Document:

Exhibit
10.9

 

**CONFIDENTIAL
PORTIONS HAVE BEEN OMITTED PURSUANT TO A REQUEST

FOR CONFIDENTIAL
TREATMENT AND HAVE BEEN FILED SEPARATELY WITH

THE SECURITIES
AND EXCHANGE COMMISSION (THE “COMMISSION”).**

 

NON-EXCLUSIVE
PATENT LICENSE AGREEMENT

 

This
NON-EXCLUSIVE PATENT LICENSE AGREEMENT (this “Agreement”) is made as of October 22, 2013 (the “Effective
Date”) by and between Advanced Inhalation Therapies (AIT) Ltd., a company incorporated under the laws of the State of
Israel (“Licensee”), and SensorMedics Corporation, a California corporation (“CareFusion”).

 

BACKGROUND

 

A.           CareFusion
and/or its Affiliates have certain ownership rights to the CareFusion Patents (defined below); and

 

B.           Licensee
wishes to receive a non-exclusive license to the CareFusion Patents on the terms and conditions set forth in this Agreement.

 

In
consideration of the covenants, conditions, and undertakings hereinafter set forth, and intending to be legally bound hereby,
it is agreed by and between the parties as follows:

 

1.           DEFINITIONS.

 

1.1           “Affiliate”
means a corporation, association or other entity that directly or indirectly Controls, is Controlled by, or is under common Control
with, the party in question.

 

1.2           “Agreement”
has the meaning set forth in the Preamble,

 

1.3           “Agreement
Term” has the meaning set forth in Section 11.1.

 

1.4           “CareFusion”
has the meaning set forth in the Preamble.

 

1.5           “CareFusion
Indemnitees” has the meaning set forth in Section 9.2.

 

1.6           “CareFusion
Patents” means the patents listed on the attached Exhibit A, and any continuations, divisionals, supplementary protection
certificates, and renewals thereon, any patents issuing from such patent applications, and any reissues, reexaminations or foreign
equivalents claiming priority to any of the foregoing.

 

1.7           “Commercially
Reasonable Efforts” means the carrying out of obligations or tasks by a party in a sustained manner using good faith
and diligent efforts, which efforts shall be consistent with the exercise of prudent scientific and business judgment in accordance
with the efforts such party (or a similarly situated entity with sufficient resources to advance a program) devotes to products
or research or development projects owned by it of similar scientific and commercial potential.

 

     

     

    

 

1.8          “Confidential
Information” means (i) the terms and conditions of this Agreement, (ii) any proprietary or confidential information
or material, including all trade secrets, in tangible form disclosed hereunder that is marked as “Confidential” or
with some other statement conveying the same meaning at the time it is delivered to the receiving party, or (iii) proprietary
or confidential information or material, including all trade secrets, disclosed orally hereunder; provided, however, that the
above information shall not be deemed Confidential Information, to the extent the receiving party can establish by competent proof
that such information:

 

1.8.1           was
already known to the receiving party, other than under an obligation of confidentiality owed to the disclosing party or as a result
of disclosure by the disclosing party, at the time of disclosure;

 

1.8.2           was
generally available to the public or otherwise part of the public domain at the time of its disclosure hereunder to the receiving
party;

 

1.8.3           becomes
generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or
omission of the receiving party in breach of this Agreement;

 

1.8.4           is
independently developed by the receiving party without reference to any Confidential Information disclosed by the disclosing party;
or

 

1.8.5           is
subsequently disclosed to the receiving party by a person other than the disclosing party without breach of any legal obligation
to the disclosing party.

 

1.9          “Control”
means:

 

1.9.1           as
to an entity, Control means ownership, directly or through one or more other entities, of fifty percent (50%) (or such lesser
percentage equal to a percentage that is equal to or greater than one percent (1%) less than the maximum percentage allowed to
be owned by a foreign entity in a particular jurisdiction) or more of the shares of stock entitled to vote for the election of
directors, in the case of a corporation, of fifty percent (50%) (or such lesser percentage equal to a percentage that is equal
to or greater than one percent (1%) less than the maximum percentage allowed to be owned by a foreign entity in a particular jurisdiction)
or more of the equity interests in the case of any other type of legal entity, the status of a general partner in any partnership;
provided that such entity shall be considered an Affiliate only for the time during which such Control exists; or

 

1.9.2           as
to the prosecution of patent applications, the maintenance of patent rights (including determinations to abandon), and the enforcement
and/or defense of patent rights, Control includes the authority to select legal counsel, solicit other expert advice and assistance,
and to make decisions pertaining to the conduct of patent prosecution, interferences, patent issuance, maintenance, reissue, reexamination,
patent enforcement or defense, as applicable.

 

1.10        “Distributor”
means a third party who purchases Licensed Products from Licensee, directly or indirectly, and takes title to and builds a stock
in Licensed Products in a country or region, and who builds a market and engages in sales of such Licensed Products, as the case
may be, in such region directly for itself and not as a sales agent or representative of ,Licensee, including possibly obtaining
necessary regulatory approvals to market and sell such goods, products or services hi the applicable country or region.

 

     

     

    

  

1.11         “Effective
Date” has the meaning set forth in the preamble.

 

1.12         “Enforcement
Action” means any action reasonably related to the enforcement and protection of the CareFusion Patents in any dispute,
disagreement, complaint or proceeding which could affect the enforcement, validity, scope, ownership or licensing of the CareFusion
Patents in any country or jurisdiction. Enforcement Actions shall include, without limitation, actions directed at third party
infringement, interferences, post-grant oppositions, and inventorship disputes.

 

1.13         “FDA”
means the United States Food and Drug Administration or any replacement or successor authority.

 

1.14         “Field”
means the application of NO Gas for the treatment of diseases or conditions in humans (expressly excluding veterinary applications).

 

1.15         “Indemnitee”
has the meaning set forth in Section 9.3.

 

1.16         “Indemnitor”
has the meaning set forth in Section 9.3.

 

1.17         “Intellectual
Property” means generally any and all right, title and interest in, arising from, or relating to inventions, ideas,
know-how, works of authorship and confidential information, including copyrights, patents and patent applications (together with
all divisionals, continuations, continuations-in-part, reissues, reexaminations, renewals, and extensions of the same), trade
secrets, trade names, trademarks, service marks, any registrations or applications relating to any of the foregoing, and any other
rights of a similar nature or character whether now existing or hereafter created, developed, arising or otherwise coming into
being.

 

1.18         “License”
has the meaning set forth in Section 2.1.

 

1.19         “Licensed
Product” means any product, good or service (i) for which the sale, use or manufacture would, but for the license granted
herein, infringe on a CareFusion Patent, or (ii) that utilizes a device or method of treatment with NO Gas described in the claims
of a CareFusion Patent. For avoidance of doubt, Licensed Product shall include all the goods, components and services comprising
NO Therapy (i.e., the NO Gas).

 

1.20         “Licensee”
has the meaning set forth in the Preamble,

 

1.21         “Licensee
Indemnitees” has the meaning set forth in Section 9.1.

 

1.22         “Major
Market Countries” means the United States, Japan, England, Germany, France, Italy and Spain.

 

     

     

    

  

1.23         “NDA”
means a new drug application, or abbreviated application, pursuant to Section 505 of the Federal Food, Drug, and Cosmetic Act,
21 U.S.C. § 355, or any other equivalent application for FDA open-label marketing approval of a drug.

 

1.24         “NDA
Approval” means approval of an NDA by the FDA.

 

1.25         “Net
Sales” means the gross consideration received from the sale or transfer of a Licensed Product by Licensee, and its Affiliates
and Sublicensees, on a worldwide basis, after deduction of the following expenses, provided and to the extent such expenses are
actually incurred and documented and do not exceed reasonable and customary amounts in the market in which such sale occurred:
(a) discounts and allowances to customers; (b) rebates paid to Distributors; (c) taxes; (d) freight; and (e) refunds and returns.
Net Sales includes all consideration received in respect of any sale of an applicable product, good or service, whether such consideration
is in cash, payment in kind, exchange or another form. For avoidance of doubt, Net Sales shall include any consideration based
on all goods, components, and services comprising NO Therapy, including without limitation the NO Gas, NO Gas Delivery Device(s)
and NO Gas Container. If, for example and without limiting the foregoing, Licensee receives payments based on sales by a Third
Party of NO Gas for use with an NO Delivery Device or NO Gas Container, such payments shall be Net Sales.

 

1.26         “NO
Gas” means nitric oxide gas.

 

1.27         “NO
Gas Container” means a storage vessel for NO Gas.

 

1.28         “NO
Gas Delivery Device(s)” means devices used for the delivery of NO Gas that contain Intellectual Property Licensed by
CareFusion to Licensee.

 

1.29         “NO
Therapy” means the use of NO Gas using a Licensed Product for a particular application within the Field.

 

1.30         “Patent
Term” means the period commencing on the Effective Date and continuing until expiration of the last to expire CareFusion
Patent.

 

1.31         “Prime
Rate” means the base lending rate on corporate loans from commercial banks, as published from time to time in The Wall
Street Journal,

 

1.32         “Royalty”
has the meaning set forth in Section 4.3.1.

 

1.33         “Royalty
Term” means, with respect to each Licensed Product, the period of time beginning on the first sale of a Licensed Product
in a country following receipt of regulatory approval for the marketing and sale of such Licensed Product in such country and
continuing on a country-by-country and product-by-product basis until the later of (1) the expiration of the Patent Term, or (ii)
ten (10) years from the date of such sale of such Licensed Product in such country (other than any sale or transfer between Licensee
and its Affiliates or Sublicensees).

 

1.34         “sale,”
“sell,” or “sold” means the transfer, lease, conveyance, or distribution for consideration
(which consideration includes cash, payment in kind, or other forms of value) of a good or a service to a third party, or the
distribution to a third party (e.g., a supplier or Distributor) for sale by such third party of the applicable good or service
to the marketplace, including hospitals or physicians.

 

     

     

    

  

1.35        “Sublicensees”
has the meaning set forth in Section 2.2.

 

1.36        “Sublicense
Revenue” means all cash payments, the fair market cash value of any equity consideration (less any amounts paid for
such equity consideration), and forgivable loans (to the extent actually forgiven) received by Licensee or its Affiliates in consideration
for and directly attributable to the grant of a sublicense under the CareFusion Patents, including any upfront payments, license
maintenance fees, milestone payments or the like. Sublicense Revenue will not include: (a) bona fide, non-forgivable loans (and
forgivable loans unless and until forgiven); or (b) running royalties based upon sales of a Licensed Product. Any payments received
by Licensee from a Sublicensee for equity in Licensee shall be deemed to be Sublicense Revenue to the extent that the Sublicensee’s
payments for such equity exceeds the fair market value of such equity on the date that the obligation to make such payments are
received by Licensee arises.

 

2.           LICENSE
GRANTS TO LICENSEE.

 

2.1          Non-Exclusive
Patent License to Licensee. Subject to the terms and conditions of this Agreement, CareFusion hereby grants to Licensee, and
Licensee accepts, a non-exclusive, non-sublicensable (except in accordance with Section 2.2) license, under CareFusion’s
interest in the CareFusion Patents, to develop, make, have made, use, have used, sell, offer for sale, have sold, and import Licensed
Products throughout the world solely within the Field (the “License”).

 

2.2          Sublicenses.

 

2.2.1           Licensee
is entitled to sublicense its rights under the License to a third party (each, a “Sublicensee”) solely to have
Licensed Products developed or acquired by Licensee made, sold or distributed for or on behalf of licensee or its Affiliates,
and further subject to the terms of this Section 2.2, unless otherwise expressly agreed in writing by CareFusion. Any such sublicense
shall be on terms and conditions in compliance with and not inconsistent with the terms of this Agreement. No sublicense shall
relieve Licensee of any of its obligations hereunder, and Licensee shall take all steps that may be reasonably necessary to enforce
compliance by Sublicensees. Sublicensees shall not be permitted to further sublicense to any other entity(ies). In the event of
a termination of this Agreement, each sublicense shall automatically terminate,

 

2.2.2           Licensee
shall grant sublicenses only pursuant to written agreements, which will be subject to and subordinate to the terms and conditions
of this Agreement. Licensee shall furnish CareFusion with a fully executed copy of any sublicense agreement, promptly after its
execution.

 

2.2.3           Any
act or omission by a Sublicensee that would have constituted a breach of this Agreement had it been an act or omission by Licensee
shall constitute a breach of this Agreement by Licensee.

 

     

     

    

  

2.3         Reservation
of Rights. CareFusion retains all rights to use, title and ownership under the CareFusion Patents except as expressly licensed
under this Section 2. All rights not expressly granted herein are reserved by CareFusion, and no other licenses to the CareFusion
Patents or any other intellectual property are granted herein, by implication, estoppel or otherwise.

 

3.           AFFIRMATIVE
OBLIGATIONS OF THE PARTIES,

 

3.1         Licensee
Responsibilities. In connection with the license granted under this Agreement and Licensee’s responsibility to develop,
market and sell Licensed Products, Licensee agrees (and shall cause its permitted Sublicensees to agree, as applicable to their
sublicensed activities) to:

 

3.1.1           Determine
regulatory pathways for NO Therapies to commercial markets within the Field;

 

3.1.2           Use
Commercially Reasonable Efforts to obtain NDA Approval for NO Therapies within the Field;

 

3.1.3           Use
Commercially Reasonable Efforts to obtain marketing clearance of at least one NO Therapy application for the Field and achieve
the milestones set forth on Exhibit B within the timeframes therein;

 

3.1.4           Commercially
Reasonable Efforts to fund and manage sales, marketing, distribution, advertising, and end-user service of, and sell, Licensed
Products within the Field.

 

3.2         Diligence
Reporting. Within sixty (60) days after the end of each calendar year (other than the calendar year ending December 31, 2013),
Licensee shall furnish CareFusion with a written report summarizing its, its Affiliates’ and its Sublicensees’ efforts
during the prior year to develop and commercialize Licensed Products. Each report must contain a sufficient level of detail for
CareFusion to assess whether Licensee is in compliance with its obligations under Section 3.1 and a discussion of intended efforts
for the then-current year. Licensee represents and warrants that each of such reports shall be accurate.

 

4.           PAYMENTS.

 

4.1         Upfront
Fees. Licensee shall pay to CareFusion one hundred fifty thousand dollars ($150,000) as follows: (a) fifty thousand dollars
($50,000) within three (3) days of the Effective Date; (b) fifty thousand dollars ($50,000) within three (3) months of the Effective
Date; and (c) fifty thousand dollars ($50,000) within six (6) months of the Effective Date. Such payments shall be nonrefundable
and non-creditable.

 

4.2         Annual
Fee. During the Royalty Term, Licensee shall, on an annual basis, make a nonrefundable payment to CareFusion of fifty thousand
dollars ($50,000), with the first such payment due on the first anniversary of the Effective Date. Each such annual fee payment
under this Section 4.2 shall be creditable against any Royalty payments that become due during the twelve (12)-month period following
the date of such payment.

 

     

     

    

  

4.3         Net
Sales and Royalties.

 

4.3.1           Royalties.
During the Royalty Term, Licensee shall pay to CareFusion a royalty equal to five percent (5%) of Net Sales (“Royalty”)
by Licensee, by its Affiliates, and any of its Sublicensees (but excluding sales by third party Distributors, or sales to Licensee
by contract manufacturers who manufacture NO Gas Containers or NO Gas Delivery Devices solely for the benefit of Licensee).

 

4.3.2           Acknowledgment
Regarding Sublicensees. CareFusion acknowledges that it is not entitled to receive any additional Royalties from Licensee
with respect to Net Sales by a Sublicensee, other than the Royalty set forth in Section 4.3.1.

 

4.4         Sublicense
Revenue. In the event Licensee or an Affiliate of Licensee sublicenses under Section 2.2, Licensee shall pay CareFusion **THE
CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE
COMMISSION.** of any Sublicense Revenues resulting from sublicense agreements executed by Licensee.

 

5.           PAYMENTS;
BOOKS AND RECORDS.

 

5.1         Royalty
Reports and Payments. After the first sale of any Licensed Product, Licensee shall deliver written reports to CareFusion for
each calendar quarter within forty-five (45) days after the end of such quarter, stating in each such report, separately for Licensee,
its Affiliates and applicable Sublicensees, the number and description of each Licensed Product, by country, the gross revenues
in respect thereof, the calculations and itemizations of all permitted deductions to arrive at Net Sales, and the calculation
of Royalties due thereon. Concurrent with the delivery of the report required pursuant to this Section 5.1, Licensee shall pay
to CareFusion all Royalties that have accrued hereunder as of the close of the prior calendar quarter that is covered by such
report.

 

5.2         Payment
Method. All payments due under this Agreement shall be made by check or by bank wire transfer in immediately available funds
to a bank account designated by CareFusion. All payments hereunder shall be made in U.S. dollars. If the due date of any payment
is a Saturday, Sunday or national holiday, such payment may be paid on the following business day.

 

5.3         Late
Payment Penalties. Interest shall accrue on any late payment owed to CareFusion hereunder not made on the date such payment
is due, including late payments or underpayments of Royalties at an interest rate equal to the lesser of **THE CONFIDENTIAL PORTION
HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** or the
highest rate permissible by law, with such interest accruing from the date the payment was originally due, and any late payment
pursuant to this Section shall be credited first to interest and then to any outstanding fees. This Section shall in no way limit
any other rights and remedies available to CareFusion, whether arising under this Agreement or at law or in equity.

 

     

     

    

  

5.4           Currency
Conversions. If any currency conversion shall be required in connection with the calculation of royalties hereunder, such
conversion shall be made using the selling exchange late for conversion of the foreign currency into U.S. Dollars, quoted for
current transactions reported in The Wall Street Journal for the second to last business day of the month prior to the month in
which CareFusion received such payment.

 

5.5           Records;
Inspection. Licensee shall keep, and shall cause its Affiliates and Sublicensees to keep, complete, true and accurate books
of account and records for the purpose of determining the royalty amounts payable under this Agreement. Such books and records
shall be kept at Licensee’s, or at the applicable Affiliate’s or Sublicensee’s, principal place of business,
for at least five (5) years following the end of the quarterly period to which they pertain. Licensee agrees that the books and
records of Licensee, and its Affiliates and Sublicensees, shall be open for inspection by CareFusion during such five (5)-year
period by, at CareFusion’s option, either CareFusion or a public accounting firm for whom the party to be inspected has
no reasonable objection, for the purpose of verifying Royalty statements or any other payment obligations hereunder. Such inspections
may be made no more than once each calendar year, at reasonable times and on reasonable notice. Inspections conducted under this
Section 5.5 shall be at CareFusion’s expense; provided, however, if a variation or error producing an increase exceeding
**THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY
WITH THE COMMISSION.** of the amount owed for any period covered by the inspection is established in the course of any
such inspection, then all reasonable costs relating to the inspection for such period and any unpaid amounts that are discovered
shall be paid promptly by Licensee to CareFusion, together with interest thereon from the date such payments were originally due
at the lesser of **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN
FILED SEPARATELY WITH THE COMMISSION.** or the highest rate permissible by law, and any payment pursuant to this Section 5.5 shall
be credited first to interest and then to any outstanding principal amount.

 

5.6           Tax
Matters. All royalty amounts and other payments required to be paid pursuant to this Agreement shall be paid without deduction
therefrom for withholding for or on account of any sales tax, use tax, value-added tax or other tax or governmental charge, Any
amounts required under the applicable laws to be withheld by Licensee will be the sole responsibility of Licensee and all amounts
owing from Licensee to CareFusion for license fees and royalties shall be grossed up to account for any withholding taxes.

 

6.           INTELLECTUAL
PROPERTY.

 

6.1           Patent
Prosecution & Maintenance. Patent prosecution and maintenance of the CareFusion Patents shall he Controlled by CareFusion.
Licensee shall be responsible for all costs and fees in respect thereof; provided, however, that in the event CareFusion has other
third party licensees of any CareFusion Patents, Licensee shall only be responsible for a prorated portion of the costs and fees
for each such CareFusion Patent based on the total number of licensees of CareFusion for such CareFusion Patent. Licensee shall
pay to CareFusion such amounts within thirty (30) days of invoice therefor.

 

     

     

    

  

6.2         Infringement
Defense. If a third party alleges that the making, using, selling, importing, or exporting of a Licensed Product infringes
such third party’s patents, Licensee shall notify CareFusion of the allegations and, if requested by CareFusion, consult
and confer with CareFusion regarding the defense thereof. Licensee agrees that it shall not, without CareFusion’s express
prior written consent in each instance, settle or compromise any action (or pursue any defense or other theory) in a manner that
would invalidate, modify, or limit the scope of any CareFusion Patent or any claim thereunder, or that would require any specific
performance outside the Field. In addition, at CareFusion’s request, Licensee agrees not to oppose any decision by CareFusion
(and shall cooperate reasonably in support of such decision) to retain counsel for CareFusion, at CareFusion’s sole expense,
and enter an appearance in such action in defense or enforcement of the CareFusion Patents.

 

6.3         Enforcement
of Patent Rights. CareFusion shall Control any and all Enforcement Actions, including the decision whether to undertake such
Enforcement Action.

 

6.4         Marking.
Licensee shall, and shall cause its Affiliates and Sublicensees to, mark all Licensed Products sold in such a manner as to conform
with the patent laws and practice of the country to which such products are shipped or in which such products are sold for purposes
of ensuring maximum enforceability of CareFusion Patents in such country.

 

7.           REPRESENTATIONS
AND WARRANTIES; DISCLAIMERS.

 

7.1          Representations
and Warranties.

 

7.1.1           By
CareFusion. CareFusion warrants and represents to Licensee that it has the corporate authority to enter into this Agreement.

 

7.1.2           By
Licensee. Licensee warrants and represents to CareFusion that (i) it has the corporate authority to enter into this Agreement,
and (ii) as of the Effective Date and to the actual present knowledge (but without having undertaken any investigation) of Licensee,
there are no existing or threatened actions, suits or claims pending against it with respect to its right to enter into and perform
its obligations under this Agreement.

 

7.2         Disclaimer
of Warranties. Except as expressly provided in Section 7.1.1, the CareFusion Patents (and related Confidential Information
disclosed hereunder) are licensed or provided to Licensee “AS IS” and CareFusion expressly disclaims any further representations
and warranties, including any express or implied warranties of merchantability, non-infringement, or fitness for a particular
purpose, or any warranty that any patent or patent application licensed hereunder shall be valid or enforceable. Licensee acknowledges
that it is not relying on any representations, warranties or covenants other than those set forth in Section 7.1.1, and these
disclaimers represent a reasonable allocation of risk between the parties in respect of the consideration paid hereunder, and
are intended to apply even if the Licensed Products, or this Agreement fails of its essential purpose. Licensee also acknowledges
that CareFusion does not represent or warrant as to the scope of any CareFusion Patents, that the exploitation of CareFusion Patents
will be successful, or that any exploitation of CareFusion Patents will not infringe upon any other intellectual property owned
or controlled by CareFusion.

 

     

     

    

  

8.           CONFIDENTIALITY.

 

8.1           Confidential
Information. Except as expressly provided in this Agreement, the parties agree that, for the Agreement Term and thereafter,
the receiving party shall keep completely confidential and shall not publish or otherwise disclose (except for disclosures permitted
under Section 8.2) and shall not use for any purpose except for the purposes contemplated by this Agreement any Confidential Information
furnished to it by the disclosing party hereto pursuant to this Agreement. Without, limitation upon any provision of this Agreement,
each of the parties shall be responsible for the observance by its employees of the confidentiality obligations set forth in this
Section 8 and this Agreement, generally.

 

8.2           Permitted
Disclosures. Except as otherwise limited by this Agreement, each party hereto may disclose the other party’s Confidential
Information: (a) as for the terms and conditions of this Agreement, to its advisors, financial investors (including prospective
investors) and other similarly situated third parties on a need to know basis, if such permitted recipients agree in writing to
be bound by the terms of this Section 8, or (b) to the extent such disclosure is reasonably necessary in connection with (i) filing
or prosecuting patent applications, prosecuting or defending litigation, complying with applicable governmental regulations or
otherwise submitting information to tax or other governmental authorities, or (ii) making a permitted sublicense or otherwise
exercising its rights hereunder, provided that if a party is required to make any such disclosure of another party’s Confidential
Information, other than pursuant to a confidentiality agreement, it shall give reasonable advance notice to the latter party of
such disclosure and, save to the extent inappropriate in the case of patent applications, shall cooperate with the original disclosing
party in any effort by the original disclosing party to secure a protective order blocking the disclosure of, or otherwise affording
confidential treatment to, such Confidential Information.

 

9.           INDEMNIFICATION
& INSURANCE.

 

9.1           Indemnification
of Licensee. CareFusion shall indemnify and hold Licensee and its directors, officers, employees, agents, consultants and
counsel, and the successors and permitted assigns of the foregoing (the “Licensee Indemnitees”) harmless from
and against any and all liabilities, damages, losses, costs or expenses (including reasonable attorneys’ and professional
fees and other expenses of litigation and arbitration) resulting from a claim, suit or proceeding brought by a third party against
a Licensee Indemnitee, arising from or occurring as a result of a breach of CareFusion’s representations and warranties
set forth in Section 7.1.1.

 

9.2           Indemnification
of CareFusion. Licensee shall indemnify and hold CareFusion and its respective directors, officers, employees, agents, consultants,
and counsel, and the successors and permitted assigns of the foregoing (the “CareFusion Indemnitees”) harmless
from and against any and all liabilities, damages, losses,, costs or expenses (including reasonable attorneys’ and professional
fees and other expenses of litigation and arbitration) resulting from a claim, suit or proceeding brought by a third party against
a CareFusion Indemnitee, arising from or occurring as a result of (i) any practice by Licensee of the licenses granted herein,
(ii) the development, manufacture, use, importation, marketing, sale and commercialization by Licensee, its Affiliates or any
Sublicensee of any Licensed Product, or any other good, product, or service provided by Licensee or its Affiliates, whether covered
by the CareFusion Patents or otherwise (including manufacturer’s defect or product liability claims), except, in each case,
to the extent caused by the willful misconduct of CareFusion, or (iii) a breach by Licensee of its representations and warranties
set forth in Section 7.1.2.

 

     

     

    

  

9.3         Procedure.
A party (the “Indemnitee”) that intends to claim indemnification under this Section 9 shall promptly notify
the other party (the “Indemnitor”) of any loss, claim, damage, liability or action in respect of which the
Indemnitee intends to claim such indemnification, and the Indemnitor shall have the right to participate in, and, to the extent
the Indemnitor so desires, to assume sole Control of the defense thereof with counsel mutually satisfactory to the parties, including
the right to settle the action on behalf of the Indemnitee on any terms the Indemnitor deems desirable in the exercise of its
sole discretion, except that the Indemnitor shall not, without the Indemnitee’s prior written consent, settle any such claim
if such settlement contains a stipulation to or admission or acknowledgment of any liability or wrongdoing on the part of the
Indemnitee or imposes any obligation on the Indemnitee other than a monetary obligation, and only to the extent the Indemnitor
assumes directly, and in full, such obligation and is able to fulfill such obligation. The failure to deliver written notice to
the Indemnitor within a reasonable time after the commencement of any such action shall not affect or limit Indemnitor’s
duty to defend such action but shall relieve Indemnitor of liability to the Indemnitee solely to the extent the Indemnitor is
materially prejudiced by the delay. At the Indemnitor’s request and expense, the Indemnitee shall cooperate fully with the
Indemnitor and its legal representatives in the investigation and defense of any action, claim or liability covered by this indemnification
and provide full information with respect thereto. Subject to the Indemnitee’s fulfillment of its obligations under this
Section 9.3, the Indemnitor shall pay any damages, costs or other amounts awarded against the Indemnitee (or payable by the Indemnitee
pursuant to a settlement agreement entered into by the Indemnitor) in connection with such claim.

 

9.4         Insurance.

 

9.4.1           Coverage.
Licensee will procure and maintain during the Agreement Term comprehensive liability insurance, including commercial liability,
product liability and workers’ compensation, having coverage not less than one million dollars ($1,000,000) per occurrence
(or higher if consistent with industry standards) and three million dollars ($3,000,000) in the aggregate, with a reputable and
financially secure insurance carrier. This insurance will be written to cover claims incurred, discovered, manifested, or made
during or after the expiration or termination of this Agreement.

 

9.4.2           Certificate.
Within forty-five (45) days of mutual execution of this Agreement, Licensee will provide CareFusion with a Certificate of Insurance
evidencing primary coverage and requiring thirty (30) days prior written notice of cancellation or material change to CareFusion.
Licensee will advise CareFusion, in writing, that it maintains excess liability coverage over primary insurance for at least the
minimum limits set forth above.

 

9.4.3           Continued
Coverage. If Licensee’s insurance is written on a claims-made basis, as opposed to an occurrence basis, Licensee will
purchase the coverage necessary to ensure continued and uninterrupted coverage of all claims, including those made ‘after
the policy expires or is terminated.

 

     

     

    

 

10.          LIMITATION
OF LIABILITY.

 

Except
in respect of a breach of Section 8, or obligations arising under Section 9, in no event shall either party be liable under this
Agreement to the other party for any incidental, consequential, indirect or exemplary damages, including damages from loss of
profits or opportunities, even if advised of the possibility of such damages. Notwithstanding any fault, negligence, strict liability
or other theory of liability of either party or of its officers, directors, employees or agents under or in connection with this
Agreement, in no event shall the amount of damages payable by one party to the other party exceed the total amount paid by Licensee
to CareFusion in the two year period immediately preceding the action, event or circumstance giving rise to liability hereunder,
except with respect to a breach of Section 2, a breach of a payment obligation arising under Section 4 or Section 5.5, or obligations
arising under Sections 8 or 9, for all of which no such limitation on the amount of damages is imposed.

 

11.          TERM
AND TERMINATION.

 

11.1         Agreement
Term. Subject to the remainder of this Section 11, the term of this Agreement shall commence on the Effective Date and shall
continue until the expiration of the last to expire Royalty Term for all countries and Licensed Products (the “Agreement
Term”).

 

11.2         Termination
for Cause. Either party may, upon written notice to the other party, terminate this Agreement in its entirety or, at the option
of the party providing notice of termination, may terminate any license granted hereunder, if the other party has breached this
Agreement and failed to cure such breach within sixty (60) days after receiving written notice thereof from the party seeking
to terminate. For avoidance of doubt, termination pursuant to this Section 11.2 shall be effective if the party seeking to terminate
provides notice of breach and states that this Agreement or applicable license shall terminate immediately and without further
notice thereof, unless the party in breach cures such breach within the sixty (60) day cure period.

 

11.3         Termination
for Insolvency. If voluntary or involuntary proceedings by or against a party are instituted in bankruptcy under any insolvency
law, or a receiver or custodian is appointed for such party, or proceedings are instituted by or against such party for corporate
reorganization or the dissolution of such party, which proceedings, if involuntary, shall not have been dismissed within sixty
(60) days after the date of filing, or if such party makes an assignment for the benefit of creditors, or substantially all of
the assets of such party are seized or attached and not released within sixty (60) days thereafter, the other party may immediately
terminate this Agreement upon notice to the other party, and all licenses granted to such party hereunder effective upon notice
of such termination.

 

11.4         Termination
if Licensee Challenges CareFusion Patents. If Licensee or any of licensee Affiliates, directly or indirectly, (i) initiates
or requests an interference or opposition proceeding with respect to any CareFusion Patent, or (ii) makes, files or maintains
any claim, demand, lawsuit or cause of action to challenge the validity or enforceability of any CareFusion Patent, CareFusion
shall have the right to terminate this Agreement immediately upon written notice to Licensee.

 

     

     

    

  

11.5         Termination
for Failure to Meet Diligence Milestones. If Licensee fails to reach any milestone set forth on Exhibit B within the
timeframe set forth therein, CareFusion may terminate this Agreement upon thirty (30) days prior written notice.

 

11.6         Accrued
Obligations. Termination of this Agreement or any license granted hereunder for any reason shall not release any party hereto
from any obligation which, at the time of such termination, has already accrued to the other party or which is attributable to
a period prior to such termination or the performance of which was due prior to such termination, nor shall it preclude either
party from pursuing any rights and remedies it may have hereunder and at law and in equity which accrued or are based upon any
event occurring prior to or continuing after such termination.

 

11.7         Effect
of Termination. Upon any termination of this Agreement or any license granted hereunder, the terminated party promptly shall
cease any use, including for evaluation, research or commercial exploitation, under such license and shall, upon request of the
terminating party, promptly destroy all materials derived therefrom (i.e., the use, manufacture, sale or import or export of which
is covered by a claim under the terminated license) and all other Confidential Information received from the terminating party
related to the terminated license. Upon any termination of this Agreement, all sublicenses under the Licenses shall automatically
terminate. The terminated party shall certify in writing its compliance with a request to destroy any materials. Termination of
this Agreement shalt not limit any of the parties’ rights under this Agreement at law, or in equity. In the event of termination
of this Agreement during the Royalty Term for any Licensed Product in any country, and without granting or implying any rights
to Licensee or limiting any rights or remedies of CareFusion, the payment obligations under Section 4 shall survive with respect
to such Licensed Product and country for the remainder of the Royalty Term.

 

11.8         Survival.
Sections 1, 2.3, 4, 5, 7.2, 8, 9, 10, 11.6, 11.7, 11.8 and 12 survive the expiration or termination of this Agreement.

 

12.          MISCELLANEOUS.

 

12.1         Governing
Law and Venue. This Agreement and any dispute arising from the performance or breach hereof shall be governed by and construed
in accordance with the internal laws of the State of California without regard to its rules governing conflicts of law. The sole
jurisdiction and venue for actions related to the subject matter of this Agreement shall be the federal and state courts located
in San Diego County, California. Both parties hereby consent to the jurisdiction of such courts and agree that process may be
served in the manner provided herein for giving notices or otherwise as allowed by California state or United States federal law.

 

12.2         Waiver.
Neither party may waive or release any of its rights or interests in this Agreement except in a writing signed by both parties.
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.

 

     

     

    

  

12.3         Amendment.
This Agreement may be modified or amended only pursuant to a writing executed by both parties.

 

12.4         Publicity.
Licensee shall not use CareFusion’s, or any of its affiliates’, names, or refer to it or any of them directly or indirectly
in any papers, articles, advertisements, marketing materials, sales presentations or press releases, without the prior written
approval of CareFusion.

 

12.5         Assignment.
Except as otherwise provided herein, this Agreement and the licenses granted herein shall not be assignable or transferable by
Licensee, including to any Affiliate of Licensee, without the prior written consent of CareFusion, which shall not be unreasonably
withheld, conditioned or delayed. Licensee is entitled to assign this Agreement and the License, in whole but not in part, and
CareFusion hereby consents to such assignment, upon a merger, consolidation or reorganization of Licensee, or upon a sale or other
transfer of more than fifty percent (50%) of the voting securities of Licensee (or such lesser number as is sufficient to transfer
the authority to elect a majority of the board of directors of Licensee). Any assignment of this Agreement by Licensee shall be
null and void unless the assignee agrees in advance in writing to be bound by the terms of this Agreement as if it were an original
signatory hereto. For purposes of this Agreement, any change in Control of Licensee shall be deemed an assignment, and accordingly,
the agreement must be assigned to the “assignee” thereof. CareFusion may assign this Agreement, and any of the Intellectual
Property licensed to Licensee in this Agreement, to any person or entity at its discretion. The terms and conditions of this Agreement
shall be binding on and inure to the benefit of the permitted successors and assigns of the parties.

 

12.6         Notices.
All notices, requests and other communications hereunder shall be in writing and shall be personally delivered or sent by international
express delivery service, registered or certified mail, return receipt requested, postage prepaid, in each case to the respective
address specified below, or such other address as may be specified in writing to the other parties hereto:

 

	 	Licensee:	Advanced Inhalation Therapies
        (AIT) Ltd.

        2 Derech Meir Weisgal

        Rehovot, 7632605 Israel

        Attn: Chief Operations
        Officer

	 	 	 
	 	CareFusion:	SensorMedics Corporation

        22745 Savi Ranch Parkway

        Yorba Linda, CA 92887

        Attn: General Manager

	 	 	 
	 	with a copy to:	CareFusion Corporation

        3750 Torrey View Court

        San Diego, CA 91230

        Attn: General Counsel

 

Except for
a notice of a change of address, which shall be effective only upon receipt thereof, all such notices, requests, demands, waivers
and communications properly addressed shall be effective: (i) if sent by U.S. mail, three (3) business days after deposit in the
U.S. mail or air mail, postage prepaid; (ii) if sent by Federal Express or other overnight delivery service, one (1) business
day after delivery to such service; (iii) if sent by personal courier, upon receipt; and (iv) if sent by facsimile (if the
receiving machine confirms receipt through answerback and the sending machine prints a paper copy of the answerback message),
or email (if the receiving device confirms both receipt and that the recipient has opened the email, and the sending device receives
a confirmation of such delivery and opening of the email) upon receipt.

 

     

     

    

  

12.7         Force
Majeure. Neither party shall be liable to the other for failure or delay in the performance of any of its obligations under
this Agreement (other than obligations to pay money) for the time and to the extent such failure or delay is caused by earthquake,
riot, civil commotion, war, hostilities between nations, governmental law, order or regulation, embargo, action by the government
or any agency thereof, act of God, act of terrorism, storm, fire, accident, labor dispute or strike, sabotage, explosion or other
similar or different contingencies, in each case, beyond the commercially reasonable control of such party. The party affected
by Force Majeure shall provide the other party with full particulars thereof as soon as it becomes aware of the same (including
its best estimate of the likely extent and duration of the interference with its activities), and shall use commercially reasonable
endeavors to overcome the difficulties created thereby and to resume performance of its obligations as soon as practicable, If
the performance of any obligation under this Agreement is delayed owing to a force majeure for any continuous period of more than
six (6) months, the parties hereto shall consult with respect to an equitable solution, including the possible termination of
this Agreement.

 

12.8         Independent
Contractors. Nothing contained in this Agreement is intended implicitly, or is to be construed, to constitute Licensee or
CareFusion as partners or joint venturers in the legal sense. No party hereto shall have any express or implied right or authority
to assume or create any obligations on behalf of or in the name of any other party or to bind any other party to any contract,
agreement or undertaking with any third party.

 

12.9         Advice
of Counsel. Licensee and CareFusion have each consulted counsel of their choice regarding this Agreement, and each acknowledges
and agrees that this Agreement shall not be deemed to have been drafted by one party or another and shall be construed accordingly.

 

12.10         Other
Obligations. Except as expressly provided in this Agreement or as separately agreed upon in writing between Licensee and CareFusion,
each party shall bear its own costs incurred in connection with the implementation of the obligations under this Agreement.

 

12.11         Severability.
If any provisions of this Agreement are determined to be invalid or unenforceable by an arbitrator or court of competent jurisdiction,
the remainder of this Agreement shall remain in full force and effect without said provision. The parties shall in good faith
negotiate a substitute clause for any provision declared invalid or unenforceable, which shall most nearly approximate the intent
of the parties in entering this Agreement; provided, if the parties are unable to agree on such a substitute clause and the deletion
of the provision held invalid or unenforceable would produce material adverse financial consequences for one party, such party
shall have the right to terminate this Agreement with one hundred eighty (180) days prior notice.

 

     

     

    

  

12.12         Further
Assurances. At any time or from time to time on and after the date of this Agreement, either party shall at the request of
the other party (i) deliver to the requesting party such records, data or other documents consistent with the provisions of this
Agreement, (ii) execute, and deliver or cause to be delivered, all such consents, documents or further instruments of assignment,
transfer or license, and (iii) take or cause to be taken all such actions, as the requesting party may reasonably deem necessary
or desirable in order for the requesting party to obtain the full benefits of this Agreement and the transactions contemplated
hereby.

 

12.13         Approvals.
Licensee shall be responsible, at its expense, for obtaining any approvals from the governmental entities which may be required
under applicable law for the commercial exploitation of NO Therapy.

 

12.14         Entire
Agreement. This Agreement together with the Exhibits hereto constitutes the entire agreement with respect to the subject matter
hereof, and supersedes all prior or contemporaneous understandings or agreements, whether written or oral, between Licensee and
CareFusion with respect to such subject matter.

 

12.15         Headings.
The headings to the Sections hereof are not a part of this Agreement, but are included for convenience of reference only and shall
not affect its meaning or interpretation.

 

12.16         Construction.
Whenever examples are used in this Agreement with the words “including,” “for example,” “e.g.,”
“such as,” “etc.” or any derivation of such words, such examples are intended to be illustrative and not
limiting.

 

12.17         Counterparts.
This Agreement may be executed in two counterparts and by facsimile, each of which shall be deemed an original and which together
shall constitute one instrument.

 

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

 

	SENSORMEDICS CORPORATION	 	ADVANCED INHALATION THERAPIES (AIT) LTD.
	 	 	 	 	 
	By:	/s/ Kevin Ketzel	 	By:	/s/ Racheli Vizman
	 	 	 	 	 
	Name:	Kevin Ketzel	 	Name:	Racheli Vizman
	 	 	 	 	 
	Its:	General Manager	 	Its:	COO

 

     

     

    

 

EXHIBIT A

 

CAREFUSION PATENTS

 

	Patent/Application

Number	 	Title	 	Application

Number
	US 2012/0199123 Al	 	Intermittent Dosing of Nitric Oxide Gas	 	US13369205
	US 6,581,599 B2	 	Method and apparatus for delivery of inhaled nitric oxide to spontaneous-breathing and mechanically-ventilated patients	 	US09449240
	US 6,786,217 B2	 	Method and apparatus of delivery of inhaled nitric oxide to spontaneous-breathing and mechanically-ventilated patients	 	US10348238
	US 7,335,181 B2	 	Nitric oxide decontamination of the upper respiratory tract	 	US11107618
	US 7,516,742 B2	 	Method and apparatus for delivery of inhaled nitric oxide to spontaneous-breathing and mechanically-ventilated patients with intermittent dosing	 	US11234849
	US 7,955,294 B2	 	Intermittent dosing of nitric oxide gas	 	US11598221A
	US 8,043,252 B2	 	Nitric oxide decontamination of the upper respiratory tract	 	US12004514A

 

     

     

    

 

EXHIBIT B

 

DILIGENCE MILESTONES

 

Successful completion of Phase H Study
for a Licensed Product by September 31, 2017 (including, but not limited to, final study data and results).

 

Successful completion of Phase III Study
for a Licensed Product by September 31, 2018 (including, but not limited to, final study data and results).

 

FDA approval for a Licensed Product by
September 31, 2020.

 

First sale of a Licensed Product by September
31, 2021.Exhibit
10.10

 

OPTION
AGREEMENT 

 

THIS Option Agreement is entered into this
31st day of August, 2015 by Advanced Inhalation Therapies (AIT) Ltd., a company duly incorporated under the laws
of the State of Israel (the “Company”) and Pulmonox Technologies Corporation, a company duly incorporated under
the laws of the Province of Alberta, Canada (the “Seller”); each of the Company and the Seller may be referred
to as a “Party” and jointly as the “Parties”.

 

WHEREAS          Seller
is the owner of rights and title in the Acquired IP (as defined below), and the Company is interested in evaluating the purchase
of all such rights and title from Seller who is interested in selling such rights and title;

 

WHEREAS          for
the purposes of facilitating the purchase of the Acquired IP, Seller is willing to grant the Company a certain Option (as defined
below) to purchase all of Seller’s rights and title to the Acquired IP;

 

WHEREAS          for
the purposes of further facilitating such possible purchase, during the time between the grant of the Option and its exercise or
expiration, Seller is willing to grant the Company a temporary license to use the Acquired IP during such period, as further detailed
in this Agreement;

 

WHEREAS          the
Company and the Seller wish to lay down the terms of the grant of the Option, the temporary license and of the subsequent sale
of the Acquired IP upon exercise of the Option.

 

NOW THEREFORE IT IS AGREED AS FOLLOWS:

 

		1.	Definitions

 

In this Agreement, the following terms
shall have the following meaning ascribed to them, unless the context requires otherwise:

 

		1.1.	"Acquired IP" means all of Seller's Intellectual Property as of the Effective
Date and as of the Closing (as defined below), including without limitations, the patents, patent applications and know-how identified
as such in Schedule 1.1 attached hereto.

 

		1.2.	“Affiliate” means, with respect to any party hereto, any person, organization
or entity directly or indirectly controlling, controlled by or under common control with, such party. For purposes of this definition
only, “control” of another person, organization or entity shall mean the ability, directly or indirectly, to direct
the activities of the relevant entity, and shall include, without limitation (i) ownership or direct or indirect control of fifty
percent (50%) or more of the outstanding voting stock or other ownership interest of the other organization or entity, or (ii)
direct or indirect possession, of the power to elect or appoint fifty percent (50%) or more of the members of the governing body
of the organization or other entity.

 

		1.3.	"Approved Product" means each of the First Approved Product, the Second Approved
Product and/or the Third Approved Product that include revenues paid to the Company for nitric oxide gas for approved medical indications.
For the avoidance of any doubt, Approved Product includes nitric oxide and may include the use of a proprietary delivery device.
For example, if the First Approved Product is for chronic obstructive pulmonary disease (“COPD”), this First Approved
Product will include nitric oxide drug product and any devices necessary to deliver nitric oxide for treatment of COPD.

 

		1.4.	“Combination Product” means a product which comprises an Approved Product and
any additional products which do not qualify as Approved Products.

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	 	 

     

    

 

		1.5.	"Closing" shall mean the consummation of the acquisition of the Acquired IP by
the Company from the Seller in accordance with the provisions hereof.

 

		1.6.	"Documents" means all files, documents, data, instruments, papers, books, reports,
records, tapes, microfilms, photographs, letters, budgets, forecasts, ledgers, journals, title policies, lists, regulatory filings,
operating data and plans, technical documentation (production files, design specifications, functional requirements, operating
instructions, logic manuals, flow charts, etc.), research materials, quality assurance and test procedures, user documentation
(installation guides, user manuals, training materials, release notes, working papers, etc.), marketing documentation (sales brochures,
flyers, pamphlets, web pages, etc.), complete manufacturing files in connection with the Acquired Products and other similar materials,
all to the extent related to the Acquired IP, in each case whether in tangible or electronic form

 

		1.7.	"Effective Date" means the date of this Agreement.

 

		1.8.	"Encumbrances" means any charge, lien, attachment, pledge, encumbrance, debt,
security interest, mortgage, right of way, easement, servitude, claim, right to acquire or similar restriction, including any restriction
on use, transfer, exercise of any other attribute of ownership over or in the relevant property, or any third party rights.

 

		1.9.	"Governmental Body" means any court, administrative agency or commission or other
federal, national, provincial, state, local, foreign or other governmental authority, instrumentality, agency or commission.

 

		1.10.	"Inhaled Nitric Oxide" means any and all technology related to using gaseous Nitric
Oxide for therapeutics or prevention of disease in animals and humans

 

		1.11.	"Intellectual Property" means all patents, or patent applications and any
patent issued therefrom, any divisional, continuation or continuation-in-part application, or application for a patent of addition
or another application claiming priority, directly or indirectly, from said patents and patent application, and patents issued
therefrom, and any extensions of term, patent term adjustments, supplementary patent certificates and the like of any of the foregoing;
registered and unregistered designs; registered and unregistered trade marks; copyrights; design rights; rights in and to databases;
know-how; trade secrets; purchasing information; results of development activities, whether in confidential information or otherwise;
information of a commercial nature; any materials, results, devices, production files, procedures, protocols, formulae, computer
programs, software, source code, algorithms, file structure and any other information or data regardless of form or type, including
but not limited to that of a scientific, technical nature experimental data, test data, designs, specifications, processes, manufacturing
data, production files, techniques, inventions, drawings, vendor lists, photographs, films, reports, manuals, technical writings,
sound recordings, pictorial representations, and other documentation or other representations, graphical or otherwise; and any
other information related to development, discoveries, concepts and ideas, whether or not patentable or otherwise subject to proprietary
rights or legal protection; on magnetic tape, computer memory, or in any other form, any or all subsisting or issued anywhere in
the world.

 

		1.12.	"Legal Requirements" means any applicable federal, national, state, local, municipal,
foreign, international, multinational or other constitution, law, ordinance, code, regulation, rule, order, judgment, decree, statute
or treaty.

 

		1.13.	“Net Sales means the gross consideration received from the sale or transfer of an
Approved Product by the Company or its Affiliates, on a worldwide basis, after deduction of the following expenses, provided and
to the extent such expenses are actually incurred and documented and do not exceed reasonable and customary amounts in the market
in which such sale occurred: (a) discounts and allowances to customers; (b) rebates paid to Distributors; (c) taxes; (d) freight;
and (e) refunds and returns. Net Sales includes all consideration received in respect of any sale of an applicable product,
good or service, whether such consideration is in cash, payment in kind, exchange or another form.

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	2	 

     

    

 

Notwithstanding the above, for
the purposes of this definition, the transfer of an Approved Product by the Company or one of its Affiliates to another Affiliate
of the Company is not a sale; in such case, Net Sales will be determined based on the gross invoice amount of the Approved Product
first sold by the Affiliate to independent third-parties, less the deductions permitted herein.

 

In addition, the Net Sales shall
be furthermore adjusted and reduced in the event that a Approved Product is sold as part of a Combination Product as set forth
in Section 2.4 hereto.

 

		1.14.	"Permits" means any licenses, permits, consents, registrations, approvals, permissions,
certificates, applications or other authorizations.

 

		1.15.	"Proceeding" means any claim, demand, action, suit, litigation, arbitration, proceeding
(including any civil, criminal, administrative, investigative or appellate proceeding), prosecution, contest, hearing, inquiry,
inquest, audit, examination or investigation.

 

		1.16.	"Product" means any Inhaled Nitric Oxide product, good or service sold by the
Company.

 

		1.17.	"Transaction Documents" means this Agreement and all agreements, documents, instruments
and certificates ancillary to or contemplated by this Agreement.

 

		2.	The Option; Transfer of Acquired IP 

 

		2.1.	Seller hereby grants the Company, effective as of the Effective Date, an exclusive option to purchase
all of the Seller's rights, title and interest in and to the Acquired IP (the "Option"). The grant of the Option
is conditioned upon Company paying Seller the sum of US$25,000 in cash within 10 days from the Effective Date (the "Option
Consideration").

 

		2.2.	The Option shall be exercisable by a written notice given by the Company to Seller to that effect
not later than within six (6) months as of the Effective Date (the "Exercise Notice" and the "Option Period",
respectively).

 

		2.3.	Subject to the exercise of the Option by the Company, in consideration for the acquisition by the
Company of the Acquired IP from the Seller:

 

		2.3.1.	The Company shall pay Seller the sum of US$500,000 in cash (the "Purchase Price")
within 3 business days from the Closing Date;

 

		2.3.2.	The Company shall issue to Seller within 3 business days from the Closing Date warrants to purchase
up to such amount of Ordinary Shares (also known as Common Shares) of the Company, in such number equal to: (A) US$1,000,000; divided
by (B) 80% of the price per share of each Ordinary Share of the Company determined for the purposes of the Company's initial public
offering (the "Exercise Price" and the "Warrant", respectively). The Warrant shall be exercisable,
in whole or in part, until the seventh anniversary as of the date of grant of the Warrant, for cash and at Exercise Price, all
in accordance with and subject to the terms and conditions of the Warrant attached as Schedule 2.3.2 hereto. In the event
that the Company shall not undergo an initial public offering within one (1) year as of the Closing Date, the Parties hereto shall
bona fide renegotiate the terms of the Warrant. Seller acknowledges that, if required by the underwriter, any shares issued to
it in connection with the exercise of the Warrant as part of the Company's initial public offering, will be subject to a standard
lock-up period not to exceed six months.  

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	3	 

     

    

 

		2.3.3.	The Company shall make the following one-time development milestone payments to Seller, upon achievement
of each relevant milestones (each, a “Development Milestone”) (the “Development Milestone Payments”):

 

		(a)	Obtainment by the Company of its first FDA approval for an Approved Product ("First Approved
Product") - $1,500,000;

 

		(b)	Obtainment by the Company of its second FDA approval for an Approved Product ("Second Approved
Product") - $1,500,000;

 

		(c)	Obtainment by the Company of its third FDA approval for an Approved Product ("Third Approved
Product") - $1,500,000;

 

		2.3.4.	The Company shall make the following one-time sales milestone payments to Seller, upon achievement
of each relevant milestones (each, a “Sales Milestone”) (the “Sales Milestone Payments”):

 

		(a)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$20,000,000 worldwide,
per all First Approved Product - US$1,500,000.

 

		(b)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$75,000,000 worldwide,
per all First Approved Product - US$3,000,000.

 

		(c)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$125,000,000 worldwide,
per all First Approved Product - US$3,000,000.

 

		(d)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$500,000,000 worldwide,
per all First Approved Product - US$20,000,000.

 

		(e)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$20,000,000 worldwide,
per all Second Approved Product - US$1,500,000.

 

		(f)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$75,000,000 worldwide,
per all Second Approved Product - US$3,000,000.

 

		(g)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$125,000,000 worldwide,
per all Second Approved Product - US$3,000,000.

 

		(h)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$500,000,000 worldwide,
per all Second Approved Product - US$20,000,000.

 

		(i)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$20,000,000 worldwide,
per all Third Approved Product - US$1,500,000.

 

		(j)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$75,000,000 worldwide,
per all Third Approved Product - US$3,000,000.

 

		(k)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$125,000,000 worldwide,
per all Third Approved Product - US$3,000,000.

 

		(l)	The achievement by the Company of cumulative aggregate Net Sales exceeding US$500,000,000 worldwide,
per all Third Approved Product - US$20,000,000.

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	4	 

     

    

 

For the avoidance of any doubt,
(i) Seller shall be entitled to receive each of the Sales Milestone Payments only one-time with respect to the achievement of each
Sales Milestone achieved by the Company; (ii) with respect to each of the First, Second and Third Approved Product, Seller may
be entitled to receive up to an aggregate amount of US$27,500,000 in total on account of the Sales Milestone Payments for each
such Approved Product.

 

For clarification purposes
only, for example:

 

(A) in the event that the Company
reaches an aggregate Net Sales of US$30,000,000 with respect to the First Approved Product, Seller shall be entitled to receive
a one-time payment of US$1,500,000, thereafter if the Company reaches an additional aggregate Net Sales of US$45,000,000 with respect
to the First Approved Product, Seller shall be entitled to receive an additional one-time payment of US$3,000,000.

 

(B) in the event that the Company
reaches an aggregate Net Sales of US$80,000,000 with respect to the First Approved Product, Seller shall be entitled to receive
a one-time payment of US$1,500,000 (for achieving the US$20,000,000 milestone) and a one-time payment of US$3,000,000 (for achieving
the US$75,000,000 milestone).

 

		2.4.	Notwithstanding the foregoing, in the event that any Approved Product is sold in a form of a Combination
Product, then the parties shall, together, determine in good faith the proportion of such Combination Product to be attributed
to the Approved Product, it being agreed that absent such mutual agreement as to the proportion of such Combination Product to
be attributed to the Approved Product, the parties shall mutually appoint an independent expert to determine such proportion. Net
Sales from such Combination Product for the purposes of determining Sales Milestone Payments thereon shall be determined by multiplying
the actual Net Sales of such Combination Product by such mutually agreed or expert-determined proportion, and the Company shall
make Sales Milestone Payments to Seller accordingly. For example purposes only, in the event that the Net Sales derived by the
Company from the sale of a certain Combination Product which is comprised from the First Approved Product and additional other
products are at a certain point US$1,000,000, and the mutually agreed or expert-determined proportion is 4/5, the Net Sales attributed
to the First Approved Product on account of the sales of such Combination Product, shall be US$800,000.

 

		2.5.	Company's obligation to make the payments set forth under Sections 2.3.3 and 2.3.4 above may be
assigned by the Company, subject to a written notice to Seller, to any third party licensing or acquiring the Acquired IP from
the Company, provided that such third party shall undertake in writing to become bound by the applicable provisions hereof. Each
such agreement shall include language pursuant to which the permitted assignee or licensee commits to make reasonable commercial
efforts to commercialize the Acquired IP.

 

		2.6.	Immediately upon exercise of the Option by the Company, at its sole discretion and at any time
during the Option period, Seller shall be deemed to have sold, assigned, and transferred to the Company all of Seller's rights,
title and interest in and to the Acquired IP, free and clear of any and all Encumbrances other than 2.5 above.

 

		2.7.	Following the exercise of the Option, Seller undertakes to take all actions, provisions and undertakings
necessary to effectuate such sale, assignment and transfer and to assist the Company in any such effort including, without limitation,
any registration of the assignment in any territory as will be required, at Company’s cost and expense. In addition, at Company’s
request, Seller shall promptly deliver to the Company true and complete files or copies of files relating to the issuance, prosecution,
maintenance, enforcement and defense to all Acquired IP in its possession, and shall thereafter promptly forward to the Company
any additional information, documents or notices it receives in connection with the Acquired IP.

 

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		2.8.	Seller hereby grants the Company, during the Option Period and to the extent that the Option was
exercised by the Company in accordance with the provisions hereof, for an additional period of six (6) month as of the end of the
Option Period, an option to purchase all of Seller's tangible assets, including inventory, machinery, equipment, tools, supplies
and other tangible property related to, or used in connection with the Acquired IP (the "Tangible Assets"), including
without limitation the Tangible Assets listed under Schedule 2.8 attached hereto, for such consideration to be agreed upon
between the parties.

 

		2.9.	Value Added Tax will be added to any payment under this Agreement pursuant to applicable law, if
applicable according to any applicable law, in which event payment by the Company shall be made, by wire transfer to a bank account
designated by the Seller to the Company in writing, subject to and against appropriate tax invoice issued by Seller.

 

		2.10.	The Company shall be entitled to deduct and withhold from any payment made pursuant to this Agreement
such amounts required to be deducted and withheld with respect to the making of any such payment under any applicable law (the
"Withholding Amount"), unless the Company is provided with an exemption from such withholding Tax or certificate
of reduced withholding in respect of each such payment at least 3 Business Days prior to the applicable payment date (a "Withholding
Tax Exemption"). Upon the request of Seller, the Company shall reasonably assist Seller in obtaining an applicable Withholding
Tax Exemption at Seller's cost. Any Withholding Amount so withheld by the Company shall be remitted to the applicable Governmental
Authorities and shall be treated for all purposes of this Agreement as having been paid to the Seller.

 

		2.11.	Seller will bear any taxes which according to applicable law should be borne by a seller in connection
with the sale of the Acquired IP and the transactions contemplated hereunder. Without derogating from the foregoing, no Party will
have any liability whatsoever for any taxes of any kind or nature, to be borne by the other Party pursuant to applicable law, whether
due, arising or payable prior, at or following the Closing Date.

 

		3.	Use of IP 

 

		3.1.	For due consideration hereby acknowledged and for purpose of facilitating the contemplated purchase
of the Acquired IP, Seller hereby grants the Company with a temporary exclusive license to use the Acquired IP for preclinical
and clinical development purposes during the License Term as defined in Section 3.2 below (the "License"), subject
to the provision of Section 2.

 

		3.2.	The term of the License (the “License Term”) shall commence as of the Effective Date
and end until the earlier of the following: (a) exercise of the Option; (b) expiry of the Option Period without execution of the
Option; or (c) termination of this Agreement without execution of the Option in accordance with the provisions of Section 9 below.

 

		3.3.	At the expense of the Company the Seller undertakes to make any document, provision and undertaking
to effectuate the License and assist the Company in any such effort including, without limitation, any license registration in
any territory as will be required.

 

		4.	Representations and Warranties

 

Except as set forth in a disclosure
schedule delivered by Seller to the Company dated as of the date hereof (the “Disclosure Schedule”) (the Disclosure
Schedule will be arranged in sections corresponding to the sections contained in this Section 5 and exceptions and disclosures
set forth in any section of the Disclosure Schedule will apply to any other section of the Disclosure Schedule to the extent the
relevance to such other section or sections is reasonably apparent), Seller hereby represents and warrants to the Company as of
the date hereof and as of the Closing Date:

 

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		4.1.	Constitution and Compliance

 

		4.1.1.	Seller is duly incorporated and validly existing under the laws of the Province of Alberta, Canada,
in good standing and with power and authority to carry on its business as currently conducted and as currently proposed to be conducted
and to own, lease, and operate its properties. Seller has at all times carried on its business and affairs related to the Acquired
IP in all material respects in accordance with its organizational documents and all applicable Legal Requirements, and has not
breached or violated, and is not in breach or violation, of its organizational documents or applicable Legal Requirements in a
manner which may materially and adversely affect Seller in connection with the Acquired IP.

 

		4.1.2.	Seller has made available to the Company or to the Company’s legal advisor true, accurate
and complete copies of its organizational documents, as amended, as of the date of this Agreement.

 

		4.2.	Authority to Transact

 

		4.2.1.	Seller has all requisite corporate power and authority to execute and deliver the Transaction Documents,
and to carry out and perform its obligations under the Transaction Documents and to consummate the transactions contemplated thereby.

 

		4.2.2.	(i) all corporate action on the part of Seller, necessary for the authorization and execution of
the Transaction Documents by Seller, and the performance of all of Seller’s obligations under the Transaction Documents,
have been taken, and no other corporate proceeding on the part of the Seller is necessary to authorize this Agreement and the transactions
contemplated hereby; and (ii) this Agreement and the Transaction Documents constitutes, valid and legally binding obligations of
Seller, enforceable against the Seller in accordance with their terms, except as such enforceability may be limited by effect of
(a) applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights and (b) general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or
in equity.

 

		4.3.	Execution of Agreement

 

Neither the execution and delivery
by Seller of the Transaction Documents nor the consummation by Seller of the transactions contemplated thereby, will:

 

		4.3.1.	Violate any provisions of Seller’s organizational documents or any contract, agreement, indenture,
mortgage, instrument, note, bond, lease, license, arrangement, or undertaking of any nature, written or oral, of Seller, or cause
the acceleration, termination or modification of any contract, agreement, indenture, mortgage, instrument, note, bond, lease, license,
arrangement, or undertaking of any nature, written or oral, of Seller, in each case, related to the Acquired IP.

 

		4.3.2.	Require the consent, Permit or agreement of any Governmental Body, entity or any other third party.

 

		4.3.3.	Result in any violation of, or conflict with, or constitute a default under any term of, or result
in the creation or enforcement of, any Encumbrances upon any of the properties or assets of Seller used in connection with the
Acquired IP.

 

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		4.3.4.	Cause Seller to lose any interest in or the benefit of any asset, right, license or privilege considered
as Acquired IP it presently owns or enjoys.

 

		4.3.5.	Result in any breach or violation by Seller of any provisions of any Legal Requirements applicable
to the Seller or by which any of its assets or properties is bound or subject.

 

		4.4.	Title to Assets

 

		4.4.1.	Seller owns and has good and valid title to all of the Acquired IP, free and clear of any and all
Encumbrances other than those disclosed by Seller to Company as of the effective date of the execution of this agreement.

 

		4.4.2.	No other person or entity has any legal or equitable interest whatsoever in any of the Acquired
IP, other than those disclosed by Seller to Company as of the effective date of the execution of this agreement.

 

		4.5.	Compliance with Legal Requirements; Governmental Authorizations

 

		4.5.1.	Seller has at all times acted with best efforts with respect to the Acquired IP in compliance with
each Legal Requirement that is or was applicable to it, in all applicable jurisdictions relevant for Seller and to the Acquired
IP.

 

		4.5.2.	No event has occurred or circumstance exists that may (with or without notice or lapse of time):
(i) to Seller's knowledge, constitute or result in a violation by Seller of, or a failure on the part of Seller to comply with,
any Legal Requirement with respect to any of the Acquired IP; or (ii) could reasonably be expected to give rise to any obligation
on the part of Seller to undertake, or to bear all or any portion of the cost of, any remedial action of any nature in connection
with any Legal Requirement with respect to the Acquired IP.

 

		4.5.3.	Seller has not received, at any time, any written notice or other communication from any Governmental
Body or any other person or entity regarding: (i) any actual, alleged, possible or potential violation of, or failure to comply
with, any Legal Requirement with respect to any of the Acquired IP; or (ii) any actual, alleged, possible or potential obligation
on the part of Seller to undertake, or to bear all or any portion of the cost of, any remedial action of any nature in connection
with any Legal Requirement with respect to the Acquired IP, and to Seller's knowledge, there is no factual or legal basis for such.

 

		4.5.4.	There is no action or Proceeding pending or, to the knowledge of the Seller, threatened and no
notice has been received by the Seller that has resulted in or, could reasonably be expected to result in, suspension, non-renewal,
termination or cancellation of, with respect to, any such Permit.

 

		4.6.	Litigation

 

There is no Proceeding brought,
conducted or heard by or before, or otherwise involving, any Governmental Body or any arbitrator or arbitration panel of any kind,
at law or in equity (including actions or Proceedings seeking injunctive relief), pending or, to the knowledge of Seller, threatened,
against, or involving Seller or any properties, assets or rights of Seller, to the extent consisting part of the Acquired IP, and
Seller is not subject to any continuing order of, consent decree, settlement agreement, or other similar written agreement with,
or to the knowledge of Seller, continuing investigation by, any Governmental Body, or any judgment, order, writ, injunction, decree,
or award of any Governmental Body or arbitrator to the extent related thereto nor is it a party thereto.

 

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		4.7.	Intellectual Property 

 

		4.7.1.	Schedule 4.7.1 contains a true and complete description as of the date of this Agreement
and as of the Closing Date of:

 

		(a)	All registered copyrights, registered patents, patent applications, registered trademarks, registered
service marks, and registered trade names owned by Seller.

 

		(b)	The jurisdictions in which any applications for patents or registration of any Acquired IP has
been made, including the respective application numbers and dates.

 

		(c)	The jurisdictions in which the Acquired IP has been registered, including the respective patent
or registration numbers and dates.

 

		(d)	All parties to whom Seller has delivered any copies of the source code constituting part of the
Acquired IP during the past three (3) years, whether pursuant to an escrow arrangement or otherwise, or parties (other than
Employees) who have the right to receive such source code.

 

		(e)	All current products, constituting part of the Acquired IP made commercially available by Seller
or currently under development by Seller, are as described in Schedule 4.7.1(e) ("Acquired Products").

 

		(f)	Seller is the sole and exclusive owner of all of the Acquired IP. Seller has sole, full and clear
title to all of such items of the Acquired IP, free and clear of any Encumbrances, and upon Closing, the Company will possess
sole, full and clear title to all of such items of the Acquired IP, free and clear of any Encumbrances, without the need to obtain
any third party or Governmental Body consent or approval, except as may be required under Legal Requirements applicable to the
Company in connection with Company's activity. The Acquired IP constitutes all of the Seller Intellectual Property. The Seller
has taken all reasonable steps to protect its rights in all of the Acquired IP, including making all filings and paying
all fees required by any Governmental Body with respect to registered Acquired IP.

 

		4.7.2.	All granted and issued patents and all registered mask works and copyright registrations constituting
part of the Acquired IP are valid and subsisting. Without limiting the generality of the foregoing, and in connection with such
Intellectual Property:

 

		(a)	Seller has not engaged in patent misuse or any fraud in connection with any registered patents.

 

		4.7.3.	Seller has the right to use, sell, license, assign, transfer, convey or dispose of the Acquired
IP.

 

		4.7.4.	Seller has taken all necessary and appropriate steps to protect and preserve the confidentiality
of the Acquired IP.

 

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		4.7.5.	Seller has secured valid written assignments or licenses, from all employees and consultants of
Seller who contributed to the creation or development of the Acquired IP. To Seller's knowledge, Seller does not make use, nor
has it made any use, of any invention or other creation of any employees or consultants thereof, made by such employee or consultant
prior to their employment or engagement by Seller and with respect to which Seller has not secured a right to use such invention
or creation from such employee or consultant.

 

		4.7.6.	As of the date of this Agreement and as of the Closing, no person has asserted or threatened to
assert any claims with respect to the Acquired IP or any part thereof: (i) contesting the right of Seller to use, exercise, sell,
license, transfer or dispose of any of the Acquired IP; (ii) challenging the ownership, validity or enforceability of any of the
Acquired IP; or (iii) alleging any claim of infringement, violation, or misappropriation of the Acquired IP. None of the Acquired
IP is subject to any outstanding order, judgment or decree restricting in any manner the licensing, assignment, transfer or conveyance
thereof by Seller in a manner which may interfere with the provisions hereof.

 

		4.7.7.	To Seller's knowledge, there has not been and as of the date of this Agreement and as of the Closing
Date, there is no unauthorized use, infringement, violation or misappropriation of any of the Acquired IP by any third party. Seller
has not brought any actions or lawsuits, or asserted any claims alleging (i) infringement, violation or misappropriation of any
of the Acquired IP; or (ii) breach of any license, sublicense or other agreement authorizing another party to use the Acquired
IP.

 

		4.7.8.	Neither the execution, delivery or performance of the Transaction Documents, nor the consummation
of the transactions contemplated thereby, will, with or without notice or lapse of time, result in or give any other person or
entity the right or option to cause or declare: (i) a loss of, or Encumbrance on, any Acquired IP; (ii) a breach of any contract
or agreement relating to the Acquired IP to which Seller is a party or by which it is bound; (iii) the release, disclosure or delivery
of any of the Acquired IP by or to any escrow agent or other person or entity; or (iv) the grant, assignment or transfer to any
third party of any license or other right or interest under, to or in any of the Acquired IP.

 

		4.7.9.	Seller has made available to the Company or the Company’s legal advisor accurate, full and
complete copies of the following Documents relating to the Acquired IP and the Acquired Products:

 

		(a)	Any patent clearance for any Acquired Product.

 

		(b)	Any non-infringement or invalidity opinions related to third party patents drafted as a result
of an Acquired Product clearance or third party patent assertion.

 

		(c)	Any letter, notification or correspondence to Seller from any third party or from Seller to any
third party regarding infringement of the Acquired IP.

 

		4.7.10.	Seller has not provided or disclosed the source code of any software used or embedded in the Acquired
IP or the Acquired Products to any person or entity other than their respective employees and authorized consultants and contractors.
No contract or agreement grants any third party any exclusive rights, whether or not limited in time or territory, with respect
to any of the Acquired Products or the Acquired IP. The Seller has no liability with respect to, or is required to pay, any royalties,
commissions, or similar payments to any person or entity in connection with any sale, distribution, license or development of the
Acquired Products or Acquired IP.

 

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		4.8.	Brokers and Finders

 

Seller has
no Liability or obligation to pay any fees, commissions or similar payments to any broker, finder or agent in connection with the
transactions contemplated hereunder.

 

		4.9.	Due Diligence Materials. 

 

Seller has
provided to the Company or its representatives, all documents held by Seller of the character and type requested by the Company
in connection with its "due diligence" investigation of the Seller and there are no documents in the possession of the
Seller or any of its respective agents or representatives of a character or type described in such requests which have not been
so provided to the Company or its representatives.

 

		4.10.	Full Disclosure

 

The representations
and warranties made by Seller in this Agreement, when read together in their entirety, do not contain as of the date of this Agreement
and as of the Closing Date any untrue statement of a material fact, or omit as of the date of this Agreement to state a material
fact necessary to make the statements contained herein not misleading, in light of the circumstances under which they were made.

 

		5.	Prosecution and Maintenance of Patent Rights

 

		5.1.	During the Option Period, Seller shall (i) at the written request of the Company, prepare, file,
prosecute and maintain patent applications and patents covered by the Acquired IP in any country, if available, at the Company’s
cost, (ii) shall take action to actively maintain (i.e., maintenance and annuity fees paid) and prosecute all of the Acquired IP,
(iii) shall not neglect nor allow abandonment on any of the Acquired IP, (iv) regularly notify the Company of the status of all
pending applications and existing applications and patents constituting part of the Acquired IP, (v) immediately share with the
Company all correspondence regarding any of the Acquired IP, all for a maximum of $20,000 USD.

 

		5.2.	During the Option Period, Seller shall not prepare, file, prosecute, abandon or maintain patent
applications and patents covered by the Acquired IP in any country, unless such action is made (i) in full cooperation with the
Company, and (ii) subject to the Company’s prior written consent, which shall not be unreasonable withheld.

 

		5.3.	Seller and any of its assignees and/or licensees shall not make any priority claims based on any
Acquired IP, without the Company’s prior written consent.

 

		6.	Restrictive Covenants of Seller

 

		6.1.	Confidentiality.

 

During the Option Period and
for seven (7) years thereafter, to the extent that the Option was exercised by the Company in accordance with the terms hereof,
Seller shall not, directly or indirectly, and shall cause its respective directors, officers, employees, agents and representatives,
directly or indirectly, and shall cause their respective directors, officers, employees, agents and representatives not to (i)
disclose; or (ii) use for its own benefit, or for the benefit of any other person or entity, any trade secret, data or information,
whether written, oral or in other form, including without limitation, technology, copyrights, know how, trade secrets, intellectual
property, whether registered or not, designs, formulae, methods, experimental works or specifications, discoveries, samples, processes,
techniques, developments, production, marketing and sale methods, business plans, prices and pricing methods, customer lists, supplier
information, or any similar information, to the extent relating to the Acquired IP (including operations, activities, technology,
plans, products or financial affairs) (the "Confidential Information"), without limitation of time; unless such
Confidential Information is or becomes part of the public domain without the fault of Seller and except as required by applicable
law. Seller acknowledges that the Company is in the process of preparing for an initial public offering of its shares to the public
and accordingly may be required by securities laws and / or the U.S. Securities and Exchange Commission (the “SEC”)
to file this Agreement, and further consents to the filing of the Agreement, if so required in the Company’s discretion.
In the event that the filing of this Agreement is so required, the Parties shall agree in good faith what parts of the Agreement
the Company should request the SEC to be kept confidential in light of the confidential information included in such parts on the
one hand and the type of information the SEC agrees to redact from agreements such as the Agreement on the other hand.

 

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		6.2.	Non-Compete.

 

During the Option Period and
thereafter, provided that the Option was exercised by the Company in accordance with the terms hereof, for an additional period
of four (4) years as of the Closing Date, Seller or any person or entity acting on its behalf shall not (except as provided in
this Agreement, Schedule 6.2, or any other Transaction Document):

 

		6.2.1.	Engage (whether as an owner, operator, manager, employee, officer, director, consultant, advisor,
representative or otherwise), directly or indirectly anywhere in the world (including each and every county thereof as if individually
named herein) in any business in competition with the Company; provided that ownership of less than 5% of the outstanding stock
of any publicly-traded corporation shall not be deemed to be engaging solely by reason thereof in any of its business and shall
not be a violation of the provisions hereof.

 

		6.2.2.	Contact, encourage or solicit any consultant, independent contractor, agent, lessor, licensor,
supplier, investigator, distributor, reseller, or other business associate who is employed or engaged by the Company (other than
by a general solicitation directed to the public at large through the mailing or other means of distribution of a letter, pamphlet,
handbill, circular or other written or printed media), to terminate or modify his, her or its respective employment, engagement
or business relationship therewith;

 

		6.2.3.	Contact, encourage or solicit any employee, who is employed or engaged by the Company (other than
by a general solicitation directed to the public at large through the mailing or other means of distribution of a letter, pamphlet,
handbill, circular or other written or printed media) to terminate, modify or cease to provide any services to the Company, or
otherwise to be engaged by Seller or provide it any services; and

 

		6.2.4.	Contact, encourage, or solicit any customer of the Company to terminate or modify such customer’s
business relationship with the Company.

 

		6.3.	Exclusivity.

 

From the date hereof and until
the earlier of termination or expiration hereof and the Closing Date, Seller and its respective officers, directors, employees,
agents or other representatives acting on its behalf, shall not consummate any transaction involving the sale, transfer, license,
pledge or other disposition, as the case may be, of any assets comprising of the Acquired IP of the Seller (a "Restricted
Transaction"), or negotiate or encourage or solicit any offers for, respond to any unsolicited offers for, or conduct
any negotiations with any other person, in respect of any Restricted Transaction.

 

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		7.	Indemnification

 

The Company shall indemnify and
hold Seller and its directors, officers, employees, agents, consultants and counsel ("Seller Indemnitees") harmless from
and against any and all liabilities, damages, losses, costs or expenses (including reasonable attorneys’ and professional
fees and other expenses of litigation and arbitration) resulting from a claim, suit or proceeding brought by a third party against
a Seller Indemnitee, arising from or occurring as a result of (i) any practice by the Company of the licenses granted or Acquired
IP herein, (ii) the development, manufacture, use, importation, marketing, sale and commercialization by the Company, its Subsidiaries
or any Sublicensee of any Product, except, in each case, to the extent caused by the willful misconduct, and or gross negligence,
and or violation of law of the Seller.

 

		8.	Closing

 

Within 7 business days following
the Exercise Notice date or at such other time and date as may be agreed by Seller and the Company in writing (the "Closing
Date"), the Closing shall take place and the Seller shall transfer to the Company appropriate assignment forms required
in order to give effect to the sale and assignment of the Acquire IP to the Company, in such forms reasonably satisfactory to the
Company;

 

		9.	Term and Termination

 

		9.1.	This Agreement shall commence upon the date hereof and shall remain in effect unless and until
(i) the expiration of the Option Period, to the extent the Company did not exercise the Option until such date; or (ii) terminated
in accordance with the terms of this Section 8 or as otherwise specifically set forth in this Agreement.

 

		9.2.	The Company shall have the right to terminate this Agremeent at any time prior to the exercise
of the Option, upon a written notice to the Seller.

 

		9.3.	The failure by either party to comply with any of the obligations contained in this Agreement shall
entitle the non-breaching party to give notice to have the default cured. If such default is not cured within ten (10) days after
the receipt of such notice, or diligent steps are not taken to cure or if by its nature such default could not be cured within
ten (10) days, the notifying party shall be entitled, without prejudice to any of its other rights conferred on it by this Agreement,
and in addition to any other remedies that may be available to it by law, pursuant to this Agreement or otherwise, to terminate
this Agreement.

 

		9.4.	The provisions under which this Agreement may be terminated shall be in addition to any and all
other legal remedies which either party may have for the enforcement of any and all terms hereof, and do not in any way limit any
other legal remedy such party may have, except as specifically specified hereunder. Termination, relinquishment or expiration of
this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of any party prior
to such termination, relinquishment or expiration. Such termination, relinquishment or expiration shall not relieve any party from
obligations which are expressly indicated to survive termination or expiration of this Agreement. All obligations which are not
expressly indicated to survive termination or expiration of this Agreement shall terminate upon the termination or expiration of
this Agreement.

 

		9.5.	In the event that the Company fails to comply with any of its financial obligations hereunder,
and provided that Seller have sent the Company a written notice to that effect, stating the circumstances of such incompliance,
and the Company did not cure such incompliance within 90 days from the of receipt by it of such notice or the Company rejected
the veracity of the content of such notice, then, the Parties shall submit the said dispute to the New York International Arbitration
Centre in New York, USA, pursuant to its rules and regulations.

 

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		10.	Miscellaneous

 

		10.1.	Non-Transferability. 

 

Unless otherwise agreed in
writing, during the Option Period neither party shall assign, sub-license, pledge, lien or otherwise dispose of or transfer any
right under this Agreement.

 

		10.2.	Agreement Binding On Successors.

 

This Agreement shall be binding
on and shall inure to the benefit of the parties hereto, and their heirs, administrators, successors, and assigns.

 

		10.3.	Relationship of the Parties.

 

This Agreement shall not be
construed to make any party hereto the agent, partner, joint venture or legal representative of the other for any purpose whatsoever.
Neither party hereto is granted any express or implied right or authority to assume or create any obligation or responsibility
on behalf of or in the name of the other party, except as herein otherwise expressly provided.

 

		10.4.	Governing Law and Jurisdiction.

 

This Agreement shall be governed
by the Laws of the State of Delaware, without regard to its rules of private international Law, and each party irrevocably submits
to the non-exclusive jurisdiction of the State of New York.

 

		10.5.	Entire Agreement.

 

This Agreement constitutes
the entire agreement between the parties with respect to the subject matter hereof, and cancels and supersedes all prior negotiations,
understandings and agreements relating to the subject matter hereof.

 

		10.6.	Amendments in Writing.

 

This Agreement may not be amended
except pursuant to a written instrument signed by each of the parties.

 

		10.7.	Notices.

 

All notices or other communications
hereunder shall be in writing and shall be given in person, by registered mail (registered international air mail if mailed internationally),
by an overnight courier service which obtains a receipt to evidence delivery, or by facsimile or e-mail transmission (provided
that written confirmation of receipt is provided) with a copy by mail, addressed as set forth below:

 

	If to the Company:	Advanced Inhalation Therapies (AIT) Ltd.
	 	2 Derech Meir Weisgal,
	 	Rehovot 7632605, Israel
	 	Attention: Amir Avniel

 

	With a copy to (which shall not constitute notice):	Oded Har-Even
	 	Attorney at Law
	 	Sullivan & Worcester LLP
	 	ZAG/S&W 1633 Broadway, New York,
    NY 10019, USA

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	14	 

     

    

 

	If to Seller:	Pulmonox Technologies Corporation.
	 	#102, 10835 - 120 Street
	 	Edmonton, Alberta, Canada
	 	T5H 3P9
	 	Attention: Doug Hole

 

	With
    a copy to (which shall not constitute notice):	Hugh MacNaught
	 	2738 Saint Andrews Ave.
	 	North Vancouver, BC, V7N 1Z3, Canada

 

or such other address as any
Party may designate to the other in accordance with the aforesaid procedure. All communications delivered in person or by courier
service shall be deemed to have been given upon delivery, those given by facsimile or e-mail transmission shall be deemed given
on the Business Day following transmission with confirmed answer back, and all notices and other communications sent by registered
mail (or air mail if the posting is international) shall be deemed given ten (10) days after posting.

 

		10.8.	Expenses.

 

As between the Parties, each
Party shall be responsible for the fees and expenses (including legal, accountants’ and financial advisors’ fees and
expenses) incurred by it in connection with the preparation, negotiation, execution and delivery of this Agreement and any document
required to be executed by any of such agreements, and otherwise in connection with the consummation of the transaction contemplated
hereby.

 

		10.9.	Delays or Omissions; Waiver.

 

The rights of a Party may be
waived by such Party only in writing and specifically; the conduct of any one of the Parties shall not be deemed a waiver of any
of its rights pursuant to this Agreement or as a waiver or consent on its part as to any breach or failure to meet any of the terms
of this Agreement or as an amendment hereto. A waiver by a Party in respect of a breach by the other Party of its obligations shall
not be construed as a justification or excuse for a further breach of its obligations.

 

No delay or omission to exercise
any right, power, or remedy accruing to any Party upon any breach or default by the other under this Agreement shall impair any
such right or remedy nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein or in
any similar breach or default thereafter occurring.

 

		10.10.	Counterparts.

 

This Agreement may be executed
in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the
same instrument. A signed Agreement received by a Party via facsimile or electronic mail will be deemed an original, and binding
upon the Party which signed it.

 

		10.11.	No Third-Party Beneficiaries.

 

Except as otherwise set forth
herein, nothing in this Agreement shall create or confer upon any Person, other than the Parties or their respective successors
and permitted assigns, any rights, remedies, obligations or liabilities.

 

The Parties to this Agreement have caused
this Agreement to be executed and delivered as of the date above first written.

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	15	 

     

    

 

SELLER:

 

	/s/ Doug Hole	 

PULMONOX TECHNOLOGIES CORPORATION

 

By: Doug Hole

Title: Chairman

 

COMPANY:

 

	/s/ Amir Avniel	 

ADVANCED INHALATION THERAPIES (AIT) LTD.

 

By: Amir Avniel

Title: Chief Executive Officer

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	16	 

     

    

 

Schedule 1.1 (Acquired IP)

 

Pulmonox Technologies
Corporation (3701)

 

		 	Country	 	 	 	 	 	 	 	 	 	 	 	Status	 	 	 	Action
	Our Ref. 	 	File No.	 	Application	 	Publication	 	Grant	 	Renewal	 	Priority	 	Property Type	 	Assignee 	 	Req'd
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P002	 	Topical Nitric Oxide as a Treatment of Autoimmune Diseases	 	Nitric Bio	 	 
	 	 	United States	 	11/974,247	 	 	 	 	 	 	 	Abandoned	 	Abandoned	 	Viasys	 	 
	 	 	3701—2US	 	12—Oct—07	 	 	 	 	 	 	 	Failure to	 	30—Jun—13	 	Pulmonox	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Respond to	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Office Action	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P003	 	System and Elements for Managing Therapeutic Gas Administration to a Spontaneously Breathing Non Ventilated Patient	 	 
	 	 	United States	 	09/688,229	 	 	 	6,668,828	 	30—Jun—15	 	 	 	Granted	 	Pulmonox	 	30—Jun—15
	 	 	3701—3US	 	16—Oct—00	 	 	 	30—Dec—03	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P004	 	System and Method for Delivering Therapeutic Gas to a Patient	 	 	 	 
	 	 	United States	 	10/140,304	 	 	 	6,955,171	 	18—Apr—17	 	 	 	Granted	 	Pulmonox	 	 
	 	 	3701—4US	 	16—Oct—00	 	 	 	18—Oct—05	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P005	 	System for use in Administrating Therapeutic Gas to a Patient	 	 	 	 
	 	 	United States	 	10/351,755	 	 	 	7,255,105	 	14—Feb—15	 	Late Fee due	 	Granted	 	Pulmonox	 	14—Aug—15
	 	 	3701—5US	 	27—Jan—03	 	 	 	14—Aug—07	 	 	 	14—Aug—15	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P006	 	Device and Method for Treatment of Wounds with Nitric Oxide	 	 	 	 
	 	 	United States	 	11/021,109	 	 	 	7,122,018	 	17—Apr—14	 	Abandoned:	 	Abandoned	 	Sensormedics	 	 
	 	 	3701—6US	 	26—Dec—00	 	 	 	17—Oct—06	 	 	 	Failure to pay	 	17—Oct—14	 	Pulmonox	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Maintenance fee	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P007	 	Method and Apparatus for Delivery of Inhaled Nitric Oxide to Spontaneous—Breathing and Mechanically—Ventilated Patients with Intermittent Dosing	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	United States	 	11/234,849	 	 	 	7,516,742	 	14—Oct—16	 	 	 	Granted	 	Cardinal Health	 	 
	 	 	3701—7US	 	24—Nov—99	 	 	 	14—Apr—09	 	 	 	 	 	 	 	Pulmonox	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P008	 	Device and Method for Treatment of Wounds with Nitric Oxide	 	 	 	 
	 	 	United States	 	11/487,600	 	7,520,866	 	21—Oct—16	 	 	 	 	 	Granted	 	Sensormedics	 	 
	 	 	3701—8US	 	26—Dec—00	 	39924	 	 	 	 	 	 	 	 	 	Pulmonox	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P009	 	Nitric Oxide Decontamination of the Upper Respiratory Tract	 	 	 	 
	 	 	United States	 	12/004,514	 	 	 	8,043,252	 	25—Apr—19	 	 	 	Granted	 	Pulmonox	 	 
	 	 	3701—9US	 	20—Dec—07	 	 	 	25—Oct—11	 	 	 	 	 	 	 	Sensormedics	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P010	 	Intermittent Dosing of Nitric Oxide Gas	 	 	 	 
	 	 	United States	 	11/598,221	 	 	 	7,955,294	 	07—Dec—18	 	 	 	Granted	 	Sensormedics	 	 
	 	 	3701—10US	 	10—Nov—06	 	 	 	07—Jun—11	 	 	 	 	 	 	 	Pulmonox	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P011	 	Nitric Oxide Gas (gNO) as a Cosmetic and Wound Healing Agent	 	 	 	 
	 	 	United States	 	11/497,557	 	 	 	 	 	 	 	Abandoned	 	Abandoned	 	Pulmonox	 	 
	 	 	3701—11US	 	08—Jul—03	 	 	 	 	 	 	 	Failure to	 	17—Mar—11	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Respond to	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Office Action	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P012	 	Use of High Dose Concentration of Gaseous Nitric Oxide	 	 	 	 
	 	 	United States	 	11/704,602	 	 	 	 	 	 	 	Abandoned	 	Abandoned	 	Pulmonox	 	 
	 	 	3701—12US	 	09—Feb—07	 	 	 	 	 	 	 	Failure to	 	01—Jan—11	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Respond to	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Office Action	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P013	 	System and Elements for Managing Therapeutic Gas Administration
    to a Spontaneously Breathing Non—Ventilated Patient	 	Pulmonox	 	 
	 	 	United States	 	10/691,649	 	 	 	6,986,351	 	17—Jul—17	 	 	 	Granted	 	 	 	 
	 	 	3701—13US	 	16—Oct—00	 	 	 	17—Jan—06	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P014	 	Methods and Devices for the Delivery of Therapeutic Gases Including Nitric Oxide	 	 	 	 
	 	 	United States	 	11/713,344	 	 	 	8,079,998	 	20—Jun—15	 	Late Fee due	 	Abandoned	 	Pulmonox	 	20—Dec—15
	 	 	3701—14US	 	02—Mar—07	 	 	 	20—Dec—11	 	 	 	20—Dec—15	 	* until late fee	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	payment	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	** Late Fee	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Payment to be	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	made	 	 	 	 

 

    	
 	17	 

     

    

 

Schedule 1.1 (Acquired IP)

 

	 	 	United States 2

3701—14USD	 	13/289,956

02—Mar—07	 	          	 	 	 	 	 	Abandoned Failure to Respond to Office Action	 	Abandoned

27—Jun—14	 	Pulmonox	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P015	 	Device for Administration of Nitric Oxide to Horses Spontaneously Breathing
	 	 	United States	 	10/315,539	 	 	 	6,920,876	 	26—Jan—17	 	 	 	Granted	 	Pulmonox	 	 	 
	 	 	3701—15US	 	10—Dec—02	 	 	 	26—Jul—05	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P016	 	Nitric Oxide Decontamination of the Upper Respiratory Tract
	 	 	United States	 	11/107,618	 	 	 	7,335,181	 	26—Aug—15	 	 	 	Granted	 	Pulmonox	 	26—Aug—15	 
	 	 	3701—16US	 	26—Dec—00	 	 	 	26—Feb—08	 	 	 	 	 	 	 	Sensormedics	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P017	 	Use of Exogenous Gaseous Nitric Oxide in the Treatment and Disinfection of Biofilms
	 	 	United States	 	10/953,827	 	 	 	7,485,324	 	03—Aug—16	 	 	 	Granted	 	Pulmonox	 	 	 
	 	 	3701—17US	 	29—Sep—04	 	 	 	03—Feb—09	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P018	 	Use of Nitric Oxide Gas in an Extracorporeal Circuitry to Treat Blood Plasma
	 	 	United States	 	11/445,965	 	 	 	7,531,133	 	12—Nov—16	 	 	 	Granted	 	Pulmonox	 	 	 
	 	 	3701—18US	 	01—Jun—06	 	 	 	12—May—09	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P019	 	Use of Inhaled Gaseous Nitric Oxide as a Mucolytic Agent or Expectorant
	 	 	United States	 	11/595,108	 	 	 	8,518,457	 	27—Feb—17	 	 	 	Granted	 	Pulmonox	 	 	 
	 	 	3701—19US	 	11—May—05	 	 	 	27—Aug—13	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	United States 2

3701—19USD	 	14/010,421

11—May—05	 	 	 	 	 	 	 	Restriction Requirement due 21 Mar 2015	 	Abandoned

16—Jan—15	 	Pulmonox	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P020	 	Device and Method for Treatment of Surface Infections with Nitric Oxide
	 	 	United States	 	13/006,218	 	 	 	8,795,222	 	05—Aug—14	 	 	 	Granted	 	Sensormedics	 	 	 
	 	 	3701—20US	 	31—Oct—07	 	 	 	05—Aug—14	 	 	 	 	 	 	 	Pulmonox	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3701P021	 	Intermittent Dosing of Nitric Oxide Gas
	 	 	United States	 	13/369,205	 	 	 	Issue Notification sent July 15, 2015	 	Granted	 	Pulmonox	 	 	 
	 	 	3701—21US	 	11—May—05	 	 	 	 	 	 	 	 	 	 	 	Sensormedics	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Use of gaseous nitric oxide as an anti—cancer agent
	 	 	United States	 	11/704,791	 	 	 	 	 	 	 	 	 	Abandoned	 	Pulmonox	 	 	 
	 	 	 	 	07—Feb—09	 	 	 	 	 	 	 	 	 	25—Apr—11	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Method and Apparatus for Treatment of Respiratory Infections by Nitric Oxide Inhalation	 	 	 	Abandoned	 	Pulmonox	 	 	 
	 	 	 	 	11/591,373	 	 	 	 	 	 	 	 	 	16—Mar—09	 	 	 	 	 
	 	 	 	 	01—Nov—06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Nitric oxide as an anti—viral agent, vaccine and vaccine adjuvant
	 	 	 	 	11/601,908	 	 	 	 	 	 	 	 	 	Abandoned	 	Pulmonox	 	 	 
	 	 	 	 	20—Nov—06	 	 	 	 	 	 	 	 	 	28—May—09	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Multi—gas delivery system
	 	 	 	 	10/148,967	 	 	 	 	 	 	 	 	 	Abandoned	 	Pulmonox	 	 	 
	 	 	 	 	07—Jun—02	 	 	 	 	 	 	 	 	 	25—Jul—05	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Method and apparatus for treatment of respiratory infections by nitric oxide inhalation
	 	 	 	 	11/211,055	 	 	 	 	 	 	 	 	 	Abandoned	 	Pulmonox	 	 	 
	 	 	 	 	23—Aug—05	 	 	 	 	 	 	 	 	 	16—Mar—09	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Intermittent Dosing Of Nitric Oxide Gas
	 	 	 	 	11/596,027	 	 	 	 	 	 	 	 	 	Abandoned	 	Sensormedics	 	 	 
	 	 	 	 	10—Nov—06	 	 	 	 	 	 	 	 	 	10—Feb—11	 	Pulmonox	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DEVICE AND METHOD FOR TREATMENT OF WOUNDS WITH NITRIC OXIDE
	 	 	 	 	11/982,430	 	 	 	 	 	 	 	 	 	Abandoned	 	Sensormedics	 	 	 
	 	 	 	 	31—Oct—07	 	 	 	 	 	 	 	 	 	31—Jan—11	 	Pulmonox	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	INTERMITTENT DOSING OF NITRIC OXIDE GAS
	 	 	 	 	13/007,273	 	 	 	 	 	 	 	 	 	Abandoned	 	Sensormedics	 	 	 
	 	 	 	 	14—Jan—11	 	 	 	 	 	 	 	 	 	03—Oct—11	 	Pulmonox	 	 	 

 

    	
 	18	 

     

    

 

Schedule 1.1 (Acquired IP)

 

Description of Proprietary Nature of Trade Secrets

 

	Device Technology	 	AeroNOx Device	 	ViaNOx-DS  Device	 	CidaNOx-II  Device	 	Pulmonox Patch

Device
	 	 	 	 	 	 	 	 	 
	Proprietary nature of the Technology Transfer	 	Experience and insight into the art of Nitric Oxide Engineering Design, Engineering build Know-How, efficient and effective standardization for safety and performance, Regulatory Approval, Product Build and Quality Control.	 	Experience and insight into the art of Nitric Oxide Engineering Design, Engineering build Know-How, efficient and effective standardization for safety and performance, Regulatory Approval, Product Build and Quality Control.	 	Experience and insight into the art of Nitric Oxide Engineering Design, Engineering build Know-How, efficient and effective standardization for safety and performance, Regulatory Approval, Product Build and Quality Control.	 	Experience and insight into the art of Nitric Oxide Engineering Design, Engineering build Know-How, efficient and effective standardization for safety and performance, Regulatory Approval, Product Build and Quality Control.
	 	 	 	 	 	 	 	 	 
	Background	 	Nitric Oxide must be delivered by an accurate and controlled means where NO and NO2 can be closely monitored. The use of Nitric Oxide as a drug required a Regulatory Approved Device specific to the desired Treatment parameters.	 	Nitric Oxide must be delivered by an accurate and controlled means where NO and NO2 can be closely monitored. The use of Nitric Oxide as a drug required a Regulatory Approved Device specific to the desired Treatment parameters.	 	Nitric Oxide must be delivered by an accurate and controlled means where NO and NO2 can be closely monitored. The use of Nitric Oxide as a drug required a Regulatory Approved Device specific to the desired Treatment parameters.	 	Nitric Oxide can be delivered by an accurate and controlled means in a highly portable manner suitable where larger devices may not be practical. The use of Nitric Oxide as a Drug requires a Regulatory Approved Device specific to the desired Treatment parameters.

 

    	
 	19	 

     

    

 

Schedule 1.1 (Acquired IP)

 

	Treatment Parameters	 	Constant flow Nitric Oxide. Highly portable Delivery System. Designed for inhaled applications of Nitric Oxide including Premature Infant use.	 	Phasic flow Nitric Oxide to match ventilator flow. Highly portable Delivery System. Designed for inhaled applications of Nitric Oxide for Adults.	 	Constant flow Nitric Oxide. Highly portable Delivery System. Designed for topical application of Nitric Oxide to the surface of the skin for Treatment of Biofilms.	 	Delivery of Nitric Oxide by means of a small portable Device for a range of application criteria.
	 	 	 	 	 	 	 	 	 
	Device Application	 	Insight into Device application and use in Nitric Oxide Medical Applications.	 	Insight into Device application and use in Nitric Oxide Medical Applications.	 	Insight into Device application and use in Nitric Oxide Medical Applications.	 	Insight into Device application and use in Nitric Oxide Medical Applications.
	 	 	 	 	 	 	 	 	 
	Design Insight	 	Insight in to considerations in Device Design.	 	Insight in to considerations in Device Design.	 	Insight in to considerations in Device Design.	 	Insight in to considerations in Device Design.
	 	 	 	 	 	 	 	 	 
	Device Prototype	 	Prototype and enabling insight into Device Construction and Production.	 	Prototype and enabling insight into Device Construction and Production.	 	Prototype and enabling insight into Device Construction and Production.	 	Prototype and enabling insight into Device Construction and Production.
	 	 	 	 	 	 	 	 	 
	Device Manufacture	 	Pulmonox have manufactured commercial Device Products in house.	 	Pulmonox have manufactured commercial Device Products in house.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Device Documentation including Operations Manual	 	Documentation necessary for operation, training and Device Servicing	 	Documentation necessary for operation, training and Device Servicing	 	Documentation necessary for operation, training and Device Servicing	 	Documentation necessary for operation, training and Device Servicing

 

    	
 	20	 

     

    

 

Schedule 1.1 (Acquired IP)

 

	Device Approval Documentation	 	This
    Device  has Been Health Canada and FDA approved. Enabling information to provide rapid Regulatory Approval. Enabling
    information includes scientific  information
    necessary for the Regulatory Body to evaluate the Safety and Effectiveness of the Device to  obtain marketing
    clearance.	 	This Device  has Been Health Canada and FDA approved. Enabling information to provide rapid Regulatory Approval. Enabling information includes scientific information necessary for the Regulatory Body to evaluate the Safety and Effectiveness of the Device to  obtain marketing clearance.	 	Assistance with information necessary for the Regulatory Body to evaluate the Safety and Effectiveness of the Device to  obtain marketing clearance.	 	Assistance with information necessary for the Regulatory Body to evaluate the Safety and Effectiveness of the Device to  obtain marketing clearance.

 

	Nitric Oxide Drug Manufacture Technology	 	Nitric Oxide Drug Manufacture Technology	 	Nitric Oxide Drug Manufacture Process and Equipment	 	Active Product Ingredient (API)	 	Drug Master  File (DMF)
	 	 	 	 	 	 	 	 	 
	Proprietary nature of the Technology Transfer	 	Experience and insight into the art of Nitric Oxide, Engineering Design, Engineering build Know-How, efficient and effective standardization for Safety and Performance, Regulatory Approval, Process Equipment build and Quality Control.	 	Engineering Design and Operational Data for the production of High Purity Nitric Oxide.  Process Equipment Access for Duplication. Process Documentation including Operations Manual. From validated operational process.	 	Test Certification Report on Nitric Oxide produced with Engineering Design, and process manufacturing Equipment to be inspected and duplicated. Medical Grade Nitric Oxide Gas has been produced.	 	Documentation toward the development of a Drug Master File specific to Asia Regulatory Authorities and submission.

 

    	
 	21	 

     

    

 

Schedule 1.1 (Acquired IP)

 

	Background 	 	Nitric Oxide has the molecular formula NO and is the exact same molecule for all Drugs. In order for Nitric Oxide to be used as a Drug however it must be of high purity produced in a manner where it can be shown there are no unknown pollutants.	 	The manufacture of Nitric Oxide must be under a controlled and repeatable process. Operational Procedures must be outlined and followed in a specific manner.	 	Active Product Ingredient (API) is the substance in a pharmaceutical Drug that is biologically active. The method of manufacture of Nitric Oxide must deliver the desired Drug ingredient as validated through detailed testing techniques and procedures,	 	Drug Master File or DMF is a document prepared by a Pharmaceutical Manufacturer for the appropriate Regulatory Authority in the intended Drug market. The document provides the Regulatory Authority with confidential, detailed information about facilities, processes, or articles used in the manufacturing, processing, packaging, and storing of  Human Drugs.

 

	Drug Indication

Strategies	 	Anti-Bacterial	 	Anti-Viral	 	Anti-Biofilm	 	Mucolytic
	 	 	 	 	 	 	 	 	 
	Proprietary nature of the Technology Transfer	 	Experience and insight into the art of Nitric Oxide toward Regulatory Approval as a new Drug treatment for Anti- Bacterial treatments.	 	Experience and insight into the art of Nitric Oxide toward Regulatory Approval as a new Drug treatment for Anti- Viral treatments.	 	Experience and insight into the art of Nitric Oxide toward Regulatory Approval as a new Drug treatment for Anti- Biofilm treatments.	 	Experience and insight into the art of Nitric Oxide toward Regulatory Approval as a new Drug treatment for Mucolytic treatments.

 

    	
 	22	 

     

    

 

Schedule 2.3.2: Warrant

 

Terms specified in article 2.3.2.

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	23	 

     

    

 

Schedule 2.8: Tangible Assets

 

Archived physical assets of the Seller available
on an as-is where-is basis

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	24	 

     

    

 

Schedule 4.7.1 H: Acquired Products

 

ViaNox-DS

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	25	 

     

    

 

Schedule 6.2: Non-Compete Exceptions

 

Person: Hugh MacNaught

 

IP:

 

		1.	Use of nitric oxide to address the effects of nitric oxide deficient blood used in transfusions. The levels of nitric oxide
in stored blood begin to decline immediately upon collection. Transfusion of stored blood may result in further vasoconstriction
in the patient. Treatment with nitric oxide at the time of or immediately prior to transfusion will provide a vasodilatory effect.

 

		2.	Use of nitric oxide to improve
outcomes for free flap surgery. Free flap surgery is a method of reconstruction where tissue in one place is used to reconstruct
a defect in another place. The flap is removed with an artery and vein but at the time of being transferred it loses its blood
supply. It is then attached to an artery and vein at the reconstruction site. It is possible the artery or vein may stop working
in which case the flap tissue dies. Flap problems are most likely within the first 48 hours following the procedure and are rare
after 4 days. Treatment with nitric oxide may provide sufficient vasodilation to enable better function of the artery and vein
attached to the graft, as well as the wound site in general.

 

    	IP Acquisition Option Agreement – AIT - Pulmonox
	26

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