Document:

Exhibit 10.19

 

CONFIDENTIAL TREATMENT REQUESTED. Confidential portions of this
document have been redacted and have been separately filed with the Commission.

 

SUBLICENSE AGREEMENT

 

THIS SUBLICENSE AGREEMENT
(the “Agreement”) is dated as of May 26, 2016 (the “Effective Date”) by and between Checkpoint
Therapeutics, Inc, a Delaware corporation with its place of business at 2 Gansevoort Street, 9th Floor, New York, New
York 10014 (“Checkpoint”), and TG Therapeutics, Inc, Inc., a Delaware corporation with its place of business
at 2 Gansevoort Street, 9th Floor, New York, New York 10014 (“TGTX”). Checkpoint, on the one hand,
and TGTX, on the other hand, shall each be referred to herein as a “Party” or, collectively, as the “Parties.”

 

RECITALS:

 

WHEREAS, Checkpoint
is party to that certain license agreement (the “License Agreement”) dated the date hereof with Jubilant Biosys Limited
(“Licensor”); and

 

WHEREAS, Jubilant
is the owner of certain rights in Licensor Technology; and

 

WHEREAS, Jubilant
has licensed rights to the Licensor Technology to Checkpoint; and

 

WHEREAS, Checkpoint
is permitted under Section 2.1 of the License Agreement to grant sublicenses of the rights granted to it under the Licensor Technology;
and

 

WHEREAS, TGTX is
engaged in the research, development, manufacturing and commercialization of pharmaceutical products, and TGTX is interested in
developing and commercializing products containing or comprising the Compounds; and

 

WHEREAS, TGTX desires
to sublicense from Checkpoint, and Checkpoint wishes to sublicense to TGTX, on an exclusive basis, the right to use Licensor Technology
to Develop and Commercialize products containing the Compounds in the Territory and for a defined field of use.

 

NOW, THEREFORE,
in consideration of the foregoing and of the various promises and undertakings set forth herein, the Parties agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Unless otherwise specifically
provided herein, the following terms shall have the following meanings:

 

1.1         “Abandoned
Patent” is defined in Section 6.1(b).

 

1.2         “Abandoned
Terminated Country” is defined in Section 6.1(b).

 

    	 	 

     

    

 

1.3         “Abandonment”
or “Abandon” is defined in Section 6.1(b).

 

1.4         “Affiliate”
means a Person or entity that controls, is controlled by or is under common control with a Party, but only for so long as such
control exists. For the purposes of this Section 1.4, the word “control” (including, with correlative meaning,
the terms “controlled by” or “under common control with”) means the actual power,
either directly or indirectly through one or more intermediaries, to direct the management and policies of such Person or entity,
whether by the ownership of at least 50% of the voting stock of such entity, or by contract or otherwise.

 

1.5         “BLA”
means a Biologics License Application under the United States’ Public Health Services Act and Federal Food, Drug and Cosmetics
Act, each as amended, and the regulations promulgated thereunder, or a comparable filing seeking Regulatory Approval in any country.

 

1.6         “Business
Day” means any day other than Saturday, Sunday, or a day that is a federal legal holiday in the U.S.

 

1.7         “Calendar
Quarter” means each three -month period commencing January 1, April 1, July 1 or October 1, provided
however that (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the end of the first full
Calendar Quarter thereafter, and (b) the last Calendar Quarter of the Term shall end upon the termination or expiration of
this Agreement.

 

1.8         “Calendar
Year” means the period beginning on the 1st of January and ending on the 31st of December of the same year, provided
however that (a) the first Calendar Year of the Term shall commence on the Effective Date and end on December 31 of the
same calendar year as the Effective Date, and (b) the last Calendar Year of the Term shall commence on January 1 of the
Calendar Year in which this Agreement terminates or expires and end on the date of termination or expiration of this Agreement.

 

1.9         “cGCP”
means current Good Clinical Practices (a) as promulgated under 21 C.F.R. Parts 11, 50, 54, 56, 312 and 314, as the same may
be amended or re-enacted from time to time and (b) required by law in countries other than the United States where clinical
studies are conducted.

 

1.10       “cGLP”
means current Good Laboratory Practices (a) as promulgated under 21 C.F.R. Part 58, as the same may be amended or re-enacted
from time to time and (b) as required by law in countries other than the United States where non-clinical laboratory studies
are conducted.

 

1.11       “cGMP”
means current Good Manufacturing Practices (a) as promulgated under 21 C.F.R. Parts 210 and 211, as the same may be amended
or re-enacted from time to time and (b) as required by law in countries other than the United States where pharmaceutical
product Manufacturing is conducted.

 

1.12       “Clinical
Trial” means any Phase 1 Trial, Phase 2 Trial, Phase 3 Trial, or Post-Marketing Study, as applicable.

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1.13       “Combination
Product” means (a) a product containing a Licensed Product together with one or more other active ingredients that
have independent biologic or chemical activity when present alone that are sold as a single unit, or (b) a Licensed Product
together with one or more products, devices, pieces of equipment or components thereof, that are sold as a single package at a
single price.

 

1.14       “Commercialization”
or “Commercialize” means (a) any and all activities undertaken at any time for a particular Licensed Product
and that relate to the manufacturing, marketing, promoting, distributing, importing or exporting for sale, offering for sale, and
selling of the Licensed Product, (b) seeking Pricing Approvals and Reimbursement Approvals for such Licensed Product, (c) Post-Marketing
Studies and (d) interacting with Regulatory Authorities regarding the foregoing (a) through (c).

 

1.15       “Commercially
Reasonable Efforts” means the carrying out of obligations or tasks in a manner consistent with the efforts a Party (which
in no event shall be less than the level of efforts and resources standard in the pharmaceutical industry for a company similar
in size and scope to such Party) consistent with its normal business practices devotes to research, development or marketing of
a pharmaceutical product or products of similar market potential, profit potential resulting from its own research efforts or for
its own benefit, taking into account technical, regulatory and intellectual property factors, target product profiles, product
labeling, past performance, costs, economic return, the regulatory environment and competitive market conditions in the therapeutic
or market niche. Sublicensees shall be measured to the standard of Commercially Reasonable Efforts of the Party from whom they
directly or indirectly licensed.

 

1.16       “Competing
Product” means BRD4 inhibitors.

 

1.17       “Compound”
means (i) the compounds set forth on Schedule 1 attached hereto and (ii) any all compounds structurally related to such
compounds that are Covered by Licensor Patents set forth in Schedule 2 hereto.

 

1.18       “Controlled”
means, with respect to (a) Patent Rights, (b) Know-How or (c) biological, chemical or physical material, that a
Party or one of its Affiliates owns or has a license or sublicense to such Patent Rights, Know-How or material (or in the case
of material, has the right to physical possession of such material) and has the ability to grant a license or sublicense to, or
assign its right, title and interest in and to, such Patent Rights, Know-How or material as provided for in this Agreement without
violating the terms of any agreement or other arrangement with any Third Party.

 

1.19       “Covered”
means that the use, manufacture, sale, offer for sale, development, commercialization or importation of the subject matter in question
by an unlicensed entity would infringe a Valid Claim of a Patent Right; provided that infringement of any Valid Claim of a pending
patent application shall be determined as if such Valid Claim were issued or granted.

 

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1.20       “Development”
or “Develop” means, with respect to a Licensed Product, (a) all non-clinical and clinical drug development
activities that are undertaken after the Effective Date up to and including the date of obtaining Regulatory Approval of such Licensed
Product including (i) the conduct of Clinical Trials, toxicology and pharmacology testing, test method development and stability
testing, process development (“Process Development”) (including the Manufacture of validation and engineering batches),
formulation development, delivery system development, quality assurance and quality control development, analytical method development,
human clinical studies and regulatory affairs activities and statistical analysis and report writing; (ii) the preparation of Clinical
Trial design and operations; and (iii) preparing and filing Drug Approval Applications, (b) all activities related to the
optimization of a commercial-grade Manufacturing process for the Manufacture of Licensed Product including, test method development
and stability testing, formulation, validation, productivity, trouble shooting and next generation formulation, process development,
Manufacturing scale-up, development-stage Manufacturing, and quality assurance/quality control development and (c) any and
all other activities that may be necessary or useful to obtain Regulatory Approval. When used as a verb, “Developing”
means to engage in Development and “Developed” has a corresponding meaning.

 

1.21       “Development
Inventions” shall mean any inventions, improvements and Know-how (i) developed, generated, discovered, conceived or reduced
to practice in whole or part by TGTX or its Affiliates, whether or not patentable, during the performance of the Development, relating
to the development, use or manufacture of a (x) Compound or (y) Licensed Product, but only such distinct unit of such Licensed
Product that contains no active ingredients other than Compounds, and (ii) solely owned by TGTX or its Affiliates. Development
Inventions excludes Research Inventions.

 

1.22       “Development
Milestones” means Milestones 1 through 5 in the table listing the Milestones in Section 5.2.

 

1.23       “Development
Patents” means all Patent Rights Controlled by TGTX or its Affiliates Covering Development Inventions.

 

1.24       “Development
Plan” means, with respect to a Compound and/or any Licensed Product, a high level non-binding written plan for, the Development
activities anticipated to be conducted by TGTX or its Affiliates for such Compound and/or Licensed Product, as such written plan
may be amended, modified or updated in accordance with Section 3.2. Topics that may be covered in the plan include (a) the
Clinical Trials that are expected to be conducted, and the expected timeline for conducting such Clinical Trials; (b) the
expected Drug Approval Applications to be required and prepared, and the expected timetable for making such Drug Approval Applications;
(c) the proposed timelines for Manufacturing, Manufacturing scale-up, formulation, filling and/or shipping of the Product,
and in each case the budgeted funding for such development activities.

 

1.25       “Development
Program” means the Development activities to be conducted by TGTX during the Term with respect to the Compounds.

 

1.26       “Development
Report” means with respect to a period, a report that summarizes: (a) significant Development activities conducted
during such period and results obtained with respect to Compounds and Licensed Products (including the status of and plans for
all Clinical Trials), (b) Significant Development Events applicable to the Compounds and/or Licensed Products, (c) a
summary of all Development Inventions conceived or reduced to practice by TGTX over such period, and (d) an estimate of the
expected timing of any Development Milestones with respect to the Licensed Products.

 

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1.27       “Drug
Approval Application” means, with respect to a Licensed Product in the Territory, an application for Regulatory Approval
for such product in a country in the Territory. For purposes of clarity, Drug Approval Application shall include, without limitation,
(a) an NDA or BLA (for U.S.) or MAA (for Europe); (b) a counterpart of an NDA, BLA or MAA in any country or region in
the Territory; and (c) all supplements (including supplemental applications such as sNDAs) and amendments to the foregoing.

 

1.28       “EMA”
means the European Medicines Agency or any successor agency.

 

1.29       “Expert”
is defined in Section 11.2.

 

1.30       “European
Commission” means the authority within the European Union that has the legal authority to grant Regulatory Approvals
in the European Union based on input received from the EMA or other competent Regulatory Authorities.

 

1.31       “EU”
means the member states of the European Union as of the Effective Date, as it is constituted on the Effective Date and as it may
be expanded from time to time after the Effective Date.

 

1.32       “FDA”
means the United States Food and Drug Administration, or a successor federal agency thereto.

 

1.33       “FD&C
Act” means that federal statute entitled the Federal Food, Drug, and Cosmetic Act and enacted in 1938 as Public Law 75-717,
as such may have been amended, and which is contained in Title 21 of the C.F.R. Section 301 et seq.

 

1.34       “Field”
means all prophylactic, palliative, therapeutic or diangnostic uses in humans or animals for the prevention, diagnosis and treatment
of hematological malignancies, including, without limitation, all Leukemia’s, Lymphoma’s, Multipe Myeloma and Waldenstrom’s
Macroglobulinemia.

 

1.35       “First
Commercial Sale” means, with respect to a Licensed Product in any country, the first commercial sale, transfer or disposition
of such Licensed Product in the Field in such country to a Third Party by TGTX, an Affiliate of TGTX and/or a Sublicensee, and
shall include and mean to occur where the first commercial sale, transfer or disposition of any Licensed Product in that country
takes place after Regulatory Approval therefor has been obtained in such country.

 

1.36       “GAAP”
means United States generally accepted accounting principles.

 

1.37       “Generic
Product” refers to any pharmaceutical product that is introduced in the applicable country by an entity other than TGTX
or its Affiliates or Sublicensees, which contains the same or equivalent (by FDA or other Regulatory Authority standards, on a
country-by-country basis) active pharmaceutical ingredient(s) as contained in a Licensed Product sold by TGTX or its Affiliate
or Sublicensee in such country, including any such pharmaceutical product that is AB-rated or determined to be bioequivalent to
a Licensed Product by the FDA or is otherwise substitutable for a Licensed Product or is similarly rated by other Regulatory Authorities
outside the United States, on a country-by-country basis. For the avoidance of doubt, a Generic Product will not necessarily infringe
a Licensor Patent.

 

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1.38       “Governmental
Body” means any: (a) nation, principality, state, commonwealth, province, territory, county, municipality, district
or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental
or quasi-governmental authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch,
office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or entity and
any court or other tribunal); (d) multi-national or supranational organization or body; or (e) individual, entity or
body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military or
taxing authority or power of any nature.

 

1.39       “Hatch-Waxman
Act” means the Drug Price Competition and Patent Term Restoration Act of 1984, as amended.

 

1.40       “Know-How”
means any scientific or technical information, results and data of any type whatsoever, in any tangible or intangible form whatsoever,
that is not in the public domain or otherwise publicly known, including, without limitation, discoveries, inventions, trade secrets,
databases, practices, protocols, regulatory filings, methods, processes, techniques, software, works of authorship, plans, concepts,
ideas, biological and other materials, reagents, specifications, formulations, formulae, data (including, but not limited to, pharmacological,
biological, chemical, toxicological, clinical and analytical information, quality control, trial and stability data), case reports
forms, data analyses, reports, studies and procedures, designs for experiments and tests and results of experimentation and testing
(including results of research or development), summaries and information contained in submissions to and information from ethical
committees, the FDA or other Regulatory Authorities, and manufacturing process and development information, results and data, whether
or not patentable, all to the extent not claimed or disclosed in a patent or pending patent application. The fact that an item
is known to the public shall not be taken to exclude the possibility that a compilation including the item, and/or a development
relating to the item, is (and remains) not known to the public. “Know-How” includes any rights including copyright,
moral, trade secret, database or design rights protecting such Know-How. “Know-How” excludes Patent Rights.

 

1.41       “IND”
shall mean any Investigational New Drug Application (including any amendments thereto) filed with the FDA pursuant to 21 C.F.R.
§321 before the commencement of clinical trials of a Licensed Product, or any comparable filings with any Regulatory Authority
in any other jurisdiction.

 

1.42       “Launch”
means the First Commercial Sale of a Licensed Product by TGTX.

 

1.43       “Law”
or “Laws” means all applicable laws, statutes, rules, regulations, ordinances and other pronouncements having
the binding effect of law of any Governmental Body.

 

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1.44       “Licensed
Product” means any product, that contains or comprises, in part or in whole, a Compound (alone or with one or more other
active ingredients), in any dosage form, formulation, presentation or package configuration.

 

1.45       “Licensor
Know-How” means any and all Know-How that (a) is Controlled by Licensor or any of its Affiliates as of the Effective
Date or at any time thereafter during the Term and (b) pertains to the Manufacture, use or sale of Licensed Products, including
Research Inventions (other than Research Patents).

 

1.46       “Licensor
Patents” means all Patent Rights (i) that are Controlled by Licensor or any of its Affiliates as of the effective
date of the License Agreement that Cover the Compound or a Licensed Product, or their Manufacture, sale or use, including the patent
applications listed on Schedule 2 attached hereto, (ii) consisting of Research Patents, and (iii) any Patent Rights arising
from the patents and patent applications described in the foregoing subclauses (i) and (ii).

 

1.47       “Licensor
Technology” means the Licensor Patents and the Licensor Know-How.

 

1.48       “Major
Countries” means Japan, the United States, England, Germany and France.

 

1.49       “Manufacture”
means all activities related to the production, manufacture, processing, filling, finishing, packaging, labeling, shipping and
holding of Licensed Product or any intermediate thereof, including process development, process qualification and validation, scale-up,
pre-clinical, clinical and commercial manufacture and analytic development, product characterization, stability testing, quality
assurance and quality control.

 

1.50       “Market”
means to promote, advertise, distribute, market, offer to sell and/or sell for purposes of a commercial sale, and “Marketing”
and “Marketed” have a corresponding meaning.

 

1.51       “Marketing
Plan” is defined in Section 3.7.

 

1.52       “Milestone”
is defined in Section 5.2.

 

1.53       “Milestone
Payment” is defined in Section 5.2.

 

1.54       
“NDA” means a New Drug Application filed with the FDA pursuant to 21 C.F.R. §200, as such regulations may
be amended from time to time, for approval by such agency for the sale of Licensed Products in the U.S., and all supplements filed
pursuant to the requirements of the FDA (including all documents, data and other information concerning a Licensed Product that
are necessary for, or included in, FDA approval to market a Licensed Product).

 

1.55       “Net
Sales” means the gross amount invoiced or otherwise charged by TGTX, its Affiliates and Sublicensees (“Selling
Party”) to Third Parties for sales of a Licensed Product, less:

 

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

 

		(b)	Discounts, refunds, rebates, chargebacks, retroactive price adjustments and any other allowances
given and taken which effectively reduce the net selling price, including, without limitation, Medicaid rebates, institutional
rebates or volume discounts;

 

		(c)	Product returns and allowances granted to such Third Party;

 

		(d)	Normal and customary administrative fees paid to group purchasing organizations (e.g., Medicare)
and government-mandated rebates;

 

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

 

		(f)	Any tax, tariff or duties properly imposed on the production, sale, delivery or use of the Licensed
Product, including, without limitation, sales, use, excise or value added taxes and customs and duties;

 

		(g)	Allowances for reasonable and verifiable distribution expenses; and

 

		(h)	Bad debt actually written off during the accounting period, as reported by the Selling Party in
accordance with GAAP, applied on a consistent basis.

 

Licensed Products are considered “sold”
when billed out or invoiced or, in the event such Licensed Products are not billed out or invoiced, when the consideration for
sale of the Products is received. If a sale, transfer or other disposition with respect to Licensed Products involves consideration
other than cash or is not at arm’s length, then the Net Sales from such sale, transfer or other disposition shall be calculated
from the average selling price for such Licensed Product during the Calendar Quarter in the country where such sale, transfer or
disposition took place. Notwithstanding the foregoing, Net Sales shall not include, and shall be deemed zero with respect to: (i) Licensed
Products used by TGTX, its Affiliates or Sublicensees for their internal use (without receipt of value in excess of the cost of
goods), (ii) the distribution of promotional samples of Licensed Products provided free of charge, (iii) Licensed Products provided
free of charge or at a price not to exceed the cost of goods by TGTX for Clinical Trials or research, development or evaluation
purposes, or (iv) sales of Licensed Products among TGTX and its Sublicensees and their respective Affiliates for resale (provided
such Affiliate or Sublicensee is not the end user).

 

Net Sales of any Licensed Product that is part
of a Combination Product shall be determined on a country-by-country basis as follows: the Net Sales of the Combination Product
(prior to application of the following adjustment) shall be multiplied by the fraction A/(A+B), where A is the net selling price
in such country of a Licensed Product without the additional active ingredient in the Combination Product, if sold separately for
the same dosage as contained in the Combination Product, and B is the net selling price in such country of any other active ingredients
in the combination if sold separately for the same dosage (or form) as contained in the Combination Product. All net selling prices
of the elements of such Combination Product shall be calculated as the average net selling price of the said elements during the
applicable accounting period for which the Net Sales are being calculated. In the event that, in any country, no separate sale
of either such above-designated Licensed Product (containing only such Licensed Product and no other active ingredients) or any
one or more of the active ingredients included in such Combination Product are made during the accounting period in which the sale
was made or if the net selling price for an active ingredient cannot be determined for an accounting period, Net Sales for purposes
of determining payments under this Agreement shall be calculated by multiplying the sales price of the Combination Product by a
mutually agreed percentage based on the relative contribution of the Licensed Product and the other additional active ingredients.

 

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Notwithstanding anything to the contrary, in
the case of discounts on “bundles” of separate products or services which include Licensed Products (such “bundles”
including but not limited to (w) situations where the Licensed Product is sold at a discount to induce the sale of other related
or unrelated products, (x) contingent arrangements involving drugs that share the same NDC (whether the same or different package
sizes), drugs with different NDCs, (y) circumstances in which a discount is conditioned on the achievement of some other performance
requirement for the Licensed Product (e.g. achievement of market share or placement on a formulary tier), or (z) otherwise where
the resulting price concessions or discounts are greater than those which would have been available had the bundled products been
purchased separately or outside the bundled arrangement), TGTX may calculate Net Sales and royalties due hereunder by applying
a discount to the price of a Licensed Product equal to the average percentage discount of all products of TGTX, its Affiliate(s),
or Sublicensee(s) in a particular “bundle”, calculated as follows:

 

Average percentage

 

discount on a                =          [1 - (X/Y)] x 100

 

particular “bundle”

 

where X equals the total discounted price of
a particular “bundle” of products, and Y equals the sum of the undiscounted bona fide list prices of each unit of every
product in such “bundle”. If a Licensed Product in a “bundle” is not sold separately, and no bona fide
list price exists for such Licensed Product, TGTX and Checkpoint shall, for purposes of calculating Net Sales and royalties due
hereunder, negotiate in good faith a reasonable imputed list price for such Licensed Product and Net Sales with respect thereto
shall be based on such imputed list price..

 

Undefined terms in the definition of Net Sales
shall be construed in accordance with GAAP but only to the extent consistent with the express terms of the definition of Net Sales.

 

1.56       “Paragraph IV
Certification” means a certification pursuant to the Drug Price Competition and Patent Term Restoration Act of 1984 (Public
Law 98-417), as amended, which shall include but not be limited to any such certification pursuant to 21 U.S.C. §355(b)(2)(A)(iv)
or 21 U.S.C. §355(j)(2)(A)(vii)(IV), or any reasonably similar or equivalent certification or notice in the United States
or any jurisdiction outside the United States, included in (or made with respect to or in connection with) a Regulatory Filing
concerning a Licensed Product and challenging the validity, infringement, or enforceability of any Licensor Patent.

 

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1.57       “Patent
Prosecution” means, with respect to any Patent Right (a) preparing, filing and prosecuting applications (of all
types), (b) paying filing, issuance and maintenance fees, (c) managing and conducting any interference, opposition, invalidation,
re-issue, reexamination, renovations, nullification, post-grant review, inter partes review, derivation proceeding, cancellation
proceeding or other similar administrative proceeding or administrative appeal thereof and (d) subject to Sections 6.3(d)
and 6.4(f), settling any interference, opposition, revocation, nullification or cancellation proceeding. A Party responsible for
Patent Prosecution shall be responsible for all of its fees and expenses incurred in connection therewith (including, without limitation,
attorneys’ fees).

 

1.58       “Patent
Right” means: (a) an issued or granted patent, including any extension, supplemental protection certificate, registration,
confirmation, reissue, reexamination, extension or renewal thereof; (b) a pending patent application, including any continuation,
divisional, continuation-in-part, substitute or provisional application thereof; and (c) all counterparts or foreign equivalents
of any of the foregoing issued by or filed in any country or other jurisdiction.

 

1.59       “Person”
means any natural person, corporation, firm, business trust, joint venture, association, organization, company, partnership or
other business entity, or any government or agency or political subdivision thereof.

 

1.60       “Phase
I Trial” means a clinical trial of a Licensed Product in human patients conducted primarily for the purpose of determining
the safety, tolerability and preliminary activity of the Licensed Product, including, without limitation, for determining the maximum
tolerated dose, or optimal dose. For purposes of this Agreement, a Phase I trial shall specifically exclude a study in healthy
volunteers.

 

1.61       “Phase
II Trial” means a clinical trial of a Licensed Product in human patients commenced after identifying the maximum tolerated
dose, or a lower dose if it is determined to be the optimal dose by TGTX, conducted primarily for the purpose of obtaining sufficient
information about the Licensed Product’s safety and efficacy to permit the design of a Phase III Trial.

 

1.62       “Phase
III Trial” means a clinical trial of a Licensed Product in human patients, which trial is designed (a) to establish
that the Licensed Product is safe and efficacious for its intended use; (b) to define warnings, precautions and adverse reactions
that are associated with the Licensed Product in the dosage range to be prescribed; (c) to be, either by itself or together
with one or more other clinical trials having a comparable design and size, the pivotal human clinical trial in support of an application
for Regulatory Approval or label expansion of the Licensed Product, and (d) consistent with 21 CFR § 312.21(c) (as
hereafter modified or amended), or with respect to a jurisdiction other than the United States, a similar clinical study.

 

1.63       “Phase
IV Clinical Trial” or “Post-Marketing Study” means a post-marketing human clinical trial for a Licensed
Product commenced after receipt of a Regulatory Approval in the country for which such trial is being conducted and that is conducted
within the parameters of the Regulatory Approval for the Product. Phase IV Clinical Trials may include, without limitation, epidemiological
studies, modeling and pharmacoeconomic studies, investigator-sponsored clinical trials of Product and post-marketing surveillance
studies.

 

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1.64       “Pivotal
Clinical Trial” means (a) a Phase III Trial or, (b) a Phase II Trial to the extent: (i) in the United
States, the protocol for that Phase II Trial shall have been reviewed by the FDA under its current Special Protocol Assessment
Guidelines (or equivalent guidelines issued in the future), and any comments from the FDA on that protocol are incorporated in
the final protocol for that Phase II Trial or are resolved to the FDA’s satisfaction as evidenced by further written communications
from the FDA; or (ii) a process with a comparable result – acceptance of a Phase II Trial protocol as “potentially
pivotal” – has occurred with the EMA or other Regulatory Authorities in the EU; or (iii) based on the results of that
Phase II Trial, either the FDA or the EMA has determined that the Phase II Trial can be considered as a pivotal clinical trial
for purposes of obtaining Regulatory Approval.

 

1.65       “Pricing
Approval” means any approval or authorization of any Governmental Body or Regulatory Authority establishing prices for
a Licensed Product in a jurisdiction in the Territory.

 

1.66       “Product
Trademarks” means the Trademark(s) to be used in connection with the Commercialization of Licensed Products in the Territory
and any registrations thereof or any pending applications relating thereto (excluding, in any event, any trademarks, service marks,
names or logos that include any corporate name or logo of the Parties or their Affiliates).

 

1.67       “Proprietary
Materials” means any tangible chemical, biological or physical materials that are conceived or reduced to practice by
TGTX in the conduct of the Development Program and/or in connection with the Commercialization of Licensed Products.

 

1.68       “Regulatory
Authority” means (a) the FDA, (b) the EMA or the European Commission, or (c) any regulatory body with
similar regulatory authority over pharmaceutical or biotechnology products in any other jurisdiction anywhere in the world.

 

1.69       “Regulatory
Approval” means the license or marketing approval necessary as a prerequisite for Marketing a product in a country in
the Territory. For the avoidance of doubt, Regulatory Approval outside of the United States shall include any Pricing Approval
or marketing approval needed prior to the sale of a Licensed Product in the Field.

 

1.70       “Regulatory
Filing” shall mean any filing or application with any Regulatory Authority, including INDs, NDAs and BLAs and their foreign
equivalents with respect to a Licensed Product.

 

1.71       “Reimbursement
Approval” means any approval or authorization of any Regulatory Authority or Governmental Body for establishing a health
insurance or drug reimbursement scheme for a Licensed Product in a jurisdiction in the Territory.

 

1.72       
“Research Inventions” shall mean any inventions, discoveries, improvements, processes, techniques, Know-How,
information and data developed, generated, discovered, conceived or reduced to practice during the performance of the Work Plan
(as defined in Section 4.1) and relating to the Compounds, whether or not patentable.

 

    	 	11	 

     

    

 

1.73       “Research
Patents” means all Patent Rights Covering Research Inventions.

 

1.74       “Response”
shall have the meaning set forth in Section 11.1.

 

1.75       “Royalty
Term” means, and determined on a Licensed Product-by-Licensed Product and country-by-country basis, the period commencing
from the First Commercial Sale of a given Licensed Product in such country and ending on the expiry of the last-to-expire Licensor
Patent containing a Valid Claim Covering such Licensed Product in such country.

 

1.76       “Significant
Development Event” means any of the following material Development events, a summary of which shall be included in any
Development Report: (a) any material interaction and/or written correspondence between TGTX or its Sublicensees and any Regulatory
Authority with respect to a Compound or a Licensed Product; (b) any material event with respect to any Clinical Trial involving
the Compound and/or a Licensed Product, including any such event that is ongoing as of the date of the applicable Development Report,
or is reasonably expected to occur or be initiated within twelve (12) months of the date of the applicable Development Report;
and (c) any material result obtained in the conduct of any Clinical Trial involving a Compound and/or a Licensed Product during
the period covered by the Development Report. For purposes of this definition, “material” shall be defined as any event
and/or result which have had or may have a significant impact on the activities and timelines defined in the Development Plan of
a Licensed Product.

 

1.77       “sNDA”
means a supplemental New Drug Application, as defined in the FD&C Act and applicable regulations promulgated thereunder.

 

1.78       “Sublicense”
means an agreement under which Licensee grants a sublicense under the license set forth in Section 2.1.

 

1.79       “Sublicensee”
means a Third Party or Affiliate to which TGTX has, pursuant to Section 2.2, granted sublicense rights under any of the license
rights granted under Section 2.1.

 

1.80       “Tax”
or “Taxes” means any federal, state, local or foreign income, gross receipts, license, payroll, employment,
excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits,
withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, value
added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not.

 

1.81       “Technical
Dispute” shall have the meaning set forth in Section 11.2.

 

1.82       “Terminated
Country(ies)” is defined in Section 10.9.

 

1.83       “Territory”
means worldwide.

 

    	 	12	 

     

    

 

1.84       “Third
Party” means any Person other than Licensor, Checkpoint, TGTX or their Affiliates.

 

1.85       “Third
Party Action” means any claim or action made by a Third Party against a Party that claims that a Licensed Product’s
use, Development, manufacture or sale by TGTX or its Sublicensees infringes such Third Party’s intellectual property rights
in the Territory.

 

1.86       “Trademark”
shall include any word, name, symbol, color, designation or device or any combination thereof that functions as a source identifier,
including any trademark, trade dress, service mark, trade name, logo, design mark or domain name, whether or not registered.

 

1.87       “United
States” or “U.S.” means the United States of America and its territories and possessions.

 

1.88       “Valid
Claim” means a claim of any pending Patent Right (including patent applications) or any issued, unexpired United States
or granted foreign patent that has not been dedicated to the public, disclaimed, abandoned or held invalid or unenforceable by
a court or other body of competent jurisdiction from which no further appeal can be taken, and that has not been explicitly disclaimed,
or admitted in writing to be invalid or unenforceable or of a scope not covering a particular product or service through reissue,
disclaimer or otherwise, provided that if a particular claim has not issued within eight (8) years of its initial filing,
it shall not be considered a Valid Claim for purposes of this Agreement unless and until such claim is included in an issued or
granted Patent, notwithstanding the foregoing definition.

 

ARTICLE
II

LICENSES AND OTHER RIGHTS

 

2.1         Grant
of License to TGTX. Checkpoint, on behalf of itself and its Affiliates, hereby grants to TGTX and its Affiliates, and TGTX
and its Affiliates hereby accept, an exclusive (even as to Checkpoint), royalty-bearing right and license (with the right to grant
sublicenses in accordance with the provisions of Section 2.2) under the Licensor Technology to research, Develop, have Developed,
Manufacture, have Manufactured, use, import, Commercialize and have Commercialized the Compound and Licensed Products in and for
the Field and Territory.

 

    	 	13	 

     

    

 

2.2         Grant
of Sublicenses by TGTX. The rights and licenses granted in Section 2.1 includes the right to grant sublicenses through
multiple tiers of Sublicensees directly or through Sublicensees, provided: (i) TGTX shall enter into a Sublicense with each
of its Sublicensees that contains terms and conditions that are consistent in all material respects with the terms and conditions
of this Agreement and that provide that upon termination of this Agreement with respect to a country covered by such Sublicense,
Checkpoint and Licnesor are third party beneficiaries of such Sublicense; (ii) each Sublicensee agrees in writing with TGTX
to maintain accurate and complete books and records and permit Checkpoint and Licensor to review such books and records (including
through the audit provisions of this Agreement); and (iii) such Sublicense agreement permits TGTX or a Sublicensee to assign to
Checkpoint (or Licensor, as required) such Sublicense agreement. Notwithstanding the foregoing sentence, it is not required that
a Sublicense include provisions for the Sublicensee to pay Royalties or make milestone payments directly to Checkpoint or to provide
royalty reports directly to Checkpoint. TGTX shall be and remain fully responsible for the compliance by Sublicensees with the
terms and conditions of this Agreement applicable to such Sublicensees. TGTX shall not be relieved of its obligations pursuant
to this Agreement as a result of such Sublicense, except to the extent such obligations are satisfactorily performed by any such
sublicensee. With respect to each Sublicense (and any amendments thereto), TGTX shall forward to Checkpoint (x) a copy of
any Sublicense and any amendments thereto, and (y) a certificate in writing that the Sublicense (and any amendments thereto)
are in compliance with the terms of this Agreement and the License Agreement, within twenty (20) days following the full execution
thereof, provided that TGTX shall have the right to remove from such copy any confidential information therein.

 

2.3         Bankruptcy
Code. All rights and licenses granted under or pursuant to this Agreement by Checkpoint to TGTX are, and shall otherwise be
deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property”
as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that TGTX, as a sublicensee of such rights under
this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code.

 

2.4         Technology
Transfer. As soon as reasonably practicable after the Effective Date, but in no event later than thirty (30) days following
the Effective Date, Checkpoint will provide to TGTX a copy of all Licensor Know-How (including but not limited to any preclinical
data, clinical data, assays and associated materials, protocols, and procedures pertaining to Licensor’s Development of the
Licensed Products as of the Effective Date). All such transfers will be done in a reasonably secure manner using either encrypted
media or encrypted transfer technology, or, if paper utilizing secure courier or tracked delivery processes. If, during the term
of this Agreement Checkpoint possesses Licensor Know-How not previously provided to TGTX, it shall, within thirty (30) days
after it comes into possession of such Licensor Know-How, provide copies of such Know-How to TGTX.

 

2.5         Non-Compete.
On a country-by-country basis during the Royalty Term for each country (and with respect to an Abandoned Terminated Country,
the Royalty Term for the United States), TGTX, its Affiliates and its Sublicensees shall not directly or indirectly engage in the
research, development, Manufacture or commercialization of a Competing Product in such country. On a country-by-country basis during
the Royalty Term for each country, Checkpoint, its Affiliates shall not directly or indirectly engage in the research, development,
Manufacture or commercialization of a Competing Product in such country. This Section 2.5 shall not apply to Competing Products
or prospective Competing Products acquired after the Effective Date by either Party or its Affiliates through acquisition of or
merger with a Third Party or by purchase of substantially all of the assets of a Third Party.

 

    	 	14	 

     

    

 

ARTICLE
III

DEVELOPMENT, MANUFACTURE AND COMMERCIALIZATION

 

3.1         Objective of Development Program and Diligence by
Checkpoint.

 

(a)       Pursuant
to the Development Program, TGTX, itself or through or with its Affiliates or Sublicensees, shall use Commercially Reasonable Efforts
to Develop and to Commercialize at least one Licensed Product in and for the Field in each of the Major Countries and use Commercially
Reasonable Efforts to Develop and to Commercialize at least one  Licensed Product in and for the Field in at least one country
that is not a Major Country. In addition, TGTX shall  use Commercially Reasonable Efforts
to Develop and to Commercialize the Licensed Products in and for the Field in the rest of the Territory; provided, however, for
the sake of clarity, TGTX will not be in breach or violation of its requirement to use such Commercially Reasonable Efforts in
a country (other than such Major Countries and such other one country that is not a Major Country), if the Development and/or Commercialization
in such country is not economically prudent or feasible as reasonably determined by TGTX in its sole discretion.

 

(b)       TGTX
and/or its Affiliates and Sublicensees shall perform Development of the Licensed Product in good scientific manner and in compliance
in all material respects with all applicable Laws and with cGLPs, cGMPs and cGCPs (or, if and as appropriate under the circumstances,
International Conference on Harmonization (“ICH”) guidance (or other comparable regulation and guidance of any
Regulatory Authority in the Territory).

 

3.2         Development
Plan and Report. Within ninety (90) days of the Effective Date, TGTX shall provide Checkpoint a Development Plan. Within
twenty (20) days of the end of each Calendar Year, TGTX shall prepare and provide to Checkpoint an updated Development Plan
detailing any amendments, modifications and/or updates to any existing Development Plan along with a Development Report. For the
avoidance of doubt, Development Plans are nonbinding and TGTX shall not be in breach of this Agreement if it does not Develop the
Compound or Licensed Products in accordance with any Development Plan. Upon Regulatory Approval of a Licensed Product for a particular
Major Country, TGTX’s obligations under this Section 3.2 shall terminate for that country.

 

3.3         Authority.
As between TGTX and Checkpoint, TGTX shall have the exclusive right, and sole decision-making authority, to Develop, manufacture
and Commercialize any Licensed Products in and for the Field (either itself or through its Affiliates, agents, subcontractors and/or
Sublicensees).

 

3.4         Costs
and Expenses. As between Checkpoint and TGTX, (a) TGTX shall be solely responsible for all costs and expenses related to clinical
Development, Manufacture and Commercialization of the Licensed Products, including without limitation costs and expenses associated
with all clinical trials, drug supply and regulatory filings and proceedings relating to Licensed Products in the Field, (b) the
costs of all IND enabling work, including without limitation, all pre-clinical toxicology, pharmacology, CMC, and other work required
for the filing of an IND shall be Shared Development Expenses; however, Shared Development Expenses shall include only external
costs incurred and each Party shall be responsible for its own internal costs (personnel, overhead, etc.) incurred in connection
with an IND filing, (c) each Party shall pay the costs of filing their own IND, and (d) all CMC and formulation development costs
shall be Shared Development Expenses. Shared Development Expenses shall be borne 50% by Checkpoint and 50% by TGTX.

 

    	 	15	 

     

    

 

3.5         Regulatory.
TGTX and Sublicensees shall be responsible for, and shall control all filings and interactions with Regulatory Authorities
with respect to the Licensed Products in and for the Field, and TGTX and its Sublicensees shall control and coordinate all clinical
and regulatory strategy for the Licensed Products in and for the Field.

 

3.6         Manufacturing.
During the Term, TGTX and its Sublicensees shall have the sole obligation and responsibility, and at their sole cost and expense,
for all aspects of Manufacturing, including without limitation, testing packaging and labeling the Licensed Products in and for
the Field, and any costs associated with storage, release and Third Party logistics. TGTX and Sublicensees may engage contract
Manufacturers to Manufacture (including labeling, packaging and testing) the Product. As a part of such responsibilities, TGTX
covenants and agrees to use Commercially Reasonable Efforts to obtain the right under any agreement with a Third Party providing
for the Manufacture or distribution of the Product to assign such agreement to Checkpoint, or at Checkpoint’s election, to
Licensor or any Affiliate of Licensor, upon termination of this Agreement in the circumstance where the provisions of Section 10.7
are applicable. TGTX shall or shall cause all Manufacturing to be done in accordance with cGMP and applicable Law.

 

3.7         Marketing.
Following receipt of Marketing Approval for a Licensed Product in a jurisdiction in the Territory in and for the Field and
during the remainder of the Term:

 

(a)       TGTX
shall be solely responsible to Market the Licensed Product in and for the Field in the Territory using Commercially Reasonable
Efforts. As used in this Section, “TGTX” includes its Affiliates and Sublicensees.

 

(b)       At
least once per calendar year following the first Regulatory Approval of a Licensed Product in a jurisdiction, TGTX shall provide
to licensor a high level written status report summarizing the material Marketing activities conducted by TGTX and its Affiliates
(but not its Sublicensees) pertaining to the Licensed Product in and for the Field.

 

 

ARTICLE
IV

LICENSOR RESEARCH

 

4.1         Overview.
As part of the License Agreement, Licensor and Checkpoint entered into a research project (the “Research Project”)
described in Schedule 4 hereto (the “Work Plan”), whereby the Licensor agreed to use Commercially Reasonable
Efforts to conduct and complete the Research Project in accordance with the timeline set forth in the Work Plan. Upon completion
of all of the tasks set forth in the Work Plan, Licensor shall deliver to Checkpoint, and Checkpoint shall deliver to TGTX, the
deliverables set forth in the Work Plan. All Licensor Know-How generated in connection with such Research Project shall be delivered
to TGTX within thirty (30) days following its receipt from the Licensor and shall deemed Licensor Know-How sublicensed to
TGTX hereunder.

 

    	 	16	 

     

    

 

4.2         Payment.
Fees and expenses incurred by Checkpoint for Licensor’s performance of the Research Project, which are outlined
in the Work Plan, shall be Shared Development Expenses and borne *% by Checkpoint
and *% by TGTX.

 

4.3         Status.
Checkpoint shall promptly provide to TGTX all Licensor written reports received by Checkpoint regarding the deliverables provided
in the Work Plan and use reasonable efforts to keep TGTX updated on the status of the work and deliverables.

 

4.4         Research
Inventions. Notwithstanding anything to the contrary contained in the Work Plan, Licensor shall own all right, title and interest
in and to the Research Inventions, including, without limitation, all Research Patents and all other intellectual property rights
appurtenant to the Research Inventions. Research Patents shall be Licensor Patents and come within the ambit of the license of
Section 4.1.

 

ARTICLE
V

Financial Provisions

 

5.1         License
Fee. TGTX shall pay to Checkpoint a non-refundable, non-creditable license fee of one million U.S. dollars ($1,000,000) within
thirty (30) days of the Effective Date. As of the Effective Date, there are no pending performance obligations on Checkpoint to
receive the license fee.

 

5.2         Milestone
Payments. TGTX shall, with respect to the first Licensed Product to achieve a milestone event below (a “Milestone”),
pay to Checkpoint the respective non-refundable and non-creditable milestone payment (“Milestone Payment”) under
the column “First Achievement Milestone Payment” within twenty (20) days following TGTX’s receipt of actual
knowledge of such achievement. In the event a Milestone (other than the first Milestone listed below) is achieved by a Second Licensed
Product (as defined below), TGTX shall pay to Checkpoint the respective milestone payment under the column “Second Product
Milestone Payment” within twenty (20) days following TGTX’s receipt of actual knowledge of such achievement. For avoidance
of doubt, each Milestone Payment in the table below shall only be paid once under this Agreement, regardless of the number of times
such Milestone may be achieved. “Second Licensed Product” means, with respect to a Milestone, a Licensed Product
containing a Compound that was not contained in the Licensed Product that first achieved such Milestone. For clarity, with respect
to each Milestone, a Second Product Milestone cannot be triggered by a Licensed Product containing the same Compound that achieved
the respective First Achievement Milestone, even if for a different indication. By way of further clarification, with respect to
a Licensed Product contained in a Combination Product, the Net Sales that trigger the Milestone Payment will be that portion of
Net Sales attributable to the Licensed Product as provided in the definition of “Net Sales”. Notwithstanding the table
below, upon achievement of a Development Milestone, payments for such Development milestone and all prior Development Milestones
shall be due and payable to the extent not already paid.

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	 	17	 

     

    

 

	Milestone Event	 	 	First Achievement
 Milestone Payment 	 	 	 	Second Product 

                                                                                                      Milestone Payment 	 
	1.  *.	 	$	*	 	 	 	N/A	 
	2.  *.	 	$	*	 	 	$	*	 
	3.  *	 	$	* (subject to the below)	 	 	$	*	 
	4.  *	 	$	*	 	 	$	*	 
	5.	 	$	*	 	 	$	*	 
	6.  *	 	$	*	 	 	$	*	 
	7.  *	 	$	*	 	 	$	*	 
	8.  *	 	$	*	 	 	$	*	 
	9.  *	 	$	*	 	 	$	*	 
	10.  *.	 	$	*	 	 	$	*	 
	11.  *.	 	$	*	 	 	$	*	 
	12.  *.	 	$	*	 	 	$	*	 

 

Within twenty (20) days of achieving a Milestone,
TGTX shall provide written notice to Checkpoint of such achievement. If at any time Checkpoint disputes whether a Development Milestone
has been achieved, the matter shall be referred for resolution in accordance with Section 11.2 as a Technical Dispute.

 

In the event that TGTX achieves Milestone 3
set forth above, and Checkpoint, in its discretion, determines that, as a result, it can proceed immediately to *
with respect to Checkpoint’s Development outside of the Field, or if both parties co-sponsor * meeting Milestone
3 set foth above, then TGTX’s First Achievement Milestone Payment in Milestone 3 shall be reduced in half to $*.

 

5.3         Royalty
Payments for Licensed Product.

 

(a)       In
addition to those payments due to Checkpoint under 5.1 and 5.2 above, TGTX shall pay to Checkpoint a royalty at a rate of *
percent (*%) on the Calendar Year, worldwide aggregate Net Sales of all Licensed Products during the Licensed Product-by-Licensed
Product and country-by-country Royalty Terms by TGTX and its Affiliates and Sublicensees (but excluding Net Sales of a given Licensed
Product in a given country after its applicable Royalty Term).

 

(b)       On
a Licensed Product-by-Licensed Product and country-by-country basis upon expiration of the Royalty Term, for a Licensed Product
in a country, the rights, licenses and sublicenses granted to TGTX hereunder with respect to such Licensed Product in such country
shall continue in effect but become exclusive fully paid-up, royalty-free, transferable (to the extent not transferable previously),
perpetual and irrevocable, provided that TGTX shall remain liable for any unpaid Milestone Payments and any royalty payments previously
owed or accrued. For the avoidance of doubt, in a country where no Licensor Patent containing a Valid Claim covering a Licensed
Product has ever existed nor ever exists, no royalties shall be due.

 

 

* Confidential
material redacted and filed separately with the Commission.

* Confidential
material redacted and filed separately with the Commission.

 

    	 	18	 

     

    

 

5.4         Timing
of Payment. Payments in the nature of royalties payable under Section 5.3(a) shall be payable on actual Net Sales and
shall accrue at the time provided therefor by GAAP. Payments in the nature of royalty obligations that have accrued during a particular
Calendar Quarter shall be paid, on a Calendar Quarter basis, within 45 days after the end of each Calendar Quarter commencing
with the Calendar Quarter in which the First Commercial Sale occurred.

 

5.5         Royalty
Reports and Records Retention. Within forty-five (45) days after the end of each Calendar Quarter during which Licensed
Products have been sold, TGTX shall deliver to Checkpoint, together with the applicable royalty/payment in the nature of royalties
payment due, a written report, on a Licensed Product-by-Licensed Product and country-by-country basis, of Net Sales for such Calendar
Quarter. Such report shall (i) total Net Sales for each Licensed Product and Combination Product (including an itemization
of the deductions applied to such gross sales to derive such Net Sales and if a Licensed Product is part of a Combination Product
the percentage of the Combination Product’s Net Sales attributed to the Licensed Product) during the relevant Calendar Quarter,
in each case on a dosage-by-dosage, country-by-country basis, including a summary of currency exchange rates used in the calculations,
and (ii) the calculation of royalties due on the foregoing. In addition for any Sublicense, the report shall provide the information
in clauses (i) through (ii) above. Such report shall be deemed “Confidential Information” of TGTX subject to the
obligations of Article VII of this Agreement. For three years after each sale of a Licensed Product, TGTX shall keep (and
shall cause its Affiliates and Sublicensees to keep) complete and accurate records of such sale in sufficient detail to confirm
the accuracy of the royalty or royalty/payment in the nature of royalties calculations hereunder.

 

5.6         Audits.

 

(a)       Upon
the written request of Checkpoint, and not more than once in each Calendar Year, TGTX shall permit an independent certified public
accounting firm (“Auditors”) of nationally recognized standing selected by Checkpoint and reasonably acceptable
to TGTX, at Checkpoint’s expense, to have access to and to review, during normal business hours upon reasonable prior written
notice, the applicable records of TGTX and its Affiliates or Sublicensees to verify the accuracy of the royalty reports and the
Milestone Payments for Milestones which are not Development Milestones. Such review may cover: (i) the records for sales made
in any Calendar Year ending not more than three years before the date of such request, and (ii) only those periods that have not
been subject to a prior audit. The accounting firm shall disclose to Checkpoint only whether the royalty reports and Milestone
Payments are correct or incorrect and the specific details concerning any discrepancies. No other information shall be provided
to Checkpoint by the Auditors. This right to audit shall remain in effect during the Term of this Agreement and for a period of
two (2) years after the termination of this Agreement.

 

(b)       If
such accounting firm concludes that additional royalties or Milestone Payments were owed during such period, TGTX shall pay the
additional royalties and Milestone Payments within 20 days after the date such public accounting firm delivers to TGTX such
accounting firm’s written report. If such accounting firm concludes that an overpayment was made, such overpayment shall
be fully creditable against amounts payable in subsequent payment periods or at TGTX’s request, shall be reimbursed to TGTX
within 30 days after the date such public accounting firm delivers such report to TGTX. Checkpoint shall pay for the cost
of any audit by Checkpoint, unless TGTX has underpaid Checkpoint by $50,000 or more for a specific royalty period, in which case
TGTX shall pay for the reasonable costs of audit.

 

    	 	19	 

     

    

 

(c)       Each
Party shall treat all information that it receives under this Section 5.6 in accordance with the confidentiality provisions
of Article VII of this Agreement, and shall cause its accounting firm to enter into an acceptable confidentiality agreement
with the audited Party obligating such firm to retain all such financial information in confidence pursuant to such confidentiality
agreement, except to the extent necessary for a Party to enforce its rights under the Agreement.

 

5.7         Mode
of Payment and Currency. All payments to Checkpoint under this Agreement, whether or not in respect of Net Sales or milestone
events, shall be made by deposit of U.S. Dollars in the requisite amount to such bank account as Checkpoint may from time to time
designate by advance written notice to TGTX. Conversion of sales or expenses recorded in local currencies to Dollars will be performed
in a manner consistent with TGTX’s normal practices used to prepare its audited financial statements for external reporting
purposes, provided that such practices use a widely accepted source of published exchange rates. These practices are set forth
on Schedule 5 attached hereto. Based on the resulting Net Sales in U.S. Dollars, the then applicable royalties/payment in
the nature of royalties shall be calculated.

 

5.8         Late
Payments. If a Party does not receive payment of any sum due to it on or before the due date therefor, simple interest shall
thereafter accrue on the sum due to such Party from the due date until the date of payment at a rate equal to the lesser of (a) U.S.
Dollar one-month LIBOR as of the date such payment was due (taken from a widely accepted source of published interest rates), plus
three (3) percentage points, or (b) the maximum rate permissible under applicable Law. Accrual and payment of interest
shall not be deemed to excuse or cure breaches of contract arising from late payment or nonpayment.

 

5.9         Taxes.
All amounts due hereunder exclude all applicable sales, use, and other taxes and duties, and TGTX shall be responsible for
payment of all such taxes (other than based on Checkpoint’s income) and duties and any related penalties and interest, arising
from the payment of amounts due under this Agreement. The Parties agree to cooperate with one another and use Commercially Reasonable
Efforts to avoid or reduce tax withholding or similar obligations in respect of payments in the nature of royalties, Milestone
Payments, and other payments made by TGTX to Checkpoint under this Agreement. To the extent TGTX is required to withhold taxes
on any payment to Checkpoint, TGTX shall pay the amounts of such taxes to the proper governmental authority in a timely manner
and promptly transmit to Checkpoint official receipts issued by the appropriate taxing authority and/or an official tax certificate,
or such other evidence as Checkpoint may reasonably request, to establish that such taxes have been paid. Checkpoint shall provide
TGTX any tax forms that may be reasonably necessary in order for TGTX to not withhold tax or to withhold tax at a reduced rate
under an applicable bilateral income tax treaty. Checkpoint shall use Commercially Reasonable Efforts to provide any such tax forms
to TGTX at least 45 days before the due date for any payment for which Checkpoint desires that TGTX apply a reduced withholding
rate. Each Party shall provide the others with reasonable assistance to enable the recovery, as permitted by applicable law, of
withholding taxes, value added taxes, or similar obligations resulting from payments made under this Agreement, such recovery to
be for the benefit of the Party bearing such withholding tax or value added tax. Notwithstanding the foregoing, if TGTX transfers
or sublicenses any rights under this Agreement, Drug Approval Applications or Regulatory Approvals, Development Inventions or relocates
or assigns this Agreement and as a result TGTX or its assignee is required to withhold or deduct any taxes by any government outside
the United States, any subdivision thereof, or any other governmental unit within the territory of such government (such taxes
collectively referred to as “Charges”), in excess of Charges that Checkpoint would otherwise be required to
pay had such transfer, relocation, or assignment not been made, or Checkpoint is required to pay any Charge imposed by any government
outside the United States in excess of Charges that Checkpoint would otherwise be required to pay had such transfer or assignment
not been made, TGTX shall pay such additional amounts so that payments received by Checkpoint net of all Charges, shall equal the
amount to which Checkpoint would have been entitled had there been no such Charges, provided, however that TGTX shall have no obligation
to pay any additional amount to the extent that the Charges are imposed by reason of Checkpoint failing to provide a form or similar
other evidence reasonably requested by TGTX that would allow for a reduction or exemption of such Charges that Checkpoint is legally
able to provide (including, for the avoidance of doubt, Checkpoint’s qualification for the benefit of an applicable income
tax convention).

 

    	 	20	 

     

    

 

ARTICLE
VI

Inventions and Patents

 

6.1         Patent
Prosecution and Maintenance.

 

(a) Patents. TGTX
shall reimburse Checkpoint up to $25,000 in expenses (including attorney’s fees) paid by Checkpoint to Licensor for filing
of patent applications (national, international or PCT) included in the Licensor Patents and filed prior to the Effective Date
within thirty (30) days of receipt of Checkpoint’s invoice for such expenses. As between TGTX and Checkpoint, Checkpoint
shall be solely responsible for Patent Prosecution of the Licensor Patents in the Territory. Checkpoint shall keep TGTX informed
of material actions with respect to the filing and prosecution of Licensor Patents or related proceedings (e.g. interferences,
oppositions, reexaminations, reissues, revocations or nullifications) in a timely manner, and shall reasonably consider the advice
of TGTX and its patent counsel, and Checkpoint will authorize its patent counsel to speak directly with TGTX and its counsel. Checkpoint
shall not abandon prosecution or maintenance of any Licensor Patent in the Territory without first notifying TGTX in a reasonably
timely manner of Checkpoint’s intention and reason therefor, and providing TGTX with reasonable opportunity to consider to
assume, with no obligation to do so, responsibility for prosecution and maintenance of such Licensor Patent in the Territory as
set forth in Section 6.1(b). TGTX shall reimburse Checkpoint for 50% of the reasonable out-of-pocket expenses incurred
by Checkpoint in filing, prosecuting and maintaining the Licensor Patents in the Territory. Payments are due within thirty (30)
days of receipt of Checkpoint’s invoice for such expenses.

 

    	 	21	 

     

    

 

(b)       Abandonment.
If Checkpoint provides TGTX with written notification that it will no longer support or pursue the filing, prosecution, or
maintenance (“Abandonment” and when uses as a verb “Abandon”) of a specified Licensor Patent
in a particular country (an “Abandoned Patent”) in the Territory, then (a) Checkpoint’s responsibility
for such filing, prosecution, or maintenance of the Abandoned Patent in such country, and the fees and costs related thereto, will
terminate on the earlier of (x) the date forty-five (45) Calendar Days after TGTX’s receipt of such written notice
from Checkpoint or (y) TGTX’s assumption of the filing, prosecution and maintenance of such Abandoned Patent in such
country at TGTX’s sole expense. If TGTX does not assume the filing, prosecution and maintenance of such Abandoned Patent
in such country within forty-five (45) Calendar days after TGTX’s receipt of such written notice from Checkpoint,  the
specified Abandoned Patent shall no longer be deemed a Licensor Patent hereunder. If Checkpoint Abandons all Licensor Patents in
a country in the Territory, without the assumption by TGTX of the filing, prosecution and maintenance of any such Licensor Patent
in such country, Licensor by notice to Checkpoint may terminate such country from the License Agreement and such country will become
an “Abandoned Terminated Country” under this Agreement. Following Licensor’s notice to Checkpoint, which
shall be promptly sent to TGTX, TGTX’s (and its Sublicensees’) rights to any Licensor Patents in such country shall
terminate. If TGTX assumes an Abandoned Patent, thereafter TGTX shall be solely responsible for Patent Prosecution of the Abandoned
Patent in the Territory. Except as provided below, TGTX shall assume and have sole responsibility for Patent Prosecution for the
Abandoned Patent in the Territory. TGTX will, to the extent reasonably practicable, provide Licensor a reasonable opportunity to
review and comment on any material patent filings or correspondence with patent authorities pertaining to the Abandoned Patents,
provided that all decisions with respect to Patent Prosecution of the Abandoned Patents shall be made by TGTX in its sole reasonable
discretion. TGTX shall not abandon prosecution or maintenance of any Abandoned Patent without first notifying Licensor in a reasonably
timely manner of TGTX’s intention and reason therefor, and providing Licensor with reasonable opportunity to consider to
assume, with no obligation to do so, responsibility for prosecution and maintenance of such Abandoned Patent.

 

6.2         Certification
under Drug Price Competition and Patent Restoration Act. Each of Checkpoint and TGTX shall immediately give written notice
to the other of any Paragraph IV Certification.

 

6.3         Enforcement
of Patents.

 

(a)       Notice.
If either Party becomes aware of (i) any actual, potential, or alleged infringement of any of the rights to Licensor Patents
under this Agreement with respect to Licensed Products in the Field, (ii) misappropriation of any Licensor Know-How that materially
adversely affects exploitation of Licensed Products in the Field, or (iii) a Paragraph IV Certification (each of subclauses
(i), (ii) and (iii), an “Infringement”) and, such Party shall give to the other Party prompt and reasonably
detailed written notice of such actual, potential, or alleged Infringement. Notwithstanding the foregoing, each Party shall notify
the other Party within two (2) Business Days of its receipt of, or receipt of notice of, any Paragraph IV Certification.
This Section 6.3 sets forth the rights of the Parties to commence and prosecute an action relating to such Third Party Infringement
(an “Offensive Enforcement Action”).

 

    	 	22	 

     

    

 

(b)       Right
to Bring an Action for Licensor’s Patents. Checkpoint and Licensor shall have (i) the right, but not the obligation
to undertake control of, and manage and prosecute, compromise or settle, including selection of counsel (collectively, “Prosecute”),
any Offensive Enforcement Action relating to a Paragraph IV Certification and (ii) the right but not the obligation to Prosecute
any other Offensive Infringement Action. If Checkpoint has not exercised their first right to Prosecute a non Paragraph IV
Offensive Infringement Action within one hundred twenty (120) days of receipt of notice of the same, or a Paragraph IV Offensive
Infringement Action within ten (10) days of receipt of notice of same, Checkpoint shall within five (5) days notify TGTX in
writing and TGTX may, by written notice to Checkpoint no later than five (5) days following TGTX’s receipt of notice from
Checkpoint, Prosecute such action (either such Party who Prosecutes such action, the “Prosecuting Party”). The
non-Prosecuting Party may, in its sole discretion and at its expense, join in any Offensive Infringement Action and in such case
shall reasonably cooperate with the Prosecuting Party. At the Prosecuting Party’s request the non-Prosecuting Party shall
provide the Prosecuting Party with all relevant documentation (as may be requested by the Prosecuting Party) evidencing that the
Prosecuting Party is validly empowered by the non-Prosecuting Party to initiate an Offensive Infringement Action. The non-Prosecuting
Party shall be under the obligation to join the Prosecuting Party in its Offensive Infringement Action if the Prosecuting Party
determines that this is necessary to demonstrate “standing to sue”, provided that the Prosecuting Party shall pay the
fees (including attorneys’ fees) if the non-Prosecuting Party retains its own counsel. The Prosecuting Party shall have the
sole and exclusive right to select counsel for any suit initiated by it pursuant to this Section 6.3 (but not the non-Prosecuting
Party’s counsel). Checkpoint’s or TGTX’s rights under this Section may be exercised by their respective Affiliates
or in TGTX’s case, Sublicensees.

 

(c)       Costs
and expenses of an Action. Subject to Section 6.3(b) and (f), each Party involved in an Action under Section 6.3(b)
shall pay its own costs and expenses incurred in connection with such Action.

 

(d)       Settlement.
No Party shall settle or otherwise compromise (or resolve by consent to the entry of judgment upon) any Offensive Infringement
Action or Patent Prosecution by admitting that any Licensor Patent is to any extent invalid or unenforceable or any settlement
(or consent to the entry of a judgment) that entails any payment by the other Party, any license, covenant not to sue relating
to, dedication to the public of, abandonment of, any Licensor Technology or would otherwise grant any rights to Manufacture, use,
sell or otherwise commercialize a Competing Product, or materially adversely affect the rights of the other Party, without the
other Party’s prior written consent.

 

(e)       Reasonable
Assistance. Each Party (if it is not the Party Prosecuting or defending Licensor’s Patent Rights) shall provide reasonable
assistance to the other Party, including providing access to relevant documents and other evidence and making its employees and
consultants available, subject to the other Party’s reimbursement of any reasonable out-of-pocket expenses incurred on an
on-going basis by the non-enforcing or non-defending Party in providing such assistance.

 

    	 	23	 

     

    

 

(f)       Distribution
of Amounts Recovered. Any amounts recovered by the Party initiating an Offensive Infringement Action pursuant to this Section 6.3,
whether by settlement or judgment, shall be allocated in the following order: (i) to reimburse the Prosecuting Party for any
costs incurred; (ii) to reimburse the non-Prosecuting Party and Licensor for its costs incurred in such Offensive Infringement
Action, if it joins (as opposed to taking over) such Offensive Infringement Action; and (iii) the remaining amount of such recovery
shall (A) if TGTX (or a Sublicensee) is the Prosecuting Party in the Offensive Infringement Action, the remainder shall be
allocated to TGTX and the portion thereof attributable to “lost sales” shall be deemed to be Net Sales for the Calendar
Quarter in which the amount is actually received by TGTX and TGTX shall pay to Checkpoint a royalty on such portion based on the
royalty rates set forth in Section 5.3(a), and the portion thereof not attributable to “lost sales” shall be allocated
to TGTX, (B) if Checkpoint is the Prosecuting Party then the remaining amount of the recovery shall be retained by Checkpoint.
and (C) if Licensor is the Prosecuting Party then the remaining amount of the recovery shall be retained by the Licensor.

 

(g)       Irrespective
of whether Checkpoint, TGTX or the Licensor decide to take any action under Section 6.3(b), the payment obligations under
Section 5 shall remain unaffected.

 

6.4         Third
Party Actions Claiming Infringement.

 

(a)       Notice.
If either Checkpoint or TGTX becomes aware of any Third Party Action, such Party shall promptly notify the other of all details
regarding such claim or action that is reasonably available to such Party.

 

(b)       Duty
to Defend. Subject to the respective indemnity obligations of the Parties set forth in Article IX, TGTX shall have the
obligation, at its sole cost and expense, to defend a Third Party Action described in Section 6.4(a) and (subject to Section 6.4(f))
to compromise or settle such Third Party Action. TGTX shall have the sole and exclusive right to select counsel for such Third
Party Action.

 

(c)       Consultation.
The Party defending a Third Party Action shall be the “Controlling Party”. The Controlling Party shall consult
with the non-Controlling Party, pursuant to an appropriate joint defense or common interest agreement, on all material aspects
of the defense. The non-Controlling Party shall have a reasonable opportunity for meaningful participation in decision-making and
formulation of defense strategy. The Parties shall reasonably cooperate with each other in all such actions or proceedings. The
non-Controlling Party will be entitled to join the Third Party Action and be represented by independent counsel of its own choice
at its own expense.

 

(d)       Appeal.
Subject to the respective indemnity obligations of the Parties set forth in Article IX, in the event that a judgment in
a Third Party Action is entered against Licensor or Checkpoint, and an appeal is available, the Controlling Party shall, in the
absence of the non-Controlling Party’s written consent to the contrary, have the obligation to file such appeal. If applicable
Law requires the non-Controlling Party’s involvement in an appeal, the non-Controlling Party shall be a nominal party in
the appeal and shall provide reasonable cooperation to such Party at such Party’s expense.

 

    	 	24	 

     

    

 

(e)       Costs
and expenses of an Action. Subject to the respective indemnity obligations of the Parties set forth in Article IX, the
Controlling Party shall pay all costs and expenses associated with such Third Party Action other than the expenses of the other
Party if the other Party elects to join such Third Party Action, (as provided in the last sentence of Section 6.4(c)). For
the avoidance of doubt, all damage and liability awards and settlement payments shall be paid by the Controlling Party subject
to the respective indemnity obligations of the Parties set forth in Article IX.

 

(f)       No
Settlement without Consent. Neither Checkpoint or TGTX shall settle or otherwise compromise (or resolve by consent to the entry
of judgment upon) any Third Party Action or Patent Prosecution by admitting that any Licensor Patent is to any extent invalid or
unenforceable or that any Licensed Product, or its use, Development, importation, manufacture or sale infringes such Third Party’s
intellectual property rights, or entering into a settlement providing for a license, covenant not to sue relating to, dedication
to the public of, abandonment of, any Licensor Technology or would otherwise grant any rights to Manufacture, use, sell or otherwise
commercialize a Competing Product or materially adversely affects the rights of the other Party, in each case without the other
Party’s prior written consent.

 

(g)       The
payment obligations under Section 5 shall remain unaffected during or following any Third Party Action.

 

6.5         Trademark
Infringement.

 

(a)       With
respect to any and all claims instituted by Third Parties against Licensor, Checkpoint or TGTX or any of their respective Affiliates
or Sublicensees for Trademark infringement involving the Marketing of the Licensed Products, TGTX, its Sublicensees and Affiliates
shall be solely responsible for, and indemnify Licensor and Checkpoint against, any and all Losses arising out of or resulting
from the use of any Trademarks.

 

(b)       In
the event that a Party becomes aware of actual or threatened infringement of a Trademark used by TGTX, its Sublicensees or Affiliates
in connection with a Licensed Product in the Field, that Party shall promptly notify the other Party in writing. TGTX, its Sublicensees
and its Affiliates shall have the right but not the obligation to bring an action with respect to such infringement against any
Third Party for infringement of a Trademark used in connection with a Licensed Product in the Field. TGTX shall bear all out-of-pocket
costs and expenses of the action (including court costs, reasonable fees of attorneys, accountants and other experts and other
expenses of litigation or proceedings) and shall be entitled to any recovery in such infringement action.

 

    	 	25	 

     

    

 

ARTICLE
VII

CONFIDENTIALITY

 

7.1         Confidentiality
Obligations. The Parties agree that, for the Term and for five (5) years thereafter, each Party will keep completely confidential
and will not disclose, and will not use for any purpose except for the purposes contemplated by this Agreement, any Confidential
Information of the other Party. “Confidential Information” means all information and know-how and any tangible
embodiments thereof provided by or on behalf of one Party to the other Party either in connection with the discussions and negotiations
pertaining to this Agreement or in the course of performing under this Agreement, which may include data, knowledge, practices,
processes, ideas, research plans, formulation or manufacturing processes and techniques, scientific, manufacturing, marketing and
business plans, and financial and personnel matters relating to the disclosing Party or to its present or future products, sales,
suppliers, customers, employees, investors or business; provided that, information or know-how of a Party will not be deemed Confidential
Information of such Party for purposes of this Agreement if such information or know-how: (a) was already known to the receiving
Party, other than under an obligation of confidentiality or non-use, at the time of disclosure to such receiving Party, as can
be shown by written records; (b) was generally available or known to parties reasonably skilled in the field to which such
information or know-how pertains, or was otherwise part of the public domain, at the time of its disclosure to such receiving Party;
(c) became generally available or known to parties reasonably skilled in the field to which such information or know-how pertains,
or otherwise became part of the public domain, after its disclosure to such receiving Party through no fault of the receiving Party;
(d) was disclosed to such receiving Party, other than under an obligation of confidentiality or non-use, by a Third Party
who had no obligation to the disclosing Party not to disclose such information or know-how to others, as can be shown by written
records; or (e) was independently discovered or developed by such receiving Party, as can be shown by its written records,
without the use or benefit of, or reliance on, Confidential Information belonging to the disclosing Party.

 

7.2         Authorized
Disclosure. Each Party may disclose Confidential Information of the other Party to the extent that such disclosure is:

 

(a)       made
in response to a valid order of a court of competent jurisdiction; provided, however, that in each case such disclosing Party will,
to the extent reasonably practicable, (i) first have given written notice to the other Party and given such other Party a
reasonable opportunity to take appropriate action and (ii) cooperate with such other Party as necessary to obtain an appropriate
protective order or other protective remedy or treatment; provided, further, that in each case, the Confidential Information disclosed
in response to such court or governmental order will be limited to that information which is legally required to be disclosed in
response to such court or governmental order, as determined in good faith by counsel to the Party that is obligated to disclose
Confidential Information pursuant to such order;

 

(b)       otherwise
required to be disclosed by any applicable law, rule, or regulation (including, without limitation, the U.S. and foreign securities
laws and the rules and regulations promulgated thereunder) or the requirements of any stock exchange to which a Party is subject;
provided, however, that the Party that is so required will provide such other Party with written notice of such disclosure reasonably
in advance thereof to the extent reasonably practicable and reasonable measures will be taken to assure confidential treatment
of such information, including such measures as may be reasonably requested by the disclosing Party with respect to such Confidential
Information;

 

(c)       is
in such Party’s or its Affiliates’ financial statements or the notes thereto and is required under the applicable accounting
standard or under regulation;

 

    	 	26	 

     

    

 

(d)          made
by such Party, in connection with the performance of this Agreement, to such Party’s Affiliates, licensees or sublicensees,
directors, officers, employees, consultants, representatives or agents, or to other Third Parties, in each case on a need to know
basis and solely to use such information for business purposes relevant to and permitted by this Agreement, and provided that (i) each
individual and entity to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations
no less than substantially as restrictive as those set forth in this Agreement and (ii) the Party making such disclosure shall
be liable for such Third Parties’ compliance with such obligations; or

 

(e)          made
by such Party to existing or potential acquirers, existing or potential collaborators, licensees, licensors, sublicensees, investment
bankers, accountants, attorneys, existing or potential investors, merger candidates, partners, venture capital firms or other financial
institutions or investors for use of such information for business purposes relevant to this Agreement or for due diligence in
connection with the financing, licensing or acquisition of such Party (or such Party’s acquisition of, or merger with, a
Third Party), and provided that (i) each individual and entity to whom such Confidential Information is disclosed is bound
in writing to non-use and non-disclosure obligations (or in the case of attorneys or accountants, an equivalent professional duty
of confidentiality) at least as restrictive as those set forth in this Agreement and (ii) the Party making such disclosure shall
be liable for such Third Parties’ compliance with such obligations.

 

7.3         Publicity.

 

(a)          The
Parties recognize that each Party may from time to time desire to issue press releases and make public statements or disclosures
regarding the subject matter of this Agreement. In such event, the Party desiring to issue an additional press release or make
a public statement or disclosure shall provide the other Party with a copy of the proposed press release, statement or disclosure
for review and approval in advance, provided, however, that if in the reasonable opinion of a Party’s legal counsel a press
release or disclosure in respect of this Agreement is required to satisfy applicable Law or applicable stock exchange rule or regulation,
such Party shall submit the proposed press release or disclosure in writing to the other Party as far in advance as reasonably
practicable (and in no event less than two (2) Business Days prior to the anticipated date of disclosure if reasonably practicable,)
so as to provide a reasonable opportunity to comment thereon (and such comments shall be considered in good faith). Once any public
statement or disclosure has been made in accordance with Section 7.3(b) or this Section 7.3(a), then either Party may
appropriately communicate information contained in such permitted statement or disclosure.

 

(b)          Notwithstanding
the provisions of Section 7.3(a):

 

(i)          To
the extent a Party determines in good faith that it is required by applicable Laws or the rules or regulations of a stock exchange
on which the securities of the disclosing Party are listed to publicly file, or otherwise disclose, this Agreement or any of its
terms to or with a Regulatory Authority or Governmental Body, such disclosing Party shall provide a proposed redacted form of this
Agreement to the other Party within a reasonable amount of time prior to filing or disclosure (and in any event at least five (5) Business
Days before filing or disclosure) for the other Party to review and comment upon such redacted form. The Party making such filing,
registration, notification or disclosure shall consider in good faith the reviewing Party’s reasonable comments regarding
such redacted form and shall use commercially reasonable efforts to seek confidential treatment for the redacted terms, to the
extent such confidential treatment is applicable and reasonably available consistent with applicable Laws or the rules or regulations
of the applicable stock exchange. Each Party shall be responsible for its own legal and other external costs in connection with
any such filing, registration or notification.

 

    	 	27	 

     

    

 

(ii)         Each
Party may disclose to any actual or potential or actual investor, lender, investment bank or other bank, acquirer, acquisition
or merger target, licensee, licensor, or other strategic partner to the extent necessary or useful in connection with the evaluation
or negotiation of a potential transaction or contractual relationship, or performance of obligations or enforcement of rights under
such a transaction or relationship, in each case pursuant to a written obligation of confidentiality and non-use substantially
as stringent as those set forth in this Article VII, a complete copy of this Agreement or any of the terms thereof.

 

ARTICLE
VIII

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

8.1         Representations
and Warranties of Checkpoint. Checkpoint represents and warrants to TGTX as of the Effective Date that:

 

(a)          Checkpoint
is a corporation, duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation,
with full corporate power and authority to operate its properties and to carry on its business as presently conducted.

 

(b)          Checkpoint
has full power and authority to execute, deliver and perform this Agreement. There are no liens or other encumbrances on the Licensor
Technology or any part thereof which would interfere with the rights granted, or assignment of assets, to TGTX hereunder. This
Agreement constitutes the legally binding and valid obligation of Checkpoint, enforceable in accordance with its terms, except
as such enforcement may be limited by applicable bankruptcy, moratorium and other laws affecting creditors’ rights generally.

 

(c)          The
execution, delivery and performance by Checkpoint of this Agreement and the consummation of the transactions contemplated hereby
will not result in any violation of, conflict with, result in a breach of or constitute a default under any contract or agreement
to which Checkpoint or any Affiliate thereof is a party.

 

(d)          There
is no action, suit, proceeding or investigation pending or, to Checkpoint’s and its Affiliates’ knowledge, currently
threatened in writing against or affecting Checkpoint or any Affiliate thereof that questions the validity of this Agreement or
the right of Checkpoint to enter into this Agreement or consummate the transactions contemplated hereby and, to Checkpoint’s
and its Affiliates’ knowledge, there is no basis for the foregoing.

 

(e)          No
consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal,
state or local governmental authority, or any Third Party, on the part of Checkpoint or any Affiliate thereof is required in connection
with the execution, delivery and performance of this Agreement.

 

    	 	28	 

     

    

 

(f)           Checkpoint
has disclosed in writing to TGTX all Patent Rights owned or Controlled by Licensor or its Affiliates as of the Effective Date that
Cover any Licensed Products incorporating Compound thereof in the Field, or which relate to Developing, manufacturing or Commercializing
Licensed Products, and all such Patent Rights are set forth on Schedule 2 attached hereto.

 

8.2         Representations
and Warranties of TGTX. TGTX represents and warrants to Checkpoint as of the Effective Date and also covenants with respect
to Section 8.2(d) or 8.2(g), that:

 

(a)          TGTX
is a corporation, duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation,
with full corporate power and authority to operate its properties and to carry on its business as presently conducted.

 

(b)          TGTX
has full power and authority to execute, deliver and perform this Agreement. This Agreement constitutes the legally binding and
valid obligations of TGTX, enforceable in accordance with their terms, except as such enforcement may be limited by applicable
bankruptcy, moratorium and other laws affecting creditors’ rights generally.

 

(c)          The
execution, delivery and performance by TGTX of this Agreement and the consummation of the transactions contemplated thereby will
not result in any violation of, conflict with, result in a breach of or constitute a default under any contract or agreement material
to TGTX, its business or its assets.

 

(d)          Without
limiting any other term or provision of this Agreement, TGTX shall comply with all applicable Laws in performing this Agreement,
including all laws and regulations concerning corrupt practices or which in any manner prohibit the giving of any financial or
other advantage including all Marketing activities conducted by it or its Affiliates, including, without limitation, the Federal
Health Care Programs Anti-Kickback Law, Title 42 of the U.S. Code Section 1420a-7(b)(b), and any comparable or similar
state anti-kickback laws or regulations, and all federal, state and foreign health care fraud and abuse statute and regulations,
except where the failure to so comply would not reasonably be expected to have a material adverse effect on the Licensed Patents
or Net Sales.

 

(e)          No
consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal,
state or local governmental authority on the part of TGTX is required in connection with the execution, delivery and performance
of this Agreement.

 

(f)           There
is no action, suit, proceeding or investigation pending or, to TGTX’s knowledge, currently threatened against or affecting
TGTX or that questions the validity of this Agreement, or the right of TGTX to enter into this Agreement or consummate the transactions
contemplated hereby and, to TGTX’s knowledge, there is no reasonable basis for the foregoing.

 

    	 	29	 

     

    

 

(g)          TGTX
will notify Checkpoint in writing if it determines that it will or does (i) permanently cease all Development, Manufacture and
Commercialization of Licensed Products in the Field or (ii) suspend all Development, Manufacture and Commercialization of Licensed
Products in the Field for more than nine (9) months (“Notice of Termination or Suspension”).

 

8.3         Disclaimer.
EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, INCLUDING SECTIONS 8.1 AND 8.2, AS APPLICABLE, THE PARTIES MAKE
NO REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE,
AND THE PARTIES EACH SPECIFICALLY DISCLAIM ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY
WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE, OR AS TO THE SUCCESS OR LIKELIHOOD OF SUCCESS
OF THE RESEARCH, DEVELOPMENT OR COMMERCIALIZATION OF LICENSED PRODUCT UNDER THIS AGREEMENT.

 

ARTICLE
IX

INDEMNIFICATION; LIMITATION OF LIABILITY; INSURANCE

 

9.1         Indemnification
by TGTX. TGTX shall indemnify, defend and hold harmless (i) Licensor and its Affiliates, and each of their respective employees,
officers, directors and agents (the “Licensor Indemnitees”) and (ii) Checkpoint and its Affiliates and each
of their respective employees, officers, directors and agents (the “Checkpoint Indemnitees”) against any and
all liabilities, damages, penalties, fines, losses, costs and expenses (including reasonable attorneys’ fees and expenses)
(individually and collectively, “Losses”) to the extent arising out of any and all Third Party claims, demands,
actions or other proceedings (each, a “Claim”) arising out of (a) the testing, use, Development or Commercialization
of a Compound or any Licensed Product by or on behalf of TGTX, any of the TGTX Indemnitees or any Sublicensee, (b) TGTX’s,
its Affiliates’ or its Sublicensees’ material breach of this Agreement, (c) misappropriation or infringement of,
or the use of, any Product Trademarks, (d) TGTX’s or its Affiliates’ breach or noncompliance with the terms of any
Sublicense arising prior to or as a result of the termination of this Agreement, or (e) TGTX’s, its Affiliates’
or its Sublicensees’ gross negligence or willful misconduct, excluding, in the case of each of (a)-(d) above, any Claim or
Loss with respect to which Checkpoint has an obligation to indemnify TGTX Indemnitees pursuant to Section 9.2.

 

9.2         Indemnification
by Checkpoint. Checkpoint shall indemnify, defend and hold TGTX and its Affiliates and each of their respective agents, employees,
officers and directors (the “TGTX Indemnitees”) harmless from and against any and Losses to the extent arising
out of any and all Claims arising out of (a) Checkpoint’s material breach of this Agreement, (b) the use, Development
or Commercialization of a Compound or any Licensed Product by or on behalf of Checkpoint or any of the Checkpoint Indemnitees or
any licensee thereof (specifically excluding product liability claims arising out of Licensed Product sold or distributed by TGTX,
its Affiliates or Sublicensee), or (c) Checkpoint’s gross negligence, willful misconduct, excluding, in the case of
each of (a)-(c) above, any Claim or Loss with respect to which TGTX has an obligation to indemnify Checkpoint Indemnitees pursuant
to Section 9.1.

 

    	 	30	 

     

    

 

9.3         Procedure.

 

(a)          The
Party or other Person intending to claim indemnification under this Article IX (an “Indemnified Party”) shall
promptly notify the opposed Party (the “Indemnifying Party”) of any Claim in respect of which the Indemnified Party
intends to claim such indemnification (provided, that no delay or deficiency on the part of the Indemnified Party in so notifying
the Indemnifying Party will relieve the Indemnifying Party of any liability or obligation under this Agreement except to the extent
the Indemnifying Party has suffered actual prejudice directly caused by the delay or other deficiency), and the Indemnifying Party
shall assume the defense thereof (with counsel selected by the Indemnifying Party and reasonably satisfactory to the Indemnified
Party) whether or not such Claim is rightfully brought; provided, however, that an Indemnified Party shall have the right to retain
its own counsel and to participate in the defense thereof, with the fees and expenses to be paid by the Indemnified Party unless
the Indemnifying Party does not assume the defense or unless a representation of both the Indemnified Party and the Indemnifying
Party by the same counsel would be inappropriate due to the actual or potential differing interests between them, in which case
the reasonable fees and expenses of counsel retained by the Indemnified Party shall be paid by the Indemnifying Party. (Provided,
that in no event shall the Indemnifying Party be required to pay for more than one separate counsel no matter the number or circumstances
of all Indemnified Parties.)

 

(b)          If
the Indemnifying Party shall fail to timely assume the defense of and reasonably defend such Claim, the Indemnified Party shall
have the right to retain or assume control of such defense and the Indemnifying Party shall pay (as incurred and on demand) the
fees and expenses of counsel retained by the Indemnified Party.

 

(c)          The
Indemnifying Party shall not be liable for the indemnification of any Claim settled (or resolved by consent to the entry of judgment)
without the written consent of the Indemnifying Party. Also, if the Indemnifying Party shall control the defense of any such Claim,
the Indemnifying Party shall have the right to settle such Claim; provided, that the Indemnifying Party shall obtain the prior
written consent (which shall not be unreasonably withheld or delayed) of the Indemnified Party before entering into any settlement
of (or resolving by consent to the entry of judgment upon) such Claim unless (i) there is no finding or admission of any violation
of law or any violation of the rights of any person by an Indemnified Party, no requirement that the Indemnified Party admit negligence,
fault or culpability, and no adverse effect on any other claims that may be made by or against the Indemnified Party and (ii) the
sole relief provided is monetary damages that are paid in full by the Indemnifying Party and such settlement does not require the
Indemnified Party to take (or refrain from taking) any action.

 

(d)          The
Indemnified Party, and its employees and agents, shall cooperate fully with the Indemnifying Party and its legal representatives
in the investigations of any Claim.

 

(e)          Regardless
of who controls the defense, each Party hereto shall reasonably cooperate in the defense as may be requested.

 

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9.4         Expenses.
As the Parties intend complete indemnification, all costs and expenses of enforcing any provision of this Article IX shall
also be reimbursed by the Indemnifying Party.

 

9.5         Limitation
of Liability. IN NO EVENT SHALL EITHER PARTY OR ITS AFFILIATES BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INCIDENTAL, PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES OR LOST PROFITS ARISING OUT OF A BREACH OF THIS AGREEMENT, PROVIDED THAT, NOTWITHSTANDING ANYTHING
TO THE CONTRARY, THE FOREGOING SHALL NOT BE CONSTRUED TO LIMIT THE INDEMNITY OBLIGATIONS SET FORTH IN SECTIONS 9.1 AND 9.2, OR
EITHER PARTY’S LIABILITY FOR A BREACH OF ARTICLE VII.

 

9.6         Insurance.
During the term of this Agreement and for a period of five (5) years after its expiration or earlier termination (measured
by termination or expiration of the last Licensed Product for a country whose Royalty Term is in effect), TGTX shall obtain insurance
as follows. The insurance shall insure TGTX against all liability related to its activities relating to the Development, Manufacture
or sale of Licensed Products subject to this Agreement, subject to the limits set forth above. The insurance above, shall be in
amounts that are reasonable and customary in the pharmaceutical industry for the Territory, but in no event shall any TGTX’s
liability insurance relating to commercial Manufacture, sale or distribution of a Licensed Product provide coverage less than two
million U.S. dollars (U.S. $2,000,000) per occurrence (or claim) and an annual aggregate of two million U.S. dollars (U.S. $2,000,000).
Policies for the Development, commercial Manufacture, sale or distribution of a Licensed Product shall include a contractual endorsement
naming Checkpoint and Licensor as an additional insured in relation to liabilities arising from its obligations under the terms
of this Agreement and require the insurance carriers to provide Checkpoint with no less than thirty (30) days’ written notice
of any change in the terms or coverage of the policies or their cancellation.

 

ARTICLE
X

TERM AND TERMINATION

 

10.1       Term
and Expiration. The term of this Agreement shall commence on the Effective Date and, unless earlier terminated as provided
in this Article X, shall continue in full force and effect, on a country-by-country and Licensed Product-by-Licensed Product
basis until the Royalty Term in such country with respect to such Licensed Product expires, at which time this Agreement shall
expire in its entirety with respect to such Licensed Product in such country (the “Term”).

 

10.2       Termination
upon Material Breach. If a Party breaches any of its material obligations under this Agreement (a “Material Breach”),
the other Party may give to the breaching Party a written notice specifying the nature of the Material Breach, requiring it to
cure such Material Breach, and, if desired, stating its intention to terminate this Agreement if such Material Breach is not cured.
If such Material Breach is not capable of being cured, or is capable of being cured but nonetheless has not within 60 days
after the receipt of such notice been cured, then the non-breaching Party (in addition to and not in lieu of all other available
rights and remedies) be entitled to at its option either (a) terminate this Agreement immediately by written notice to the
other Party, or (b) continue this Agreement in full force and effect and seek any legal or equitable remedies that the non-breaching
Party may have.

 

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10.3       Termination
for Insolvency. Either Party (i.e., the non-insolvent Party) may terminate this Agreement, if, at any time, a petition in bankruptcy
or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of the Party or of substantially
all of its assets, or if the other Party proposes a written agreement of composition or extension of substantially all of its debts,
or if the other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition
shall not be dismissed within sixty (60) days after the filing thereof, or if the other Party shall propose or be a party
to any dissolution or liquidation, or if the other Party shall make an assignment of substantially all of its assets for the benefit
of creditors.

 

10.4       Termination
for Patent Challenge. Checkpoint will be permitted to terminate this Agreement by written notice effective upon receipt if
TGTX or its Affiliates or its Sublicensees, directly or indirectly through assistance granted to a Third Party, commence any interference
or opposition proceeding, challenge in a legal or administrative proceeding the validity or enforceability of, or oppose in a legal
or administrative proceeding any extension of or the grant of a supplementary protection certificate with respect to, any Licensor
Patents (a “Patent Challenge”). TGTX will include provisions in all agreements granting Sublicenses of TGTX’s
rights hereunder (other than agreements with manufacturers, services providers, distributors and other agents) providing that if
the Sublicensee or its Affiliates undertake a Patent Challenge with respect to any Licensor Patents under which the Sublicensee
is Sublicensed, TGTX will be permitted to terminate such Sublicense agreement. If a Sublicensee of TGTX (or an Affiliate of such
Sublicensee) undertakes a Patent Challenge of any such Licensor Patent Rights under which such Sublicensee is sublicensed, then
TGTX upon receipt of notice from Checkpoint of such Patent Challenge will terminate the applicable Sublicense agreement. If TGTX
fails to so terminate such Sublicense agreement, Checkpoint may terminate TGTX’s right to Sublicense in the country(ies)
covered by such Sublicense agreement and any Sublicenses previously granted in such country(ies) shall automatically terminate.
In connection with such Sublicense termination, TGTX shall cooperate with Checkpoint’s reasonable requests to cause such
a terminated Sublicensee to discontinue activities with respect to the Licensed Product in such country(ies).

 

10.5       Termination
for Convenience. This Agreement may be terminated by TGTX at any time for its convenience upon sixty (60) days prior written
notice to Checkpoint.

 

10.6       Termination
for Suspension of Development. If prior to Regulatory Approval of a Licensed Product, TGTX or its Affiliates provides Notice
of Termination or Suspension, then Checkpoint may terminate this Agreement on thirty (30) days’ notice to TGTX.

 

10.7       Termination
for Good Scientific Reason. TGTX may terminate this Agreement with respect to any specific Compound and the related Licensed
Product upon sixty (60) days’ prior written notice to Checkpoint if (i) such Compound or Licensed Product has an
adverse safety profile or causes serious adverse reactions; or (ii) TGTX reasonably determines that such Licensed Product will
not qualify for Regulatory Approval in the United States.

 

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10.8       Termination
for Abandonment. If Checkpoint Abandons all Licensor Patents in a country, and TGTX does not assume the filing, prosecution
and maintenance of such Abandoned Patent in such country, then Checkpoint may terminate the Agreement with respect to such country
on thirty (30) days’ written notice to TGTX.

 

10.9       Effects
of Termination/Expiration.

 

(a)          If
this Agreement is terminated by TGTX under Sections 10.3, 10.5 or 10.7, or by Checkpoint under Sections 10.3, 10.4, 10.6 or 10.8,
with respect to one or more Licensed Products (“Terminated Products”), in all or any countries of the Territory (the
“Terminated Country(ies)”):

 

(i)          Any
and all licenses granted by Checkpoint to TGTX under this Agreement with respect to the Terminated Products shall terminate in
their entirety or with respect to the Terminated Country(ies), as the case may be, on the effective date of such termination;

 

(ii)       
Upon Checkpoint’s written request, TGTX shall transfer the following assets (collectively, the “Transferred
Product Assets”) to Checkpoint without charge (except as provided in Section 10.9(c), below), provided that Checkpoint
shall be responsible for all of costs and expenses incurred by TGTX in connection with such transfer:

 

(1)         TGTX
shall promptly transfer to Checkpoint, at Checkpoint’s expense, copies of all data, reports, records and documentation and
materials that both (i) it Controls and (ii) relate solely to the unit of the Terminated Product that contains no active ingredients
other than Compounds (“Covered Product”) (e.g. a tablet that contains other active ingredients would not be a distinct
unit but if the Terminated Products consisted of two tablets one could be a distinct unit), in such Terminated Country(ies), provided
that TGTX shall redact information to the extent possible not relating to the Compound or Covered Product;

 

(2)         TGTX
shall, to the extent transferable, assign and transfer to Checkpoint all of its and its Affiliates’ right, title and interest
in and to all Regulatory Approvals and Drug Approval Applications and Regulatory Filings that it solely owns, prepared (whether
completed or partially completed), filed and/or granted solely for terminated Compounds and Covered Products in such Terminated
Country(ies), and TGTX shall promptly file with any applicable Regulatory Authority notice of such transfer and assignment;

 

(3)         TGTX
shall, to the extent of its Control, transfer to Checkpoint all relevant records and materials in TGTX’s possession containing
Confidential Information relating solely to the terminated Compounds and Covered Product in such Terminated Country(ies), provided,
however, that TGTX may keep one copy of such Confidential Information for archival purposes only and such Confidential Information
shall be Confidential Information of Checkpoint;

 

    	 	34	 

     

    

 

(4)         To
the extent TGTX solely owns any right, title and interest in any Trademarks, trade names and/or logos under which only the terminated
Covered Product has been or is being marketed or sold in the Terminated Country(ies) (excluding for avoidance of doubt the TGTX’s
or its Affiliates corporate Trademarks), or internet domain registrations for any such Trademarks or tradenames (excluding for
avoidance of doubt domain name registrations incorporating the TGTX’s or its Affiliates corporate Trademarks (in whole or
in part)), TGTX shall assign the same to Checkpoint;

 

(iii)    At
Checkpoint’s request, TGTX shall assign to Checkpoint, any clinical trial agreements (to the extent assignable without the
written consent of the other parties to such clinical trial agreements) with respect solely to such terminated Compound and Licensed
Product in such Terminated Country(ies), provided that Checkpoint agrees to assume all liabilities under such clinical trial agreements
pursuant to a form of assumption agreement mutually agreed upon by Checkpoint and TGTX.;

 

(iv)   Any
transfers under this Section 10.9(a) shall be transferred on an “as-is” basis, and all documents and information
transferred to Checkpoint, to the extent solely related to the terminated Licensed Product or Compound, shall be deemed Checkpoint’s
Confidential Information;

 

(v)     Checkpoint’s
and TGTX’s restrictive covenants in Sections 2.5 (except if termination is pursuant to Section 10.8) shall terminate
with respect to the terminated Licensed Product in such Terminated Country(ies); and

 

(vi)   If
at the time of such termination or thereafter, no license granted by TGTX or its Affiliates under the Development Inventions or
Development Patents to a Sublicensee under a Sublicense agreement (or options to acquire such a license) is in effect with respect
to (A) a Terminated Product, (B) a Terminated Country or (C) a Terminated Product in a Terminated Country, then upon Checkpoint’s
written request to TGTX, TGTX, on behalf of itself and its Affiliates, shall grant, and shall be deemed to have granted without
further action required, to Checkpoint and its Affiliates, or upon Checkpoint’s election, to Licensor or an Affiliate of
Licensor, an exclusive royalty-bearing (as provided in Section 10.9(c), non-transferable (except in connection with an assignment
of this Agreement permitted pursuant to Section 12.2), sublicensable, perpetual license or sublicense (with respect to rights licensed
by Third Parties to TGTX), under all Development Inventions and Development Patents Controlled by TGTX, to Develop and Manufacture,
in the case of (A) above, the Terminated Product in the Territory, in the case of (B) above the Terminated Product or Licensed
Product in the Terminated Countries, and in the case of (C) above, the Terminated Product in the Terminated Countries.

 

(b)          If
this Agreement is terminated by TGTX under Section 10.2 or if this Agreement is terminated by Checkpoint under Section 10.2,
then in addition to any other remedies available to such Party:

 

(i)          All
licenses granted by TGTX to Checkpoint under this Agreement shall terminate; and

 

(ii)         All
licenses granted by Checkpoint to TGTX shall terminate.

 

    	 	35	 

     

    

 

(c)          If
this Agreement is terminated by TGTX under Section 10.7, or by Checkpoint under Sections 10.6 or 10.8, in each case, with respect
to a Terminated Product or Terminated Country or in its entirety, then following issuance of a request under Sections 10.9(a)(ii),
10.9 (a)(iii) or 10.9(a)(vi), Checkpoint shall pay TGTX (x) *% of Sublicensing
Royalty Revenue (as defined below), but in no event greater than the royalties that would be payable by Checkpoint pursuant to
the royalty rates provided below in this Section 10.9(c) (applying such rates to Net Sales by Existing Sublicensees (as defined
below)), and (y) a royalty (the “Reverse Royalty”) on Net Sales of Licensed Products (expressly excluding Net
Sales by Existing Sublicensees) during the Reverse Royalty Term (as defined below) as follows:

 

(i)           if the
termination occurs before completion (where “completion” means receipt of a final study report meeting the guidelines
of the International Conference on Harmonization) of a Phase III Study for a Licensed Product, then * percent (*%)
royalty on Net Sales;

 

(ii)          if the
termination occurs after completion (where “completion” means receipt of a final study report meeting the guidelines
of the International Conference on Harmonization) of a Phase III Study for a Licensed Product but before approval of an NDA or
BLA for such Licensed Product in such country, then a * percent (*%) royalty on Net Sales; or

 

(iii)         if
the termination occurs after approval of an NDA or BLA for a Licensed Product, then a * percent (*%) royalty
on Net Sales.

 

“Reverse Royalty
Term” means, and determined on a Licensed Product-by-Licensed Product and country-by-country basis, the period commencing
from the First Commercial Sale of a given Licensed Product in such country and ending on the expiry of the last-to-expire Licensor
Patent containing a Valid Claim Covering such Licensed Product in such country

 

For purposes of this Section
10.9(c), the definition of “Net Sales,” and Sections 5.4 through 5.9 shall apply mutatis mutandis to the calculation,
payment, recording, and auditing of Checkpoint’s obligations to pay Reverse Royalties under this Section 10.9 as they apply
to TGTX and, solely for such purpose, each reference in each such Section (and any related definitions) to TGTX shall be deemed
to be a reference to Checkpoint, and (y) a Sublicensee shall be deemed to be a reference to a licensee or sublicensee of Checkpoint
or any of its Affiliates (and expressly excluding Existing Sublicensees) with respect to the Licensed Product. Notwithstanding
the foregoing, no Reverse Royalty shall be due or payable by Checkpoint relating to Net Sales of Sublicensees under any Sublicense
in effect at the date of termination of this Agreement (Sublicensees under such Sublicenses, “Existing Sublicensees”).
“Sublicensing Royalty Revenue” means sales-based royalties, and minimum sales royalties, each as actually received
by Checkpoint or its Affiliate from an Existing Sublicensee as consideration for the grant of rights to Patent Rights.

 

 

* Confidential
material redacted and filed separately with the Commission.

 

    	 	36	 

     

    

 

In no event shall Checkpoint
transfer (i) its, right, title or interest in Patent Rights Covering a terminated Compound or Licensed Product or (ii) any of the
Transferred Assets, unless the assignee assumes Checkpoint’s obligations to pay royalties under this Section 10.9 pursuant
to a commercially reasonable assignment and assumption agreement providing that (x) TGTX is a third party beneficiary to such agreement
for the purpose of enforcing such payment obligations and (y) any further assignment by such assignee is subject to the requirements
set forth in this paragraph.

 

(d)          Articles I
(Definitions), VI (Patents and Infringement), VII (Confidentiality), IX (Indemnification; Limitation of Liability; Insurance),
XI (Dispute Resolution) and XII (Miscellaneous Provisions) and Section 2.5 (but only with respect to TGTX in connection with a
termination under Section 10.8), Sections 5.1, 5.3(b), 5.5 (Royalty Reports and Records Retention), 5.6 (Audits), 5.8 (Late
Payments), 5.9 (Taxes) and 10.9 (Effects of Termination/Expiration) hereof shall survive the expiration or termination of this
Agreement for any reason. A termination of any Compound from this Agreement shall also terminate the related Licensed Product and
termination of any Licensed Product shall terminate the related Compound

 

(e)          Termination
or expiration of this Agreement shall not relieve the Parties of any liability that accrued hereunder before the effective date
of such termination or expiration. In addition, termination or expiration of this Agreement shall not preclude either Party from
pursuing all rights and remedies it may have hereunder or at Law or in equity with respect to any breach of this Agreement nor
prejudice either Party’s right to obtain performance of any obligation.

 

(f)          Effect
on Sublicenses.

 

(i)          Upon
the termination of this Agreement in its entirety, each Sublicense which provides for its survival upon such termination shall
survive such termination (but in no event for longer than the period TGTX’s licenses hereunder would have been in effect
had termination not occurred) and remain in full force and effect, with Checkpoint or upon Checkpoint’s election, to Licensor
or an Affiliate of Licensor, as the Sublicensee’s direct licensor solely with respect to the Licensor Technology (“Surviving
Sublicense”). Upon Checkpoint’s written request, provided that a Surviving Sublicense does not include licenses
to products other than Licensed Products, TGTX shall assign a Surviving Sublicense to Checkpoint or upon Checkpoint’s election,
to Licensor or an Affiliate of Licensor. If a Surviving Sublicense includes licenses to products other than Licensed Products,
TGTX shall require that the terms of such Surviving Sublicense permits the assignment in part to Checkpoint or upon Checkpoint’s
election, to Licensor or an Affiliate of Licensor, relating to the Licensor Technology and shall, upon Checkpoint’s written
request, assign to Checkpoint or upon Checkpoint’s election, to Licensor or an Affiliate of Licensor, the portion of such
Surviving Sublicense pertaining to the Licensor Technology.

 

    	 	37	 

     

    

 

(ii)         Upon
the termination of this Agreement with respect to a Terminated Product in a Terminated Country, each Sublicense that includes such
Terminated Product in such Terminated Country which provides for its survival upon such termination shall survive such termination
(but in no event for longer than the period TGTX’s licenses hereunder would have been in effect had termination not occurred)
and remain in full force and effect, with (i) Checkpoint or upon Checkpoint’s election, Licensor or an Affiliate of Licensor,
as the Sublicensee’s direct licensor solely with respect to the Licensor Technology and the portion of such Sublicense that
includes such Terminated Product in such Terminated Country (“Surviving Partial Sublicenses”) and (ii) TGTX
continuing as the Sublicensee’s direct licensor with respect to all other rights granted under such Sublicense. Upon such
termination, Checkpoint and Licensor shall be third party beneficiaries of the Surviving Partial Sublicense with respect to the
portion thereof pertaining solely to the Terminated Products in the Terminated Countries. Each Sublicense that provides for survival
as set forth in this Section shall provide for such third party beneficiary status.

 

(iii)        With
respect to each Surviving Sublicense and Surviving Partial Sublicense, in the absence of written notice from Checkpoint to a Sublicensee
under a Surviving Sublicense or Surviving Partial Sublicense provided within forty five (45) days of the termination of this Agreement
electing to continue the payment terms under such Sublicense, in which case such Sublicense payment terms shall continue, the Sublicensee’s
payment obligations with respect to its exercise of its surviving rights to the Licensor Technology (but not with respect to its
exercise or enjoyment of any other rights or assets) thereunder shall, in lieu of any payment obligations set forth in the Sublicense,
be the corresponding payment obligations set forth in this Agreement, provided that (a) with respect to Milestone Payments under
such Sublicense where such Sublicense is for less than the entire Territory and the Milestone Payment is based on cumulative worldwide
Net Sales, the portion of such Milestone Payment for which such Sublicensee shall be liable shall be such Milestone Payment multiplied
by: (I) cumulative Net Sales in such Sublicensee’s territory (and not worldwide Net Sales) divided by (II) cumulative worldwide
Net Sales and (b) with respect to royalties payable under such Sublicense, if the royalty set forth in such Sublicense is equal
to or greater than five percent (5%) of such Sublicensee’s Net Sales, then such amount shall be payable under such Sublicense
in accordance with the terms thereof (in lieu of any royalty payments pursuant to the terms of Section 5.3(a)), and if such royalty
is less than five percent (5%) of such Sublicensee’s Net Sales, then the royalty payable under such Sublicense shall be the
amounts set forth in Section 5.3(a) (in lieu of any royalty payments pursuant to the terms of such Sublicense) and the royalty
tiers will, for the avoidance of doubt, be achieved based on worldwide Net Sales as calculated in accordance with this Agreement,
and Checkpoint shall notify such Sublicensee within thirty (30) days following it becoming aware of a Net Sales tier higher than
the then-current Net Sale tier applying to the calculation of royalties pursuant to Section 5.3(a). Notwithstanding the foregoing,
within thirty (30) days after the effective date of termination of this Agreement, Checkpoint shall have the right to terminate
a Sublicense granted to an Affiliate of TGTX.

 

(g)          Termination
of the License Agreement.

 

(i)          Upon
the termination of the License Agreement in its entirety, this Agreement will remain in full force and effect, with Licensor as
TGTX’s direct licensor solely with respect to the Licensor Technology (“Surviving Agreement”), and in
the event of such a termination of the License Agreement, Checkpoint has the right to assign, in whole or in part, the Surviving
Agreement to Licensor.

 

    	 	38	 

     

    

 

(ii)         Upon
the termination of the License Agreement with respect to a Terminated Product in a Terminated Country, this Agreement will remain
in full force and effect, with (i) Licensor as TGTX’s direct licensor solely with respect to the Licensor Technology and
the portion of this Agreement that includes such Terminated Product in such Terminated Country (“Surviving Partial Agreement”)
and (ii) Checkpoint continuing as TGTX’s direct licensor with respect to all other rights granted under such Surviving Partial
Agreement. Upon such termination, Licensor shall be a third party beneficiary of the Surviving Partial Agreement with respect to
the portion thereof pertaining solely to the Terminated Products in the Terminated Countries.

 

(iii)        With
respect to the Surviving Agreement and Surviving Partial Agreement, the payment terms under this Agreement will continue, except
that payment with respect to the Licensed Products will be made directly to Licensor and not Checkpoint.

 

ARTICLE
XI

DISPUTE RESOLUTION

 

11.1       General.
Checkpoint and TGTX shall endeavor to resolve any claim or controversy arising out of the threatened breach, breach, enforcement,
interpretation, termination or validity of this Agreement informally by good faith negotiation between the senior executives, officers
or management of Checkpoint and TGTX. Either Party may give the other Party written notice of any claim or controversy not resolved
in the normal course of business (the “Disputing Party Notice”). Within thirty (30) calendar days after
the delivery of the Disputing Party Notice, the receiving Party shall submit to the other Party a written response (the “Response”).
The Disputing Party Notice and Response shall include a statement of each Party’s position and a summary of the arguments
supporting that position. Within thirty (30) days after the Disputing Party Notice, such designated senior executives, officers
or management of Checkpoint and TGTX shall meet at a mutually acceptable time and place and thereafter as often as they reasonably
deem necessary to attempt to resolve the claim or controversy. If such efforts do not result in mutually satisfactory resolution
of the dispute, the matter shall be referred to the chief executive officers of Checkpoint and TGTX, or their designees. The chief
executive officers, or their designees, as the case may be, shall negotiate in good faith to resolve such dispute in a mutually
satisfactory manner for up to thirty additional (30) days, or such longer period of time to which the chief executive officers
may agree. All negotiations pursuant to this Article 11 are confidential and without prejudice and shall be treated as compromise
and settlement negotiations for purposes of applicable rules of evidence. If the chief executive officers, or their designees,
as the case may be, are unable to determine a resolution in the time frame set forth above, the matter may be resolved through
arbitration in accordance with the provisions set forth in Section 11.2, in the event of a Technical Dispute or Section 11.3,
in the event of other disputes, as applicable, upon notice by a Party on the other Party specifically requesting such arbitration.
This Article 11 shall not prohibit a Party from seeking injunctive relief from a court of competent jurisdiction in the event
of a breach or prospective breach of this Agreement by any Party which would cause irreparable harm to the other Party.

 

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11.2       Technical
Disputes. In the event a dispute over (i) whether a Milestone has been achieved, (ii) whether TGTX has used Commercially
Reasonable Efforts to Develop the Licensed Product, (iii) the proper allocation of Net Sales to a Licensed Product where the Licensed
Product is sold as part of a Combination Product, or (iv) the Combination Percentage (each, a “Technical Dispute”)
is not resolved in accordance with the negotiation and mediation dispute resolution processes described in Section 11.1 above,
then either Party may submit the matter to expert intervention in accordance with this Section 11.2. Any such intervention
may be initiated by a Party by written notice to the other Party specifying the subject of the requested intervention. The Technical
Dispute hearings shall be convened in New York, New York and shall be resolved by one expert, to be mutually selected by the Parties;
or if the Parties fail to agree on the expert within ten (10) business days following the date of such written notice, then
the Parties shall cause their respective nominees to select a third individual within ten (10) business days to serve as the
expert (the “Expert”). The Expert shall be required to have pharmaceutical industry experience specifically
related to conducting formulation development activities and clinical trials, and shall not be any employee, agent or consultant
of any Party or an Affiliate of any Party at such time, or otherwise involved (whether by contract or otherwise) in the affairs
of any Party at such time. Each Party simultaneously shall submit to the Expert its proposal with respect to its position on the
resolution of the Technical Dispute without having seen the other Party’s proposal, along with a discussion document explaining
the rationale therefor. The Expert shall have the right to meet with the Parties, either alone or together, and shall have the
right to request additional information and documents from each Party. The Expert shall select only one of the Parties’ proposals
based on the Expert’s determination of which proposal is more consistent with the Expert’s opinion on the resolution
of the Technical Dispute (and consistent with the terms of this Agreement), and shall provide a brief written rationale for such
selection. The Expert’s decision shall be final and shall be binding upon the Parties under this Agreement. The Parties shall
submit their documentation to the Expert within fifteen (15) days of selection of the Expert and provide any requested additional
information and documents within ten (10) days of such request. The Expert shall make his or her decision within fifteen (15) days
of such submission (extended by the Expert in his discretion to provide adequate time to review requested documents but in no event
shall the decision be made more than thirty (30) days after submission).

 

11.3       Other
Disputes. Where a Party has served a written notice upon the other requesting arbitration of a dispute that is not subject
to Section 11.2, any such dispute shall be submitted to final and binding arbitration under the then current commercial arbitration
rules of the American Arbitration Association (the “AAA”) in accordance with this Section 11.3. The place
of arbitration of any dispute shall be New York, New York. Such arbitration shall be conducted by one (1) arbitrator mutually
agreed by the Parties but if such agreement cannot be reached within ten (10) days of the commencement of the arbitration,
then an arbitrator appointed by the AAA. The arbitrator shall be a person with relevant experience in the pharmaceutical industry.
The arbitration proceeding shall be held as soon as practicable but in any event within ninety (90) days of appointment of
the arbitrator. Any award rendered by the arbitrators shall be final and binding upon the Parties. Judgment upon any award rendered
may be entered in any court having jurisdiction, or application may be made to such court for a judicial acceptance of the award
and an order of enforcement, as the case may be. The arbitrator shall render a formal, binding, non-appealable resolution and award
as expeditiously as possible, but not more than thirty (30) days after the hearing. Each Party shall pay its own expenses
of arbitration, and the expenses of the arbitrator shall be equally shared between the Parties unless the arbitrators assess as
part of their award all or any part of the arbitration expenses of a Party (including reasonable attorneys’ fees) against
the other Party. A Party may make application to the Arbitrator for the award and recovery of its fees and expenses (including
reasonable attorneys’ fees).

 

    	 	40	 

     

    

 

ARTICLE
XII

MISCELLANEOUS PROVISIONS

 

12.1       Relationship
of the Parties. Nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency, joint venture
or employer-employee relationship between the Parties. No Party shall have any right or authority to commit or legally bind any
other Party in any way whatsoever including, without limitation, the making of any agreement, representation or warranty and each
Party agrees to not purport to do so.

 

12.2       Assignment.
Neither Party may assign this Agreement, or any of its rights or obligations hereunder without the other Party’s prior
written consent, provided that each Party will, notwithstanding anything to the contrary, be entitled, without the other Party’s
prior written consent, to assign or transfer this Agreement: (i) in connection with the transfer or sale of all or substantially
all of such Party’s assets or business (or that portion thereof related to the subject matter of this Agreement) to a Third
Party, (ii) in the event of such Party’s merger, consolidation, reorganization, with or into a Third Party, change of control
or similar transaction, with a Third Party, or (iii) to an Affiliate of such Party, provided that in the case of an assignment
to an Affiliate, the assigning Party shall remain primarily liable for the obligations of such Affiliate except where the non-assigning
Party provided its prior written consent to such assignment, such consent to not be unreasonably withheld or delayed (in which
case the assigning Party shall not remain primarily liable). Any permitted assignee of either Party will, as a condition to such
assignment, assume all obligations of its assignor arising under this Agreement following such assignment. Any purported assignment
by a Party of this Agreement, or any of such Party’s rights or obligations hereunder, in violation of this Section 12.2
will be void ab initio.

 

12.3       Further
Actions. Each Party agrees to execute, acknowledge and deliver such further instruments and to do all such other acts as may
be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

12.4       Force
Majeure. Except for TGTX’s obligation to pay the agreed amounts to Checkpoint, no Party shall be liable to any other
Party or be deemed to have breached or defaulted under this Agreement for failure or delay in the performance of any of its obligations
under this Agreement (other than obligations for the payment of money) for the time and to the extent such failure or delay is
caused by or results from acts of God, earthquake, riot, civil commotion, terrorism, war, strikes or other labor disputes, fire,
flood, failure or delay of transportation, omissions or delays in acting by a governmental authority, acts of a government or an
agency thereof or judicial orders or decrees or restrictions or any other like reason which is beyond the control of the respective
Party (a “Force Majeure Event”). 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 Efforts to overcome the difficulties created thereby and
to resume performance of its obligations hereunder as soon as practicable, and the time for performance shall be extended for a
number of days equal to the duration of the force majeure. The Party not subject to the Force Majeure Event may terminate this
Agreement if such Force Majeure Event exists for 90 days in any 365-day period on ten (10) days’ notice to the
other Party.

 

    	 	41	 

     

    

 

12.5       Entire
Agreement of the Parties; Amendments. This Agreement and the Schedules hereto constitute and contain the entire understanding
and agreement of the Parties respecting the subject matter hereof and cancel and supersede any and all prior or contemporaneous
negotiations, correspondence, understandings and agreements between the Parties, whether oral or written, regarding such subject
matter (provided, that any and all previous nondisclosure/nonuse obligations are not superseded and remain in full force and effect
in addition to the nondisclosure/nonuse provisions hereof). Each Party acknowledges that it has not relied, in deciding whether
to enter into this Agreement on this Agreement’s expressly stated terms and conditions, on any representations, warranties,
agreements, commitments or promises which are not expressly set forth within this Agreement. No modification or amendment of any
provision of this Agreement shall be valid or effective unless made in a writing referencing this Agreement and signed by a duly
authorized officer of each Party.

 

12.6       Governing
Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, excluding application
of any conflict of laws principles. With respect to docketing an arbitration award or seeking injunctive relief, each Party (a) irrevocably
submits to the exclusive jurisdiction in the United States District Court for the Southern District of New York located in New
York, New York and any State courts sitting in New York, New York (collectively, the “Courts”), and (b) agrees
not to raise any objection at any time to the laying or maintaining of the venue of any such action, suit or proceeding in any
of the Courts, irrevocably waives any claim that such action, suit or other proceeding has been brought in an inconvenient forum
and further irrevocably waives the right to object, that such Courts do not have any jurisdiction over such Party. The United Nations
Convention on Contracts for the International Sale of Goods will not apply to this Agreement.

 

12.7       Notices
and Deliveries. All notices required or permitted to be given under this Agreement shall be in writing and shall be deemed
given upon receipt if delivered personally or mailed by registered or certified mail (return receipt requested), postage prepaid,
or sent by prepaid express courier service, to the Parties at the following addresses (or at such other address for a Party as
shall be specified by the notice; provided that notices of a change of address shall be effective only upon receipt thereof):

 

If to Checkpoint, addressed to:

 

Checkpoint Therapeutics, Inc.

2 Gansevoort Street, 9th Floor

New York, NY 10014

Attention: President

 

If to TGTX, addressed to:

 

TG Therapeutics, Inc

2 Gansevoort Street, 9th Floor

New York, NY 10014

Attention: President

    	 	42	 

     

    

 

12.8       Waiver.
No waiver of any provision of this Agreement shall be valid or effective unless made in a writing referencing this Agreement
and signed by a duly authorized officer of the waiving Party. A waiver by a Party of any of the terms and conditions of this Agreement
in any instance shall not be deemed or construed to be a waiver of such term or condition for the future, or of any other term
or condition hereof.

 

12.9       Rights
and Remedies are Cumulative. Except to the extent expressly set forth herein, all rights, remedies, undertakings, obligations
and agreements contained in or available upon violation of this Agreement shall be cumulative and none of them shall be in limitation
of any other remedy or right authorized in law or in equity, or any undertaking, obligation or agreement of the applicable Party.

 

12.10     Severability.
This Agreement is severable. When possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable Law, but if any provision of this Agreement is held to be to any extent prohibited by or invalid under
applicable Law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement (or of such provision). The Parties shall make a good faith effort to replace the invalid or unenforceable
provision with a valid one which in its economic effect is most consistent with the invalid or unenforceable provision.

 

12.11     Third
Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of each Party hereto and
their respective successors or permitted assigns and it is not the intention of the Parties to confer third-party beneficiary rights
upon any other person, including without limitation Sublicensees. If a provision provides a benefit to a Sublicensee or indemnitee,
such benefits can only be enforced through a Party or by a separate agreement between such Person and the Party or Parties providing
the benefit.

 

12.12     Equitable
Relief. Each Party recognizes that the covenants and agreements herein and their continued performance as set forth in this
Agreement are necessary and critical to protect the legitimate interests of the other Party, that the other Party would not have
entered into this Agreement in the absence of such covenants and agreements and the assurance of continued performance as set forth
in this Agreement, and that a Party’s breach or threatened breach of such covenants and agreements may cause the opposed
Party irreparable harm and significant injury, the amount of which will be extremely difficult to estimate and ascertain, thus
potentially making any remedy at law or in damages inadequate. Therefore, each Party agrees that an opposed Party shall be entitled
to seek specific performance, an order restraining any breach or threatened breach of Article VII or Section 2.5 and
all other provisions of this Agreement, and any other equitable relief (including but not limited to temporary, preliminary and/or
permanent injunctive relief). This right shall be in addition to and not exclusive of any other remedy available to such other
Party at law or in equity.

 

    	 	43	 

     

    

 

12.13     Interpretation.
The language used in this Agreement is the language chosen by the Parties to express their mutual intent, and no provision
of this Agreement shall be interpreted for or against a Party because that Party or its attorney drafted the provision.

 

12.14     Construction.
The words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” All references herein to Articles, Sections and Schedules shall be deemed references to Articles
and Sections of, and Schedules to, this Agreement unless the context shall otherwise require.

 

12.15     Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which together will be
deemed to be one and the same instrument. A portable document format (.pdf) copy of this Agreement, including the signature pages,
will be deemed an original.

 

[the remainder of this page has been
left blank intentionally]

 

    	 	44	 

     

    

 

IN WITNESS WHEREOF,
the Parties have caused this Sublicense Agreement to be executed and delivered by their respective duly authorized officers as
of the day and year first above written.

 

	Checkpoint Therapeutics, Inc.	 
	 	 
	By:	/s/ James F. Oliviero	 
	 	 	 
	Name:	James F. Oliviero	 
	 	 	 
	Title:	President & CEO	 
	 	 
	 	 
	
        TG Therapeutics, Inc.

         
	 
	 	 
	By:	/s/ Michael S. Weiss	 
	 	 	 
	Name:	Michael S. Weiss	 
	 	 	 
	Title:	Chief Executive Officer	 

 

     

     

    

 

Schedule 1

 

Compounds

 

1.          JBET070

2.          JBET050

 

     

     

    

 

Schedule 2

 

Licensor Patents

 

	
        Case

        No.
	 	Title 	 	Country 	 	Status	 	Application No.	 	Filing Date	 	Publication No.	 	Publication Date
	1	 	*	 	*	 	*	 	*	 	*	 	*	 	N/A
	2	 	*	 	*	 	*	 	*	 	*	 	*	 	N/A

 

NOTE: The complete specification and
PCT application for * under progress and shall be filed on or before *.

 

 

* Confidential
material redacted and filed separately with the Commission.

 

     

     

    

 

Schedule 3

 

[Reserved]

 

     

     

    

 

Schedule 4

 

Work Plan

 

*

 

 

* Confidential
material redacted and filed separately with the Commission.

 

     

     

    

 

Schedule 5

 

TGTX’s Exchange Rate Policies

 

Net Sales and royalties payable
shall be expressed in United States Dollars equivalent, calculated using the simple average of the exchange rate published in the
Wall Street Journal on the last day of each month of the Reporting Period.

 

     

     

    

 

Schedule 6

 

[Reserved]

 

     

     

    

 

Schedule 7

 

Success Criteria for Toxicology Study

 

* studies will
comprise the following:

 

	Activities	 	Success Criteria
	*	 	*
	*	 	*
	*	 	*
	**	 	*
	**	 	*

 

 

**.

 

*.

 

Any dispute as to whether * studies meet the success
criteria will be resolved pursuant to Section 11.2.

 

*

 

* Confidential
material redacted and filed separately with the Commission.Exhibit 10.1

 

NEITHER
THE ISSUANCE
AND SALE
OF THE
SECURITIES REPRESENTED
BY THIS CERTIFICATE
NOR THE SECURITIES
INTO WHICH THESE
SECURITIES ARE
CONVERTIBLE HAVE
BEEN REGISTERED
UNDER THE
SECURITIES ACT
OF 1933, AS
AMENDED, OR
APPLICABLE STATE
SECURITIES LAWS.
THE SECURITIES MAY
NOT BE OFFERED FOR
SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED,
OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL
SHALL BE SELECTED BY
THE HOLDER),
IN A GENERALLY
ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO
RULE 144
OR RULE
144A UNDER
SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE
PLEDGED IN CONNECTION
WITH A BONA
FIDE MARGIN
ACCOUNT OR
OTHER LOAN OR
FINANCING ARRANGEMENT SECURED
BY THE SECURITIES.

 

 

	Principal Amount: $224,318.00	Issue
    Date: June 30, 2016
	Purchase Price: $195,059.00	 
	Original Issue Discount: $29,259.00	 

 

 

SENIOR SECURED
CONVERTIBLE PROMISSORY NOTE

 

FOR
VALUE RECEIVED, FastFunds
Financial Corporation a Nevada corporation
(hereinafter called the “Borrower”), and the Borrower’s majority owned subsidiary,
Brawnstone Security, LLC, an Ohio limited liability company, hereby
promise to pay to the order of CAREBOURN
CAPITAL, L.P., a Delaware
limited partnership, or registered
assigns (the “Holder”) the
sum of $224,318.00 together with
any interest as set
forth herein, on November
30, 2017 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of 12% (The “Interest
Rate”) per annum from
the date hereof (the “Issue
Date”) until the same
becomes due and payable,
whether at maturity or
upon acceleration or
by prepayment or otherwise. This
Note may not be prepaid in whole or
in part except as
otherwise explicitly set forth herein. Any amount
of principal or interest on this Note
which is not paid when due shall bear interest
at the rate of twenty two percent
(22%) per annum from the due date thereof until
the same is paid
(“Default Interest”). Interest shall commence
accruing on the date that the Note
is fully paid and shall be computed on the basis
of a 365-day year and the actual number
of days elapsed. All payments
due hereunder (to the extent not converted
into common stock, $0.001 par value
per share (the “Common Stock”) in accordance with
the terms hereof) shall be
made in lawful money of the United States
of America. All payments shall be made at such
address as the Holder shall
hereafter give to
the Borrower by written notice made in accordance with
the provisions of this Note.
Whenever any amount expressed
to be due by the terms of
this Note is due on any day which is
not a business day, the same shall instead
be due on the next succeeding day which is a business
day and, in the case of any
interest payment date which is not the date
on which this Note is paid in full,
the extension of the due date thereof shall not
be taken into account for purposes
of determining the amount of interest
due on such date. As used in
this Note, the term “business day” shall mean
any day other than a Saturday,
Sunday or a day on which commercial banks in the city
of New York, New York are authorized or required by law
or executive order to remain closed. Each
capitalized term used herein,
and not otherwise defined, shall have the meaning
ascribed thereto in that certain
Securities Purchase Agreement dated
the date hereof, pursuant to which
this Note was originally issued (the “Purchase
Agreement”).

 

This
Note carries
an original
issue discount of
$29,259.00 (the
“OID”). In
addition, the
Borrower shall
authorize the Holder,
pursuant to a
disbursement memorandum
dated on
or around
the Issue
Date, to pay $5,000.00 (the
“Transactional Expense Amount”)
to the Holder or the Holder’s
designee, to cover the Holder’s
accounting fees, due diligence fees,
monitoring (including but not limited to
ACH monitoring costs), and/or other transactional
costs incurred
in connection with the purchase and
sale of the Note, as well
as $500.00 (the “Legal Fee”)
to Holder’s attorney,
to cover Holder’s legal
review fees in
connection with
the purchase
and sale of the Note, all
of which are included in the initial
principal balance of this Note. Thus,
the purchase price
of this Note shall
be $195,059.00, computed
as follows:
$224,318.00 initial principal
balance less the OID. Accordingly,
the net amount to be received by the
Company shall be $189,559.00, computed
as follows: the purchase
price of $195,059.00, less the Transactional
Expense Amount and Legal Fee.

 

This
Note is free
from all
taxes, liens,
claims and
encumbrances with
respect to
the issue
thereof and
shall not
be subject to
preemptive rights
or other similar
rights of
shareholders of
the Borrower
and will not impose personal liability
upon the holder thereof.

 

This
Note is a
secured, senior
obligation of
the Borrower,
with priority over
all existing
and future
Indebtedness (as
defined below)
of the Borrower
as provided
for herein.
The obligations
of the Borrower under this
Note are secured
by all
of the outstanding shares
of the Borrower’s Series
C Preferred
stock, pursuant
to the pledge
agreement attached
as Exhibit “E”
hereto. Until this Note is satisfied
in full, pursuant to the terms of this
Note, neither
the Borrower nor
Henry Fong shall effectuate
any sale, transfer, disposition,
or changes
in the rights
and designations of
any of the Borrower’s Series
C Preferred stock.

 

The
obligations of
the Borrower
under this
Note shall
rank senior
with respect
to all
existing Indebtedness
of the Borrower
as of
the date
hereof and
to any
and all
Indebtedness incurred
as of or following
the Issue Date.

 

So long as the Borrower shall
have any obligation
under this Note, the Borrower shall not (directly or indirectly through any Subsidiary or affiliate) incur
or suffer to exist or guarantee any Indebtedness that is senior to or pari passu with (in priority of payment and performance) the Borrower’s
obligations hereunder. As used
herein, the term “Indebtedness”
means (a) all
indebtedness of the Borrower for borrowed money or
for the deferred purchase price of
property or services, including any type of letters
of credit, (b) all obligations of
the Borrower evidenced by notes,
bonds, debentures or other similar instruments, (c) purchase money
indebtedness hereafter incurred by
the Borrower to finance the purchase of fixed
or capital assets, including
all capital lease
obligations of the Borrower which do
not exceed the purchase price of
the assets funded, (d) all
guarantee obligations of the Borrower in respect
of obligations of the kind referred
to in clauses (a) through (c) above
that the Borrower would not be permitted
to incur or enter into, and (e) all obligations of
the kind referred to in clauses (a) through
(d) above that the Borrower is not permitted to incur or enter
into that are secured and/or unsecured by
(or for which the holder of such obligation
has an existing right,
contingent or otherwise, to
be secured and/or unsecured by) any lien or encumbrance
on property (including accounts and contract
rights) owned by the Borrower,
whether or not the Borrower has
assumed or become liable for the payment
of such obligation.

 

The following
terms shall also apply
to this Note:

 

ARTICLE
I. CONVERSION
RIGHTS

 

1.1 
Conversion Right.
The Holder
shall have
the right from
time to time,
and at
any time
following Ninety (90)
days after
the date
of this Note
and ending
on the later
of: (i) the
Maturity Date and
(ii) the date
of payment
of the Default Amount (as
defined in Article
III) pursuant to Section 1.6(a) or Article
III, each in respect of the remaining
outstanding principal amount
of this Note
to convert
all or
any part
of the outstanding
and unpaid
principal amount
of this Note into fully paid
and non- assessable shares of Common Stock, as
such Common Stock exists on the Issue Date,
or any shares of
capital stock or other securities of the Borrower
into which such Common Stock
shall hereafter be changed
or reclassified at the conversion
price (the “Conversion Price”)
determined as provided
herein (a “Conversion”);
provided, however, that
in no event shall
the Holder
be entitled
to convert any
portion of this Note in excess
of that portion of this Note upon
conversion of which
the sum of (1) the
number of shares
of Common Stock beneficially owned by
the Holder and its affiliates
(other than shares of Common Stock which
may be deemed beneficially
owned through the ownership of
the unconverted portion of the Notes
or the unexercised or unconverted portion of any other security of the Borrower
subject to a limitation on conversion
or exercise analogous to the limitations
contained herein) and
(2) the number
of shares
of Common
Stock issuable upon
the conversion of
the portion of this Note with respect
to which the determination
of this proviso is being made,
would result in beneficial ownership
by the Holder and
its affiliates of more than 4.99% of
the outstanding shares of Common Stock.
For purposes of the proviso to the immediately
preceding sentence, beneficial
ownership shall be determined in accordance
with Section 13(d) of the Securities
Exchange Act of 1934, as
amended (the “Exchange Act”),
and Regulations 13D-G thereunder, except
as otherwise
provided in
clause (1) of such
proviso, provided,
further, however,
that the limitations on conversion
may be waived by
the Holder upon, at
the election of the Holder, not
less than 61
days’ prior notice
to the Borrower, and
the provisions of
the conversion limitation shall
continue to apply until such 61st day
(or such later date, as determined by
the Holder, as may be
specified in such notice of waiver).
The number of shares of Common
Stock to be issued upon each conversion
of this Note shall
be determined
by dividing the Conversion
Amount (as defined
below) by the applicable
Conversion Price then in effect
on the date specified in the notice
of conversion, in the form attached
hereto as Exhibit A (the “Notice
of Conversion”), delivered
to the Borrower
by the
Holder in
accordance with
Section 1.4
below; provided
that the Notice of Conversion is
submitted by facsimile or e-mail (or by
other means resulting in, or reasonably
expected to result
in, notice) to
the Borrower before 6:00
p.m., New York,
New York time
on such
conversion date
(the “Conversion
Date”). The term
“Conversion Amount” means,
with respect to any
conversion of this Note, the sum
of (1) the principal amount of
this Note to be converted
in such
conversion plus (2) at
the Holder’s option,
accrued and
unpaid interest,
if any,
on such
principal amount at
the interest rates
provided in
this Note to
the Conversion
Date, plus (3) at the Holder’s
option, Default Interest, if any,
on the amounts referred to in the immediately
preceding clauses (1)
and/or (2) plus (4)
at the Holder’s
option, any amounts
owed to the Holder pursuant
to Sections 1.3 and
1.4(g) hereof.

 

 1.2 Conversion Price.

 

Calculation of Conversion Price. The conversion price (the “Conversion Price”)
shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating
to the Borrower’s
securities or the securities of any subsidiary of
the Borrower, combinations, recapitalization,
reclassifications, extraordinary distributions and
similar events). The "Variable
Conversion Price" shall mean
50% multiplied by the Market Price (as defined herein)
(representing a discount rate of 50%).
In the case that shares of the Borrower’s common stock are not deliverable
via DWAC following the conversion of any amount hereunder, an additional Five
Percent (5%) discount shall be added to
the amount being converted at such
time. In the event that the Borrower’s
shares of common stock are chilled for deposit into
the DTC system and only eligible
for Xclearing deposit, an additional Ten
percent (10%) discount shall
be added to the amount being converted
at such time .“Market Price” means
the lowest one (1) Trading Prices (as
defined below) for the Common Stock during the twenty (20) Trading Day period
ending on the latest complete
Trading Day prior to the Conversion Date. “Trading
Price” means, for any security as of any
date, the lowest price on the OTC Markets OTCQB
Marketplace, or applicable trading market (the “OTCQB”)
as reported by a reliable reporting service
(“Reporting Service”) designated by
the Holder (i.e. Bloomberg) or, if the
OTCQB is not the principal trading
market for such security,
the closing bid price of such security on the principal securities exchange or
trading market where such security is
listed or traded or, if no closing
bid price of such security is available
in any of the foregoing manners,
the average of the closing bid prices
of any market makers for such
security that are listed in the “pink sheets” by the National Quotation
Bureau, Inc. If the Trading Price cannot
be calculated for such security on such date
in the manner provided above, the
Trading Price shall be the fair market value as mutually determined
by the Borrower and the holders of
a majority in interest of the Notes
being converted for which the calculation
of the Trading Price is required in
order to determine the Conversion
Price of such Notes. “Trading
Day” shall mean any day on which the Common
Stock is tradable for any period on the OTCQB, or on the principal securities
exchange or other securities market on
which the Common Stock is then being traded.

 

1.3  Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares,
free from preemptive rights, to provide for the issuance of Common
Stock upon the full conversion
of this Note issued pursuant to
the Purchase Agreement. The Borrower is required at all times to have authorized and
reserved five times the number of shares
that is actually issuable upon full
conversion of the Note (based on the Conversion Price of
the Notes in effect from time to time)(the “Reserved Amount”). The Reserved
Amount shall be increased from time
to time in accordance with the
Borrower’s obligations pursuant to Section
4(g) of the Purchase Agreement.
The Borrower represents that upon issuance,
such shares will
be duly and validly issued, fully paid and
non-assessable. In addition, if the Borrower
shall issue any securities or make any change to
its capital structure which would change
the number of shares of Common Stock
into which the Notes shall be convertible at
the then current Conversion Price, the Borrower shall
at the same time make proper provision so that thereafter there shall be a sufficient
number of shares of Common Stock authorized
and reserved, free from preemptive rights,
for conversion of the outstanding Notes.
The Borrower (i) acknowledges that
it has irrevocably instructed its transfer agent
to issue certificates for the Common
Stock issuable upon conversion
of this Note, and (ii) agrees
that its issuance of this Note shall constitute full
authority to its officers and agents who
are charged with the duty of executing stock certificates to execute and
issue the necessary certificates for shares of
Common Stock in accordance
with the terms and conditions
of this Note.

 

If,
at any
time the Borrower
does not
maintain the Reserved
Amount it will
be considered
an Event
of Default
under Section
3.2 of the
Note. However,
upon receipt
of written notice
from the
Holder of Borrower’s
failure to maintain
the Reserved
Amount, the Borrower
shall have three
(3) days to cure any
deficiencies in the Reserved
Amount.

 

 1.4 Method of Conversion.

 

(a) 
Mechanics of Conversion.
Subject to
Section 1.1,
this Note may
be converted
by the
Holder in whole
or in part
at any
time from
time to time
after One
Hundred Eighty
Days following the Issue
Date, by
(A) submitting to the
Borrower a Notice of
Conversion (by facsimile,
e-mail or other reasonable means
of communication dispatched on the Conversion
Date prior to 6:00 p.m., New York,
New York time) and (B) subject to Section
1.4(b), surrendering
this Note at the
principal office of the Borrower.

 

(b) 
Surrender of
Note Upon Conversion.
Notwithstanding anything
to the contrary
set forth
herein, upon
conversion of
this Note in
accordance with
the terms
hereof, the
Holder shall
not be required
to physically surrender
this Note to
the Borrower
unless the entire
unpaid principal
amount of this Note is
so converted. The Holder and the Borrower
shall maintain records showing the
principal amount so converted
and the dates
of such conversions or shall use such
other method, reasonably satisfactory to the
Holder and
the Borrower, so
as not to require
physical surrender of this Note upon each
such conversion. In the event of
any dispute or discrepancy, such
records of the Borrower
shall, prima facie,
be controlling and
determinative in the absence of manifest
error. Notwithstanding the foregoing,
if any portion of this Note is converted
as aforesaid,
the Holder may
not transfer
this Note unless the Holder
first physically surrenders
this Note to the Borrower,
whereupon the Borrower will forthwith
issue and deliver upon the
order of
the Holder
a new
Note of like
tenor, registered as
the Holder
(upon payment by
the Holder of any
applicable transfer taxes) may request,
representing in the aggregate the remaining
unpaid principal
amount of this Note.
The Holder and any
assignee, by acceptance of this
Note, acknowledge
and agree
that, by reason
of the provisions
of this paragraph,
following conversion of
a portion of
this Note,
the unpaid and
unconverted principal
amount of
this Note represented by this Note
may be less than the
amount stated on the face hereof.

 

(c) 
Payment of
Taxes.
The Borrower
shall not be
required to
pay any
tax which
may be
payable in
respect of
any transfer
involved in
the issue and
delivery of shares
of Common
Stock or other
securities or
property on conversion of
this Note in a name
other than that of
the Holder (or
in street
name), and the
Borrower shall
not be required
to issue or deliver
any such shares
or other securities
or property unless and until the person or
persons (other
than the Holder or the custodian in whose
street name such
shares are to be held for the Holder’s
account) requesting
the issuance thereof shall
have paid to the Borrower
the amount of any such tax
or shall have established to the
satisfaction of the Borrower that
such tax has been paid.

 

(d)  Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion
meeting the requirements for conversion as provided
in this Section 1.4, the Borrower
shall issue and deliver or cause
to be
issued and delivered to or upon the
order of the Holder certificates for
the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance
with the terms hereof and the Purchase Agreement.

 

(e) 
Obligation of Borrower
to Deliver
Common Stock. Upon
receipt by
the Borrower
of a Notice
of Conversion,
the Holder
shall be
deemed to
be the holder of
record of
the Common Stock
issuable upon
such conversion,
the outstanding principal
amount and
the amount of accrued
and unpaid interest on this Note
shall be reduced to reflect
such conversion, and,
unless the Borrower defaults on its obligations
under this Article I, all
rights with respect to the portion of
this Note being so converted shall forthwith
terminate except the right to receive
the Common Stock or other securities, cash
or other assets, as herein
provided, on such conversion.
If the Holder shall have given
a Notice of Conversion as provided herein,
the Borrower’s obligation to issue
and deliver the certificates for Common
Stock shall be absolute and
unconditional, irrespective of the absence
of any action by the Holder
to enforce the same, any waiver or consent
with respect to any provision thereof,
the recovery of any judgment against
any person or any action to enforce
the same, any failure or delay in the
enforcement of any other obligation
of the Borrower
to the holder of
record, or
any setoff, counterclaim,
recoupment, limitation or termination,
or any breach
or alleged breach
by the
Holder of any obligation
to the Borrower, and irrespective
of any other circumstance which
might otherwise limit such
obligation of the
Borrower to the Holder in connection
with such conversion. The Conversion
Date specified in the Notice of Conversion
shall be the Conversion Date
so long as the Notice of Conversion is received
by the Borrower before
6:00 p.m., New York,
New York time, on such date.

 

(f) 
Delivery  of  Common 
Stock  by 
Electronic  Transfer.In
lieu of
delivering physical
certificates representing
the Common Stock
issuable upon
conversion, provided
the Borrower is participating
in the Depository
Trust Company (“DTC”) Fast
Automated Securities Transfer
(“FAST”) program, upon request
of the Holder and its compliance
with the provisions
contained in
Section 1.1 and
in this Section
1.4, the Borrower shall
use its best efforts
to cause its transfer
agent to electronically transmit the
Common Stock issuable
upon conversion to the
Holder by crediting
the account of Holder’s
Prime Broker with DTC through
its Deposit Withdrawal Agent
Commission (“DWAC”) system.

 

(g)  Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to
pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion
of this Note is not delivered by
the Deadline (other than a failure due to the circumstances described in Section
1.3 above, which failure shall be governed
by such Section) the Borrower shall pay to
the Holder $2,000 per day in cash,
for each day beyond
the Deadline that the Borrower fails to deliver such Common Stock. Such
cash amount shall be paid to Holder by the fifth day of the month
following the month in which it has accrued or, at
the option of the Holder (by written notice to
the Borrower by the first day of
the month following the month in which
it has accrued), shall
be added to the principal
amount of this Note, in which event
interest shall accrue thereon
in accordance with the terms of
this Note and such additional
principal amount shall
be convertible into
Common Stock in accordance with
the terms of this Note.  The Borrower agrees
that the right to convert is a
valuable right to the Holder.  The damages
resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to
qualify. Accordingly the parties acknowledge that
the liquidated damages provision contained in this Section 1.4(g) are
justified.

 

1.5 
Concerning the 
Shares.The shares
of Common Stock
issuable upon
conversion of
this Note may
not be sold
or transferred
unless (i) such
shares are sold
pursuant to an
effective registration
statement under
the Act
or (ii) the
Borrower or
its transfer
agent shall
have been furnished with an
opinion of counsel (which opinion shall
be in form, substance and
scope customary for opinions of counsel
in comparable transactions) to the effect
that the shares to be sold or
transferred may
be sold or transferred
pursuant to an
exemption from such registration
or (iii) such shares are sold or transferred
pursuant to Rule 144 under the Act
(or a successor rule) (“Rule
144”) or (iv) such shares are
transferred to an “affiliate”
(as defined in Rule
144) of the
Borrower who
agrees to sell or
otherwise transfer
the shares only
in accordance with this Section
1.5 and who is an
Accredited Investor (as
defined in the Purchase Agreement).
Except as otherwise
provided in the Purchase Agreement
(and subject to the removal
provisions set forth
below), until such
time as
the shares
of Common Stock
issuable upon
conversion of
this Note have been registered
under the Act or
otherwise may be sold pursuant to Rule 144
without any restriction as to the
number of securities as of a particular
date that can then be immediately sold,
each certificate
for shares of
Common Stock issuable
upon conversion of
this Note that has
not been so included in an
effective registration statement
or that has not been sold pursuant
to an
effective registration
statement or
an exemption that
permits removal of
the legend,
shall bear a
legend substantially in the following form, as
appropriate:

 

“NEITHER
THE ISSUANCE
AND SALE
OF THE SECURITIES
REPRESENTED BY
THIS CERTIFICATE
NOR THE SECURITIES
INTO WHICH THESE
SECURITIES ARE
EXERCISABLE HAVE
BEEN REGISTERED
UNDER THE SECURITIES
ACT OF
1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE
SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE
OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT
OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL
(WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER),
IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER
SAID ACT OR (II) UNLESS
SOLD PURSUANT
TO RULE
144 OR RULE
144A UNDER
SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES
MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.”

 

The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer
agent shall have received an opinion of counsel, in form, substance
and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such
Common Stock may be made without registration under the Act, which
opinion shall be accepted by the Company
so that the sale or transfer
is effected or (ii) in the case of
the Common Stock issuable upon
conversion of this Note, such security is registered
for sale by the Holder under an
effective registration statement filed under the Act or otherwise may be sold
pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does
not accept the opinion of counsel provided by the Buyer
with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at
the Deadline, it will be considered an Event of Default
pursuant to Section 3.2 of the Note.

 

 1.6 Effect of Certain Events.

 

(a) 
Effect of
Merger, Consolidation,
Etc. At the
option of the
Holder, the
sale, conveyance
or disposition of
all or
substantially all
of the assets
of the Borrower,
the effectuation
by the Borrower of a transaction
or series of related transactions in which
more than 50% of the voting power of the Borrower is disposed of, or the
consolidation, merger or other business
combination of the Borrower with or
into any other Person
(as defined below) or Persons
when the Borrower is not the survivor
shall either: (i) be deemed to be an
Event of Default (as defined
in Article
III) pursuant to which the
Borrower shall
be required to pay to the Holder
upon the consummation of and
as a condition to such
transaction an amount equal
to the Default Amount (as defined
in Article III) or (ii) be treated pursuant
to Section 1.6(b) hereof. “Person”
shall mean any individual,
corporation, limited liability company,
partnership, association, trust
or other entity or organization.

 

(b)  Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued
and outstanding and prior to conversion of all of the Notes, there
shall be any merger, consolidation,
or an exchange of shares, recapitalization or
reorganization pursuant to a merger or consolidation,
or other similar event,
as a result of which
shares of Common Stock of
the Borrower shall be changed into
the same or a different number of
shares of another class or classes
of stock or securities of the Borrower or another entity, or in case of any
sale or conveyance of all or
substantially all of the assets or more than 50% of
the total outstanding shares
of the Borrower other than in connection
with a plan of complete liquidation of the Borrower, then
the Holder of this Note shall thereafter have the right to receive upon conversion
of this Note, upon the basis and upon
the terms and conditions specified
herein and in lieu of
the shares of Common Stock
immediately theretofore issuable upon conversion, such
stock, securities or assets which the Holder would have been entitled to receive in such
transaction had this Note been converted
in full immediately prior to such transaction (without regard
to any limitations on conversion set forth herein),
and in any such case appropriate provisions shall be
made with respect to the rights and
interests of the Holder of this Note
to the end that the
provisions hereof (including,
without limitation, provisions for adjustment of the Conversion
Price and of the number of shares issuable
upon conversion of the Note) shall thereafter
be applicable, as nearly as
may be practicable in relation to any
securities or assets thereafter deliverable upon the conversion hereof.
The Borrower shall not affect any transaction
described in this Section 1.6(b) unless (a)
it first gives, to the extent practicable,
thirty (30) days prior written notice (but
in any event at least
fifteen (15) days prior written notice)
of the record date of the special
meeting of shareholders to
approve, or if there is no such record date,
the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization
or other similar event or sale of
assets (during which time the Holder shall
be entitled to convert this Note) and (b)
the resulting successor or acquiring entity (if not the Borrower)
assumes by written instrument the
obligations of this Section 1.6(b). The
above provisions shall similarly apply
to successive consolidations, mergers, sales, transfers
or share exchanges.

 

(c) 
Adjustment Due to Distribution.
If the
Borrower shall
declare or
make any distribution
of its assets
(or rights
to acquire
its assets)
to holders
of Common Stock
as a
dividend, stock
repurchase, by
way of
return of capital
or otherwise
(including any dividend
or distribution to the Borrower’s
shareholders in cash or shares (or rights
to acquire shares) of
capital stock of a subsidiary (i.e.,
a spin-off)) (a “Distribution”), then the Holder
of this Note shall be entitled, upon
any conversion of this Note after the date of record
for determining shareholders entitled
to such Distribution, to receive the amount of
such assets which
would have been payable to the Holder
with respect to the shares of Common
Stock issuable upon such
conversion had
such Holder
been the
holder of such
shares of Common
Stock on the
record date
for the determination of
shareholders entitled to such
Distribution.

 

(d)
Notice of
Adjustments. Upon the
occurrence of each
adjustment or
readjustment of
the Conversion
Price as
a result
of the events
described in
this Section
1.6, the Borrower,
at its
expense, shall
promptly compute such
adjustment or readjustment
and prepare
and furnish to the Holder
of a certificate setting forth such
adjustment or readjustment and
showing in detail the facts upon which
such adjustment or readjustment is based.
The Borrower shall, upon the written
request at any time of the Holder,
furnish to such Holder a like certificate
setting forth
(i) such adjustment
or readjustment,
(ii) the Conversion
Price at
the time in
effect and (iii) the number
of shares of Common Stock and
the amount, if any, of other
securities or property which at
the time would be received
upon conversion of the
Note.

 

1.7 
Trading Market
Limitations.
Unless permitted
by the
applicable rules
and regulations
of the principal
securities market
on which
the Common Stock
is then listed
or traded,
in no event shall the Borrower
issue upon conversion
of or
otherwise pursuant to this Note
and the other Notes issued pursuant
to the Purchase Agreement more than the
maximum number of shares of Common Stock that the Borrower
can issue pursuant to any rule of the
principal United States
securities market on
which the Common Stock
is then traded (the “Maximum
Share Amount”),
which shall be
9.99% of the
total shares outstanding
on the Closing Date
(as defined in the Purchase Agreement),
subject to equitable adjustment from
time to time for stock
splits, stock dividends,
combinations, capital reorganizations
and similar events relating
to the Common Stock occurring after the
date hereof.
Once the Maximum Share Amount has
been issued,
if the Borrower
fails to eliminate
any prohibitions under applicable
law or
the rules or regulations of any
stock exchange,
interdealer quotation system or
other self-regulatory organization with jurisdiction
over the Borrower
or any of its securities on the
Borrower’s ability
to issue shares of Common Stock in excess
of the Maximum Share Amount, in lieu
of any further right
to convert this Note, this will
be considered an Event
of Default under Section
3.3 of the Note.

 

1.8  Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares
covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount or
Maximum Share Amount) shall be deemed converted
into shares of Common Stock and
(ii) the Holder’s rights
as a Holder of such converted portion of this
Note shall cease and terminate, excepting only
the right to receive certificates for such
shares of Common Stock and to any remedies provided herein
or otherwise available at
law or in equity to such Holder
because of a failure by the Borrower
to comply with the terms of this Note.
Notwithstanding the foregoing, if a Holder has not received certificates
for all shares of Common Stock prior
to the tenth (10th) business day after the expiration of
the Deadline with respect to a conversion of any portion of
this Note for any reason, then
(unless the Holder otherwise elects to retain its
status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note
with respect to such unconverted
portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the
Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all
cases, the Holder shall retain all of
its rights and remedies (including,
without limitation, (i) the right to
receive Conversion Default Payments
pursuant to Section 1.3 to
the extent required thereby for such
Conversion Default and any
subsequent Conversion Default and
(ii) the right to have the
Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s
failure to convert this Note.

 

1.9 
Prepayment. Notwithstanding
anything to
the contrary contained
in this Note,
the Borrower
may prepay
the amounts
outstanding hereunder pursuant
to the following
terms and conditions, and subject
to the Holder’s acceptance
in Holder’s sole discretion:

 

(a)  At any time during the period beginning on the Issue
Date and ending on the date which is one hundred
and eighty (180) days following the Issue Date, the Borrower shall have the right, exercisable on not
less than twenty (20) Trading Days
prior written notice to the Holder
of the Note to prepay the outstanding
Note (principal and accrued
interest), in full by making a payment
to the Holder of an amount in cash equal
to 130%, multiplied by the
sum of: (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest
on the unpaid principal amount of
this Note plus (y) Default Interest.

 

(b) 
At any time
during the period
beginning the day
which is
one hundred and
eighty one (181)
days following the Issue
Date and
ending on the
last business
day immediately prior to the Maturity
Date, the Borrower shall have the
right, exercisable on not less than
twenty (20)
Trading Days prior
written notice to the Holder
of the Note to prepay the outstanding Note (principal
and accrued
interest), in full by
making a payment to the Holder
of an
amount in cash
equal to 150%, multiplied
by the
sum of: (w) the then outstanding
principal amount of this Note plus (x) accrued
and unpaid interest on the unpaid
principal amount of this Note
plus (y) Default
Interest.

 

(c) 
On or
after the
Maturity Date,
the Borrower
shall have
no right
of prepayment.

 

Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses
and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more
than twenty (20) Trading Days from the date of
the Optional Prepayment Notice. On
the date fixed for prepayment (the “Optional Prepayment Date”), the Borrower
shall make payment of the applicable prepayment
amount to or upon the order of the
Holder as specified by the Holder in writing to the Borrower
at least one (1) business day prior
to the Optional Prepayment Date. If
the Borrower delivers
an Optional Prepayment Notice and fails
to pay the applicable prepayment
amount due to the Holder of the
Note within two (2) business
days following the Optional Prepayment
Date, the Borrower shall forever forfeit
its right to prepay the Note
pursuant to this Section 1.9.
Notwithstanding anything to the
contrary in this Note, the Borrower’s right to
prepay the amounts outstanding under this Note, in accordance
with the terms and conditions
of this Note, is expressly conditional upon the Holder’s written
acceptance, in Holder’s
sole discretion, of such applicable
prepayment during the time that the Borrower is exercising
their right to prepay this Note.

 

ARTICLE
II.  CERTAIN
COVENANTS

 

2.1Distributions
on Capital
Stock. So long
as the
Borrower shall
have any
obligation under
this Note, the
Borrower shall
not without the
Holder’s written
consent (a)
pay, declare
or set
apart for
such payment,
any dividend
or other distribution
(whether in cash,
property or other securities) on shares
of capital stock
other than dividends on shares of
Common Stock solely in the form
of additional shares of
Common Stock or (b) directly or indirectly or through any
subsidiary make any other payment
or distribution in respect of its capital stock
except for distributions pursuant
to any shareholders’ rights plan
which is approved by a
majority of the Borrower’s
disinterested directors.

 

2.3 
Sale of
Assets. So long
as the
Borrower shall
have any
obligation under
this Note,
the Borrower
shall not,
without the Holder’s
written consent,
sell, lease,
exchange (including
but not limited
to an
exchange for assets
of equal or greater
value) or otherwise dispose
of any
significant portion
of its assets
outside the ordinary course of
business. Any consent to the disposition
of any assets may
be conditioned on a specified use
of the proceeds of disposition.

 

2.4  Advances and
Loans. So long as the Borrower shall have any obligation
under this Note, the Borrower shall not, without the Holder’s written consent, lend money,
give credit or make advances to any person, firm, joint venture
or corporation, including, without
limitation, officers, directors, employees, subsidiaries
and affiliates of
the Borrower, except loans, credits
or advances (a) in existence or
committed on the date hereof and
which the Borrower has informed Holder
in writing prior to the date
hereof, (b) made in the ordinary course of business,
(c) made to a pending merging partner pursuant to an agreement of merger or (c) not
in excess of $100,000.

 

 

ARTICLE
III.  EVENTS
OF DEFAULT

 

If any
of the following events of default (each, an
“Event of Default”) shall
occur:

 

3.1 
Failure  to 
Pay  Principal 
or  Interest.The
Borrower fails
to pay
the principal
hereof or
interest thereon
when due on
this Note,
whether at
maturity, upon
acceleration or otherwise, following
a five (5)
day cure
period.

 

3.2  Conversion  and  the  Shares.The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance
with the terms of this Note, fails
to transfer or cause
its transfer agent to transfer (issue)
(electronically or in certificated form) any certificate
for shares of Common Stock issued to the Holder upon
conversion of or otherwise pursuant
to this Note as and when required
by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent
in transferring (or issuing) (electronically or in certificated form) any certificate
for shares of Common
Stock to be issued to
the Holder upon conversion of
or otherwise pursuant to this Note
as and when required by this Note, or fails
to remove (or directs its transfer agent
not to remove or impairs, delays,
and/or hinders its transfer agent from removing) any
restrictive legend (or to withdraw any stop
transfer instructions in respect
thereof) on any certificate
for any shares of Common Stock
issued to the Holder upon conversion of or otherwise pursuant to this Note as
and when required by this
Note (or makes any written
announcement, statement or threat
that it does not intend to honor the obligations described in this paragraph) and any
such failure shall continue uncured
(or any written announcement,
statement or threat not to
honor its obligations shall not be
rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of
this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its
transfer agent. If at the option of the Holder, the Holder advances any
funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the
Borrower to the Holder within forty eight (48) hours of a
demand from the Holder.

 

3.3 
Breach of
Covenants.
The Borrower
breaches any
material covenant
or other
material term
or condition
contained in
this Note and
any collateral
documents including
but not limited
to the Purchase
Agreement and
such breach
continues for a period
of ten (10) days after
written notice thereof to the
Borrower from the
Holder.

 

3.4 
Breach  of 
Representations  and 
Warranties.Any
representation or
warranty of
the Borrower
made herein
or in any
agreement, statement
or certificate
given in
writing pursuant
hereto or in
connection herewith
(including, without limitation,
the Purchase Agreement), shall
be false or misleading in any material
respect when made and the breach
of which has (or with the passage
of time will have) a material adverse effect
on the rights of the Holder with
respect to this Note or the Purchase
Agreement.

 

3.5 
Receiver or
Trustee.The Borrower
or any
subsidiary of the
Borrower shall
make an
assignment for the
benefit of creditors,
or apply for
or consent to
the appointment
of a receiver or
trustee for it or for
a substantial part of its property
or business, or such a receiver or trustee
shall otherwise be
appointed.

 

3.6 
Judgments. Any
money judgment,
writ or similar
process shall
be entered
or filed
against the
Borrower or
any subsidiary
of the Borrower
or any
of its property
or other assets
for more than $50,000, and shall remain
unvacated, unbonded or unstayed for a period of twenty (20) days
unless otherwise consented
to by the Holder,
which consent
will not be unreasonably withheld.

 

3.7 
Bankruptcy.Bankruptcy, insolvency,
reorganization or
liquidation proceedings
or other
proceedings, voluntary
or involuntary,
for relief
under any
bankruptcy law or
any law for the
relief of debtors
shall be instituted by
or against the Borrower
or any subsidiary of the
Borrower.

 

3.8 
Delisting of
Common Stock.The
Borrower shall
fail to
maintain the listing
of the Common
Stock on at
least one
of the OTCQB
or an
equivalent replacement
exchange, the
Nasdaq National
Market, the
Nasdaq SmallCap
Market, the
New York
Stock Exchange, or the American
Stock Exchange.

 

3.9 
Failure to
Comply with the
Exchange Act.The
Borrower shall
fail to
comply with the
reporting requirements
of the Exchange
Act (including
but not limited
to becoming delinquent
in its filings);
and/or the Borrower shall
cease to be subject
to the reporting requirements of
the Exchange Act.

 

3.10 
Liquidation. Any
dissolution, liquidation, or
winding up of
Borrower or
any substantial portion of
its business.

 

3.11 
Cessation of
Operations.
Any cessation
of operations by
Borrower or
Borrower admits
it is otherwise
generally unable to
pay its
debts as
such debts
become due,
provided, however, that
any disclosure
of the Borrower’s ability
to continue as a “going
concern” shall
not be an admission that the
Borrower cannot
pay its debts as they
become due.

 

3.12 
Maintenance of
Assets. The failure
by Borrower
to maintain any
material intellectual
property rights, personal,
real property
or other assets
which are
necessary to conduct
its business (whether now or
in the future).

 

3.13 
Financial Statement
Restatement.
The restatement
of any financial
statements filed
by the
Borrower with
the SEC for
any date
or period from
two years
prior to the
Issue Date
of this Note
and until
this Note is
no longer
outstanding, if
the result
of such
restatement would,
by comparison
to the unrestated
financial statement,
have constituted
a material adverse effect
on the rights of the Holder with respect
to this Note or the Purchase Agreement.

 

3.14 
Reverse Splits.
The Borrower
effectuates a
reverse split of
its Common
Stock without twenty (20) days
prior written notice to the
Holder.

 

3.15 
Replacement of Transfer
Agent.
In the event
that the
Borrower proposes to replace
its transfer
agent, the Borrower
fails to
provide, prior
to the effective
date of such
replacement, a
fully executed
Irrevocable Transfer
Agent Instructions
in a form
as initially
delivered pursuant to the Purchase
Agreement (including but not limited to the provision to irrevocably reserve shares
of Common Stock in the Reserved Amount)
signed by the successor
transfer agent
to Borrower and the
Borrower.

 

3.16 
Cross-Default. Notwithstanding
anything to the
contrary contained
in this Note
or other related
or companion
documents, a
breach or
default by
the Borrower
of any
covenant or
other term or condition
contained any other financial
instrument, including but
not limited to all convertible
promissory notes, already issued,
or issued in the
future, by the Borrower, to the
Holder or any other 3rd
party, after the passage of all
applicable notice and
cure or grace periods, shall, at the
option of the Holder, be
considered a default under this
Note.

 

3.17  ACH Account Change.The Borrower changes it bank account to an account that differs from the bank
account specified on Exhibit B attached hereto, without (i)
prior signed written consent of the Holder and (ii) Borrower’s execution of a signed
authorization agreement for preauthorized payments that is exactly
the same as the form attached hereto as
Exhibit B (except for the new bank
account information) with respect
to the new bank account.

 

3.18 
ACH  Payment 
Default.The Borrower
blocks, rejects,
or otherwise
restricts any
action taken
by Holder
pursuant to
Holder’s rights
under this
Note with respect
to the Borrower’s
bank account,
including but not
limited to
Holder’s withdrawal
of the Specific Daily
Repayment Amount
(as defined
in Exhibit B
attached hereto)
pursuant to an
ACH debit transaction
or otherwise from
the Borrower’s bank
account, or the
Holder’s withdrawal
of the Specific Daily Repayment
Amount from the Borrower’s bank
account pursuant to an ACH debit
transaction or otherwise is
rejected for any
reason.

 

3.19  Event of Default. Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof
or interest thereon when due at
the Maturity Date), the Note shall become immediately
due and payable and the Borrower shall
pay to the Holder, in full satisfaction of its obligations
hereunder, an amount
equal to the Default Sum (as
defined herein). UPON THE OCCURRENCE
AND DURING THE CONTINUATION OF ANY
EVENT OF DEFAULT SPECIFIED IN SECTION
3.2, 3.17, and/or 3.18, THE NOTE SHALL BECOME IMMEDIATELY DUE AND
PAYABLE AND THE BORROWER SHALL
PAY TO THE HOLDER, IN FULL SATISFACTION OF
ITS OBLIGATIONS HEREUNDER, AN AMOUNT
EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED
HEREIN); MULTIPLIED BY (Z)
TWO (2). Upon the occurrence and during the continuation of any Event
of Default specified in Sections
3.1 (solely with respect to failure to pay
the principal hereof or interest
thereon when due on this Note
upon a Trading Market Prepayment
Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, 3.15, and/or 3.16, exercisable through the delivery of written notice to
the Borrower by such Holders (the “Default Notice”), and upon
the occurrence of an Event
of Default specified the remaining
sections of Articles III (other
than failure to pay the principal
hereof or interest thereon at
the Maturity Date specified
in Section 3,1 hereof), the Note shall
become immediately due and payable and
the Borrower shall pay
to the Holder, in full satisfaction of
its obligations hereunder, an amount equal to the greater
of (i) 150% times the sum of (w) the then outstanding principal amount
of this Note plus (x) accrued and
unpaid interest on the unpaid principal amount
of this Note to the date of payment (the
“Mandatory Prepayment Date”) plus (y) Default Interest, if any,
on the amounts referred to in clauses (w) and/or (x)
plus (z) any amounts owed to the Holder
pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount
of this Note to the date of payment plus
the amounts referred to
in clauses (x), (y) and (z) shall collectively
be known as
the “Default Sum”) or
(ii) the “parity value” of the Default Sum to be prepaid, where
parity value means (a) the highest number of shares of
Common Stock issuable upon conversion of or otherwise
pursuant to such Default Sum
in accordance with Article I, treating the Trading Day immediately preceding the
Mandatory Prepayment Date as the
“Conversion Date” for purposes
of determining the lowest applicable Conversion Price,
unless the Default Event arises as
a result of a breach in respect
of a specific Conversion Date in which case
such Conversion Date shall
be the Conversion Date),
multiplied by (b) the highest
Closing Price for the Common Stock during the period
beginning on the date of first occurrence of
the Event of Default and ending
one day prior to the Mandatory Prepayment
Date (the “Default Amount”) and all
other amounts payable hereunder  shall immediately become  due  and
payable,  all without demand,  presentment
or notice, all of which hereby are
expressly waived, together with all costs, including, without limitation, legal fees and
expenses, of collection, and
the Holder shall be entitled to exercise
all other rights and remedies available at law or
in equity.

 

If
the Borrower
fails to pay
the Default
Amount within five
(5) business
days of
written notice
that such
amount is
due and
payable, then
the Holder shall
have the
right at
any time, so
long as the Borrower
remains in default (and
so long and to the extent that there
are sufficient authorized shares),
to require the Borrower, upon
written notice,
to immediately issue,
in lieu of the
Default Amount, the number of shares
of Common Stock of the Borrower
equal to
the Default Amount divided
by the Conversion Price then in effect.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1 
Failure or
Indulgence Not
Waiver. No failure
or delay
on the part
of the Holder
in the exercise
of any
power, right
or privilege
hereunder shall operate
as a waiver
thereof, nor shall any single
or partial exercise of any such
power, right or privilege preclude other or further
exercise thereof or of any
other right, power or privileges.
All rights and remedies
existing hereunder
are cumulative
to, and not
exclusive of, any rights
or remedies otherwise
available.

 

4.2 
Notices. All
notices, demands,
requests, consents, approvals,
and other communications
required or permitted
hereunder shall
be in writing
and, unless otherwise
specified herein, shall
be (i) personally
served, (ii)
deposited in
the mail, registered
or certified,
return receipt requested,
postage prepaid, (iii) delivered
by reputable air courier service
with charges prepaid, or
(iv) transmitted by hand
delivery, telegram, or facsimile, addressed
as set forth below
or to
such other
address as
such party shall
have specified most recently
by written notice. Any
notice or other communication
required or permitted to be given
hereunder shall
be deemed effective
(a) upon hand delivery or delivery
by facsimile, with accurate confirmation
generated by the transmitting facsimile
machine, at the address
or number designated below (if delivered
on a business day during normal
business hours where such notice is
to be received), or
the first business day
following such delivery (if delivered
other than on a business day
during normal business
hours where such notice is to
be received) or (b) on the second business
day following the date of mailing
by express courier
service, fully prepaid, addressed to such
address, or upon actual receipt
of such mailing, whichever
shall first occur. The addresses
for such communications shall be:

 

If
to the Borrower, to:

 

FastFunds
Financial Corporation

319 Clematis Street, Suite
400

West
Palm Beach,
Florida 33401

Attention: Henry
Fong / CEO

Email:
HenryFong1@gmail.com

 

If
to the Holder:

 

CAREBOURN
CAPITAL, L.P.

8700 Black
Oaks Lane N

Maple
Grove, Minnesota 55311

Attn:
Chip Rice, Managing Member

Email:
info@carebourncapital.com

 

4.3 
Amendments. This
Note and
any provision
hereof may
only be
amended by
an instrument
in writing
signed by
the Borrower
and the
Holder. The term
“Note” and
all reference thereto,
as used
throughout this
instrument, shall
mean this
instrument (and
the other Notes issued pursuant
to the Purchase
Agreement) as
originally executed, or
if later
amended or supplemented,
then as so amended
or supplemented.

 

4.4 
Assignability.This Note
shall be
binding upon the
Borrower and
its successors
and assigns,
and shall
inure to be
the benefit
of the Holder
and its
successors and
assigns. Each
transferee of this Note must
be an
“accredited investor” (as defined
in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary,
this Note may be pledged as
collateral in connection with a bona
fide margin account or other
lending arrangement.

 

4.5 
Cost of Collection.
If default
is made in
the payment
of this
Note, the
Borrower shall pay
the Holder hereof costs
of collection, including
reasonable attorneys’ fees.

 

4.6 
Governing  Law.This
Note shall
be governed
by and
construed in
accordance with
the laws
of the State
of Florida
without regard
to principles
of conflicts of
laws. Any action
brought by
either party against
the other concerning
the transactions
contemplated by
this Note shall
be brought only in
the state courts
of Florida
or in the federal
courts located
in the state of Florida. The parties
to this Note hereby irrevocably waive
any objection to
jurisdiction and venue
of any action instituted hereunder
and shall not assert
any defense based
on lack of jurisdiction
or venue
or based upon forum
non conveniens.
The Borrower
and Holder
waive trial by
jury. The prevailing party shall
be entitled to recover from
the other party its reasonable attorney's
fees and costs.
In the event that any provision of this
Note or any other agreement
delivered in connection herewith
is invalid or unenforceable under any
applicable statute or rule of law,
then such provision shall
be deemed inoperative to the extent that
it may conflict therewith
and shall be
deemed modified
to conform
with such
statute or rule
of law. Any such
provision which may prove invalid or unenforceable
under any law
shall not affect the
validity or enforceability of
any other provision
of any
agreement. Each party
hereby irrevocably waives personal service
of process and consents
to process being served in any
suit, action or proceeding
in connection
with this Agreement
or any other Transaction
Document by mailing
a copy thereof via registered
or certified mail or overnight delivery
(with evidence of delivery) to
such party at
the address in effect for notices
to it under this Agreement and
agrees that such service
shall constitute good
and sufficient service of
process and notice
thereof. Nothing contained herein shall
be deemed to limit in any
way any
right to serve
process in any other manner
permitted by
law.

 

4.7  Certain  Amounts.Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
principal amount (or the portion thereof required to be paid
at that time) plus accrued and unpaid interest plus Default
Interest on such
interest, the Borrower and
the Holder agree that
the actual damages
to the Holder from the receipt
of cash payment on this Note may be difficult
to determine and the amount to be
so paid by the Borrower represents
stipulated damages and not a
penalty and is intended to compensate
the Holder in part for loss
of the opportunity to
convert this Note
and to earn a return from the
sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares
pursuant to this Note. The Borrower
and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to
the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common
Stock.

 

4.8 
Purchase Agreement.
By its acceptance
of this Note,
each party
agrees to
be bound by
the applicable terms of
the Purchase Agreement.

 

4.9 
Notice of Corporate
Events.Except as
otherwise provided
below, the
Holder of
this Note shall
have no
rights as
a Holder of
Common Stock unless
and only
to the extent that it converts
this Note into Common Stock. The
Borrower shall provide the
Holder with
prior notification of
any meeting of the Borrower’s
shareholders (and copies of proxy materials
and other information sent to shareholders).
In the event of any
taking by the Borrower
of a record of its shareholders for the
purpose of determining shareholders
who are entitled to receive
payment of any
dividend or other
distribution, any right to subscribe
for, purchase
or otherwise
acquire (including by way of merger,
consolidation, reclassification or recapitalization)
any share of any class or
any other securities or
property, or to receive
any other right, or
for the purpose
of determining shareholders who
are entitled to vote in connection
with any proposed sale, lease or conveyance
of all or
substantially all of the assets
of the Borrower
or any proposed
liquidation, dissolution or winding up of the Borrower, the Borrower
shall mail a notice to the Holder,
at least twenty (20) days prior
to the record
date specified
therein (or thirty (30) days prior
to the consummation of the transaction
or event, whichever is earlier),
of the date
on which any
such record
is to be
taken for the
purpose of
such dividend,
distribution, right
or other event,
and a brief
statement regarding the amount and character
of such dividend,
distribution, right or other event to
the extent known at such time. The Borrower
shall make a public announcement of
any event requiring notification
to the Holder hereunder
substantially simultaneously with the notification to the
Holder in accordance
with the terms of this Section
4.9.

 

4.10 
Remedies.The Borrower
acknowledges that
a breach
by it
of its obligations
hereunder will
cause irreparable
harm to the
Holder, by
vitiating the intent
and purpose
of the transaction contemplated hereby.
Accordingly, the Borrower acknowledges
that the remedy at
law for a breach
of its obligations
under this
Note will be inadequate
and agrees,
in the event of a breach or
threatened breach
by the Borrower of the provisions
of this Note, that the Holder
shall be
entitled, in
addition to
all other
available remedies
at law
or in equity,
and in addition
to the penalties assessable herein,
to an injunction or injunctions
restraining, preventing or
curing any breach
of this Note and to enforce specifically the
terms and provisions thereof, without
the necessity
of showing economic loss
and without
any bond or
other security being
required.

 

4.11 
Reverse Split
Penalty.
If at
any time while
this Note is
outstanding, the
Borrower effectuates
a reverse
split with respect
to the Common
Stock, then
a liquidated
damages charge
of 15% of
the outstanding balance
of this Note
at that
time, will be
assessed and
will become immediately due and
payable to the Holder at
its election in the form of cash
payment or addition to the balance
of this Note.

 

4.12 
Right of
First Refusal.
If at
any time
while this Note
is outstanding,
the Borrower
has a
bona fide offer
of capital
or financing from
any 3rd
party, the
Borrower must
first offer
such opportunity to the Holder to provide such capital
or financing to the Borrower on the same
terms as each
respective 3rd
party’s terms. Should the Holder
be unwilling or unable to provide such
capital or financing to the Borrower
within 15 days from receipt of written
notice of the offer (the “Offer
Notice”) from the Borrower,
then the Borrower may obtain such
capital or financing from
that respective 3rd party
upon the same terms and
conditions offered by
the Borrower to
the Holder,
which transaction
must be
completed within
30 days after
the date
of the Offer Notice.
If the Borrower does not complete
such transaction within such time period,
then the Borrower must again offer
the capital or financing opportunity to the Holder
on the same terms, and the
process detailed above shall be repeated.

 

4.13 
Maintenance of
Reserve. In
the event that
the Borrower
fails to maintain
the Reserved
Amount as
of the 115th
day following the
issue date of
this Note,
the Borrower
shall issue a new note (identical
in terms to the Note) which
contains a principal value equal to 25% multiplied
by the aggregated
total principal and accrued interest
owed under
the Note as of
that 115th day (the
Penalty Note”), to the
Holder, as a penalty.
The issuance of
the Penalty Note shall be
in addition to all other applicable
penalties contained
herein.

 

4.14 
ACH Payment
Authorization. Borrower
irrevocably authorizes
Holder’s right
to withdraw (through an ACH debit
or otherwise) $750.00 (the “Specific
Daily Repayment
Amount”) (subject
to adjustment as
provided herein)
from the
Borrower’s bank
account (initially,
the bank account identified on Exhibit
B attached hereto, but also including
any subsequent bank account
of the Borrower if such account
is changed) (the “Bank Account”),
on each business
day, until this
Note is satisfied in full. Borrower
shall provide Holder with
all required access
codes to effectuate any and
all ACH debit transactions
as provided for in this Note.
Borrower understands that it is responsible
for ensuring that at least the Specific
Daily Repayment
Amount remains
in its Bank
Account on
each business
day until this Note is
satisfied in full, and that the Borrower
shall be responsible for any charges
incurred by the Holder
resulting from a rejected ACH attempt,
insufficient funds in
the Bank Account, and/or
all related bank charges.
Such charges shall be immediately added
to the outstanding balance of
the Note. The Specific Daily Repayment
Amount shall automatically adjust to such
prorated higher amount
based upon the addition
of charges to the outstanding
balance of Note, as
well as to
reflect any penalties
incurred or events
of defaults triggered
under the terms
of the Note (to be calculated
as follows: the total
outstanding amount
under the Note (including but
not limited to all principal,
interest, charges,
penalties, and additions due
to any event
of default) divided by the number
of business days
remaining prior to the Maturity
Date). Holder shall not
be responsible for any
overdrafts or rejected transactions
that result from Holder’s
ACH debiting of the Specific Daily Repayment
Amount as provided in this Note and the
exhibits hereto. Holder may
debit the Specific Daily
Repayment Amount each business
day.

 

The Holder
shall be
permitted to aggregate
the Specific Daily Repayment
Amount of all
convertible promissory
notes then issued
by the Borrower
to the Holder,
and withdraw
such aggregated
amount from
the Borrower’s
bank account,
in the interest
of reducing
overall fees associated
with the ACH debit transactions.

 

The
Holder may,
from time
to time, provide
a schedule
to the Borrower
via electronic
mail (each
a “Schedule”)
to HenryFong1@gmail.com,
showing the outstanding
balance of the Note as
well as all ACH debits,
conversion amounts, and/or
all other adjustments as
provided in the Note (the “Schedule”).
If the Borrower does not respond to the
Holder, via electronic mail to Info@CarebournCapital.com,
stating that the respective Schedule
is accurate or disputing the amounts
contained therein (with objective
documentation unequivocally supporting such
dispute), within two (2) business days
of receipt of the respective Schedule,
then the Borrower
shall be deemed
to have irrevocably approved
the amounts contained
in such respective Schedule.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

 

    	 

    	 

    

IN WITNESS WHEREOF,
Borrower has caused this Note to be signed in its name by its duly authorized officer
this June 30, 2016.

 

 

FastFunds
Financial Corporation

 

 

 

By: _________________________

Name: Henry
Fong

Title:  CEO

 

 

Brawnstone Security,
LLC

 

 

 

By:
_________________________

Name:
_______________________

Title:
________________________

 

 

    	 

    	 

    

EXHIBIT A: 
NOTICE OF CONVERSION

 

The undersigned hereby elects to convert
$_______________ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued
pursuant to the conversion of the Note (“Common
Stock”) as set forth
below, of FastFunds
Financial Corporation, a Nevada corporation (the “Borrower”)
according to the conditions of the convertible note
of the Borrower dated as
of June 30, 2016 (the “Note”), as
of the date written below. No fee will
be charged to the Holder for
any conversion, except for transfer
taxes, if any.

 

	Box Checked as to applicable instructions: 
	 	 	 	 	 
	 	☐	The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 	 	 
	 	 	Name of DTC Prime Broker: 
	 	 	Account Number:	 
	 	 	 	 	 
	 	☐	The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 
	 	 	 	 	 

	 	 	CAREBOURN
    CAPITAL, L.P.	 
	 	 	8700
    Black Oaks Lane N	 
	 	 	Maple Grove, Minnesota
    55311 	 
	 	 	Attention: Certificate
    Delivery 	 
	 	 	612.889.4671	 
	 	 	 	 
	 	 	Date
    of Conversion:	 _____________
	 	 	Applicable
    Conversion Price:	$____________
	 	 	Number
    of Shares of Common Stock to be Issued	 
	 	 	Pursuant
    to Conversion of the Notes:	 _____________
	 	 	Amount
    of Principal Balance Due remaining	 
	 	 	Under
    the Note after this conversion:	 _____________
	 	 	 	 
	 	 	CAREBOURN
    CAPITAL, L.P.	 
	 	 	 	 
	 	 	 	 
	 	 	By:
    _________________________	 
	 	 	Name:
    Chip Rice	 
	 	 	Title:
    Managing Member	 
	 	 	8700
    Black Oaks Lane N	 
	 	 	Maple Grove, Minnesota 55311	 

 

 

    	 

    	 

    

EXHIBIT B

(see
attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

 

AUTHORIZATION
AGREEMENT FOR
PREAUTHORIZED PAYMENTS

 

 

FastFunds
Financial Corporation,
a Nevada
corporation, and
Brawnstone Security,
LLC, an
Ohio limited
liability company
(collectively the “Company”),
hereby irrevocably authorize
Carebourn Capital,
L.P. (the “Holder”),
to initiate debit and
credit entries to its checking
account indicated below
(the “Account”) and the depository named below
(the “Depository”), to debit
or credit the same to such
Account. The Company further
authorizes the Holder to debit
said Account for such
total outstanding amount
of the convertible promissory note issued
by the Company to Holder
on June 30,
2016 (the “Note”), upon
an Event
of Default
(as defined
in the Note). The Company hereby
represents and
certifies that the Account
is used for commercial and/or
business purposes only.

Depository
Name: US
Bank

 

Name
of Bank Account:
Brawnstone Security, LLC

 

Bank
Address: _________________________________

   _________________________________

 

Routing/ABA Number: 041202582

 

Account
Number: 130120873562

 

A copy
of a voided check for the Account
is attached hereto
as Exhibit “C”. This
authority is to remain in full
force and effect
until the Holder confirms in a
signed writing that the Note
has been satisfied in full, and in a
manner as
to afford the Depository
a reasonable opportunity
to act on it.

 

FastFunds
Financial Corporation

 

 

By: _________________________

Name: Henry
Fong

Title:  CEO

Contact #: ____________________

 

Brawnstone Security,
LLC

 

 

By:
_________________________

Name:
_______________________

Title:
________________________

 

 

    	 

    	 

    

EXHIBIT C

(see
attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

EXHIBIT D

(see
attached)

 

Representations
and Warranties Regarding
Anti-Money Laundering;
OFAC.

 

	1.1. 	The Borrower should check the Office of Foreign Assets Control (“OFAC”) website at http://www.treas.gov/ofac before making the following representations.
	 	 
	1.2. 	The Borrower represents that the cash amounts to be paid to Carebourn Capital, L.P. (the “Holder”) under the convertible promissory note dated June 30, 2016 (the “Note”), by the Borrower, were not and are not directly or indirectly derived from activities that contravene U.S. federal or state or international laws and regulations, including anti-money laundering laws and regulations. U.S. federal regulations and executive orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists.
	 	 
	1.3. 	To the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person controlling or controlled by the Borrower; (3) if the Borrower is a privately-held entity, any person having a beneficial interest in the Borrower; or (4) any person for whom the Borrower is acting as agent or nominee is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs.
	 	 
	1.4. 	To the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person controlling or controlled by the Borrower; (3) if the Borrower is a privately-held entity, any person having a beneficial interest in the Borrower; or (4) any person for whom the Borrower is acting as agent or nominee is a senior foreign political figure2, or any immediate family3 member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below.

	1.5. 	Borrower hereby represents and warrants that the cash payments under the Note are to be made on its own behalf or, if applicable, and such cash payments do not directly or indirectly contravene United States federal, state, local or international laws or regulations applicable to Borrower, including anti-money laundering laws.
	 	 
	1.6. 	If the Borrower is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Borrower receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Borrower represents and warrants to the Holder that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and that is not a regulated affiliate.
	 	 
	1.7. 	Upon the written request from the Holder, Borrower agrees to provide all information to the Holder to enable the Holder to comply with all applicable anti-money laundering statutes, rules, regulations and policies. Borrower understands and agrees that the Holder may release confidential information about Borrower and, if applicable, any of its affiliates, directors, officers, trustees, beneficiaries and grantors related thereto, to any person if the Holder, in its sole discretion, determines that such disclosure is necessary to comply with applicable statutes, rules, regulations and policies.

 

 

IN
WITNESS WHEREOF,
Borrower has
caused this
representation letter
to be
signed in
its name by its duly
authorized officer this June
30, 2016.

 

 

FastFunds
Financial Corporation

 

 

By: _________________________

Name: Henry
Fong

Title: 
CEO

 

Brawnstone Security,
LLC

 

 

By:
_________________________

Name:
_______________________

Title:
________________________

 

 

	_______________________

                     

	 	1	These individuals include
    specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and
    embargo programs.
	 	2	A “senior foreign political
    figure” is defined as a senior official in the executive, legislative, administrative, military or judicial branches
    of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive
    of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation,
    business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.
	 	3	“Immediate family”
    of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and in-laws.
	 	4	A “close associate”
    of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship
    with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international
    financial transactions on behalf of the senior foreign political figure.

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