Document:

inmune_ex107.htm

EXHIBIT 10.7
  
 DATED 29th November                                              2017
  
 (1) ANTHONY NOLAN
  
 - and -
  
 (2) INMUNE BIO INTERNATIONAL LTD
  
 MATERIAL TRANSFER AND 
 LICENCE AGREEMENT
  
  
  
  
  	 
	 
	 
 
	 

  
 THIS MATERIAL TRANSFER AGREEMENT together with its Schedules, the "Agreement" is made on 29 November 2017 , the "Effective Date", between
  
  	(1)	ANTHONY NOLAN, a company incorporated in England under the Companies Acts with registered number 2379280 and charity number 803716, and having its registered office at The Royal Free Hospital, Pond Street, Hampstead, London NW3 1QG England ("AN"); and
	  
	  

	(2)	INMUNE BIO INTERNATIONAL LTD, a company incorporated in England under the Companies Acts with registered number 10105962 and having its registered office at Kerman & Co LLP (attn.: Simon W. Holden), 200 Strand, London, WC2R 1DJ, England, ("IMB"),

 
 together the "Parties" and each a "Party".
  
 WHEREAS:
  
  	A 	AN and the Royal Free Hampstead NHS Trust ("RFH") entered into a Third Party Service Level Agreement on 23 September 2016 for the procurement of MSC derived from umbilical cord blood or placenta to be used for research purposes by RFH and specifically, a researcher, Professor Mark W Lowdell (the "RFH Agreement").
	  
	  

	B	IMB was established and co-founded in April 2016 by Professor Mark Lowdell, Dr Raymond Joseph Tesi and Mr David Moss. IMB wishes to obtain the Materials for their use in the Field.
	  
	  

	C	The Parties have agreed that the Materials are only for use in humans or for human application if approved by the relevant regulatory body and wish to enter into this Agreement to govern their relationship in this matter.

  
 	1.	DEFINITIONS

  
  	1.1	In this Agreement (unless the context otherwise requires), the following words and phrases shall have the following meanings:

  
 	  
	 "Affiliates"
	 means INmune Bio Inc. and any other entity that directly or indirectly Controls, is Controlled by, or is under common Control with IMB (for the purpose of this definition, "Control" shall mean the beneficial ownership of more than 50% of the issued share capital of a company or the legal power to direct or cause the direction of the general management of that company, and Control and Controls shall be construed accordingly);

	  
	  
	  

	  
	 "ANCBB"
	 means the Anthony Nolan Cord Blood Bank;

	  
	  
	  

	  
	 "AN Ethically Approved"
	 means research which shall be deemed ethically approved by AN if it satisfies the relevant criteria set out in Schedule 2 or is otherwise approved in writing by AN;

	  
	  
	  

	  
	 "Confidential Information"
	 means Materials, names or codes used for the Materials and Licensed Products, intellectual property relating to the Materials and Licensed Products; scientific, technical, trade or business information possessed by the receiving Party that is treated by the disclosing Party as confidential or proprietary including but not limited to techniques, methodologies, procedures, tests, equipment, research results, clinical protocols, data reports, know-how, sources of supply, research and business plans and developments, irrespective of the media in which such information is contained or disclosed, and whether or not labelled or identified as confidential;

  
  	 
	 
	 
 
	 

  
 	  
	 "Derivatives"
	 means any unmodified product expressed by the original biological material which is isolated or created by or on behalf of IMB or its Affiliates under this Agreement;

	  
	  
	  

	  
	 "Field"
	 AN Ethically Approved academic or commercial research which is at pre-clinical stages and which is only for human use if approved by an applicable regulatory body;

	  
	  
	  

	  
	 "HTA"
	 means the Human Tissue Authority;

	  
	  
	  

	  
	 "Licence"
	 means the licence granted to IMB by AN in clause 2 of this Agreement;

	  
	  
	  

	  
	 "Licensed Product"
	 means MSC produced as part of a demonstration batch in accordance with current GLP or GMP, together with any Progeny and any Derivatives from such MSC and/or their progeny whether of similar characteristics of phenotype or otherwise, such MSC having been obtained from the Materials;

	  
	  
	  

	  
	 "Licensed Product IP"
	 has the meaning given to it in clause 5.1;

	  
	  
	  

	  
	 "Materials"
	 means the quantity of twenty-five (25) umbilical cord tissue samples that were obtained by ANCBB in the ordinary course of ANCBB's operations and supplied by AN to RFH under the RFH Agreement and any MSC, Derivatives or Progeny created by RFH from the tissue samples;

	  
	  
	  

	  
	 "MSC"
	 means Mesenchymal Stem Cells;

	  
	  
	  

	  
	 "Net Sales"
	 means, with respect to the Licensed Product, the gross amount invoiced by IMB or its Affiliates for supplies of Licensed Product or services provided in relation to Licensed Product to third parties, less the following deductions paid, granted or accrued:
  
 (a) bad debts actually written off related to the Licensed Product;
  
 (b) any rebates, volume, trade and cash discounts, and other usual and customary discounts to customers granted and taken in the ordinary course of business;
  
 (c) allowances or credits to customers usually given and not in excess of the selling price of the Licensed Product, on account of rejection, outdating recalls or return of the Licensed Product; and
  
 (d) sales and excise taxes or customs duties and other governmental charges directly related to the sale of the Licensed Product (and not reimbursed) to the extent added to the sales prices and set forth separately as such in the total amount invoiced,
  
 and Net Sales shall be determined from the books and records of IMB and/or its Affiliates in accordance with generally accepted accounting principles as consistently applied with respect to sale of the Materials;

  
  	 
	 
	 
 
	 

  
 	  
	 "Progeny"
	 means any unmodified descendent from the original biological material which is isolated or created by or on behalf of IMB or its Affiliates;

	  
	  
	  

	  
	 "Q&S Regulations"
	 has the meaning given in clause 3.7;

	  
	  
	  

	  
	 "Serious Adverse Event"
	 means any untoward occurrence which may be associated with the procurement, testing, processing, storage or distribution of tissue or cells intended for human application and which, in relation to a donor of tissue or cells intended for human application, or a patient of tissue or cells:
  
 (a) might lead to the transmission of a communicable disease, to death or life-threatening, disabling or incapacitating conditions; or
  
 might result in, or prolong, hospitalisation or morbidity; and

	  
	  
	  

	  
	 "Serious Adverse Reaction"
	 means an unintended response, including a communicable disease, in a donor of tissue or cells intended for human application or a patient of tissue or cells, which may be associated with the procurement or human application of tissue or cells and which is fatal, life-threatening, disabling, incapacitating or which results in, or prolongs, hospitalisation or morbidity.

  
  	2.	LICENCE
	  
	  

	 2.1
	 Subject to clause 2.2 and 2.3, AN grants to IMB an exclusive licence to:

  
  	  
	(a)	use, process, test and store the Materials and Licensed Product;
	  
	  
	  

	  
	(b)	produce Licensed Product, including the creation of Derivatives and Progeny from Materials in accordance with current GMP or GLP;
	  
	  
	  

	  
	(c)	supply Licensed Product to third parties and to provide services in relation to such Licensed Product to third parties; and
	  
	  
	  

	  
	(d)	sub-licence its rights under paragraphs (a) to (c) above to Affiliates and to third party service providers it or its Affiliates contract in writing with to provide services to IMB or its Affiliates in connection with the exercise of such rights,
	  
	  
	  

	  
	 in each case only for the Field (the "Licence").

  
  	2.2	AN shall be entitled to licence and supply other cord blood and cord tissue samples, other than the Materials, to third parties for purposes similar to the Licence.
	  
	  

	2.3	IMB acknowledges that the Materials form part of a research project with the University College London for the process development of a cord blood derived mesenchymal stromal cell bank.
	  
	  

	2.4	IMB shall ensure that in all agreements with third parties for the supply and/or licence of Licensed Product it flows through to such third parties all applicable obligations, including compliance with consents, confidentiality, field restrictions and regulatory obligations.

  
  	 
	 
	 
 
	 

  
  	2.5	Notwithstanding clause 2.4, IMB shall provide to AN all of IMB's form agreements for the supply and licence to third Parties of Licensed Product. AN reserves the right to review and notify IMB of any changes required to such template agreements to reflect AN's rights and IMB's obligations under this Agreement.
	  
	  

	3.	SUPPLY OF MATERIALS AND THE RESEARCH
	  
	  

	3.1	AN screened the Materials serologically for (i) anti-HIV1 and HIV 2 antibodies; (ii) anti- HepB core antibody; (iii) anti-HepC IgG antibody; (iv) HTLV 1 & 2; and (v) syphilis, within 30 days of the harvest. AN will provide these results to IMB in writing on request.
	  
	  

	3.2	IMB undertakes to produce, store, supply and commercialise the Licensed Product only in accordance with the Licence and the terms of this Agreement and applicable law.
	  
	  

	3.3	The licence granted in clause 2 of this Agreement is conditional upon the necessary arrangements being put in place between IMB and RFH for RFH to hold the Materials and Licensed Product to the order of IMB. IMB will confirm to AN when such arrangements have been made.
	  
	  

	3.4	The Materials are from fully validated donors consistent with what is required for cord blood donation and for each donor, consent has been obtained in accordance with the Cord Blood Consent Form attached as Schedule 1. IMB shall ensure that in respect of the Materials and Licensed Product, it complies with and that all its Affiliates, sub-licensees and service providers comply with all stipulations set out in the consent form and any other stipulations which are notified by AN arising from donor consent. The Materials have been given unique randomised identifiers which can be used to link the Materials and Licensed Product back to its donor. No donor identifiable data will be made available by AN to IMB at any time.
	  
	  

	3.5	IMB shall and shall procure that its Affiliates shall comply with all laws and regulations applicable to the handling of the Materials and Licensed Product and its use, storage, transportation, exportation and supply including but not limited to all applicable laws, regulations and codes of conduct relating to use of samples of human origin and all laws and regulations relating to the protection of any personal information or data of any human subject that the Materials and Licensed Product were derived from. IMB will produce, store and supply all Licensed Products in a HTA licensed facility (or a facility which holds an equivalent licence as set by the HTA within the relevant jurisdiction) and those manufactured for clinical trial as an advanced therapy medicinal product in an appropriately accredited facility.
	  
	  

	3.6	IMB shall notify AN of all suspected or actual Serious Adverse Events or Serious Adverse Reactions and any other event which has effected the donor, Licenced Product and/or patient outcome within 24 hours of [it being observed or notified to IMB].
	  
	  

	3.7	Without prejudice to the generality of clause Error! Reference source not found., the Parties acknowledge that the European Union Tissues and Cells Directives 2004/23/EC, 2006/17/EC and 2006/86/EC are transcribed into UK law by the Human Tissue (Quality and Safety for Human Application) Regulations 2007 (the "Q&S Regulations"). The Q&S Regulations carry certain standards which must be met and are described in the Guide to Quality and Safety Assurance of Human Tissue and Cells for Patient Treatments as implemented by HTA Directions 003/2010.
	  
	  

	3.8	IMB acknowledges that AN are not required to replace lost or damaged Materials or any Materials deemed to be unfit for use for the Field.

  
  	 
	 
	 
 
	 

  
  	3.9	AN shall have the right (but not the obligation) to be acknowledged as the supplier of the Materials in any publication made by IMB, its Affiliates or sub-licensees based on the results of research conducted in connection with the Licensed Product.
	  
	  

	4.	FINANCIALS PAYMENT
	  
	  

	4.1	In consideration for the provision of the Materials, IMB shall pay to AN £200 plus VAT (if applicable) for each umbilical cord tissue sample IMB and related Licensed Product IMB receives pursuant to this Agreement. Such payment shall be made to AN within 30 days of the Effective Date.
	  
	  

	4.2	In consideration of the rights granted hereunder, and subject to the terms and conditions of this Agreement, IMB shall pay to AN a royalty of 2% of Net Sales.
	  
	  

	4.3	Materials and Licensed Product supplied by IMB or its Affiliates to a third party user free of all charges in the course of research and clinical trial programmes will not be subject to the royalty in clause 4.2, provided that such arrangements are made on an arm's length basis.
	  
	  

	4.4	IMB shall make royalty payments to AN within sixty (60) days after the end of each calendar quarter, and each payment shall be accompanied by a report for that calendar quarter setting out: (i) the applicable country or region in which Net Sales occurred; (ii) the gross sales for the Licensed Product in each such country or region; (iii) the Net Sales for the Licensed Product for each such country or such region; and (iv) the amount of royalties payable to AN for the Licensed Product in each such country or such region, as well as the computation thereof. Said reports shall be kept confidential by AN and not disclosed to any other party, other than AN’s accountants which shall be obligated to keep such information confidential, and such information and reports shall only be used for purposes of this Agreement. Said reports shall be sent to the Head of Corporate Programme at AN by registered post and email.
	  
	  

	4.5	Each payment hereunder shall be made by electronic transfer in immediately available funds via either a bank wire transfer or any other means of electronic funds transfer, at IMB’s election, to such bank account as AN shall designate in writing to IMB at least five (5) business days before the payment is due.
	  
	  

	4.6	IMB shall, and shall cause its Affiliates to, keep accurate books and records setting forth the, gross sales of each Licensed Product in the Field, Net Sales of each such Licensed Product, amounts payable hereunder to AN for all Licensed Product and other information reasonably required to verify the calculation of payments made under clause 4.3, provided that nothing in this clause 4.5 shall require IMB to keep or create books, records or reports IMB would not typically keep for the purpose of determining and reporting royalties or profit sharing arrangements. IMB shall permit AN or its financial representatives to examine such books and records at any reasonable time, upon reasonable notice, but not more than once during each twelve (12)-month period and no later than two (2) years following the rendering of a quarterly report. AN shall bear the cost of any such examination and review; unless that examination shows an underpayment of royalties of more than five percent (5%) of the amount due for the applicable period, in which case IMB shall promptly reimburse AN for all costs incurred in connection with such examination. IMB shall promptly pay to AN the amount of any underpayment of royalties revealed by an examination.

  
  	 
	 
	 
 
	 

  
  	5.	INTELLECTUAL PROPERTY
	  
	  

	5.1	IMB shall promptly and in any case within 30 days after becoming aware of any Licensed Product IP fully disclose in writing to AN any and all such Licensed Product Intellectual Property (whether patentable or not). For the purposes of this Agreement "Licensed Product IP" shall include any and all intellectual property developed, conceived and/or reduced to practice by or on behalf of IMB or its Affiliates, alone or jointly with others, in exercising it rights under the Licence. Any such disclosure shall be sent by registered post and e-mail to the Head of Corporate Programme at AN in writing to the address set out at the beginning of this Agreement.
	  
	  

	5.2	Any Licensed Product IP, howsoever made and whomsoever made by, shall be solely owned by IMB. IMB shall grant to AN a perpetual, world-wide, non-exclusive, royalty-free, fully paid up licence to use the Licensed Product IP for any purpose.
	  
	  

	5.3	IMB shall not engage in any activities or use any third party facilities or third party intellectual property in exercising its rights under the Licence that could result in claims of ownership over the Materials or any intellectual property in the Materials by such third party.
	  
	  

	6.	IMB STEERING GROUP
	  
	  

	6.1	AN shall appoint a representative to attend the bi-annual meetings of IMB's Steering Group, such person to be notified to IMB from time to time.
	  
	  

	6.2	The Parties will agree separately the terms of reference for the Steering Group.
	  
	  

	7.	CONFIDENTIALITY
	  
	  

	7.1	Each Party undertakes that it shall keep confidential all Confidential Information of the other Party, and shall not use the same for any purpose other than exercising its rights and meeting its obligations under this Agreement. A Party shall not disclose or permit the disclosure of the other Party's Confidential Information in any format or medium to any third party (save as provided in clauses 7.2 and 7.3) without the prior written consent of the other Party. Each Party acknowledges that at all times the other Party is and shall remain the sole owner of the Confidential Information.
	  
	  

	7.2	The provisions of clause 7.1 shall not apply to:

  
  	  
	(a)	any Confidential Information which is in, or enters into the public domain otherwise than as a result of any breach of this Agreement;
	  
	  
	  

	  
	(b)	any Confidential Information already in the possession of the receiving Party at the time of disclosure by the other Party as evidence by the receiving Party's written record; and/or
	  
	  
	  

	  
	(c)	any Confidential Information obtained from a third party who is free to disclose it.

  
  	7.3	The receiving Party may disclose Confidential Information only to the extent required by law, by any governmental or other regulatory authority or by a court or other authority of competent jurisdiction provided that, to the extent it is legally permitted to do so, it gives the disclosing Party as much notice of such disclosure as possible and, where notice of disclosure is not prohibited and is given in accordance with this clause 7.3, it takes into account the reasonable requests of the disclosing Party in relation to the content of such disclosure.
	  
	  

	7.4	Each Party shall only disclose Confidential Information of the other Party to those of its employees and its Affiliates who are directly involved in the performance of obligations pursuant to this Agreement, and shall ensure that such employees and Affiliates are aware of and comply with these obligations as to confidentiality. Any approved disclosure of Confidential Information to third parties shall be subject to confidentiality undertakings no less onerous than those set out in this Agreement.

  
  	 
	 
	 
 
	 

  
  	7.5	The obligations of the Parties as to disclosure and confidentiality shall come into effect from the Effective Date and shall continue in force so long as such information remains confidential in nature.
	  
	  

	8.	DATA PROTECTION
	  
	  

	8.1	The Materials are from fully validated donors consistent with what is required for cord blood donation and for each donor, consent has been obtained in accordance with the Cord Blood Consent Form attached as Schedule 1.
	  
	  

	8.2	IMB shall ensure that in respect of the Materials and Licensed Product, it complies with and that all its Affiliates, sub-licensees and service providers comply with all stipulations set out in the consent form and any other stipulations which are notified by AN arising from donor consent.
	  
	  

	8.3	In accordance with clause 3.4, no donor identifiable information will be made available by AN to IMB at any time.
	  
	  

	8.4	Each Party shall comply with its obligations under data privacy laws, including the Data Protection Act 1998 (the "DPA") and the EU General Data Privacy Regulation when effective.
	  
	  

	9.	WARRANTY AND INDEMNITIES
	  
	  

	9.1	IMB acknowledges that the Materials and Licensed Products are supplied on an as-is-basis. AN gives no warranty, express or implied

  
  	  
	(a)	as to their fitness for purpose for use for the Field;
	  
	  
	  

	  
	(b)	notwithstanding clause 3.1, that the Materials do not contain pathogens or otherwise; or
	  
	  
	  

	  
	(c)	that the use of the Materials or Licensed Products in the Field or otherwise does not or will not infringe the intellectual property right of any third party.

  
  	9.2	AN shall have no liability to IMB, whether in contract, tort or otherwise, in relation to the transfer and supply of the Materials to IMB, the exercise by IMB or by any other person of any rights under the Licence in respect of the Materials or Licensed Product, or the consequences of the exercise of such rights, or in relation to the decisions of the Steering Group to the maximum extent permitted under applicable law.
	  
	  

	9.3	IMB shall indemnify and hold harmless AN from and against all claims and losses arising from such transfer, supply or exercise of the Licence, or resulting from the decisions of the Steering Group, including without limitation claims and losses arising from:

  
  	  
	(a)	injury to IMB's employees and third parties;
	  
	  
	  

	  
	(b)	infringement of third party intellectual property rights; and
	  
	  
	  

	  
	(c)	use of the Materials and Licensed Product within or outside the scope of this Agreement, except that IMB shall not be liable for indirect or consequential loss, damages, claims or demands arising out of this Agreement.

  
  	 
	 
	 
 
	 

  
  	9.4	IMB, its affiliates and any third party to which IMB sub-licences its rights under clause 2.1(d), shall effect and maintain an insurance policy with reputable insurers in respect of the indemnities contained herein and shall, if requested, provide AN with a certificate from its insurers confirming that the insurance is in force and that the premiums have been paid.
	  
	  

	10.	NOTICES
	  
	  

	10.1	Any notice give to a party under or in connection with this Agreement shall be in writing and shall be delivered by hand or by pre-paid first-class post or other next working day delivery service at its registered office (if a company) or its principal place of business (in any other case).
	  
	  

	10.2	Any notice given under this Agreement shall be marked for the attention of the individual of the receiving Party specified below, or to such other individual as may be notified by that Party from time to time:

  
  	  
	(a)	In the case of AN: The Director of Finance and Resources copied to the In-House Legal; and
	  
	  
	  

	  
	(b)	in the case of IMB, David Moss, Chief Financial Officer of IMB.

  
  	10.3	Any notice shall be deemed to have been received:

  
  	  
	(a)	if delivered by hand, on signature of a delivery receipt or at the time the notice is left at the proper address;
	  
	  
	  

	  
	(b)	if sent by pre-paid first-class post or other next working day delivery service, at 9.00 am on the second business day after posting.

  
  	10.4	This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.
	  
	  

	10.5	A notice given under this Agreement is not valid if sent by email.
	  
	  

	11.	TERM AND TERMINATION
	  
	  

	11.1	This Agreement shall commence on the Effective Date and terminate after ten (10) years unless earlier terminated in accordance with this clause 11 ("Term"). The Parties may agree to extend the Term by both Parties' written consent.
	  
	  

	11.2	Either IMB or AN may terminate this Agreement on thirty (30) days prior written notice to the other Party if that other Party material breaches any term of this Agreement and such breach (to the extent it is remediable) is not remedied with thirty (30) days of a written request to the other Party to do so.
	  
	  

	11.3	AN may terminate the Licence on written notice to IMB in respect of specified Materials and related Licensed Product if a donor withdraws consent to the continued use of such Material and related Licensed Product. In such circumstances, IMB shall cease to exploit its rights under the Licence in respect of the specified Material within eight weeks of receipt of the notice from AN.

  
  	 
	 
	 
 
	 

  
  	11.4	Upon termination or expiry of this Agreement, all of IMB's rights to use the Materials and Licensed Product shall end. IMB shall immediately:

  
  	  
	(a)	return to AN any AN Confidential Information; and
	  
	  
	  

	  
	(b)	return to AN, or certify the destruction and disposal (such certification to be signed by a director of IMB), the Materials and Licensed Product in IMB's possession or control.

  
  	11.5	The provisions of clauses 1, 4.2, 4.4, 4.5, 4.6, 7, 8.2, 9.2, 9.3, 10, 11.4, 12.5 and 13 shall survive the expiration or termination of this Agreement for any reason.
	  
	  

	12.	MISCELLANEOUS
	  
	  

	12.1	This Agreement embodies and sets forth the entire agreement and understanding of the Parties and supersedes all prior oral or written agreements understandings or arrangements relating to the Materials.
	  
	  

	12.2	This Agreement shall not be amended, modified, varied or supplemented except in writing signed by duly authorised representatives of the Parties.
	  
	  

	12.3	The Parties agree that this Agreement and all rights and obligations hereunder will not be assigned, licensed, sub-licensed, mortgaged or otherwise transferred unless agreed to in writing by AN.
	  
	  

	12.4	Nothing in this Agreement is intended to create a partnership or joint venture or legal relationship of any kind that would impose liability upon one Party for the act or failure to act of another Party, or to authorise a Party to act as agent for another.
	  
	  

	12.5	If any part of this Agreement is found by a court to be invalid or unenforceable, it will be deemed modified to the extent necessary to allow enforcement, and all other portions of this Agreement not so modified will remain in full force and effect.
	  
	  

	12.6	This Agreement may be executed in one or more counterparts, each of which will be deemed an original document. All such separate counterparts will constitute only one and the same Agreement.
	  
	  

	13.	GOVERNING LAW AND JURISDICTION
	  
	  

	  
	 This Agreement and any matter arising from or in connection with it shall be governed by and construed in accordance with English law. Each Party irrevocably agrees to submit to the exclusive jurisdiction of the English courts over any claim or matter arising from or in connection with this Agreement.

  
 [Signature pages to follow]
  
  	 
	 
	 
 
	 

  
 AS WITNESS the Parties or their duly authorised representatives have signed this Agreement the day and year first before written:
  
  	 ANTHONY NOLAN:
	  
	 INMUNE BIO INTERNATIONAL LTD:
	
	  
	  
	  
	  
	  
	  

	 By:
	  
 /s/ Prof. Alejandro Madrigal
	  
	 By:
	  
  
 /s/ RJ Tesi MD
	  

	 Name: Prof. Alejandro Madrigal
	  
	 Name: RJ Tesi MD
	  

	 Title: Scientific Director
	  
	 Title: Managing Director
	  

  
  	 
	 
	 
 
	 

  
 SCHEDULE 1: ANTHONY NOLAN CORD BLOOD CONSENT FORM
  
 
  
  
  	 
	 
	 
 
	 

  
 SCHEDULE 2: AN ETHICALLY APPROVED CRITERIA
  
 Anthony Nolan has an obligation under the consent agreement with the donating mothers to ensure the materials are only provided to projects that we deem to be ethical. Under this agreement materials may be sub-licensed to a third party or third party supplier if the conditions of use comply with the following approval criteria.
  
 Cord Blood/Tissue, derived cells, progeny or derivative may be supplied and used in research projects if conducted in accordance with the following conditions:
  
  	  
	·	The research project should be within the fields of medical or biomedical research.
	  
	  
	  

	  
	·	IMB should be satisfied that the research has been subject to scientific critique, is appropriately designed in relation to its objectives and (with the exception of student research below doctoral level) is likely to add something useful to existing knowledge.
	  
	  
	  

	  
	·	IMB should be satisfied that the use of the Materials complies with the terms of the donor consent (schedule 1).
	  
	  
	  

	  
	·	Materials will not be released to any project requiring further data or tissue from donors
	  
	  
	  

	  
	·	Materials will not be used in any other research procedures.
	  
	  
	  

	  
	·	A supply agreement must be in place with the researcher to ensure storage, use and disposal of the Materials in accordance with the HTA Codes of Practice

 
 IMB should be satisfied that the use of the materials complies with local regulation
  
 Where the use of the materials is for a clinical indication IMB should be satisfied that the treatment is approved and where applicable licensed for the indication.
  
 IMB should be satisfied that the materials are provided to reputable researchers and/or clinicians. 
  
 Materials will not be provided to research or clinical indications from the following
  
  	  
	·	Cosmetic enhancement or testing

  
 Materials will only be provided within US, Canada and Europe unless explicitly agreed by Anthony Nolaninmune_ex108.htm

EXHIBIT 10.8
  
 Employment Agreement
  
 This Employment Agreement (the "Agreement") is made and entered into as of January 1, 2018 (the “Effective Date”), by and between Raymond Tesi MD, an individual (the "Executive"), and INmune Bio Inc., a Nevada corporation (the "Company").
  
 WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and
  
 WHEREAS, the Executive desires to be employed by the Company on such terms and conditions.
  
 NOW, THEREFORE, in consideration of the mutual covenants, promises, and obligations set forth herein, the parties agree as follows:
  
 1. Term. The Executive's employment hereunder shall be effective as of Effective Date and shall continue until the third anniversary of the Effective Date, unless terminated earlier pursuant to Section 5 of this Agreement; provided that, on third anniversary of this Agreement and each annual anniversary thereafter (such date and each annual anniversary thereof, a “Renewal Date”), the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of the Agreement at least 90 days’ prior to the applicable Renewal Date. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as the “Employment Term.”
  
 2. Position.
  
 During the Employment Term, the Executive shall serve as the President and Chief Executive Officer of the Company, reporting to the Board of Directors of the Company (the “Board”). In such position, the Executive shall have such duties, authority, and responsibility as shall be determined from time to time by the Board, which duties, authority, and responsibility are consistent with the Executive’s position.
  
 3. Place of Performance. The principal place of Executive's employment shall be the Company's principal executive office currently located in La Jolla, California or such other location as the Executive and the Board may agree on; provided that, the Executive may be required to travel on Company business during the Employment Term.
   	 
	 1

	 
 
	 

  
 4. Compensation.
  
 4.1 Base Salary. From the date Effective Date the Executive’s salary shall be $120,000 per annum provided that if the Company raises gross proceeds of at least $5,000,000 from an offering then the Executive’s salary shall on such date increase to $250,000 per annum and if the Company raises gross proceeds of at least twelve million dollars from an offering, then the Executive’s salary on such date shall increase to $350,000, per annum. The salary provided for in this Section shall be paid in periodic installments in accordance with the Company's customary payroll practices and applicable wage payment laws, but no less frequently than monthly. The Executive's base salary shall be reviewed at least annually by the Board and the Board may, but shall not be required to, increase the base salary during the Employment Term. However, the Executive's base salary may not be decreased during the Employment Term. The Executive's annual base salary, as in effect from time to time, is hereinafter referred to as "Base Salary".
  
 4.2 Annual Bonus. For each calendar year of the Employment Term, the Executive shall be eligible to receive an annual bonus (the "Annual Bonus"). However, the decision to provide any Annual Bonus and the amount and terms of any Annual Bonus shall be in the sole and absolute discretion of the Board.
  
 4.3 Equity Awards.
  
 (a) In consideration of the Executive entering into this Agreement and as an inducement to join the Company, on the Effective Date, the Company will as of the Effective Date grant the Executive options to purchase 400,000 shares of the Company’s common Stock at a strike price of $7.80, pursuant to the INmune Bio, Inc. 2017 Stock Incentive Plan (the “Stock Incentive Plan”). One third of option grant, 133,333 shares, will vest on signing of this agreement. The remainder vest on a monthly basis, 11,111 shares per month, over a period of 24 months. All other terms and conditions of such awards shall be governed by the terms and conditions of the 2017 Stock Incentive Plan and the applicable award agreement.
  
 (b) In addition to the grant set forth in Section 4.3(a) during the Employment Term, the Executive shall be eligible receive additional grants pursuant to the Stock Incentive Plan or successor plan, as determined by the Board or the Compensation Committee, in its discretion.
  
 4.4 Fringe Benefits and Perquisites. During the Employment Term, the Executive shall be entitled to fringe benefits and perquisites consistent in accordance with the practices of the Company, and to the extent the Company provides similar benefits or perquisites (or both) to similarly situated executives of the Company.
  
 4.5 Employee Benefits. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans, practices, and programs maintained by the Company, as in effect from time to time (collectively, "Employee Benefit Plans"), on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.
  
  	 
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 4.6 Vacation; Paid Time-Off. During the Employment Term, the Executive will be entitled to paid vacation on a basis that is at least as favorable as that provided to other similarly situated executives of the Company, but no less than twenty (20) days per year. The Executive shall receive other paid time-off in accordance with the Company's policies for executive officers as such policies may exist from time to time. During the Term, the Executive can accrue up to 100 days of vacation days, of which only 5 days can be used in any calendar year. Any days that are accrued will be compensated as a lump sum at the Executive’s then current salary upon the termination of this Agreement including pursuant to the end of the Term. 
  
 4.7 Business Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures.
  
 4.8 Indemnification. In the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a "Proceeding"), other than any Proceeding initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company, or any of its affiliates with respect to this Agreement, or the Executive's employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer, member, employee, or agent of another corporation or a partnership, joint venture, trust, or other enterprise, the Executive shall be indemnified and held harmless by the Company to the fullest extent applicable to any other officer or director of the Company from and against any liabilities, costs, claims, and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys' fees).
  
 5. Termination of Employment. The Employment Term, and the Executive's employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least 30 days advance written notice of any termination of the Executive's employment. Upon termination of the Executive's employment during the Employment Term, the Executive shall be entitled to the compensation and benefits described in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.
  
 5.1 Expiration of the Term, for Cause or Without Good Reason.
  
 (a) The Executive's employment hereunder may be terminated upon either party's failure to renew the Agreement in accordance with Section 1, by the Company for Cause or by the Executive without Good Reason. If the Executive's employment is terminated upon either party's failure to renew the Agreement, by the Company for Cause or by the Executive without Good Reason, the Executive shall be entitled to receive:
  
 (i) any accrued but unpaid Base Salary and accrued but unused vacation, which shall be paid on the Termination Date (as defined below);
  
 (ii) the payment of any unpaid and accrued (back) salary (not covered by (ii) above) from the period of the formation of the Company though and including the date of termination.
  
  	 
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 (iii) reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance with the Company's expense reimbursement policy; and
  
 (iv) such employee benefits (including vested equity compensation), if any, to which the Executive may be entitled under the Company's employee benefit plans as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments in the nature of severance or termination payments except as specifically provided herein.
  
 Items 5.1(a)(i) through 5.1(a)(iv) are referred to herein collectively as the "Accrued Amounts"; 
  
 (v) in the case of termination by the Company for cause, the Executive without good reason, and in the case of the party’s failure to renew the Agreement, unvested options shall terminate;
  
 (vi) and in the case of termination by the Company for Cause or by the Executive without Good Reason (but not in the case of the either party’s failure to renew the Agreement), reimbursement for the Executive’s health insurance expenses paid by the Executive for himself and his dependents. Such reimbursement shall be paid to the Executive on the first day of the month immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the first anniversary of the Termination Date and (ii) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer or other source at no or nominal cost to the Executive. Notwithstanding the foregoing, if the Company's making payments under this Section would violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the "ACA"), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder), the parties agree to reform this Section in a manner as is necessary to comply with the ACA.
  
 (b) For purposes of this Agreement, "Cause" shall mean:
  
 (i) the Executive's willful failure to perform his duties (other than any such failure resulting from incapacity due to physical or mental illness), after the Executive has received ten days prior notice of such conduct;
  
 (ii) the Executive's willful failure to comply with any valid and legal directive of the Board after the Executive has received ten days prior notice of his failure to comply with such directive;
  
 (iii) the Executive's willful engagement in dishonesty, illegal conduct, or misconduct, which is, in each case, materially injurious to the Company or its affiliates;
  
 (iv) the Executive's embezzlement, misappropriation, or fraud, whether or not related to the Executive's employment with the Company;
  
  	 
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 (v) the Executive's conviction of, or plea of, guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;
  
 (vi) the Executive's violation of a material policy of the Company;
  
 (vii) the Executive's willful unauthorized disclosure of Confidential Information (as defined below);
  
 (viii) the Executive's material breach of any material obligation under this Agreement or any other written agreement between the Executive and the Company; or
  
 (ix) any material failure by the Executive to comply with the Company's written policies or rules, as they may be in effect from time to time during the Employment Term, if such failure causes material/reputational or financial harm to the Company.
  
 For purposes of this provision, no act or failure to act on the part of the Executive shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.
  
 Termination of the Executive's employment shall not be deemed to be for Cause unless and until the Company delivers to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board, finding that the Executive has engaged in the conduct described in any of (i)-(ix) above.
  
 (c) For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following, in each case during the Employment Term without the Executive's written consent:
  
 (i) a material reduction in the Executive's Base Salary;
  
 (ii) a relocation of the Executive's principal place of employment by more than 50 miles;
  
 (iii) any material breach by the Company of any material provision of this Agreement or any material provision of any other agreement between the Executive and the Company;
  
 (iv) the Company's failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where such assumption occurs by operation of law;
  
  	 
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 (v) a material, adverse change in the Executive's title, authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law) taking into account the Company's size, status as a public company, and capitalization as of the date of this Agreement; or
  
 (vi) a material adverse change in the reporting structure applicable to the Executive.
  
 5.2 Without Cause or for Good Reason. The Employment Term and the Executive's employment hereunder may be terminated by the Executive for Good Reason or by the Company without Cause. In the event of such termination, the Executive shall be entitled to receive the Accrued Amounts, and subject to his execution of a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the "Release") and such Release becoming effective within 30 days following the Termination Date (such 30-day period, the "Release Execution Period"), the Executive shall be entitled to receive the following:
  
 (a) a lump sum payment equal to one times the sum of 36 months of the Executive's Base Salary immediately in effect prior to the Termination Date occurs, which shall be paid within 30 days following the Termination Date;
  
 (b) Reimbursement for the Executive’s health insurance expenses paid by the Executive for himself and his dependents. Such reimbursement shall be paid to the Executive on the first day of the month immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the 2nd anniversary of the Termination Date and (ii) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer or other source at no or nominal cost to the Executive. Notwithstanding the foregoing, if the Company's making payments under this Section 5.2(b) would violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the "ACA"), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder), the parties agree to reform this Section in a manner as is necessary to comply with the ACA; 
  
 (c) Any outstanding unvested equity awards shall become vested; and 
  
 (d) a lump sum payment equal to one times the annual compensation times the period of time the Executive worked for the Company without compensation. This period began on September 1, 2015 and runs until the first compensation received under an employment agreement with the company after completion of the public offering. For example, if the Executive’s compensation is $250,000 per annum and the first compensation occurs on July1, 2018, the Executive will receive a lump sum payment of sum of $708,000 USD, which shall be paid within 30 days following the Termination Date. 
  
  	 
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 5.3 Death or Disability.
  
 (a) The Executive's employment hereunder shall terminate automatically upon the Executive's death during the Employment Term, and the Company may terminate the Executive's employment on account of the Executive's Disability (as defined below).
  
 (b) If the Executive's employment is terminated during the Employment Term on account of the Executive's death or Disability (as defined below), the Executive (or the Executive's estate and/or beneficiaries, as the case may be) shall be entitled to receive the (i) Accrued Amounts and in the case of Disability (ii) reimbursement for the Executive’s health insurance expenses paid by the Executive for himself and his dependents. Such reimbursement shall be paid to the Executive on the first day of the month immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the first anniversary of the Termination Date and (ii) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer or other source at no or nominal cost to the Executive. Notwithstanding the foregoing, if the Company's making payments under this Section 5.3(b) would violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the "ACA"), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder), the parties agree to reform this Section in a manner as is necessary to comply with the ACA. 
  
 (c) In additional to any other payments required by this Section, if death or disability occurs within 5 years of date of receiving first compensation under this employment contract after a successful public offering, the Executive or his estate will receive a lump sum payment equal to one times the annual compensation times the period of time the Executive Worked for the Company without compensation. This period began on September 1, 2015 and runs until the first compensation received under an employment agreement with the company after completion of the public offering. For example, if the Executive’s compensation is $250,000 per annum and the first compensation occurs on July 1, 2018, the Executive will receive a lump sum payment of sum of $708,000 USD, which shall be paid within 30 days following the Termination Date. If the Executive’s death or Disability occurs during the Term, all unvested shares will vest immediately. 
  
 Notwithstanding any other provision contained herein, all payments made in connection with the Executive's Disability (as defined below) shall be provided in a manner which is consistent with federal and state law.
  
 (d) For purposes of this Agreement, "Disability" shall mean the Executive's inability, due to physical or mental incapacity, to perform the essential functions of his job, with or without reasonable accommodation, for one hundred eighty (180) days out of any three hundred sixty-five (365) day period. Any question as to the existence of the Executive's Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.
  
  	 
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 5.4 Change in Control Termination.
  
 (a) Notwithstanding any other provision contained herein, if the Executive's employment hereunder is terminated by the Executive for Good Reason or by the Company without Cause (other than on account of the Executive's death or Disability), in each case within 90 days before a Change in Control or twelve (12) months following a Change in Control, the Executive shall be entitled to receive the Accrued Amounts and subject to his execution of a Release which becomes effective within 30 days following the Termination Date, the Executive shall be entitled to receive a lump sum payment equal to two times the sum of the Executive's Base Salary immediately before the Termination Date occurs (or if greater, the year immediately preceding the year in which the Change in Control occurs), which shall be paid within 30 days following the Termination Date. In addition to any other payments required by this Section, if the change of control occurs in within 5 years from the first compensation under a valid employment contract, a lump sum payment equal to one times the annual compensation times the period of time the Executive worked for the Company without compensation. This period began on September 1, 2015 and runs until the first compensation received under an employment agreement with the company after completion of the public offering. For example, if the Executive’s compensation is $250,000 per annum and the first compensation occurs on July 1, 2018, the Executive will receive a lump sum payment of sum of $708,000 USD, which shall be paid within 30 days following the Termination Date. 
  
 (b) Reimbursement for the Executive’s health insurance expenses paid by the Executive for himself and his dependents. Such reimbursement shall be paid to the Executive on the first day of the month immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the 2nd anniversary of the Termination Date and (ii) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer or other source at no or nominal cost to the Executive. Notwithstanding the foregoing, if the Company's making payments under this Section 5.2(b) would violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the "ACA"), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder), the parties agree to reform this Section in a manner as is necessary to comply with the ACA.
  
 (c) For purposes of this Agreement, "Change in Control" shall mean the occurrence of any of the following after the Effective Date:
  
 (i) one person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation; provided that, a Change in Control shall not occur if any person (or more than one person acting as a group) owns more than 50/% of the total fair market value or total voting power of the Company's stock and acquires additional stock;
  
  	 
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 (ii) one person (or more than one person acting as a group) acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition) ownership of the Company's stock possessing 30% or more of the total voting power of the stock of such corporation;
  
 (iii) a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or
  
 (iv) the sale of all or substantially all of the Company's assets.
  
 5.5 Notice of Termination. Any termination of the Executive's employment hereunder by the Company or by the Executive during the Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive's death) shall be communicated by written notice of termination ("Notice of Termination") to the other party hereto in accordance with Section 18. The Notice of Termination shall specify:
  
 (a) The termination provision of this Agreement relied upon;
  
 (b) To the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated; and
  
 (c) The applicable Termination Date.
  
 5.6 Termination Date. The Executive's "Termination Date" shall be:
  
 (a) If the Executive's employment hereunder terminates on account of the Executive's death, the date of the Executive's death;
  
 (b) If the Executive's employment hereunder is terminated on account of the Executive's Disability, the date that it is determined that the Executive has a Disability;
  
 (c) If the Company terminates the Executive's employment hereunder for Cause, the date the Notice of Termination is delivered to the Executive;
  
 (d) If the Company terminates the Executive's employment hereunder without Cause, the date specified in the Notice of Termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered; provided that, the Company shall have the option to provide the Executive with a lump sum payment equal to 30 days' Base Salary in lieu of such notice, which shall be paid in a lump sum on the Executive's Termination Date and for all purposes of this Agreement, the Executive's Termination Date shall be the date on which such Notice of Termination is delivered;
  
  	 
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 (e) If the Executive terminates his employment hereunder with or without Good Reason, the date specified in the Executive's Notice of Termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered; provided that, the Company may waive all or any part of the 30 day notice period for no consideration by giving written notice to the Executive and for all purposes of this Agreement, the Executive's Termination Date shall be the date determined by the Company; and
  
 (f) If the Executive's employment hereunder terminates because either party provides notice of non-renewal pursuant to Section1, the Renewal Date immediately following the date on which the applicable party delivers notice of non-renewal.
  
 Notwithstanding anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a "separation from service" within the meaning of Section 409A of the Internal Revenue Code (“Section 409A”).
  
 5.7 Mitigation. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and any amounts payable pursuant to this Section 5 shall not be reduced by compensation the Executive earns on account of employment with another employer.
  
 5.8 Resignation of All Other Positions. Upon termination of the Executive's employment hereunder for any reason, the Executive, effective on the Termination Date shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Company or any of its affiliates.
  
 6. Cooperation. The parties agree that certain matters in which the Executive will be involved during the Employment Term may necessitate the Executive's cooperation in the future. Accordingly, following the termination of the Executive's employment for any reason, to the extent reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the Executive's service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive's other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive's Base Salary on the Termination Date.
  
 7. Confidential Information. The Executive understands and acknowledges that during the Employment Term, he will have access to and learn about Confidential Information, as defined below.
  
 7.1 Confidential Information Defined.
  
 (a) Definition.
  
  	 
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 For purposes of this Agreement, "Confidential Information" includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, manufacturing information, factory lists, distributor lists, and buyer lists of the Company or its businesses or any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.
  
 The Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.
  
 The Executive understands and agrees that Confidential Information includes information developed by him in the course of his employment by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive or person(s) acting on the Executive's behalf.
  
 (b) Company Creation and Use of Confidential Information.
  
 The Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, and training its employees. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace.
  
  	 
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 (c) Disclosure and Use Restrictions.
  
 The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the performance of the Executive's authorized employment duties to the Company or with the prior consent of the Board acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the Company, except as required in the performance of the Executive's authorized employment duties to the Company or with the prior consent of the Board acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent. Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Executive shall promptly provide written notice of any such order to the Board.
  
 (d) Notice of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016 ("DTSA"). Notwithstanding any other provision of this Agreement:
  
 (i) The Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that:
  
 (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or
  
 (B) is made in a complaint or other document filed under seal in a lawsuit or other proceeding.
  
 (ii) If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the Company's trade secrets to the Executive's attorney and use the trade secret information in the court proceeding if the Executive:
  
 (A) files any document containing trade secrets under seal; and
  
 (B) does not disclose trade secrets, except pursuant to court order.
  
  	 
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 8. Proprietary Rights.
  
 8.1 Work Product. The Executive acknowledges and agrees that during the time period during which the Executive was performing work (or should have been) performing work functions for the Company and/or beginning when (if) the Executive is working for the Company on a full time basis all right, title, and interest in and to all writings, works of authorship, technology, inventions, discoveries, processes, techniques, methods, ideas, concepts, research, proposals, materials, and all other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived, or reduced to practice by the Executive individually or jointly with others during the period of his employment by the Company and relate in any way to the business or contemplated business, products, activities, research, or development of the Company or result from any work performed by the Executive for the Company (in each case, regardless of when or where prepared or whose equipment or other resources is used in preparing the same), all rights and claims related to the foregoing, and all printed, physical and electronic copies, and other tangible embodiments thereof (collectively, "Work Product"), as well as any and all rights in and to US and foreign (a) patents, patent disclosures and inventions (whether patentable or not), (b) trademarks, service marks, trade dress, trade names, logos, corporate names, and domain names, and other similar designations of source or origin, together with the goodwill symbolized by any of the foregoing, (c) copyrights and copyrightable works (including computer programs), and rights in data and databases, (d) trade secrets, know-how, and other confidential information, and (e) all other intellectual property rights, in each case whether registered or unregistered and including all registrations and applications for, and renewals and extensions of, such rights, all improvements thereto and all similar or equivalent rights or forms of protection in any part of the world (collectively, "Intellectual Property Rights"), shall be the sole and exclusive property of the Company.
  
 For purposes of this Agreement, Work Product includes, but is not limited to, Company information, including plans, publications, research, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, work in process, databases, manuals, results, developments, reports, graphics, market studies, formulae, notes, communications, algorithms, product plans, product designs, models, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, manufacturing information, marketing information, advertising information, and sales information.
  
 8.2 Work Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is "work made for hire" as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing does not apply, the Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive's entire right, title, and interest in and to all Work Product and Intellectual Property Rights therein that were created by the Executive during the time that the Executive was working for the Company on a full time basis unless such Work Product and Intellectual Property Rights were created by the Executive while he was performing work (or should have been) performing work functions for the Company, including the right to sue, counterclaim, and recover for all past, present, and future infringement, misappropriation, or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company's rights, title, or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would have had in the absence of this Agreement.
  
  	 
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 8.3 Further Assurances; Power of Attorney. During and after his employment, the Executive agrees to reasonably cooperate with the Company to (a) apply for, obtain, perfect, and transfer to the Company the Work Product as well as any and all Intellectual Property Rights in the Work Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation, giving testimony and executing and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments, and other documents and instruments as shall be requested by the Company. The Executive hereby irrevocably grants the Company power of attorney to execute and deliver any such documents on the Executive's behalf in his name and to do all other lawfully permitted acts to transfer the Work Product to the Company and further the transfer, prosecution, issuance, and maintenance of all Intellectual Property Rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate with the Company's request (without limiting the rights the Company shall have in such circumstances by operation of law). The power of attorney is coupled with an interest and shall not be affected by the Executive's subsequent incapacity.
  
 8.4 No License. The Executive understands that this Agreement does not, and shall not be construed to, grant the Executive any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software, or other tools made available to him by the Company.
  
 9. Non-Competition and Non Solicitation. 
  
 (a) The Executive agrees and acknowledges that the non-competition restrictions set forth herein are reasonable and necessary and do not impose undue hardship or burdens on the Executive. The Executive also acknowledges that the Company's business may be conducted worldwide (the "Territory"), and that the Territory, scope of prohibited competition, and time duration set forth in the non --competition restrictions set forth below are reasonable and necessary to maintain the value of the Confidential Information of, and to protect the goodwill and other legitimate business interests of, the Company, its affiliates and/or its clients or customers. The provisions of this Section shall survive the termination of the Executive's employment hereunder for the time periods specified below.
  
 (b) The Executive hereby agrees and covenants that he shall not without the prior written consent of the Company, directly or indirectly, in any capacity whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder, officer, director or any other individual or representative capacity (other than (i) as a holder of less than two (2%) percent of the outstanding securities of a company whose shares are traded on any national securities exchange or (ii) as a limited partner or passive minority interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may hold an equity or debt position in portfolio companies that are competitive with the Company; provided however, that the Executive shall be precluded from serving as an operating partner, general partner, manager or governing board designee with respect to such portfolio companies), or whether on the Executive's own behalf or on behalf of any other person or entity or otherwise howsoever, during the Employment Term and thereafter to the extent described below, within the Territory:
  
  	 
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 i.) Engage, own, manage, operate, control, be employed by, consult for, participate in, or be connected in any manner with the ownership, management, operation or control of any business in competition with the Business of the Company, as defined in the next sentence. For purposes hereof, the term "Business" shall mean any business using oncology therapy using drugs that inhibit soluble TNF or therapies that prime NK cells using a tumor cell line;
  
 ii.) Recruit, solicit or hire, or attempt to recruit, solicit or hire, any employee, or independent contractor of the Company to leave the employment (or independent contractor relationship) thereof, whether or not any such employee or independent contractor is party to an employment agreement, for the purpose of competing with the Business of the Company;
  
 iii.) Attempt in any manner to solicit or accept from any customer of the Company, with whom Executive had significant contact during Executive's employment by the Company (whether under this Agreement or otherwise), business of the kind or competitive with the Business done by the Company with such customer or to persuade or attempt to persuade any such customer to cease to do business or to reduce the amount of business which such customer has customarily done or might do with the Company, or if any such customer elects to move its business to a person other than the Company, provide any services of the kind or competitive with the Business of the Company for such customer, or have any ·discussions regarding any such service with such customer, on behalf of such other person for the purpose of competing with the Business of the Company; or
  
 iv.) Interfere with any relationship, contractual or otherwise, between the Company and any other party, including, without limitation, any supplier, distributor, co-venturer or joint venturer of the Company, for the purpose of soliciting such other party to discontinue or reduce its business with the Company for the purpose of competing with the Business of the Company.
  
 With respect to the activities described in subparagraphs (i), (ii), (iii) and (iv) above, the restrictions of this Section shall continue during the Employment Term hereof and, upon termination of the Executive's employment for Good Reason, termination because of a Change of Control, for a period of one (1) year thereafter.
  
 10. Security.
  
 10.1 Security and Access. The Executive agrees and covenants to comply with all Company security policies and procedures as in force from time to time.
  
 10.2 Exit Obligations. Upon (a) voluntary or involuntary termination of the Executive's employment or (b) the Company's request at any time during the Executive's employment, the Executive shall (i) provide or return to the Company any and all Company property, and all Company documents and materials belonging to the Company and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information or Work Product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created by the Executive in connection with his employment by the Company; and (ii) delete or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive's possession or control, including those stored on any non-Company devices, networks, storage locations, and media in the Executive's possession or control.
  
  	 
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 11. Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of New York without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the State of New York, County of New York. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.
  
 12. Entire Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.
  
 13. Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and the Company. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power, or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power, or privilege.
  
 14. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.
  
 The parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement, or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.
  
 The parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein.
  
  	 
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 15. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.
  
 16. Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
  
 17. Section 409A.
  
 17.1 General Compliance. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.
  
 17.2 Specified Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and the Executive is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date or, if earlier, on the Executive's death (the "Specified Employee Payment Date"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.
  
 17.3 Reimbursements. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:
  
 (a) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;
  
 (b) any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and
  
  	 
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 (c) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.
  
 17.4 Tax Gross-ups. Any tax gross-up payments provided under this Agreement shall be paid to the Executive on or before December 31 of the calendar year immediately following the calendar year in which the Executive remits the related taxes.
  
 18. Successors and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.
  
 19. Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):
  
 If to the Company:
 INmune Bio Inc. 
 1224 Prospect Street, Suite 150
 La Jolla, California, 92037 
 Attention: David Moss
  
 If to the Executive:
 RJ Tesi MD
 476 Massachusetts Ave, Unit 2
 Boston, MA 02118
  
 20. Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal, state, and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.
  
 21. Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.
  
 [SIGNATURE PAGE FOLLOWS]
  
  	 
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
  
  		 INMUME BIO INC. 
	
			 /s/ David Moss
	  

		 By:
	
	  
	 Name:
	 David Moss
	
	  
	 Title:
	 CFO
	

  
  		 EXECUTIVE
	  
 /s/ Raymond Tesi MD
	
		  

		 Signature:
	
	  
	 Print Name:
	 Raymond Tesi MD
	

  
  
  	 19

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