Document:

Exhibit 10.1

 

RESEARCH
AND SERVICES AGREEMENT

 

THIS
RESEARCH AND SERVICES AGREEMENT (together with the attached Statement of Work, Deliverables and Payment, the “Agreement”)
is made as of February 3, 2020 (the “Effective Date”) by and between ONOTELIC, INC., a Delaware corporation
(“Oncotelic”) and GOLDEN MOUNTAIN PARTNERS, LLC, a California limited liability company (“GMP”).

 

1.
Background and Agreement Structure. The parties hereby enter into a contractual partnership with respect to certain research
of the “coronavirus.” The parties intend for any research results to be “gifted” to the government of
The People’s Republic of China. (The two foregoing sentences express the parties’ “Purpose” in
entering this Agreement.) Oncotelic will perform all research under this Agreement, as set forth herein (collectively, the “Services”).
GMP agrees to pay Oncotelic for its Services.

 

This
Agreement contains the general terms and conditions under which Oncotelic will perform the Services and GMP will compensate or
reimburse Oncotelic for such Services. The attached Statement of Work, Deliverables and Payment (“SOW”) sets
forth the specifics of the Services, deliverables to be delivered by Oncotelic and the milestones upon which compensation and/or
reimbursement will be made to Oncotelic by GMP.

 

2.
Services.

 

	 	2.1	Provision of Services. Oncotelic agrees to provide
all Services identified in the SOW: (a) promptly, and (b) at such times and at such places as mutually agreed upon by
GMP and Oncotelic with Oncotelic agreeing to make every effort to comply with timeframes reasonably set forth on the SOW.

 

	 	2.2	No Subcontracting. At no time shall Oncotelic
subcontract the performance of any of the Services, except to an Affiliate of Oncotelic. “Affiliate” means,
with respect to each party to this Agreement, any corporation, company, partnership, joint venture and/or firm which controls,
is controlled by or is under common control with that party. As used in this Section 2.2, “control” means (i) in
the case of corporate entities, direct or indirect ownership of at least fifty percent (50%) of the stock or shares having
the right to vote for the election of directors (or such lesser percentage that is the maximum allowed to be owned by a foreign
corporation in a particular jurisdiction), and (ii) in the case of non-corporate entities, the direct or indirect power to
manage, direct or cause the direction of the management and policies of the non-corporate entity or the power to elect at least
fifty percent (50%) of the members of the governing body of such non-corporate entity.

 

3.
Representations and Warranties by Oncotelic. Oncotelic makes the following representations and warranties, and agrees to notify
GMP in writing immediately upon any future breach of these representations and warranties:

 

	 	3.1 	Organization
    of Oncotelic. Oncotelic is and will remain a corporation organized, validly existing
    and in good standing under the laws of its jurisdiction of incorporation.

 

    	 	 	 

    	 

    

 

	 	3.2	Enforceability
    of this Agreement. The execution and delivery of this Agreement has been authorized by all requisite corporate action.
    This Agreement is and will remain a valid and binding obligation of Oncotelic, enforceable in accordance with its terms, subject
    to laws of general application relating to bankruptcy, insolvency and the relief of debtors.
	 	 	 
	 	3.3	Absence of Other
    Contractual Restrictions. Oncotelic is under no contractual or other obligation or restriction that is inconsistent with
    Oncotelic’s execution or performance of this Agreement. Oncotelic will not enter into any agreement, either written
    or oral, that would conflict with Oncotelic’s responsibilities under this Agreement.
	 	 	 
	 	3.4	Conflicts with
    Rights of Third Parties. To the best of Oncotelic’s knowledge, the provision of Services under this Agreement will
    not violate any patent, trade secret or other proprietary or intellectual property right of any third party.

  

4.
Compensation. As full consideration for the Services rendered under the SOW, GMP will automatically pay Oncotelic in accordance
with the terms in the SOW and Oncotelic shall not be required to do anything further in order to earn such payments. All payments
shall be made in US Dollars.

 

5.
Revenue Sharing. Although the parties intend and agree that this Agreement is not intended for
profit or to make or generate a profit to or for either party, in the event revenues are generated from the sale, distribution
or other assignment of rights (collectively, “Sales”) as a result of the
Purpose or Services hereunder, Oncotelic and Golden Mountain shall each be entitled to fifty percent (50%) of the net income from
such Sales. Specific accounting with respect to such revenue sharing rights of the parties shall be further negotiated and agreed
to by the parties in good faith.

 

6.
Proprietary Rights.

  

	 	6.1	Materials.
    All documentation, information, and biological, chemical and other materials controlled and furnished by Oncotelic in performance
    of the Services (collectively, the “Materials”) and all associated intellectual property rights will remain
    the exclusive property of Oncotelic, and no transfer or license of rights therein to any party is hereby granted or implied.
    It is understood by the parties that Oncotelic will use Materials only as necessary to perform the Services.
	 	 	 
	 	6.2	Deliverables.
    Discoveries, results, ideas, designs, processes, methods, techniques, compounds, formulations, products, information, data,
    documentation, reports, research, creations and other deliverables that are created or generated by Oncotelic in the performance
    of the Services are collectively referred to herein as the “Deliverables.” Oncotelic and Golden Mountain
    shall have joint ownership of the Deliverables.

 

Oncotelic
will retain full ownership rights in and to all inventions, processes, know-how, templates, programs and other materials, technologies
and intellectual property rights developed or obtained or licensed from third parties by Oncotelic and its Affiliates prior to
or independent of the performance of its obligations under this Agreement (“Oncotelic Property”), and any improvements
on enhancements thereto that are generated during the course of performing the Services and no transfer of rights or license therein
is hereby granted or implied to any party, including, but not limited to GMP.

 

    	 	 	 

    	 

    

 

7.
Confidentiality Obligations.

 

		7.1	Definitions.
                                         

 

“Agents”
means, with respect to either party, its officers, employees and agents who have a need to know to further the Purpose, and
such party’s attorneys. For avoidance of doubt, “Agents” does not include Directors of the party.

 

“Confidential
Information” includes, without limitation, all written, oral or other information and materials concerning the party
disclosing such information (the “Disclosing Party” and/or its business, clients, partners, joint ventures
and Affiliates, whether prepared by Disclosing Party, its Agents or otherwise, which shall be (or shall have been) provided or
disclosed by or on behalf of Disclosing Party to the other party (each, a “Receiving Party”) or its Agents
in the course of its discussions with Receiving Party regarding this Agreement or the Purpose (or obtained by Receiving Party
or its Agents through inspection or observation of the properties, facilities or operations of Disclosing Party), including but
not limited to activities undertaken by such party, technical, scientific, business, financial and other information, data and
materials relating to drug applications, patent applications, products and proposed products, ideas, inventions, techniques, algorithms,
programs (whether in source code or object code form), hardware, designs, schematics, drawings, trade secrets, know-how, processes,
proposed processes, formulations, manufacturing technology, contracts, clinical and pre-clinical data and dossiers, business relationships,
suppliers, customers, employees, investors, marketing strategies, distribution strategies and any and all other similar information,
data and materials(together with all communications, data, reports, analyses, compilations, studies, interpretations, records,
notes, or other materials or information prepared by Receiving Party or any of its Agents or activities undertaken by Receiving
Party or any of its Agents, that contain or otherwise reflect or are based upon, in whole or in part, any Confidential Information
of Disclosing Party or that reflect the Services or Purpose.

 

Confidential
Information includes the circumstances, facts and activities relating to, regarding and/or surrounding and arising out of this
Agreement, the Purpose and the Services.

 

Confidential
Information shall also include the existence or terms of this Agreement, the existence or substance of communications between
the parties relating to this Agreement, the Purpose and/or the Services, and any matters relating to the foregoing. As used herein,
each of Disclosing Party and Receiving Party shall include its Affiliates. In addition, for the avoidance of doubt, this Agreement
shall apply to and cover the Confidential Information of Disclosing Party’s Affiliates.

 

    	 	 	 

    	 

    

 

		7.2	Non-Disclosure.

(a)
Receiving Party shall: (a) hold and maintain in strict confidence all Confidential Information (including Confidential
Information of the Disclosing Party), and shall use the same degree of care that it uses to protect its own confidential and
proprietary information of similar nature and importance (but in no event less than reasonable care) to protect the
confidentiality and avoid the unauthorized use, disclosure, publication or dissemination of Confidential Information
(including Confidential Information of the Disclosing Party); and (b) not disclose any Confidential Information and
Confidential Information of Disclosing Party to any person other than to those Agents of Receiving Party who
(i) strictly need to know the Confidential Information or Confidential Information of the Disclosing Party in
furtherance of, or to accomplish the Purpose; (ii) shall be advised by Receiving Party of the terms of this Agreement;
and (iii) are bound by restrictions regarding disclosure and use of such Confidential Information comparable to and no
less restrictive than those set forth herein. Receiving Party shall be responsible for the breach of any of the terms hereof
by any of its Agents.

 

Notwithstanding
the foregoing, Oncotelic acknowledges that GMP must have the right to disclose Confidential Information to government officials
or agencies of The People’s Republic of China and Oncotelic hereby agrees that GMP has the right hereunder to disclose Confidential
Information to such government officials or agencies of The People’s Republic of China as GMP, in its sole discretion, deems
is in the parties’ best interest or necessary to disclose in furtherance of or to accomplish the Purpose.

 

Except
as otherwise permitted in this Section 7.2, neither party shall directly or indirectly by any means or manner whatsoever publicize,
disclose, urge, encourage, cooperate in, cause or permit the disclosure to any person or entity other than an Agent of such party
who strictly needs to know such information in furtherance of or to accomplish the Purpose: (A) the circumstances, facts or activities
relating to, regarding and/or surrounding or arising out of this Agreement, the Services or the Purpose, or (B) the existence
or terms of this Agreement, the Services or the Purpose, the existence or substance of discussions between the parties relating
to this Agreement, the Services or the Purpose, and any matters relating to the foregoing. Except as otherwise permitted in this
Section 7 and as reserved to GMP, in response to any inquiry regarding a party’s knowledge of the Purpose or the Services,
such party shall state only that it has no comment.

 

(b)
Receiving Party and its Agents shall not (a) copy, duplicate, extract or otherwise reproduce by any means, all or any part of
the Confidential Information or Confidential Information of the Disclosing Party (except as necessary to accomplish the
Purpose), nor (b) decompile, disassemble, reverse engineer, or determine the physical or chemical properties of any
Confidential Information of Disclosing Party or any portion thereof, or determine or attempt to determine any source code,
algorithms, methods or techniques embodied in any Confidential Information of Disclosing Party or any portion thereof. Upon
termination of this Agreement (or upon request by either party hereto), Receiving Party shall (c) cease using the
Confidential Information or Confidential Information of Disclosing Party for any purpose (including the Purpose) and
(d) return to Disclosing Party (or destroy at Disclosing Party’s sole election) all materials in any form
containing or reflecting any Confidential Information of Disclosing Party in the possession or control of Receiving Party or
any of its Agents. In the case of Confidential Information stored in electronic form, the Receiving Party shall ensure that
such Confidential Information is permanently erased. Notwithstanding the foregoing, the Receiving Party may retain one copy
of Confidential Information to the extent required to be maintained pursuant to applicable law or to satisfy the Receiving
Party’s record retention obligations. Furthermore, Confidential Information that is electronically stored may be
retained on back-up servers if it is not intentionally made available to any person, and is deleted in accordance with the
Receiving Party’s normal policies with respect to the retention of electronic records. Notwithstanding the return or
destruction of any Confidential Information, or documents or material containing or reflecting any Confidential Information,
the parties will continue to be bound by their obligations of confidentiality and other obligations hereunder in accordance
with this Section 7.

 

    	 	 	 

    	 

    

 

7.3. In
the event that Receiving Party is requested or required (by subpoena, civil investigative demand or other process) to
disclose any Confidential Information of Disclosing Party, Receiving Party shall provide Disclosing Party with prompt written
notice of any such request or requirement. Should Receiving Party be compelled by such legal process to disclose Confidential
Information, Receiving Party may disclose only that portion of the Confidential Information which it is compelled to
disclose. Receiving Party shall cooperate with Disclosing Party, at the Disclosing Party’s sole cost and expense, in
any attempt that Disclosing Party may make to obtain an appropriate protective order or other reliable assurance that
confidential treatment shall be accorded to the Confidential Information.

 

8.
Exclusive Dealing.

 

8.1.
GMP shall have the exclusive right to disclose, negotiate with and discuss commercialization of the Deliverables, or any drug
or therapeutic arising out of the Deliverables, with the government of The People’s Republic of China, or with any
other interested third parties.

 

8.2. Neither
party shall have the right to offer for sell, sell, distribute, offer to distribute, manufacture, or offer to manufacture any
Deliverable or any drug or therapeutic arising out of the Deliverables, with any third party, or to assist any third party to
do any of the foregoing, without mutual consent and participation of the other party.

 

9.
Expiration and Termination.

 

	 	9.1 	Expiration. This
    Agreement will expire on the later of (a) one (1) year from the Effective Date or (b) the completion of all Services
    under the last SOW executed by the parties prior to the first anniversary of the Effective Date. Unless earlier terminated
    in accordance with Section 8.2, below, this Agreement will renew automatically for successive one (1) year terms commencing
    upon the expiration of the initial term.
	 	 	 
	 	9.2 	Effect of Termination
    or Expiration. Upon termination or expiration of this Agreement, neither Oncotelic nor GMP will have any further obligations
    under this Agreement, except that:
	 	 	 
	 	 	(a) Each party will
    promptly return to the other party all copies of all Confidential Information of the other party in such party’s possession
    or control that relate to this Agreement or, if this entire Agreement has not expired or been terminated, under any Work Order
    which has been terminated or has expired; and
	 	 	 
	 	 	(b) the terms, conditions
    and obligations under Sections 5, 6, 7, 8 and 10 will survive any such termination or expiration of this Agreement, and
    the terms, conditions and obligations under Section 7 will survive (and continue in full force and effect) in perpetuity.

 

    	 	 	 

    	 

    

 

10.
Miscellaneous.

 

	 	10.1
    	Independent Contractor.
    All Services will be rendered by Oncotelic as an independent contractor and this Agreement does not create an employment relationship,
    partnership or joint venture between GMP and Oncotelic. Oncotelic will not in any way represent itself to be a partner or
    joint venturer of or with GMP.
	 	 	 
	 	10.2 	Use of Names.
    Neither party has the right to use the other party’s name or the names of the other party’s employees in any advertising,
    sales promotional material or press release without prior written permission of the other party, except to the extent such
    disclosure is reasonably necessary for (a) regulatory filings, including filings with the U.S. Securities Exchange Commission
    or FDA, (b) prosecuting or defending litigation, and (c) complying with (i) applicable governmental regulations
    and legal requirements and (ii) the requirements of any stock exchange or stock listing entity.
	 	 	 
	 	10.3 	Notices.
    All notices required or permitted under this Agreement must be in writing and must be given by addressing the notice to the
    address for the recipient set forth in this Agreement or at such other address as the recipient may specify in writing under
    this procedure. Notices will be deemed to have been given (a) three (3) business days after deposit in the mail
    with proper postage for first class registered or certified mail prepaid, or (b) in the case of domestic deliveries,
    one (1) business day, and in the case of international deliveries, two (2) business days, after sending by nationally
    recognized overnight delivery service.
	 	 	 
	 	10.4 	Assignment.
    This Agreement may not be assigned or transferred, in whole or in part, by Oncotelic. Notwithstanding the foregoing, GMP may
    transfer or assign this Agreement, in whole or in part to an Affiliate, upon the consent of Oncotelic, which shall not be
    unreasonably withheld, conditioned or delayed; and provided that all obligations of GMP are assumed by the assignee.
	 	 	 
	 	10.5 	Entire Agreement.
    This Agreement constitutes the entire agreement of the parties with regard to its subject matter, and supersedes all previous
    written or oral representations, agreements and understandings between GMP and Oncotelic with regard to such subject matter.
    In the event of any conflict, discrepancy, or inconsistency between this Agreement and the SOW, the terms of the SOW will
    control as to matters of medicine and science and the Agreement will control for all other matters, unless the SOW explicitly
    states that its terms are meant to supersede specific terms of this Agreement.

 

    	 

    	 

    

 

	 	10.6 	No Modification.
    This Agreement and the SOW may be changed only by a writing signed by an authorized representative of each party.
	 	 	 
	 	10.7 	Severability;
    Reformation. Any of the provisions of this Agreement which are determined to be invalid or unenforceable in any jurisdiction
    will be ineffective to the extent of such invalidity or unenforceability in such jurisdiction, without rendering invalid or
    unenforceable the remaining provisions hereof and without affecting the validity or enforceability of any of the other terms
    of this Agreement in such jurisdiction, or the terms of this Agreement in any other jurisdiction. The parties will substitute
    for the invalid or unenforceable provision a valid and enforceable provision that conforms as nearly as possible with the
    original intent of the parties.
	 	 	 
	 	10.8 	Governing Law.
    This Agreement will be construed and interpreted and its performance governed by the laws of California, without regard to
    any choice of law principle that would dictate the application of the law of another jurisdiction.
	 	 	 
	 	10.9 	Waiver. No
    waiver of any term, provision or condition of this Agreement in any one or more instances will be deemed to be or construed
    as a further or continuing waiver of any other term, provision or condition of this Agreement. Any such waiver must be evidenced
    by an instrument in writing executed by an officer authorized to execute waivers.
	 	 	 
	 	10.10 	Counterparts;
    Facsimile. This Agreement may be executed in any number of counterparts, each of which will be deemed an original and
    all of which together will constitute one and the same instrument. This Agreement may be executed by facsimile or other form
    of electronic transmission.

 

    	 	 	 

    	 

    

 

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

 

	GOLDEN MOUNTAIN PARTNERS, LLC	 	ONCOTELIC, INC.
	 	 	 
	By	/s/ Clinton Teng	 	By	/s/ Vuong Trieu
	Print Name	Clinton Teng	 	Print Name	Vuong Trieu
	Title	Owner’s Representative	 	Title	CEO

 

[research
and services agreement]

 

    	 	 	 

    	 

    

 

statement
of work, deliverables and payments no. 1

 

THIS
STATEMENT OF WORK, DELIVERABLES AND PAYMENT NO. 1 (the “SOW”) is by and between Golden Mountain LLC (“GMP”)
and Oncotelic, Inc. (the “Oncotelic”), and upon execution will be incorporated into the Research and Services
Agreement between GMP and Oncotelic dated February 3, 2020 (the “Agreement”). Capitalized terms in this Work
Order will have the same meaning as set forth in the Agreement.

 

1.
Services. Oncotelic will perform the following:

 

	 	1)	AI/Supercomputing
    team:

 

	 	a.	Deliverable:
    build AI model around #infection, #mortality,#cure to define the best predictive model of disease progression. This
    will allow us to dissect whether there are two strains or one strain of the virus.
	 	b.	Relate
    the spread with transportation– air and train- to see which transportation mode is being use for the spread of the virus
	 	c.	Use
    the model to predict choke points to stop the virus spread

 

	 	2)	Therapeutic
    Antisense team:

 

	 	a.	Deliverable:
    Define the Antisense drug sequence with the best chance of inhibiting the virus. This will be done by accomplish
    by:

 

	 	i.	 	comparing
    sequence of SARS, MERS, and Wuhan to define the optimal target sequence
	 	ii.	 	Use
    our technology platform to define drug sequence with the best drug properties ie. kinetic, Thermal melting point, no CG island,
    safety.

 

	 	3)	Preclinical/Clinical
    team:

 

	 	a.	Deliverable:
    Define the optimal evaluation pathway for going into human as package to deliver to FDA. Laying out:

 

	 	i.	 	Tests
    to be done once the sequence define and manufacturing started  
	 	ii.	 	In
    vitro and animal tests to be done  
	 	iii.	 	Labs/collaborators/
    KOLs to utilize for testing
	 	iv.	 	Budget/Timeline
	 	v.	 	Supporting
    safety data to allow for short safety testing

 

	 	4)	Drug
    Product team:

 

	 	a.	Deliverable:
    Define the best manufacturing route for the drug

 

	 	i.	 	Synthetic
    pathway
	 	ii.	 	Recommend
    CDMO to use
	 	iii.	 	Budget/Timeline

 

    	 	 	 

    	 

    

 

2.
Deliverables

 

		●	An
                                         AI model to accurately determine if there is a more severe strain of the coronavirus
                                         which will have a different gene sequencing to the published strain. Thus, the more severe
                                         strain will require Oncotelic to create an antisense drug substance which is completely
                                         different from the one to inhibit the published strain.

		●	Creation
                                         of the formula for the coronavirus Wuhan antisense drug and gene sequencing for the antisense
                                         drug substance, including synthetic pathway and protocols for manufacturing, to inhibit
                                         the published strain of coronavirus. Initiate CDMO identification and collaboration to
                                         put in place manufacturing procedure for manufacturing of the drug substance. Also to
                                         provide onsite support to CDMO.

		●	Creation
                                         of a dossier supporting a proposed safety evaluation pathway of the drug substance for
                                         Chinese FDA to allow drug substance to enter clinical trials in China expeditiously.
                                         file necessary documentation and create optimal evaluation pathway to CFDA to satisfy
                                         clinical requirements and to prepare/ready the drug substance for clinical trials in
                                         China.

3.
Completion. The Services will be completed

 

		●	Agreement
                                         Execution: February 3, 2020

		●	Deliverables
                                         Delivered by Oncotelic: February 28, 2020 (4 weeks after Agreement execution date)

5.       Compensation.
The compensation due for the Services rendered pursuant to this SOW shall not exceed Three Hundred Thousand Dollars ($300,000
USD) and will be paid according to the percentage per milestone, as follows:

 

		●	On
                                         or before the date of full execution of the Agreement: $150,000 USD

		●	1
                                         week prior to delivery of Deliverables by Oncotelic: $100,000 USD

		●	Delivery
                                         of Deliverables by Oncotelic: $50,000 USD

 

WORK
ORDER AGREED TO AND ACCEPTED BY:

 

	GOLDEN
    MOUNTAIN PARTNERS, LLC	 	ONCOTELIC,
    INC.
	 	 	 
	By	/s/
    Clinton Teng	 	By	/s/
    Vuong Trieu
	Print
    Name	Clinton
    Teng	 	Print
    Name	Vuong
    Trieu
	Title	Owner’s
    Representative	 	Title	CEOExhibit 10.2

 

SUPPLEMENT
TO RESEARCH AND SERVICES AGREEMENT

 

This
SUPPLEMENT is made and entered into as of this 23rd day of March 2020 (this “Agreement”), by and among ONCOTELIC,
INC., a Delaware corporation (“Oncotelic”), MATEON THERAPEUTICS, INC., a Delaware corporation (“Mateon,”
and together with Oncotelic, the “Mateon Entities”), on the one hand, and GOLDEN MOUNTAIN PARTNERS, LLC, a
California limited liability company (“GMP”), on the other hand, and is intended to supplement and, where applicable,
amend and modify that certain Research and Services Agreement dated February 3, 2020 (the “Original Agreement”)
entered into by Oncotelic and GMP. Capitalized terms used in this Agreement without definition shall have the meanings given those
terms in the Original Agreement.

 

BACKGROUND

 

Pursuant
to the terms of the Original Agreement, GMP and Oncotelic agreed that Oncotelic would pursue certain research activities to develop
a new proprietary antisense compound (as further defined below, the “Product”) directed to the treatment of
coronavirus infectious disease-19 (“COVID-19”) in humans (the “Research”).

 

Also
pursuant to the terms of the Original Agreement, GMP agreed to provide financial support for the Research.

 

In
consideration for the financial support for the Research provided by GMP, pursuant to the terms of the Original Agreement, GMP
is entitled to obtain certain exclusive rights to the use of the Product in the COVID Field, and an economic interest in the use
of the Product in the COVID Field. The purpose of this Agreement is to elaborate upon those rights.

 

Without
limiting the foregoing, this Agreement also sets forth certain rights and obligations of the parties to use the Product, elaborating
upon GMP and Oncotelic’s rights and obligations pursuant to the Original Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing, and of other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

 

1. Definitions.
Capitalized terms used in this Agreement and not otherwise defined or defined in the Original Agreement shall have the meanings
given those terms in this Section 1.

 

“CA4P”
means Oncotelic’s proprietary Combretastatin A-4 phosphate. Combretastatin
A-4 phosphate is a microtubule destabilizing drug, a type of vascular-targeting agent, a drug designed to damage the vasculature
of cancer tumors causing central necrosis. It is a derivative of combretastatin. Combretastatin A-4 phosphate is a prodrug.

 

    	 	1	 

    	 

    

 

“China
Territory” means the Greater Area of the People’s Republic of China, including (a) Mainland China, (b) the Hong
Kong Special Administrative Region, (c) the Macau Special Administrative Region, and (d) Taiwan.

 

“Effective
Date” means March 23rd, 2020.

 

“COVID
Field” means all human uses of the Product for the treatment or diagnosis of COVID-19 and other diseases or health conditions
caused by all coronaviruses (e.g., SARS-CoV-1 and SARS-CoV-2), whenever identified.

 

“Joint
Venture Transaction” means the establishment of a joint venture company to be owned 50% by Oncotelic and 50% by GMP
(or its designee), the principal activities of which shall be to research, develop, bring to market and commercialize: (i) the
Products in the COVID Field on a global basis, (ii) the Products in the OT101 Oncology Field in the Licensed Territory, (iii)
OXi4503 in the Licensed Territory; and (iv) CA4P in the Licensed Territory, as further described in Section 6.

 

“Licensed
Territory” means the China Territory, South Korea, Vietnam, Japan, Singapore, Malaysia, Thailand, the Philippines, and
the Middle East Countries.

 

“Middle
East Countries” means Bahrain, Cyprus, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Northern Cyprus, Oman, State
of Palestine, Qatar, Saudi Arabia, Syria, Turkey, United Arab Emirates and Yemen.

 

“OT-101”
means Oncotelic’s proprietary single-stranded phosphorothioate antisense oligooxynucleotide (18-mer) targeting the human
TGF-Beta2 messenger RNA, referred to by Oncotelic as Trabedersen.

 

“OT-101
Oncology Field” means the diagnosis, treatment or protection from the following cancers in humans: pancreatic, brain,
melanoma, pediatric acute myeloid leukemia, pediatric melanoma and all other uses.

 

“OXi4503”
means Oncotelic’s proprietary Combretastatin A1 diphosphate. Combretastatin
A1 diphosphate is a diphosphate prodrug of the stilbenoid combretastatin A1. Upon administration, combretastatin A1 diphosphate
(CA1P) is dephosphorylated to the active metabolite combretastatin A1 (CA1), which promotes rapid microtubule depolymerization;
endothelial cell mitotic arrest and apoptosis, destruction of the tumor vasculature, disruption of tumor blood flow and tumor
cell necrosis.

 

“2020
Patent Application” means patent application (a) 62991174, entitled “Treatment of zoonoses - Antisenses”
filed by Oncotelic on or about March 18th, 2020, (b) 62991178, entitled “Treatment of zoonoses - TGF beta inhibitors”
filed by Oncotelic on or about March 18th, 2020, and (c) 62992825, entitled “Treatment of zoonoses - TGF beta
inhibitors” filed by Oncotelic on or about March 20th, 2020, and all divisional, continuation, continued prosecution
applications, re-issue, and reexamination applications related thereto, each patent that issues or reissues from any of these
patent applications; and all foreign counterparts to any of the foregoing.

 

    	 	2	 

    	 

    

 

“Product”
means (a) OT-101 as well as any other antisense drug candidates active against COVID-19, the use, manufacture or sale of which
would, without a license or other similar rights thereto, infringe a claim of a patent issued from the 2020 Patent Application,
and (b) all other compounds developed directly by Oncotelic or its affiliates or third parties through the Research.

 

“Testing
Results” means the confirmatory lab testing results for experiments confirming the applicability and potential use of
the Product for the treatment of COVID-19.

 

2. Product
License.

 

(i) Effective
from and after the Effective Date, the Mateon Entities grant to GMP an exclusive, sublicensable (through multiple tiers), assignable
license under all patents (including the 2020 Patent Application) and know-how owned and controlled by the Mateon Entities and
their affiliates to use, make, have made, sell, have sold and import Products in the COVID Field on a global basis. It is expressly
understood by the Mateon Entities that this license may or may not be royalty bearing, and GMP has the full right, in its sole
discretion, to donate the foregoing license rights to the public domain solely in Mainland China.

 

(ii) The
parties acknowledge that the Product and the rights related to the Product, including the 2020 Patent Application, allocated by
the parties pursuant to this Agreement constitute Deliverables under the Original Agreement.

 

3. Additional
Research Funding. Oncotelic shall deliver the Testing Results to GMP on or before April 3, 2020. Subject to the confirmation
by GMP, in its reasonable determination, of the Testing Results, GMP shall pay to Oncotelic the following amounts on the following
dates:

 

(i) $450,000
US, within three days following the delivery of the Testing Results and GMP’s confirmation of the Testing Results; and

 

(ii) $450,000
US, on or before May 1, 2020.

 

For
clarity, if the Testing Results are not delivered by Oncotelic to GMP on or before April 3, 2020, or the Testing Results are not
confirmed by GMP, then neither payment set forth in this Section 3 is due or owed to Oncotelic.

 

4. Coordination
of Additional Development Activities. From and after the Effective Date, GMP shall be entitled to use its governmental relations
and local expertise in Mainland China to assist with coordinating the research, development and commercialization of Products
in the COVID Field.

 

    	 	3	 

    	 

    

 

5. Product
Revenue. From and after the Effective Date, Oncotelic shall pay to GMP one-half of all Product Revenue (as defined below),
on the terms and subject to the provisions of this Agreement.

 

(i) “Product
Revenue” means Product Net Sales and Licensing Revenue, in each case relating to the COVID Field.

 

(ii) “Product
Net Sales” means the total dollar amount invoiced on sales of Products by the Mateon Entities and their affiliates and
sublicensees less deductions accrued in accordance with generally accepted accounting principles any charges where applicable
and separately listed for (i) sales taxes or use taxes (except for value-added taxes capable of reimbursement and income taxes
imposed on the sales of Products in foreign countries), tariffs, duties or customs (all separately stated on the invoice), (ii)
prepaid outbound shipping and insurance charges, (iii) deductions for allowances given for returned or defective goods that do
not exceed the original invoice amount, (iv) trade discounts given, not to exceed the original invoice amount, (v) charge back
payments and rebates given for Products to (a) managed healthcare organizations, (b) federal, state, provincial and/or local governments
or other governmental agencies, and (c) purchasers and reimbursers. Products will be considered sold when paid for; provided,
however, that with respect to Products transferred by the Mateon Entities to their licensees or affiliates in the circumstances
described in item (x) in the immediately following sentence, any such Products will be considered sold when they are transferred
to any such licensee or affiliate. For the purpose of calculating Product Net Sales, transfers by the Mateon Entities to its licensee
or affiliate of Products under this Agreement for (x) end use (but not resale) by the licensee or Affiliate shall be treated as
sales by the Mateon Entities at the average amount invoiced by the Mateon Entities to third parties during such Net Sales calculation
period or (y) resale by a licensee or an affiliate shall be treated as sales at the average amount invoiced by such licensee or
affiliate to third parties during such Product Net Sales calculation period, in each case subject in all respects to the deductions
under this Section 5(ii). Notwithstanding the foregoing, a sale of a Product to a distributor, which is not a licensee
or affiliate, in an arm’s-length transaction, shall be treated as a sale if the Mateon Entities receive no further compensation
for that Product from any subsequent purchaser of that Product.

 

(iii) “Licensing
Revenue” means any and all consideration under or otherwise payable in connection with a sublicense, covenant not to
sue, or grant of other or similar rights to Products received by the Mateon Entities or their affiliates, including license issue
fees, lump sum payments, milestone payments, maintenance fees, profit sharing, joint marketing fee, equity or other payments of
any kind whatsoever, irrespective of whether such consideration is received in the form of cash, offsets, barter, credit, stock,
warrants, release from debt, goods or services, licenses back, a payment for equity that exceeds the pre-transaction fair market
value by more than 125% of the equity, equity exchanges, or any other form whatsoever, excluding royalties paid to GMP based on
Product Net Sales.

 

    	 	4	 

    	 

    

 

(iv) Within
45 days after the end of each calendar quarter during the Term (i.e., March 31, June 30, September 30 or December 31), Oncoletic
shall pay to GMP 50% of Product Revenues, in immediately available funds to an account designated by GMP.

 

(vi) Oncoletic
may not receive as License Revenue anything of value in lieu of cash payments without the express prior written consent of GMP,
such consent not to be unreasonably withheld, conditioned or delayed.

 

(vii) The
Mateon Entities shall keep books and records sufficiently to verify the accuracy and completeness of their and their affiliates’
and licensees’ accounting, including without limitation, inventory, purchase and invoice records, manufacturing records,
sales analysis, general ledgers, financial statements, and tax returns relating to the Products. The Mateon Entities shall preserve
these books and records for at least six (6) years after they are created or as required by federal law, both during and after
the term of this Agreement.

 

(viii) The
Mateon Entities shall take all steps necessary so that GMP may, within thirty (30) days of its written request, audit, reasonably
review and copy all of the Mateon Entities’ books and records at a single United States location to verify the accuracy
of the Mateon Entities’ and their affiliates and licensees’ accounting. The review may be performed by any authorized
employees of GMP as well as by any attorneys or accountants designated by GMP upon reasonable notice and during regular business
hours. If a deficiency with regard to any payment is determined, Oncoletic shall pay the deficiency along with applicable interest
within thirty (30) days of receiving notice. If a payment deficiency for a calendar year exceeds five percent (5%) of amounts
paid for that year, then Oncoletic shall pay GMP’s out-of-pocket expenses incurred with respect to the review.

 

6. Formation
and Contribution to Joint Venture. During the Exclusivity Period, the parties agree to facilitate due diligence by one another
and subject to GMP’s satisfactory due diligence review, the parties intend to negotiate and, if mutually acceptable, enter
into written definitive agreements for the Joint Venture Transaction. Pursuant to the Joint Venture Transaction: the Mateon Entities
intend to license or assign intellectual property rights, including the 2020 Patent Application and any other intellectual property
rights owned or controlled by the Mateon Entities relating to the Product, OXi4503 and CA4P, to the joint venture company, as
well as providing management services and other expertise to the joint venture company; GMP intends that it (or its designee,
as the case may be) shall provide funding to the joint venture company to support its development and commercial activities in
the joint venture company’s relevant territories; in each case, on terms to be agreed by the parties; and GMP shall be entitled
to use its governmental relations and local expertise in Greater China to assist with coordinating the research, development and
commercialization of (i) the Products in the COVID Field, (ii) the Products in the OT101 Oncology Field, (iii) OXi4503; and (iv)
CA4P, in each case in Greater China.

 

    	 	5	 

    	 

    

 

7. Exclusive
Negotiating Period. Commencing immediately on the date hereof and continuing until the earliest to occur of (y) 11:59 p.m.,
Eastern Daylight Time, on the date that is 90 calendar days after the Effective Date, and (z) the date of the execution of a written
definitive agreement for the Joint Venture Transaction or any other similar transaction between the parties relating to the Products
(the “Exclusivity Period”), the Mateon Entities shall, and shall instruct and cause their respective officers,
directors, employees, agents, advisors, investment bankers, attorneys, accountants and other representatives to, (a) cease any
and all discussions or negotiations with any third party conducted on or before the date hereof with respect to any Competing
Transaction (as defined below), and (b) not, directly or indirectly, (i) solicit, initiate, seek or knowingly encourage, facilitate
or induce the making, submission or announcement of any Competing Transaction, (ii) disclose to any person or entity any non-public
information relating to the Product in connection with the making, submission, or announcement of, or the intent to encourage
or assist, any Competing Transaction, (iii) agree to, accept, recommend or endorse (or publicly propose or announce any intention
or desire to agree to, accept, recommend or endorse) any Competing Transaction, or (iv) authorize, propose or enter into any confidentiality
agreement, term sheet, letter of intent, purchase agreement or other agreement, arrangement or understanding relating to any Competing
Transaction; provided, that it shall not be a violation of any provision of this Agreement for the Mateon Entities to communicate
with a third party that it is ceasing, terminating and/or will not enter into discussions regarding a Competing Transaction because
of its obligations under this Agreement, except that the Mateon Parties shall not provide the name of the other party without
the other party’s consent; provided, further, that, notwithstanding the foregoing, Oncotelic may publicly disclose
any information that it reasonably determines, after having received the advice of legal counsel, it is required to disclose pursuant
to applicable securities laws or listing standards. For purpose of this Agreement, the term “Competing Transaction”
means with respect to the Mateon Entities (other than the Joint Venture Transaction) any transaction or business combination of
any nature, including without limitation a reverse merger transaction; or any other transaction, which would prevent, preclude,
limit, restrict or otherwise adversely impact the negotiation or consummation of, or materially delay, the consummation of the
Joint Venture Transaction.

 

8. Compliance
with Applicable Laws. The parties shall comply with all local, state, federal, and international laws and regulations
that are applicable to their activities under this Agreement and the development, manufacture, use, and sale of Products,
including:

 

(i) The
parties acknowledge that they are subject to and agree to abide by United States laws and regulations (including the Export Administration
Act of 1979 and Arms Export Control Act) controlling the export of technical data, computer software, laboratory prototypes, biological
material, and other commodities. The transfer of those items may require a license from an agency of the United States Government
or written assurances by the parties that it will not export items to certain foreign countries or persons without prior approval
by that agency.

 

    	 	6	 

    	 

    

 

(ii) Each
party shall obtain all necessary approvals from the United States Food & Drug Administration, Environmental Protection Agency,
Department of Agriculture and any similar governmental authorities of foreign jurisdictions in which such party intends to make,
use, sell or otherwise exploit Products.

 

9. Assignment.
This Agreement may not be transferred or assigned by the Mateon Entities (including by operation of law, in connection with a
merger, share exchange or other change of control transaction) except with the prior written consent of GMP. GMP may assign
any of its rights, interests or obligations hereunder, provided however that no such permitted assignment shall reduce or
otherwise affect GMP’s liabilities or obligations hereunder. Any attempted assignment in contravention of this Section
9 is void and constitutes a material breach of this Agreement.

 

10. Confirmation
of Relationship between Oncoletic and Mateon; Representations and Warranties. Oncoletic is a wholly owned subsidiary of Mateon.
The Mateon Entities own or control the rights to the Products. The Mateon Entities have the right to grant all rights and licenses
they purport to grant to GMP under this Agreement. The Mateon Entities have not granted any right or license to any third party
that would conflict or interfere with any of the rights or licenses granted to GMP hereunder.

 

11. Term
and Termination. The term of this Agreement shall commence on the Effective Date and shall continue until the later of (a)
the 50th anniversary of the Effective Date and (b) the expiration of the last patent subject to the license set forth
in Section 2.1 (the “Term”). The Mateon Entities, on one hand, or GMP on the other hand, may terminate
this Agreement upon the material breach of this Agreement by the other such party(ies), provided, that the allegedly breaching
party is provided with written notice of the breach and the opportunity to cure such breach for 30 days following the delivery
of such written notice and the breach persists at the conclusion of this cure period. GMP may terminate this Agreement upon 30
days prior written notice. Termination or expiration of this Agreement for any reason shall be without prejudice to any rights
that shall have accrued to the benefit of any party prior to such termination or expiration and any and all damages arising from
any breach hereunder.

 

12. Entire
Agreement; Agreement Controlling. This Agreement and the Original Agreement constitute the full understanding between the
parties with reference to its subject matter, and no statements or agreements by the parties, whether oral or in writing, may
modify the terms of this Agreement. Neither party may claim any amendment, modification, or release from any provisions of this
Agreement, unless the mutual agreement is in writing and signed by both parties. If there is a conflict between this Agreement
and the Original Agreement, then this Agreement shall control.

 

13. Further
Assurances. Following the Effective Date, each of the parties shall, and shall cause their respective affiliates to execute
and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably
required to carry out the provisions hereof and give effect to the transactions contemplated by the Agreement and the Original
Agreement.

 

14. Public
Announcements. No party shall issue or make any press release, public announcement or other public statement with respect
to this Agreement or the transactions contemplated herein without the prior consent of the other parties, except to the extent
required by applicable law or by the applicable rules or requirements of any national securities exchange, market or automated
quotation system; provided, that the party proposing to issue any press release, public announcement or other public statement
in compliance with any such disclosure obligations shall consult in good faith with each other party before doing so.

 

15.
 General Provisions. Sections 7, 10.2, 10.3, 10.6, 10.7, 10.8, 10.9 and 10.10
of the Original Agreement, are incorporated into this Agreement by reference, as if fully set forth herein.

 

[signatures
on following page]

 

    	 	7	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be entered into, and delivered by their duly authorized representatives
to be effective from and after the Effective Date.

 

 

	ONCOTELIC,
    INC.,	 	GOLDEN
    MOUNTAIN PARTNERS, LLC,
	a
    Delaware corporation	 	a
    California limited liability company
	 	 	 	 	 
	By:	/s/
    Vuong Trieu	 	By:
    	/s/
    Clinton Teng                    
	Name:	Vuong
Trieu	 	Name:	Clinton
Teng
	Title:	CEO	 	Title:	Owner’s
Representative
	 	 	 	 	 
	MATEON
    THERAPEUTICS, INC.	 	 	 
	a
    Delaware corporation	 	 	 
	 	 	 	 	 
	By:	/s/
    Vuong Trieu                      	 	 	 
	Name:	Vuong
Trieu	 	 	 
	Title:	CEO	 	 	 

 

    	 	8

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