of jurisdiction
                                         and venue, which approval shall not be unreasonably withheld. If MSK/MIT joins the action
                                         as a party at any time, LICENSEE shall make reasonable efforts to minimize any disruption
                                         to MSK/MIT’s operations resulting from such joinder and participation in the action.

 

		(d)	Own Counsel. Each Party, and MIT as applicable, shall always
                                         have the right to be represented by counsel of its own selection and at its own expense
                                         in any suit for Infringement instituted under this Article 8 by the other Party.

 

		(e)	Declaratory Judgments. If a declaratory judgment action is
                                         brought naming LICENSEE and/or any of its Affiliates or Sublicensees as a defendant and
                                         alleging invalidity or unenforceability of any claims within the Patent Rights, LICENSEE
                                         shall promptly notify MSK/MIT in writing and MSK/MIT may elect, upon written notice to
                                         LICENSEE to take over the sole defense of the invalidity and/or unenforceability aspect
                                         of the action at its own expense.

 

		8.3	Cooperation. Each Party, and MIT as applicable, agrees to cooperate
                                         fully in any action under this Article 8 that is controlled by the other Party,
                                         provided that the controlling Party reimburses the cooperating Party (and MIT, as applicable)
                                         promptly for any costs and expenses incurred by the cooperating Party (and MIT, as applicable)
                                         in connection with providing such assistance.

 

		8.4	Costs, Expenses and Fees. The costs and expenses of any action
                                         the LICENSEE elects to bring to enforce the Patent Rights shall be paid for entirely
                                         by LICENSEE. LICENSEE shall indemnify MSK/MIT and hold MSK/MIT free, clear and harmless
                                         from and against any and all costs, expenses, damages and liability in connection with
                                         any such action, including, without limitation, any and all attorneys’ fees and
                                         other costs, expenses, damages and liability that are incurred by MSK/MIT with respect
                                         to discovery or any other aspect of the prosecution, adjudication, defense, management
                                         and/or settlement of, or joinder to, any such action, including any appeals, remands
                                         or other related proceedings (including related proceedings seeking to challenge the
                                         validity or enforceability of the Patent Rights), or that are awarded against MSK/MIT
                                         as a party to such action (collectively, “Litigation Expenses”). LICENSEE
                                         shall pay for all Litigation Expenses directly; if, however, any Litigation Expenses
                                         are incurred by MSK/MIT, LICENSEE shall reimburse MSK/MIT for all Litigation Expenses
                                         within [****] after receiving an invoice from MSK/MIT for same.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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		8.5	Third Party Patents. In the event LICENSEE is sued for patent infringement
                                         or threatened with such suit, it shall promptly notify MSK. If LICENSEE is permanently
                                         enjoined from exercising its license rights granted hereunder LICENSEE may terminate
                                         this Agreement upon [****] prior written notice to MSK. In any such action, LICENSEE
                                         shall be fully responsible for all its costs, including expenses, judgments and settlements.

 

		8.6	Patent Challenges by LICENSEE. LICENSEE will provide written notice
                                         to MSK and MIT, as applicable, at least [****] prior to LICENSEE or any of its Affiliates
                                         bringing any legal proceeding to challenge the validity or enforceability any claim included
                                         in the Patent Rights (a “Patent Challenge”), including: (a) stating
                                         the basis for such Patent Challenge; and (b) providing a copy of all relevant prior
                                         art or other materials used as the basis for such Patent Challenge. In the event that
                                         LICENSEE brings a Patent Challenge: (i) MSK may at any time thereafter terminate
                                         this Agreement upon written notice to LICENSEE; (ii) during pendency of the Patent
                                         Challenge, all payments due under this Agreement will be doubled; and (iii) in the
                                         event of an unsuccessful Patent Challenge by LICENSEE, (A) LICENSEE shall reimburse
                                         MSK and MIT for all reasonable costs and attorney fees that MSK or MIT incurs in connection
                                         with such Patent Challenge, and (B) starting on the date (if at all) that the Patent
                                         Challenge is determined to be Unsuccessful, all license fees, milestone payments and
                                         royalty rates due as per this Agreement will be trebled. As used herein, “Unsuccessful”
                                         means that, upon the conclusion of the action before the court or other governmental
                                         authority in which the Patent Challenge was brought, LICENSEE failed to obtain a judgment
                                         that all of the patent claims within the Patent Challenge were invalid or unenforceable.
                                         In the event that such a Patent Challenge is successful, LICENSEE will have no right
                                         to recoup any payments made during the Patent Challenge

 

ARTICLE 9 - CONFIDENTIALITY

 

Each Party agrees that Confidential Information of
the other Party disclosed to it or to its employees under this Agreement shall for five (5) years after disclosure:

 

(a)          be
used only in connection with the legitimate purposes of this Agreement;

 

(b)          be
disclosed only to those who have a need to know it in connection with the Agreement, which in the case of Confidential Information
received by MSK includes sharing such Confidential Information with MIT under an obligation of confidentiality between MIT and
MSK; and

 

(c)          be
safeguarded with the same care normally afforded confidential information in the possession, custody or control of the party holding
the Confidential Information but no less than reasonable.

 

(d)          not
be disclosed, divulged or otherwise communicated except with the express written consent of the disclosing party.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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The foregoing shall not apply (i) when, after
and to the extent the Confidential Information is required to be disclosed for minimal compliance with court orders, statutes
or regulations or MSK or LICENSEE audits for compliance with such regulatory requirements, provided that prior to any such disclosure
to the extent reasonably practicable and legally permeable, the Party from whom disclosure is sought shall promptly notify the
other Party and shall afford such other Party the opportunity to challenge or otherwise lawfully seek limits upon such disclosure
of Confidential Information or (ii) to any Confidential Information which the receiving Party can demonstrate by competent
written proof: (a) is now, or hereafter comes, through no act or failure to act on the part of the receiving Party, into
the public domain; (b) is known or controlled by the receiving Party at the time of receiving such information; (c) is
independently developed or discovered by or for the receiving Party by its employees or contractors who did not have access to
the Confidential Information; or (d) is hereafter furnished to the receiving Party by a third party legally entitled to do
so without restriction on disclosure.

 

ARTICLE 10 - INDEMNIFICATION, PRODUCT
LIABILITY

 

		10.1	LICENSEE will indemnify, defend and hold harmless (and cause its
                                         Sublicensees to so indemnify, defend and hold harmless) MSK, MIT, and their respective
                                         trustees, directors, officers, medical and professional staff, faculty, employees, students,
                                         affiliates and agents and their respective successors, heirs, and assigns (each an “Indemnitee”),
                                         against all Third Party Claims (as defined herein) and expenses (including legal expenses
                                         and reasonable attorney’s fees) arising out of the death of or injury to any person
                                         or persons, or out of any damage to property, against any infringement or misappropriation
                                         of intellectual property and against any other claim, proceeding, demand, expense and
                                         liability of any kind whatsoever arising out of or in connection with this Agreement,
                                         or resulting from the production, manufacture, sale, use, lease, consumption, or advertisement
                                         of Licensed Products or Licensed Services hereunder or from a breach by LICENSEE of any
                                         of its representations, warranties or obligations under this Agreement, provided however,
                                         that LICENSEE will not be obligated to indemnify, defend and hold harmless any Indemnitee
                                         against any claim, proceeding, demand, expense, or liability to the extent it arises
                                         out of, results from, or is increased by (a) fraud, the material breach of this
                                         Agreement by MSK, or (b) MSK’s gross negligence or willful misconduct. The
                                         Indemnitees agree to provide LICENSEE with prompt written notice of any claim, suit,
                                         action, demand, or judgment for which indemnification is sought under this Agreement.
                                         LICENSEE agrees, at its own expense, to provide attorneys reasonably acceptable to MSK
                                         and MIT to defend against any such claim. The Indemnitees shall reasonably cooperate
                                         with LICENSEE in such defense and will permit LICENSEE to conduct and control such defense
                                         and the disposition of such claim, suit, or action (including all decisions relative
                                         to litigation, appeal, and settlement); provided, however, that any Indemnitee shall
                                         have the right to retain its own counsel, at the expense of LICENSEE, if representation
                                         of such Indemnitee by the counsel retained by LICENSEE would be inappropriate because
                                         of actual or potential differences in the interests of such Indemnitee and any other
                                         party represented by such counsel. LICENSEE agrees to keep MSK and MIT informed of the
                                         progress in the defense and disposition of such claim and to consult with MSK and MIT
                                         with regard to any proposed settlement. LICENSEE shall not enter into any settlement,
                                         consent judgment, or other voluntary final disposition of any claim on behalf of any
                                         Indemnitee(s) without the prior written consent of MSK and MIT.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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		10.2	For the Term of this Agreement, LICENSEE shall obtain and carry
                                         in full force and effect general liability insurance and, as applicable to LICENSEE’s
                                         performance with respect to the Patent Rights, professional liability insurance, that
                                         shall protect LICENSEE, MSK, and MIT in regard to events covered by Section 10.1
                                         above. Such insurance shall be written by a reputable insurance company, shall list MSK
                                         and MIT as additional named insureds thereunder, shall be include products/completed
                                         operations coverage or LICENSEE shall obtain and maintain product liability coverage
                                         under a separate policy, and shall require [****] written notice to be given to MSK and
                                         MIT prior to any cancellation or material change thereof. The limits of such insurance
                                         shall not be less than [****] per occurrence with an annual aggregate of [****] all such
                                         coverage. Any insurance required hereunder that is underwritten on a per-claims basis
                                         must be maintained for at least [****] following the termination of this Agreement. LICENSEE
                                         shall provide MSK with Certificates of Insurance evidencing the same and provide MSK
                                         with prior written notice of any material change in or cancellation of such insurance.
                                         Notwithstanding the foregoing, products/completed operations coverage and errors and
                                         omissions coverage, as described above, shall be in place at least [****] prior
                                         to: (a) the use, operation, demonstration, or testing of any Licensed Product or
                                         Licensed Service by LICENSEE or a third party at the premises of any third party that
                                         is not subject to a contractual indemnity extending protection to MSK and MIT or (b) the
                                         first distribution, sale, lease, or transfer of a Licensed Product or first performance
                                         of a Licensed Service for a third party.

 

		10.3	This Agreement and the licenses granted herein shall immediately
                                         and automatically terminate without notice in the event LICENSEE or its Sublicensees
                                         or any other party acting under authority of LICENSEE, fails to obtain the insurance
                                         required under Section 10.2, or if the insurance lapses or is cancelled. A termination
                                         occurring under this paragraph shall occur and become effective at the time such insurance
                                         coverage ends or becomes required and is not obtained, and LICENSEE or its Sublicensees
                                         shall then have no right to complete production and sale of Licensed Products or perform
                                         Licensed Services. Nothing herein shall be construed to release either party from any
                                         obligation that matured prior to the effective date of such termination. Notwithstanding
                                         the foregoing, in the [****] period subsequent to the date of such an automatic termination
                                         of this Agreement by operation of this paragraph, to the extent that such rights are
                                         still available for licensing, LICENSEE shall have the right to reinstate the effectiveness
                                         of this Agreement by obtaining the required insurance, whereupon this Agreement shall
                                         automatically become effective as of the date of reinstatement of said insurance, and
                                         shall remain in full force and effect without any further action of the parties.

 

		10.4	MSK shall at all times during the term of this Agreement and thereafter,
                                         indemnify LICENSEE and its Affiliates, and its/their respective directors, managers,
                                         officers, employees, representatives and agents (the “LICENSEE Indemnitees”),
                                         against any and all damages and judgments (including settlements) on claims brought by
                                         third parties (a “Third Party Claim”) on account of the (i) the development,
                                         manufacture, sale, promotion, marketing or use of Licensed Products or MSK products,
                                         in or outside the Territory, by MSK or its Affiliates or sublicensees (other than LICENSEE
                                         or its Affiliates or Sublicensees) or their respective customers (including products
                                         liability claims), or (ii) the exercise of rights retained by or on behalf of MSK
                                         under this Agreement, including, without limitation, any infringement or third party
                                         personal injury or damage to tangible personal property. The foregoing obligations of
                                         MSK shall not apply to the extent of any losses for which LICENSEE has an obligation
                                         to indemnify MSK pursuant to Section 10.1 For any such losses as to which each Party
                                         has an indemnification obligation pursuant to Sections 10.1 and 10.4, each Party shall
                                         indemnify the other to the extent of the indemnifying Party’s respective fault
                                         (a Party’s fault being defined by those categories for which it must indemnify
                                         the other Party pursuant to Section 10.1 or 10.4) for the losses.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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Notwithstanding anything in this Agreement to the
contrary, (i) the maximum exposure and liability of MSK under this Section 10.4 is [****] by LICENSEE to MSK hereunder,
and (ii) any liability of MSK to pay LICENSEE or LICENSEE Indemnitees under this Section 10.4 shall be [****].

 

		10.5	In the case of a Third Party Claim made by any Person who is not
                                         MIT or a Party to this Agreement (or an Affiliate thereof) as to which a Party (the “Indemnitor”)
                                         may be obligated to provide indemnification pursuant to this Agreement, such Indemnitee
                                         or LICENSEE Indemnitee will notify the Indemnitor in writing of the Third Party Claim
                                         (and specifying in reasonable detail the factual basis for the Third Party Claim and,
                                         to the extent known, the amount of the Third Party Claim) reasonably promptly after becoming
                                         aware of such Third Party Claim; provided, however, that failure to give such notification
                                         will not affect the indemnification provided hereunder except to the extent the Indemnitor
                                         shall have been actually prejudiced as a result of such failure.

 

If a Third Party Claim is made against an Indemnitee
or LICENSEE Indemnitee and the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee or LICENSEE Indemnitee
therefore, the Indemnitor will be entitled, within [****] after receipt of written notice from the Indemnitee or LICENSEE Indemnitee
of the commencement or assertion of any such Third Party Claim, to assume the defense thereof (at the expense of the Indemnitor)
with counsel selected by the Indemnitor and reasonably satisfactory to the Indemnitee or LICENSEE Indemnitee, for so long as the
Indemnitor is conducting a good faith and diligent defense. Should the Indemnitor so elect to assume the defense of a Third Party
Claim, the Indemnitor will not be liable to the Indemnitee or LICENSEE Indemnitee for any legal or other expenses subsequently
incurred by the Indemnitee in connection with the defense thereof; provided, that if under applicable standards of professional
conduct a conflict of interest exists between the Indemnitor and the Indemnitee or LICENSEE Indemnitee in respect of such claim,
such Indemnitee or LICENSEE Indemnitee shall have the right to employ separate counsel (which shall be reasonably satisfactory
to the Indemnitor) to represent such Indemnitee or LICENSEE Indemnitee with respect to the matters as to which a conflict of interest
exists and in that event the reasonable fees and expenses of such separate counsel shall be paid by such Indemnitor; provided,
further, that the Indemnitor shall only be responsible for the reasonable fees and expenses of one separate counsel for such Indemnitee
or LICENSEE Indemnitee. If the Indemnitor assumes the defense of any Third Party Claim, the Indemnitee or LICENSEE Indemnitee
shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel
employed by the Indemnitor. If the Indemnitor assumes the defense of any Third Party Claim, the Indemnitor will promptly supply
to the Indemnitee or LICENSEE Indemnitee copies of all correspondence and documents relating to or in connection with such Third
Party Claim and keep the Indemnitee or LICENSEE Indemnitee informed of developments relating to or in connection with such Third
Party Claim, as may be reasonably requested by the Indemnitee or LICENSEE Indemnitee (including, without limitation, providing
to the Indemnitee or LICENSEE Indemnitee on reasonable request updates and summaries as to the status thereof). If the Indemnitor
chooses to defend a Third Party Claim, all Indemnitees or LICENSEE Indemnitees shall reasonably cooperate with the Indemnitor
in the defense thereof (such cooperation to be at the expense, including reasonable legal fees and expenses, of the Indemnitor).
If the Indemnitor does not elect to assume control of the defense of any Third Party Claim within the [****] period set forth
above, or if such good faith and diligent defense is not being or ceases to be conducted by the Indemnitor, the Indemnitee or
LICENSEE Indemnitee shall have the right, at the expense of the Indemnitor, after [****] notice to the Indemnitor of its intent
to do so, to undertake the defense of the Third Party Claim for the account of the Indemnitor (with counsel selected by the Indemnitee
or LICENSEE Indemnitee, as the case may be), and to compromise or settle such Third Party Claim, exercising reasonable business
judgment.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    32

     

    

 

If the Indemnitor acknowledges in writing its obligation
to indemnify the Indemnitee or LICENSEE Indemnitee for a Third Party Claim, the Indemnitee or LICENSEE Indemnitee will agree to
any settlement, compromise or discharge of such Third Party Claim that the Indemnitor may recommend that by its terms obligates
the Indemnitor to pay the full amount of Losses (whether through settlement or otherwise) in connection with such Third Party
Claim and unconditionally and irrevocably releases the Indemnitee or LICENSEE Indemnitee completely from all liability in connection
with such Third Party Claim; provided, however, that, without the Indemnitee or LICENSEE Indemnitee’s prior written consent,
the Indemnitor shall not consent to any settlement, compromise or discharge (including the consent to entry of any judgment),
and the Indemnitee or LICENSEE Indemnitee may refuse in good faith to agree to any such settlement, compromise or discharge, that
provides for injunctive or other non-monetary relief affecting the Indemnitee or LICENSEE Indemnitee. If the Indemnitor acknowledges
in writing its obligation to indemnify the Indemnitee or LICENSEE Indemnitee for a Third Party Claim, the Indemnitee or LICENSEE
Indemnitee shall not (unless required by law) admit any liability with respect to, or settle, compromise or discharge, such Third
Party Claim without the Indemnitor’s prior written consent (which consent shall not be unreasonably withheld).

 

ARTICLE 11 - REPRESENTATIONS, WARRANTIES
AND DISCLAIMERS

 

		11.1	Representations and Warranties of LICENSEE. LICENSEE hereby represents
                                         and warrants to MSK that

 

(a)          LICENSEE
is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite
corporate power and authority to execute and deliver this Agreement;

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    33

     

    

 

(b)          The
execution, delivery and performance of this Agreement by LICENSEE have been duly authorized by all corporate action on the part
of LICENSEE and that LICENSEE has the right to enter into and bind itself to this Agreement;

 

(c)          As
of the Effective Date, the execution and performance of Licensee’s obligations under this Agreement does not conflict with,
cause a default under, or violate any existing contractual obligation that may be owed by Licensee to any third party; and

 

(d)          All
Licensed Products produced under the licenses granted herein will be manufactured in all material respects in accordance with
applicable federal, state and local laws, rules and regulations, including, without limitation, in all material respects
in accordance with all applicable rules and regulations of the USFDA and other Regulatory Authorities.

 

		11.2	Representations and Warranties of MSK. MSK hereby represents and
                                         warrants to LICENSEE that:

 

(a)          MSK
is a not-for-profit corporation duly organized, validly existing and in good standing under the laws of the State of New York
and has all required corporate power and authority to execute and deliver this Agreement;

 

(b)          the
execution, delivery and performance of this Agreement by MSK have been duly authorized by all necessary corporate action on the
part of MSK, and MSK has the right to enter into and bind itself to this Agreement;

 

(c)          as
of the Effective Date, to the best of knowledge of the signatory of this Agreement for MSK and such person’s direct reports,the
execution and performance of MSK’s obligations under this Agreement do not conflict with, cause a default under, or violate
any existing contractual obligation that may be owed by MSK to any third party;

 

(d)          as
of the Effective Date, there is no pending, or to the knowledge of the signatory of this Agreement for MSK and such person’s
direct reports, threatened infringement claim related to any of the Patent Rights granted hereunder.

 

(e)          to
the knowledge of the signatory of this Agreement for MSK and such person’s direct reports, other than [****], which is owned
by MIT, and [****], which is co-owned by MSK and MIT, MSK is the sole and exclusive legal owner of the entire right, title, and
interest in and to all patent applications and issued patents that are part of the Patent Rights, except for the license to and
rights of the United States under 35 U.S.C. § 200 et seq. and related regulations;

 

(f)           to
the knowledge of the signatory of this Agreement for MSK and such person’s direct reports, MSK has, and throughout the Term
will not itself compromise, the right, power and authority to grant the licenses granted hereunder; and

 

(g)          there
are no actions, suits, claims, investigations or proceedings involving MSK pending, or to the best of MSK’s knowledge threatened,
relating to any of the Licensed Rights.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    34

     

    

 

		11.3	Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT,
                                         NEITHER MSK NOR MIT MAKE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, AND HEREBY DISCLAIM
                                         ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
                                         WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF INTELLECTUAL
                                         PROPERTY RIGHTS OF CO-OWNERS OR THIRD PARTIES, VALIDITY, ENFORCEABILITY AND SCOPE OF
                                         PATENT RIGHTS, WHETHER ISSUED OR PENDING, AND THE ABSENCE OF LATENT OR OTHER DEFECTS,
                                         WHETHER OR NOT DISCOVERABLE. IN NO EVENT SHALL EITHER PARTY OR MIT BE LIABLE FOR LOST
                                         PROFITS OR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, INCIDENTAL, OR PUNITIVE DAMAGES
                                         ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, FROM ITS PERFORMANCE OR NONPERFORMANCE
                                         OF ITS OBLIGATIONS UNDER THIS AGREEMENT.

 

ARTICLE 12 - EXPORT CONTROLS

 

It is understood that MSK is subject to United States laws
and regulations controlling the export of technical data, computer software, laboratory prototypes and other commodities (including
the Arms Export Control Act, as amended and the Export Administration Act of 1979), and that its obligations hereunder are contingent
on compliance with applicable United States export laws and regulations. The transfer of certain technical data and commodities
may require a license from the cognizant agency of the United States Government and/or written assurances by LICENSEE that LICENSEE
shall not export data or commodities to certain foreign countries without prior approval of such agency. MSK neither represents
that a license shall not be required nor that, if required, it shall be issued.

 

ARTICLE 13 - NON-USE OF NAMES

 

Neither Party shall use the name of the other Party or MIT,
nor of any of their respective employees, nor any adaptation thereof, in any press release, advertising, promotional or sales
literature without prior written consent obtained from the other Party or MIT, as applicable, in each case. During and after the
term of this Agreement, neither Party shall utilize or register any trademark, service mark, tradename, or other trade identifier
of the other Party or MIT, or that contains (in whole or in part) or is confusingly similar to the foregoing, or is a translation
of any of the foregoing, without the prior express written consent of the other Party or MIT, as applicable. Notwithstanding the
foregoing, with respect to complying with the disclosure requirements of any governmental authority or securities exchange in
connection with any required filing of this Agreement, the Parties shall consult with one another concerning which terms of this
Agreement shall be requested to be redacted in any public disclosure of the Agreement, and in any event each Party shall seek
reasonable confidential treatment for any public disclosure by any such governmental authority or securities exchange. Each Party
shall have the right to issue press releases in regards to this Agreement with the prior written agreement of the other Party
or as required to comply with any law or by the rules of any stock exchange or automated quotation system (in the case of
such required disclosure, by providing [****] notice to the other Party and reasonably considering comments provided by such other
Party within [****] after such notice, or such shorter notice and comment time periods as the disclosing Party may reasonably
require). Notwithstanding the above, each Party may freely disclose in the ordinary course of business (but not in a press release,
except with prior approval) that it has entered into this Agreement, and MIT and MSK may freely use the name of LICENSEE in any
conflict of interest disclosure, including as part of a press release, without prior approval. In addition, as it concerns MIT,
during the term of this Agreement, LICENSEE may make certain factual statements that it has entered into this Agreement with MSK
to license the MIT Patent Rights. Such statements may be made in connection with general company information (e.g., statements
regarding company history or technology background) or in annual shareholder reports or investor presentations; however, no such
statement may be used in advertising or other promotional material or activities or in any manner to suggest or imply MIT’s
endorsement of LICENSEE, its products or its services. Except as specifically permitted herein, LICENSEE shall not otherwise use
or allow the use of the name of “Massachusetts Institute of Technology,” “[****] Laboratory” or any variation,
adaptation, or abbreviation thereof, or of any of its trustees, officers, faculty, students, employees, or agents, or any trademark
owned by MIT, or any terms of this Agreement in any other public announcement or disclosure without the prior written consent
of MIT (via tlo-uon@mit.edu), which consent MIT may withhold in its sole discretion.  In the case of the use of name or likeness
of an individual trustee, officer, faculty, student, employee or agent of MIT, such consent must also come in writing from the
individual.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    35

     

    

 

ARTICLE 14 - PUBLICATION

 

LICENSEE recognizes and accepts that under MSK’s mission
as an academic medical center, MSK and its investigators must have a meaningful right to publish without LICENSEE’s approval
or editorial control. MSK reserves the right to publish the scientific findings from research related to Licensed Rights and clinical
use of Licensed Products and Licensed Services. If any proposed publication (e.g., manuscript, abstract or other public disclosure),
contains Confidential Information of LICENSEE or its Affiliates or Sublicensees or new data that has not be made public before,
MSK will submit the abstract or manuscript to LICENSEE at least [****] before public disclosure thereof, and LICENSEE shall have
the right to review and comment upon the proposed public disclosure in order to protect such Confidential Information and the
patentability of any inventions disclosed therein. Upon LICENSEE's request, public disclosure shall be delayed up to [****] additional
calendar days to enable LICENSEE to secure adequate intellectual property protection of any patentable subject matter contained
therein that would otherwise be affected by the publication.

 

ARTICLE 15 - ASSIGNMENT

 

No Party may assign or delegate any or all of its rights or
obligations under this Agreement, or transfer this Agreement, without the prior written consent of the other Party, except that
(a) either Party shall have the right to assign any of its rights, delegate any of its obligations, or transfer this Agreement
without such consent (i) to an Affiliate or (ii) as part of a merger or acquisition or other transfer of all or substantially
all of the assets of its business to which this Agreement pertains, in each case provided that the assignor remains responsible
for performance and the assignee accepts all terms and obligations of this Agreement, and (b) MSK may without consent of
LICENSEE freely assign all or any portion of the cash payments due under this Agreement to a Third Party. Additionally, LICENSEE
shall, on prior consent of MSK (such consent not to be unreasonably withheld or delayed), be permitted to assign this Agreement
in connection with the sale or transfer of a limited portion of its business to which this Agreement pertains. Except as set forth
herein, any assignment, delegation or transfer by any Party without the consent of the other Party shall be void and of no effect.
For the avoidance of doubt, LICENSEE’s right to assign is conditioned on its assignee’s acceptance of all obligations
of this Agreement, including but not limited to those of Article 18 concerning choice of law and forum.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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ARTICLE 16 - TERMINATION

 

		16.1	Term. This Agreement commences on the Effective Date and shall
                                         remain in effect, until the end of the Term, as provided in Section 1.38, unless
                                         sooner terminated in accordance with the provisions herein.

 

		16.2	Bankruptcy or Cessation/Enjoinder of Business. MSK may terminate
                                         this Agreement upon written notice to LICENSEE if: (a) LICENSEE becomes insolvent;
                                         (b) a petition in bankruptcy is filed against LICENSEE and is consented to, acquiesced
                                         in or remains undismissed for [****]; (c) LICENSEE or makes a general assignment
                                         for the benefit of creditors, or a receiver is appointed for LICENSEE, and LICENSEE does
                                         not return to solvency before the expiration of a [****] period; (d) LICENSEE ceases
                                         to do business; or (e) if the enactment of any law, decree, or regulation, or the
                                         issuance of any order (including, but not limited to, an injunction), by any governmental
                                         authority renders it impracticable or impossible for LICENSEE to perform any of its obligations
                                         hereunder.

 

		16.3	Nonpayment. If LICENSEE fails to pay MSK fees, royalties, ongoing
                                         patent expenses or other amounts payable hereunder, and such payments remain past due
                                         for more than [****], MSK shall have the right to terminate this Agreement on [****]
                                         prior written notice to LICENSEE, unless LICENSEE pays to MSK within the [****] notice
                                         period, all fees, royalties and patent expenses, together with any interest then due
                                         and payable thereon. If LICENSEE after such written notice makes such payment to avoid
                                         termination, and if LICENSEE’s obligation to make such payment was or becomes the
                                         subject of a good faith dispute between the Parties, such payment shall be returned to
                                         LICENSEE by MSK if a final, unappealable judgment in an action commenced within six months
                                         of LICENSEE's making of said payment determines in favor of LICENSEE what such payment
                                         was not owed.

 

		16.4	Criminal Activity. MSK may terminate this Agreement upon [****]
                                         written notice to LICENSEE if LICENSEE is convicted in a final judgment of a felony relating
                                         to the manufacture, use, or sale of Licensed Products in any jurisdiction where LICENSEE
                                         manufactures, uses or sells Licensed Products; provided, no such termination may be made
                                         until any appeal(s) of such conviction are exhausted and only then if such conviction
                                         is not reversed.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    37

     

    

 

		16.5	Breach. In addition to any other termination right specified in
                                         this Agreement, MSK may terminate this Agreement upon [****] prior written notice to
                                         LICENSEE, if LICENSEE materially breaches a provision of this Agreement, unless:

 

(a)          LICENSEE
cures any such breach prior to the expiration of the [****] period; or

 

(b)          LICENSEE
has taken reasonable steps to cure such breach prior to the expiration of the [****] cure period and has demonstrated to MSK’s
reasonable satisfaction that such breach is likely to be cured within a reasonable time thereafter not to exceed [****]; or

 

(c)          before
the end of the [****] cure period, LICENSEE notifies MSK that it has failed to achieve any of the Milestone Activities described
herein within the timeframes specified due to causes that are beyond the reasonable control of LICENSEE (e.g., regulatory action
or delay, low patient enrollment, Force Majeure Event, and/or delays caused by MSK), notwithstanding LICENSEE’s reasonable,
good faith efforts to achieve those Milestone Activities, then LICENSEE will not be deemed in default or breach of this Agreement
and the timeframe for achieving those milestones will be deemed automatically extended by the time of the delay reasonably attributable
to the causes that were beyond LICENSEE’s control as long as LICENSEE diligently and continuously pursues the achievement
of such milestones, but in no event shall such extension be longer than [****].

 

		16.6	Termination by LICENSEE. LICENSEE may terminate this Agreement
                                         in its entirety without cause on [****] notice to MSK; provided, however, once the performance
                                         of marketing, manufacture, sales, distribution and support activities of a Licensed Product
                                         and/ or Licensed Service (“Commercialization”) have commenced, LICENSEE may
                                         terminate this Agreement with such notice only if all Commercialization activities of
                                         LICENSEE, Sublicencees, and their Affiliates have been permanently discontinued.

 

		16.7	Product Sell Off. In the event of expiration or termination of
                                         this Agreement (unless for breach by LICENSEE), LICENSEE and its Sublicensees shall have
                                         the right for [****] thereafter to dispose of all Licensed Products then in its inventory,
                                         contingent upon LICENSEE: (a) providing to MSK an inventory identifying the volumes
                                         of Licensed Products on hand that were manufactured prior to the termination date, certified
                                         and signed by an officer of the LICENSEE; and (b) continuing to submit all reports
                                         and make all payments (including, without limitation, royalties) that would have been
                                         required in accordance with this Agreement, if this Agreement had not terminated.

 

		16.8	Dispute Resolution. The Parties shall negotiate all matters of
                                         joint concern in good faith, with the intention of resolving issues between them in a
                                         mutually satisfactory manner, including, without limitation, the achievement of any Milestone
                                         Activities on or prior to any Expected Completion Date, under Article 4 of this
                                         Agreement. If a disagreement between the Parties cannot be resolved through informal
                                         discussions, it shall be deemed a “Dispute” upon one party (the “Declaring
                                         Party”) declaring, by the delivery of a written notice (the “Notice”)
                                         to the other party, that a Dispute exists. The Notice shall specify the nature and cause
                                         of the Dispute and the action that the Declaring Party deems necessary to resolve the
                                         Dispute. Following receipt of the Notice, the Parties shall use good faith efforts to
                                         resolve the Dispute within [****] of the date of such Notice, including making personnel
                                         with appropriate decision-making authority available to the other Party to discuss resolution
                                         of the Dispute. In the event Dispute cannot be resolved by mutual agreement within such
                                         [****] period, the Parties may, by the election of either Party, submit the Dispute to
                                         non-binding dispute resolution before a mediator expert in the field, selected by mutual
                                         agreement within [****] of a written request for mediation submitted by either Party.
                                         Said mediation shall be held in the County of New York, State of New York, at such place
                                         as shall be mutually agreed upon by the Parties.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

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		16.9	Effect on Sublicensees. All sublicenses, and rights of Affiliates
                                         and Sublicensees, will terminate as of the effective date of termination of this Agreement,
                                         provided, however, that if at the effective date of termination any Sublicensee is in
                                         good standing with regard to its obligations under its sublicense and agrees to assume
                                         the applicable obligations of LICENSEE hereunder, then, at the request of the Sublicensee,
                                         such sublicense shall survive such termination or expiration of this Agreement and be
                                         assigned to MSK with respect to the Licensed Product, Licensed Services, and Licensed
                                         Rights; provided, in such case the obligations of MSK to Sublicensee shall not exceed
                                         the obligations of MSK to LICENSEE under the Agreement.

 

		16.10	Survival. Upon any expiration or termination of this Agreement,
                                         the following shall survive:

 

(a)          any
provision expressly indicated to survive;

 

(b)          any
liability which any Party has already incurred to another Party prior to expiration or termination;

 

(c)          LICENSEE’s
reporting and payment obligations for activities occurring prior to expiration or termination (or pursuant to 16.4 (entitled Product
Sell Off)); and

 

(d)          ARTICLE 1
(entitled Definitions), ARTICLE 9 (entitled Confidentiality, ARTICLE 10 (entitled Indemnification, Product Liability),
ARTICLE 11 (entitled Representations, Warranties and Disclaimers), ARTICLE 13 (entitled Non-Use of Names), ARTICLE 17
(entitled Notices and Other Communications), ARTICLE 18 (entitled Miscellaneous Provisions), Section 5.1(b), Section 16.9
(entitled Effect on Sublicensees), and 16.10 (entitled Survival).

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    39

     

    

 

ARTICLE 17 - NOTICES AND OTHER COMMUNICATIONS

 

Except for payments, each notice or other communication pursuant
to this Agreement shall be sufficiently made or given when delivered by courier or other means providing proof of delivery to
such Party at its address below or as it shall designate by written notice given to the other Party:

 

In the case of MSK:

 

Memorial Sloan-Kettering Cancer Center

Office of Technology Development

 

	 	If by mail:	1275 York Ave., Box 524
	 	 	New York, NY 10065
	 	 	 
	 	If by courier:	600 Third Avenue, 16th floor
	 	 	New York, NY 10016

 

Attn: Senior Vice President, Research and
Technology Development

Tel: 1-212-639-6181 (not for notice)

Fax: 1-212-888-1120 (not for notice)

 

With copies to:

 

Memorial Sloan-Kettering Cancer Center

Office of General Counsel

 

	 	If by mail:	1275 York Ave.
	 	 	New York, NY 10065
	 	 	 
	 	If by courier:	1275 York Ave.
	 	 	New York, NY 10065

 

[****]

 

In the case of LICENSEE:

 

Y-mAbs Therapeutics, Inc.

 

	 	If by mail:	230 Park Avenue,
	 	 	Suite 3350
	 	 	New York, NY 10169
	 	 	 
	 	If by courier:	230 Park Avenue,
	 	 	Suite 3350
	 	 	New York,
	 	 	NY 10169

 

With copies to

 

Duane Morris LLP

230 Park Avenue, Suite 1130

New York, NY 10169

 

Attn: Dwight A. Kinsey

Tel: 1-212-818-9200

Fax: 1-212-818-9606 (not for notice)

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    40

     

    

 

In the case of MIT:

 

Massachusetts Institute of Technology

Technology Licensing Office, Room NE18-501

255 Main Street, Kendall Square

Cambridge, MA 02142-1601

Attention: Director

Tel:        617-253-6966

Fax:        617-258-6790
(not for notice)

 

ARTICLE 18 - MISCELLANEOUS PROVISIONS

 

		18.1	Choice of Law; Choice of Forum. This Agreement shall be construed,
                                         governed, interpreted and applied in accordance with the laws of the State of New York,
                                         without giving effect to any choice/conflict of law principles, except that questions
                                         affecting the construction and effect of any patent shall be determined by the law of
                                         the country in which the patent was filed or granted. The state and federal courts located
                                         in New York County, New York, shall have exclusive jurisdiction of any claims or actions
                                         between or among the parties arising out of or relating to this Agreement, and each Party
                                         consents to venue and personal jurisdiction of those courts for the purpose of resolving
                                         any such disputes.

 

		18.2	Severability. Except to the extent a provision is stated to be
                                         essential, or otherwise to the contrary, the provisions of this Agreement are severable,
                                         and in the event that any provisions of this Agreement shall be determined to be invalid
                                         or unenforceable under any controlling body of the law, such invalidity or unenforceability
                                         shall not in any way affect the validity or enforceability of the remaining provisions
                                         hereof.

 

		18.3	Marking. LICENSEE agrees to legibly mark the Licensed Products
                                         (and packaging, marketing materials, package inserts, patient information leaflets, and
                                         other documentation therefore) sold in the United States with all applicable United States
                                         patent numbers, and other notices relating to MSK’s Patent Rights, such markings
                                         and notices to be in accordance with any written guidelines that may be provided by MSK
                                         from time to time. All Licensed Products shipped to or sold in other countries shall
                                         be marked in such a manner as to conform to the patent laws and practice of the country
                                         of manufacture or sale. In connection with such patent marking, LICENSEE shall also include
                                         a statement that the Licensed Product is made under license from MSK.

 

		18.4	Waiver. The failure of either party to assert a right hereunder
                                         or to insist upon compliance with any term or condition of this Agreement shall not constitute
                                         a waiver of that right or excuse a similar subsequent failure to perform any such term
                                         or condition by the other party.

 

		18.5	Counterparts. This Agreement may be executed in any number of
                                         counterparts and each of such counterparts shall for all purposes be an original and
                                         all such counterparts shall together constitute but one and the same agreement.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    41

     

    

 

		18.6	Force Majeure Event. Neither Party shall lose any rights hereunder
                                         or be liable to the other Party for damages or losses (except for payment obligations)
                                         on account of failure of performance by the defaulting party to the extent such the failure
                                         is occasioned by war, strike, fire, Act of God, earthquake, flood, lockout, embargo,
                                         governmental acts or orders or restrictions (except if imposed due to or resulting from
                                         the Party’s violation of law or regulations), failure of suppliers, or any other
                                         reason where failure to perform is beyond the reasonable control and not caused by the
                                         negligence, intentional conduct or misconduct of the nonperforming party and the nonperforming
                                         Party has exerted all reasonable efforts to avoid or remedy such force majeure (each
                                         a “Force Majeure Event”); provided, however, that in no event shall (a) a
                                         Party be required to settle any labor dispute or disturbance, or (b) a force majeure
                                         excuse performance for a period of more than [****]. For clarity, a failure to obtain
                                         funding shall not constitute a force majeure event.

 

		18.7	Further Assurances. At any time or from time to time on and after
                                         the date of this Agreement, MSK shall at the written request of LICENSEE and at LICENSEE's
                                         expense, execute, and deliver or cause to be delivered, all such consents, documents
                                         or further instruments required by law to register or confirm the licenses granted in
                                         this Agreement.

 

		18.8	The Parties agree that if any data transfer, material transfer
                                         required, or any know-how transfer or training beyond a reasonable amount, LICENSEE shall
                                         reimburse MSK for time and effort spent.

 

		18.9	Entire Agreement. This Agreement, including its attachments and
                                         exhibits (which attachments and exhibits are incorporated herein by reference), constitutes
                                         the entire understanding among and between the parties with respect to the subject matter
                                         hereof, and supersedes all prior agreements and communications, whether written, oral
                                         or otherwise. This Agreement may only be modified or supplemented in a writing expressly
                                         stated for such purpose and signed by the parties to this Agreement.

 

		18.10	Relationship between the Parties. The relationship between the
                                         parties under this Agreement is that of independent contractors. Nothing contained in
                                         this Agreement shall be construed to create a partnership, joint venture or agency relationship
                                         between any of the Parties. No Party is a legal representative of any other party, and
                                         no Party can assume or create any obligation, liability, representation, warranty or
                                         guarantee, express or implied, on behalf of another Party for any purpose whatsoever.

 

		18.11	Construction and Interpretation. Words (including defined terms)
                                         denoting the singular shall include the plural and vice versa. The words “hereof”,
                                         “herein”, “hereunder” and words of the like import when used
                                         in this Agreement shall refer to this Agreement as a whole, and not to any particular
                                         provision of this Agreement. The term “include” (and any variant thereof),
                                         and the giving of examples, shall not be construed as terms of limitation unless expressly
                                         indicated by the context in which they is used. The headings in this Agreement shall
                                         not affect its interpretation. Except as expressly provided herein, the rights and remedies
                                         herein provided shall be cumulative and not exclusive of any other rights or remedies
                                         provided by law or otherwise. Each of the Parties has had an opportunity to consult with
                                         counsel of its choice. Each provision of this Agreement shall be construed without regard
                                         to the principle of contra proferentum. If any provision of this Agreement is held to
                                         be invalid or unenforceable the validity of the remaining provisions shall not be affected.
                                         The parties shall replace the invalid or unenforceable provision by a valid and enforceable
                                         provision closest to the intention of the parties when signing this Agreement. This Agreement
                                         was negotiated, and shall be construed and interpreted, exclusively in the English language.

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    42

     

    

 

		18.11	Method of Payment. Payments may be made by check or wire transfer.
                                         Checks shall be: (a) made payable to Sloan-Kettering Institute for Cancer Research
                                         (Tax I.D. No. [****]); (b) attached to the corresponding invoice (if any);
                                         (c) accompanied with an note (on the check stub or on its transmittal letter) that
                                         the payment relates to Agreement [****] and (d) sent to MSK’s lock-box:

 

Memorial Sloan-Kettering Cancer
Center

P. O. Box 29035

New York, NY 10087-9035

Wire transfers shall be made
as follows:

Bank Name: [****].

Name on Account: [****]

Account Type: [****]

 

[signature page follows]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    43

     

    

 

IN WITNESS WHEREOF, authorized representatives of the Parties
have signed and dated this Agreement below.

 

 

	 	 	Y-MABS THERAPEUTICS, INC.
	 	 	 
	 	 	 
	 	 	By:	/s/ Thomas Gad
	 	 	Name: Thomas Gad
	 	 	Title: Founder, Chairman and President
	 	 	 
	 	 	Date: April 15, 2020
	 	 	 
	 	 	 
	 	 	MEMORIAL SLOAN KETTERING CANCER CENTER
	 	 	 
	 	 	 
	 	 	By:	/s/ Eric Cottington
	 	 	Name:	Eric Cottington, PhD
	 	 	Title:	Senior Vice President
	 	 	Research and Technology Development
	 	 	 
	 	 	Date: April 10, 2020

 

	 	 	 
	MASSACHUSETTS INSTITUTE OF TECHNOLOGY (solely
    with respect to Sections [****] of this Agreement)	 	 
	 	 	 
	 	 	 
	By:	/s/ Lesley Millar- Nicolson	 	 
	Name: Lesley Millar- Nicholson	 	 
	Title: Director, TLO	 	 
	 	 	 
	Date: April 9, 2020	 	 

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    44

     

    

 

Exhibit A

PATENT RIGHTS

 

[****]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    45

     

    

 

Exhibit B

 

Tangible Materials exclusively licensed
hereunder:

 

[****]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    46

     

    

 

Exhibit C

DEVELOPMENT PLAN

 

[****]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    47

     

    

 

Exhibit D

SPONSORED RESEARCH AGREEMENT

 

[****]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 

    48

     

    

 

Exhibit E

LIST OF CERTAIN ANTIBODY PATENT RIGHTS

 

[****]

 

 

[****] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

    49mdwt_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			EXPLANATORY NOTE: [**] INDICATES THE PORTION OF THIS EXHIBIT THAT HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IN PUBLICLY DISCLOSED.
		

		
			 
		

		
			
		

		
			

		 

		

		
			 
		

		
			FUNDS WITHHELD AND FUNDS PAID
		

		
			COINSURANCE AGREEMENT
		

		
			(MYGA and FIA BUSINESS)
		

		
			 
		

		
			between
		

		
			 
		

		
			US ALLIANCE LIFE AND SECURITY COMPANY
		

		
			 
		

		
			and
		

		
			 
		

		
			AMERICAN LIFE & SECURITY CORP.
		

		
			 
		

		
			effective as of January 1, 2020
		

		
			 
		

		
			Treaty Number 002
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			TABLE OF CONTENTS

		

		

			 

		

		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						Page

				
	
					
						ARTICLE I

					
					
						GENERAL PROVISIONS

					
1
				
	
					
						Section 1.01

					
					
						Defined Terms.  

					
1
				
	
					
						Section 1.02

					
					
						Other Definitional Provisions. 

					
6
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE II

					
					
						COVERAGE

					
7
				
	
					
						Section 2.01

					
					
						Scope and Basis of Reinsurance. 

					
7
				
	
					
						Section 2.02

					
					
						Policy Changes. 

					
7
				
	
					
						Section 2.03

					
					
						Reinstatement of Surrendered Policies. 

					
7
				
	
					
						Section 2.04

					
					
						Misstatement of Fact. 

					
8
				
	
					
						Section 2.05

					
					
						Non-Guaranteed Elements. 

					
8
				
	
					
						Section 2.06

					
					
						Crediting Rates.  

					
8
				
	
					
						Section 2.07

					
					
						Programs of Internal Replacement.  

					
8
				
	
					
						Section 2.08

					
					
						RESERVED

					
8
				
	
					
						Section 2.09

					
					
						RESERVED

					
8
				
	
					
						Section 2.10

					
					
						RESERVED

					
8
				
	
					
						Section 2.11

					
					
						Valuation of Liabilities.  

					
8
				
	
					
						Section 2.12

					
					
						Credit For Reinsurance. 

					
9
				
	
					
						Section 2.13

					
					
						Reserved. 

					
9
				
	
					
						Section 2.14

					
					
						Options Budget and Payoff for FIA. 

					
9
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE III

					
					
						REINSURANCE PREMIUMS

					
10
				
	
					
						Section 3.01

					
					
						Reinsurance Premiums.  

					
10
				
	
					
						Section 3.02

					
					
						Initial Settlement Amount. 

					
10
				
	
					
						Section 3.03

					
					
						Funds Paid Conversion. 

					
10
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE IV

					
					
						CEDING COMMISSION

					
10
				
	
					
						Section 4.01

					
					
						Ceding Commission.  

					
10
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE V

					
					
						ADMINISTRATION FEE

					
					
						 

				
	
					
						Section 5.01

					
					
						Policy Expenses.  

					
10
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VI

					
					
						REINSURED LIABILITIES

					
11
				
	
					
						Section 6.01

					
					
						Reinsured Liabilities.  

					
11
				
	
					
						Section 6.02

					
					
						Claims Settlement. 

					
11
				
	
					
						Section 6.03

					
					
						Recoveries.  

					
11
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VII

					
					
						REPORTING AND SETTLEMENTS

					
11
				
	
					
						Section 7.01

					
					
						Ceding Company Reporting. 

					
11
				
	
					
						Section 7.02

					
					
						Reinsurer Reporting. 

					
12
				
	
					
						Section 7.03

					
					
						Settlements & Adjustments. 

					
13
				
	
					
						 

					
					
						 

					
					
						 

				

		 

		

			 

		

		

			TABLE OF CONTENTS
(continued)

		

		

			 

		

	

      

         

      

    	

      

         

      

    	

      

        Page

      

    
	
					
						

					
						ARTICLE VIII

					
					
						 

					
14
				
	
					
						THE TRUST DEPOSIT, THE FUNDS WITHHELD ACCOUNT, AND INVESTMENT MANAGEMENT AGREEMENT

					
14
				
	
					
						Section 8.01

					
					
						Trust Deposit. 

					
14
				
	
					
						Section 8.02

					
					
						Funds Withheld Account. 

					
15
				
	
					
						Section 8.03

					
					
						Reserved. 

					
15
				
	
					
						Section 8.04

					
					
						Investment Management Agreement. 

					
15
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE IX

					
					
						[RESERVED]

					
16
				
	
					
						 

					
					
						 

					
16
				
	
					
						ARTICLE X

					
					
						ADMINISTRATION

					
16
				
	
					
						Section 10.01

					
					
						Policy Administration.  

					
16
				
	
					
						Section 10.02

					
					
						Record-Keeping. 

					
17
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XI

					
					
						TERM AND TERMINATION

					
17
				
	
					
						Section 11.01

					
					
						Duration of Agreement. 

					
17
				
	
					
						Section 11.02

					
					
						Recapture. 

					
17
				
	
					
						Section 11.03

					
					
						Recapture Payment. 

					
18
				
	
					
						Section 11.04

					
					
						Survival.  

					
19
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XII

					
					
						ERRORS AND OMISSIONS

					
19
				
	
					
						Section 12.01

					
					
						Errors and Omissions.  

					
19
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XIII

					
					
						DISPUTE RESOLUTION

					
20
				
	
					
						Section 13.01

					
					
						Negotiation. 

					
20
				
	
					
						Section 13.02

					
					
						Arbitration; Waiver of Trial by Jury. 

					
20
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XIV

					
					
						INSOLVENCY

					
21
				
	
					
						Section 14.01

					
					
						Insolvency. 

					
21
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XV

					
					
						TAXES

					
22
				
	
					
						Section 15.01

					
					
						Taxes.  

					
22
				
	
					
						Section 15.02

					
					
						DAC Tax Election. 

					
22
				
	
					
						Section 15.03

					
					
						US Taxpayer.    

					
23
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XVI

					
					
						REPRESENTATIONS, WARRANTIES AND COVENANTS

					
23
				
	
					
						Section 16.01

					
					
						Representations and Warranties of the Ceding Company.  

					
23
				
	
					
						Section 16.02

					
					
						Covenants of the Ceding Company. 

					
25
				
	
					
						Section 16.03

					
					
						Representations and Warranties of the Reinsurer.  

					
26
				
	
					
						Section 16.04

					
					
						Covenants of the Reinsurer. 

					
27
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XVII

					
					
						MISCELLANEOUS

					
28
				

		 

		

			ii

		

		

			TABLE OF CONTENTS
(continued)

		

		

			 

		

	

      

         

      

    	

      

         

      

    	

      

        Page

      

    
	
					
						

					
						Section 17.01

					
					
						Currency.  

					
28
				
	
					
						Section 17.02

					
					
						Interest.  

					
28
				
	
					
						Section 17.03

					
					
						Right of Setoff and Recoupment. 

					
28
				
	
					
						Section 17.04

					
					
						No Third-Party Beneficiaries.  

					
28
				
	
					
						Section 17.05

					
					
						Amendment.  

					
29
				
	
					
						Section 17.06

					
					
						Notices. 

					
29
				
	
					
						Section 17.07

					
					
						Consent to Jurisdiction.  

					
30
				
	
					
						Section 17.08

					
					
						Service of Process.  

					
30
				
	
					
						Section 17.09

					
					
						Inspection of Records. 

					
30
				
	
					
						Section 17.10

					
					
						Confidentiality. 

					
31
				
	
					
						Section 17.11

					
					
						Successors.  

					
32
				
	
					
						Section 17.12

					
					
						Entire Agreement. 

					
32
				
	
					
						Section 17.13

					
					
						Severability.  

					
32
				
	
					
						Section 17.14

					
					
						Construction.  

					
32
				
	
					
						Section 17.15

					
					
						Non-Waiver.  

					
32
				
	
					
						Section 17.16

					
					
						Further Assurances.  

					
33
				
	
					
						Section 17.17

					
					
						Governing Law.  

					
33
				
	
					
						Section 17.18

					
					
						Counterparts.  

					
33
				

		
			 
		

		
			 
		

		
			Schedules
		

			
					
						I.

					
					
						Policy Forms and Riders

				
	
					
						II.

					
					
						Policy Expenses

				
	
					
						III.

					
					
						Initial Trust Deposit Assets and Funds Withheld Assets

				
	
					
						IV.

					
					
						Permitted Ex-Gratia Payments

				
	
					
						V.

					
					
						Determination of Crediting Rate and Quota Share

				
	
					
						VI.

					
					
						§1.848-2(g)(8) Election

				
	
					
						VII.

					
					
						Determination of Cede Commission

				
	
					
						VIII.

					
					
						Allocation Percentage

				
	
					
						IX.

					
					
						Reinsured Policies issued prior to the Effective Date

				
	
					
						X.

					
					
						Leverage Measure

				
	
					
						XI.

					
					
						Asset Reserves

				
	
					
						XII.

					
					
						Hedging Returns

				
	
					
						XIII.

					
					
						Trust Deposit Initial Deposit

				
	
					
						XIV.

					
					
						Investment Manager

				
	
					
						XV.

					
					
						Non-Guaranteed Elements

				

		
			 
		

		
			Exhibits
		

			
					
						A.

					
					
						Form of Monthly Accounting Report

				
	
					
						B.

					
					
						Trust Agreement

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			iii

		

		

			 

		

		

		
			 
		

		
			 
		

		
			FUNDS WITHHELD AND FUNDS PAID COINSURANCE AGREEMENT
		

		
			 
		

		
			 (MYGA and FIA BUSINESS)
		

		
			This FUNDS WITHHELD AND FUNDS PAID COINSURANCE AGREEMENT (this “Agreement”), effective as of January 1, 2020 (the “Effective Date”), is made by and between American Life & Security Corp., an insurance company organized under the laws of the State of Nebraska (the “Ceding Company”), and US Alliance Life and Security Company, a reinsurance company organized under the laws of the State of Kansas (the “Reinsurer”).
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, subject to the terms, conditions and limitations contained herein, the Ceding Company desires to cede, on a Funds Withheld and Funds Paid Coinsurance basis, and the Reinsurer desires to accept, a Quota Share of certain liabilities with respect to certain MYGA and FIA business of the Ceding Company (the “Reinsurance Treaty”); and
		

		
			WHEREAS, the Parties have agreed that upon a representation and warranty by the Reinsurer that it is a “Qualified Institutional Buyer” as such term is defined in 17 CFR § 230.144A (“SEC Rule 144A”), the Reinsurance Treaty will cease to both a Funds Withheld and Funds Paid agreement and will become solely a Funds Paid Coinsurance Agreement;
		

		
			NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the Ceding Company and the Reinsurer hereby agree as follows:
		

		
			ARTICLE I
		

		
			GENERAL PROVISIONS
		

		
			Section 1.01Defined Terms.  As used in this Agreement, the following terms shall have the following meanings:
		

		
			“Accounts” shall mean collectively the Trust Deposit and the Funds Withheld Account, each one an “Account.”.
		

		
			“Account Adjustment” shall mean a payment made pursuant to Section 7.03(b).
		

		
			“Accounts Balance” shall mean the aggregate of book value of the Trust Deposit Balance and Funds Withheld Account Balance, as of any date of determination, as such book value is determined in accordance with Nebraska SAP.
		

		
			“Accounts Required Reserves” shall mean Accounts Required Reserves-Funds Withheld plus Accounts Required Reserves-Trust, as of any date of determination.
		

		
			“Accounts Required Reserves-Funds Withheld”  shall mean an amount equal to the Quota Share of the Net Statutory Reserves times the Funds Withheld Allocation Percentage plus the Asset Reserves for assets included in the Funds Withheld Account, as of any date of determination.
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			 
		

		
			“Accounts Required Reserves-Trust” shall mean an amount equal to the Quota Share of the Net Statutory Reserves times the Trust Allocation Percentage plus the Asset Reserves for assets included in the Trust Deposit, as of any date of determination.
		

		
			“Action” shall mean (a) any civil, criminal or administrative action, suit, claim, litigation, arbitration or similar proceeding, in each case, before a Governmental Entity, or (b) any investigation or written inquiry by a Governmental Entity other than a tax audit or any examination by a taxing authority.
		

		
			“Affiliate” shall mean, with respect to any Person, another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, such first Person, and the term “Affiliated” shall have a correlative meaning.  For the purposes of this definition, “control”, when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly through the ownership of voting securities, and the terms “controlling” and “controlled” have the meanings correlative to the foregoing.  For the avoidance of doubt, the Ceding Company and the Reinsurer shall not be deemed “Affiliates” for purposes of this Agreement.
		

		
			“Agreement” shall have the meaning specified in the Preamble hereto.
		

		
			“Allocation Percentage” shall mean the percentages set forth in Schedule VIII for the Trust Deposit and the Funds Withheld Account.
		

		
			“Asset Reserves” shall have the meaning specified in Schedule XI.
		

		
			“Authorized Representative” shall have the meaning specified in Section 14.01(a)(i).
		

		
			“Business Day” shall mean any day other than a Saturday, Sunday or any other day on which banking institutions are authorized or required by Law to close in New York, New York.
		

		
			“Ceding Commission” shall mean the percentage initially as set forth on Schedule VII, as may be amended by mutual agreement of the parties from time to time.
		

		
			“Ceding Company” shall have the meaning specified in the Preamble hereto.
		

		
			“Code” shall mean the Internal Revenue Code of 1986, as amended.
		

		
			“Covered Business” shall have the meaning specified in Section 2.01(b)(i).
		

		
			“Crediting Rate” shall be the percentage determined based on the procedures set forth on Schedule V.
		

		
			“Custodian” shall have the meaning specified in Section 8.02.
		

		
			“Effective Date” shall have the meaning specified in the Preamble hereto.
		

		
			“Excluded Liabilities” shall mean without duplication (a) all Extra-Contractual Obligations other than Reinsurer Extra-Contractual Obligations, (b) any liabilities resulting from any change
		

		
			
		

		
			

		 

		

			2

		

		

			 

		

		

		
			 
		

		
			to the terms of any Reinsured Policy after the Effective Date, unless such change is required by applicable Law or by the express terms of the Reinsured Policies, or has been approved in writing in advance by the Reinsurer, (c) any ex gratia payments made by the Ceding Company (i.e., payments the Ceding Company is not required to make under the terms of the Reinsured Policies) unless such payment has been approved in writing in advance by the Reinsurer, or is set forth in Schedule IV.
		

		
			“Extra-Contractual Obligations”  shall mean any and all costs, expenses, damages, liabilities or obligations of any kind or nature which are not contractually covered by the terms and conditions of the Reinsured Policy, except those which are required, imposed or mandated by a Governmental Entity.
		

		
			“Factual Information” shall have the meaning specified in Section 16.01(d).
		

		
			“Fair Market Value”  means with respect to any asset, and as of any date of determination, the price that would be received in a sale of such asset in accordance with GAAP accounting at the determination date (the “Price”), determined as: (i) for liquid assets, the Price for such asset as published by a nationally recognized pricing service where such prices are available and (ii) otherwise, the Price for such asset as determined by a qualified independent securities valuation firm, each pricing service or valuation firm to be selected by the Investment Manager with the consent of the Ceding Company, such consent not to be unreasonably withheld, conditioned or delayed. In the event that the Ceding Company and the Investment Manager cannot agree on a valuation firm, such valuation firm shall be Houlihan Lokey.  The “fair market value” of any asset shall include any accrued but unpaid interest or dividend on such asset.
		

		
			“Funds Paid Coinsurance” means Coinsurance as defined in Nebraska SAP 61R in which the reinsurance premium is paid to the Reinsurer rather than withheld in a funds withheld account or Modco deposit.
		

		
			“Funds Paid Conversion Date” shall have the meaning specified in Section 3.03.
		

		
			“Funds Withheld Account” shall have the meaning specified in Section 8.02(a).
		

		
			“Funds Withheld Account Balance” shall mean the Statutory Carrying Value of assets in the Funds Withheld Account, as of any date of determination.
		

		
			“GAAP” means generally accepted accounting principles in effect in the United States, consistently applied.
		

		
			“Governmental Entity” shall mean any foreign, federal, state, local or other governmental, legislative, judicial, administrative or regulatory authority, agency, commission, board, body, court or entity or any instrumentality thereof.
		

		
			“Initial Settlement Amount” shall have the meaning set forth in Section 3.02.
		

		
			“Initial Settlement Date” shall mean April 10, 2020.
		

		
			
		

		
			

		 

		

			3

		

		

			 

		

		

		
			 
		

		
			“Investment Guidelines” shall be as set forth in the Investment Management Agreement, as may be amended from time to time.
		

		
			“Investment Manager” shall have the meaning specified in Schedule XIV.
		

		
			“Investment Management Agreement”  shall have the meaning specified in Schedule XIV (as may be amended or supplemented from time to time).
		

		
			“Investment Management Agreement FW” shall have the meaning specified in Schedule XIV (as may be amended or supplemented from time to time).
		

		
			“Kansas SAP” shall mean the statutory accounting principles and practices prescribed or permitted for Kansas domiciled life insurance companies by the Kansas Department of Insurance, or, if different, of the state of domicile of the Reinsurer, consistently applied.
		

		
			“Law” shall mean any law, statute, ordinance, written rule or regulation, order, injunction, judgment, decree, principle of common law, constitution or treaty enacted, promulgated, issued, enforced or entered by any Governmental Entity.
		

		
			“Leverage Measure” shall have the meaning set forth in Schedule X.
		

		
			“Leverage Measure Limit” shall have the meaning set forth in Schedule X.
		

		
			“Loss”  or “Losses”  shall mean claim payments (including returns and waivers of premium and other adjustments), Loss Adjustment Expenses, and reasonable legal fees and settlements, assessments, fines, penalties and filing fees, in each case, actually incurred by, and as determined by, the Ceding Company in good faith but in any event excluding Extra Contractual Obligations other than Reinsurer Extra Contractual Obligations.
		

		
			“Loss Adjustment Expenses”  shall mean loss adjustment expenses incurred in investigating, processing and settling losses that can be attributed to specific claims, including payments to outside vendors, such as lawyers and independent claim adjusters.
		

		
			“Monthly Accounting Period” shall have the meaning specified in Section 7.01(a).
		

		
			“Monthly Settlement” shall mean the making of all payments and adjustments specified in Section 7.03, including, without limitation, Account Adjustments.
		

		
			“Nebraska SAP” shall mean the statutory accounting principles and practices prescribed or permitted for Nebraska domiciled life insurance companies by the Nebraska Department of Insurance, or, if different, of the state of domicile of the Ceding Company, consistently applied.
		

		
			“Net Statutory Reserves”  shall mean the statutory reserves of the Ceding Company in respect of the Reinsured Policies, which shall be calculated in good faith in accordance with Nebraska SAP and determined in a manner consistent with the Ceding Company’s historical practices; provided,  however, that Net Statutory Reserves shall not include  (a) any asset valuation reserves (as used in connection with Nebraska SAP) established by the Ceding Company, (b) any interest maintenance reserves (as used in connection with Nebraska SAP) established by the
		

		
			
		

		
			

		 

		

			4

		

		

			 

		

		

		
			 
		

		
			Ceding Company, (c) any additional actuarial reserves (as used in connection with Nebraska SAP), if any, established by the Ceding Company as a result of its annual cash flow testing or (d) any other reserve not directly attributable to specific Reinsured Policies.
		

		
			“Non-Guaranteed Elements”  shall have the meaning specified in Schedule XV.
		

		
			“Non-Public Personal Information” shall have the meaning specified in Section 17.10.
		

		
			“Permits” shall mean any licenses, certificates of authority or other similar certificates, registrations, franchises, permits, approvals or other similar authorizations issued to a Person by a Governmental Entity.
		

		
			“Permitted Assets” shall mean any asset which: (i) is a permitted asset under applicable Law, (ii) is an admitted asset of the Ceding Company under the applicable Laws of the State of Nebraska, (iii) is an admitted asset of the Reinsurer under the applicable Laws of the State of Kansas, and (iii) is permitted under the Investment Guidelines set forth in the Investment Management Agreement, and (iv) solely with respect to the Accounts, is a permissible asset to provide credit for reinsurance  with respect to the Trust Deposit or Funds Withheld Account (as the case may be) under Nebraska SAP.
		

		
			“Person” shall mean an individual, corporation, partnership, joint venture, limited liability company, association, trust, unincorporated organization, Governmental Entity or other entity.
		

		
			“Policy Expenses” shall have the meaning specified in Section 5.01.
		

		
			“Proprietary Information” shall have the meaning specified in Section 17.10(a).
		

		
			“Quota Share” shall have the meaning specified in Schedule V.
		

		
			“Recapture Effective Date” shall mean the date on which the liability of the Reinsurer with respect to all of the Reinsured Liabilities is terminated pursuant to Section 11.02 or the effective date of the rejection of this Agreement by any Receiver or of a recapture in full.
		

		
			“Receiver” shall have the meaning specified in Section 11.03(a).
		

		
			“Reinsurance Premiums” shall mean the Quota Share of the premiums, policy loan principal and interest payments, and other fees, amounts, payments, and collections received by the Ceding Company with respect to the Reinsured Policies.
		

		
			 “Reinsured Liabilities” shall mean the Quota Share of (a) Losses and liabilities of the Ceding Company with respect to the Reinsured Policies, (b) the Reinsurer Extra-Contractual Obligations divided by the applicable Quota Share, (c) liabilities with respect to premium taxes payable by the Ceding Company to the extent relating to premiums with respect to the Reinsured Policies and (d) trail commissions payable to producers with respect to the Reinsured Policies and other commissions payable with respect to premiums received by the Ceding Company after the Effective Date and paid to the Reinsurer; provided, that in no event shall “Reinsured Liabilities” include any Excluded Liabilities.
		

		
			
		

		
			

		 

		

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			“Reinsured Policies” shall mean  insurance policies of the Ceding Company that are issued on or after the Effective Date and ceded in accordance with the provisions of this Agreement (including without limitation Schedule V) and including any riders that are listed on Schedule I and any amendments or endorsements attached thereto as of the Effective Date.  For avoidance of doubt, Reinsured Policies includes riders and endorsements.
		

		
			“Reinsurer” shall have the meaning specified in the Preamble hereto.
		

		
			“Reinsurer Extra-Contractual Obligations” shall mean Extra-Contractual Obligations relating to the Reinsured Policies to the extent caused by, arising from or related to any act of, or failure to act by, the Reinsurer or any of its Affiliates following the Effective Date.
		

		
			 “Statutory Carrying Value” shall mean, with respect to any asset, as of the relevant date of determination, the carrying value amount permitted to be carried by the Ceding Company as an admitted asset consistent with Nebraska SAP in its statutory financial statements.
		

		
			“Terminal Accounting Report” shall have the meaning specified in Section 11.03(a).
		

		
			“Treasury Regulations” shall mean all proposed, temporary and final regulations promulgated under the Code, as such regulations may be amended from time to time.
		

		
			“Trust Agreement” shall mean the agreement among the Ceding Company, the Reinsurer and the Trust Deposit Trustee which is attached hereto as Exhibit B.
		

		
			“Trust Deposit” shall have the meaning specified in Section 8.01(a).
		

		
			“Trust Deposit Balance” shall mean the Statutory Carrying Value of assets in the Trust Deposit, as of any date of determination.
		

		
			“Trust Deposit Trustee” shall have the meaning specified in Section 8.01(a).
		

		
			Section 1.02Other Definitional Provisions.
		

		
			(a)For purposes of this Agreement, the words “hereof,” “herein,” “hereby” and other words of similar import refer to this Agreement as a whole, including all Schedules and Exhibits to this Agreement, unless otherwise indicated.
		

		
			(b)Whenever the singular is used herein, the same shall include the plural, and whenever the plural is used herein, the same shall include the singular, where appropriate.
		

		
			(c)The term “including” means “including but not limited to.”
		

		
			(d)The Schedules and Exhibits hereto are hereby incorporated by reference into the body of this Agreement.
		

		
			(e)All references herein to Articles, Sections, Subsections, Paragraphs, Exhibits and Schedules shall be deemed references to Articles and Sections and Subsections and Paragraphs of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise require.
		

		
			
		

		
			

		 

		

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			(f)All terms defined in this Agreement shall have the defined meaning when used in any Schedule, Exhibit, certificate, report or other documents attached hereto or made or delivered pursuant hereto unless otherwise defined therein.
		

		
			(g)Any reference to an agreement, statute, regulation or rule is to the same as amended from time to time, and at any time.
		

		
			ARTICLE II
		

		
			COVERAGE
		

		
			Section 2.01Scope and Basis of Reinsurance.
		

		
			(a)This Agreement shall be effective as of 12:00:01 a.m. Eastern Time on the Effective Date.
		

		
			(b) Cession:
		

		
			(i)Subject to the terms, conditions and limits of this Agreement (including the exclusion from coverage of Excluded Liabilities), the Ceding Company shall automatically cede, and the Reinsurer shall automatically reinsure, on a funds paid coinsurance basis the Reinsured Liabilities (the “Covered Business”).
		

		
			(ii)Reserved
		

		
			(c)Subject to the terms, conditions and limits of this Agreement (including the exclusion from coverage of Excluded Liabilities), the Reinsurer shall follow the fortunes of the Ceding Company, and to that end the Reinsurer’s liability for the Reinsured Policies shall be identical to that of the Ceding Company and shall be subject to the same risks, terms, conditions, interpretations, waivers, modifications, alterations and cancellations to which the Ceding Company is subject with respect to the Reinsured Policies, subject in each case to the Ceding Company’s duty to adhere to its obligations pursuant to Article X.
		

		
			(d)Notwithstanding anything to the contrary herein, the Reinsurer shall not be liable for any Excluded Liabilities.
		

		
			Section 2.02Policy Changes.
		

		
			(a)The Ceding Company shall not, without the prior written consent of the Reinsurer, terminate, amend, modify or waive any provision or provisions of the Reinsured Policies, except to the extent required by a Governmental Entity.
		

		
			(b)Any such terminations, amendments, modifications or waivers made without the prior written consent of the Reinsurer shall be disregarded for purposes of this Agreement, and the reinsurance with respect to the affected Reinsured Policy will continue as if such termination, amendment, modification or waiver had not been made.
		

		
			Section 2.03Reinstatement of Surrendered Policies.  If a Reinsured Policy that has been surrendered (other than in connection with a surrender upon maturity) is reinstated according to its
		

		
			
		

		
			

		 

		

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			terms and the Ceding Company’s reinstatement policies, the Reinsurer will, upon notification, automatically reinstate the reinsurance with respect to such Reinsured Policy; provided, that, to the extent that the reinstatement of such Reinsured Policy requires payment of premiums in arrears or reimbursement of claims paid, the Ceding Company shall pay to the Reinsurer all Reinsurance Premiums in arrears and Reinsurer shall pay all reimbursements of Reinsured Liabilities paid on such Reinsured Policy.
		

		
			Section 2.04Misstatement of Fact.  In the event of a change in the amount payable under a Reinsured Policy due to a misstatement of fact by a policyholder, the Reinsurer’s liability with respect to such Reinsured Policy will change proportionately.  Such Reinsured Policy will be rewritten from commencement on the basis of the adjusted amounts using premiums and such other terms based on the correct facts, and the proper adjustment for the difference in Reinsurance Premiums, without interest, will be made.
		

		
			Section 2.05Non-Guaranteed Elements.  The Ceding Company will be responsible for determining the Non-Guaranteed Elements of the Reinsured Policies in good faith and consistent with its standard business practices;  provided, that the Reinsurer shall be permitted to provide recommendations regarding the Non-Guaranteed Elements and, to the extent such recommendations comply with applicable Law, generally accepted actuarial standards of practice, the terms of the Reinsured Policies and the Ceding Company’s internal policies the Ceding Company shall not unreasonably take any actions that contravene such recommendations and shall promptly incorporate such recommendations.  If the Ceding Company fails to adhere to such recommendations in any material respect, then the Ceding Company shall promptly notify the Reinsurer in writing of such failure. Crediting Rates shall be subject to Section 2.06 exclusively and not to this Section 2.05.
		

		
			Section 2.06Crediting Rates.  The Ceding Company and the Reinsurer shall establish the Crediting Rate on any date of determination as set forth based on the procedures in Schedule V.
		

		
			Section 2.07Programs of Internal Replacement.  The Ceding Company shall not solicit, or allow any of its Affiliates to solicit, directly or indirectly, policy holders of the Reinsured Policies in connection with any program of internal replacement without the prior written consent of the Reinsurer.  The term “program of internal replacement” means any program sponsored or supported by the Ceding Company or any of its Affiliates that is offered to a class of policy owners and in which a Reinsured Policy or a portion of a Reinsured Policy is exchanged for another policy that is written by the Ceding Company or any Affiliate of the Ceding Company or any successor or assignee of any of them.
		

		
			Section 2.08RESERVED
		

		
			Section 2.09RESERVED
		

		
			Section 2.10RESERVED
		

		
			Section 2.11Valuation of Liabilities.  The Ceding Company shall calculate the Net Statutory Reserves with respect to the Reinsured Policies in good faith in accordance with Nebraska SAP and determined in a manner consistent with the Ceding Company’s historical practices; provided, that, the Ceding Company shall provide the Reinsurer supporting information promptly upon request and
		

		
			
		

		
			

		 

		

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			in the event there is a disagreement with respect to the calculation, the Dispute Resolution procedures herein shall be applied.
		

		
			Section 2.12Credit For Reinsurance.  In the event the Ceding Company does not receive credit for reinsurance in its statutory financial statements for the Reinsured Liabilities, the parties shall amend this Agreement and take such commercially reasonable actions as are required to provide the Ceding Company with full credit for the reinsurance ceded hereunder.
		

		
			Section 2.13Reserved.
		

		
			Section 2.14Options Budget and Payoff for FIA.
		

		
			(a)     With respect to FIA Reinsured Policies, the Ceding Company shall purchase derivatives in respect of the Reinsured Policies (each, a “Hedge” and collectively, the “Hedges”), in the form of futures contracts and equity index options, to hedge index risk associated with the Reinsured Policies.
		

		
			(b)      The Reinsurer shall pay to the Ceding Company for each accounting period, in accordance with Section 7.3, the Quota Share of all amounts becoming due in connection with the purchase of derivatives by the Ceding Company (the “Option Budget”), as defined in Schedule XII.
		

		
			(c)The Ceding Company shall pay to the Reinsurer for each accounting period, in accordance with Section 7.3, the Quota Share of all amounts becoming due and payable to the Ceding Company during the applicable period in connection with the exercise by the Ceding Company or maturity of any Hedges, whether or not collected (the “Option Payoff”), as defined in Schedule XII.
		

		
			(d)The Option Budget payable by the Reinsurer to the Ceding Company pursuant to subsection (b) above shall be paid without regard to the actual costs paid by the Ceding Company for the Hedges purchased. The Option Payoff payable by the Ceding Company to the Reinsurer pursuant to subsection (c) above shall be paid without regard to the actual proceeds received by the Ceding Company with respect to the Hedges collected.  The Ceding Company shall have no obligation to pay to the Reinsurer any portion of the actual proceeds received by the Ceding Company with respect to the Hedges, or any other amounts in respect of the Hedges, other than the Option Payoff amounts.  For the avoidance of doubt, the Reinsurer has no liability for any hedge effectiveness and hedging is assumed to be 100% effective for purposes of Settlement.
		

		
			(e)The Ceding Company shall use reasonable care in its hedging activities with respect to the Reinsured Policies, and such activities shall (a) be conducted in good faith and (b) conform with Applicable Law.
		

		
			(f)With respect to a FIA Fixed Interest Account, the Reinsurer shall pay the Option Budget to the Ceding Company and the Ceding Company shall pay an Option Payoff to the Reinsurer equal to the actual fixed interest rate established by the Ceding Company at each Reinsured Policy anniversary or upon death, surrender, or partial surrender as would be due to the policyholder under the terms of such policy.
		

		
			
		

		
			

		 

		

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			ARTICLE III
		

		
			REINSURANCE PREMIUMS
		

		
			Section 3.01Reinsurance Premiums.  The payment of Reinsurance Premiums is a condition precedent to the liability of the Reinsurer under this Agreement.   All Reinsurance Premiums shall be payable in accordance with this Section on the Initial Settlement Date and in accordance with Section 7.03.
		

		
			Section 3.02Initial Settlement Amount.
		

		
			(a)On the Initial Settlement Date, the Ceding Company shall (i) retain in the Funds Withheld Account and (ii) transfer to the Trust Deposit (in accordance with the Allocation Percentage) an amount equal to $ $13,542,324.63  (the “Initial Settlement Amount”) calculated based on the line items set forth in Schedule III-A,  as agreed upon the parties in good faith on the Covered Business.
		

		
			(b)A list of the assets to be deposited in the Trust Deposit and the Funds Withheld Account in payment of the Initial Settlement Amount is set forth on Schedule III-B attached hereto.
		

		
			(c)The Reinsurer shall deposit into the Trust Deposit amounts set forth on Schedule XIII on the Initial Settlement Date.
		

		
			Section 3.03Funds Paid Conversion.
		

		
			(a)Upon a representation and warranty by the Reinsurer that it is a “Qualified Institutional Buyer” as defined in SEC Rule 144A, the coinsurance provided under this Reinsurance Treaty shall be entirely on a Funds Paid Coinsurance basis.  Accordingly, the Ceding Company shall promptly thereafter transfer to the Trust Deposit the cash or assets held in the Funds Withheld Account (the completion of which shall be the “Funds Paid Conversion Date”).  The assets shall be transferred at Fair Market Value.  Any difference between the Fair Market Value and the Statutory Carrying Value of the assets transferred shall be accounted for in the Ceding Company’s IMR.  The assets so transferred to the Trust Deposit shall be carried at a new Statutory Carrying Value equal to the Fair Market Value at the time of transfer to the Trust Deposit.
		

		
			ARTICLE IV
		

		
			CEDING COMMISSION
		

		
			Section 4.01Ceding Commission.  The Reinsurer shall pay to the Ceding Company the Ceding Commission on all Reinsurance Premiums paid to the Reinsurer (including on the Initial Settlement Date).   For avoidance of doubt, the Ceding Company may withhold the Ceding Commission amount from the Reinsurance Premiums owed to the Reinsurer, and the Reinsurer’s payment obligation shall thereupon be deemed satisfied.
		

		
			ARTICLE V
		

		
			ADMINISTRATION FEE
		

		
			Section 5.01Policy Expenses.  The Reinsurer shall pay the ceding company an administrative expense fee (“Policy Expenses”) to cover the cost of providing all administrative and other services
		

		
			
		

		
			

		 

		

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			necessary or appropriate in connection with the administration and distribution (including the product development fee) of the Reinsured Policies and the Reinsured Liabilities, determined in accordance with Schedule II attached hereto.
		

		
			(a)Reserved.
		

		
			(b)With respect to Covered Business, the Reinsurer shall pay the Policy Expenses on a monthly basis.
		

		
			(c)Policy Expenses shall be payable by the Reinsurer to the Ceding Company in accordance with Section 7.03.
		

		
			ARTICLE VI
		

		
			REINSURED LIABILITIES
		

		
			Section 6.01Reinsured Liabilities.  Subject to Sections 6.02 and 6.03, the Reinsurer shall pay to the Ceding Company all Losses on Reinsured Liabilities.
		

		
			Section 6.02Claims Settlement.
		

		
			(a)Subject to Section 6.02(b) and 6.03, the Ceding Company shall be responsible for the settlement of claims with respect to the Reinsured Liabilities in accordance with Article X, applicable Law and the terms and conditions of the Reinsured Policies.
		

		
			(b)The Ceding Company shall notify the Reinsurer in writing if the Ceding Company determines that a claim for payment under a Reinsured Policy either requires investigation or should be contested or denied.  The Reinsurer and the Ceding Company shall consult in good faith regarding the disposition of any such claim.  The Reinsurer may, but shall not be required to, recommend to the Ceding Company how to handle such claim.  In the event of any disagreement between the Ceding Company and the Reinsurer as to the validity or amount of such a claim, the Ceding Company shall have final authority over the disposition of such claim.
		

		
			Section 6.03Recoveries.  Subject to Section 6.02(b), if the Ceding Company obtains any recoveries in respect of a claim with respect to the Reinsured Liabilities paid by it in accordance with the terms of any Reinsured Policy, the Ceding Company shall promptly pay to the Reinsurer such recoveries (“Recoveries”).
		

		
			ARTICLE VII
		

		
			REPORTING AND SETTLEMENTS
		

		
			Section 7.01Ceding Company Reporting.
		

		
			(a)Within ten (10) Business Days of the Initial Settlement Date and within five (5) Business Days following the end of each calendar month following the Initial Settlement Date, the Ceding Company shall deliver to the Reinsurer a monthly accounting report (a “Monthly Accounting Report”) substantially in the form set forth in Exhibit A for such calendar month (a “Monthly Accounting Period”).  The parties shall from time to time amend Exhibit A as necessary to appropriately effectuate the terms and conditions of this Agreement and to ensure the accounting and
		

		
			
		

		
			

		 

		

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			settlements made hereunder are correctly computed.  The net amount due as set forth in such Monthly Accounting Report shall be due within three (3) Business Days following the date of delivery of such Monthly Accounting Report.
		

		
			(b)Reserved
		

		
			(c)Within ten (10) Business Days following the end of each Monthly Accounting Period or Recapture Effective Date, the Ceding Company shall deliver to the Reinsurer, as of the end of such Monthly Accounting Period or the Recapture Effective Date, as applicable, a report of the Reinsured Policies in the form as mutually agreed by the parties.
		

		
			(d)The Reinsurer shall deliver to the Ceding Company, as of the end of such Monthly Accounting Period or the Recapture Effective Date, as applicable, within six (6) Business Days following the end of each Monthly Accounting Period or the Recapture Effective Date, an investment accounting report of the assets held in the Trust Deposit (or Funds Withheld Account, if prior to the Funds Paid Conversion Date)  which shall include the holdings,  Statutory Carrying Value, and such other information agreed to by the parties in each case, on a CUSIP level.
		

		
			(e)The Ceding Company shall deliver to the Reinsurer: (i) within five (5) Business Days following the filing of the Ceding Company’s unaudited annual statement with the Nebraska Department of Insurance but no later than March 20 of each year, a copy of such unaudited annual statement; (ii) within five (5) Business Days of the filing of the Ceding Company’s audited annual statutory financial statements with the Nebraska Department of Insurance but no later than June 20 of each year, a copy of such annual statutory financial statements; and (iii) within five (5) Business Days following the filing of the Ceding Company’s unaudited quarterly statutory financial statements with the Nebraska Department of Insurance but no later than sixty (60) calendar days following the end of each calendar quarter, a copy of such unaudited quarterly statutory financial statements.
		

		
			(f)Upon request, the Ceding Company will, within a reasonable timeframe, promptly provide the Reinsurer with any additional information related to the Reinsured Policies reasonably available to the Ceding Company and not reasonably available to the Reinsurer which the Reinsurer requires in order to complete its financial statements or is otherwise required to comply with regulatory requirements.  The Reinsurer will identify and communicate any such requests to the Ceding Company sufficiently in advance of any required deadlines such that the applicable information and timing for the provision thereof can be mutually agreed by the parties.
		

		
			Section 7.02Reinsurer Reporting.
		

		
			(a)The Reinsurer shall deliver to the Ceding Company: (i) within five (5) Business Days of the filing of the Reinsurer’s audited annual financial statements with the State of Kansas or such other state regulator with authority over the Reinsurer (the “Reinsurer Regulator”) but no later than June 20 of each year, a copy of such annual financial statements; (ii) within fifteen (15) Business Days following the end of each calendar quarter a calculation of its Leverage Measure,  and (iii) within five (5) Business Days following the filing of the Reinsurer’s unaudited quarterly financial statements with the Reinsurer Regulator but no later than sixty (60) calendar days following the end of each calendar quarter, a copy of such unaudited quarterly financial statements.
		

		
			
		

		
			

		 

		

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			Section 7.03Settlements & Adjustments.
		

		
			(a) Following the Initial Settlement Date, there shall be payments between the Ceding Company and the Accounts based on the following:
		

		
			(i)Additional Premiums and Other Recoveries.  On a weekly basis, the Ceding Company shall deliver into the Accounts based on the Allocation Percentage the Reinsurance Premiums and Recoveries received in connection with the  Covered Business.
		

		
			(ii)Payments due from Accounts.  On any day the Ceding Company may withdraw funds from the Accounts to pay amounts due from the Reinsurer and as such the Accounts  Balance will be decreased by an amount equal to any payments due from the Reinsurer to the Ceding Company hereunder.  All such payments will be effectuated in cash or by the liquidation of assets (at the direction of the Investment Manager) in the applicable Account(s) into cash (in the event there is insufficient cash in the account) in an amount sufficient to pay all amounts owed by the Reinsurer to the Ceding Company and the transfer of such cash to the Ceding Company in settlement of the payments due from the Reinsurer to the Ceding Company.
		

		
			(b)As of the end of each Monthly Accounting Period, there shall be payments between the Reinsurer and the Accounts based on the following, fifteen  (15) Business Days following the delivery of each Monthly Accounting Report:
		

		
			(i) Payments to the Trust Deposit.
		

		
			(A)In the event the Leverage Measure is less than the Leverage Limit,  such amount necessary to cure such limit breach shall be paid by the Reinsurer promptly and in any event, within 15 Business Days and such payment deposited into the Trust Deposit.  Any assets other than cash that are deposited into the Trust Deposit must satisfy clause (iv) of the definition of Permitted Asset and shall be valued according to Fair Market Value.
		

		
			(ii)Payments to the Reinsurer.
		

		
			(A)After the first anniversary of this Agreement, if the Leverage Measure is greater than the Leverage Limit, such overage may be requested by the Reinsurer to be withdrawn from the Trust Deposit; provided any payment made hereunder in assets other than cash shall be at the Fair Market Value of such asset.
		

		
			(c)As of the end of each Monthly Accounting Period prior to the Funds Paid Conversion Date, there shall be payments between the Trust Deposit and the Funds Withheld Account based on the following, fifteen (15) Business Days following the delivery of each Monthly Accounting Report:
		

		
			(i)Payments to the Funds Withheld Account.  In the event the Accounts Required Reserves-Funds Withheld is greater than the Funds Withheld Account Balance, such positive difference shall be paid from the Trust Deposit to the Funds Withheld Account.
		

		
			
		

		
			

		 

		

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			(ii)Payments to the Trust Deposit.  In the event the Funds Withheld Account Balance is greater than the Accounts Required Reserves-Funds Withheld, such positive difference shall be paid from the Funds Withheld Account to the Trust Deposit.
		

		
			(d)Other.
		

		
			(i)Except as otherwise set forth herein, any amount due under this Agreement shall be paid by wire transfer of immediately available funds to the account or accounts designated by the recipient thereof.
		

		
			ARTICLE VIII
		

		
			THE TRUST DEPOSIT, THE FUNDS WITHHELD ACCOUNT, AND INVESTMENT MANAGEMENT AGREEMENT
		

		
			Section 8.01Trust Deposit.
		

		
			(a) Prior to the Initial Settlement Date, the Ceding Company and the Reinsurer shall establish a funds paid coinsurance account (the “Trust Deposit”) to hold the funds paid coinsurance deposit on the books and records of the Reinsurer with the Reinsurer as grantor thereof, and the Ceding Company as beneficiary.  The Trust Deposit shall be established with Capitol Federal Savings Bank (as trustee of such trust account, the “Trust Deposit Trustee”) under the terms of the Trust Agreement.
		

		
			(b)The Trust Deposit and the assets maintained therein will be owned and maintained by the Reinsurer and will be subject to the terms of the Trust Agreement and used exclusively for the purposes set forth in this Agreement.  The assets maintained in the Trust Deposit shall be invested by the Investment Manager and consist only of Permitted Assets, and the Permitted Assets shall be valued, for the purposes of this Agreement, according to their Statutory Carrying Value.
		

		
			(c)Notwithstanding any other provision hereof, assets held in the Trust Deposit may be withdrawn by the Ceding Company at any time and shall be utilized and applied by the Ceding Company or any of its successors in interest by operation of law, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of insolvency on the part of the Ceding Company or the Reinsurer, only in accordance with Section 7.03.
		

		
			(d)Determinations of statutory impairments of assets maintained in the Trust Deposit shall be made by the Ceding Company and shall be (i) based upon the statutory rules and guidelines and the impairment policy used by the Ceding Company and its auditors for purposes of calculating statutory impairments reflected in the Ceding Company’s statutory financial statements and (ii) subject to consultation between the Investment Manager, the Reinsurer and the Ceding Company.  The Ceding Company shall promptly notify the Reinsurer in writing if the Ceding Company determines that any assets maintained in the Trust Deposit have become impaired for purposes of determining Statutory Carrying Value.  Such notice shall describe any such assets, the reason for the impairment and the effect on Statutory Carrying Value of such assets.
		

		
			
		

		
			

		 

		

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			(e)The Reinsurer shall bear the administrative costs and expenses related to the establishment and maintenance of the Trust Deposit, including the fees of the Trust Deposit Trustee to the extent relating to the Trust Deposit.
		

		
			(f)The performance of the assets maintained in the Trust Deposit, including of all investment income paid or accrued, investment gains or losses, defaults and/or statutory impairments, will inure to the sole benefit or cost of the Reinsurer.
		

		
			Section 8.02Funds Withheld Account.
		

		
			(a) Prior to the Initial Settlement Date, the Ceding Company shall establish a sub-account with a unique account number on its balance sheet (the “Funds Withheld Account”) with assets to be settled as set forth in Section 8.02(b).
		

		
			(b)The Funds Withheld Account and the assets maintained therein will be owned and maintained by the Ceding Company until settled in accordance with this section and will be used exclusively for the purposes set forth in this Agreement.  The assets maintained in the Funds Withheld Account shall be invested by the Investment Manager pursuant to the Investment Management Agreement and consist only of Permitted Assets, and the Permitted Assets shall be valued, for the purposes of this Agreement, according to their Statutory Carrying Value.
		

		
			(c)Notwithstanding any other provision hereof, assets held in the Funds Withheld Account may be withdrawn by the Ceding Company at any time and shall be utilized and applied by the Ceding Company or any of its successors in interest by operation of law, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of insolvency on the part of the Ceding Company or the Reinsurer, only in accordance with Section 7.03.
		

		
			(d)Determinations of statutory impairments of assets maintained in the Funds Withheld Account shall be made by the Ceding Company and shall be (i) based upon the statutory rules and guidelines and the impairment policy used by the Ceding Company and its auditors for purposes of calculating statutory impairments reflected in the Ceding Company’s statutory financial statements and (ii) subject to consultation between the Investment Manager, the Reinsurer and the Ceding Company.  The Ceding Company shall promptly notify the Reinsurer in writing if the Ceding Company determines that any assets maintained in the Funds Withheld Account have become impaired for purposes of determining Statutory Carrying Value.  Such notice shall describe any such assets, the reason for the impairment and the effect on Statutory Carrying Value of such assets.
		

		
			(e)The Ceding Company shall bear the administrative costs and expenses related to the establishment and maintenance of the Funds Withheld Account, including the fees of the Custodian to the extent relating to the Funds Withheld Account.
		

		
			(f)The performance of the assets maintained in the Funds Withheld Account, including of all investment income paid or accrued, investment gains or losses, defaults and/or statutory impairments, will inure to the sole benefit or cost of the Reinsurer.
		

		
			Section 8.03Reserved.
		

		
			Section 8.04Investment Management Agreement.
		

		
			
		

		
			

		 

		

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			(a)Pursuant to the Investment Management Agreement, the Reinsurer has appointed the Investment Manager to provide investment management services with respect to the assets maintained in the Trust Deposit account.  The Reinsurer shall not amend, modify or change the terms of the Investment Management Agreement, including the investment guidelines attached as an exhibit thereto, or remove or replace the Investment Manager without the prior written consent of the Ceding Company.  If the Ceding Company and the Reinsurer agree to any amendments, modifications or changes to the investment management agreement, then the Reinsurer shall propose such changes in writing to the Investment Manager in accordance with the terms of the Investment Management Agreement.  The Reinsurer shall not propose any additional limitations (including with respect to asset allocations) on the assets maintained in the Trust Deposit account without the prior written consent of the Ceding Company.  In the event that the Investment Manager is removed or resigns, the Ceding Company and the Reinsurer shall mutually agree (in good faith) on a replacement investment manager.  The replacement investment manager shall accept its appointment by entering into an investment management agreement in a form acceptable to the Ceding Company and the Reinsurer.
		

		
			(b)Pursuant to the Investment Management Agreement FW, the Ceding Company has appointed the Investment Manager as investment manager to provide investment management services with respect to the assets maintained in the Funds Withheld Account.  The Ceding Company shall not amend, modify or change the terms of the Investment Management Agreement, including the Investment Guidelines attached as an exhibit thereto, or remove or replace the Investment Manager without the prior written consent of the Reinsurer, such consent not to be unreasonably withheld.  If the Ceding Company and the Reinsurer agree to any amendments, modifications or changes to the investment management agreement, then the Ceding Company shall propose such changes in writing to the Investment Manager in accordance with the terms of the Investment Management Agreement.  The Ceding Company shall not propose any additional limitations (including with respect to asset allocations) on the assets maintained in the Funds Withheld Account without the prior written consent of the Reinsurer.  In the event that the Investment Manager is removed or resigns, the Ceding Company and the Reinsurer shall mutually agree (in good faith) on a replacement investment manager.  The replacement investment manager shall accept its appointment by entering into an investment management agreement in a form acceptable to the Ceding Company and the Reinsurer.
		

		
			ARTICLE IX
		

		
			 [RESERVED]
		

		
			ARTICLE X
		

		
			ADMINISTRATION
		

		
			Section 10.01Policy Administration.  The Ceding Company shall provide all required, necessary and appropriate claims, administrative and other services, including reporting under Article VII, with respect to the Reinsured Policies and the Accounts.  The Ceding Company shall conduct its administration and claims practices with respect to the Reinsured Policies (a) with a level of skill, diligence and expertise that would reasonably be expected from experienced and qualified personnel performing such duties in similar circumstances, (b) in accordance with applicable Law and the terms of the Reinsured Policies, and (c) in a manner no less favorable to the Reinsurer and the Reinsured Policies than those used by the Ceding Company with respect to other policies of the Ceding Company not reinsured by the Reinsurer hereunder or other hedges of the Ceding Company.  The
		

		
			
		

		
			

		 

		

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			Ceding Company shall not outsource any administrative functions or claims administration to a non-affiliate with respect to the Reinsured Policies or this Agreement without the prior written consent of the Reinsurer, such consent not to be unreasonably withheld.  If the Reinsurer consents to any outsourcing of any administrative functions or claims administration with respect to the Reinsured Policies or this Agreement, the Ceding Company shall secure the Reinsurer’s right to audit and inspect the party performing such outsourced services.
		

		
			Section 10.02Record-Keeping.
		

		
			(a)Each of the Ceding Company and Reinsurer shall maintain all records and correspondence for services performed by such party hereunder relating to the Reinsured Policies in accordance with industry standards of insurance record- keeping.  In addition, such records shall be made available for examination, audit, and inspection by the other party, or the department of insurance of any jurisdiction within which either the Ceding Company or the Reinsurer operates.  The Ceding Company and the Reinsurer further agree that in the event of the termination of this Agreement, any such records solely in the possession of the Reinsurer shall promptly be duplicated and forwarded to the Ceding Company unless otherwise instructed.
		

		
			(b)The Ceding Company shall establish and maintain an adequate system of internal controls and procedures for financial reporting relating to the Reinsured Policies and the Accounts, including associated documentation, and shall make such documentation available for examination and inspection by the Reinsurer.  All reports provided by the Ceding Company pursuant to Article VII shall be prepared in accordance with such system and procedures and shall be consistent with the Ceding Company’s books and records.
		

		
			ARTICLE XI
		

		
			TERM AND TERMINATION
		

		
			Section 11.01Duration of Agreement.
		

		
			(a)This Agreement shall continue in force until such time as (i) the Ceding Company has no further liabilities or obligations with respect to the Reinsured Liabilities  or (ii) the Agreement is terminated by mutual agreement of the parties.
		

		
			(b)Subject to any limitations in Schedule V, the Ceding Company is obligated to cede and the Reinsurer is obligated to accept new business under this Agreement until (i) the Agreement is terminated as to new business on 30 days prior written notice by either the Ceding Company or the Reinsurer or (ii) the Agreement is terminated as to new business on 30 days prior written notice by the Ceding Company following the Reinsurer failing to maintain its Leverage Measure at or above the Leverage Measure Limit.
		

		
			Section 11.02Recapture.
		

		
			(a)Neither party shall be permitted to cause a recapture of the Reinsured Policies except in accordance with this Section 11.02.  For the avoidance of doubt, neither party shall be permitted to cause a partial recapture of the Reinsured Policies pursuant to this Section 11.02 other than as set out in 11.02(c) or 11.02(f).
		

		
			
		

		
			

		 

		

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			(b)Recapture for Non-Payment.  Either party may cause the Reinsured Policies to be recaptured in full and this Agreement to be terminated as to all Reinsured Policies if the other party fails to pay any amounts due under this Agreement within thirty (30) calendar days following written notice of non-payment from the non-defaulting party.  The Ceding Company may cause the Reinsured Policies to be recaptured in full and this Agreement to be terminated as to all Reinsured Policies if the Reinsurer breaches in any material respect any representation, warranty or covenant under this Agreement and fails to cure such breach within thirty (30) days of receipt of written notice thereof.
		

		
			(c)Recapture of Renewals.  In the event that this Agreement has been terminated with respect to new business under 11.01(c), the Ceding Company may recapture any Reinsured Policy under this Agreement that is either subject to a renewal under its terms for MYGAs or out of its surrender charge period for FIAs; provided the Ceding Company must provide notice to the Reinsurer no later than 10 Business Days prior to the maturity date of each such Reinsured Policy.
		

		
			(d)Recapture by Ceding Company for Other Material Breach.  The Ceding Company may terminate this Agreement and recapture all of the Reinsured Policies in the event the Reinsurer materially breaches this Agreement and fails to substantially cure such material breach within thirty (30) calendar days following written notice thereof from the Ceding Company.
		

		
			(e)Recapture for Insolvency of Reinsurer.  The Ceding Company may terminate this Agreement and recapture all of the Reinsured Policies in the event that the Reinsurer becomes insolvent (as set forth in Article XIV) by providing the Reinsurer or its Authorized Representative with written notice of recapture within thirty days of the date on which the Reinsurer’s insolvency is established by the authority responsible for such determination.  The recapture will be effective as of the date on which the Reinsurer’s insolvency is established by the authority responsible for such determination.  Any requirement for a notification period prior to the termination of this Agreement shall not apply under such circumstances.
		

		
			(f)Hedging Recapture Event.  The Ceding Company may recapture any FIA Reinsured Policy under this Agreement that has a Guaranteed Minimum Cash Surrender Value that is greater than its Contract Value as such terms are defined in the Reinsured Policy form; and provided the Ceding Company complies with such required timing of notice set out in Schedule XII.
		

		
			Section 11.03Recapture Payment.
		

		
			(a)In the event the Reinsured Policies are recaptured in full (including if this Agreement is rejected by any liquidator, receiver, rehabilitator, trustee or similar Person acting on behalf of the Ceding Company (a “Receiver”)), a net accounting and settlement as to any balance due under this Agreement shall be undertaken by the Ceding Company in accordance with Article VII, which calculations shall be as of the Recapture Effective Date.  Within ten (10) Business Days following the later of the Recapture Effective Date or becoming aware that a recapture event has occurred, the Ceding Company shall deliver to the Reinsurer a final Monthly Accounting Report starting as of the prior Monthly Accounting Report and ending on the Recapture Effective Date (the “Terminal Accounting Report”), and all amounts required to be paid in connection with the final settlement (including all Account Adjustments) set forth in such Terminal Accounting Report shall be paid in accordance with Section 7.03 as if the Recapture Effective Date were the end of the month.
		

		
			
		

		
			

		 

		

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			In addition to all amounts required to be paid in connection with the final settlement, the Reinsurer shall pay an amount equal to the Accounts Required Reserves to the Ceding Company, such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate fair value equal to the Accounts Required Reserves.  Following the making of all payments required to be made by the Reinsurer hereunder (including any Account Adjustments  and the payment of the Accounts Required Reserves to the Ceding Company) any remaining assets in the Accounts shall be delivered to one or more accounts as directed by the Reinsurer.
		

		
			(b)Either party’s right to terminate the reinsurance provided hereunder will not prejudice its right to collect amounts owed to it hereunder, including applicable interest as specified in Section 17.02, for the period during which such reinsurance was in force, through and including any notice period.
		

		
			(c)In the event of a renewal recapture under Section 11.02(c) or a hedging recapture under 11.02(f), the Reinsured Liability to such Reinsured Policy shall be extinguished upon the Reinsurer’s settlement of those items in Section 7.03 and the payment of the Quota Share of the Net Statutory Reserves with respect to the recaptured policy (such payment to be effectuated by the Ceding Company retaining assets in the Accounts with an aggregate book value equal to the Net Statutory Reserves), and in each case, solely related to such Reinsured Policy.
		

		
			(d)For the avoidance of doubt, in the event this Agreement terminates  for new business pursuant to Section 11.01 Reinsurer shall remain liable for the Reinsured Policies ceded hereunder in accordance with the terms of this Agreement.  Reinsurer shall have no further liabilities or obligations arising after the recapture date of any recaptured Reinsured Policies as provided for in Section 11.02.
		

		
			Section 11.04Survival.  All provisions of this Agreement will survive any termination of this Agreement and recapture of the Reinsured Policies to the extent necessary to carry out the purpose of this Agreement.
		

		
			ARTICLE XII
		

		
			ERRORS AND OMISSIONS
		

		
			Section 12.01Errors and Omissions.  Any unintentional or accidental failure to comply with the terms of this Agreement which is the result of an oversight or clerical error relating to the administration of reinsurance by either party will not constitute a breach of this Agreement; provided, that, upon discovery, the error shall be promptly corrected so that both parties are restored to the position they would have occupied had the oversight or clerical error not occurred.  In the event a payment is corrected, the party receiving the payment shall be entitled to interest in accordance with Section 17.02.  Should it not be possible to restore both parties to this position, the party responsible for the oversight or clerical error will be responsible for any resulting liabilities and expenses.
		

		
			
		

		
			

		 

		

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			ARTICLE XIII
		

		
			DISPUTE RESOLUTION
		

		
			Section 13.01Negotiation.
		

		
			(a)Within fifteen (15) calendar days after the Reinsurer or the Ceding Company has given the other party written notification of a specific dispute arising out of or relating to this Agreement, each party will appoint a designated officer of its company to attempt to resolve such dispute.  The officers will meet at a mutually agreeable time and location as soon as reasonably possible but no later than thirty  (30) calendar days after such written notification and as often as reasonably necessary in order to gather and furnish the other with all appropriate and relevant information concerning the dispute.  Any such meetings may be held by telephone or video conference.  The officers will discuss the matter in dispute and will negotiate in good faith without the necessity of formal arbitration proceedings.  During the negotiation process, all reasonable requests made by one officer to the other for information will be honored.  The specific format for such discussions will be decided by the designated officers.
		

		
			(b)If the officers cannot resolve the dispute within thirty (30) calendar days of their first meeting, the dispute will be submitted to formal arbitration pursuant to Section 13.02, unless the parties agree in writing to extend the negotiation period for an additional thirty (30) calendar days.
		

		
			Section 13.02Arbitration; Waiver of Trial by Jury.
		

		
			(a)It is the intention of the Reinsurer and the Ceding Company that the customs and practices of the insurance and reinsurance industry will be given full effect in the operation and interpretation of this Agreement.  If the Reinsurer and the Ceding Company cannot mutually resolve a dispute that arises out of or relates to this Agreement, including the validity of this Agreement, and the dispute cannot be resolved through the negotiation process, then the dispute will be finally settled by arbitration in accordance with the provisions of this Section 13.02.
		

		
			(b)To initiate arbitration, either the Ceding Company or the Reinsurer will notify the other party pursuant to Section 17.06 of its desire to arbitrate, stating the nature of the dispute and the remedy sought.
		

		
			(c)Any arbitration pursuant to this Section 13.02 will be conducted before a panel of three arbitrators.  Each of the parties will appoint one arbitrator and the two so appointed will select the third arbitrator.  If either party refuses or fails to appoint an arbitrator within thirty  (30) calendar days after the other party has given written notice to such party of its arbitrator appointment, the party that has given notice may appoint the second arbitrator.  If the two arbitrators do not agree on a third arbitrator within thirty (30) calendar days of the appointment of the second arbitrator, then the third arbitrator shall be selected by the ARIAS-U.S.  Umpire Selection Procedure in effect as of the date of this agreement (available at www.ARIAS-US.org), subject to the arbitrator qualification requirements of this paragraph.
		

		
			(d)The arbitrators and umpire shall be active or retired, disinterested officers or directors of life insurance or reinsurance companies.  Officers or directors of the parties to this Agreement, their Affiliates or subsidiaries are not eligible to serve on the arbitration panel.
		

		
			
		

		
			

		 

		

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			(e)Each arbitration hearing under this Agreement will be held on the date set by the arbitrators at a location mutually agreed upon by the parties or ordered by the arbitration panel.  In no event will the date of the organizational meeting be later than six (6) months after the appointment of the third arbitrator.  As soon as possible, the arbitrators will establish arbitration procedures as warranted by the facts and issues of the particular case.  Notwithstanding Section 17.17, t Title 9 (Arbitration) of the United States Code applies to this Section 13.02.
		

		
			(f)The arbitrators will base their decision on the terms and conditions of this Agreement and the customs and practices of the applicable insurance and reinsurance business rather than on strict interpretation of the law.    The arbitration panel is released from judicial formalities and shall not be bound by strict rules of procedure and evidence.  The arbitrators shall enter an award which shall do justice between the parties and the award shall be supported by a  written opinion.  The decision of the arbitrators, or a majority of them, shall be final and binding on both parties.  Judgment may be entered upon the final decision of the arbitration panel.  The parties agree  that the venue for any matter relating to compelling arbitration or enforcing or vacating the judgment of an arbitration panel shall be the federal courts in the State of Nebraska, or the State courts of such State, and the parties hereby consent to such venue.  Each party hereby waives, to the fullest extent permitted by Law, any objection it may now or hereafter have to the laying of such venue, or any claim that a proceeding has been brought in an inconvenient forum.  For the avoidance of doubt, the parties retain the right to remove such matters from State court to the federal courts in the State of Nebraska.  In addition, the Ceding Company and the Reinsurer hereby consent to service of process out of such courts at the addresses set forth in Section 17.06.
		

		
			(g)In the absence of a decision to the contrary by the arbitration panel, or a majority thereof,  each party shall bear the expense of its own arbitration activities, including its appointed arbitrator and any outside attorney and witness fees, and shall jointly and equally bear with the other party  the expense of the third arbitrator.
		

		
			(h)Waiver of Trial by Jury.  THE REINSURER AND THE CEDING COMPANY HEREBY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT.
		

		
			ARTICLE XIV
		

		
			INSOLVENCY
		

		
			Section 14.01Insolvency.
		

		
			(a)A party to this Agreement will be deemed “insolvent” when it:
		

		
			(i)applies for or consents to the appointment of a receiver, rehabilitator, conservator, liquidator or statutory successor (the “Authorized Representative”) of its properties or assets;
		

		
			(ii)is adjudicated as bankrupt or insolvent;
		

		
			(iii)  files or consents to the filing of a petition in bankruptcy, seeks reorganization or an arrangement with creditors or takes advantage of any bankruptcy, dissolution, liquidation, rehabilitation, conservation or similar Law;
		

		
			
		

		
			

		 

		

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			(iv)fails to maintain its Leverage Measure at or above the Leverage Measure Limit,  or
		

		
			(v)becomes the subject of an order to rehabilitate or an order to liquidate as defined by the insurance code of the jurisdiction of the party’s domicile.
		

		
			(vi)In the event of the insolvency of either party, the rights or remedies of this Agreement will remain in full force and effect.
		

		
			(b)Insolvency of the Ceding Company.  In the event of the insolvency, liquidation or rehabilitation of the Ceding Company or the appointment of a liquidator, receiver or statutory successor of the Ceding Company, the reinsurance coverage provided hereunder shall be payable by the Reinsurer directly to the Ceding Company or to its liquidator, receiver or statutory successor except (1) when the contract or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer or (2) when the assuming insurer, with the consent of the direct insured, has assumed such policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under such policies and in substitution for the obligations of the ceding insurer to such payees, on the basis of the liability of the Ceding Company for the Reinsured Liabilities without diminution because of such insolvency, liquidation, rehabilitation or appointment or because such liquidator, receiver or statutory successor has failed to pay any claims or any portion thereof.  In any such event, the reinsurance being provided hereunder shall be payable immediately upon demand, with reasonable provision for verification, on the basis of claims allowed against the Ceding Company by any court of competent jurisdiction or by any liquidator, receiver or statutory successor.  In any such event, the liquidator, receiver or statutory successor of the Ceding Company shall give written notice to the Reinsurer of the pendency of each claim against the Ceding Company with respect to such Reinsured Liabilities within a reasonable time after each such claim is filed in the insolvency, liquidation or rehabilitation proceeding.  During the pendency of any such claims, the Reinsurer may, at its own expense, investigate such claim and interpose in the proceeding in which such claim is to be adjudicated any defense or defenses that the Reinsurer may reasonably deem available to the Ceding Company or its liquidator, receiver or statutory successor.  For the avoidance of doubt, the Reinsurer will be liable only for benefits reinsured as benefits become due under the terms of the Reinsured Policies and will not be or become liable for any amounts or reserves to be held by the Ceding Company as to the Reinsured Policies or for any damages or payments resulting from the termination or restructuring of the Reinsured Policies, in each case, that are not otherwise expressly covered by this Agreement.
		

		
			ARTICLE XV
		

		
			TAXES
		

		
			Section 15.01Taxes.   No taxes, allowances, or other expenses will be paid by the Reinsurer to the Ceding Company for any Reinsured Policy, except as specifically referred to in this Agreement.
		

		
			Section 15.02DAC Tax Election.
		

		
			(a)The Ceding Company and the Reinsurer agree to elect, pursuant to U.S. Treasury Regulations Section 1.848-2(g)(8), to determine specified policy acquisition expenses with
		

		
			
		

		
			

		 

		

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			respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), (the "DAC Tax Election").
		

		
			(b)This DAC Tax Election will be effective for the first taxable year in which this Agreement is effective and for all years for which this Agreement remains in effect, and each party agrees that is will take no action to revoke such DAC Tax Election.
		

		
			(c)The party with the net positive consideration for this Agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Code.
		

		
			(d)The parties agree to sign the DAC Tax Election in the format provided in Schedule VI upon the execution of this Agreement.
		

		
			(e)The parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency. If requested, the Ceding Company will provide supporting information reasonably requested by the Reinsurer. (The term "net consideration" means "net consideration" as defined in Regulation Section 1.848-2(f)).
		

		
			(f)The Ceding Company and the Reinsurer will each attach a schedule to their respective federal income tax returns filed for the first taxable year for which this DAC Tax Election is effective, and each year thereafter. Such schedules will identity the Agreement as a reinsurance agreement for which the DAC Tax Election under Regulation Section 1.8482(g)(8) has been made.
		

		
			(g)The Ceding Company and the Reinsurer represent and warrant that each is respectively subject to U.S. taxation under with the provision of subchapter L of Chapter 1 or the provisions of subpart F of subchapter N of Chapter 1 of the Code.
		

		
			Section 15.03US Taxpayer.  Both the Ceding Company and the Reinsurer are U.S. taxpayers that are corporations for United States federal income tax purposes and are “United States persons” within the meaning of Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.
		

		
			ARTICLE XVI
		

		
			REPRESENTATIONS, WARRANTIES AND COVENANTS
		

		
			Section 16.01Representations and Warranties of the Ceding Company.  The Ceding Company hereby represents and warrants to the Reinsurer, as of the Effective Date, as follows:
		

		
			(a)Organization and Qualification.  The Ceding Company is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Nebraska and has all requisite corporate power and authority to operate its business as now conducted, and is duly qualified as a foreign corporation to do business, and, to the extent legally applicable, is in good standing, in each jurisdiction where the character of its owned, operated or leased properties or the nature of its activities makes such qualification necessary, except for failures to be so qualified or be in good standing that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a material adverse effect on the Ceding Company’s ability to perform its obligations under this Agreement.
		

		
			
		

		
			

		 

		

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			(b)Authorization.  The Ceding Company has all requisite corporate power to enter into, consummate the transactions contemplated by and carry out its obligations under, this Agreement.  The execution and delivery by the Ceding Company of this Agreement, and the consummation by the Ceding Company of the transactions contemplated by, and the performance by the Ceding Company of its obligations under, this Agreement have been duly authorized by all requisite corporate action on the part of the Ceding Company.  This Agreement has been duly executed and delivered by the Ceding Company, and (assuming due authorization, execution and delivery by the Reinsurer) this Agreement constitutes the legal, valid and binding obligation of the Ceding Company, enforceable against it in accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium, or similar Laws relating to or affecting creditors’ rights generally.
		

		
			(c)No Conflict.  The execution, delivery and performance by the Ceding Company of, and the consummation by the Ceding Company of the transactions contemplated by, this Agreement do not and will not (i) violate or conflict with the organizational documents of the Ceding Company, (ii) conflict with or violate any Law or Permit of any Governmental Entity applicable to the Ceding Company or by which it or its properties or assets is bound or subject, or (iii) result in any breach of, or constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration or cancellation of, any agreement, lease, note, bond, loan or credit agreement, mortgage, indenture or other instrument, obligation or contract of any kind to which the Ceding Company or any of its subsidiaries is a party or by which the Ceding Company or any of its subsidiaries or any of their respective properties or assets is bound or affected, except, in the case of clause (iii), any such conflicts, violations, breaches, loss of contractual benefits, defaults or rights that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a material adverse effect on the Ceding Company’s ability to perform its obligations under this Agreement.
		

		
			(d)Factual Information Relating to the Reinsured Policies.  To the knowledge of the Ceding Company, the information relating to the business reinsured under this Agreement and the Reinsured Policies that was supplied by or on behalf of the Ceding Company to the Reinsurer or any of the Reinsurer’s representatives in connection with this Agreement (such information, the “Factual Information”), as of the date supplied (or if later corrected or supplemented prior to the date hereof, as of the date corrected or supplemented), was complete and accurate in all material respects taken as a whole, as of the date of such information, provided that the Ceding Company makes no representation or warranty with respect to any projection, model, methodology, forecasting, analysis, assumption or estimate other than that the projections, models, methodologies, forecasts, analyses, assumptions or estimates on the basis of which such projection, model, methodology, forecasting, analysis, assumption or estimate were prepared (i) are reasonable and (ii) were prepared in good faith and in accordance with sound actuarial principles.  The Ceding Company makes no representation or warranty as to the sufficiency or adequacy of any reserves or the future profitability of the Reinsured Policies.  Any actuarial data included in the Factual Information was compiled in accordance with generally accepted actuarial principles in all material respects given the intended purpose at the time compiled.  The Factual Information was compiled in a commercially reasonable manner given its intended purpose.
		

		
			(e)Solvency.  The Ceding Company is and will be Solvent on a statutory basis immediately after giving effect to this Agreement.  For the purposes of this Section 16.01(e),
		

		
			
		

		
			

		 

		

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			“Solvent” means that: (i) the aggregate assets of the Ceding Company are greater than the aggregate liabilities of the Ceding Company, in each case determined in accordance with Nebraska SAP; (ii) the Ceding Company does not intend to, and does not believe that it will, incur debts or other liabilities beyond its ability to pay such debts and other liabilities as they come due; and (iii) the Ceding Company is not engaged in a business or transaction, and does not contemplate engaging in a business or transaction, for which the Ceding Company’s assets would constitute unreasonably insufficient capital.
		

		
			(f)Governmental Licenses.  The Ceding Company has all Permits necessary to conduct its business as currently conducted and execute and deliver, and perform its obligations under, this Agreement, except in such cases where the failure to have a Permit has not had and would not reasonably be expected to have a material adverse effect on the Ceding Company’s ability to perform its obligations under this Agreement.  All Permits that are material to the conduct of the Ceding Company’s business are valid and in full force and effect.  The Ceding Company is not subject to any pending Action or, to the knowledge of the Ceding Company, any threatened Action that seeks the revocation, suspension, termination, modification or impairment of any Permit that, if successful, would reasonably be expected to have, or with the passage of time become, a material adverse effect on the Ceding Company’s ability to perform its obligations under this Agreement.
		

		
			(g)Accounts.  Each Account has been maintained in accordance with applicable Law.  No plan of operations with respect to the Accounts was required to be filed and approved by any Governmental Entity.
		

		
			Section 16.02Covenants of the Ceding Company.
		

		
			(a)Investigations.  To the extent permitted by applicable Law, the Ceding Company shall promptly notify the Reinsurer, in writing, of any and all investigations of the Ceding Company conducted by any Governmental Entity commencing after the date hereof, other than routine State insurance department examinations that do not relate to the business reinsured pursuant to this Agreement or would not otherwise reasonably be expected to adversely affect the performance by the Ceding Company of its obligations under this Agreement.
		

		
			(b)Statutory Accounting Principles.  The Ceding Company shall prepare its financial statements as required by, and in accordance with, Nebraska SAP in all material respects.
		

		
			(c)Existence; Conduct of Business.  The Ceding Company shall do or cause to be done all things reasonably necessary to preserve, renew and keep in full force and effect its legal existence and the rights, Permits and privileges material to the conduct of its business.
		

		
			(d)Compliance with Law.  The Ceding Company shall comply with all Laws applicable to, and all Permits issued by any Governmental Entity to, the Ceding Company or by which it or its properties or assets is bound or subject, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to have a material adverse effect on the Ceding Company’s ability to perform its obligations, or on the Reinsurer’s rights or obligations, under this Agreement.
		

		
			(e)Governmental Notices.  The Ceding Company shall provide the Reinsurer, within five (5) Business Days after receipt thereof, copies of any material written notice or report
		

		
			
		

		
			

		 

		

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			from any Governmental Entity with respect to the business reinsured under this Agreement and a written summary of any material oral communication with any Governmental Entity with respect to the business reinsured under this Agreement.
		

		
			(f)Restrictions on Liens.  The Reinsurer shall not create, incur, assume or suffer to exist any material liens on the assets in the Trust Deposit or on any interest therein or the proceeds thereof.  The Ceding Company shall not create, incur, assume or suffer to exist any material liens on the assets in the Funds Withheld Account or on any interest therein or the proceeds thereof.
		

		
			(g)Reliance.  The Ceding Company hereby represents, warrants and covenants that it has not relied, and shall not rely, on any representation, warranty or statement or duty of the Reinsurer other than the representations and warranties contained in Section 16.03 and the covenants contained in Section 16.04.  The Reinsurer makes no representations or warranties in connection herewith other than those contained in Section 16.03 and makes no covenants other than those contained in Section 16.04.
		

		
			Section 16.03Representations and Warranties of the Reinsurer.  The Reinsurer hereby represents and warrants to the Ceding Company, as of the Effective Date, as follows:
		

		
			(a)Organization and Qualification.  The Reinsurer is a corporation duly incorporated, validly existing and in good standing under the Laws of Kansas and has all requisite corporate power and authority to operate its business as now conducted, and is duly qualified as a corporation to do business, and, to the extent legally applicable, is in good standing, in each jurisdiction where the character of its owned, operated or leased properties or the nature of its activities makes such qualification necessary, except for failures to be so qualified or be in good standing that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a material adverse effect on the Reinsurer’s ability to perform its obligations under this Agreement.
		

		
			(b)Authorization.  The Reinsurer has all requisite corporate power to enter into, consummate the transactions contemplated by and carry out its obligations under, this Agreement.  The execution and delivery by the Reinsurer of this Agreement, and the consummation by the Reinsurer of the transactions contemplated by, and the performance by the Reinsurer of its obligations under, this Agreement have been duly authorized by all requisite corporate action on the part of the Reinsurer.  This Agreement has been duly executed and delivered by the Reinsurer, and (assuming due authorization, execution and delivery by the Ceding Company) this Agreement constitutes the legal, valid and binding obligation of the Reinsurer, enforceable against it in accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium, or similar Laws relating to or affecting creditors’ rights generally.
		

		
			(c)No Conflict.  The execution, delivery and performance by the Reinsurer of, and the consummation by the Reinsurer of the transactions contemplated by, this Agreement do not and will not (i) violate or conflict with the organizational documents of the Reinsurer, (ii) conflict with or violate any Law or Permit of any Governmental Entity applicable to the Reinsurer or by which it or its properties or assets is bound or subject, or (iii) result in any breach of, or constitute a default (or event which, with the giving of notice or lapse of time, or both, would become a default) under, or give to any Person any rights of termination, acceleration or cancellation of, any agreement, lease, note, bond, loan or credit agreement, mortgage, indenture or other instrument, obligation or contract
		

		
			
		

		
			

		 

		

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			of any kind to which the Reinsurer or any of its subsidiaries is a party or by which the Reinsurer or any of its subsidiaries or any of their respective properties or assets is bound or affected, except, in the case of clause (iii), any such conflicts, violations, breaches, loss of contractual benefits, defaults or rights that, individually or in the aggregate, do not have, and would not reasonably be expected to have, a material adverse effect on the Reinsurer’s ability to perform its obligations under this Agreement.
		

		
			(d)Governmental Licenses.  The Reinsurer has all Permits necessary to conduct its business as currently conducted and execute and deliver, and perform its obligations under, this Agreement, except in such cases where the failure to have a Permit has not had and would not reasonably be expected to have a material adverse effect on the Reinsurer’s ability to perform its obligations under this Agreement.  All Permits that are material to the conduct of the Reinsurer’s business are valid and in full force and effect.  The Reinsurer is not subject to any pending Action or, to the knowledge of the Reinsurer, any threatened Action that seeks the revocation, suspension, termination, modification or impairment of any Permit that, if successful, would reasonably be expected to have, or with the passage of time become, a material adverse effect on the Reinsurer’s ability to perform its obligations under this Agreement.  The Reinsurer is duly licensed as an authorized insurer in the Ceding Company’s state of domicile.
		

		
			(e)Solvency.  The Reinsurer is and will be Solvent on a statutory basis immediately after giving effect to this Agreement.  For the purposes of this Section 16.03(e), “Solvent” means that: (i) the aggregate assets of the Reinsurer are greater than the aggregate liabilities of the Reinsurer, in each case determined in accordance with statutory accounting principles and practices prescribed or permitted for life insurance companies in its state of domicile by the insurance regulator in that state, consistently applied by the Reinsurer; (ii) the Reinsurer does not intend to, and does not believe that it will, incur debts or other liabilities beyond its ability to pay such debts and other liabilities as they come due; and (iii) the Reinsurer is not engaged in a business or transaction, and does not contemplate engaging in a business or transaction, for which the Reinsurer’s assets would constitute unreasonably insufficient capital.
		

		
			Section 16.04Covenants of the Reinsurer.
		

		
			(a)Investigations.  To the extent permitted by applicable Law, the Reinsurer shall promptly notify the Ceding Company, in writing, of any and all investigations of the Reinsurer conducted by any Governmental Entity commencing after the date hereof, other than routine State insurance department examinations that do not relate to the business reinsured pursuant to this Agreement or would not otherwise reasonably be expected to adversely affect the performance by the Reinsurer of its obligations under this Agreement.
		

		
			(b)Statutory Accounting Principles.  The Reinsurer shall prepare its financial statements as required by, and in accordance with Kansas SAP.
		

		
			(c)Existence; Conduct of Business.  The Reinsurer shall do or cause to be done all things reasonably necessary to preserve, renew and keep in full force and effect its legal existence and the rights, Permits and privileges material to the conduct of its business.
		

		
			
		

		
			

		 

		

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			(d)Compliance with Law.  The Reinsurer shall comply with all Laws applicable to, and all Permits issued by any Governmental Entity to, the Reinsurer or by which it or its properties or assets is bound or subject, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to have a material adverse effect on the Reinsurer’s ability to perform its obligations, or on the Ceding Company’s rights or obligations, under this Agreement.
		

		
			(e)Governmental Notices.  The Reinsurer shall provide the Ceding Company, within five (5) Business Days after receipt thereof, copies of any written notice or report from any Governmental Entity with respect to the business reinsured under this Agreement and a written summary of any material oral communication with any Governmental Entity with respect to the business reinsured under this Agreement.
		

		
			(f)Reliance.  The Reinsurer hereby represents, warrants and covenants that it has not relied, and shall not rely, on any representation, warranty or statement or duty of the Ceding Company other than the representations and warranties contained in Section 16.01 and the covenants contained in Section 16.02.  The Ceding Company makes no representations or warranties in connection herewith other than those contained in Section 16.01 and makes no covenants other than those contained in Section 16.02.
		

		
			ARTICLE XVII
		

		
			MISCELLANEOUS
		

		
			Section 17.01Currency.  All payments due under this Agreement shall be made in U.S. Dollars.
		

		
			Section 17.02Interest.  All amounts due and payable by the Ceding Company or the Reinsurer under this Agreement that remain unpaid for more than fifteen (15) calendar days from the date due hereunder will incur interest from the date due hereunder.  Except as otherwise set forth in this Agreement, such interest shall accrue at a rate equal to twelve percent (12%) per annum, calculated on a 30/360 basis.
		

		
			Section 17.03Right of Setoff and Recoupment.
		

		
			(a)Each of the Ceding Company and the Reinsurer shall have, and may exercise at any time and from time to time, the right to setoff or recoup any balance or balances, whether on account of Reinsurance Premiums, allowances, credits, Reinsured Liabilities or otherwise, due from one party to the other under this Agreement and may setoff or recoup such balance or balances against any balance or balances due to the former from the latter under this Agreement.
		

		
			(b)The parties’ setoff rights may be enforced notwithstanding any other provision of this Agreement including the provisions of Article XIV.
		

		
			Section 17.04No Third-Party Beneficiaries.  This Agreement is an indemnity reinsurance agreement solely between the Ceding Company and the Reinsurer.  The acceptance of risks under this Agreement by the Reinsurer will create no right or legal relation between the Reinsurer and the insured, owner, beneficiary, or assignee of any insurance policy of the Ceding Company.  In addition, nothing expressed or implied in this Agreement is intended to or shall confer remedies, obligations or liabilities upon any Person other than the parties hereto and their respective administrators, successors,
		

		
			
		

		
			

		 

		

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			legal representatives and permitted assigns or relieve or discharge the obligation or liability of any third party to any party to this Agreement.
		

		
			Section 17.05Amendment.  This Agreement may not be changed or modified or in any way amended except by a written instrument executed by  duly-authorized officers of both parties to this Agreement, and any change or modification to this Agreement will be null and void unless made by amendment to this Agreement and  executed by duly-authorized officers of both parties to this Agreement.
		

		
			Section 17.06Notices.
		

		
			(a)All demands, notices, reports and other communications provided for herein shall be delivered by the following means: (i) hand-delivery; (ii) overnight courier service (e.g., FedEx, Airborne Express, or DHL); (iii) registered or certified U.S. mail, postage prepaid and return receipt requested; or (iv) facsimile transmission or e-mail; provided, that the fax or e-mail is confirmed by delivery using one of the three (3) methods identified in clauses (i) through (iii).  All such demands, notices, reports and other communications shall be delivered to the parties as follows:
		

		
			 
		

			
					
						if to the Ceding Company:

					
						 

					
						American Life & Security Corp.

					
						2900 S. 70th Street

					
						Suite 400

					
						Lincoln, NE  68506

					
						Attn:  Michael Salem and Mike Minnich

					
						Tel:  (917) 678-8553 and (917) 257-6314

					
						Email:  ams@american-life.com and mminnich@american-life.com

					
						 

				
	
					
						if to the Reinsurer:

					
						 

					
						US Alliance Life and Security Company

					
						4123 SW Gage Center Dr., Suite 240

					
						PO Box 4026

					
						Topeka, KS 66604

					
						Attn: Jeff Brown

					
						Email: jeff.brown@usalliancelife.com

					
						Tel: 785-228-0200

					
						 

				

		
			 
		

		
			
		

		
			

		 

		

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						With a copy to the Investment Manager:

					
						 

					
						1505 Capital LLC

					
						100 Wall Street, 28th Floor

					
						New York, NY  10005

					
						Attn:  Richard Vecchiolla

					
						Tel:  (917) 993-0895

					
						Email:  rich@1505cap.com

					
						 

				

		
			 
		

		
			 
		

		
			(b)Either party hereto may change the names or addresses where notice is to be given by providing notice to the other party of such change in accordance with this Section 17.06.
		

		
			(c)If either party hereto becomes aware of any change in applicable Law restricting the transmission of notices or other information in accordance with the foregoing, such party shall notify the other party hereto of such change in Law and such resulting restriction.
		

		
			Section 17.07Consent to Jurisdiction.  Subject to the terms and conditions of Article XIII, each party hereto hereby irrevocably and unconditionally submits to the non-exclusive jurisdiction of any United States court sitting in Nebraska and of any Nebraska state court for purposes of all legal proceedings arising out of or relating to this Agreement or for recognition and enforcement of any judgment in respect thereof.  In any action, suit or other proceeding, each party hereby irrevocably waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of the venue of any such proceedings brought in such court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.  For the avoidance of doubt, the parties retain the right to remove such proceedings from Nebraska state court to the federal courts in the State of Nebraska.  Each party hereto also agrees that any final and nonappealable judgment against a party in connection with any action, suit or other proceeding shall be conclusive and binding on such party and that such award or judgment may be enforced in any court of competent jurisdiction, either within or outside of the United States.  A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment.  Each party hereto agrees that any process or other paper to be served in connection with any action or proceeding under this Agreement shall, if delivered, sent or mailed in accordance with Section 17.06, constitute good, proper and sufficient service thereof.  This Section 17.07 is not intended to conflict with or override Article XIII.
		

		
			Section 17.08Service of Process.  The Reinsurer hereby designates the US Alliance Corporation as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Ceding Company.  A copy of any such process shall be delivered to the Reinsurer in accordance with Section 17.06.  This Section is not intended to conflict with or override Article XIII.
		

		
			Section 17.09Inspection of Records.
		

		
			(a)Upon giving at least five (5) Business Days’ prior written notice, the Reinsurer, or its duly authorized representatives, will have the right to audit, examine and copy, electronically or during regular business hours, at the home office of the Ceding Company, any and
		

		
			
		

		
			

		 

		

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			all books, records, statements, correspondence, reports, and other documents that relate to the Reinsured Policies, the assets maintained in the Funds Withheld Account, or this Agreement, subject to the confidentiality provisions contained in this Agreement and preservation of attorney-client privilege .  In the event the Reinsurer exercises its inspection rights, the Ceding Company must provide a reasonable work space for such audit, examination or copying, cooperate fully and faithfully, and produce any and all materials reasonably requested to be produced, subject to confidentiality provisions contained in this Agreement.  The expenses related to any two (2) such inspections in any calendar year shall be borne by the Ceding Company; provided, that if any breach of this Agreement by the Ceding Company has occurred, the expenses relating to all such inspections shall be borne by the Ceding Company.
		

		
			(b)The Reinsurer’s right of access as specified above will survive until all of the Reinsurer’s obligations under this Agreement have terminated or been fully discharged.
		

		
			Section 17.10Confidentiality.
		

		
			(a)The parties will keep confidential and not disclose or make competitive use of any shared Proprietary Information, as defined below, unless:
		

		
			(i)The information becomes publicly available or is obtained other than through unauthorized disclosure by the party seeking to disclose or use such information;
		

		
			(ii)The information is independently developed by the recipient; or
		

		
			(iii)The disclosure is required by Law; provided, that, if applicable, the party required to make such disclosure will allow the other party to seek an appropriate protective order.
		

		
			“Proprietary Information” includes, but is not limited to, underwriting manuals and guidelines, applications, policy forms, agent lists and premium rates and allowances of the Reinsurer and the Ceding Company, but shall not include the existence of this Agreement and the identity of the parties.  Additionally, Proprietary Information may be shared by either party on a need-to-know basis with its officers, directors, employees, Affiliates, third-party service providers, auditors, consultants or retrocessionaires, or in connection with the dispute process specified in this Agreement.
		

		
			(b)Except as embedded in records during an audit as set forth in 17.09, the Ceding Company shall not provide to the Reinsurer, and the Reinsurer shall have no right to access, any Non-Public Personal Information except to the extent (i) necessary for purposes of administration of this Agreement and (ii) requested in writing by a duly authorized representative of the Reinsurer.  The Reinsurer and its representatives and service providers will protect the confidentiality and security of Non-Public Personal Information (as defined below) provided to it hereunder by:
		

		
			(i)holding all Non-Public Personal Information in strict confidence;
		

		
			(ii)maintaining appropriate measures that are designed to protect the security, integrity and confidentiality of Non-Public Personal Information; and
		

		
			
		

		
			

		 

		

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			(iii)disclosing and using Non-Public Personal Information received under this Agreement solely for purposes of carrying out the Reinsurer’s obligations under this Agreement, for purposes of retrocession (provided that the retrocessionaire has agreed to maintain the confidentiality of such Non-Public Personal Information to the same extent as the Reinsurer  hereunder), or as may be required or permitted by Law, in each case solely to the extent permitted by Law.
		

		
			“Non-Public Personal Information” is personally identifiable medical, financial, and other personal information about proposed, current and former applicants, policy owners, contract holders, insureds, annuitants, claimants, and beneficiaries of Reinsured Policies or contracts issued by the Ceding Company, and their representatives, that is not publicly available.  Non-Public Personal Information does not include de-identified personal data, i.e., information that does not identify, or could not reasonably be associated with, an individual.
		

		
			Section 17.11Successors.  This Agreement will be binding upon the parties hereto and their respective successors and assigns including any Authorized Representative of either party.  Neither party may effect any novation or assignment of this Agreement without the prior written consent of the other party and the Nebraska Department of Insurance.
		

		
			Section 17.12Entire Agreement.  This Agreement and the Schedules and Exhibits hereto constitute the entire agreement between the parties with respect to the business reinsured hereunder and supersede any and all prior representations, warranties, prior agreements or understandings between the parties pertaining to the subject matter of this Agreement.  There are no understandings between the parties other than as expressed in this Agreement and the Schedules and Exhibits hereto.  In the event of any express conflict between this Agreement and the Schedules and Exhibits hereto, the Schedules and Exhibits hereto will control.
		

		
			Section 17.13Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.  If any provision of this Agreement, or the application thereof to any Person or entity or any circumstance, is found by a court or other Governmental Entity of competent jurisdiction to be invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.
		

		
			Section 17.14Construction.  This Agreement will be construed and administered without regard to authorship and without any presumption or rule of construction in favor of either party.  This Agreement is between sophisticated parties, each of which has reviewed this Agreement and is fully knowledgeable about its terms and conditions.
		

		
			Section 17.15Non-Waiver.  Neither the failure nor any delay on the part of the Ceding Company or the Reinsurer to exercise any right, remedy, power, or privilege under this Agreement shall operate as a waiver thereof.  No single or partial exercise of any right, remedy, power or privilege shall preclude the further exercise of that right, remedy, power or privilege or the exercise of any other
		

		
			
		

		
			

		 

		

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			right, remedy, power or privilege.  No waiver of any right, remedy, power or privilege with respect to any occurrence shall be construed as a waiver of that right, remedy, power or privilege with respect to any other occurrence.  No prior transaction or dealing between the parties will establish any custom, usage or precedent waiving or modifying any provision of this Agreement.  No waiver shall be effective unless it is in writing and signed by the party granting the waiver.
		

		
			Section 17.16Further Assurances.  From time to time, as and when requested by a party hereto, the other party hereto shall execute and deliver all such documents and instruments and shall take all actions as may be reasonably necessary to consummate the transactions contemplated by this Agreement.
		

		
			Section 17.17Governing Law.  This Agreement will be governed by and construed in accordance with the Laws of the State of Nebraska without giving effect to any principles of conflicts of law thereof that are not mandatorily applicable by Law and would permit or require the application of the Laws of another jurisdiction.
		

		
			Section 17.18Counterparts.  This Agreement may be executed in counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party hereto and delivered to the other party.  Each party hereto may deliver its signed counterpart of this Agreement to the other party by means of electronic mail or any other electronic medium utilizing image scan technology, and such delivery will have the same legal effect as hand delivery of an originally executed counterpart.  When this Agreement has been fully executed by the Ceding Company and the Reinsurer, it will become effective as of the Effective Date.
		

		
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			IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed effective as of the Effective Date.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						AMERICAN LIFE & SECURITY CORP.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Michael Minnich

					
					
						 

				
	
					
						 

					
					
						Name: Michael Minnich

				
	
					
						 

					
					
						Title:  President

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						US ALLIANCE LIFE AND SECURITY COMPANY

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  

					
					
						/s/ Jeff Brown

					
					
						 

				
	
					
						 

					
					
						Name: Jeff Brown

				
	
					
						 

					
					
						Title: EVP & COO

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