Document:

aq-ex101_15.htm

 

Exhibit 10.1

 

AQUANTIA CORP.

 

January 3, 2018

 

Pirooz Parvarandeh

 

 

Re:Offer of Employment 

 

Dear Pirooz:

On behalf of Aquantia Corp. (the “Company”), I am pleased to offer you the position of Chief Operating Officer (“COO”) at the Company on the terms set forth in this offer letter agreement (the “Agreement”).  

1.Employment Position and Duties.  As COO, you will report directly to the Company’s Chief Executive Officer (“CEO”).  You will have duties and responsibilities customary for a COO and as may be directed by the CEO and the Company’s Board of Directors (the “Board”).  You will work from the Company’s headquarters in San Jose, California, with substantial business travel as necessary in the performance of your duties.  During your employment with the Company, you will be expected to devote your full-time best efforts to the business of the Company.

2.Base Salary and Employee Benefits.  

(a)Salary.  Your initial base salary will be at the rate of $27,916.67 per month (an annual rate of $335,000), less standard payroll deductions and tax withholdings, paid on the Company’s normal payroll schedule.  As an exempt salaried employee, you will be required to work the Company’s normal business hours, and such additional time as necessary or desirable to discharge your duties and complete your work assignments; and you will not be eligible for extra payment under overtime laws.  The Board will review your base salary for potential modification on an annual basis.  

(b)Benefits.  You will be eligible to participate in the Company’s group health insurance plan and other employee benefit plans established by the Company for its employees from time to time, subject to the terms and conditions of the benefit plans and Company policies.  A brief summary of benefits currently offered by the Company is enclosed with this letter.  

3.Annual Discretionary Bonus Program.  Aquantia has established an annual discretionary bonus program for all of its employees based on criteria determined within the Company’s discretion that include, but are not limited to, the Company’s achievement of its revenue targets and your achievement of individual objectives.  The applicable Company revenue targets and individual objectives will be determined by the Company in its sole discretion.  Such annual bonuses are payable at the discretion of the Company, and the Company will determine whether and to what extent the applicable Company and individual objectives and other bonus criteria have been achieved, and the amount of any earned bonus.  Although the Company retains sole discretion to determine the amount of any earned annual bonus, your target annual bonus will be fifty percent (50%) of your annual base salary.  Employees starting employment after January 1 in a plan year will be eligible for a pro-rated discretionary bonus, calculated from the date of hire.  Such bonuses are not considered earned until the applicable payment date scheduled by the Company for such bonuses; and therefore, in order to be eligible for an annual discretionary bonus, 

 

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you must remain employed through the date annual bonuses are scheduled to be paid.  No discretionary bonus is guaranteed.  The Company retains the right to modify or terminate the annual bonus program at any time.

4.Equity Compensation.  Subject to Board approval, you will be granted 96,000 Restricted Stock Units of the Company (the “RSU Award”) under the Company’s 2017 Equity Incentive Plan (the “Plan”).  Your RSU Award will vest as to 33% of the Restricted Stock Units subject thereto on each anniversary of your start date with the Company, provided you remain employed by the Company through each such vesting date.  The RSU Award will be subject to the Restricted Stock Unit Agreement approved by the Company’s Board of Directors.  Further details on the Plan and the Restricted Stock Unit Award will be provided upon Board approval of such grant.

5.Company Policies and Procedures.  As a condition of your employment, you are required to abide by the Company’s policies and procedures, including but not limited to policies set forth in the Company’s Employee Handbook, as may be in effect from time to time.  You will be required to sign an acknowledgement that you have read and will comply with the policies contained in the Employee Handbook.

6.Employee Invention Assignment and Confidentiality Agreement.  As an employee of the Company, you will have access to certain confidential and proprietary information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the sole property of the Company.  As a condition of this offer and your employment with the Company, you are required to sign and comply with the Company’s standard Employee Invention Assignment and Confidentiality Agreement (attached as Exhibit A).  In addition, you are prohibited from bringing with you, or using in your employment, any confidential or proprietary material or trade secrets of any former employer or other third party to whom you have an obligation of confidentiality, or otherwise violating any other obligations you may have to any former employer or other third party.  By signing this letter, you represent that you are able to perform your job duties within these guidelines, and you are not in unauthorized possession of any confidential documents, information, or other property of any former employer or other third party.  You further represent that you have disclosed to the Company in writing, and have provided the Company with, a copy of any agreement you may have with any third party (e.g., any former employer) which may conflict with or limit your ability to perform your duties to the Company. 

7.Outside Activities.  You shall not engage in outside business activities without written consent of the CEO after you have provided specific disclosure to the CEO of the nature of any proposed activities. 

(a)Boards and Civic Activities.  Throughout your employment with the Company, you may engage in civic and not-for-profit activities so long as such activities do not interfere with the performance of your duties hereunder or present a conflict of interest with the Company.  Subject to the restrictions set forth herein, and with prior written detailed disclosure to and consent of the Board, you may serve as a director of other for-profit or non-profit entities.  The Board may rescind such consent, if the Board determines, in its sole discretion, that such activities compromise or threaten to compromise the Company’s business interests or conflict with your duties to the Company.   

(b)Non-competition.  During your employment by the Company, you will not, without the express written consent of the Board, directly or indirectly serve as an officer, director, stockholder, employee, partner, proprietor, investor, joint venturer, associate, representative or consultant, whether 

 

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paid or unpaid, of any person or entity engaged in, or planning or preparing to engage in, business activity competitive with any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that you may purchase or otherwise acquire up to (but not more than) one percent (1%) of any class of securities of any enterprise (without participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange.

8.At-Will Employment Relationship.  Your employment relationship with the Company is at-will.  Accordingly, you may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company; and the Company may terminate your employment at any time with or without Cause or prior notice.  Any modification of your at-will employment status may only occur by way of a written agreement signed by you and the CEO of the Company.

9.Authorization to Work.  As required by law, this offer and your employment with the Company is conditioned upon your legal authorization to work in the United States; and you will be required (on or within three (3) business days after your start date) to provide satisfactory proof of your identity and right to work in the United States.  If you have any questions about this requirement (which applies to both U.S. citizens and non-U.S. citizens) or how to satisfy it, you may contact our personnel office to discuss it further.

10.Severance Benefits.  In the event of the termination of your employment, you will be entitled to receive, pursuant to the Company’s standard payroll policies, your accrued but unpaid salary through the date of termination, together with all compensation and benefits payable to you based on your participation in any compensation or benefit plan, program or arrangement through the date of termination, including but not limited to any accrued but unused vacation time.  In addition, if your employment is terminated under the circumstances described in Sections 10(a) or 10(b) below and you satisfy the Preconditions set forth in Section 10(c) below, you will be eligible for severance benefits (the “Severance Benefits”) as set forth below.  For the avoidance of doubt, you will not be eligible for any severance benefits under any circumstances other than those described in Sections 10(a) and 10(b) below.

(a)Termination Without Cause or Resignation for Good Reason After a Change in Control.  If your employment ends due to a Covered Termination within eighteen (18) months after a Change in Control and you satisfy the Preconditions set forth in Section 10(c) below, then you will receive the following Severance Benefits:

(i)Severance Payment.  A lump sum cash severance payment in an amount equal to twelve (12) months of your then-current base salary (disregarding any reduction in salary that forms the basis for a resignation for Good Reason), subject to required payroll deductions and tax withholdings, paid on the sixtieth (60th) day following your Separation From Service. 

(ii)Accelerated Vesting.  Effective as of your termination date, the vesting of your then-outstanding and unvested compensatory equity awards will be accelerated so that you will receive any vesting that would otherwise have occurred within eighteen (18) months of the termination date.  

(iii)COBRA Premiums.  If you (and any of your eligible dependents) are participating in the Company’s medical, dental, vision and prescription drug plans as of the date of termination and you timely elect COBRA coverage under such plans, the Company shall reimburse you for the full amount of such COBRA premiums (on a monthly basis) for a period of up to eighteen (18) months following the 

 

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date of termination; provided, that, if and to the extent that any benefit described in this Section 10(a) cannot be paid or provided under any Company plan or program without adverse tax consequences or penalties to the Company or for any other reason, as determined by the Company in its sole discretion, then the Company shall pay you a fully taxable cash payment equal to the COBRA premium for that month, subject to applicable tax withholding for a period of up to eighteen (18) months following the date of termination.  Additionally, such COBRA payments or, if applicable, the monthly payment described in the preceding sentence, shall terminate on the earliest to occur of: (A) the close of the eighteen (18) month period following the termination of your employment; (B) the expiration of your (or your dependents’) eligibility for continuation coverage under COBRA; or (C) the date when you become eligible for group health insurance coverage in connection with new employment or self-employment (the “COBRA Reimbursement Period”).  If you become eligible for coverage under another employer's group health plan or otherwise cease to be eligible for COBRA coverage during the COBRA Reimbursement Period, you must immediately provide written notice to the Company of such event, and the Company-provided COBRA payments (or if applicable, the monthly payments under this Section 10(a)(iii)) will immediately cease. 

(b)Additional Severance Payments Irrespective of Change in Control.  If your employment ends due to a Covered Termination at any time (regardless of whether a Change in Control has occurred), then in addition to any COBRA premium payment for which you may be eligible under Section 10(a)(iii)(COBRA Premiums), the Company will pay a Severance Benefit to you of $25,000 per year for the seven (7) years following your Separation from Service, subject to standard withholdings and deductions, to assist you with further health insurance premium payments for yourself and your dependents, whether through COBRA or by purchasing an independent health insurance policy.  Such Severance Benefit shall be paid in seven (7) annual installments starting on the date of your Separation from Service (or as soon thereafter as practicable) and on the next six (6) anniversary dates of your Separation from Service; provided, however, that such payments shall cease in the event that you become eligible for other health insurance coverage with a new employer; and you shall provide the Company’s Chief Financial Officer prompt written notice of any such eligibility date.  In the event the Covered Termination is unrelated to a Change in Control, then you will become eligible for such severance payments after the Separation From Service, provided the Release required in Section 10(c) has become effective.  In the event that the Covered Termination takes place within eighteen (18) months after a Change in Control, then you will become eligible for such severance payments after the end of the eighteen (18) months of COBRA premium payments by the Company under Section 10(a)(iii).

(c)Preconditions.  Notwithstanding anything to the contrary set forth herein, in order to be eligible to receive any Severance Benefits under Sections 10(a) or 10(b) above, you must: (i) sign (no earlier than the date of such Separation From Service) and allow to become effective by the 60th day following your Separation From Service, a form of release, of all known and unknown claims against the Company and all related parties, satisfactory to the Company (“Release”); and (ii) continue to comply with all continuing obligations to the Company under this Agreement and your Employee Invention Assignment and Confidentiality Agreement.  No Severance Benefits will be paid hereunder prior to the effective date of such Release.  

 

11.Definitions.  For purposes of this Agreement, capitalized terms used herein shall have the following meanings: 

 

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(a)Definition of Cause.  For purposes of this Agreement, the occurrence of any of the following shall constitute “Cause” for termination: (a) willful neglect, failure or refusal by you to perform your employment duties (except resulting from your incapacity due to illness) as reasonably directed by the Company; (b) willful misconduct by you in the performance of your employment duties; (c) your indictment for a felony (other than traffic related offense) or a misdemeanor involving moral turpitude; (d) your commission of an act involving personal dishonesty including, but not limited to, an act constituting misappropriation or embezzlement of Company property; or (e) your material breach of this Agreement or any other agreement between you and the Company, including without limitation, your Employee Invention Assignment and Confidentiality Agreement.  The determination of Cause will be made by the Company in its sole discretion; provided, however, that Cause shall not be deemed to exist under clauses (a) or (e) above unless you have been given specific notice by the Company of the existence of Cause and, if the existence of Cause is reasonably curable, a reasonable opportunity to cure the existence of such Cause.  You will only be entitled to one such notice and cure period.  

(b)Definition of Good Reason.  For purposes of this Agreement, “Good Reason” shall mean a voluntary resignation by you from all positions you then hold with the Company, its affiliates and any successor corporation or entity in the event of (1) a reduction in your salary of more than ten percent (excluding pro rata reductions across all executives in the Company), (2) your title is materially adversely changed, such that you do not have the title of COO or its equivalent or any title of superior stature, which change in title is a material breach of this Agreement, (3) a material reduction in your responsibilities to less than those typically held by a COO, (4) a relocation of the offices where you are required to work to a location that increases your daily commute by more than fifty (50) miles, or (5) any other material breach by the Company (or any successor corporation or entity) of this Agreement or any other agreements entered into by you and the Company (or any successor corporation or entity) under which you provide services.  However, Good Reason shall only exist if you provide written notice to the Company’s Board (or the board of directors of any successor corporation or entity) of any such material adverse change or breach within thirty (30) days after such change or breach first occurs, and the Company (or any successor corporation or entity) fails to cure such change or breach (to the extent that such change or breach is capable of cure) within ninety (90) days after written notice thereof, and your resignation for Good Reason is effective not later than ninety (90) days after the expiration of such cure period.  

(c)Definition of Covered Termination.  For all purposes of this Agreement, a “Covered Termination” shall mean a termination of your employment with the Company, its affiliates and any successor corporation or entity, which constitutes a Separation From Service and is caused either by (a) a termination by the Company (or any successor corporation or entity) without Cause and other than as a result of your death or disability, or (b) your resignation for Good Reason. 

 

(d)Definition of Separation From Service.  For all purposes of this Agreement, a “Separation From Service” shall mean your separation from service as provided under Treasury Regulation Section 1.409A-1(h) without regard to any alternative definitions thereunder.

 

(e)Definition of Change in Control.  For purposes of this Agreement, a “Change in Control” shall mean the sale, lease, or other disposition of all or substantially all of the Company’s assets or the Company’s merger into or consolidation with any other corporation or other entity, or any other corporate reorganization, in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own immediately after such transaction securities representing less than a majority of the voting power of the corporation or other entity surviving such transaction; provided that, a Change in 

 

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Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.

 

12.IRS Code Section 409A Compliance.  Notwithstanding anything set forth in this Agreement to the contrary, any payments and benefits provided pursuant to this Agreement which constitute “deferred compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A shall not commence until you have incurred a Separation From Service, unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the additional 20% tax under Section 409A.  For the avoidance of doubt, it is intended that the payments and benefits set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9) and this Agreement will be construed to the greatest extent possible as consistent with those provisions.  For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.  To the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A and incorporates by reference all required definitions and payment terms.  Notwithstanding any provision to the contrary in this Agreement, if the Company (or, if applicable, the successor entity thereto) determines that any payments upon your Separation From Service set forth herein and/or under any other agreement with the Company constitute “deferred compensation” under Section 409A and you are, on your Separation From Service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code, then, solely, to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the payments upon your Separation From Service shall be delayed until the earlier to occur of: (a) the date that is six months and one day after your Separation From Service, or (b) the date of your death (such applicable date, the “Specified Employee Initial Payment Date”).  On the Specified Employee Initial Payment Date, the Company (or the successor entity thereto, as applicable) shall (A) pay you a lump sum amount equal to the sum of the payments upon your Separation From Service that you would otherwise have received through the Specified Employee Initial Payment Date if the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this section, and (B) commence paying the balance of the Severance Benefits in accordance with the applicable payment schedules set forth in this Agreement.  Except to the minimum extent that payments must be delayed because you are a “specified employee” (as described above) or until the effectiveness of the Release, all amounts will be paid as soon as practicable in accordance with the Company’s normal payroll practices and no interest will be due on any amounts so deferred.

13.Better After Tax Provision.  If any payment or benefit that you will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment will be equal to the Reduced Amount.  The “Reduced Amount” will be either (x) the largest portion of the 280G Payment that would result in no portion of the 280G Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the 280G Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable 

 

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marginal rate), results in your receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the 280G Payment may be subject to the Excise Tax.  If a reduction in a 280G Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction will occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for you.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).  Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the 280G Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, will be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification will preserve to the greatest extent possible, the greatest economic benefit for you as determined on an after-tax basis; (B) as a second priority, 280G Payments that are contingent on future events (e.g., being terminated without Cause), will be reduced (or eliminated) before 280G Payments that are not contingent on future events; and (C) as a third priority, 280G Payments that are “deferred compensation” within the meaning of Section 409A of the Code will be reduced (or eliminated) before 280G Payments that are not “deferred compensation” within the meaning of Section 409A of the Code.  If Section 280G of the Code is not applicable by law to you, the Company will determine whether any similar law in your jurisdiction applies and should be taken into account.  The independent professional firm engaged by the Company for general tax audit purposes as of the day prior to the effective date of the Change in Control will make all determinations required to be made under this Section.  If the firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company will appoint a nationally recognized independent professional firm to make the determinations required hereunder.  The Company will bear all expenses with respect to the determinations by such firm required to be made hereunder.  The Company will use commercially reasonable efforts to cause the firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Company and you within thirty (30) calendar days after the date on which your right to a 280G Payment becomes reasonably likely to occur (if requested at that time by the Company or you) or such other time as requested by the Company or you.  If you receive a 280G Payment for which the Reduced Amount was determined pursuant to clause (x) of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the 280G Payment is subject to the Excise Tax, you will promptly return to the Company a sufficient amount of the 280G Payment (after reduction pursuant to clause (x) of the first paragraph of this Section) so that no portion of the remaining 280G Payment is subject to the Excise Tax.  For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of the first paragraph of this Section, you will have no obligation to return any portion of the 280G Payment pursuant to the preceding sentence.

14.Dispute Resolution.  To ensure the rapid and economical resolution of disputes that may arise under or relate to this Agreement, its interpretation, execution, performance, or enforcement, or your employment with or separation from the Company, you and the Company agree that any and all disputes, claims, or causes of action, in law or equity, between the parties (collectively, “Claims”), shall be resolved to the fullest extent permitted by law, by final, binding, and (to the extent permitted by law) confidential arbitration conducted before a single arbitrator mutually selected from JAMS, Inc. (“JAMS”) in San Jose, California under JAMS’ then applicable rules and procedures for employment disputes, a copy of which can be found at http://www.jamsadr.com/rules-employment-arbitration/.  Claims subject to this arbitration 

 

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provision shall: (a) include, but not be limited to claims pursuant to any federal, state or local law or statute, including (without limitation) the Age Discrimination in Employment Act, as amended; Title VII of the Civil Rights Act of 1964, as amended; the Americans With Disabilities Act of 1990; the federal Fair Labor Standards Act; the California Fair Employment and Housing Act; and Claims pursuant to any common law, tort law or contract law, including (without limitation) Claims for breach of contract or other promise, discrimination, harassment, retaliation, wrongful discharge, fraud, misrepresentation, defamation and/or emotional distress; and (b) exclude Claims that by law are not subject to arbitration.  The arbitrator shall:  (1) have the authority to compel adequate discovery for the resolution of all Claims and to award such relief as would otherwise be permitted by law; and (2) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award.  The Company shall pay all JAMS fees in excess of the amount of court fees that you would be required to incur if the dispute were filed or decided in a court of law.  You and the Company acknowledge that, by agreeing to this arbitration procedure, both you and the Company waive the right to resolve any Claims through a trial by jury or judge or by administrative proceeding.  Nothing in this offer letter shall prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Judgment upon the determination or award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  

15.Liability Insurance and Indemnification Agreement.  During the term of your employment with the Company under this Agreement, you will be indemnified under applicable law for any claims that may be brought against you for acts you perform within the authorized course and scope of your employment, and under the Company’s standard Indemnification Agreement for Company officers, that shall be effective upon your execution of it. In addition, your service with the Company shall be covered under the Company’s standard directors and officers liability insurance policy covering the CEO and other senior officers of  the Company. 

16.Miscellaneous.  This Agreement, together with your Employee Invention Assignment and Confidentiality Agreement, and Indemnification Agreement, forms your complete and exclusive agreement with the Company concerning the subject matter hereof.  It supersedes any other representations or agreements made to you by any party, whether oral or written.  This Agreement cannot be changed (except with respect to those changes expressly reserved to the Company’s discretion in this Agreement) without a written agreement signed by you and a duly authorized officer of the Company.  This Agreement is governed by the laws of the state of California, without reference to conflicts of law principles.  If any provision in this Agreement is held invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect the other provisions of this Agreement, and such provision will be reformed, construed and enforced so as to render it valid and enforceable consistent with the general intent of the parties insofar as possible under applicable law.  No waiver of any right hereunder shall be effective unless it is in writing.  For purposes of construction of this Agreement, any ambiguity shall not be construed against either party as the drafter.  This Agreement may be executed in more than one counterpart, and signatures transmitted via facsimile or PDF shall be deemed equivalent to originals.

If this Agreement is acceptable to you, please sign below and return it to me, along with a signed copy of the Employee Invention Assignment and Confidentiality Agreement and the Indemnification Agreement, within one (1) week of your receipt of this Agreement.  Your signature will acknowledge that you have read, understood, and agreed to the terms and conditions of this Agreement and the Employee Invention Assignment and Confidentiality Agreement.  Should you have any questions, please do not hesitate to call me.

 

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I look forward to working with you.

Sincerely,

 

 

/s/ Faraj Aalaei

Faraj Aalaei

Chief Executive Officer

 

 

Reviewed, Understood, and Accepted:

 

/s/ Pirooz Parvarandeh1/11/2018

 

Pirooz Parvarandeh   Date

 

Exhibit A: Employee Invention Assignment and Confidentiality Agreement

 

 

 

Exhibit A

Employee Invention Assignment and Confidentiality Agreement

 

A-1Exhibit 10.1

 

	 	
         

 

         

        LICENSE AGREEMENT

         

        by and between

         

        WEIRD SCIENCE, LLC

         

        and

         

        ENOCHIAN BIOPHARMA, INC.

         

        __________

         

        [●],
2018

         

         

        

 

 
	 

  

This draft document is intended solely to facilitate discussions
amongst the parties identified herein. It is not intended to create, and will not be deemed to create, a legally binding or enforceable
offer or agreement of any type or nature prior to the duly authorized and approved execution of this document by all such parties
and the delivery of an executed copy hereof by all such parties to all other parties.

 

     

     

    

 

LICENSE AGREEMENT

 

This
License Agreement, effective as of [●], 2018 (the “Effective Date”), is made by and
between WEIRD SCIENCE LLC, a California limited liability company
(“Licensor”), and ENOCHIAN BIOPHARMA INC., a
Delaware corporation (“Licensee”).

 

Recitals

 

A.         Licensor
owns or otherwise controls patents, patent applications, know-how and other information directed
to techniques for a combinatory gene therapy to promote genetic resistance and intracellular immunity to the human immunodeficiency
virus (“HIV”) and for an in-vivo gene therapy to eliminate HIV infected T-Cells from the human body.

 

B.          Licensor
and Licensee are Parties to that certain License Agreement dated _______, 2017 (the “Original Agreement”) pursuant
to which Licensor granted to Licensee a license to the Licensor’s technology in a specific field and territory.

 

C.          Licensee
has initiated a study with syngeneic and humanized mice models (the “Study”) described more fully on
Exhibit B hereto.

 

D.          Licensor
desires to obtain and Licensee is willing to grant a nonexclusive license to use the Study results only outside of the Field (as
defined below), subject to the terms and conditions of this Agreement.

 

E.          The
Parties now desire to terminate the Original Agreement in its entirety and enter into a license agreement as set forth herein.

 

Now,
Therefore, in consideration of the foregoing premises and the mutual covenants contained herein, the receipt and sufficiency
of which are hereby acknowledged, the Parties intending to be legally bound hereby, agree as follows:

 

ARTICLE I

DEFINITIONS

 

Unless specifically set
forth to the contrary herein, the following terms shall have the respective meanings set forth below:

 

1.1         “Act” shall mean, as applicable, the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §§301
et seq., and/or the Public Health Service Act, 42 U.S.C. §§262 et seq., as such may be amended from time
to time, and equivalent laws in jurisdictions outside of the United States.

 

    	 	-1-	 

     

    

 

1.2        “Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly controls,
is controlled by or is under common control with such Person. A Person shall be deemed to control another Person if such Person
possesses the power to direct or cause the direction of the management, business and policies of such Person, whether through the
ownership of fifty percent (50%) or more of the voting securities of such Person, by contract or otherwise. Notwithstanding the
preceding, for purposes of this Agreement, Licensor and Licensee shall not be deemed Affiliates of each other.

 

1.3         “Agreement” shall mean this License Agreement, including all Schedules and Exhibits hereto, as it may be
amended, supplemented or modified from time to time in accordance with its terms.

 

1.4        “Applicable Laws” shall mean the applicable laws and regulations of any jurisdiction, which are applicable
to any of the Parties or their respective Affiliates in carrying out activities hereunder or to which any of the Parties or their
respective Affiliates in carrying out the activities hereunder is subject, and shall include all statutes, enactments, acts of
legislature, laws, ordinances, rules, regulations, notifications, guidelines, policies, directions, directives and orders of any
statutory authority, tribunal, board, or court or any central or state government or local authority or other governmental entity
in such jurisdictions.

 

1.5        “Bankruptcy Laws” shall have the meaning provided in Section 9.1.

 

1.6        “Claim” shall have the meaning provided in Section 8.1.

 

1.7        “Commercially Reasonable Efforts” shall mean, with respect to the efforts to be expended by a Party with
respect to any objective, the level of reasonable, diligent, good faith efforts that biopharmaceutical, pharmaceutical or other
life sciences companies of similar size and as a similar stage in their development as such Party typically devote to the development
and/or commercialization of products and/or therapies owned by them that are at a similar stage in their development or life cycle
and are of similar market potential taking into account efficacy, safety, approved labeling, the competitiveness of alternative
products or therapies in the marketplace, the patent and other proprietary position of the product and/or therapy, the likelihood
of regulatory approval, and other relevant factors.

 

1.8         “Competitive Infringement” shall have the meaning provided in Section 6.3.

 

1.9         “Confidential Information” shall mean any and all confidential or proprietary Information, whether communicated
in writing or orally or by any other method, which is provided by or on behalf of one Party to the other Party in connection with
this Agreement, and which is designated in writing as confidential at the time of such communication or which should, given the
facts and circumstances surrounding the communication reasonably be understood as confidential by the receiving party.

 

    	 	-2-	 

     

    

 

1.10      “Control”, “Controls” or “Controlled by” shall mean, with respect
to any Patent Rights, Information, Know-How Rights, Confidential Information, Technology or other Intellectual Property Rights,
the possession by a Person of the ability (whether by ownership, license or other right, other than pursuant to a
licenses granted under this Agreement) to disclose, grant access to, or a license or sublicense of, such Patent Rights, Know-How
Rights, Information, Technology, Confidential Information or other intellectual property rights to another Person without violating
the ownership rights of any other person or violating the terms of any agreement or other arrangement with any other Person and
without incurring any additional royalty, fee or other charge.

 

1.11       “Cover” shall mean, (a) with respect to Know-How Rights, that such Know-How Rights were used in making,
having made, using, selling, offering to sell, importing, having sold, exporting or making improvements to the product, and (b) with
respect to a Patent Right, a Valid Patent Claim would (absent a license thereunder or ownership thereof) be Infringed by making,
having made, using, selling, offering to sell, importing, having sold, exporting or making improvements to the product, in each
case, including research and development. Grammatical variations of the word “Cover” shall have correlative
meanings.

 

1.12       “Effective Date” shall have the meaning provided in the preamble.

 

1.13       “Export Control Laws” shall mean all applicable U.S. laws and regulations relating to (a) sanctions
and embargoes imposed by the Office of Foreign Assets Control of the U.S. Department of Treasury or (b) the export or re-export
of commodities, technologies, or services, including the Export Administration Act of 1979, 24 U.S.C. §§2401-2420,
the International Emergency Economic Powers Act, 50 U.S.C. §§1701-1706, the Trading with the Enemy Act, 50 U.S.C.
§§1 et seq., the Arms Export Control Act, 22 U.S.C. §§2778 and 2779, and the International Boycott
Provisions of Section 999 of the U.S. Internal Revenue Code of 1986 (as amended).

 

1.14      “FCPA” shall mean the U.S. Foreign Corrupt Practices Act (15 U.S.C. §§78dd-1, et seq.)
as amended, and corresponding laws in other jurisdictions in the Territory.

 

1.15       “FDA” shall mean the U.S. Food and Drug Administration and any successor entity thereto.

 

1.16       
“Field” shall mean the prevention, treatment, and/or amelioration of and/or therapy exclusively for HIV
in humans, and research and development exclusively relating to HIV in humans. Notwithstanding the foregoing and for the avoidance
of doubt, Field is limited to the foregoing matters solely as they relate to HIV and expressly shall not include any associcated
or related diseases or other co-morbidities related to HIV in humans.

 

1.17       
“GCP” shall mean the then current “good clinical practices” as such term is defined from time
to time by the FDA or other Regulatory Authority of competent jurisdiction pursuant to its regulations, guidelines or otherwise,
as applicable.

 

1.18       
“GLP” shall mean the then current “good laboratory practices” as such term is defined from time
to time by the FDA or other Regulatory Authority of competent jurisdiction pursuant to its regulations, guidelines or otherwise,
as applicable.

 

    	 	-3-	 

     

    

 

1.19       “GMP” shall mean the then current “good manufacturing practices” as such term is defined from
time to time by the FDA or other Regulatory Authority of competent jurisdiction pursuant to its regulations, guidelines or otherwise,
as applicable.

 

1.20       “HIV” shall have the meaning set forth in the recitals.

 

1.21       “Improvement” shall mean any improvement, development, variation, enhancement, or modification, whether
or not patented or patentable, and including trade secrets relating to the foregoing.

 

1.22       “IND” shall mean an investigational new drug application, clinical study application, clinical trial exemption,
or similar application or submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory
Authority in conformance with the requirements of such Regulatory Authority, including any such application filed with the FDA
pursuant to 21 CFR Part 312.

 

1.23       “Indemnified Party” shall have the meaning provided in Section 8.3.

 

1.24       “Indemnifying Party” shall have the meaning provided in Section 8.3.

 

1.25       “Information” shall mean any and all data, information, materials and know-how (whether patentable or not),
including, (a) ideas, discoveries, inventions, improvements, technology or trade secrets, (b) pharmaceutical, chemical
and biological materials, products, components, or compositions, (c) methods, procedures, formulas, processes, tests, assays,
techniques, regulatory requirements, business plans, marketing plans, and competitive strategies, (d) biological, chemical,
pharmacological, toxicological, pharmaceutical, physical and analytical, clinical, safety, manufacturing, process and quality control
data and information related thereto, (e) technical and non-technical data and other information related to the foregoing,
and (f) drawings, plans, designs, diagrams, sketches, specifications, invention disclosures, patent applications or other
documents containing or relating to such data, information, materials or know-how.

 

1.26       “Infringe” or “Infringement” means any infringement as determined by Applicable Law,
including, without limitation, direct infringement, contributory infringement or any inducement to infringe.

 

1.27       “Intellectual Property Rights” shall mean, collectively, Patent Rights, Know-How Rights, and any
other intellectual property rights.

 

1.28       “Invention” shall mean any invention, whether or not patented or patentable.

 

1.29       “Know-How Rights” shall mean all trade secret and other know-how rights (whether at law, in equity or otherwise)
including, but not limited to, rights in Confidential Information.

 

    	 	-4-	 

     

    

 

1.30        “Licensee” shall have the meaning provided in the Preamble.

 

1.31        “Licensee Improvement” shall mean an Improvement to the Licensor Technology that is first conceived and
actually reduced to practice by or on behalf of Licensee during the Term.

 

1.32        “Licensee Indemnitees” shall have the meaning provided in Section 8.2.

 

1.33        “Licensee IP Rights” shall mean the Licensee Patent Rights, Licensee Know-How Rights, and any other Intellectual
Property Rights in or to the Licensee Technology. Licensee IP Rights includes all Intellectual Property Rights in or to the Study
Results, except the Study Results Patents.

 

1.34        “Licensee Know-How Rights” shall mean all Know-How Rights in and to the Licensee Technology.

 

1.35        “Licensee Patent Rights” shall mean all Patent Rights of Licensee that claim or Cover the Licensee Technology.

 

1.36        “Licensee Technology” shall mean all Technology that (a) relates to the Field and is owned by
Licensee or its Affiliates immediately prior to the Effective Date, or (b) is conceived, created, generated, made, derived,
developed, reduced to practice or acquired by or on behalf of Licensee or its Affiliates (except by Licensor), solely or jointly
with any other Person (except with Licensor). Licensee Technology shall include the Study Results.

 

1.37        “Licensor” shall have the meaning provided in the Preamble.

 

1.38        “Licensor Indemnitees” shall have the meaning provided in Section 8.1.

 

1.39        “Licensor
IP Rights” shall mean Licensor Patent Rights,
Licensor Know-How Rights, and any other Intellectual Property Rights in or to the Licensor Technology. 

 

1.40        “Licensor
Know-How Rights” shall mean all Know-How Rights in and to the Licensor Technology. Notwithstanding the foregoing and
for the avoidance of doubt, (i) the license of Know-How Rights hereunder shall be limited solely and exclusively in the Field
and (ii) Licensor shall at all times retain the right to use, practice and exploit the Licensor Know- How Rights outside of the
Field.

 

1.41        “Licensor
Patent Rights” shall mean any and all current and future Patent Rights that claim or Cover the Licensor Technology,
including, but not limited to the Patent Rights set forth on Exhibit A. Licensor Patent Rights further include the
Study Results Patents.

 

1.42        “Licensor Technology” shall mean all Technology that relates to the Field that is (i) owned
by Licensor immediately prior to the Effective Date or (ii) conceived, created, generated, made, derived, developed, reduced
to practice or acquired by or on behalf of Licensor, solely or jointly with any other Person (excluding Licensee).

 

    	 	-5-	 

     

    

 

1.43        “Losses” shall have the meaning provided in Section 8.1.

 

1.44        “Marketing Approval” shall mean all approvals from the relevant Regulatory Authority necessary to market
and sell a pharmaceutical product in the Territory, including pricing and reimbursement approvals if required for marketing or
sale of such product in the Territory.

 

1.45        “NDA” shall mean: in the United States, a New Drug Application (as more fully defined in 21 CFR 314.5,
et seq.) or if applicable a Biologics License Application (“BLA”) (as more fully defined in 21 CFR 600,
et seq.) filed with the FDA or any successor application thereto, and in any other country or jurisdiction, the equivalent
application or submission of approval to market a pharmaceutical product filed with the governing Regulatory Authority in such
country or jurisdiction.

 

1.46        “Party” shall mean Licensee and Licensor, individually, and “Parties” shall mean Licensee and
Licensor, collectively.

 

1.47        “Patent Certification” shall have the meaning provided in Section 6.3.

 

1.48        “Patent Rights” shall mean (i) patents and patent applications (which for the purposes of this Agreement
shall be deemed to include certificates of invention and applications for certificates of invention); (ii) any and all divisionals,
continuations, continuations-in-part, reissues, renewals, substitutions, registrations, re-examinations, revalidations, patent
term extensions, supplementary protection certificates, results of inter parties, post-grant, or covered business method patent
reviews and derivation proceedings, and the like of any such patents and patent applications; and (iii) any and all foreign
equivalents of the foregoing throughout the world.

 

1.49        “Person” means any individual, partnership, joint venture, limited liability company, corporation, firm,
trust, association, unincorporated organization, governmental authority or agency, or any other entity not specifically listed
herein.

 

1.50        “Product” shall mean any product or process for use in the Field that is Covered by the Licensor IP Rights,
or that practices the Licensor Technology.

 

1.51        “Regulatory Authority” shall mean any country, federal, regional, supranational, state or local regulatory
agency, department, bureau or other governmental or regulatory authority having the administrative authority to regulate the development
or marketing of pharmaceutical products in any country or other jurisdiction, including, without limitation, the FDA.

 

    	 	-6-	 

     

    

 

1.52       “Regulatory Documentation” shall mean all regulatory applications, registrations, licenses, authorizations
and approvals (including all INDs, NDAs, BLAs and Marketing Approvals), all correspondence submitted to or received from Regulatory
Authorities (including minutes and official contact reports relating to any communications with any Regulatory Authority), and
all reports and documentation in connection with clinical studies and tests (including study reports and study protocols, and copies
of all interim study analyses), and all data contained in any of the foregoing, including all INDs, NDAs, advertising and promotion
documents, manufacturing data, drug master files, clinical data, adverse event files and complaint files, in each case related
to a Product.

 

1.53       “Related Party” shall mean each of Licensee’s Affiliates and its and their respective Sublicensees
hereunder.

 

1.54       “Relevant Patent Rights” shall have the meaning provided in Section 6.3(a)(i).

 

1.55       “Sale
Transaction” shall have the meaning provided in Section 9.5(a)(ii).

 

1.56       “Study” shall have the meaning set forth in the Recitals.

 

1.57       “Study Results” shall mean all results, data, records, work product, laboratory notes and copies
thereof resulting from the Study, together with all Technology resulting from the review, evaluation or use of the foregoing by
or on behalf of Licensee.

 

1.58       “Study Results Patents” shall have the meaning provided in Section 2.4.

 

1.59       “Sublicensee”
shall mean a Third Party sublicensee under the license granted by Licensor to Licensee pursuant to Section 2.1, whether
such Third Party’s sublicense was granted to it directly by Licensee or its Affiliate or indirectly through one or more
tiers of sublicense.

 

1.60       “Technology” shall mean all discoveries, inventions (whether or not protectable under patent laws),
designs, developments, works of authorship, data, information, methods of manufacture or use, know-how, procedures, protocols,
techniques, results of experimentation and testing, and other technology.

 

1.61       “Term” shall have the meaning provided in Section 7.1.

 

1.62       
“Territory” shall mean worldwide.

 

1.63       “Third Party” shall mean an entity other than Licensee and its Affiliates, and Licensor and its Affiliates.

 

1.64       “Third Party Acquirer” shall have the meaning provided in Section 9.5(a)(ii).

 

    	 	-7-	 

     

    

 

1.65       “Valid Patent Claim” shall mean a claim of an issued and unexpired patent included within the Licensor Patent
Rights, which claim has not been revoked or held unenforceable or invalid by a decision of a court or other governmental agency
of competent jurisdiction (which decision is not appealable or has not been appealed within the time allowed for appeal), and which
claim has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer
or otherwise.

 

ARTICLE II

LICENSE GRANT; STUDY RESULTS

 

2.1          License Grant from Licensor. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee
a perpetual, fully paid up, royalty free, sublicensable (including, but not limited to, through multiple tiers of sublicensees),
exclusive (even as to Licensor), license under the Licensor IP Rights to research, develop, use, sell, have sold, make, have made,
offer for sale, import and otherwise commercialize Products and to otherwise use and practice the Licensor Technology solely in
the Field in the Territory. Licensor hereby agrees that it shall not and shall not grant others the right to develop, use, sell,
have sold, make, have made, offer for sale, import or otherwise commercialize the Products in the Field in the Territory. Licensee
shall not exploit the Licensor IP Rights except as expressly set forth herein. For the avoidance of doubt, nothing herein shall
preclude Licensor from exploiting the Licensor IP Rights outside of the Field.

 

2.2          License Grant from Licensee. Licensee hereby grants to Licensor a nonexclusive, royalty-free, sub-licensable (including,
but not limited to, through multiple tiers of sublicenses) license under the Licensee Technology to develop, use sell, have sold,
make, have made, offer for sale, import and otherwise commercialize products outside the Field throughout the Territory. Licensor
shall obtain Licensee’s written approval before granting any sublicense to any third party, and such approval shall not be
unreasonably withheld, delayed or conditioned by Licensee. Licensor shall not exploit the Licensee Technology except as expressly
set forth herein.

 

2.3          Sublicensing. Each sublicense hereunder shall be subject to the terms and conditions of this Agreement applicable to
the licensed party. The licensed party shall ensure each sublicensee’s compliance with all terms and conditions of this Agreement
applicable to the licensed party and shall be liable for any and all breaches by such sublicensee thereof.

 

2.4         Study Results.

 

(a)           
Licensee hereby grants to Licensor a nonexclusive, royalty-free, right and license to use the Study Results (including
the right to reference the Study Results in any filing with Regulatory Authorities) for research and development outside the Field
and, at Licensor’s expense to prosecute any patents for Technology invented by Licensor and its Affiliates related to
or resulting from the Study Results (the “Study Results Patents”) both inside and outside the Field which Study Results
Patents and all Intellectual Property Rights in those Patent Rights shall be, and hereby are, owned by Licensor. For the avoidance
of doubt, Study Results Patents, if issued, are licensed to Licensee in the Field pursuant to Section 2.1 of this Agreement.

 

    	 	-8-	 

     

    

 

(b)          
Upon Licensor’s request and as soon as practicable following completion of the Study, Licensee shall provide Licensor
a copy of the Study Results and all Technology related to the Study Results. Licensor shall have the right to prosecute or apply
for Study Results Patents, and Licensee shall execute, acknowledge and deliver such further documents and instruments and perform
all such other acts as may be necessary or appropriate in order to effectuate this Section 2.4.

 

2.5          
Effectiveness. The provisions of this Agreement, including the license grants and assignments in this Article II, shall
become effective on the Effective Date.

 

2.6          
No Implied Licenses. Only those licenses expressly granted in this Agreement have effect. No license or other intellectual
property interest is granted by implication or any method that is not expressly provided for herein. In addition, Licensor shall
be deemed to retain such rights to the Licensor Technology which have not been otherwise expressly granted to the Licensee and
Licensee shall retain all rights to the Licensee Technology which have not otherwise been expressly licensed to the Licensor in
this Agreement.

 

2.7          
Effect Upon Original Agreement. Licensor and Licensee agree that the Original Agreement is hereby terminated in its
entirety, and that all of the rights and obligations conferred thereunder are terminated as of the Effective Date of this Agreement,
except for those rights and obligations of the parties thereto which are expressly stated to survive termination of the Original
Agreement.

 

ARTICLE III

DEVELOPMENT, MANUFACTURING AND COMMERCIALIZATION

 

3.1          
Responsibility. Licensee (itself and/or, at its sole discretion, with or through its Related Parties) shall be responsible,
at its own expense, for development (including pre-clinical and clinical development), registration and commercialization (including
marketing, promoting, selling, distributing and determining pricing for) Products in the Field in the Territory. Licensee (itself
and/or, at its sole discretion, with or through its Related Parties) shall be responsible for preparing and submitting all required
regulatory filings in connection with obtaining and maintaining Regulatory Documentation and Marketing Approvals with respect to
Products in the Field in the Territory. Licensee shall provide any Regulatory Documentation that includes any Licensor Confidential
Information to be filed with a Regulatory Authority for review by Licensor at least sixty (60) days prior to the required submission
date. Licensor shall use its reasonable efforts in good faith to cooperate with Licensee to obtain any clearances or approvals
needed from Regulatory Authorities to develop, test, market, produce and sell the Products. Licensee shall consider any comments
made by Licensor to the Regulatory Documentation in good faith and shall not unreasonably disregard any such comments.

 

    	 	-9-	 

     

    

 

3.2          
Diligence. Licensee (itself and/or with or through its Related Parties) shall use Commercially Reasonable Efforts to
(a) develop, seek Marketing Approval for, and commercialize Products; (b) develop, prepare and maintain the Regulatory
Documentation; (c) prepare and develop the manufacturing process for the Products; in each case during the Term.

 

3.3          
Manufacturing. Licensee shall be responsible for manufacturing or having manufactured Products for development and commercialization
in the Field in the Territory.

 

3.4          
Compliance with Applicable Laws. Licensee shall conduct, and shall cause its Related Parties to conduct, all development,
regulatory, manufacturing and commercialization activities with respect to Products anywhere in the world in compliance with all
Applicable Laws and, as applicable, GLP, GCP and/or GMP.

  

ARTICLE IV

CONFIDENTIALITY AND PUBLICATION

 

4.1          
Confidential Information. Except to the extent expressly authorized by this Agreement, each Party (in such capacity,
the “Receiving Party”) agrees that, during the Term and for two (2) years thereafter, it shall keep confidential
and shall not publish or otherwise disclose to any Third Party, and shall not use for any purpose other than as expressly provided
for in this Agreement (including to exercise its rights or perform its obligations under this Agreement) or any other written agreement
between the Parties, any Confidential Information furnished or made available to it by or on behalf of the other Party (in such
capacity, the “Disclosing Party”). The Receiving Party shall use at least the same standard of care as
it uses to protect proprietary or confidential information of its own (but in no event less than reasonable care) to ensure that
it, and its and its Affiliates’, employees, agents, consultants and other representatives do not disclose or make any unauthorized
use of the Confidential Information. The Receiving Party shall promptly notify the Disclosing Party upon discovery of any unauthorized
use or disclosure of the Disclosing Party’s Confidential Information.

 

4.2          
Exceptions. Confidential Information shall not include any information which the Receiving Party can prove by competent
evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally
known or available; (b) is known by the Receiving Party and/or any of its Affiliates at the time of receiving such information,
as evidenced by its records; (c) is hereafter furnished to the Receiving Party and/or any of its Affiliates by a Third Party,
as a matter of right and without restriction on disclosure; or (d) is independently discovered or developed by the Receiving
Party and/or any of its Affiliates, without the use of Confidential Information of the Disclosing Party. Any combination of features
or disclosures shall not be deemed to fall within the exclusions set forth in the preceding clauses (a) and (b) merely because
individual features are published or available to the general public or in the rightful possession of the Receiving Party unless
the combination itself and principle of operation are published or available to the general public or in the rightful possession
of the Receiving Party.

 

    	 	-10-	 

     

    

 

4.3        
Authorized Disclosure. Notwithstanding the provisions of Section 4.1, the Receiving Party may disclose Confidential
Information of the Disclosing Party as expressly permitted by this Agreement, or if and to the extent such disclosure is reasonably
necessary in the following instances:

 

(a)           
filing or prosecuting Patent Rights as permitted by this Agreement and with the Disclosing Party’s prior express
written approval;

 

(b)          
enforcing the Receiving Party’s rights under this Agreement (including registering the licenses granted hereunder
with applicable authorities) and in performing its obligations under this Agreement.

 

(c)           
prosecuting or defending litigation as permitted by this Agreement;

 

(d)          
complying with applicable court orders, applicable laws, rules or regulations, or the listing rules of any exchange
on which the Receiving Party’s securities are traded;

 

(e)           
disclosure to Affiliates, actual and potential licensees and sublicensees, employees, consultants or agents of the Receiving
Party who have a need to know such information in order for the Receiving Party to exercise its rights or fulfill its obligations
under this Agreement, provided, in each case, that any such Affiliate, actual or potential licensee or sublicensee, employee, consultant
or agent agrees to be bound by terms of confidentiality and non-use no less restrictive than those set forth in this Article IV;
and

 

(f)            
disclosure to Third Parties in connection with due diligence or similar investigations by such Third Parties, and disclosure
to potential Third Party investors or acquirers in confidential financing documents, provided, in each case, that any such Third
Party agrees to be bound by reasonable obligations of confidentiality and non-use.

 

Notwithstanding the foregoing,
in the event the Receiving Party is required to make a disclosure of the Disclosing Party’s Confidential Information pursuant
to Section 4.3(c) or 4.3(d) or 4.3(e), it will, except where impracticable, give reasonable advance notice to the Disclosing
Party of such disclosure and use efforts to secure confidential treatment of such information at least as diligent as the Receiving
Party would use to protect its own confidential information, but in no event less than reasonable efforts. In any event, the Receiving
Party agrees to take all reasonable action to avoid disclosure of Confidential Information hereunder.

 

    	 	-11-	 

     

    

 

4.4          
Licensee Publications. Licensee and its Affiliates shall have the right to publish the results of their development
activities, including clinical trials, with respect to the Products in the Field. Licensor shall have the right to review and comment
on any material proposed for disclosure or publication by Licensee or its Affiliate, such as by oral presentation, manuscript or
abstract that includes Confidential Information of Licensor and Licensor’s comments shall not be unreasonably rejected. Before
any such material is submitted for publication or disclosure (other than oral presentation materials and abstracts, which are addressed
below), Licensee shall deliver a complete copy to Licensor at least 60 days prior to submitting the material to a publisher
or initiating such other disclosure, and Licensor shall review any such material and give its comments to Licensee within 30 days
of the delivery of such material to Licensor which comments shall be considered by Licensee in good faith. With respect to oral
presentation materials and abstracts, Licensee shall deliver a complete copy to Licensor at least 20 business days prior to
the anticipated date of the presentation, and Licensor shall make reasonable efforts to expedite review of such materials and abstracts,
and shall return such items as soon as practicable to Licensee with appropriate comments, if any, but in no event later than 7 business
days from the date of delivery to Licensor which comments shall be considered by Licensee in good faith. Licensee shall comply,
or cause its Affiliate to comply (as applicable), with Licensor’s requests to delete references to Licensor’s Confidential
Information in any such material and, if applicable, agrees to delay any submission for publication or other public disclosure
for a period of up to an additional 60 days for the purpose of preparing and filing appropriate patent applications.

 

4.5          
Licensor Publications. Licensor and its Affiliates shall have the right to publish the results of their development
activities, including clinical trials, with respect to the Products outside the Field. Licensee shall have the right to review
and comment on any material proposed for disclosure or publication by Licensor or its Affiliates, such as by oral presentation,
manuscript or abstract that includes Confidential Information of Licensee and Licensee’s comments shall not be unreasonably
rejected. Before any such material is submitted for publication or disclosure (other than oral presentation materials and abstracts,
which are addressed below), Licensor shall deliver a complete copy to Licensee at least 60 days prior to submitting the material
to a publisher or initiating such other disclosure, and Licensee shall review any such material and give its comments to Licensor
within 30 days of the delivery of such material to Licensee which comments shall be considered by Licensor in good faith. With
respect to oral presentation materials and abstracts, Licensor shall deliver a complete copy to Licensee at least 20 business days
prior to the anticipated date of the presentation, and Licensee shall make reasonable efforts to expedite review of such materials
and abstracts, and shall return such items as soon as practicable to Licensor with appropriate comments, if any, but in no event
later than 7 business days from the date of delivery to Licensee which comments shall be considered by Licensor in good faith.
Licensor shall comply, or cause its Affiliates to comply (as applicable), with Licensee’s requests to delete references to
Licensee’s Confidential Information in any such material and, if applicable, agrees to delay any submission for publication
or other public disclosure for a period of up to an additional 60 days for the purpose of preparing and filing appropriate patent
applications.

 

    	 	-12-	 

     

    

 

4.6          
Publicity; Press Releases. The Parties shall jointly issue a press release acceptable to each Party concerning this
Agreement at an agreed upon time. Neither Party shall make any other public announcement concerning this Agreement or the subject
matter hereof without the prior written consent of the other, which shall not be unreasonably withheld or delayed; provided that
each Party may make any public statement in response to questions by the press, analysts, investors or those attending industry
conferences or financial analyst calls, respond to queries by any exchange on which such Party’s securities are traded, or
issue press releases, so long as any such public statement, response, or press release is not inconsistent with prior public disclosures
or public statements made in accordance with this Section 4.6 and which do not reveal Confidential Information about the other
Party. In the event of a required public announcement, to the extent practicable under the circumstances, the Party making such
announcement shall use reasonable efforts to provide the other Party with a copy of the proposed text of such announcement sufficiently
in advance of the scheduled release to afford such other Party a reasonable opportunity to review and comment upon the proposed
text, unless the proposed text is substantially the same as that used in any prior public disclosure, press release or public statement
made in accordance with this Section 4.6.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS

 

5.1         Mutual Representations and Warranties. Each Party represents and warrants to the other that, as of the Effective Date:
(a) it is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full
corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof; (b) it is duly
authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing
this Agreement on its behalf has been duly authorized to do so by all requisite corporate or partnership action; (c) this
Agreement is legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument
or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation
of any court, governmental body or administrative or other agency having jurisdiction over it; and (d) neither it nor any of its
Affiliates is debarred or disqualified under the Act or comparable Applicable Laws outside of the United States;

 

5.2        
Licensor Representations and Warranties. Licensor represents and warrants to Licensee that:

 

(a)           
Exhibit A attached hereto contains a true and complete list of the Licensor Patent Rights existing on the Effective
Date. The Licensor Patent Rights listed in Exhibit A include all of the Patent Rights Controlled by Licensor as of
the Effective Date that relate to the Field;

 

    	 	-13-	 

     

    

 

(b)          
Licensor is the owner of all Licensor Patent Rights listed in Exhibit A and, to Licensor’s knowledge
as of the Effective Date, Serhat Gumrukcu is the sole inventor of all Licensor IP Rights and Licensor Technology being licensed
hereunder and did not acquire or derive any portion of the Licensor IP Rights or Licensor Technology being licensed hereunder from
any other Person (in a manner that would result in an ownership interest in the Licensor IP Rights or Licensor Technology vesting
in any such other Person or would negatively affect the validity of any Licensor IP Rights), and that, to Licensor’s knowledge
as of the Effective Date, all claims in all Licensor Patent Rights are not unpatentable or unenforceable.

 

(c)           
Licensor (i) is, as of the Effective Date, the sole and exclusive owner of all right, title and interest in and
to the Licensor IP Rights and has the right to grant the licenses that it purports to grant in Section 2.1 (including, without
limitation, that Licensor has not entered into any undertaking that limits, nor is subjected to any constraints that limit, its
rights or freedom to grant the licenses) without any lien, security, encumbrance or third party rights or obligations; and (ii) has
not granted and will not grant to any Third Party any license or other right with respect to Licensor IP Rights that conflicts
with or limits in any way the licenses and rights granted to Licensee in this Agreement;

 

(d)          
the manufacture, use, sale, offer for sale or import of any Licensor Technology does not, to Licensor’s knowledge
as of the Effective Date, Infringe any patent, trade secret, or any other intellectual property or proprietary right of any Third
Party, and Licensor has not received written, oral or other notice from any Third Party claiming that the manufacture, use, sale,
testing, offer for sale or import of any Product to the extent practicing Licensor Technology Infringes or would Infringe the patent
or other intellectual property rights of any Third Party, nor to Licensor’s knowledge is there any reasonable basis for such
a claim;

 

(e)           
there are no claims, judgments or settlements against or owed by Licensor (or any of its Affiliates) with respect to
the Licensor IP Rights, and Licensor is not a party to any legal action, suit or proceeding relating to the Licensor IP Rights,
nor has Licensor received any written, oral or other communication from any Third Party, including, without limitation, any Regulatory
Authority or other government agency, threatening such action, suit or proceeding or any other claim or proceeding alleging the
unpatentability or unenforceability of any Licensor Patent Rights and to Licensor’s knowledge there is no prior art or other
information that would materially and adversely affect the validity, enforceability, scope or patentability of the Licensor Patent
Rights; in each case, as of the Effective Date;

 

(f)            
the grant of the licenses and rights granted by Licensor, and its performance of its obligations under this Agreement,
do not require the consent, approval, or authorization of any Regulatory Authority or Third Party or require or incur any payment
or any consideration to any Third Party.

 

    	 	-14-	 

     

    

 

5.3        
Mutual Covenants. In addition to any covenants made by a Party elsewhere in this Agreement, each Party hereby covenants
to the other as follows:

 

(a)           
neither such Party nor any of its Affiliates will employ or use the services of any Person who is debarred under United
States law, including 21 U.S.C. §335a, or any foreign equivalent thereof, in connection with activities relating to any Product;
and in the event that such Party becomes aware of the debarment of any Person providing services to such Party or any of its Affiliates
with respect to any activities relating to any Product, such Party will immediately notify the other Party in writing and such
Party will cease, or cause its Affiliate to cease (as applicable), employing, contracting with, or retaining any such Person to
perform any services relating to any Product;

 

(b)          
neither such Party nor any of its Affiliates will, in connection with the exercise of its rights or performance of its
obligations under this Agreement, directly or indirectly through Third Parties, pay, promise or offer to pay, or authorize the
payment of, any money or give any promise or offer to give, or authorize the giving of anything of value to a public official or
entity or other Person for purpose of obtaining or retaining business for or with, or directing business to, any Person, including
such Party and its Affiliates, nor will such Party or any of its Affiliates directly or indirectly promise, offer or provide any
corrupt payment, gratuity, emolument, bribe, kickback, illicit gift or hospitality or other illegal or unethical benefit to a public
official or entity or any other Person in connection with the exercise of such Party’s rights or performance of such Party’s
obligations under this Agreement; and

 

(c)           
neither such Party nor any of its Affiliates (or any of their respective employees and contractors), in connection with
the exercise of such Party’s rights or performance of such Party’s obligations under this Agreement, shall cause the
other Party to be in violation of the FCPA or Export Control Laws.

 

5.4          
Performance by Affiliates, Sublicensees and Subcontractors. The Parties recognize that each Party may perform some or
all of its obligations or exercise some or all of its rights under this Agreement through one or more Affiliates, subcontractors,
or Sublicensees (to the extent permitted under the terms of this Agreement); provided, in each case, that each such
Affiliate, subcontractor or Sublicensee undertakes in writing obligations of confidentiality and non-use regarding Confidential
Information and ownership of Inventions which are substantially the same as those undertaken by the Parties pursuant to Article
IV and Article VI; and provided, further, that such Party shall at all times be fully responsible for the performance and
payment of such Affiliate, subcontractor or Sublicensee.

 

5.5          Limitation of Liability. EXCEPT IN THE CASE OF FRAUD, GROSS NEGLIGENCE, INTENTIONAL MISCONDUCT, OR BREACH OF CONFIDENTIALITY,
NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION
WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER; provided, however, that this Section 5.5 shall not be construed
to limit either Party’s indemnification obligations under Article 8.

 

    	 	-15-	 

     

    

 

ARTICLE VI

INTELLECTUAL PROPERTY

 

6.1          (a)Ownership1.
As between the Parties, and subject to the licenses granted by Licensor in this Agreement, Licensor is and shall at all times be
the sole and exclusive owner of all right, title and interest in and to the Licensor Technology and Licensor IP Rights, and Licensee
is and shall at all times be the sole and exclusive owner of all right, title and interest in and to the Licensee Technology and
Licensee IP Rights, subject to the licenses granted in this Agreement. Licensee hereby assigns to Licensor any and all of its rights,
title and interest in and to the Licensor Technology and Licensor IP Rights. Licensor hereby assigns to Licensee any and all of
its rights, title and interest in and to the Licensee Technology and Licensee IP Rights. A Party shall have and retain all right,
title and interest in any Invention made solely by one or more employees, agents or contractors of such Party and or its Affiliates
or other Persons acting under its authority. Each Party shall be liable with respect to its own employees for compliance with any
applicable legislation and its own policies concerning employee inventions, including payment of employee invention awards (if
any). Each Party shall execute, acknowledge and deliver such further documents and instruments and perform all such other acts
as may be necessary or appropriate in order to effectuate this Section 6.1(a).

 

(b)          IP
Committee. The Parties agree to form an IP Committee (the “IPC”) within sixty (60) days from the Effective Date
consisting of one (1) representative from each of Licensor and Licensee and (1) representative with expertise in intellectual property
matters mutually agreed upon by the Parties which Independent Member shall serve until either (i) his resignation from the IPC
or (ii) if he is removed by unanimous vote of the other members of the IPC. Each Party may replace its IPC representative with
another representative of such Party at any time upon prior written notice to the other Party. The IPC shall meet with such frequency
as determined by the Parties as reasonably necessary for the IPC’s performance of its obligations hereunder but not less
frequently than once per calendar quarter. Meetings can be held either in person or telephonically or as otherwise agreed to by
the Parties. All meetings of the IPC shall be chaired by a Chairperson who is elected or reelected annually from among and by a
majority vote of the members of the IPC. The IPC shall have the authority and responsibility to make, and the Parties hereby agree
to abide by, all decisions relating to (i) the preparation, filing, prosecution, maintenance and enforcement of all Licensor IP
Rights relating to the Field, as well as the selection of counsel to implement such decisions, and the relative portions of the
costs thereof to be paid by each Party, (ii) whether Licensor Technology is primarily directed to the Field and (iii) whether any
of the Licensor Technology which is primarily directed to the Field should be assigned by Licensor to Licensee subsequent to the
Effective Date . The IPC shall endeavor to decide all matters by consensus with each Party having one vote. If the Parties fail
to reach consensus with respect to any matter over which the IPC has authority and responsibility then the decision shall be made
by a majority of the members of the IPC; provided however that in no event shall the IPC decide a matter in a manner that is contrary
to the express terms of this Agreement.

 

 

 

    	 	-16-	 

     

    

 

6.2        
Patent Prosecution and Maintenance. 

 

(a)           Licensor Patent Rights.2
Subject to Section 6.1(b) and this Section 6.2(a) , Licensor shall: (i) prepare, file, prosecute and maintain the Licensor
Patent Rights; (ii) subject to Section 6.1(b) and Section 6.2(e) below, pay all fees and expenses in connection with Section 6(a)(i);
(iii) keep Licensee reasonably informed of the filing and status of the prosecution of the Licensor Patent Rights and the issuance
of any Patent Rights thereon; and (iv) give Licensee written notice of any additions, deletions, or changes in the status of the
Licensor Patent Rights. If required by Applicable Law, for the enforceability of the Licensor Patent Rights, Licensor will record
this Agreement or another document or instrument evidencing Licensee’s rights herein, as required, at Licensor’s expense.
In the event that the IPC desires to abandon or cease prosecution or maintenance of any Licensor Patent Rights in the Territory,
the IPC shall provide written notice to Licensee of such intention to abandon no later than sixty (60) days prior to the next
deadline for any action that must be taken with respect to such Licensor Patent Rights in the relevant patent office. In such case,
upon receipt of a written request by Licensee or its Affiliate to assume responsibility for prosecution and maintenance of such
Licensor Patent Rights, Licensor shall allow Licensee or its Affiliate at its sole cost and expense and by counsel of its own choice
to assume such responsibility, and Licensor hereby assigns and will assign to Licensee or its Affiliate all such Licensor Patent
Rights for which Licensee or its Affiliate assumes responsibility.

 

(b)          
Other Patent Rights. Licensee may suggest specific claim scope and countries in which it believes patent protection
may be of value in view of its marketing or business strategy for Products. If Licensee wishes Licensor to pursue patent protection
for any Licensor Patent Rights in a county or region in which the Licensor elects not to file, Licensee may suggest that Licensor
pursue such patent protection at Licensee’s expense, which will include all prosecution costs and maintenance fees. Notwithstanding
anything in this Agreement to the contrary, as to any Licensor Patent Rights which the Licensor elects not to pursue, file, continue
prosecuting or maintaining, but which Licensee chooses to have Licensor pursue, file, continue prosecuting or maintaining and for
which Licensee pays the preparation, prosecution or maintenance fees, Licensee will have the authority to control the preparation,
prosecution or maintenance thereof, and Licensor hereby assigns and will assign to Licensee all rights, title and interest in and
to any such Licensor Patent Rights.

 

 

 

    	 	-17-	 

     

    

 

(c)           
Licensee Patent Rights. Licensee shall have the sole right, but not the obligation, to control the preparation, filing,
prosecution, maintenance and enforcement of Licensee Patent Rights, Licensee Know-How Rights, and any IP rights transferred to
Licensee following the Effective Date (“Transferred Patent Rights”) at its discretion and by counsel of its choice.

 

(d)          
Cooperation of the Parties. Each Party agrees to cooperate fully with each other and the IPC in the preparation, filing,
prosecution and maintenance of Licensor Patent Rights under this Agreement and in the obtaining and maintenance of any patent term
extensions, supplementary protection certificates and the like with respect to any Licensor Patent Rights as well as in registering
the licenses granted hereunder with the applicable authorities. Such cooperation includes, but is not limited to: (i) executing
all papers and instruments, or requiring its employees or contractors to execute such papers and instruments, so as to enable the
other Party to apply for and to prosecute patent applications in any country in accordance with the foregoing provisions of this
Section 6.2(d); and (ii) promptly informing the other Party of any matters coming to such Party’s attention that may
affect the preparation, filing, prosecution or maintenance of any such patent applications.

 

(e)           Expenses. Licensee shall be obligated to reimburse Licensor (or at the direction of Licensor, its counsel) for the out-of-pocket
costs related to the preparation, filing, prosecution and maintenance of Licensor Patent Rights in the Field as assessed and determined
by the IPC including any costs and expenses (including attorneys fees) incurred prior to the Effective Date which as of the Effective
Date approximate $________. Such reimbursement shall be made promptly (and in any event within 30 days) following the submission
by Licensor of invoices, together with relevant supporting documentation, for such costs and a determination by the IPC.

 

6.3          Enforcement and Defense of Patent Rights. Each Party shall notify the other Party in writing within 10 business
days (except as expressly set forth below) of becoming aware of any actual, alleged or threatened infringement by a Third Party
of any of the Licensor Patent Rights or Licensee Patent Rights or Transferred Patent Rights (“Infringement”),
including (x) any such alleged or threatened Infringement on account of a Third Party’s manufacture, use or sale of
a Product in the Field, (y) any certification filed in the United States under 21 U.S.C. §355(b)(2) or 21 U.S.C.
§355(j)(2) or similar provisions in other jurisdictions in connection with an ANDA (an Abbreviated New Drug Application in
the United States or a comparable application for Marketing Approval under Applicable Law in any country other than the United
States) or other NDA for a Product in the Field (a “Patent Certification”), and (z) any declaratory
judgment action filed by a Third Party that is developing, manufacturing or commercializing a Product in the Field alleging the
invalidity, unenforceability or non-infringement of any of the Licensor Patent Rights or Licensee Patent Rights or Transferred
Patent Rights ((x)-(z), collectively, “Competitive Infringement”); provided, however, that each
Party shall notify the other Party of any Patent Certification regarding any Licensor Patent Right that it receives, and such Party
shall provide the other Party with a copy of such Patent Certification, within five (5) days of receipt. In addition, Licensor
shall notify Licensee within ten (10) Business days of becoming aware of any actual, alleged or threatened Infringement by a Third
Party of any Licensor Patent Rights in the Territory in the Field.

 

    	 	-18-	 

     

    

 

(a)          Competitive Infringement. 

 

(i)            
Unless otherwise determined by the IPC, Licensee shall have the first right, but not the obligation, to bring or defend
and control any action or proceeding with respect to Competitive Infringement (including to defend any declaratory judgment action
or claim) of a Licensor Patent Right that covers a Product (collectively, the “Relevant Patent Rights”),
at Licensee’s own expense and by counsel of its own choice. Licensor will join as a party to any such suit or action as necessary.
Notwithstanding the preceding, to the extent strategic or other decisions or actions with respect to any such proceeding are reasonably
likely to have a potential impact on Licensor Patent Rights which are not Relevant Patent Rights, Licensee shall consult with the
IPC prior to making any such decision or taking any such action and no such decision shall be made or action taken without the
approval and under the control of the IPC Licensee shall be entitled to retain any compensatory damages recovered from any action
related to Competitive Infringement brought by Licensee, and the remainder of any amounts recovered will be split equally between
Licensor and Licensee as determined by the IPC.

 

(ii)          
If Licensee fails to bring any such action or proceeding with respect to Competitive Infringement of any Relevant Patent
Right within ninety (90) days (or such shorter period of time as may be reasonably required to avoid the loss or impairment
of any legal rights with respect to such Competitive Infringement) following the notice of alleged Competitive Infringement, Licensor
shall have the right to bring (or defend) and control any such action at its own expense and by counsel of its own choice, and
Licensee shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. Licensor
shall be entitled to retain any amounts for its expenses recovered from any action brought by Licensor pursuant to this Section 6.3(a)(ii),
and the remainder of any amounts recovered will be split between Licensor and Licensee as determined by the IPC.

 

(b)         Other Infringement. The Licensor shall have the right to bring, maintain or settle any action or proceeding to stop
Infringement with respect to any Licensor Patent Right outside the Field at the control of the Licensor and at the Licensor’s
expense and with counsel selected by the Licensor.

 

(c)          Cooperation. In the event a Party brings (or defends) an Infringement action in accordance with this Section 6.3,
or in the event a Party is entitled to bring (or defend) an Infringement action in accordance with this Section 6.3 but lacks
standing to do so, the other Party shall cooperate fully, including, if required to bring (or defend) such action, the furnishing
of a power of attorney or being named as a party. Neither Party shall enter into any settlement or compromise of any action under
this Section 6.3 which would in any manner alter, diminish, or be in derogation of the other Party’s rights under this
Agreement without the prior written consent of the IPC.

 

    	 	-19-	 

     

    

 

6.4        
Patent Term Extensions

 

(a)           
Licensor Patent Rights. At the discretion of the IPC, Licensor shall file for extensions of the Licensor Patent Rights
in each country and region, at the Parties’ respective cost and expense as directed by the IPC, provided that if the IPC
decides not to direct Licensor to file for extension of any patent term, it will give written notice to Licensee of the decision
not to file at least sixty (60) days before the deadline for any such filing and Licensee may choose, at its option, to file for
any such extension at its own expense. In such case that Licensee chooses to file for any such extension, Licensor shall provide
all reasonably requested assistance to Licensee in connection with such filings at Licensee’s request. Licensor shall have
the sole and exclusive right to apply for extension of any patent term in any country and/or region outside the Field without prior
written notification to Licensee.

 

(b)          
Licensee Patent Rights. Licensee shall have the sole right to apply for extension of term for any Patent Rights for
any Licensee Improvements in any country and/or region for any product, including, without limitation, any Product in the Field,
at Licensee’s sole cost and expense.

 

6.5       
Infringement of Third Party Rights. Each Party shall promptly notify the other in writing of any allegation by a Third
Party that the activity of either Party pursuant to this Agreement infringes or may infringe the intellectual property rights of
such Third Party. Neither Party shall have the right to settle any patent Infringement litigation under this Section 6.5 in
a manner that diminishes the rights or interests of the other Party without the written consent of such other Party (which shall
not be unreasonably withheld).

 

ARTICLE VII

TERM AND TERMINATION

 

7.1          
Term. The term of this Agreement shall commence on the Effective Date and continue until terminated in accordance with
this ARTICLE VII (the “Term”).

 

7.2          
Termination for Material Breach. Each Party shall have the right to terminate this Agreement in its entirety upon written
notice to the other Party if such other Party is in material breach of this Agreement or its obligations hereunder and has not
cured such breach within sixty (60) days after notice from the terminating Party indicating the nature of such breach (or,
if the breach is impossible to cure within such sixty(60) day period and the breaching party has commenced activities to cure the
breach within the sixty (60) day period, one hundred twenty (120) days after such notice), or if such other Party is dissolved
or liquidated or takes any corporate action for such purpose; makes a general assignment for the benefit of creditors; or has a
receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell
any material portion of its property or business. Any such termination shall become effective at the end of such sixty (60) day
(or, if applicable, one hundred twenty (120) day) period unless the breaching Party has cured such breach prior to the end of the
applicable period.

 

    	 	-20-	 

     

    

 

7.3          
Termination in Connection with Development Activities. Licensor shall have the right to terminate this Agreement upon
written notice to Licensee in the event that Licensee ceases development activities prior to receiving Marketing Approval for a
Product, which termination shall become effective unless Licensee provides a notification to Licensor indicating that it has not
ceased development activities along with reasonable supporting documentation within thirty (30) days of receipt of the subject
termination notice. The failure of Licensee to initiate and dose and first patient with a Product in a Phase 1 clinical trial within
five (5) years of the Effective Date shall be deemed a cessation of development activities under this Section 7.4.

 

7.4          
Accrued Obligations; Survival. Neither expiration nor any termination of this Agreement shall relieve either Party of
any obligation or liability accruing prior to such expiration or termination, nor shall expiration or any termination of this Agreement
preclude either Party from pursuing all rights and remedies it may have under this Agreement, at law or in equity, with respect
to breach of this Agreement. On termination of this Agreement for any reason, Licensee shall have the right to sell-off or dispose
of all Products in its possession or under its control or in the process of being manufactured (which may be completed), in accordance
with the terms and conditions of this Agreement. In addition, the Parties’ rights and obligations under Article IV, Sections
2.3, 5.5, 6.1, 6.2(b), 7.4, 7.5 and Articles VIII and IX of this Agreement shall survive expiration or any termination of this
Agreement.

 

7.5          
Return of Confidential Information. Within thirty (30) days following the expiration or termination of this Agreement,
except to the extent that a Party retains a license from the other Party as provided in this Agreement, each Party shall promptly
return to the other Party, or delete or destroy, all relevant records and materials in such Party’s possession or control
containing Confidential Information of the other Party; provided that such Party may keep one copy of such materials for archival
purposes only subject to a continuing confidentiality obligations.

 

7.6          
Damages; Relief. Termination of this Agreement shall not preclude either Party from claiming any other damages, compensation
or relief that it may be entitled to hereunder.

 

    	 	-21-	 

     

    

 

ARTICLE VIII

INDEMNIFICATION

 

8.1          Indemnification by Licensee. Licensee hereby agrees to save, defend, indemnify and hold harmless Licensor, its Affiliates,
its and their respective officers, directors, agents, employees, successors and assigns (the “Licensor Indemnitees”)
from and against any and all losses, damages, liabilities, expenses and costs, including reasonable and documented legal expense
and attorneys’ fees (“Losses”), to which any Licensor Indemnitee may become subject as a result
of any claim, demand, action or other proceeding by any Third Party (each, a “Claim”) to the extent such
Losses arise out of or relate to (a) the gross negligence or willful misconduct of any Licensee Indemnitee (defined below),
or (b) the breach by Licensee of any warranty, representation, or covenant made by Licensee in this Agreement, or (c) Licensee’s
failure to comply fully with all Applicable Laws regarding Product; except, in each case, (i) to the extent such Losses result
from the gross negligence or willful misconduct of any Licensor Indemnitee or the breach by Licensor of any warranty, representation,
or covenant made by Licensor in this Agreement and (ii) to the extent of any Claim for which Licensor is obligated to indemnify
Licensee under Section 6.2.

 

8.2          Indemnification by Licensor. Licensor hereby agrees to save, defend, indemnify and hold harmless Licensee, its Affiliates
and their respective officers, directors, employees, consultants, agents, successors and assigns (the “Licensee Indemnitees”)
from and against any and all Losses to which any Licensee Indemnitee may become subject as a result of any Claim to the extent
such Losses arise out of or relate to (a) the gross negligence or willful misconduct of any Licensor Indemnitee, or (b) the
breach by Licensor of any warranty, representation, or covenant made by Licensor in this Agreement; in each case except, in each
case (i) to the extent such Losses result from the gross negligence or willful misconduct of any Licensee Indemnitee or the breach
by Licensee of any warranty, representation, or covenant made by Licensee in this Agreement and (ii) to the extent of any
Claim for which Licensee is obligated to indemnify Licensor under Section 8.1.

 

8.3         
Control of Defense. In the event a Party (the “Indemnified Party”) seeks indemnification under
Section 8.1 or 8.2, it shall inform the other Party (the “Indemnifying Party”) of a Claim as soon
as reasonably practicable after it receives notice of the Claim (it being understood and agreed, however, that the failure by an
Indemnified Party to give notice of a Claim as provided in this Section 8.3 shall not relieve the Indemnifying Party of its
indemnification obligation under this Agreement except and only to the extent that such Indemnifying Party is actually damaged
as a result of such failure to give notice), shall permit the Indemnifying Party to assume direction and control of the defense
of the Claim (including the right to settle the Claim solely for monetary consideration) using counsel reasonably satisfactory
to the Indemnified Party, and shall cooperate as requested (at the expense of the Indemnifying Party) in the defense of the Claim.
If the Indemnifying Party does not assume control of such defense within 15 days after receiving notice of the Claim from
the Indemnified Party, the Indemnified Party may control such defense and, without limiting the Indemnifying Party’s indemnification
obligations, the Indemnifying Party shall reimburse the Indemnified Party for all costs, including reasonable and documented attorney
fees, incurred by the Indemnified Party in defending itself within thirty (30) days after receipt of any invoice therefor
from the Indemnified Party. The Party not controlling such defense may participate therein at its own expense. The Party controlling
such defense shall keep the other Party advised of the status of such Claim and the defense thereof and shall consider recommendations
made by the other Party with respect thereto. The Indemnified Party shall not agree to any settlement of such Claim without the
prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, delayed or conditioned. The Indemnifying
Party shall not agree to any settlement of such Claim or consent to any judgment in respect thereof that does not include a complete
and unconditional release of the Indemnified Party from all liability with respect thereto, that imposes any liability or obligation
on the Indemnified Party or that acknowledges fault by the Indemnified Party without the prior written consent of the Indemnified
Party. If the Parties cannot agree as to the application of Section 8.1 or 8.2 to any claim, the Parties may conduct separate
defenses of such claims, with each Party retaining the right to claim indemnification from the other Party in accordance with Section 8.1
or 8.2, as applicable, upon resolution of the underlying claim.

 

    	 	-22-	 

     

    

 

8.4         
Insurance. Each Party shall procure and maintain adequate levels of insurance that are consistent with industry standards
for similarly situated companies, including comprehensive or commercial general liability insurance (including contractual liability
and product liability). Such insurance shall include commercially reasonable levels of insurance as may be customary in light of
status of activities being conducted. It is understood that such insurance shall not be construed to create a limit of either Party’s
liability with respect to its indemnification obligations under this Article 8 or otherwise. Each Party shall provide the other
Party with written evidence of such insurance upon request. Each Party shall provide the other Party with written notice at least
30 days prior to the cancellation, non-renewal or material change in such insurance which materially adversely affects the
rights of the other Party hereunder.

 

ARTICLE IX

MISCELLANEOUS

 

9.1         
Rights Upon Bankruptcy. All rights and licenses granted under or pursuant to this Agreement are, and shall otherwise
be deemed to be, for purposes of Section 365(n) of Title 11 of the United States Code and other similar laws in any jurisdiction
outside the U.S. (collectively, the “Bankruptcy Laws”), licenses of rights to “intellectual property”
as defined under the Bankruptcy Laws. If a case is commenced during the Term by or against a Party under Bankruptcy Laws then,
unless and until this Agreement is rejected as provided in such Bankruptcy Laws, such Party (in any capacity, including debtor-in-possession)
and its successors and assigns (including a trustee) shall perform all of the obligations provided in this Agreement to be performed
by such Party. If a case is commenced during the Term by or against a Party under the Bankruptcy Laws, this Agreement is rejected
as provided in the Bankruptcy Laws and the other Party elects to retain its rights hereunder as provided in the Bankruptcy Laws,
then the Party subject to such case under the Bankruptcy Laws (in any capacity, including debtor-in-possession) and its successors
and assigns (including a Title 11 trustee), shall provide to the other Party copies of all Information necessary for such
other Party to prosecute, maintain and enjoy its rights under the terms of this Agreement promptly upon such other Party’s
written request therefor. All rights, powers and remedies of the non-bankrupt Party as provided herein are in addition to and not
in substitution for any and all other rights, powers and remedies now or hereafter existing at law or in equity (including, without
limitation, the Bankruptcy Laws) in the event of the commencement of a case by or against a Party under the Bankruptcy Laws.

 

    	 	-23-	 

     

    

 

9.2        
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York,
excluding its conflicts of laws principles, except as to any issue which depends upon the validity, scope or enforceability of
any Patent, which issue shall be determined in accordance with the laws of the country in which such patent was issued.

 

9.3         
Entire Agreement; Amendments. This Agreement (including the Exhibits and Schedules hereto) is both a final expression
of the Parties’ agreement and a complete and exclusive statement with respect to all of its terms. This Agreement supersedes
all prior and contemporaneous agreements and communications, whether oral, written or otherwise, concerning any and all matters
contained herein. The Exhibits and Schedules to this Agreement are incorporated herein by reference and shall be deemed a part
of this Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by authorized
representatives of both Parties hereto.

 

9.4        
Non-Waiver. The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise
any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision
or right, in whole or in part, in that instance or in any other instance. Any waiver by a Party of a particular provision or right
shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed
by such Party.

 

9.5        
Assignment. 

 

(a)          Except as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned
or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably
withheld); provided, however, that:

 

(i)            
either Party may assign this Agreement and its rights and delegate its obligations hereunder to an Affiliate without
the other Party’s consent; provided that such Affiliate assumes in writing and agrees to be responsible to the non-assigning
Party for the performance of all duties and obligations of the assigning Party and the assigning Party shall remain liable and
responsible to the non-assigning Party hereto for the performance and observance of all such duties and obligations by such Affiliate;
provided further, that the assigning party shall also remain responsible for compliance with Sections 4.1 and 4.2 following any
such assignment; and

 

    	 	-24-	 

     

    

 

(ii)          
Either Party may assign this Agreement in connection with the transfer or sale of all or substantially all of its business
to which this Agreement relates to a Third Party (“Third Party Acquirer”), whether by merger, sale of
stock, sale of assets or otherwise (each, a “Sale Transaction”); provided further, that the assigning
party shall also remain responsible for compliance with Sections 4.1 and 4.2 following any such assignment.

 

(b)        
The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the
successors and permitted assigns of the Parties, and the name of a Party appearing herein will be deemed to include the name of
such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Article. Any assignment
not in accordance with this Agreement shall be void. In the event of an assignment and assumption of rights and obligations under
this Agreement to a Third Party in connection with a Sale Transaction, the assigning Party shall be relieved of all obligations
to the non-assigning Party assumed by the applicable Third Party; provided further, that the assigning party shall also remain
responsible for compliance with Sections 4.1 and 4.2 following any such assignment.

 

9.6        Force Majeure. Each Party shall be excused from liability for the failure or delay in performance of any obligation
under this Agreement by reason of any event beyond such Party’s reasonable control, including but not limited to Acts of
God, fire, flood, explosion, earthquake, or other natural forces, war, civil unrest, acts of terrorism, accident, destruction or
other casualty, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, any strike or
labor disturbance, or any other event similar to those enumerated above. Such excuse from liability shall be effective only to
the extent and duration of the event(s) causing the failure or delay in performance and provided that the Party has not caused
such event(s) to occur. The affected Party shall notify the other Party of such force majeure circumstances as soon as reasonably
practical, and shall promptly undertake all reasonable efforts necessary to cure such force majeure circumstances.

 

9.7         Severability. If any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the
Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s)
with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement.

 

    	 	-25-	 

     

    

 

9.8         
Notices. All notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally,
or sent by facsimile or physical mail, sent by nationally-recognized overnight courier or sent by registered or certified mail,
postage prepaid, return receipt requested (in each case, if promptly confirmed by personal delivery, registered or certified mail
or overnight courier), addressed as follows:

 

	If to Licensor, to:	Weird Science LLC

[     ]

	 	 
	If to Licensee, to:	Enochian Biopharma Inc.

[     ]

 

or to such other address(es) as the Party
to whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such notice shall be
deemed to have been given: (a) when delivered, if personally delivered or sent by facsimile on a business day (or if delivered
or sent on a non-business day, then on the next business day); (b) on the business day after dispatch, if sent by nationally-recognized
overnight courier; or (c) on the third (3rd) business day following the date of mailing, if sent by mail.

 

9.9         
Interpretation. The headings of clauses contained in this Agreement preceding the text of the sections, subsections
and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this
Agreement, or have any effect on its interpretation or construction. All references in this Agreement to the singular shall include
the plural where applicable. The term “including” or “includes” as used in this Agreement means including,
without limiting the generality of any description preceding such term, and the word “or” has the inclusive meaning
represented by the phrase “and/or.” Unless otherwise specified, references in this Agreement to any section shall include
all subsections and paragraphs in such section and references in this Agreement to any subsection shall include all paragraphs
in such subsection. All references to days in this Agreement shall mean calendar days, unless otherwise specified. Ambiguities
and uncertainties in this Agreement, if any, shall not be interpreted against either Party, irrespective of which Party may be
deemed to have caused the ambiguity or uncertainty to exist. This Agreement has been prepared in the English language, and the
English language shall control its interpretation. In addition, all notices required or permitted to be given hereunder, and all
written, electronic, oral or other communications between the Parties regarding this Agreement shall be in the English language.

 

9.10       Disputes. Any claim, dispute, or controversy as to the breach, enforcement, interpretation or validity of this Agreement
(each, a “Dispute”) that cannot be resolved by the Parties within thirty (30) days after a Party is given
notice of such Dispute, will be referred to the Chief Executive Officer of Licensor and the Chief Executive Officer of Licensee
for attempted resolution, with each party exercising good faith in such attempt for a period of not less than thirty (30) days
prior to either Party instituting any other dispute resolution mechanism. Nothing contained in this Agreement shall deny either
Party the right to seek injunctive or other equitable relief from a court of competent jurisdiction in the context of a bona
fide emergency or prospective irreparable harm, and such an action may be filed and maintained notwithstanding any ongoing
discussions between the Parties or any ongoing proceeding.

 

    	 	-26-	 

     

    

 

9.11       Relationship between the Parties. The Parties’ relationship, as established by this Agreement, is solely that
of independent contractors. This Agreement does not create any partnership, joint venture or similar business relationship between
the Parties. Neither Party is a legal representative of the other Party, and neither Party may assume or create any obligation,
representation, warranty or guarantee, express or implied, on behalf of the other Party for any purpose whatsoever.

 

9.12       Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative
and in addition to any other remedy referred to in this Agreement or otherwise available under law.

 

9.13       No Third Party Rights. The provisions of this Agreement are for the exclusive benefit of the Parties, and no other person
or entity shall have any right or claim against any Party by reason of these provisions or be entitled to enforce any of these
provisions against any Party.

 

9.14       Further Assurances. Each Party agrees to do and perform all such further acts and things and will execute and deliver
such other agreements, certificates, instruments and documents necessary or that the other Party may deem advisable in order to
carry out the intent and accomplish the purposes of this Agreement and to evidence, perfect or otherwise confirm its rights hereunder.

 

9.15        Costs. Except as specifically provided in this Agreement, each Party shall be solely responsible for all costs, fees
and other expenses incurred by it in connection with this Agreement.

 

9.16       Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original document, and
all of which, together with this writing, shall be deemed one instrument. This Agreement may be executed by facsimile or PDF signatures,
which signatures shall have the same force and effect as original signatures.

 

[Remainder of this page intentionally
left blank.]

 

    	 	-27-	 

     

    

 

In
Witness Whereof, the parties hereto have duly executed this License Agreement as of the Effective Date.

 

	ENOCHIAN BIOPHARMA INC.
	 	 	 
	By:	                	 
	Name:	 	 
	Title:	 	 

  

	WEIRD SCIENCE LLC
	 	 	 
	By:	            	 
	Name:	 	 
	Title:	 	 

 

[Signature Page to Weird Science License
Agreement]

     

     

    

 

Exhibit A

 

Patent Rights

  

 

 

Exhibit
B

 

Study Description

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