Document:

Exhibit
10.21

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY
HARMFUL IF PUBLICLY DISCLOSED.

 

TEXT
OMITTED FROM THIS EXHIBIT IS MARKED WITH [***]

 

ROYALTY
AGREEMENT

 

THIS
ROYALTY AGREEMENT (this “Agreement”) is entered into effective as of May 1, 2012, among IRX THERAPEUTICS,
INC., a Delaware corporation (“IRX”) and IRX 2012 SENIOR NOTE INVESTORS, LLC, a Delaware limited liability
company (“Investor Entity”).

 

WHEREAS:

 

A.
Effective June 28, 2000, the UNIVERSITY OF SOUTH FLORIDA RESEARCH FOUNDATION, INC., a Florida corporation not for profit under
Chapter 617, Florida Statutes, and a direct support organization of the University of South Florida (“Research Foundation”),
and Immuno-Rx, Inc., a Florida corporation (the “Predecessor”), entered into four separate License Agreements
pursuant to which Research Foundation licensed certain patent rights to the Predecessor (such agreements, as the same may be amended
and as are in effect on the date hereof, the “License Agreements”).

 

B.
IRX succeeded to the Predecessor’s rights and obligations under the License Agreements as a result of the migratory merger
of Predecessor with and into IRX in August 2000.

 

C.
Investor Entity is an entity organized and owned by investors who or which participated in IRX’s 2012 senior note and warrant
financing (the “2012 Senior Loan Financing”) and purchased senior promissory notes of IRX (the “2012
Senior Notes”) in the 2012 Senior Loan Financing; and Investor Entity was organized for the specific purpose of entering
into this Agreement.

 

D.
As an inducement to the owners of the Investor Entity to participate in the 2012 Senior Loan Financing and to invest in IRX through
the purchase of 2012 Senior Notes, and as a condition to and in consideration of such participation and purchase, IRX desires
to enter into this Agreement providing for the payment of a royalty to the Investor Entity.

 

NOW,
THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereby agree
as follows:

 

1.
If and at such time or times as IRX shall be obligated to pay to the Research Foundation Running Royalties in respect of a percentage
of Gross Sales of the Licensed Product under and in accordance with the License Agreements, it shall be obligated to concurrently
pay to the Investor Entity an amount (the “Investor Royalty Share”) equal to [***] percent ([***]%) of Gross
Sales (as determined in accordance with the License Agreements) of Licensed Product made, used, leased or sold by or for IRX and
its sublicensees, provided

 

    	 

     

    

 

(a)
that if it is necessary for IRX acquire one or more royalty-bearing licenses from third parties in order to fully exercise the
rights granted by Research Foundation under the License Agreements, or in the event that IRX shall sell or lease Combination Product(s)
consisting of a Licensed Product and one or more additional active ingredients which must be purchased outright by IRX for use
in the composition of such Combination Product, then in either such event, IRX shall be entitled to credit against the payment
due to the Investor Entity under this Section 1 cumulative amounts equal to the royalties and/or the price actually paid to third
parties on such account(s), up to a maximum of [***] percent ([***]%) of the amounts otherwise due to the Investor Entity under
this Section 1; and further provided

 

(b)
[***]

 

The
Investor Royalty Share shall be paid by IRX [***].

 

2.
IRX shall keep full, true and accurate books of account containing all particulars that may be necessary for the purpose of showing
the amounts payable to the Investor Entity hereunder, and said books and the supporting data shall be open at all reasonable times
for five (5) years following the end of the calendar year to which they pertain, to the inspection of Investor Entity or its agents
for the purpose of verifying IRX’s royalty statement or compliance in other respects with this Agreement.

 

3.
IRX shall, concurrently with the furnishing of such reports as are provided to Research Foundation under Section 5.2 of the License
Agreement, furnish copies thereof to the Investor Entity.

 

4.
With each such report submitted, and concurrently with payment to Research Foundation of the royalties due and payable under the
License Agreements accompanying such reports, as provided in Section 5.3 of the License Agreements, IRX shall pay to Investor
Entity the royalties due and payable under this Agreement. If no royalties shall be due, IRX shall so report.

 

5.
Royalty payments shall be paid in United States dollars in New York, New York. If any currency conversion shall be required in
connection with the payment of royalties hereunder, such conversion shall be made by using the exchange rate prevailing at the
Chase Manhattan Bank (N.A.) on the last business day of the calendar quarter reporting period to which such royalty payment relate.

 

6.
The royalty payments set forth in this Agreement shall, if overdue, bear interest until payment at a [***] percent rate ([***]%)
per annum rate. The payment of such interest shall not foreclose the Investor Entity from exercising any other rights it may have
as a consequence of the lateness of the payment.

 

7.
This Agreement shall be governed by the laws of the State of Delaware (U.S.A.), without giving effect to the principles of conflict
of laws thereof and without regard to where the Agreement is executed or to be performed. The parties hereby submit to the personal
jurisdiction of the state and federal courts located in New York City, New York (U.S.A.), and agree that any cause of action brought
under or related to this Agreement by either Party shall be brought exclusively in the state or federal courts sitting in New
York City, New York (U.S.A.).

 

    	 

     

    

 

8.
All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been
duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by telecopier (with written confirmation
of receipt), provided that a hard copy is also sent by U.S. mail, or (c) when received by the addressee, if sent by a nationally
recognized overnight delivery service (receipt requested) or sent by certified U.S. mail (return receipt requested), in each case
to the appropriate addresses and telecopier numbers set forth below (or to such other addresses and telecopier numbers as a party
may designate by notice to the other parties in accordance with this paragraph).

 

9.
Neither this Agreement nor any interest herein may be assigned, in whole or in part, by any party without the prior written consent
of the other parties.

 

10.
It is understood by the parties that this Agreement constitutes the complete agreement between the parties with respect to the
subject matter hereof. This Agreement may not be amended, modified, or waived unless in writing signed by the party or parties
against whom enforcement of the amendment or modification is sought or, in the case of a waiver, by the party waiving compliance.

 

11.
The Investor Entity acknowledges and agrees that this Agreement and the terms hereof are strictly confidential, and that it shall
not voluntarily discuss, publicize or disseminate or cause to be discussed, publicized or disseminated any information relating
to the terms, contents and execution of this Agreement; provided, however, the Investor Entity may disclose the
foregoing for valid business purposes to its investors, counsel, accountants and other representatives with a need to know provided
further that each recipient is apprised in advance of the confidential nature of such disclosure and such recipient’s
obligation to maintain such confidentiality and that Investor Entity shall be responsible for any breach or violation of such
confidentiality obligation by any such recipient.

 

12.
This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute
the same agreement.

 

[signatures
follow]

 

    	 

     

    

 

 

IN
WITNESS WHEREOF, the parties have caused their respective signature page to this Agreement to be duly executed as of the date
first written above.

 

	 	IRX
    THERAPEUTICS, INC.
	 	 
	 	By:
    	/s/
    John W. Hadden II
	 	Name:
    	John
    W. Hadden II
	 	Title:
    	President
    & CEO
	 	 	 
	 	Address
    and fax no. for notices:
	 	 
	 	140
    West 57th Street, Suite 3D
	 	New
    York, NY 10019
	 	Fax:
    (212) 582-3659
	 	 
	 	IRX
    2012 SENIOR NOTES, LLC
	 	 	 
	 	By:
    	/s/
    Jeffrey Hwang
	 	Name:
    	Jeffrey
    Hwang
	 	Title:
    	Managing
    Member
	 	 	 
	 	Address
    and fax no. for notices:
	 	 
	 	140
    West 57th Street, Suite 3D
	 	New
    York, NY 10019
	 	Fax:
    (212) 582-3659Exhibit
10.22

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY
HARMFUL IF PUBLICLY DISCLOSED.

 

TEXT
OMITTED FROM THIS EXHIBIT IS MARKED WITH [***]

 

ROYALTY
AGREEMENT

 

This
ROYALTY AGREEMENT (this “Agreement”) is entered into as of November 6, 2018 by and between Brooklyn Immunotherapeutics
LLC, a Delaware limited liability company with offices located at Brooklyn Army Terminal, 140 58th Street, Bldg. A, Loading Dock
9, Brooklyn, NY 11220 (“OpCo”), Brooklyn Immunotherapeutics Investors LP, a Delaware limited Partnership with
offices located at c/o Ara Partners, 109 North Post Oak Lane, Suite 530, Houston, TX 77024 (“LP”) and Brooklyn
Immunotherapeutics Investors GP LLC, a Delaware limited liability company with offices located at c/o Ara Partners, 109 North
Post Oak Lane, Suite 530, Houston, TX 77024 (“GP,” and together with LP, collectively, the “Investors”)
and OpCo and the Investors are jointly referred to herein as the “Parties” and each, individually, as a “Party.”

 

WHEREAS,
OpCo is an entity that is newly formed for the purpose of acquiring (the “Acquisition”) certain specified assets
and liabilities of IRX Therapeutics, Inc., a Delaware corporation;

 

WHEREAS,
the Investors are providing the financing to OpCo in order to consummate the Acquisition;

 

WHEREAS,
as additional consideration for such financing, OpCo has agreed to grant, and the Investors have agreed to accept, the royalty
payments described below on the terms and conditions set forth herein.

 

NOW
THEREFORE, in consideration of these premises and the covenants herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties mutually agree as follows:

 

1.
Royalty.

 

(a)
Royalty Payments. In consideration of the provision of the financing for the Transactions by the Investors, OpCo agrees
pay to the Investors during the Royalty Term compensatory royalties in an amount equal to [***] percent ([***]%) of the Net Revenues
received by OpCo during the applicable year, of which [***]% shall be paid to LP and [***]% shall be paid to GP (the “Royalty”).
OpCo shall pay the Royalty within thirty (30) days after the end of each calendar year of the Royalty Term. “Net Revenues”
shall mean [***].

 

(b)
Royalty Term. The term of the Royalty shall commence on the date hereof and will continue in perpetuity (the “Royalty
Term”). Notwithstanding the foregoing, the Royalty Term shall terminate early upon the occurrence of a Sale (as defined
in OpCo’s Limited Liability Company Agreement dated as of the date hereof, as amended) or liquidation of OpCo.

 

    	1

     

    

 

(c)
Royalty Reports; Records. OpCo shall report to the Investors the Net Revenues on which Investors are entitled to Royalties
hereunder on a quarterly basis during the Term (each, a “Royalty Report”). During Royalty Term, OpCo shall
grant the Investors access to OpCo’s books and records for the purpose of Net Revenues.

 

(d)
Form of Payment. All Royalty payments shall be made in U.S. dollars. Any monies payable to the Investors shall be paid
by OpCo via check or wire transfer to an account designated in writing by each Investor to OpCo. In the event OpCo is unable to
pay the full amount of a quarterly Royalty payment when due, OpCo shall use good faith efforts to pay such amount promptly (as
soon as OpCo has available funds) and such unpaid amount shall accrue interest at the rate of [***] ([***]%) per year from the
date such amount of Royalties were due until paid in full.

 

(e)
Taxes. All payments under this Agreement are exclusive of all federal, state, local and foreign taxes, levies and assessments.
Each Investor agrees to bear and be responsible for the payment of all such taxes, levies and assessments imposed upon such Investor
arising out of its receipt of payments from OpCo under this Agreement. If OpCo reasonably determines in its sole discretion that
it is or could be obligated to withhold any tax in connection with the Royalty, OpCo may, in its reasonable discretion, withhold
the appropriate amount of tax in cash from the Royalty, provided that OpCo gives the applicable Investor notice of such determination
and an opportunity to comment on or object to such determination. If OpCo does not withhold an amount sufficient to satisfy the
withholding obligation of OpCo, the applicable Investor will, on demand, reimburse OpCo in cash for the amount which should have
been withheld.

 

2.
Confidential Information.

 

(a)
Protection and Use of Confidential Information. No Party shall disclose or use the Confidential Information of the other
Party, except as expressly authorized pursuant to this Agreement. The receiving Party shall limit disclosure of the disclosing
Party’s Confidential Information to the receiving Party’s employees or agents who have a need to know such Confidential
Information for purposes of this Agreement. Notwithstanding the foregoing, Confidential Information may be disclosed if required
by law, provided, however, that the receiving Party shall notify the disclosing Party of such requirement immediately in writing
and shall reasonably cooperate with the disclosing Party in obtaining a protective or similar order.

 

(b)
Exceptions. Confidential Information will not include information that: (i) is in or enters the public domain through no
act or fault of the receiving Party; (ii) is known to and has been reduced to tangible form by the receiving Party at the time
of disclosure; (iii) is independently developed by the receiving Party without use of or reference to the disclosing Party’s
Confidential Information; or (iv) is disclosed to the receiving Party by a third party, at any time, whether prior to or after
the time of its disclosure under this Agreement, on a non-confidential basis, provided that such third party is not, to the receiving
Party’s knowledge, bound by any obligation of confidentiality to the disclosing Party with respect to such Confidential
Information.

 

(c)
Return of Confidential Information. Upon the disclosing Party’s written request, the receiving Party shall return
or destroy all copies of the disclosing Party’s Confidential Information and certify promptly in writing that it has done
so.

 

    	2

     

    

 

(d)
Definition. As used herein, “Confidential Information” shall mean a Party’s non-public technical
or business information, including without limitation, the Royalty Report, trade secrets, know-how, inventions, technical data
or specifications, testing methods, business or financial information, research and development activities, product and marketing
plans, and customer and supplier information. Furthermore, the terms and conditions of this Agreement shall be considered the
Confidential Information of all Parties.

 

3.
Miscellaneous.

 

(a)
Headings, Integration, Revisions. All headings are for reference purposes only and will not affect the meaning or interpretation
of this Agreement. This Agreement of even date herewith merges all prior representations and collateral understandings, memorandums
and agreements in connection with its subject matter, and constitutes the entire understanding between the Investors and OpCo
concerning the subject matter of this Agreement. No Party shall be bound by any revision of this Agreement unless in writing and
signed by an authorized officer of said Party.

 

(b)
Applicable Law and Interpretation. All questions concerning the validity, operation, interpretation, and construction of
the Agreement will be governed by and determined in accordance with the substantive laws of the State of New York without regard
to its conflicts of law provisions. Any action brought pursuant to or in connection with this Agreement shall be brought only
in the state or federal courts within New York County, New York. In any such action, all Parties consent to the exercise of personal
jurisdiction of such courts and waive any objections to venue in any such forum. THE PARTIES HERETO EXPRESSLY WAIVE ANY RIGHT
THEY MAY HAVE TO A TRIAL BY JURY.

 

(c)
Assignment. No Party may assign this Agreement without the prior written consent of the other Parties.

 

(d)
Notices. Notices pertaining to this Agreement shall be in writing and shall be deemed received by the addressee when delivered,
if delivered in person or by receipted courier, five (5) business days after being deposited in the United States mail, postage
prepaid, certified or registered mail or when delivered via electronic mail, provided that a copy is sent via United State mail
or express mail. Notices shall be addressed to the other Party at its respective address set forth in the preamble hereof or to
such address as is communicated to each Party in writing.

 

(e)
Severability. If any provision of this Agreement is unenforceable, such provision will be changed and interpreted to accomplish
the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue
in full force and effect.

 

(f)
Independent Contractors, No Joint Venture. The Investors and OpCo acknowledge and agree that each is an independent contractor
and neither shall be considered an employee, agent, partner or co-venturer of the other. It is understood that neither the Investors
nor OpCo shall have the right or authority to make any commitments or incur any costs on behalf of the other. This Agreement does
not constitute, and shall not be construed as constituting, a partnership or joint venture between OpCo and the Investors. Nothing
herein contained shall give or is intended to give any rights of any kind to any third party.

 

(g)
Waiver. No delay on the part of a Party in exercising any of its rights, remedies, powers and privileges hereunder or partial
or single exercise thereof, shall constitute a waiver thereof. The waiver by any Party of any default or breach, or of any claimed
default or claimed breach, of this Agreement shall not constitute a waiver of any other or subsequent default or breach. No notice
to or demand on any Party hereto in any case shall entitle such Party to any other or further notice or demand in similar or other
circumstances or constitute a waiver of any of the rights of the other Party hereto to any other or further action in any circumstances
without notice or demand.

 

(h)
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all
of which taken together shall constitute one and the same instrument. The delivery of signed counterparts by facsimile or e-mail
transmission that includes a copy of the sending Party’s signature is as effective as signing and delivering the counterpart
in person.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	3

     

    

 

IN
WITNESS WHEREOF the Parties have executed this Agreement as of the Effective Date.

 

	 	Brooklyn
    Immunotherapeutics, LLC
	 	 	 
	 	By:	/s/
    Charles R. Cherington
	 	Name:	Charles
    R. Cherington
	 	Title:	Manager
	 	 	 
	 	Brooklyn
    Immunotherapeutics, LLC
	 	 	 
	 	By:	Brooklyn
    Immunotherapeutics Inevstors 
	 	 	GP,
    LLC, its general partner
	 	 	 
	 	By:	/s/
    Charles R. Cherington 
	 	Name:	Charles
    R. Cherington 
	 	Title:	Manager
	 	 	 
	 	Brooklyn
    Immunotherapeutics Investors GP
	 	LLC
	 	 	 
	 	By:	/s/
    Charles R. Cherington 
	 	Name:	Charles
    R. Cherington
	 	Title:	Manager

 

{Signature
page to Royalty Agreement}

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