Document:

home_Current folio_10K_FY20_Exhibit 10.38

		

			Exhibit 10.38

		

		

			 

		

		

			 

		

		
			AT HOME GROUP INC. 2016 Equity Incentive Plan
		

		
			PERFORMANCE SHARE UNIT - Notice of Grant 
		

		
			 
		

		
			At Home Group Inc. (the “Company”), a Delaware corporation, hereby grants to the Grantee set forth below (the “Grantee”) Performance Share Units (the “Performance Share Units”), pursuant to the terms and conditions of this Notice of Grant (the “Notice”), the Performance Share Unit Award Agreement (reference number 20[__]1-[__]2) attached hereto as Exhibit A (the “Award Agreement”), and the At Home Group Inc. 2016 Equity Incentive Plan (the “Plan”).    Capitalized terms used but not defined herein shall have the meaning attributed to such terms in the Award Agreement or, if not defined therein, in the Plan, unless the context requires otherwise.  Each Performance Share Unit represents the right to receive one (1) Share at the time and in the manner set forth in Section 4 of the Award Agreement.
		

		
			 
		

		
			Date of Grant:[●]
		

		
			 
		

		
			Name of Grantee:[●]
		

		
			 
		

		
			Target Number of 
		

		
			Performance Share Units:[●]
		

		
			 
		

		
			Maximum Number of 
		

		
			Performance Share Units:[●]
		

		
			 
		

		
			Vesting:The Performance Share Units shall vest pursuant to the terms and conditions set forth in Section 3 of the Award Agreement.
		

		
			 
		

		
			The Performance Share Units shall be subject to the execution and return of this Notice by the Grantee to the Company within 30 days of the date hereof (including by utilizing an electronic signature and/or web-based approval and notice process or any other process as may be authorized by the Company). By executing this Notice, the Grantee acknowledges that his or her agreement to the covenants set forth in Section 6 of the Award Agreement is a material inducement to the Company in granting this Award to the Grantee.  
		

		
			 
		

		
			This Notice may be executed by facsimile or electronic means (including, without limitation, PDF) and in one or more counterparts, each of which shall be considered an original instrument, but all of which together shall constitute one and the same agreement, and shall become binding when one or more counterparts have been signed by each of the parties hereto and delivered to the other party hereto.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		

		
			1 To be updated as necessary to be consistent with the referenced award agreement to which the notice relates.
		

		
			2 To be updated as necessary to be consistent with the referenced award agreement to which the notice relates.
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			IN WITNESS WHEREOF, the parties hereto have executed this Notice of Grant as of the Date of Grant set forth above. 
		

		
			 
		

		
			AT HOME GROUP INC.
		

		
			 
		

		
			 
		

		
			By:
		

		
			Name:    Mary Jane Broussard
		

		
			Title:  General Counsel and Corporate Secretary
		

		
			 
		

		
			 
		

		
			 
		

		
			GRANTEE
		

		
			 
		

		
			 
		

		
			
		

		
			Name: [●]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Notice of Performance Share Unit Grant for At Home Group Inc. 2016 Equity Incentive Plan]

		

		

			 

		

		

		
			Exhibit A
		

		
			 
		

		
			AT HOME GROUP INC.
		

		
			2016 EQUITY INCENTIVE PLAN
		

		
			PERFORMANCE SHARE UNIT
		

		
			Award Agreement
		

		
			 
		

		
			Reference Number: 20[__]3-[__]4
		

		
			 
		

		
			THIS PERFORMANCE SHARE UNIT AWARD AGREEMENT (the “Award Agreement”) is entered into by and among At Home Group Inc. (the “Company”) and the individual set forth on the signature page to that certain Notice of Grant (the “Notice”) to which this Award Agreement is attached.  The terms and conditions of the Performance Share Units granted hereby, to the extent not controlled by the terms and conditions contained in the Plan, shall be as set forth in the Notice and this Award Agreement.  Capitalized terms used but not defined herein shall have the meaning attributed to such terms in the Notice or, if not defined therein, in the Plan, unless the context requires otherwise.
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			No Right to Continued Employee Status or Consultant Service 

		
			 
		

		
			Nothing contained in this Award Agreement shall confer upon the Grantee the right to the continuation of his or her Employee status, or, in the case of a Consultant or Director, to the continuation of his or her service arrangement, or in either case to interfere with the right of the Company or any of its Subsidiaries or other Affiliates to Terminate the Grantee.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			Term of Performance Share Units 

		
			 
		

		
			This Award Agreement shall remain in effect until the Performance Share Units have fully vested and been settled or been forfeited by the Grantee as provided in this Award Agreement. 
		

		
			 
		

			
	
			
				 3.
			Vesting of Performance Share Units.

			
	
			
				 (a)
			Subject to the remainder of this Section 3, Performance Share Units  (up to the Maximum Number of Performance Share Units) shall vest if and to the extent the performance goals set forth on Schedule 1 (the “Performance Goals”) are achieved as of January 29, 2022 (the “Performance Determination Date”) in accordance with the following table, subject to the Grantee’s not having Terminated prior to the Performance Determination Date,  with achievement between the stated ranges determined by linear interpolation:

			
					
						 

					
					
						 

				
	
					
						Percentage Achievement of Performance Goals Target Achievement

					
					
						Percentage of Target Number of  Performance Share Units

				
	
					
						Less than Threshold Percentage

					
					
						0%

				
	
					
						Threshold Percentage

					
					
						50%

				
	
					
						100% of Target Achievement

					
					
						100%

				
	
					
						Maximum Percentage or greater

					
					
						200%

				

		

		
			3 To be updated as appropriate.
		

		
			4  To be updated as appropriate.
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			If the Grantee Terminates for any reason, the portion of the Performance Share Units that has not vested as of such date shall terminate upon such Termination and be deemed to have been forfeited by the Grantee without consideration.  Notwithstanding the foregoing, if the Grantee’s Termination is due to Qualifying Retirement, then the Performance Share Units shall not terminate as a result of such Qualifying Retirement and shall remain eligible to vest in accordance with this Section 3(a) as if the Grantee had not experienced a Termination;  provided that the number of Performance Share Units (if any) that vest in accordance with this Section 3(a) following such Qualifying Retirement shall equal the product of (i) the number of Performance Share Units that would have vested in accordance with this Section 3(a) but for the Qualifying Retirement multiplied by (ii) the Retirement Factor.  
		

			
	
			
				 (b)
			Notwithstanding anything to the contrary in Section 3(a),  (i) if a Change in Control is consummated prior to the Grantee’s Termination, achievement of the Performance Goals shall be determined by the Board in its good faith discretion as of the date on which such Change in Control is consummated and the portion of the Performance Share Units that would have vested pursuant to the table set forth in Section 3(a) based on such level of achievement or, if greater, the Target Number of Performance Share Units (such greater amount, the “CIC Performance Share Units”) shall remain issued, outstanding, and eligible to vest and shall fully vest (100%) upon the Performance Determination Date, subject to the Grantee’s not having Terminated prior to the Performance Determination Date;  provided,  that,  (x) the CIC Performance Share Units, to the extent then issued and outstanding, shall become fully (100%) vested upon the Grantee’s Termination by the Company without Cause or by the Grantee’s resignation for Good Reason, in either case, on or within one year following the consummation of a Change in Control, and (y)  upon a Qualifying Retirement (other than for Good Reason), a pro rata portion of the CIC Performance Share Units based on the Retirement Factor shall vest and the remaining portion of the CIC Performance Share Units shall automatically be forfeited without consideration, and (ii) if a Change in Control is consummated following a Qualifying Retirement, a prorated portion of the CIC Performance Share Units will vest upon such Change in Control based on the Retirement Factor.  For the avoidance of doubt, any portion of the Performance Share Units other than the CIC Performance Share Units (if any) (or pro rata portion thereof, as applicable) shall be deemed to have been forfeited by the Grantee without consideration effective as of the date on which the Change in Control is consummated.

			
	
			
				 (c)
			Definitions.  For purposes of this Award Agreement, the following terms shall have the below meanings:    

			
	
			
				(i)
			“Good Reason” shall mean (a) if the Grantee is party to an employment or a severance agreement with the Company or one of the Subsidiaries in which “Good Reason” is defined, the occurrence of any circumstances defined as “Good Reason” in such employment or severance agreement, or (b) if the Grantee is not party to an employment or severance agreement with the Company or one of the Subsidiaries in which “Good Reason” is defined, (i) a material reduction in the Grantee’s annual base salary or compensation (including target annual bonus opportunity), or (ii) any material and adverse change in the Grantee’s position, title or status or any change in the Grantee’s job duties, authority or responsibilities to those of lesser status.  A termination of employment by the Grantee for Good Reason shall be effectuated by giving the Company written notice of the termination, setting forth the conduct of the Company that constitutes Good Reason, within 30 days of the first date on which the Grantee has knowledge of such conduct.  The Grantee shall further provide the Company at least 30 days following the date 

		 

		

			 

		

		

			 

		

	on which such notice is provided to cure such conduct.  Failing such cure, a termination of employment by the Grantee for Good Reason shall be effective on the day following the expiration of such cure period.

			
	
			
				(ii)
			“Qualifying Retirement” means a Retirement that occurs at least six months following the Date of Grant and within twelve (12) months prior to the Performance Determination Date.

			
	
			
				(iii)
			“Retirement” means the Grantee’s Termination by voluntary resignation for any reason after attaining a combination of 55 years of age with at least 10 years of service; provided,  that a Termination shall not constitute a Retirement if grounds for Cause existed at the time of such Termination.

			
	
			
				(iv)
			“Retirement Factor” means a fraction, the numerator of which is the number of calendar days in the Performance Period set forth on Schedule 1 prior to a Qualifying Retirement and the denominator of which is the number of calendar days in the Performance Period.

			
	
			
				 4.
			

			
	
			
			Settlement

		
			 
		

		
			Vested Performance Share Units will be settled within thirty (30) days following the Performance Determination Date,  through the Company’s delivery to the Grantee of one (1) Share in settlement of each vested Performance Share Unit;  provided,  however, that vested Performance Share Units will be settled within thirty (30) days following a Termination without Cause, resignation for Good Reason, or Qualifying Termination, in each case, that occurs within one year following a Change in Control.
		

		
			 
		

			
	
			
				 5.
			

			
	
			
			Termination of Service 

		
			 
		

		
			If the Grantee incurs a Termination for any reason, whether voluntarily or involuntarily, then the portion of the Performance Share Units  that have not previously vested (after taking into account any vesting in connection with such Termination pursuant to Section 3(b)) shall terminate as of the date of the Grantee’s Termination. If the Grantee incurs a Termination for Cause, then the Performance Share Units (whether or not vested) shall be forfeited and terminate immediately without consideration upon the effective date of such Termination for Cause. 
		

		
			 
		

			
	
			
				 6.
			

			
	
			
			Prohibited Activities 

		
			 
		

			
	
			
				 (a)
			No Sale or Transfer. Unless otherwise required by law, the Performance Share Units  shall not be (i) sold, transferred or otherwise disposed of, (ii) pledged or otherwise hypothecated or (iii) subject to attachment, execution or levy of any kind, other than by will or by the laws of descent or distribution; provided,  however, that any transferred Performance Share Units  will be subject to all of the same terms and conditions as provided in the Plan and this Award Agreement and the Grantee’s estate or beneficiary appointed in accordance with the Plan will remain liable for any withholding tax that may be imposed by any federal, state or local tax authority.

		
			 
		

			
	
			
				 (b)
			Right to Terminate Performance Share Units and Recovery. The Grantee understands and agrees that the Company has granted the Performance Share Units  to the Grantee to reward the Grantee for the Grantee’s future efforts and loyalty to the Company and its 

		 

		

			 

		

		

			 

		

	Affiliates by giving the Grantee the opportunity to participate in the potential future appreciation of the Company.  Accordingly, if (a) the Grantee materially violates the Grantee’s obligations relating to the non-disclosure or non-use of confidential or proprietary information under any Restrictive Agreement to which the Grantee is a party, or (b) the Grantee materially breaches or violates the Grantee’s obligations relating to non-disparagement under any Restrictive Agreement to which the Grantee is a party, or (c) the Grantee engages in any activity prohibited by Section 6 of this Award Agreement, or (d) the Grantee materially breaches or violates any non-solicitation obligations under any Restrictive Agreement to which the Grantee is a party, or (e) the Grantee breaches or violates any non-competition obligations under any Restrictive Agreement to which the Grantee is a party, or (f) the Grantee is convicted of a felony against the Company or any of its Affiliates, then, in addition to any other rights and remedies available to the Company, the Company shall be entitled, at its option, exercisable by written notice, to terminate the Performance Share Units (including the vested portion of the Performance Share Units) without consideration, which shall be of no further force and effect.  “Restrictive Agreement” shall mean any agreement between the Company or any Subsidiary and the Grantee that contains non-competition, non-solicitation, non-hire, non-disparagement, or confidentiality restrictions applicable to the Grantee.  

		
			 
		

			
	
			
				 (c)
			Other Remedies. The Grantee specifically acknowledges and agrees that its remedies under this Section 6 shall not prevent the Company or any Subsidiary from seeking injunctive or other equitable relief in connection with the Grantee’s breach of any Restrictive Agreement.  In the event that the provisions of this Section 6 should ever be deemed to exceed the limitation provided by applicable law, then the Grantee and the Company agree that such provisions shall be reformed to set forth the maximum limitations permitted. 

		
			 
		

			
	
			
				 7.
			

			
	
			
			No Rights as Stockholder 

		
			 
		

		
			The Grantee shall have no rights as a stockholder with respect to the Shares covered by the Performance Share Units  until the effective date of issuance of the Shares and the entry of the Grantee’s name as a shareholder of record on the books of the Company following delivery of the Shares in settlement of the Performance Share Units.  
		

		
			 
		

			
	
			
				 8.
			

			
	
			
			Taxation Upon Settlement of the Performance Share Units; Tax Withholding; Parachute Tax Provisions

		
			 
		

		
			The Grantee understands that the Grantee will recognize income, for Federal, state and local income tax purposes, as applicable, in respect of the vesting and/or settlement of the Performance Share Units. The acceptance of the Shares by the Grantee shall constitute an agreement by the Grantee to report such income in accordance with then applicable law and to cooperate with Company and its subsidiaries in establishing the amount of such income and corresponding deduction to the Company and/or its subsidiaries for its income tax purposes. 
		

		
			 
		

		
			The Grantee is responsible for all tax obligations that arise as a result of the vesting and settlement of the Performance Share Units. The Company may withhold from any amount payable to the Grantee an amount sufficient to cover any Federal, state or local withholding taxes which may become required with respect to such vesting and settlement or take any other action it deems necessary to satisfy any income or other tax withholding requirements as a result of the vesting 

		 

		

			 

		

		

			 

		

and settlement of the Performance Share Units. The Company shall have the right to require the payment of any such taxes and require that the Grantee, or the Grantee’s beneficiary, to furnish information deemed necessary by the Company to meet any tax reporting obligation as a condition to delivery of any Shares pursuant to settlement of the Performance Share Units. The Grantee may pay his or her withholding tax obligation in connection with the vesting and settlement of the Performance Share Units, by making a cash payment to the Company.  In addition, the Committee, in its sole discretion, may allow the Grantee, to pay his or her withholding tax obligation in connection with the vesting and settlement of the Performance Share Units, by (x) having withheld a portion of the Shares then issuable to him or her upon settlement of the Performance Share Units  or (z) surrendering Shares that have been held by the Grantee for at least six (6) months (or such lesser period as may be permitted by the Committee) prior to the settlement of the Performance Share Units, in each case having an aggregate Fair Market Value equal to the withholding taxes.    
		

		
			 
		

		
			In connection with the grant of the Performance Share Units, the parties wish to memorialize their agreement regarding the treatment of any potential golden parachute payments as set forth in Exhibit A attached hereto.
		

		
			 
		

			
	
			
				 9.
			

			
	
			
			Securities Laws 

			
	
			
				 (a)
			Upon the acquisition of any Shares pursuant to the settlement of the Performance Share Units, the Grantee will make such written representations, warranties, and agreements as the Committee may reasonably request in order to comply with securities laws or with this Award Agreement. Grantee hereby agrees not to offer, sell or otherwise attempt to dispose of any Shares issued to the Grantee upon settlement of the Performance Share Units in any way which would: (x) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar filing under state law or the laws of any other county) or to amend or supplement any such filing or (y) violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, or any other Federal, state or local law, or the laws of any other country. The Company reserves the right to place restrictions on any Shares the Grantee may receive as a result of the settlement of the Performance Share Units. 

		
			 
		

			
	
			
				 (b)
			Notwithstanding anything to the contrary herein, in the event that (i) the Grantee is subject to the Company’s insider trading policy, including any policy permitting officers and directors to sell Shares only during certain “window” periods, in effect from time to time (collectively, the “Policy”) or the Grantee is otherwise prohibited from selling Shares in the public market and any Shares underlying the Grantee’s Performance Share Units are scheduled to be delivered on a settlement date (the “Original Settlement Date”) that (A) does not occur during an open “window period” applicable to the Grantee or on a day on which the Grantee is permitted to sell Shares underlying any portion of the Performance Share Units that has vested pursuant to a written plan that meets the requirements of Rule 10b5-1 under the Exchange Act, as determined by the Company in accordance with the Policy, as applicable, or (B) does not occur on a date when the Grantee is otherwise permitted to sell Shares on the open market, and (ii) the Company elects not to satisfy the Grantee’s tax withholding obligations by withholding Shares from the Grantee’s distribution, then such Shares shall not be delivered on such Original Distribution Date and shall instead be delivered, as applicable, on (x) the first business day of the next occurring open “window period” applicable to the Grantee pursuant to the Policy, or (y) the next business day on which the 

		 

		

			 

		

		

			 

		

	Grantee is not otherwise prohibited from selling Shares in the open market, but in no event later than March 15th of year following the year in which the Performance Share Units vest.

		
			 
		

			
	
			
				 10.
			

			
	
			
			Modification, Amendment, and Termination of Performance Share Units 

		
			 
		

		
			This Award Agreement may not be modified, amended, terminated and no provision hereof may be waived in whole or in part except by a written agreement signed by the Company and the Grantee and no modification shall, without the consent of the Grantee, alter to the Grantee’s material detriment or materially impair any rights of the Grantee under this Award Agreement except to the extent permitted under the Plan. 
		

		
			 
		

			
	
			
				 11.
			

			
	
			
			Notices 

		
			 
		

		
			Unless otherwise provided herein, any notices or other communication given or made pursuant to the Notice, this Award Agreement or the Plan shall be in writing and shall be deemed to have been duly given (i) as of the date delivered, if personally delivered (including receipted courier service) or overnight delivery service, with confirmation of receipt; (ii) on the date the delivering party receives confirmation, if delivered by facsimile to the number indicated or by email to the address indicated or through an electronic administrative system designated by the Company; (iii) one (1) business day after being sent by reputable commercial overnight delivery service courier, with confirmation of receipt; or (iv) three (3) business days after being mailed by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below: 
		

		
			 
		

			
	
			
				 (a)
			If to the Company at the address below: 

		
			 
		

		
			At Home Group Inc. 
		

		
			1600 East Plano Parkway
		

		
			Plano, Texas 75074
		

		
			Attn: General Counsel 
		

		
			Phone: (972) 265-6227
		

		
			 
		

			
	
			
				 (b)
			If to the Grantee, at the most recent address, facsimile number or email contained in the Company’s records. 

		
			 
		

			
	
			
				 12.
			

			
	
			
			Award Agreement Subject to Plan and Applicable Law 

		
			 
		

		
			This Award Agreement is made pursuant to the Plan and shall be interpreted to comply therewith. A copy of the Plan is attached hereto. Any provision of this Award Agreement inconsistent with the Plan shall be considered void and replaced with the applicable provision of the Plan. The Plan shall control in the event there shall be any conflict between the Plan, the Notice, and this Award Agreement, and it shall control as to any matters not contained in this Award Agreement. The Committee shall have authority to make constructions of this Award Agreement, and to correct any defect or supply any omission or reconcile any inconsistency in this Award Agreement, and to prescribe rules and regulations relating to the administration of this Award and other Awards granted under the Plan. 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			 
		

		
			This Award Agreement shall be governed by the laws of the State of Delaware, without regard to the conflicts of law principles thereof, and subject to the exclusive jurisdiction of the courts therein. The Grantee hereby consents to personal jurisdiction in any action brought in any court, federal or state, within the State of Delaware having subject matter jurisdiction in the matter. 
		

		
			 
		

			
	
			
				 13.
			

			
	
			
			Section 409A

		
			 
		

		
			The Performance Share Units are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and, accordingly, to the maximum extent permitted, this Award Agreement shall be interpreted to be in compliance therewith.  Nothing contained herein shall constitute any representation or warranty by the Company regarding compliance with Section 409A of the Code.  The Company shall have no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section 409A of the Code on any Person and the Company, its Subsidiaries and Affiliates, and each of their respective employees and representatives, shall have no liability to the Grantee with respect thereto.    Notwithstanding anything in this Award Agreement to the contrary, if the Grantee is a “specified employee” for purposes of Section 409A of the Code at the time of his or her Termination, any Performance Share Units settleable upon or in connection with the Grantee’s Termination shall be delayed and will be made on the day after the first to occur of (a) the day which is six (6) months following the date of such Termination, and (b) the date of the Grantee’s death.  For purposes of the settlement of any amounts deemed to be “nonqualified deferred compensation” under Section 409A of the Code upon a Termination, the terms “Terminate”, “Terminated”, and “Termination” shall mean a Termination of the Grantee that constitutes a “separation from service” within the meaning of Section 409A of the Code.  For purposes of Section 409A of the Code, the right to a series of installment payments under this Award Agreement shall be treated as a right to a series of separate payments.
		

		
			 
		

			
	
			
				 14.
			

			
	
			
			Headings and Capitalized Terms 

		
			 
		

		
			Unless otherwise provided herein, capitalized terms used herein that are defined in the Plan and not defined herein shall have the meanings set forth in the Plan. Headings are for convenience only and are not deemed to be part of this Award Agreement. Unless otherwise indicated, any reference to a Section herein is a reference to a Section of this Award Agreement.
		

		
			 
		

			
	
			
				 15.
			

			
	
			
			Severability and Reformation 

		
			 
		

		
			If any provision of this Award Agreement shall be determined by a court of law of competent jurisdiction to be unenforceable for any reason, such unenforceability shall not affect the enforceability of any of the remaining provisions hereof; and this Award Agreement, to the fullest extent lawful, shall be reformed and construed as if such unenforceable provision, or part thereof, had never been contained herein, and such provision or part thereof shall be reformed or construed so that it would be enforceable to the maximum extent legally possible. 
		

		
			 
		

			
	
			
				 16.
			

			
	
			
			Binding Effect 

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			This Award Agreement shall be binding upon the parties hereto, together with their personal executors, administrator, successors, personal representatives, heirs and permitted assigns. 
		

		
			 
		

			
	
			
				 17.
			

			
	
			
			Entire Agreement 

		
			 
		

		
			This Award Agreement, together with the Plan, supersedes all prior written and oral agreements and understandings among the parties as to its subject matter and constitutes the entire agreement of the parties with respect to the subject matter hereof.  If there is any conflict between the Notice, this Award Agreement and the Plan, then the applicable terms of the Plan shall govern. 
		

		
			 
		

			
	
			
				 18.
			

			
	
			
			Waiver 

		
			 
		

		
			Waiver by any party of any breach of this Award Agreement or failure to exercise any right hereunder shall not be deemed to be a waiver of any other breach or right whether or not of the same or a similar nature. The failure of any party to take action by reason of such breach or to exercise any such right shall not deprive the party of the right to take action at any time while or after such breach or condition giving rise to such rights continues. 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			Schedule 1
		

		
			 
		

		
			Performance Goals
		

		
			 
		

		
			Performance Period: Eight fiscal quarters ending January 29, 2022.
		

		
			 
		

		
			Performance Goals: One-half (50%) of the PSUs will vest based on achievement of Comparable Store Sales growth during the Performance Period, and one-half (50%) of the PSUs will vest based on achievement of Adjusted Net Income expansion during the Performance Period, in each case, as determined by the Company in its sole discretion based on Comparable Store Sales and Adjusted Net Income reported by the Company.
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Comparable Store Sales Growth:

			
	
			
				 o
			

			
	
			
			Target Achievement: [___]

			
	
			
				 o
			

			
	
			
			Threshold Percentage: [___]% of Target Achievement

			
	
			
				 o
			

			
	
			
			Maximum Percentage: [___]% of Target Achievement

		
			 
		

			
	
			
				 ·
			

			
	
			
			Adjusted Net Income Expansion:  

			
	
			
				 o
			

			
	
			
			Target Achievement: [___]

			
	
			
				 o
			

			
	
			
			Threshold Percentage: [___]% of Target Achievement

			
	
			
				 o
			

			
	
			
			Maximum Percentage: [___]% of Target Achievement

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			Exhibit A
		

		
			 
		

		
			PARACHUTE TAX PROVISIONS
		

		
			 
		

		
			This Exhibit A sets forth the terms and provisions applicable to the Grantee pursuant to the provisions of Section 8 of the Award Agreement.  This Exhibit A shall be subject in all respects to the terms and conditions of the Award Agreement.  
		

		
			 
		

		
			(a)To the extent that the Grantee, would otherwise be eligible to receive a payment or benefit pursuant to the terms of this Award Agreement, any employment or other agreement with the Company or any Subsidiary or otherwise in connection with, or arising out of, the Grantee’s employment with the Company or a change in ownership or effective control of the Company or of a substantial portion of its assets (any such payment or benefit, a “Parachute Payment”), that a nationally recognized United States public accounting firm selected by the Company (the “Accountants”) determines, but for this sentence would be subject to excise tax imposed by Section 4999 of the Code (the “Excise Tax”), subject to clause (c) below, then the Company shall pay to the Grantee whichever of the following two alternative forms of payment would result in the Grantee’s receipt, on an after-tax basis, of the greater amount of the Parachute Payment notwithstanding that all or some portion of the Parachute Payment may be subject to the Excise Tax: (1) payment in full of the entire amount of the Parachute Payment (a “Full Payment”), or (2) payment of only a part of the Parachute Payment so that the Grantee receives the largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”).
		

		
			 
		

		
			(b)If a reduction in the Parachute Payment is necessary pursuant to clause (a), then the reduction shall occur in the following order: (1) cancellation of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity; (2) reduction of cash payments (with such reduction being applied to the payments in the reverse order in which they would otherwise be made, that is, later payments shall be reduced before earlier payments); and (3) cancellation of acceleration of vesting of equity awards not covered under (1) above; provided,  however, that in the event that acceleration of vesting of equity awards is to be cancelled, acceleration of vesting of full value awards shall be cancelled before acceleration of options and stock appreciation rights and within each class such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such equity awards, that is, later equity awards shall be canceled before earlier equity awards; and provided,  further, that to the extent permitted by Code Section 409A and Sections 280G and 4999 of the Code, if a different reduction procedure would be permitted without violating Code Section 409A or losing the benefit of the reduction under Sections 280G and 4999 of the Code, the Grantee may designate a different order of reduction.
		

		
			 
		

		
			(c)For purposes of determining whether any of the Parachute Payments (collectively the “Total Payments”) will be subject to the Excise Tax and the amount of such Excise Tax, (i) the Total Payments shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that, in the opinion of the Accountants, such Total Payments (in whole or in part):  (1) do not constitute “parachute payments,” including giving effect to the recalculation of 

		 

		

			 

		

		

			 

		

stock options in accordance with Treasury Regulation Section 1.280G-1, Q&A 33, (2) represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the “base amount” or (3) are otherwise not subject to the Excise Tax, and (ii) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code.
		

		
			 
		

		
			(d)All determinations hereunder shall be made by the Accountants, which determinations shall be final and binding upon the Company and the Grantee.
		

		
			 
		

		
			(e)The federal tax returns filed by the Grantee (and any filing made by a consolidated tax group which includes the Company) shall be prepared and filed on a basis consistent with the determination of the Accountants with respect to the Excise Tax payable by the Grantee.  The Grantee shall make proper payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies (with any amendments) of his or her federal income tax return as filed with the Internal Revenue Service, and such other documents reasonably requested by the Company, evidencing such payment (provided that the Grantee may delete information unrelated to the Parachute Payment or Excise Tax and provided,  further that the Company at all times shall treat such returns as confidential and use such return only for purpose contemplated by this paragraph).  
		

		
			 
		

		
			(f)In the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Excise Tax, the Grantee shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect the Grantee but the Grantee shall control any other issues.  In the event that the issues are interrelated, the Grantee and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue.  In the event of any conference with any taxing authority as to the Excise Tax or associated income taxes, the Grantee shall permit the representative of the Company to accompany the Grantee, and the Grantee and his representative shall cooperate with the Company and its representative.
		

		
			 
		

		
			(g)The Company shall be responsible for all charges of the Accountants.
		

		
			 
		

		
			(h)The Company and the Grantee shall promptly deliver to each other copies of any written communications, and summaries of any verbal communications, with any taxing authority regarding the Excise Tax covered by this Exhibit A.
		

		
			 
		

		
			(i)Nothing in this Exhibit A is intended to violate the Sarbanes-Oxley Act of 2002 and to the extent that any advance or repayment obligation hereunder would do so, such obligation shall be modified so as to make the advance a nonrefundable payment to the Grantee and the repayment obligation null and void.
		

		
			 
		

		
			(j)Notwithstanding the foregoing, any payment or reimbursement made pursuant to this Exhibit A shall be paid to the Grantee promptly and in no event later than the end of the calendar year next following the calendar year in which the related tax is paid by the Grantee or where no taxes are required to be remitted, the end of the Grantee’s calendar year following the 

		 

		

			 

		

		

			 

		

Grantee’s calendar year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation.
		

		
			 
		

		
			(k)The provisions of this Exhibit A shall survive the termination of the Grantee’s employment with the Company for any reason and the termination of the Award Agreement.Exhibit  10.1

 

[*] Certain information
in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively
harmful if publicly disclosed.

 

EXCLUSIVE
LICENSE AGREEMENT (Patent and know-how only)

 

This
Exclusive License Agreement (the “Agreement”) is made and entered into this 18th day of May, 2020 (the “Effective
Date”), by and between Hoth Therapeutics and its Affiliates (the “Licensee”) with its principal
place of business at One Rockefeller Plaza, 10th FL, New York, NY 10020 , and VIRGINIA COMMONWEALTH UNIVERSITY INTELLECTUAL
PROPERTY FOUNDATION ( “Licensor”) with its principal place of operation at Virginia Commonwealth University,
800 E. Leigh Street, Suite 3000, Richmond, Virginia 23298-0568. In consideration of the promises and the terms of this Agreement,
Licensor and Licensee agree as follows.

 

1.
BACKGROUND

 

Licensor
manages and licenses intellectual property developed at Virginia Commonwealth University (“VCU”) or otherwise
owned by VCU and/or Licensor. This intellectual property, includes the patent application and know-how associated with the VCU
Invention Disclosure No. PET-20-030 entitled “Small Helical Peptide Binder (ACE2 Decoy Peptide) to SARS Covid-2 Spike Protein,”
invented by Dr. Peters (“Inventor(s)”). Licensee desires to commercialize products based on these inventions
and license the inventions and know-how from Licensor under the terms of this Agreement.

 

2.
DEFINITIONS

 

The
following terms shall have the meaning ascribed to them below.

 

2.1
“Affiliate” of any company means any corporation which, directly or indirectly, controls or is controlled
by, or is under direct or indirect common control with, such company; and for the purposes of this definition “control”
(including “control by” and “under common control with”) as used with respect to any corporation or company,
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such corporation or company, through the ownership of more than 50% of the voting shares.

 

2.2
 “Calendar Quarter” means the three-month period ending March 31, June 30, September 30, or December 31
in any year.

 

2.3
“Combination Product” means a product for use in the Field of Use which contains a Licensed Product, and
also one or more other components which performs a useful function independent of the Licensed Product where the Licensed Product
in the Combination Product can also function independently of the other components.

 

2.4
“Licensed Patents” means the Valid Claims of, to the extent controlled by Licensor, the United States patents
and patent applications, corresponding foreign patents and patent applications as listed in Appendix A, incorporated herein by
reference, and any reissues, extensions, substitutions, continuations, divisions, and continuation-in-part applications (but only
those Valid Claims in the continuation-in-part applications that are entirely supported in the specification and entitled to the
priority date of the parent application).

 

2.5
“Licensed Product(s)” means any product in the Field of Use that incorporates, is covered by or is made,
in whole or part, by the use of the Licensed Patents and/or embodies, contains, uses, is used or made through the use of, or was
in whole or part derived from Licensed Technical Information.

 

    1

     

    

 

2.6
“Licensed Service(s)” means the performance on behalf of a third party of any method that is covered by,
in whole or part, by the use of the Licensed Patents and/or embodies, contains, uses, is used or made through the use of, or was
in whole or part derived from Licensed Technical Information.

 

2.7
“Licensed Technical Information” means proprietary data and know-how not generally publicly known that
is owned or controlled by VCU and is provided by Licensor in order to practice Licensed Patents.

 

2.8
 “Field of Use” means All Field of Use.

 

2.9
“Net Sales” means the amounts received by Licensee and its Affiliates from the use of Licensed Products,
the performance of Licensed Services, or the sale of Licensed Products, less: (a) discounts or rebates actually allowed from the
billed amount, (b) credits or allowances actually allowed upon claims or returns, and (c) taxes or other government charges included
in the amounts billed. For non-cash and partial-cash sales, Net Sales shall include the fair market value of non-cash consideration
received for such sale of the same quantity of Licensed Products and/or Licensed Services. In the event that Licensed Products
and/or Licensed Services are used by Licensee rather than sold, the parties shall agree upon an appropriate Net Sales price for
each such use on which to base a royalty calculation.

 

In
the case of Combination Products “Net Sales” shall mean the amounts received by Licensee and its Affiliates and Sublicensees
from the use of Combination Products or the sale of the Combination Products, less the deductions set forth in (a) through (c)
above, multiplied by a proration factor that is determined as follows:

 

(x)
if all components of the Combination Product were sold separately during the same or immediately preceding calendar quarter, the
proration factor for each different Combination Product shall be determined by the formula [A / (A+B)], where A is the sum of
the average sale prices of each of the Licensed Product components in that Combination Product during such period when sold separately
from the other essential functional components in that Combination Product, and B is the sum of the average sale prices of each
of the other essential functional components in that Combination Product during such period when sold separately from such Licensed
Product components; or

 

(y)
if such average sale price cannot be determined for the Licensed Product components of a Combination Product, and for each of
the other essential functional component(s) of such a Combination Product, then the proration factor shall be determined by the
formula [C/(C+D)], where C is the fair market value of the Licensed Product and D is the fair market value of all other essential
functional component(s) included in the Combination Product. Prior to first sales of a Combination Product, Licensee shall in
good faith make a determination of the respective fair market values of the Licensed Product and the other essential functional
component(s) included in the Combination Product, and shall notify Licensor of such determination and provide Licensor with data
to support such determination. Licensor shall have the right to review and approve such calculation, such approval not to be unreasonably
withheld or delayed. If Licensor does not agree with such determination, Licensor shall inform Licensee within thirty (30) days
of receiving Licensee’s determination and data, and the parties shall meet promptly to discuss the basis of the calculations;
if Licensor and Licensee are still unable to agree in good faith as to such respective fair market values, then the parties shall
attempt to resolve the dispute in accordance with the provisions of this Agreement.

 

    2

     

    

 

2.10
“Sublicensee” means any non-affiliated third party to whom Licensee has granted a Sublicense.

 

2.11
“Sublicense” means an agreement in which Licensee (a) grants or otherwise transfers any of the rights licensed
to Licensee under this Agreement, or (b) agrees not to assert such rights or to sue, prevent or seek a legal remedy for the practice
of the rights licensed to Licensee under this Agreement.

 

2.12
“Sublicensing Revenue” means the fair market cash value of any and all consideration received by Licensee
from a Sublicensee under its Sublicense, including without limitation license issue fees and other licensing fees, option fees,
milestone payments, minimum annual royalties, equity or other payments of any kind whatsoever, irrespective of whether such revenues
are received in the form of cash, barter, credit, stock, warrants, release from debt, goods or services, licenses back, or any
other form whatever.

 

2.13
“Valid Claim” means a claim of a patent or patent application in any country that (a) has not expired;
(b) has not been disclaimed; (c) has not been cancelled or superseded, or if cancelled or superseded, has been reinstated; and
(d) has not been revoked, held invalid, or otherwise declared unenforceable or not allowable by a tribunal or patent authority
of competent jurisdiction over such claim in such country from which no further appeal has or may be taken.

 

3.
GRANT

 

3.1
License. Subject to the terms of this Agreement, Licensor grants to Licensee an exclusive, royalty bearing, license under
Licensed Patents and a nonexclusive royalty bearing, worldwide license for Licensed Technical Information to make, have made,
use, offer to sell, sell, and import Licensed Products and otherwise perform Licensed Services, with the right to Sublicense others
under the terms of Section 9, throughout the term of this Agreement in the Field of Use.

 

3.2
VCU Retained Rights. The parties acknowledge and agree that Licensor and VCU shall be entitled to (a) publish the scientific
findings from research related to Licensed Patents; and (b) to practice the Licensed Patents for educational, research, patient
care and treatment, and other internal purposes. Such reservation shall include the right to extend such right to practice under
the Licensed Patents for educational and research purposes (but not for patient care and treatment, or any other internal purpose)
to subsequent employers of any of the Inventors, but only to the extent that such employers are not-for-profit organizations.
Such reservation shall further include the right to provide technical information, and to grant licenses under the Licensed Patents,
to not-for-profit and governmental institutions for their internal research and scholarly use only, in accordance with the NIH
Guidelines for Obtaining and Disseminating Biomedical Research Resources (as published in the U.S. Federal Register / vol. 64,
No. 246 - 12/23/99).

 

3.3
Government Rights. Notwithstanding anything in this Agreement to the contrary, to the extent that the United States Government
sponsors research at VCU or otherwise contributes to the funding supporting the research, in which the invention covered by the
Licensed Patents was conceived or reduced to practice, as set forth in 35 U.S.C. §§200-206, 37 C.F.R. Part 401 and in
the relevant Government research contracts with VCU, then any and all licenses and other rights granted under this Agreement are
limited by and subject to the rights and requirements of the provisions of 35 U.S.C. §§200-206, 37 C.F.R. Part 401 and
in the relevant Government research contracts with VCU. To the extent applicable, such rights and requirements include without
limitation the grant of a nonexclusive, nontransferable, irrevocable, paid-up license to practice or have practiced for or on
behalf of the Government any of the Licensed Patents throughout the world (as set forth in 35 U.S.C. §202(c)(4)).

 

3.4
U.S. Manufacture Requirement. To the extent required by35 U.S.C. §204, Licensee agrees that any Licensed Products used
or sold in the United States will be manufactured substantially in the United States.

 

3.5
No Implied Rights. Nothing in this Agreement shall be construed to confer any rights upon Licensee by implication, estoppel,
or otherwise as to any technology or patent rights of VCU or any other entity, other than the Licensed Patents, regardless of
whether such technology or patent rights shall be dominant or subordinate to any Licensed Patents.

 

    3

     

    

 

4.
DILIGENCE AND PATENT PROSECUTION

 

4.1
Diligent Efforts to Bring a Licensed Product to Market. The Licensee will use its best efforts to bring one or more Licensed
Products to market through a thorough, vigorous and diligent program for exploitation of the Licensed Patents and Licensed Technical
Information and to continue active, diligent marketing efforts for Licensed Products throughout the life of this Agreement. To
be in compliance with Section 4.1, the Licensee must meet the milestones set out in Appendix C or be granted a waiver from Licensor
in writing.

 

4.2
Patent Prosecution. Licensor shall have exclusive responsibility for the preparation, filing, prosecution, and maintenance
of the Licensed Patents, including choice of patent counsel. Licensor shall have the exclusive responsibility to file reissues
and reexaminations of the Licensed Patents and at its sole discretion. Licensor shall keep Licensee fully informed of patent prosecution,
will seek Licensees comments and suggestions prior to taking material actions for the same, and will take all prosecution actions
reasonably recommended by Licensee which would expand the scope of rights sought. Licensee shall cooperate with Licensor to insure
that each Licensed Patent reflects and will reflect, to the extent practicable and to the best of Licensee’s knowledge,
all items of commercial interest to Licensee.

 

4.3
Patent Cost Reimbursement. Licensee shall reimburse all reasonable legal expenses incurred before and during the term of this
Agreement by Licensor in filing, prosecuting and maintaining the Licensed Patents, within thirty (30) days after receipt of invoice
from Licensor. Any payments to Licensor’s counsel are made with the understanding that such payments do not create an attorney-client
relationship between Licensee and such counsel. Time is of the essence with respect to such payments. Licensor and Licensor’s
counsel may require advance payment by Licensee of patent filing, maintenance fees, annuities and other significant patent prosecution
expenses within thirty (30) days after receipt of invoice from Licensor.

 

4.4
Cooperation. Licensor or its patent counsel shall inform Licensee (either orally or in writing, including via email) of all
material actions necessary for the filing, prosecution, issuance and maintenance of Licensed Patents. Licensee shall promptly
instruct Licensor in writing whether to take such action at Licensee’s expense. If Licensor does not receive from Licensee
written instruction to take the material action at issue within thirty (30) days prior to the statutory bar date for such material
action, Licensor shall have no obligation to take or have taken such material action to protect the Licensed Patents at issue,
even if the result is the irrevocable loss of rights.

 

4.5
Failure to Pay. If Licensee declines to pay in full any legal expenses necessary for the filing, protection or maintenance
of Licensed Patents, Licensor shall have the right to (a) abandon some or all of such rights at Licensor’s sole discretion,
or (b) incur those costs at its own expense. In the former case, the royalty rate for Licensed Products sold in said territory
will be reduced by fifty percent (50%). In the latter case in which Licensor continues to pursue patent protection at its own
expense, Licensor may either require Licensee to pay royalties for that territory as specified in Appendix B or may exclude such
Licensed Patents and Licensed Technical Information rights from the licenses granted under this Agreement by providing Licensee
written notice of this election. In such event, Licensor shall be free to license such rights to third parties without any further
obligation to Licensee. Appendix A will be modified by Licensor accordingly.

 

4.6
Termination for Patent Challenges. Licensor shall have the right to immediately terminate this Agreement, without requirement
notification of default, in the event that Licensee challenges, directly or indirectly, whether as a claim, a cross-claim, counterclaim,
or defense, the validity, patentability or enforceability of any of the Licensed Patents before any court, arbitrator, or other
tribunal or administrative agency in any jurisdiction. The parties acknowledge that the re-examination proceedings shall not be
considered a challenge of the Licensed Patents.

 

    4

     

    

 

5.
PAYMENT PROVISIONS

 

5.1
Fees. Licensee will pay to Licensor the consideration, fees and royalties specified in this Section 4 and Appendix B. For
all royalties and sublicensing fees due relating to Licensed Products, Licensee will pay Licensor for all Licensed Products that
are either sold or produced within thirty (30) days after the end of each Calendar Quarter in U.S. dollars. For all royalties
and sublicensing fees due relating to Licensed Services, Licensee will pay Licensor for all Licensed Services that are either
sold or performed within thirty (30) days after the end of each Calendar Quarter in U.S. dollars. For all other amounts, Licensee
shall pay Licensor as set forth in this Agreement or Appendix B. Time is of the essence with respect to such payments.

 

5.2
Payment Terms. All payments due the Licensor must be paid in U.S. currency. The Licensee must convert Net Sales invoiced in
foreign currency into equivalent U.S. currency at the exchange rate for the foreign currency prevailing as of the last day of
the reporting period, as reported in the Wall Street Journal®. Royalty payments shall be based on Net Sales in any
country where a Licensed Patent covers a Licensed Product and/or a Licensed Service, and on Net Sales of export products when
the product was produced in a country where a Licensed Patent covers a Licensed Product. Licensee agrees to pay interest of 1.5%
per month, the interest being compounded monthly, or two hundred fifty dollars ($250.00), whichever is greater, on any delinquent
payments to Licensor. Licensee shall calculate the correct late payment charge, and shall add it to each such late payment. Licensee
shall pay for all costs and reasonable attorneys’ fees incurred by Licensor in collecting payments due to Licensor.

 

5.3
No Multiple Royalties. If the manufacture, use, lease, or sale of any Licensed Products or Licensed Services are covered by
more than one of the Licensed Patents, multiple royalties shall not be due.

 

6.
REPORTING OBLIGATIONS

 

6.1
Payment Reports.  Licensee shall deliver to Licensor true and accurate reports, within thirty (30) days after each Calendar
Quarter of each year, pertaining to Net Sales of Licensed Products and Licensed Service in the relevant Calendar Quarter, which
shall include at least the following information:

 

(a)
the identity of each Licensed Product and Licensed Service being developed, manufactured, marketed and/or sold;

 

(b)
the stage of development of each Licensed Product and Licensed Service;

 

(c)
the number of each Licensed Product manufactured and/or sold in each country and each and Licensed Service performed in each
country;

 

(d)
Net Sales of Licensed Products and Licensed Service sold by the Licensee and its Affiliates, prepared in accordance with generally
accepted accounting principles, on a country by country basis, for each Licensed Product and Licensed Service;

 

(e)
any and all allowable deductions from Net Sales made by Licensee;

 

(f)
names and addresses of all Sublicensees of Licensee

 

    5

     

    

 

(g)
the amount of all Sublicensing Revenue received from each Sublicensee in the Calendar Quarter;

 

(h)
total royalties and payments due.

 

6.2
Progress Reports. On or before January 1 and July 1 of each year until Licensee markets Licensed Products and/or Licensed
Services, Licensee shall make a written semi-annual report to Licensor covering the preceding six (6) months regarding the progress
of Licensee toward commercial use of Licensed Products and Licensed Services. Such report shall include, as a minimum, information
sufficient to enable Licensor to satisfy reporting requirements of the U.S. Government and for Licensor to ascertain progress
by Licensee toward meeting the diligence requirements of Sections 4.1 and 4.2.

 

6.3
Records. Licensee shall keep full, true and accurate books of account containing all particulars that may be necessary for
the purpose of showing the amounts payable to Licensor hereunder (the “Records”). The Records shall be kept
at Licensee’s principal place of business. The Records shall be made available to Licensor (or its agents) at all reasonable
times for five (5) years following the end of the calendar year to which they pertain for the purpose of verifying Licensee’s
royalty statement or compliance in other respects with this Agreement. The Records will include general ledger records showing
cash receipts and expenses, and records which include production records, customers, serial numbers, and related information in
sufficient detail to enable the royalties and other fees payable under this Agreement by Licensee to be determined. Such examination
is to be made by Licensor or its designee, at the expense of Licensor. Should such inspection, however, lead to the discovery
of a greater than five (5) percent discrepancy in reporting to Licensor’s detriment, Licensee shall pay the full cost of
such inspection. Licensee shall pay any amounts such inspection reveals to be due and owing within thirty (30) days of the receipt
of an invoice for same.

 

7.
INFRINGEMENT

 

7.1
Warranty Disclaimer; Indemnity. Licensee acknowledges and agrees that all rights licensed by the Licensor hereunder are licensed
“as is” and without any representation, indemnification or warranty with respect to possible infringement of third
party rights. In the event of a third party infringement action against either party with respect to any Licensed Patents, Licensee
will defend Licensor and VCU at Licensee’s expense, with the understanding that breaching such obligation may result in
a default judgment against Licensee, its Affiliates, Sublicensees, and/or Licensor (however, Licensee’s failure to defend
shall not prevent VCU and Licensor from defending themselves). Licensee shall indemnify, defend and hold VCU and Licensor harmless
from any such judgment, and without limitation shall pay any damages awarded in any judgment against VCU and Licensor. Licensor
will cooperate as requested by Licensee, and will be compensated by Licensee for its reasonable out-of-pocket expenses incurred
in such cooperation, which Licensor will only be required to expend if Licensee has approved same for reimbursement. No settlement,
consent judgment, or other voluntary final disposition of any suit that would affect the validity, scope or enforceability of
the Licensed Patents, by estoppel, admission or otherwise, or the Licensor’s rights in or to same, may be entered into without
the consent of Licensor.

 

7.2
Notice of Infringement. Licensee and Licensor shall promptly inform each other in writing of any alleged infringement of the
Licensed Patents by a third party.

 

7.3
Prosecution of Infringement by Licensee. So long as Licensee remains the exclusive licensee of the Licensed Patents in the
Field of Use, Licensee, to the extent permitted by law, shall have the right, under its own control and at its own expense, to
prosecute any third party infringement of the Licensed Patents in the Field of Use. If required by law, Licensor shall permit
any action under this Section to be brought in its name, including being joined as a party-plaintiff, provided that Licensee shall
hold Licensor harmless from, and indemnify Licensor against, any costs, expenses, or liability that Licensor incurs in connection
with such action. No settlement, consent judgment, or other voluntary final disposition of the suit shall be entered into without
the consent of Licensor, which consent shall not be unreasonably withheld.

 

    6

     

    

 

7.4
Prosecution of Infringement by Licensor.  In the event that Licensee is unsuccessful in persuading the alleged infringer to
desist and fails to have initiated an infringement action within a reasonable time after Licensee first becomes aware of the basis
for such action (if the third party has not ceased infringing), Licensor shall have the right, at its sole discretion, to prosecute
such infringement under its sole control and at its sole expense.

 

7.5
Recovery Allocation. In the event that Licensor shall undertake the enforcement and/or defense of the Licensed Patents by
litigation, any monetary recovery by Licensor, shall be divided equally between Licensor and Licensee, after Licensor recovers
its attorney’s fees and costs of litigation. In the event that Licensee undertakes the enforcement and/or defense of the
Licensed Patents by litigation, any monetary recovery by Licensee shall be treated as Sublicensing Revenue, after Licensee recovers
its attorney’s fees and costs of litigation.

 

7.6
Cooperation. In any infringement suit that either party may institute to enforce the Licensed Patents pursuant to this Agreement,
the other party shall, at the request of the party initiating such suit and upon reasonable notice, cooperate in all respects
and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information
samples, models, specimens and the like.

 

7.7
Right to Sublicense Infringers. So long as Licensee remains the exclusive Licensee of the Licensed Patents, Licensee shall
have the sole right, subject to approval by Licensor, which shall not be unreasonably withheld, in accordance, with the terms
and conditions herein to Sublicense any alleged infringer for future use of Licensed Patents. Prior to the distribution of sublicensing
fees received from an alleged infringer as specified in Section 5, Licensor shall be compensated for any and all expenses incurred
by it, if any, in that regard prior to the commencement of the Sublicense with the infringer.

 

7.8
Right of Licensor to Step-In. In the event of any legal action alleging invalidity or noninfringement of any of the Licensed
Patents shall be brought against Licensee, or Licensor, Licensor, at its option, shall have the right within thirty (30) days
after the commencement of such action, to intervene and take over the sole defense of the action at its own expense. If Licensor
chooses not to intervene, Licensee shall have the option to intervene and take over the sole defense at its own expense.

 

8.
TERM AND TERMINATION

 

8.1
Term. This Agreement is in full force and effect from the Effective Date and remains in effect until the expiration of the
last to expire Licensed Patents, unless sooner terminated by operation of law or by acts of either of the parties in accordance
with the terms of this Agreement (the “Term”).

 

8.2
Termination for Convenience. Licensee may terminate this Agreement at any time by giving Licensor ninety (90) days written
notice. In the event of termination of this Agreement by Licensee, Licensee shall have no further rights under this Agreement;
however, Licensee will remain obligated for any royalties due or fees accrued or other expenses incurred up until the date of
termination including royalty on sale of inventory in stock after the date of termination.

 

    7

     

    

 

8.3
Termination by Licensor. Licensor may terminate this Agreement if Licensee:

 

(a)
fails to pay on the due date any sum due under Section 5 of the Agreement of Appendix B of this Agreement;

 

(b)
fails to provide reports on the due date specified under Section 6 of this Agreement;

 

(c)
fails to reach diligence milestones as specified in Section 4 or Appendix C of this Agreement;

 

(d)
or fails to correct any other default within ninety (90) days after receipt of written notice by Licensor.

 

8.4
Termination for Bankruptcy. The Licensee must provide notice to the Licensor of its intention to file a voluntary petition
in bankruptcy or, where known to the Licensee, of another party’s intention to file an involuntary petition in bankruptcy
for the Licensee, said notice must be received by the Licensor at least thirty (30) days prior to filing such petition. Licensor
may terminate this Agreement upon receipt of such notice at its sole discretion. The Licensee’s failure to provide such
notice to Licensor will be deemed a material, pre-petition, incurable breach of this Agreement and the Agreement will terminate
automatically on the date of filing such voluntary or involuntary petition in bankruptcy.

 

8.5
Automatic Termination. Notwithstanding the above, this Agreement and the licenses granted herein shall immediately and automatically
terminate without notice in the event Licensee, or its Affiliates, Sublicensees or other party acting under authority of Licensee,
violates any provision of the Indemnification and Insurance Sections. A termination occurring under this Section shall occur and
become effective at the time of the violation that causes such termination, and Licensee and its Affiliates and Sublicensees shall
have no right to complete production and sale of Licensed Products or perform Licensed Services. Notwithstanding the foregoing,
to the extent that such rights are still available for licensing (e.g., Licensor has not licensed them to a third party), Licensee
shall have the right to reinstate the effectiveness of this Agreement by: (a) obtaining the required insurance and providing evidence
of such insurance to Licensor, and (b) paying Licensor for all products sold and services performed during the period of time
when this Agreement was terminated as if they were Licensed Products and/or Licensed Services sold during the Term of this Agreement,
and then this Agreement shall automatically become effective as of the date of reinstatement of said insurance payments and the
receipt of such payment and shall remain in full force and effect without any further action of the parties until termination
or expiration of this Agreement according to its terms.

 

8.6
Survival. The following terms shall survive termination or expiration of this Agreement:

 

(a)
Licensee’s obligation to pay royalties and fees accrued or accruable;

 

(b)
Any cause of action or claim of Licensee or Licensor, accrued or to accrue, because of any breach or default by the other
party; and

 

(c)
The provisions of Section 5, 6, 7 and Paragraphs 8.6, 8.9 and 8.8, and any other provisions that by their nature are intended
to survive.

 

8.7
Sell-Off Right. Upon the early termination of this Agreement, Licensee and its Affiliates and Sublicensees may complete and
sell any work-in-progress and inventory of Licensed Products that exist as of the effective date of termination, provided that
(a) Licensee pays Licensor the applicable running royalty or other amounts due on such Net Sales of Licensed Products in
accordance with the terms and conditions of this Agreement, (b) Licensee pays Licensor the relevant percentage of the Sublicensing
Revenue, and (c) Licensee and its Affiliates and Sublicensees shall complete and sell all work-in-progress and inventory
of Licensed Products within six (6) months after the effective date of termination.

 

8.8
No Waiver. No relaxation, forbearance, delay or indulgence by either party in enforcing any of the terms of this Agreement
or the granting of time by either party to the other shall prejudice, affect or restrict the rights and powers of the former under
this Agreement nor shall any waiver by either party of a breach of this Agreement be considered as a waiver of any subsequent
breach of the same or any other provision of this Agreement.

 

    8

     

    

 

8.9
Rights to Data. Upon termination by either party prior the expiration of the last to expire Licensed Patents, Licensee shall
provide Licensor with copies of and a nonexclusive, royalty-free, worldwide license to data and documentation gathered and/or
submitted for regulatory marketing approval.

 

9.
SUBLICENSE(S)

 

9.1
Sublicense. Licensee shall have the right to seek Sublicenses subject to the terms and conditions of this agreement as stated
in Section 2 and as defined in this Section 8. All Sublicenses will include all of the rights of, and will require the performance
of all the obligations due to, Licensor under this Agreement other than those rights and obligations in Appendix B, Section 2
(License Issue Fee and Patent Prosecution Costs) and Appendix B, Section 5 (Annual Minimum Payment) of this Agreement. In addition
to payment of royalties on Net Sales, Licensee will pay to Licensor a percentage, as specified in Appendix B, Section 4, of Sublicensing
Revenues. Sublicense terms and conditions shall reflect that any Sublicensee(s) shall not further Sublicense. For the purposes
of this Agreement, the operations of all Sublicensees shall be deemed to be the operations of the Licensee, for which the Licensee
shall be responsible.

 

9.2
Compulsory Sublicense. If Licensee licenses patent rights assigned to or otherwise acquired by it (“Licensee’s
Patent Rights”), and it believes, in good faith, that the recipient of such license will infringe Licensed Patents in
practicing the Licensee’s Patent Rights, then the Licensee will not separately grant a license to such recipient under Licensee’s
Patent Rights without concurrently granting a Sublicense under Licensed Patents on the terms required under this Agreement. In
the event that Licensor and the Licensee each own an undivided interest in any Licensed Patents licensed hereunder, the Licensee
will not separately grant a license to any third party under its rights without concurrently granting a license under Licensor’s
rights on the terms and conditions described in this Section 9.

 

9.3
Notice of Sublicense. The Licensee will notify Licensor of each Sublicense granted hereunder and provide Licensor with a complete
copy of each Sublicense within thirty (30) days of issuance of the Sublicense. Royalties and a percentage of Sublicensing Revenues
owed to Licensor will be paid to Licensor on or before the due date of the royalty report applicable, as per Section 6, to the
quarter in which consideration was due and owing to the Licensee under the Sublicense. The Licensee will require Sublicensees
to provide it with copies of all progress reports and royalty reports in accordance with the provisions herein, and the Licensee
will collect and deliver to Licensor all such reports due from Sublicensees.

 

9.4
Effect of Termination. Upon termination of this Agreement for any reason all Sublicenses will be canceled and terminate six
(6) moths after termination of this Agreement, provided each Sublicensee pays Licensor the applicable amounts that would have
been owed by Licensee under this Agreement during the six (6) month period and comply with the other terms of this Agreement.
During this six (6) month period, Licensor will negotiate in good faith with each Sublicensee about a potential direct license
on terms that are similar to the terms in the Sublicense, apart from any warranties, indemnity, or other terms inconsistent with
the terms of this Agreement.

 

10.
MISCELLANEOUS

 

10.1
No Partnership. Nothing in this Agreement shall create, or be deemed to create, a partnership, or the relationship of principal
and agent, between the parties.

 

    9

     

    

 

10.2
Assignment. This Agreement is personal to Licensee. None of the rights or obligations hereunder may be assigned or transferred,
whether by merger, consolidation, acquisition or other change of control, without the prior written consent of Licensor. Any purported
assignment or transfer in violation of the foregoing shall be null and void and of no force and effect. Notwithstanding the foregoing,
Licensee may assign its rights and obligations under this Agreement to an Affiliate or to a successor in connection with the merger,
consolidation, or sale of all or substantially all of its assets or that portion of its business to which this Agreement relates;
provided, however, that such successor shall agree in writing to be bound by the terms and conditions of this Agreement
on or before the effective date of the assignment. Any assignment purported or attempted to be made in violation of the terms
of this Section 10.2 shall be null and void and of no legal effect.

 

10.3
No Liens. Subject to Section 10.2 of this Agreement, the clauses are personal to the parties and neither party may assign,
mortgage, charge or license any of its rights hereunder, nor may either party sub-contract or otherwise delegate any of its obligations
hereunder, except with the prior written consent of the other party.

 

10.4
Marking. Licensee shall (a) to the extent reasonably practical, place in a conspicuous location on all patented products made
pursuant to this Agreement a patent notice in accordance with 35 U.S. C. §287 consisting of the word “Patent”
or “Patents” and the number or numbers of the United States patent or patents licensed hereunder and (b) comply in
all respects with the laws of the country of manufacture, and/or sale of the Licensed Patents so as to ensure Licensor of full
protection and rights under such laws. Licensee shall include the provisions of this clause in all sub-licenses with third parties
and Affiliates.

 

10.5
Indemnity. Licensee shall at all times during the term of this Agreement and thereafter indemnify, defend and hold Licensor,
its trustees, directors, officers, employees and affiliates harmless against all third party claims, proceedings, demands and
liabilities, including legal expenses arising out of the death of or injury to any person or persons or out of any damages to
property resulting from the research, development, production, manufacture, sale, modification, use, import or advertisement of
Licensed Products and/or Licensed Services.

 

10.6
Insurance. Licensee shall obtain and carry in full force and effect commercial, general liability insurance which shall protect
Licensor in accordance with this Section. Such insurance shall be written by a reputable company authorized to do business in
the Commonwealth of Virginia, shall list Licensor as an additional named insured thereunder, shall be endorsed to include product
liability coverage and shall require reasonable written notice to be given to Licensor prior to any cancellation or material change
thereof. The limits of such insurance shall not be less than one million dollars ($1,000,000) per occurrence with an aggregate
of five million ($5,000,000) for personal injury or death, and one million dollars ($1,000,000) per occurrence with aggregate
of three million dollars ($3,000,000) for property damage. Licensee shall provide Licensor with Certificates of Insurance evidencing
same.

 

10.7
Disclaimers. Nothing in this Agreement shall be construed as (a) a warranty or representation by Licensor as to the validity
or scope of any Licensed Patents, (b) a warranty or representation that anything made, used, imported, developed, promoted, offered
for sale, sold, or otherwise disposed of under any license granted in this Agreement does not or will not infringe patents, trade
secrets or other proprietary rights of third parties; (c) an obligation to bring or prosecute actions or suits against third parties
for infringement; (d) conferring the right to use in advertising, publicity or otherwise any trademark, trade name, or names,
or any contraction, abbreviation, simulation or adaptation thereof of VCU or Licensor; (e) conferring by implication, estoppel
or otherwise any license or rights under any patents of Licensor other than the Licensed Patents; (f) any other representations
or warranties, either express or implied, unless specified in this Agreement; (g) directly or indirectly operating or applying
as a waiver of sovereign immunity by the Commonwealth of Virginia; or (h) imposing any obligation or any liability on any party
contrary to the laws of the Commonwealth of Virginia. Licensor DISCLAIMS AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE LICENSED RIGHTS, OR ANY LICENSED PRODUCTS OR LICENSED SERVICES.

 

    10

     

    

 

10.8
No Use of Names. Licensee shall not use the names or trademarks of Licensor, nor any adaptation thereof, nor the names of
any of its employees, in any advertising, promotional or sales literature without prior written consent obtained from Licensor,
or said employee, in each case, except that the Licensee may state that it is a Licensee of Licensor with respect to the Licensed
Patents.

 

10.9
Notice. Any notice or payment required to be given to either party will be deemed to have been properly given and to be effective:
(a) on the date of delivery if delivered in person; (b) on the date of mailing if mailed by first-class certified mail, postage
paid; or (c) on the date of mailing if mailed by any global express carrier service that requires the recipient to sign the documents
demonstrating the delivery of such notice or payment; to the respective addresses given below, or to another address as designated
in writing by the party changing its address.

 

VIRGINIA
COMMONWEALTH UNIVERSITY 

INTELLECTUAL
PROPERTY FOUNDATION

 

President 

Box
980568 

800
E. Leigh Street, Suite 3000 

Virginia
Commonwealth University 

Richmond,
VA 23298-0568

 

LICENSEE

 

Robb
Knie 

One
Rockefeller Plaza, 10th FL 

New
York, NY 10020 

(201)
446-7900

 

10.10
Entire Agreement. This Agreement contains the entire and only agreement and understanding between the parties and supersedes
all preexisting agreements between them respecting its subject matter. Any representation, promises, or condition in connection
with such subject matter which is not incorporated in this Agreement shall not be binding on either party. No modification, renewal,
wavier, and no termination of this Agreement or any of its provisions shall be binding upon the party against whom enforcement
of such modification, renewal, waiver or termination is sought, unless made in writing and signed on behalf of such party by one
of its duly authorized officers. As used in this Agreement, the word “termination” includes any and all means of bringing
an end prior to its expiration by its own terms this Agreement, or any provisions thereof, whether by release, discharge, abandonment
or otherwise.

 

10.11
Governing Law. This Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the Commonwealth
of Virginia, U.S.A., except that questions affecting the construction and effect of any patent shall be determined by the law
of the country in which the patent was granted. Any legal action or proceeding relating to this Agreement or any document or instrument
related hereto shall be brought only in the courts of the Commonwealth of Virginia in Richmond, Virginia, and by its execution
and delivery of this Agreement, Licensee hereby accepts for itself and in respect to its property, generally and unconditionally,
the jurisdiction of the aforesaid courts.

 

10.12
Counterparts. This Agreement may be executed in one or more counterparts and any party hereto may execute any such counterparts
each of which shall be deemed an original and all of which, taken together, shall constitute but one and the same document. It
shall not be necessary in making proof of this document or any counterpart hereof to produce or account for any of the other counterparts.

 

    11

     

    

 

10.13
Severability. The provisions of this Agreement are severable, and in the event that any provisions of this Agreement shall
be determined to be invalid or unenforceable under any controlling body of the law, such invalidity and unenforceability shall
not in any way affect the validity or enforceability of the remaining provisions hereof. In the event the validity or unenforceability
of any provision of this Agreement is brought into question because of the decision of a court of competent jurisdiction, Licensor,
by written notice to Licensee may revise the provision in question or may delete it entirely so as to comply with the decision
of said court.

 

10.14
Waiver. The failure of either party to assert a right hereunder or to insist upon compliance with any term or condition of
this Agreement shall not constitute a waiver of that right or excuse a similar failure to perform any such term or condition by
the other party.

 

10.15
Export Control. It is understood that Licensor and VCU are subject to United States laws and regulations controlling the export
of technical data, computer software, laboratory prototypes and other commodities (including the Arms Export Control Act, as amended
and the United States Department of Commerce Export Administration Act of 1979). The transfer of such items may require a license
from the cognizant agency of the United States Government and/or written assurances by Licensee that Licensee shall not export
data or commodities to certain foreign countries without prior approval of such agency. Licensor neither represents that license
shall not be required nor, if required, it shall be issued.

 

10.16
Language. All reports and documents to be forwarded to Licensor shall be in the English language.

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed in duplicate as first above written.

 

AGREED
AND ACCEPTED:

 

HOTH
THERAPEUTICS:

 

	By:	 	 	Date:	 
	 	 	 	 	 
	Title	 	 	 	 

 

VIRGINIA
COMMONWEALTH UNIVERSITY 

INTELLECTUAL
PROPERTY FOUNDATION

 

	By:	 	 	Date:	 

Ivelina
S. Metcheva, Ph.D., MBA

President,
VCU Intellectual Property Foundation

 

    12

     

    

 

APPENDIX
A

Licensed
Patents

 

1.
U.S. Patent Rights

 

(a)
VCU #PET-20-030à “Small
Helical Peptide Binder (ACE2 Decoy Peptide) to SARS Covid-2 Spike Protein,” by Michael Peters, U.S. Patent Application No.
6 3/006,234, filed 4/7/2020.

 

    A-1

     

    

 

APPENDIX
B

FEES
AND ROYALTIES

 

		 	[*]

    B-1

     

    

 

APPENDIX
C

DILIGENCE
MILESTONES

 

		 	[*]

 

C-1

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